-----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, EeLSfY900iC2zMmWD3HoF+/ahhjUUc0DejJg7RAwKUatXzS7gNWK66izCcyH8q5z ToGYdO2kf/OgTVGrM8NZkw== 0000320351-98-000027.txt : 19980430 0000320351-98-000027.hdr.sgml : 19980430 ACCESSION NUMBER: 0000320351-98-000027 CONFORMED SUBMISSION TYPE: 485BPOS PUBLIC DOCUMENT COUNT: 52 FILED AS OF DATE: 19980428 EFFECTIVENESS DATE: 19980428 SROS: NONE 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: 485BPOS SEC ACT: SEC FILE NUMBER: 002-69972 FILM NUMBER: 98602249 FILING VALUES: FORM TYPE: 485BPOS SEC ACT: SEC FILE NUMBER: 811-03114 FILM NUMBER: 98602250 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 485BPOS 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-1A REGISTRATION STATEMENT (No. 2-69972) UNDER THE SECURITIES ACT OF 1933 [X] Pre-Effective Amendment No. Post-Effective Amendment No. 64 [X] and REGISTRATION STATEMENT (No. 811-3114) UNDER THE INVESTMENT COMPANY ACT OF 1940 [X] Amendment No. 64 [X] Fidelity Select Portfolios (Exact Name of Registrant as Specified in Charter) 82 Devonshire St., Boston, Massachusetts 02109 (Address Of Principal Executive Offices) (Zip Code) Registrant's Telephone Number: 617-563-7000 Eric D. Roiter, Secretary 82 Devonshire Street Boston, Massachusetts 02109 (Name and Address of Agent for Service) It is proposed that this filing will become effective ( ) immediately upon filing pursuant to paragraph (b). (X) on April 28, 1998 pursuant to paragraph (b). ( ) 60 days after filing pursuant to paragraph (a)(1). ( ) on ( ) pursuant to paragraph (a)(1) of Rule 485. ( ) 75 days after filing pursuant to paragraph (a)(2). ( ) on ( ) pursuant to paragraph (a)(2) of Rule 485. If appropriate, check the following box: ( ) this post-effective amendment designates a new effective date for a previously filed post-effective amendment. FIDELITY SELECT PORTFOLIOS CROSS REFERENCE SHEET FORM N-1A ITEM NUMBER PROSPECTUS SECTION
1 .............................. Cover Page 2 a .............................. Expenses b, c .............................. Contents; The Funds at a Glance; Who May Want to Invest 3 a .............................. Financial Highlights b .............................. * c,d .............................. Performance; Appendix A 4 a i............................. Charter ii........................... The Funds at a Glance; Investment Principles and Risks b .............................. Investment Principles and Risks c .............................. Who May Want to Invest; Investment Principles and Risks 5 a .............................. Charter b i............................. Cover Page; The Funds at a Glance; Charter; Doing Business with Fidelity ii........................... Charter iii.......................... Expenses; Breakdown of Expenses c .............................. Charter d .............................. Charter; Breakdown of Expenses e .............................. Cover Page; Charter f .............................. Expenses g i.............................. Charter ii.............................. * 5A .............................. Performance 6 a i............................. Charter ii........................... How to Buy Shares; How to Sell Shares; Transaction Details; Exchange Restrictions iii.......................... * b ............................. Charter c .............................. Transactions Details; Exchange Restrictions d .............................. * e .............................. Doing Business with Fidelity; How to Buy Shares; How to Sell Shares; Investor Services f, g .............................. Dividends, Capital Gains, and Taxes h .............................. * 7 a .............................. Cover Page; Charter b .............................. Expenses; How to Buy Shares; Transaction Details c .............................. Sales Charge Reductions and Waivers d .............................. How to Buy Shares e .............................. * f .............................. * 8 .............................. How to Sell Shares; Investor Services; Transaction Details; Exchange Restrictions 9 .............................. *
* Not Applicable FIDELITY SELECT PORTFOLIOS CROSS REFERENCE SHEET (CONTINUED) FORM N-1A ITEM NUMBER STATEMENT OF ADDITIONAL INFORMATION SECTION
10, 11 ............................ Cover Page 12 ............................ Description of the Trust 13 a - c ............................ Investment Policies and Limitations d ............................ Portfolio Transactions 14 a - c ............................ Trustees and Officers 15 a, b ............................ * c ............................ Trustees and Officers 16 a i........................... FMR; Portfolio Transactions ii.......................... Trustees and Officers iii......................... Management Contracts b ............................ Management Contracts c, d ............................ Contracts with FMR Affiliates e ............................ * f ............................ * g ............................ * h ............................ Description of the Trust i ............................ Contracts with FMR Affiliates 17 a - d ............................ Portfolio Transactions e ............................ * 18 a ............................ Description of the Trust b ............................ * 19 a ............................ Additional Purchase, Exchange and Redemption Information b ............................ Additional Purchase, Exchange and Redemption Information; Valuation c ............................ * 20 ............................ Distributions and Taxes 21 a, b ............................ Contracts with FMR Affiliates c ............................ * 22 a, b ............................ Performance 23 ............................ Financial Statements
* Not Applicable FIDELITY SELECT PORTFOLIOS(REGISTERED TRADEMARK) Please read this prospectus before investing, and keep it on file for future reference. It contains important information, including how each fund invests and the services available to shareholders. To learn more about each fund and its investments, you can obtain a copy of each fund's most recent financial report and portfolio listing, or a copy of the Statement of Additional Information (SAI) dated April 28, 1998. The SAI has been filed with the Securities and Exchange Commission (SEC) and is available along with other related materials on the SEC's Internet Web site (http://www.sec.gov). The SAI is incorporated herein by reference (legally forms a part of the prospectus). For a free copy of either document, call Fidelity at 1-800-544-8888. INVESTMENTS IN THE MONEY MARKET FUND ARE NEITHER INSURED NOR GUARANTEED BY THE U.S. GOVERNMENT, AND THERE CAN BE NO ASSURANCE THAT THE FUND WILL MAINTAIN A STABLE $1.00 SHARE PRICE. MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED BY, ANY DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC, FEDERAL RESERVE BOARD, OR ANY OTHER AGENCY, AND ARE SUBJECT TO INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNTED INVESTED. LIKE ALL MUTUAL FUNDS, THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION, NOR HAS THE SECURITIES AND EXCHANGE COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. SEL-pro-0498 701898 Each stock fund seeks to increase the value of your investment over the long-term by investing mainly in equity securities of companies within a particular industry or group of industries. The money market fund seeks high current income while maintaining a stable $1.00 share price by investing in high-quality, short-term money market securities. Fund Trading Number Symbol AIR TRANSPORTATION PORTFOLIO 034 FSAIX AMERICAN GOLD PORTFOLIO 041 FSAGX AUTOMOTIVE PORTFOLIO 502 FSAVX BIOTECHNOLOGY PORTFOLIO 042 FBIOX BROKERAGE AND INVESTMENT MANAGEMENT PORTFOLIO 068 FSLBX BUSINESS SERVICES AND OUTSOURCING 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 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 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 MEDICA L EQUIPMENT AND SYSTEMS PORTFOLIO 354 MULTIMEDIA PORTFOLIO 503 FBMPX NATURAL GAS PORTFOLIO 513 FSNGX NATURAL RESOURCES PORTFOLIO 514 PAPER AND FOREST PRODUCTS PORTFOLIO 506 FSPFX PRECIOUS METALS AND MINERALS PORTFOLIO 061 FDPMX REGIONAL BANKS PORTFOLIO 507 FSRBX 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 FSMMKT PROSPECTUS APRIL 28, 1998(FIDELITY_LOGO_GRAPHIC) 82 DEVONSHIRE STREET, BOSTON, MA 02109 CONTENTS
KEY FACTS THE FUNDS AT A GLANCE WHO MAY WANT TO INVEST EXPENSES Each fund's sales charge (load) and its yearly operating expenses. FINANCIAL HIGHLIGHTS A summary of each fund's financial data. PERFORMANCE How each fund has done over time. THE FUNDS IN DETAIL CHARTER How each fund is organized. INVESTMENT PRINCIPLES AND RISKS Each fund's overall approach to investing. BREAKDOWN OF EXPENSES How operating costs are calculated and what they include. YOUR ACCOUNT DOING BUSINESS WITH FIDELITY TYPES OF ACCOUNTS Different ways to set up your account, including tax-advantaged retirement plans. HOW TO BUY SHARES Opening an account and making additional investments. HOW TO SELL SHARES Taking money out and closing your account. INVESTOR SERVICES Services to help you manage your account. SHAREHOLDER AND ACCOUNT POLICIES DIVIDENDS, CAPITAL GAINS, AND TAXES TRANSACTION DETAILS Share price calculations and the timing of purchases and redemptions. EXCHANGE RESTRICTIONS SALES CHARGE REDUCTIONS AND WAIVERS APPENDIX A
KEY FACTS THE FUNDS AT A GLANCE STOCK FUNDS' GOAL: Capital appreciation (increase in the value of a fund's shares). As with any mutual fund, there is no assurance that a fund will achieve its goal. MANAGEMENT: Fidelity Management & Research Company (FMR) is the management arm of Fidelity Investments, which was established in 1946 and is now America's largest mutual fund manager. Fidelity Investments Money Management, Inc. (FIMM), a subsidiary of FMR, chooses investments for the money market fund. Foreign affiliates of FMR may help choose investments for some of the stock funds. AIR TRANSPORTATION STRATEGY: Invests mainly in equity securities of companies engaged in the regional, national, and international movement of passengers, mail, and freight via aircraft. SIZE: As of February 28, 1998, the fund had over $ 181 million in assets. AMERICAN GOLD STRATEGY: Invests mainly in equity securities of companies engaged in exploration, mining, processing, or dealing in gold, or, to a lesser degree, in silver, platinum, diamonds, or other precious metals and minerals, and may also invest directly in precious metals. SIZE: As of February 28, 1998, the fund had over $ 219 million in assets. AUTOMOTIVE STRATEGY: Invests mainly in equity securities of companies engaged in the manufacture, marketing, or sale of automobiles, trucks, specialty vehicles, parts, tires, and related services. SIZE: As of February 28, 1998, the fund had over $ 32 million in assets. BIOTECHNOLOGY STRATEGY: Invests mainly in equity securities of companies engaged in the research, development, and manufacture of various biotechnological products, services, and processes. SIZE: As of February 28, 1998, the fund had over $ 579 million in assets. BROKERAGE AND INVESTMENT MANAGEMENT STRATEGY: Invests mainly in equity securities of companies engaged in stock brokerage, commodity brokerage, investment banking, tax-advantaged investment or investment sales, investment management, or related investment advisory services. SIZE: As of February 28, 1998, the fund had over $ 676 million in assets. BUSINESS SERVICES AND OUTSOURCING PORTFOLIO STRATEGY: Invests mainly in equity securities of companies that provide business-related services to companies and other organizations. SIZE: As of February 28, 1998, the fund had over $15 million in assets. CHEMICALS STRATEGY: Invests mainly in equity securities of companies engaged in the research, development, manufacture, or marketing of products or services related to the chemical process industries. SIZE: As of February 28, 1998, the fund had over $ 69 million in assets. COMPUTERS STRATEGY: Invests mainly in equity securities of companies engaged in research, design, development, manufacture, or distribution of products, processes, or services that relate to currently available or experimental hardware technology within the computer industry. SIZE: As of February 28, 1998, the fund had over $ 785 million in assets. CONSTRUCTION AND HOUSING STRATEGY: Invests mainly in equity securities of companies engaged in the design and construction of residential, commercial, industrial, and public works facilities, as well as companies engaged in the manufacture, supply, distribution, or sale of products or services to these construction industries. SIZE: As of February 28, 1998, the fund had over $ 57 million in assets. CONSUMER INDUSTRIES STRATEGY: Invests mainly in equity securities of companies engaged in the manufacture and distribution of goods to consumers. SIZE: As of February 28, 1998, the fund had over $ 72 million in assets. CYCLICAL INDUSTRIES STRATEGY: Invests mainly in equity securities of companies engaged in the research, development, manufacture, distribution, supply, or sale of materials, equipment, products or services related to cyclical industries. SIZE: As of February 28, 1998, the fund had over $ 3 million in assets. DEFENSE AND AEROSPACE STRATEGY: Invests mainly in equity securities of companies engaged in the research, manufacture, or sale of products or services related to the defense or aerospace industries. SIZE: As of February 28, 1998, the fund had over $ 101 million in assets. DEVELOPING COMMUNICATIONS STRATEGY: Invests mainly in equity securities of companies engaged in the development, manufacture, or sale of emerging communications services or equipment. SIZE: As of February 28, 1998, the fund had over $ 238 million in assets. ELECTRONICS STRATEGY: Invests mainly in equity securities of companies engaged in the design, manufacture, or sale of electronic components, equipment vendors to electronic component manufacturers, electronic component distributors, and electronic instruments and electronics systems vendors. SIZE: As of February 28, 1998, the fund had over $ 2.6 billion in assets. ENERGY STRATEGY: Invests mainly in equity securities of companies in the energy field, including the conventional areas of oil, gas, electricity, and coal, and newer sources of energy such as nuclear, geothermal, oil shale, and solar power. SIZE: As of February 28, 1998, the fund had over $ 147 million in assets. ENERGY SERVICE STRATEGY: Invests mainly in equity securities of companies in the energy service field, including those that provide services and equipment to the conventional areas of oil, gas, electricity, and coal, and newer sources of energy such as nuclear, geothermal, oil shale, and solar power. SIZE: As of February 28, 1998 ,the fund had over $ 919 million in assets. ENVIRONMENTAL SERVICES STRATEGY: Invests mainly in equity securities of companies engaged in the research, development, manufacture, or distribution of products, processes, or services related to waste management or pollution control. SIZE: As of February 28, 1998, the fund had over $ 25 million in assets. FINANCIAL SERVICES STRATEGY: Invests mainly in equity securities of companies providing financial services to consumers and industry. SIZE: As of February 28, 1998, the fund had over $ 604 million in assets. FOOD AND AGRICULTURE STRATEGY: Invests mainly in equity securities of companies engaged in the manufacture, sale, or distribution of food and beverage products, agricultural products, and products related to the development of new food technologies. SIZE: As of February 28, 1998, the fund had over $ 250 million in assets. HEALTH CARE STRATEGY: Invests mainly in equity securities of companies engaged in the design, manufacture, or sale of products or services used for, or in connection with, health care or medicine. SIZE: As of February 28, 1998, the fund had over $ 2.2 billion in assets. HOME FINANCE STRATEGY: Invests mainly in equity securities of companies engaged in investing in real estate, usually through mortgages and other consumer-related loans. SIZE: As of February 28, 1998, the fund had over $ 1.6 billion in assets. INDUSTRIAL EQUIPMENT STRATEGY: Invests mainly in equity securities of companies engaged in the manufacture, distribution, or service of products and equipment for the industrial sector, including integrated producers of capital equipment, parts suppliers, and subcontractors. SIZE: As of February 28, 1998, the fund had over $ 50 million in assets. INDUSTRIAL MATERIALS STRATEGY: Invests mainly in equity securities of companies engaged in the manufacture, mining, processing, or distribution of raw materials and intermediate goods used in the industrial sector. SIZE: As of February 28, 1998, the fund had over $ 22 million in assets. INSURANCE STRATEGY: Invests mainly in equity securities of companies engaged in underwriting, reinsuring, selling, distributing, or placing of property and casualty, life, or health insurance. SIZE: As of February 28, 1998, the fund had over $ 125 million in assets. LEISURE STRATEGY: Invests mainly in equity securities of companies engaged in the design, production, or distribution of goods or services in the leisure industries. SIZE: As of February 28, 1998, the fund had over $ 257 million in assets. MEDICAL DELIVERY STRATEGY: Invests mainly in equity securities of companies engaged in the ownership or management of hospitals, nursing homes, health maintenance organizations, and other companies specializing in the delivery of health care services. SIZE: As of February 28, 1998, the fund had over $ 155 million in assets. MEDICAL EQUIPMENT AND SYSTEMS STRATEGY: Invests mainly in equity securities of companies engaged in research, development, manufacture, distribution, supply or sale of medical equipment and devices and related technologies. MULTIMEDIA STRATEGY: Invests mainly in equity securities of companies engaged in the development, production, sale, and distribution of goods or services used in the broadcast and media industries. SIZE: As of February 28, 1998, the fund had over $ 115 million in assets. NATURAL GAS STRATEGY: Invests mainly in equity securities of companies engaged in the production, transmission, and distribution of natural gas, and involved in the exploration of potential natural gas sources, as well as those companies that provide services and equipment to natural gas producers, refineries, cogeneration facilities, converters, and distributors. SIZE: As of February 28, 1998, the fund had over $ 59 million in assets. NATURAL RESOURCES STRATEGY: Invests mainly in equity securities of companies that own or develop natural resources, or supply goods and services to such companies, and may also invest directly in precious metals. SIZE: As of February 28, 1998, the fund had over $ 7 million in assets. PAPER AND FOREST PRODUCTS STRATEGY: Invests mainly in equity securities of companies engaged in the manufacture, research, sale, or distribution of paper products, packaging products, building materials, and other products related to the paper and forest products industry. SIZE: As of February 28, 1998, the fund had over $ 31 million in assets. PRECIOUS METALS AND MINERALS STRATEGY: Invests mainly in equity securities of companies engaged in exploration, mining, processing, or dealing in gold, silver, platinum, diamonds, or other precious metals and minerals, and may also invest directly in precious metals. SIZE: As of February 28, 1998, the fund had over $ 165 million in assets. REGIONAL BANKS STRATEGY: Invests mainly in equity securities of companies engaged in accepting deposits and making commercial and principally non-mortgage consumer loans. SIZE: As of February 28, 1998, the fund had over $ 1.3 b illion in assets. RETAILING STRATEGY: Invests mainly in equity securities of companies engaged in merchandising finished goods and services primarily to individual consumers. SIZE: As of February 28, 1998, the fund had over $192 million in assets. SOFTWARE AND COMPUTER SERVICES STRATEGY: Invests mainly in equity securities of companies engaged in research, design, production, or distribution of products or processes that relate to software or information-based services. SIZE: As of February 28, 1998, the fund had over $503 million in assets. TECHNOLOGY STRATEGY: Invests mainly in equity securities of companies which FMR believes have, or will develop, products, processes, or services that will provide or will benefit significantly from technological advances and improvements. SIZE: As of February 28, 1998, the fund had over $ 691 million in assets. TELECOMMUNICATIONS STRATEGY: Invests mainly in equity securities of companies engaged in the development, manufacture, or sale of communications services or communications equipment. SIZE: As of February 28, 1998, the fund had over $ 643 million in assets. TRANSPORTATION STRATEGY: Invests mainly in equity securities of companies engaged in providing transportation services or companies engaged in the design, manufacture, distribution, or sale of transportation equipment. SIZE: As of February 28, 1998, the fund had over $ 64 million in assets. UTILITIES GROWTH STRATEGY: Invests mainly in equity securities of companies in the public utilities industry and companies deriving a majority of their revenues from their public utility operations. SIZE: As of February 28, 1998, the fund had over $ 401 million in assets. MONEY MARKET GOAL: Income while maintaining a stable $1.00 share price. As with any mutual fund, there is no assurance the fund will achieve its goal. STRATEGY: Invests in high-quality, short-term money market securities of all types. SIZE: As of February 28, 1998, the fund had over $ 584 million in assets. As with any mutual fund, there is no assurance that a fund will achieve its goal. WHO MAY WANT TO INVEST The stock funds may be appropriate for investors who want to pursue growth aggressively by concentrating their investment on domestic and foreign securities within a particular industry or group of industries. The funds are designed for those who are interested in actively monitoring the progress, and can accept the risks, of industry-focused investing. Because the funds are so narrowly focused, changes in a particular industry can have a substantial impact on a fund's share price. Most of the funds are non-diversified and may invest a greater portion of their assets in securities of individual issuers than diversified funds. As a result, changes in the market value of a single issuer could cause greater fluctuations in share value than would occur in a more diversified fund. The value of the stock funds' investments will vary from day to day, and generally reflect market and industry conditions, interest rates, and other company, political, or economic news both here and abroad. In the short-term, stock prices can fluctuate dramatically in response to these factors. The securities of small, less well-known companies may be more volatile than those of larger companies. Over time, however, stocks have shown greater growth potential than other types of securities. Investments in foreign securities may involve risks in addition to those of U.S. investments, including increased political and economic risk, as well as exposure to currency fluctuations. When you sell your stock fund shares, they may be worth more or less than what you paid for them. The money market fund may be appropriate for investors who would like to earn income at current money market rates while preserving the value of their investment. The fund is managed to keep its share price stable at $1.00. The rate of income will vary from day to day, generally reflecting short-term interest rates. The money market fund is designed for use in connection with exchanges between the stock funds. Since the money market fund is sold with a sales charge, it is not recommended that you invest in the money market fund unless you intend to use it for that purpose. By themselves, the funds do not constitute a balanced investment plan. EXPENSES SHAREHOLDER TRANSACTION EXPENSES are charges you may pay when you buy, sell, or exchange shares of a fund. In addition, you may be charged an annual account maintenance fee if your account balance falls below $2,500. Lower sales charges may be available for accounts over $250,000. See "Transaction Details," page , and "Sales Charge Reductions and Waivers," page , for an explanation of how and when these charges apply. Maximum sales charge on purchases (as a % of offering price) 3.00% Sales charge on reinvested distributions None Deferred sales charge on redemptions None Redemption fee (Trading fee) for the stock funds 0.75% on shares held 29 days or less (as a % of amount redeemed) on shares held 30 days or more 0.75% for redemption amounts of up to $1,000 (as a % of amount redeemed) $7.50 for redemption amounts of $1,000 or more Exchange fee (stock funds only) $7.50 Annual account maintenance fee (for accounts under $2,500) $12.00 ANNUAL FUND OPERATING EXPENSES are paid out of each fund's assets. Each fund pays a management fee to FMR. It also incurs other expenses for services such as maintaining shareholder records and furnishing shareholder statements and financial reports. A fund's expenses are factored into its share price or dividends and are not charged directly to shareholder accounts (see "Breakdown of Expenses," page ) . EXAMPLES: Let's say, hypothetically, that each fund's annual return is 5% and that your shareholder transaction expenses and each fund's annual operating expenses are exactly as just described. For every $1,000 you invested, below is how much you would pay in total expenses if you close your account after the number of years indicated and, for the stock funds, if you leave your account open: The examples illustrate the effect of expenses, but are not meant to suggest actual or expected expense s or returns, all of which may vary. The following figures are based on estimated or historical expenses of each fund , adjusted to reflect current fees, of each fund and are calculated as a percentage of average net assets of each fund.
Operating expenses Account Account open closed AIR TRANSPORTATION Management fee 0 .60% 1 year $45 $53 12b-1 fee None 3 years $77 $84 Other expenses 0 .92% 5 years $110 $118 Total fund operating expenses 1.52% 10 years $206 $213 AMERICAN GOLD Management fee 0 .60% 1 year $44 $52 12b-1 fee None 3 years $74 $82 Other expenses 0 .84% 5 years $106 $114 Total fund operating expenses 1.44% 10 years $197 $205 AUTOMOTIVE Management fee 0 .59% 1 year $45 $52 12b-1 fee None 3 years $76 $83 Other expenses 0 .91% 5 years $109 $117 Total fund operating expenses 1.50% 10 years $204 $211
BIOTECHNOLOGY Management fee 0 .60% 1 year $44 $51 12b-1 fee None 3 years $72 $80 Other expenses 0 .78% 5 years $103 $111 Total fund operating expenses 1.38% 10 years $19 1 $198 BROKERAGE AND INVESTMENT MANAGEMENT Management fee 0 .60% 1 year $42 $49 12b-1 fee None 3 years $67 $74 Other expenses 0 .60% 5 years $94 $101 Total fund operating expenses 1.20% 10 years $171 $179
Operating expenses Account Account open closed BUSINESS SERVICES AND OUTSOURCING PORTFOLIO* Management fee 0 .60% 1 year $50 $57 12b-1 fee None 3 years $91 $99 Other expenses 1.41% Total fund operating expenses 2.01% CHEMICALS Management fee 0 .60% 1 year $45 $52 12b-1 fee None 3 years $76 $83 Other expenses 0 .90% 5 years $109 $117 Total fund operating expenses 1.50% 10 years $204 $211 COMPUTERS Management fee 0 .60% 1 year $43 $51 12b-1 fee None 3 years $71 $78 Other expenses 0 .72% 5 years $100 $108 Total fund operating expenses 1.32% 10 years $184 $192 CONSTRUCTION AND HOUSING Management fee 0 .60% 1 year $50 $57 12b-1 fee None 3 years $91 $99 Other expenses 1.41% 5 years $135 $143 Total fund operating expenses 2.01% 10 years $257 $264
CONSUMER INDUSTRIES Management fee 0 .61% 1 year $48 $55 12b-1 fee None 3 years $85 $93 Other expenses 1.20% 5 years $125 $133 Total fund operating expenses 1.81% 10 years $236 $244 CYCLICAL INDUSTRIES Management fee 0% 1 year $55 $62 (after reimbursement) 12b-1 fee None 3 years $106 $113 Other expenses 2.50% 5 years $159 $167 (after reimbursement) Total fund operating expenses 2.50% 10 years $305 $313 (after reimbursement) DEFENSE AND AEROSPACE Management fee 0 .60% 1 year $45 $52 12b-1 fee None 3 years $75 $83 Other expenses 0 .88% 5 years $108 $116 Total fund operating expenses 1.48% 10 years $202 $209 DEVELOPING COMMUNICATIONS Management fee 0 .60% 1 year $45 $52 12b-1 fee None 3 years $75 $83 Other expenses 0 .87% 5 years $108 $115 Total fund operating expenses 1.47% 10 years $200 $208
* FIGURES ARE BASED ON ESTIMATED EXPENSES.
Operating expenses Account Account open closed ELECTRONICS Management fee 0.60% 1 year $41 $49 12b-1 fee None 3 years $65 $73 Other expenses 0.54% 5 years $91 $98 Total fund operating expenses 1.14% 10 years $164 $172 ENERGY Management fee 0.59% 1 year $44 $51 12b-1 fee None 3 years $73 $80 Other expenses 0.81% 5 years $104 $112 Total fund operating expenses 1.40% 10 years $193 $200 ENERGY SERVICE Management fee 0 .59% 1 year $41 $49 12b-1 fee None 3 years $66 $73 Other expenses 0 .57% 5 years $92 $99 Total fund operating expenses 1.16% 10 years $167 $174 ENVIRONMENTAL SERVICES Management fee 0 .60% 1 year $50 $58 12b-1 fee None 3 years $93 $100 Other expenses 1.47% 5 years $138 $146 Total fund operating expenses 2.07% 10 years $2 6 3 $270 FINANCIAL SERVICES Management fee 0 .60% 1 year $42 $50 12b-1 fee None 3 years $68 $76 Other expenses 0 .64% 5 years $96 $104 Total fund operating expenses 1.24% 10 years $175 $183 FOOD AND AGRICULTURE Management fee 0 .60% 1 year $4 3 $51 12b-1 fee None 3 years $72 $79 Other expenses 0 .76% 5 years $102 $110 Total fund operating expenses 1.36% 10 years $189 $196 HEALTH CARE Management fee 0 .60% 1 year $41 $49 12b-1 fee None 3 years $66 $73 Other expenses 0 .56% 5 years $92 $99 Total fund operating expenses 1.16% 10 years $167 $174 HOME FINANCE Management fee 0 .60% 1 year $41 $49 12b-1 fee None 3 years $66 $73 Other expenses 0 .56% 5 years $92 $99 Total fund operating expenses 1.16% 10 years $167 $174
Operating expenses Account Account open closed INDUSTRIAL EQUIPMENT Management fee 0 .60% 1 year $45 $52 12b-1 fee None 3 years $75 $83 Other expenses 0 .88% 5 years $108 $116 Total fund operating expenses 1.48% 10 years $202 $209 INDUSTRIAL MATERIALS Management fee 0 .60% 1 year $48 $55 12b-1 fee None 3 years $85 $92 Other expenses 1.20% 5 years $125 $132 Total fund operating expenses 1.80% 10 years $235 $243 INSURANCE Management fee 0 .6 0 % 1 year $43 $51 12b-1 fee None 3 years $72 $79 Other expenses 0 .7 6 % 5 years $102 $110 Total fund operating expenses 1.36% 10 years $189 $196 LEISURE Management fee 0 .60% 1 year $44 $51 12b-1 fee None 3 years $72 $80 Other expenses 0 .77% 5 years $103 $110 Total fund operating expenses 1.37% 10 years $190 $197 MEDICAL DELIVERY Management fee 0 .60% 1 year $44 $52 12b-1 fee None 3 years $74 $82 Other expenses 0 .84% 5 years $106 $114 Total fund operating expenses 1.44% 10 years $197 $205 MEDICAL EQUIPMENT AND SYSTEMS* Management fee 0.60% 1 year $50 $57 12b-1 fee None 3 years $91 $99 Other expenses 1.41 % Total fund operating expenses 2.01 % MULTI MEDIA Management fee 0.60% 1 year $46 $53 12b-1 fee None 3 years $78 $86 Other expenses 0.98% 5 years $113 $121 Total fund operating expenses 1.58% 10 years $212 $220 NATURAL GAS Management fee 0.59% 1 year $45 $53 12b-1 fee None 3 years $77 $85 Other expenses 0.96% 5 years $112 $119 Total fund operating expenses 1.55% 10 years $209 $217 NATURAL RESOURCES Management fee 0% 1 year $55 $62 (after reimbursement) 12b-1 fee None 3 years $106 $113 Other expenses 2.50% 5 years $159 $167 (after reimbursement) Total fund operating expenses 2.50% 10 years $305 $313 (after reimbursement)
* FIGURES ARE BASED ON ESTIMATED EXPENSES.
Operating expenses Account Account open closed PAPER AND FOREST PRODUCTS Management fee 0 .60% 1 year $ 49 $ 57 12b-1 fee None 3 years $ 89 $ 97 Other expenses 1.34% 5 years $ 132 $ 139 Total fund operating expenses 1.94% 10 years $ 250 $ 257 PRECIOUS METALS AND MINERALS Management fee 0 .60% 1 year $ 47 $ 54 12b-1 fee None 3 years $ 82 $ 89 Other expenses 1.09% 5 years $ 119 $ 127 Total fund operating expenses 1.69% 10 years $ 224 $ 231 REGIONAL BANKS Management fee 0 .60% 1 year $ 42 $ 49 12b-1 fee None 3 years $ 67 $ 74 Other expenses 0 .59% 5 years $ 93 $ 101 Total fund operating expenses 1.19% 10 years $ 170 $ 177 RETAILING Management fee 0.60% 1 year $44 $51 12b-1 fee None 3 years $72 $80 Other expenses 0.77% 5 years $103 $110 Total fund operating expenses 1.37% 10 years $190 $197
SOFTWARE AND COMPUTER SERVICES Management fee 0 .60% 1 year $43 $51 12b-1 fee None 3 years $72 $79 Other expenses 0 .76% 5 years $102 $110 Total fund operating expenses 1.36% 10 years $189 $196 TECHNOLOGY Management fee 0 .60% 1 year $43 $51 12b-1 fee None 3 years $71 $78 Other expenses 0 .72% 5 years $100 $108 Total fund operating expenses 1.32% 10 years $184 $192 TELECOMMUNICATIONS Management fee 0 .60% 1 year $44 $51 12b-1 fee None 3 years $73 $81 Other expenses 0 .81% 5 years $105 $112 Total fund operating expenses 1.41% 10 years $194 $202 TRANSPORTATION Management fee 0 .59% 1 year $44 $52 12b-1 fee None 3 years $74 $82 Other expenses 0 .85% 5 years $106 $114 Total fund operating expenses 1.44% 10 years $197 $205 UTILITIES GROWTH Management fee 0 .60% 1 year $43 $50 12b-1 fee None 3 years $69 $77 Other expenses 0 .67% 5 years $98 $105 Total fund operating expenses 1.27% 10 years $179 $186 MONEY MARKET Management fee 0 .21% 1 year $36 $36 12b-1 fee None 3 years $47 $47 Other expenses 0 .35% 5 years $60 $60 Total fund operating expenses 0 .56% 10 years $98 $98
A portion of the brokerage commissions that a fund pays is used to reduce that fund's expenses. In addition, each fund has entered into arrangements with its custodian and transfer agent whereby 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 presented in the preceding tables would have been: Air Transportation 1.46 % American Gold 1 .37% Automotive 1.46 % Biotechnology 1.36 % Brokerage and Investment Management 1.16 % Chemicals 1.49 % Computers 1.26 % Construction and Housing 1.94 % Consumer Industries 1.77 % Defense and Aerospace 1.42 % Developing Communications 1.41 % Electronics 1.08 % Energy 1.35 % Energy Service 1.13 % Environmental Services 2.06 % Financial Services 1.22 % Food and Agriculture 1.35 % Health Care 1.14 % Home Finance 1.14 % Industrial Equipment 1.41 % Industrial Materials 1.76 % Insurance 1.34 % Leisure 1.32 % Medical Delivery 1.40 % Multimedia 1.54 % Natural Gas 1.51 % Natural Resources 2.48 % Paper and Forest Products 1.91 % Precious Metals and Minerals 1.63 % Regional Banks 1.18 % Retailing 1.29 % Software and Computer Services 1.34 % Technology 1.24 % Telecommunications 1.38 % Transportation 1.40 % Utilities Growth 1.24 % FMR has voluntarily agreed to reimburse each fund to the extent that total operating expenses (excluding interest, taxes, brokerage commissions and extraordinary expenses) exceed 2.50% of its average net assets. If these agreements were not in effect, the management fee, other expenses and total operating expenses , as a percentage of average net assets, would have been 0.59%, 4.14% and 4.73%, respec tively , for Cyclical Industries and 0.60%, 2.81% and 3.41%, respectively, for Natural Resources. FINANCIAL HIGHLIGHTS The financial highlights tables that follow have been audited by Price Waterhouse LLP, independent accountants. The funds' financial highlights, financial statements, and report of the auditor are included in the funds' Annual Report, and are incorporated by reference into (are legally part of) the funds' SAI. Contact Fidelity for a free copy of the Annual Report or the SAI. Business Services and Outsourcing commenced operations on February 4, 1998. Medical Equipment and Systems will commence operations on or about April 28, 1998. AIR TRANSPORTATION
SELECTED PER-SHARE DATA AND RATIOS YEARS ENDED FEBRUARY 28 1998 1997 1996H 1995 1994 1993C 1992D 1991D 1990D 1989D NET ASSET VALUE, BEGINNING OF PERIOD $ 17.72 $ 21.11 $ 13.93 $ 17.12 $ 13.60 $ 12.64 $ 11.53 $ 11.05 $ 11.77 $ 8.61 INCOME FROM INVESTMENT OPERATIONS NET INVESTMENT INCOME (LOSS)J (.19) (.22) (.01) (.18) (.18) (.09)G (.13) (.04) -- (.02) NET REALIZED AND UNREALIZED GAIN (LOSS) 10.59 (3.12) 7.47 (2.01) 3.78 1.33 1.40 .38 (.16) 3.18 TOTAL FROM INVESTMENT OPERATIONS 10.40 (3.34) 7.46 (2.19) 3.60 1.24 1.27 .34 (.16) 3.16 LESS DISTRIBUTIONS FROM NET REALIZED GAIN (1.43) (.07) (.46) (.92) (.22) (.36) (.25) -- (.57) -- IN EXCESS OF NET REALIZED GAIN -- (.20) -- (.17) (.05) -- -- -- -- -- TOTAL DISTRIBUTIONS (1.43) (.27) (.46) (1.09) (.27) (.36) (.25) -- (.57) -- REDEMPTION FEES ADDED TO PAID IN CAPITAL .17 .22 .18 .09 .19 .08 .09 .14 .01 -- NET ASSET VALUE, END OF PERIOD $ 26.86 $ 17.72 $ 21.11 $ 13.93 $ 17.12 $ 13.60 $ 12.64 $ 11.53 $ 11.05 $ 11.77 TOTAL RETURNF,K 61.10% (15.06)% 54.91% (12.45)% 27.94% 10.69% 11.90% 4.34% (1.54)% 36.70% NET ASSETS, END OF PERIOD (000 OMITTED) $ 181,185 $ 35,958 $ 75,359 $ 18,633 $ 11,035 $ 11,868 $ 6,971 $ 4,372 $ 4,688 $ 11,614 RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.93% 1.89% 1.47% 2.50%E 2.33% 2.48%A,E 2.51%E 2.48%E 2.55%E 2.52%E RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.87%B 1.80%B 1.41%B 2.50% 2.31%B 2.48%A 2.51% 2.48% 2.55% 2.52% AFTER EXPENSE REDUCTIONS RATIO OF NET INVESTMENT INCOME (LOSS) (.84)% (1.10)% (.07)% (1.31)% (1.11)% (.90)%A (1.04)% (.34)% (.03)% (.18)% TO AVERAGE NET ASSETS PORTFOLIO TURNOVER RATE 294% 469% 504% 200% 171% 96%A 261% 106% 143% 115% AVERAGE COMMISSION RATEI $ .0270 $ .0409
AMERICAN GOLD
SELECTED PER-SHARE DATA AND RATIOS YEARS ENDED FEBRUARY 28 1998 1997 1996H 1995 1994 1993C 1992D 1991D 1990D 1989D NET ASSET VALUE, BEGINNING OF PERIOD $ 28.21 $ 27.11 $ 18.44 $ 22.66 $ 14.15 $ 11.94 $ 13.08 $ 15.22 $ 14.36 $ 15.82 INCOME FROM INVESTMENT OPERATIONS NET INVESTMENT INCOME (LOSS)J (.13) (.16) (.06) (.05) (.11) (.05) (.06) (.04) (.06) (.09) NET REALIZED AND UNREALIZED GAIN (LOSS) (11.78) 1.60 8.62 (4.25) 8.44 2.16 (1.17) (2.23) .85 (1.37) TOTAL FROM INVESTMENT OPERATIONS (11.91) 1.44 8.56 (4.30) 8.33 2.11 (1.23) (2.27) .79 (1.46) LESS DISTRIBUTIONS FROM NET REALIZED GAIN (1.29) (.50) -- -- -- -- -- -- -- -- REDEMPTION FEES ADDED TO PAID IN CAPITAL .16 .16 .11 .08 .18 .10 .09 .13 .07 -- NET ASSET VALUE, END OF PERIOD $ 15.17 $ 28.21 $ 27.11 $ 18.44 $ 22.66 $ 14.15 $ 11.94 $ 13.08 $ 15.22 $ 14.36 TOTAL RETURNF,K (43.15)% 6.10% 47.02% (18.62)% 60.14% 18.51% (8.72)% (14.06)% 5.99% (9.23)% NET ASSETS, END OF PERIOD (000 OMITTED) $ 219,668 $ 428,103 $ 451,493 $ 278,197 $ 347,406 $ 168,033 $ 130,407 $ 164,137 $ 195,322 $ 175,059 RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.55% 1.44% 1.39% 1.41% 1.50% 1.59%A 1.75% 1.75% 1.85% 2.03% RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.48%B 1.42%B 1.39% 1.41% 1.49%B 1.59%A 1.75% 1.75% 1.85% 2.03% AFTER EXPENSE REDUCTIONS RATIO OF NET INVESTMENT INCOME (LOSS) (.67)% (.59)% (.27)% (.22)% (.51)% (.44)%A (.47)% (.29)% (.38)% (.61)% TO AVERAGE NET ASSETS PORTFOLIO TURNOVER RATE 89% 63% 56% 34% 39% 30%A 40% 38% 68% 56% AVERAGE COMMISSION RATEI $ .0193 $ .0270
A ANNUALIZED B FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. C FOR THE TEN MONTHS ENDED FEBRUARY 28, 1993 D FOR THE YEARS ENDED APRIL 30 E 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. F TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. G INVESTMENT INCOME (LOSS) PER SHARE REFLECTS A SPECIAL DIVIDEND WHICH AMOUNTED TO $.01 PER SHARE. H FOR THE YEAR ENDED FEBRUARY 29 I FOR FISCAL YEARS BEGINNING ON OR AFTER SEPTEMBER 1, 1995, A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES MAY DIFFER. J NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. K THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. AUTOMOTIVE
SELECTED PER-SHARE DATA AND RATIOS YEARS ENDED FEBRUARY 28 1998 1997 1996J 1995 1994 1993C 1992D 1991D 1990D 1989D NET ASSET VALUE, BEGINNING OF PERIOD $ 25.38 $ 21.85 $ 19.84 $ 25.48 $ 20.69 $ 18.65 $ 12.58 $ 12.17 $ 12.86 $ 11.79 INCOME FROM INVESTMENT OPERATIONS NET INVESTMENT INCOME L .05 .13 .03 .08 .05 .13 .06 .25 .23 .15 NET REALIZED AND UNREALIZED GAIN (LOSS) 5.21 4.28 1.95 (3.46) 6.00 2.26 6.55 .29 (.52) .92 TOTAL FROM INVESTMENT OPERATIONS 5.26 4.41 1.98 (3.38) 6.05 2.39 6.61 .54 (.29) 1.07 LESS DISTRIBUTIONS FROM NET INVESTMENT INCOME (.08) (.17) -- (.05) (.05) (.06) -- (.18) (.41) -- FROM NET REALIZED GAIN (3.09) (.75) -- (2.26) (1.26) (.36) (.70) -- -- -- TOTAL DISTRIBUTIONS (3.17) (.92) -- (2.31) (1.31) (.42) (.70) (.18) (.41) -- REDEMPTION FEES ADDED TO PAID IN CAPITAL .03 .04 .03 .05 .05 .07 .16 .05 .01 -- NET ASSET VALUE, END OF PERIOD $ 27.50 $ 25.38 $ 21.85 $ 19.84 $ 25.48 $ 20.69 $ 18.65 $ 12.58 $ 12.17 $ 12.86 TOTAL RETURNF,G 22.78% 20.60% 10.13% (12.59)% 30.45% 13.42% 56.27% 4.81% (2.07)% 9.08% NET ASSETS, END OF PERIOD (000 OMITTED) $ 32,489 $ 86,347 $ 55,753 $ 60,075 $ 228,698 $ 110,360 $ 178,445 $ 974 $ 1,213 $ 1,428 RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.60% 1.56% 1.81% 1.82% 1.69% 1.57%A 2.48% 2.25%E 2.42%E 2.63%E RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.56%B 1.52%B 1.80%B 1.80%B 1.68%B 1.57%A 2.48% 2.25% 2.42% 2.63% AFTER EXPENSE REDUCTIONS RATIO OF NET INVESTMENT INCOME .17% .54% .13% .34% .22% .72%A .36% 2.06% 1.84% 1.22% TO AVERAGE NET ASSETS PORTFOLIO TURNOVER RATE 153% 175% 61% 63% 64% 140%A 29% 219% 121% 149% AVERAGE COMMISSION RATEK $ .0424 $ .0495
BIOTECHNOLOGY
SELECTED PER-SHARE DATA AND RATIOS YEARS ENDED FEBRUARY 28 1998 1997 1996J 1995 1994 1993C 1992D 1991D 1990D 1989D NET ASSET VALUE, BEGINNING OF PERIOD $ 34.24 $ 36.60 $ 25.30 $ 27.61 $ 22.60 $ 27.61 $ 26.78 $ 15.28 $ 11.90 $ 10.31 INCOME FROM INVESTMENT OPERATIONS NET INVESTMENT INCOME (LOSS)L (.27) (.20) .11 (.06) (.18) (.08) (.11) .05I (.04)H (.04) NET REALIZED AND UNREALIZED GAIN (LOSS) 5.20 1.89 11.21 (2.26) 5.15 (1.09) 3.36 11.80 3.60 1.63 TOTAL FROM INVESTMENT OPERATIONS 4.93 1.69 11.32 (2.32) 4.97 (1.17) 3.25 11.85 3.56 1.59 LESS DISTRIBUTIONS FROM NET INVESTMENT INCOME -- (.03) (.07) -- -- -- -- -- -- -- IN EXCESS OF NET INVESTMENT INCOME -- -- -- -- -- -- (.02) -- -- -- FROM NET REALIZED GAIN (4.71) (4.06) -- -- -- (3.89) (2.52) (.67) (.24) -- TOTAL DISTRIBUTIONS (4.71) (4.09) (.07) -- -- (3.89) (2.54) (.67) (.24) -- REDEMPTION FEES ADDED TO PAID IN CAPITAL .06 .04 .05 .01 .04 .05 .12 .32 .06 -- NET ASSET VALUE, END OF PERIOD $ 34.52 $ 34.24 $ 36.60 $ 25.30 $ 27.61 $ 22.60 $ 27.61 $ 26.78 $ 15.28 $ 11.90 TOTAL RETURNF,G 16.11% 5.85% 44.97% (8.37)% 22.17% (5.92)% 12.36% 81.43% 30.53% 15.42% NET ASSETS, END OF PERIOD (000 OMITTED) $ 579,542 $ 674,902 $ 1,096,864 $ 448,197 $ 481,146 $ 507,993 $ 679,877 $ 482,271 $ 70,994 $ 46,946 RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.49% 1.57% 1.44%E 1.59% 1.62% 1.50%A 1.50% 1.63% 2.07% 2.21% RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.47%B 1.56%B 1.43%B 1.59% 1.61%B 1.50%A 1.50% 1.63% 2.07% 2.21% AFTER EXPENSE REDUCTIONS RATIO OF NET INVESTMENT INCOME (LOSS) (.81)% (.59)% .35% (.27)% (.69)% (.37)%A (.34)% .24% (.31)% (.43)% TO AVERAGE NET ASSETS PORTFOLIO TURNOVER RATE 162% 41% 67% 77% 51% 79%A 160% 166% 290% 80% AVERAGE COMMISSION RATEK $ .0454 $ .0376
A ANNUALIZED B FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. C FOR THE TEN MONTHS ENDED FEBRUARY 28, 1993 D FOR THE YEARS ENDED APRIL 30 E 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. F TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. G THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. H INVESTMENT INCOME (LOSS) PER SHARE REFLECTS A SPECIAL DIVIDEND WHICH AMOUNTED TO $.05 PER SHARE. I INVESTMENT INCOME (LOSS) PER SHARE REFLECTS A SPECIAL DIVIDEND WHICH AMOUNTED TO $.02 PER SHARE. J FOR THE YEAR ENDED FEBRUARY 29 K FOR FISCAL YEARS BEGINNING ON OR AFTER SEPTEMBER 1, 1995, A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES MAY DIFFER. L NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. BROKERAGE AND INVESTMENT MANAGEMENT
SELECTED PER-SHARE DATA AND RATIOS YEARS ENDED FEBRUARY 28 1998 1997 1996G 1995 1994 1993E 1992F 1991F 1990F 1989F NET ASSET VALUE, BEGINNING OF PERIOD $ 25.76 $ 18.49 $ 15.51 $ 17.75 $ 14.22 $ 11.48 $ 9.28 $ 7.97 $ 8.39 $ 7.14 INCOME FROM INVESTMENT OPERATIONS NET INVESTMENT INCOME (LOSS)D .16 .08 .09 (.03) (.02) -- .02 .08 .08 .09 NET REALIZED AND UNREALIZED GAIN (LOSS) 14.46 7.80 4.29 (2.25) 4.95 2.65 1.96 1.15 (.35) 1.25 TOTAL FROM INVESTMENT OPERATIONS 14.62 7.88 4.38 (2.28) 4.93 2.65 1.98 1.23 (.27) 1.34 LESS DISTRIBUTIONS FROM NET INVESTMENT INCOME (.09) (.06) (.04) -- (.01) -- (.01) (.09) (.16) (.09) FROM NET REALIZED GAIN (.61) (.65) (1.09) -- (1.47) -- -- -- -- -- IN EXCESS OF NET REALIZED GAIN -- -- (.35) -- -- -- -- -- -- -- TOTAL DISTRIBUTIONS (.70) (.71) (1.48) -- (1.48) -- (.01) (.09) (.16) (.09) REDEMPTION FEES ADDED TO PAID IN CAPITAL .10 .10 .08 .04 .08 .09 .23 .17 .01 -- NET ASSET VALUE, END OF PERIOD $ 39.78 $ 25.76 $ 18.49 $ 15.51 $ 17.75 $ 14.22 $ 11.48 $ 9.28 $ 7.97 $ 8.39 TOTAL RETURNB,C 57.56% 44.27% 29.85% (12.62)% 35.87% 23.87% 23.84% 17.90% (3.23)% 18.93% NET ASSETS, END OF PERIOD (000 OMITTED) $ 676,067 $ 458,787 $ 38,382 $ 27,346 $ 59,810 $ 24,687 $ 17,915 $ 11,285 $ 2,298 $ 4,340 RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.33% 1.94% 1.64%I 2.54%I 1.79% 2.21%A 2.17% 2.50%I 2.50%I 2.54%I RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.29%J 1.93%J 1.61%J 2.54% 1.77%J 2.21%A 2.17% 2.50% 2.50% 2.54% AFTER EXPENSE REDUCTIONS RATIO OF NET INVESTMENT INCOME (LOSS) .49% .37% .50% (.20)% (.14)% .02%A .16% .94% .91% 1.18% TO AVERAGE NET ASSETS PORTFOLIO TURNOVER RATE 100% 16% 166% 139% 295% 111%A 254% 62% 142% 185% AVERAGE COMMISSION RATEK $ .0460 $ .0392
BUSINESS SERVICES AND OUTSOURCING
SELECTED PER-SHARE DATA AND RATIOS YEAR ENDED FEBRUARY 28 1998H NET ASSET VALUE, BEGINNING OF PERIOD $ 10.00 INCOME FROM INVESTMENT OPERATIONS NET INVESTMENT INCOME (LOSS)D -- NET REALIZED AND UNREALIZED GAIN (LOSS) .89 TOTAL FROM INVESTMENT OPERATIONS .89 NET ASSET VALUE, END OF PERIOD $ 10.89 TOTAL RETURNB,C 8.90% NET ASSETS, END OF PERIOD (000 OMITTED) $ 15,915 RATIO OF EXPENSES TO AVERAGE NET ASSETS 2.50%A,I RATIO OF NET INVESTMENT INCOME (LOSS) TO AVERAGE NET ASSETS (.49)%A PORTFOLIO TURNOVER RATE 36%A AVERAGE COMMISSION RATEK $ .0153
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 TEN MONTHS ENDED FEBRUARY 28, 1993 F FOR THE YEARS ENDED APRIL 30 G FOR THE YEAR ENDED FEBRUARY 29 H FOR THE PERIOD FEBRUARY 4, 1998 (COMMENCEMENT OF OPERATIONS) TO FEBRUARY 28, 1998 I 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. J FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. K FOR FISCAL YEARS BEGINNING ON OR AFTER SEPTEMBER 1, 1995, A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES MAY DIFFER. CHEMICALS
SELECTED PER-SHARE DATA AND RATIOS YEARS ENDED FEBRUARY 28 1998 1997 1996J 1995 1994 1993C 1992E 1991E 1990E 1989E NET ASSET VALUE, BEGINNING OF PERIOD $ 42.53 $ 39.53 $ 33.91 $ 31.66 $ 28.62 $ 32.81 $ 26.25 $ 22.70 $ 23.77 $ 20.67 INCOME FROM INVESTMENT OPERATIONS NET INVESTMENT INCOME (LOSS)F (.02) .28 .01 .36 .29 .30 .12 .28 .41 .28 NET REALIZED AND UNREALIZED GAIN (LOSS) 7.88 5.49 8.89 2.65 5.97 (.84) 7.27 3.94 (.21) 2.82 TOTAL FROM INVESTMENT OPERATIONS 7.86 5.77 8.90 3.01 6.26 (.54) 7.39 4.22 .20 3.10 LESS DISTRIBUTIONS FROM NET INVESTMENT INCOME (LOSS)F -- (.12) (.08) (.22) (.23) (.31) (.18) (.10) (.16) -- FROM NET REALIZED GAIN (4.54)N (2.74) (3.22) (.60) (3.05) (3.36) (.71) (.60) (1.13) -- TOTAL DISTRIBUTIONS (4.54) (2.86) (3.30) (.82) (3.28) (3.67) (.89) (.70) (1.29) -- REDEMPTION FEES ADDED TO PAID IN CAPITAL .05 .09 .02 .06 .06 .02 .06 .03 .02 -- NET ASSET VALUE, END OF PERIOD $ 45.90 $ 42.53 $ 39.53 $ 33.91 $ 31.66 $ 28.62 $ 32.81 $ 26.25 $ 22.70 $ 23.77 TOTAL RETURNA,B 19.47% 15.06% 27.48% 9.90% 23.63% (1.61)% 29.07% 18.99% .71% 15.00% NET ASSETS, END OF PERIOD (000 OMITTED) $ 69,349 $ 111,409 $ 89,230 $ 97,511 $ 62,217 $ 28,796 $ 39,566 $ 20,396 $ 21,150 $ 44,914 RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.68% 1.83% 1.99% 1.52% 1.93% 1.89%K 2.16% 2.50%D 2.37% 2.24% RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.67%G 1.81%G 1.97%G 1.51%G 1.93% 1.89%K 2.16% 2.50% 2.37% 2.24% AFTER EXPENSE REDUCTIONS RATIO OF NET INVESTMENT INCOME (LOSS) (.05)% .67% .04% 1.07% .97% 1.21%K .40% 1.21% 1.65% 1.27% TO AVERAGE NET ASSETS PORTFOLIO TURNOVER RATE 31% 207% 87% 106% 81% 214%K 87% 87% 99% 117% AVERAGE COMMISSION RATEI $ .0399 $ .0458
COMPUTERS
SELECTED PER-SHARE DATA AND RATIOS YEARS ENDED FEBRUARY 28 1998 1997 1996J 1995 1994 1993C 1992E 1991E 1990E 1989E NET ASSET VALUE, BEGINNING OF PERIOD $ 48.25 $ 41.03 $ 30.67 $ 27.02 $ 20.15 $ 17.63 $ 16.60 $ 12.68 $ 11.60 $ 11.86 INCOME FROM INVESTMENT OPERATIONS NET INVESTMENT INCOME (LOSS)F (.32) (.36) (.23) (.31) (.21)H (.15) (.03)M .42L (.11) (.13) NET REALIZED AND UNREALIZED GAIN(LOSS) 6.42 9.94 16.10 3.68 8.66 2.44 1.18 3.21 .98 (.13) TOTAL FROM INVESTMENT OPERATIONS 6.10 9.58 15.87 3.37 8.45 2.29 1.15 3.63 .87 (.26) LESS DISTRIBUTIONS FROM NET INVESTMENT INCOME -- -- -- -- -- -- -- (.12) -- -- IN EXCESS OF NET INVESTMENT INCOME -- -- -- -- -- -- (.27) -- -- -- FROM NET REALIZED GAIN (10.64) (2.47) (5.61) -- (1.80) -- (.22) -- -- -- IN EXCESS OF NET REALIZED GAIN (2.75) -- -- -- -- -- -- -- -- -- TOTAL DISTRIBUTIONS (13.39) (2.47) (5.61) -- (1.80) -- (.49) (.12) -- -- REDEMPTION FEES ADDED TO PAID IN CAPITAL .12 .11 .10 .28 .22 .23 .37 .41 .21 -- NET ASSET VALUE, END OF PERIOD $ 41.08 $ 48.25 $ 41.03 $ 30.67 $ 27.02 $ 20.15 $ 17.63 $ 16.60 $ 12.68 $ 11.60 TOTAL RETURNA,B 20.33% 23.97% 52.79% 13.51% 45.06% 14.29% 9.36% 32.11% 9.31% (2.19)% NET ASSETS, END OF PERIOD (000 OMITTED) $ 785,465 $ 604,286 $ 527,337 $ 215,014 $ 120,435 $ 47,596 $ 32,810 $ 29,455 $ 27,561 $ 15,730 RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.40% 1.48% 1.40% 1.71% 1.90% 1.81%K 2.17% 2.26% 2.64%D 2.56%D RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.34%G 1.44%G 1.38%G 1.69%G 1.89%G 1.81%K 2.17% 2.26% 2.64% 2.56% AFTER EXPENSE REDUCTIONS RATIO OF NET INVESTMENT INCOME (LOSS) (.67)% (.83)% (.56)% (1.12)% (.91)% (.98)%K (.18)% 2.94% (.94)% (1.18)% TO AVERAGE NET ASSETS PORTFOLIO TURNOVER RATE 333% 255% 129% 189% 145% 254%K 568% 695% 596% 466% AVERAGE COMMISSION RATEI $ .0444 $ .0432
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 AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. C FOR THE TEN MONTHS ENDED FEBRUARY 28, 1993 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 FOR THE YEARS ENDED APRIL 30 F NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. 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 INVESTMENT INCOME (LOSS) PER SHARE REFLECTS A SPECIAL DIVIDEND WHICH AMOUNTED TO $.07 PER SHARE. I FOR FISCAL YEARS BEGINNING ON OR AFTER SEPTEMBER 1, 1995, A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES MAY DIFFER. J FOR THE YEAR ENDED FEBRUARY 29 K ANNUALIZED L INVESTMENT INCOME PER SHARE REFLECTS A SPECIAL DIVIDEND WHICH AMOUNTED TO $.08 AND $.36 PER SHARE RELATING TO A NONRECURRING INITIATIVE TO INVEST IN DIVIDEND INCOME PRODUCING SECURITIES WHICH WAS IN EFFECT FOR A PORTION OF 1991. M INVESTMENT INCOME (LOSS) PER SHARE REFLECTS A SPECIAL DIVIDEND WHICH AMOUNTED TO $.22 PER SHARE RELATING TO A NONRECURRING INITIATIVE TO INVEST IN DIVIDEND INCOME PRODUCING SECURITIES WHICH WAS IN EFFECT FOR A PORTION OF 1992. N THE AMOUNT SHOWN REFLECTS CERTAIN RECLASSIFICATIONS RELATED TO BOOK TO TAX DIFFERENCES. CONSTRUCTION AND HOUSING
SELECTED PER-SHARE DATA AND RATIOS YEARS ENDED FEBRUARY 28 1998 1997 1996J 1995 1994 1993C 1992D 1991D 1990D 1989D NET ASSET VALUE, BEGINNING OF PERIOD $ 22.00 $ 19.56 $ 16.79 $ 19.82 $ 15.74 $ 13.84 $ 11.76 $ 11.66 $ 13.01 $ 11.25 INCOME FROM INVESTMENT OPERATIONS NET INVESTMENT INCOME (LOSS)L (.25) .06 .07 (.02) .01 .02 (.06) .01 -- .14 NET REALIZED AND UNREALIZED GAIN (LOSS) 7.67 3.38 3.55 (2.50) 4.26 1.87 2.93 1.45 .34 1.95 TOTAL FROM INVESTMENT OPERATIONS 7.42 3.44 3.62 (2.52) 4.27 1.89 2.87 1.46 .34 2.09 LESS DISTRIBUTIONS FROM NET INVESTMENT INCOME (.02) (.02) (.07) -- -- -- -- (.16) (.08) (.06) FROM NET REALIZED GAIN (3.87) (1.03) (.81) (.52) (.22) (.01) (.88) (1.27) (1.62) (.27) TOTAL DISTRIBUTIONS (3.89) (1.05) (.88) (.52) (.22) (.01) (.88) (1.43) (1.70) (.33) REDEMPTION FEES ADDED TO PAID IN CAPITAL .10 .05 .03 .01 .03 .02 .09 .07 .01 -- NET ASSET VALUE, END OF PERIOD $ 25.63 $ 22.00 $ 19.56 $ 16.79 $ 19.82 $ 15.74 $ 13.84 $ 11.76 $ 11.66 $ 13.01 TOTAL RETURNF, G 40.04% 18.64% 21.77% (12.54)% 27.45% 13.81% 26.96% 13.46% 2.39% 19.01% NET ASSETS, END OF PERIOD (000 OMITTED) $ 57,484 $ 30,581 $ 42,668 $ 16,863 $ 80,999 $ 31,111 $ 26,687 $ 4,070 $ 1,217 $ 1,335 RATIO OF EXPENSES TO AVERAGE NET ASSETS 2.50%E 1.41% 1.43% 1.76% 1.67% 2.02%A 2.50% 2.48%E 2.41%E 2.56%E RATIO OF EXPENSES TO AVERAGE NET ASSETS 2.43%I 1.35%I 1.40%I 1.74%I 1.66%I 2.02%A 2.50% 2.48% 2.41% 2.56% AFTER EXPENSE REDUCTIONS RATIO OF NET INVESTMENT INCOME (LOSS) (1.10)% .27% .39% (.11)% .03% .20%A (.49)% .08% (.03)% 1.16% TO AVERAGE NET ASSETS PORTFOLIO TURNOVER RATE 404% 270% 139% 45% 35% 60%A 183% 137% 185% 225% AVERAGE COMMISSION RATEK $ .0342 $ .0410
CONSUMER INDUSTRIES
SELECTED PER-SHARE DATA AND RATIOS YEARS ENDED FEBRUARY 28 1998 1997 1996J 1995 1994 1993C 1992D 1991B NET ASSET VALUE, BEGINNING OF PERIOD $ 20.66 $ 17.84 $ 13.91 $ 15.24 $ 12.97 $ 13.81 $ 11.22 $ 10.00 INCOME FROM INVESTMENT OPERATIONS NET INVESTMENT INCOME (LOSS)L (.22) (.22) .08 (.15) (.20) (.09) (.07) .05H NET REALIZED AND UNREALIZED GAIN (LOSS) 8.34 2.93 3.97 (.60) 3.84 .20 2.86 1.18 TOTAL FROM INVESTMENT OPERATIONS 8.12 2.71 4.05 (.75) 3.64 .11 2.79 1.23 LESS DISTRIBUTIONS FROM NET INVESTMENT INCOME -- -- (.02) -- -- -- -- (.06) FROM NET REALIZED GAIN (1.52) -- (.01) (.60) (1.40) (.97) (.22) -- IN EXCESS OF NET REALIZED GAIN -- -- (.20) -- -- -- -- -- TOTAL DISTRIBUTIONS (1.52) -- (.23) (.60) (1.40) (.97) (.22) (.06) REDEMPTION FEES ADDED TO PAID IN CAPITAL .05 .11 .11 .02 .03 .02 .02 .05 NET ASSET VALUE, END OF PERIOD $ 27.31 $ 20.66 $ 17.84 $ 13.91 $ 15.24 $ 12.97 $ 13.81 $ 11.22 TOTAL RETURNF,G 40.36% 15.81% 30.01% (4.59)% 28.43% .98% 25.27% 12.89% NET ASSETS, END OF PERIOD (000 OMITTED) $ 72,152 $ 18,392 $ 22,362 $ 20,501 $ 8,374 $ 7,005 $ 7,553 $ 1,877 RATIO OF EXPENSES TO AVERAGE NET ASSETS 2.01% 2.49% 1.53%E 2.49%E 2.48%E 2.47%A,E 2.48%E 2.43%A,E RATIO OF EXPENSES TO AVERAGE NET ASSETS AFTER EXPENSE REDUCTIONS 1.97%I 2.44%I 1.48%I 2.49% 2.48% 2.47%A 2.48% 2.43%A RATIO OF NET INVESTMENT INCOME (LOSS) TO AVERAGE NET ASSETS (.90)% (1.13)% .46% (1.08)% (1.34)% (.80)%A (.56)% .62%A PORTFOLIO TURNOVER RATE 199% 340% 601% 190% 169% 215%A 140% 108%A AVERAGE COMMISSION RATEK $ .0273 $ .0355
A ANNUALIZED B FROM JUNE 29, 1990 (COMMENCEMENT OF OPERATIONS) TO APRIL 30, 1991 C FOR THE TEN MONTHS ENDED FEBRUARY 28, 1993 D FOR THE YEARS ENDED APRIL 30 E 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. F TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. G THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. H INVESTMENT INCOME (LOSS) PER SHARE REFLECTS A SPECIAL DIVIDEND WHICH AMOUNTED TO $.02 PER SHARE. I FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. J FOR THE YEAR ENDED FEBRUARY 29 K FOR FISCAL YEARS BEGINNING ON OR AFTER SEPTEMBER 1, 1995, A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES MAY DIFFER. L NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. CYCLICAL INDUSTRIES
SELECTED PER-SHARE DATA AND RATIOS YEAR ENDED FEBRUARY 28 1998G NET ASSET VALUE, BEGINNING OF PERIOD $ 10.00 INCOME FROM INVESTMENT OPERATIONS NET INVESTMENT INCOME (LOSS)B (.11) NET REALIZED AND UNREALIZED GAIN (LOSS) 2.59 TOTAL FROM INVESTMENT OPERATIONS 2.48 LESS DISTRIBUTIONS FROM NET REALIZED GAIN (.46) REDEMPTION FEES ADDED TO PAID IN CAPITAL .05 NET ASSET VALUE, END OF PERIOD $ 12.07 TOTAL RETURNH,I 25.77% NET ASSETS, END OF PERIOD (000 OMITTED) $ 3,965 RATIO OF EXPENSES TO AVERAGE NET ASSETS 2.50%A,E RATIO OF NET INVESTMENT INCOME (LOSS) TO AVERAGE NET ASSETS (.93)%A PORTFOLIO TURNOVER RATE 140%A AVERAGE COMMISSION RATEK $ .0220
DEFENSE AND AEROSPACE
SELECTED PER-SHARE DATA AND RATIOS YEARS ENDED FEBRUARY 28 1998 1997 1996F 1995 1994 1993C 1992D 1991D 1990D 1989D NET ASSET VALUE, BEGINNING OF PERIOD $ 28.94 $ 26.97 $ 19.64 $ 19.14 $ 15.08 $ 14.37 $ 13.72 $ 11.90 $ 12.42 $ 12.16 INCOME FROM INVESTMENT OPERATIONS NET INVESTMENT INCOME (LOSS)B (.29) (.11) (.05) (.06) .07 (.02) (.01) .10 .04 (.05) NET REALIZED AND UNREALIZED GAIN (LOSS) 11.84 4.18 9.09 .70 4.57 .69 .67 1.72 (.56) .31 TOTAL FROM INVESTMENT OPERATIONS 11.55 4.07 9.04 .64 4.64 .67 .66 1.82 (.52) .26 LESS DISTRIBUTIONS FROM NET INVESTMENT INCOME -- -- -- -- (.10) -- (.04) (.12) -- -- IN EXCESS OF NET INVESTMENT INCOME -- -- -- -- -- -- (.02) -- -- -- FROM NET REALIZED GAIN (3.04) (2.17) (1.82) (.27) (.62) -- -- -- -- -- TOTAL DISTRIBUTIONS (3.04) (2.17) (1.82) (.27) (.72) -- (.06) (.12) -- -- REDEMPTION FEES ADDED TO PAID IN CAPITAL .12 .07 .11 .13 .14 .04 .05 .12 -- -- NET ASSET VALUE, END OF PERIOD $ 37.57 $ 28.94 $ 26.97 $ 19.64 $ 19.14 $ 15.08 $ 14.37 $ 13.72 $ 11.90 $ 12.42 TOTAL RETURNH,I 42.68% 15.87% 47.40% 4.13% 32.04% 4.94% 5.18% 16.42% (4.19)% 2.14% NET ASSETS, END OF PERIOD (000 OMITTED) $ 101,805 $ 68,803 $ 26,648 $ 4,985 $ 11,136 $ 1,463 $ 1,280 $ 3,070 $ 1,599 $ 1,759 RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.77% 1.84% 1.77%E 2.49%E 2.53%E 2.48%A,E 2.46%E 2.49%E 2.43%E 2.53%E RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.71%J 1.81%J 1.75%J 2.49% 2.53% 2.48%A 2.46% 2.49% 2.43% 2.53% AFTER EXPENSE REDUCTIONS RATIO OF NET INVESTMENT INCOME (LOSS) (.85)% (.39)% (.20)% (.32)% .40% (.14)%A (.10)% .78% .34% (.39)% TO AVERAGE NET ASSETS PORTFOLIO TURNOVER RATE 311% 219% 267% 146% 324% 87%A 32% 162% 96% 62% AVERAGE COMMISSION RATEK $ .0320 $ .0335
A ANNUALIZED B NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. C FOR THE TEN MONTHS ENDED FEBRUARY 28, 1993 D FOR THE YEARS ENDED APRIL 30 E 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. F FOR THE YEAR ENDED FEBRUARY 29 G FROM MARCH 3, 1997 (COMMENCEMENT OF OPERATIONS) TO FEBRUARY 28, 1998 H TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. I THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. J FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. K FOR FISCAL YEARS BEGINNING ON OR AFTER SEPTEMBER 1, 1995, A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES MAY DIFFER. DEVELOPING COMMUNICATIONS
SELECTED PER-SHARE DATA AND RATIOS YEARS ENDED FEBRUARY 28 1998 1997 1996C 1995 1994 1993D 1992E 1991B NET ASSET VALUE, BEGINNING OF PERIOD $ 19.68 $ 19.42 $ 20.40 $ 19.65 $ 16.44 $ 13.54 $ 11.95 $ 10.00 INCOME FROM INVESTMENT OPERATIONS NET INVESTMENT INCOME (LOSS)I (.18) (.18) (.17) (.16) (.16) (.07) (.08)J (.10) NET REALIZED AND UNREALIZED GAIN (LOSS) 4.95 .42 4.17 2.55 4.82 2.98 2.42 1.86 TOTAL FROM INVESTMENT OPERATIONS 4.77 .24 4.00 2.39 4.66 2.91 2.34 1.76 LESS DISTRIBUTIONS FROM NET REALIZED GAIN (4.35) -- (5.00) (1.67) (1.47) (.03) (.79) -- REDEMPTION FEES ADDED TO PAID IN CAPITAL .04 .02 .02 .03 .02 .02 .04 .19 NET ASSET VALUE, END OF PERIOD $ 20.14 $ 19.68 $ 19.42 $ 20.40 $ 19.65 $ 16.44 $ 13.54 $ 11.95 TOTAL RETURNG,H 28.17% 1.34% 21.84% 13.63% 30.24% 21.66% 21.41% 19.50% NET ASSETS, END OF PERIOD (000 OMITTED) $ 238,356 $ 220,360 $ 333,185 $ 254,426 $ 222,109 $ 83,383 $ 39,261 $ 7,745 RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.61% 1.64% 1.53% 1.58% 1.56% 1.88%A 2.50% 2.50%A,K RATIO OF EXPENSES TO AVERAGE NET ASSETS AFTER EXPENSE REDUCTIONS 1.55%F 1.62%F 1.51%F 1.56%F 1.56% 1.88%A 2.50% 2.50%A RATIO OF NET INVESTMENT INCOME (LOSS) TO AVERAGE NET ASSETS (.82)% (.86)% (.78)% (.83)% (.88)% (.59)%A (.61)% (1.23)%A PORTFOLIO TURNOVER RATE 383% 202% 249% 266% 280% 77%A 25% 469%A AVERAGE COMMISSION RATEL $ .0437 $ .0346
ELECTRONICS
SELECTED PER-SHARE DATA AND RATIOS YEARS ENDED FEBRUARY 28 1998 1997 1996C 1995 1994 1993D 1992E 1991E 1990E 1989E NET ASSET VALUE, BEGINNING OF PERIOD $ 37.95 $ 28.18 $ 19.80 $ 17.67 $ 14.28 $ 11.81 $ 10.75 $ 9.11 $ 7.32 $ 7.86 INCOME FROM INVESTMENT OPERATIONS NET INVESTMENT INCOME (LOSS)I (.17) (.17) (.08) (.18) (.09) (.05) (.12) (.04) -- (.11) NET REALIZED AND UNREALIZED GAIN (LOSS) 7.32 9.80 13.51 2.11 6.09 2.33 1.00 1.53 1.62 (.43) TOTAL FROM INVESTMENT OPERATIONS 7.15 9.63 13.43 1.93 6.00 2.28 .88 1.49 1.62 (.54) LESS DISTRIBUTIONS FROM NET INVESTMENT INCOME -- -- -- -- -- -- -- (.01) -- -- FROM NET REALIZED GAIN (7.60) -- (5.25) -- (2.75) -- -- -- -- -- IN EXCESS OF NET REALIZED GAIN (2.60) -- -- -- -- -- -- -- -- -- TOTAL DISTRIBUTIONS (10.20) -- (5.25) -- (2.75) -- -- (.01) -- -- REDEMPTION FEES ADDED TO PAID IN CAPITAL .09 .14 .20 .20 .14 .19 .18 .16 .17 -- NET ASSET VALUE, END OF PERIOD $ 34.99 $ 37.95 $ 28.18 $ 19.80 $ 17.67 $ 14.28 $ 11.81 $ 10.75 $ 9.11 $ 7.32 TOTAL RETURNG,H 24.15% 34.67% 72.75% 12.05% 46.24% 20.91% 9.86% 18.15% 24.45% (6.87)% NET ASSETS, END OF PERIOD (000 OMITTED) $ 2,668,750 $ 1,744,017 $ 1,133,362 $ 216,433 $ 110,993 $ 48,027 $ 34,222 $ 18,178 $ 26,141 $ 8,667 RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.18% 1.33% 1.25% 1.72% 1.67% 1.69%A 2.16% 2.26% 2.57%K 2.79%K RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.12%F 1.29%F 1.22%F 1.71%F 1.67% 1.69%A 2.16% 2.26% 2.57% 2.79% AFTER EXPENSE REDUCTIONS RATIO OF NET INVESTMENT INCOME (LOSS) (.42)% (.54)% (.28)% (.98)% (.52)% (.50)%A (1.07)% (.45)% (.02)% (1.51)% TO AVERAGE NET ASSETS PORTFOLIO TURNOVER RATE 435% 341% 366% 205% 163% 293%A 299% 268% 378% 697% AVERAGE COMMISSION RATEL $ .0442 $ .0421
A ANNUALIZED B FROM JUNE 29, 1990 (COMMENCEMENT OF OPERATIONS) TO APRIL 30, 1991 C FOR THE YEAR ENDED FEBRUARY 29 D FOR THE TEN MONTHS ENDED FEBRUARY 28, 1993 E FOR THE YEARS ENDED APRIL 30 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 TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. H THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. I NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. J INVESTMENT INCOME (LOSS) PER SHARE REFLECTS A SPECIAL DIVIDEND WHICH AMOUNTED TO $.06 PER SHARE. K 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 RATIOS WOULD HAVE BEEN HIGHER. L FOR FISCAL YEARS BEGINNING ON OR AFTER SEPTEMBER 1, 1995, A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES MAY DIFFER. ENERGY
SELECTED PER-SHARE DATA AND RATIOS YEARS ENDED FEBRUARY 28 1998 1997 1996H 1995 1994 1993C 1992D 1991D 1990D 1989D NET ASSET VALUE, BEGINNING OF PERIOD $ 21.31 $ 18.97 $ 16.10 $ 16.73 $ 15.84 $ 14.70 $ 15.43 $ 16.64 $ 14.40 $ 13.15 INCOME FROM INVESTMENT OPERATIONS NET INVESTMENT INCOME (LOSS)J .11 .13 .18 .07 .06 .23 .17 .16 .27 .32 NET REALIZED AND UNREALIZED GAIN (LOSS) 3.93 3.59 3.13 (.11) 1.35 1.16 (.75) .15 2.23 1.25 TOTAL FROM INVESTMENT OPERATIONS 4.04 3.72 3.31 (.04) 1.41 1.39 (.58) .31 2.50 1.57 LESS DISTRIBUTIONS FROM NET INVESTMENT INCOME (LOSS) (.09) (.13) (.11) (.08) (.03) (.27) (.16) (.15) (.07) (.32) FROM NET REALIZED GAIN (4.09) (1.31) (.36) (.54) (.57) -- (.02) (1.43) (.22) -- TOTAL DISTRIBUTIONS (4.18) (1.44) (.47) (.62) (.60) (.27) (.18) (1.58) (.29) (.32) REDEMPTION FEES ADDED TO PAID IN CAPITAL .03 .06 .03 .03 .08 .02 .03 .06 .03 -- NET ASSET VALUE, END OF PERIOD $ 21.20 $ 21.31 $ 18.97 $ 16.10 $ 16.73 $ 15.84 $ 14.70 $ 15.43 $ 16.64 $ 14.40 TOTAL RETURNF,G 20.40% 20.35% 20.92% .04% 9.69% 9.81% (3.55)% 2.26% 17.52% 12.37% NET ASSETS, END OF PERIOD (000 OMITTED) $ 147,023 $ 203,265 $ 119,676 $ 96,023 $ 145,490 $ 179,133 $ 77,334 $ 92,611 $ 83,912 $ 80,225 RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.58% 1.57% 1.63% 1.85% 1.67% 1.71%A 1.78% 1.79% 1.94% 1.77% RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.53%B 1.55%B 1.63% 1.85% 1.66%B 1.71%A 1.78% 1.79% 1.94% 1.77% AFTER EXPENSE REDUCTIONS RATIO OF NET INVESTMENT INCOME .47% .62% 1.04% .42% .37% 1.88%A 1.16% .99% 1.69% 2.48% TO AVERAGE NET ASSETS PORTFOLIO TURNOVER RATE 115% 87% 97% 106% 157% 72%A 81% 61% 74% 168% AVERAGE COMMISSION RATEK $ .0142 $ .0399
ENERGY SERVICE
SELECTED PER-SHARE DATA AND RATIOS YEARS ENDED FEBRUARY 28 1998 1997 1996H 1995 1994 1993C 1992D 1991D 1990D 1989D NET ASSET VALUE, BEGINNING OF PERIOD $ 20.46 $ 16.09 $ 11.97 $ 11.66 $ 11.01 $ 9.43 $ 12.51 $ 12.19 $ 8.99 $ 9.22 INCOME FROM INVESTMENT OPERATIONS NET INVESTMENT INCOME (LOSS)J (.10) (.01) .08I .02 .03 .01 (.12) -- (.05) (.04) NET REALIZED AND UNREALIZED GAIN (LOSS) 9.36 5.05 4.49 .67 .51 1.47 (3.11) .15 3.17 (.19) TOTAL FROM INVESTMENT OPERATIONS 9.26 5.04 4.57 .69 .54 1.48 (3.23) .15 3.12 (.23) LESS DISTRIBUTIONS FROM NET INVESTMENT INCOME -- -- (.04) (.01) (.05) -- -- (.02) -- -- IN EXCESS OF NET INVESTMENT INCOME -- -- -- (.01) -- -- -- -- -- -- FROM NET REALIZED GAIN (1.85) (.79)L (.48) (.35) -- -- -- -- -- -- IN EXCESS OF NET REALIZED GAIN -- -- -- (.13) -- -- -- -- -- -- TOTAL DISTRIBUTIONS (1.85) (.79) (.52) (.50) (.05) -- -- (.02) -- -- REDEMPTION FEES ADDED TO PAID IN CAPITAL .15 .12 .07 .12 .16 .10 .15 .19 .08 -- NET ASSET VALUE, END OF PERIOD $ 28.02 $ 20.46 $ 16.09 $ 11.97 $ 11.66 $ 11.01 $ 9.43 $ 12.51 $ 12.19 $ 8.99 TOTAL RETURNF,G 48.43% 32.26% 39.15% 7.60% 6.36% 16.76% (24.62)% 2.80% 35.60% (2.49)% NET ASSETS, END OF PERIOD (000 OMITTED) $ 919,002 $ 439,504 $ 273,805 $ 63,794 $ 40,857 $ 85,234 $ 41,322 $ 73,398 $ 61,821 $ 44,003 RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.25% 1.47% 1.59% 1.81% 1.66% 1.76%A 2.07% 1.82% 2.29% 2.53%E RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.22%B 1.45%B 1.58%B 1.79%B 1.65%B 1.76%A 2.07% 1.82% 2.29% 2.53% AFTER EXPENSE REDUCTIONS RATIO OF NET INVESTMENT INCOME (LOSS) (.35)% (.07)% .60% .19% .23% .13%A (1.13)% (.02)% (.42)% (.45)% TO AVERAGE NET ASSETS PORTFOLIO TURNOVER RATE 78% 167% 223% 209% 137% 236%A 89% 62% 128% 78% AVERAGE COMMISSION RATEK $ .0395 $ .0374
A ANNUALIZED B FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. C FOR THE TEN MONTHS ENDED FEBRUARY 28, 1993 D FOR THE YEARS ENDED APRIL 30 E 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. F TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. G THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. H FOR THE YEAR ENDED FEBRUARY 29 I INVESTMENT INCOME (LOSS) PER SHARE REFLECTS A SPECIAL DIVIDEND WHICH AMOUNTED TO $.02 PER SHARE. J NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. K FOR FISCAL YEARS BEGINNING ON OR AFTER SEPTEMBER 1, 1995, A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES MAY DIFFER. L THE AMOUNTS SHOWN REFLECT CERTAIN RECLASSIFICATIONS RELATED TO BOOK TO TAX DIFFERENCES. ENVIRONMENTAL SERVICES
SELECTED PER-SHARE DATA AND RATIOS YEARS ENDED FEBRUARY 28 1998 1997 1996H 1995 1994 1993I 1992G 1991G 1990F NET ASSET VALUE, BEGINNING OF PERIOD $ 14.50 $ 12.42 $ 10.27 $ 11.93 $ 11.36 $ 11.39 $ 12.95 $ 11.41 $ 10.00 INCOME FROM INVESTMENT OPERATIONS NET INVESTMENT INCOME (LOSS)D (.13) (.08) (.17) (.14) (.11) (.06) (.09) (.04) .02 NET REALIZED AND UNREALIZED GAIN (LOSS) 2.07 2.04E 2.95 (1.53) .67 .42 (1.06) 1.55 1.38 TOTAL FROM INVESTMENT OPERATIONS 1.94 1.96 2.78 (1.67) .56 .36 (1.15) 1.51 1.40 LESS DISTRIBUTIONS FROM NET INVESTMENT INCOME -- -- -- -- -- -- -- -- (.01) FROM NET REALIZED GAIN -- -- (.65) -- -- (.39) (.42) -- -- IN EXCESS OF NET REALIZED GAIN -- (.02) -- -- -- -- -- -- -- TOTAL DISTRIBUTIONS -- (.02) (.65) -- -- (.39) (.42) -- (.01) REDEMPTION FEES ADDED TO PAID IN CAPITAL .02 .14 .02 .01 .01 -- .01 .03 .02 NET ASSET VALUE, END OF PERIOD $ 16.46 $ 14.50 $ 12.42 $ 10.27 $ 11.93 $ 11.36 $ 11.39 $ 12.95 $ 11.41 TOTAL RETURNB,C 13.52% 16.93% 27.49% (13.91)% 5.02% 3.34% (8.67)% 13.50% 14.20% NET ASSETS, END OF PERIOD (000 OMITTED) $ 25,183 $ 32,525 $ 27,587 $ 31,270 $ 65,956 $ 65,913 $ 65,132 $ 100,263 $ 101,736 RATIO OF EXPENSES TO AVERAGE NET ASSETS 2.23% 2.18% 2.36% 2.04% 2.07% 1.99%A 2.03% 2.03% 2.25%A RATIO OF EXPENSES TO AVERAGE NET ASSETS AFTER EXPENSE REDUCTIONS 2.22%J 2.11%J 2.32%J 2.01%J 2.03%J 1.99%A 2.03% 2.03% 2.25%A RATIO OF NET INVESTMENT INCOME (LOSS) TO AVERAGE NET ASSETS (.84)% (.59)% (1.43)% (1.32)% (1.02)% (.70)%A (.74)% (.30)% .16%A PORTFOLIO TURNOVER RATE 59% 252% 138% 82% 191% 176%A 130% 122% 72%A AVERAGE COMMISSION RATEK $ .0313 $ .0348
FINANCIAL SERVICES
SELECTED PER-SHARE DATA AND RATIOS YEARS ENDED FEBRUARY 28 1998 1997 1996H 1995 1994 1993I 1992G 1991G 1990G 1989G NET ASSET VALUE, BEGINNING OF PERIOD $ 82.94 $ 65.70 $ 48.23 $ 51.24 $ 53.29 $ 42.42 $ 30.55 $ 28.28 $ 30.64 $ 26.36 INCOME FROM INVESTMENT OPERATIONS NET INVESTMENT INCOMED .70 .74 1.03 .76 .29 .33 .54 .58 .66 1.00 NET REALIZED AND UNREALIZED GAIN (LOSS) 30.65 21.55 17.56 .87 5.02 14.30 11.35 1.67 (2.53) 4.09 TOTAL FROM INVESTMENT OPERATIONS 31.35 22.29 18.59 1.63 5.31 14.63 11.89 2.25 (1.87) 5.09 LESS DISTRIBUTIONS FROM NET INVESTMENT INCOME (.64) (.63) (.37) (.79) (.20) (.51) (.35) (.52) (.33) (.81) FROM NET REALIZED GAIN (10.51) (4.56) (.91) (3.93) (7.32) (3.38) -- -- (.19) -- TOTAL DISTRIBUTIONS (11.15) (5.19) (1.28) (4.72) (7.52) (3.89) (.35) (.52) (.52) (.81) REDEMPTION FEES ADDED TO PAID IN CAPITAL .14 .14 .16 .08 .16 .13 .33 .54 .03 -- NET ASSET VALUE, END OF PERIOD $ 103.28 $ 82.94 $ 65.70 $ 48.23 $ 51.24 $ 53.29 $ 42.42 $ 30.55 $ 28.28 $ 30.64 TOTAL RETURNB,C 41.08% 35.54% 39.05% 4.72% 10.85% 36.46% 40.31% 10.51% (6.20)% 19.68% NET ASSETS, END OF PERIOD (000 OMITTED) $ 604,908 $ 426,424 $ 270,466 $ 153,089 $ 116,195 $ 214,612 $ 91,700 $ 35,962 $ 21,087 $ 32,647 RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.31% 1.45% 1.42% 1.56% 1.64% 1.54%A 1.85% 2.49% 2.22% 1.07% RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.29%J 1.43%J 1.41%J 1.54%J 1.63%J 1.54%A 1.85% 2.49% 2.22% 1.07% AFTER EXPENSE REDUCTIONS RATIO OF NET INVESTMENT INCOME .78% 1.03% 1.78% 1.52% .53% .86%A 1.49% 2.22% 2.03% 3.53% TO AVERAGE NET ASSETS PORTFOLIO TURNOVER RATE 84% 80% 125% 107% 93% 100%A 164% 237% 308% 186% AVERAGE COMMISSION RATEK $ .0452 $ .0433
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 THE AMOUNT SHOWN FOR A SHARE OUTSTANDING DOES NOT CORRESPOND WITH THE AGGREGATE NET LOSS ON INVESTMENTS FOR THE PERIOD DUE TO THE TIMING OF SALES AND REPURCHASES OF FUND SHARES IN RELATION TO FLUCTUATING MARKET VALUES OF THE INVESTMENTS OF THE FUND. F FOR THE PERIOD JUNE 29, 1989 (COMMENCEMENT OF OPERATIONS) TO APRIL 30, 1990 G FOR THE YEARS ENDED APRIL 30 H FOR THE YEAR ENDED FEBRUARY 29 I FOR THE TEN MONTHS ENDED FEBRUARY 28, 1993 J FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES K FOR FISCAL YEARS BEGINNING ON OR AFTER SEPTEMBER 1, 1995, A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES MAY DIFFER. FOOD AND AGRICULTURE
SELECTED PER-SHARE DATA AND RATIOS YEARS ENDED FEBRUARY 28 1998 1997 1996J 1995 1994 1993C 1992E 1991E 1990E 1989E NET ASSET VALUE, BEGINNING OF PERIOD $ 44.53 $ 42.15 $ 32.53 $ 31.49 $ 30.86 $ 29.22 $ 27.87 $ 22.84 $ 20.76 $ 16.05 INCOME FROM INVESTMENT OPERATIONS NET INVESTMENT INCOMEF .33 .42 .37 .15 .09 .05 .13 .21 .19 .09 NET REALIZED AND UNREALIZED GAIN (LOSS) 9.22 4.91 11.61 2.80 3.29 3.26 2.89 5.78 4.07 4.67 TOTAL FROM INVESTMENT OPERATIONS 9.55 5.33 11.98 2.95 3.38 3.31 3.02 5.99 4.26 4.76 LESS DISTRIBUTIONS FROM NET INVESTMENT INCOME (.37) (.24) (.20) (.08) (.06) (.10) (.11) (.27) (.04) (.05) FROM NET REALIZED GAIN (4.95) (2.77) (2.20) (1.85) (2.70) (1.57) (1.59) (.79) (2.17) -- TOTAL DISTRIBUTIONS (5.32) (3.01) (2.40) (1.93) (2.76) (1.67) (1.70) (1.06) (2.21) (.05) REDEMPTION FEES ADDED TO PAID IN CAPITAL .05 .06 .04 .02 .01 -- .03 .10 .03 -- NET ASSET VALUE, END OF PERIOD $ 48.81 $ 44.53 $ 42.15 $ 32.53 $ 31.49 $ 30.86 $ 29.22 $ 27.87 $ 22.84 $ 20.76 TOTAL RETURNA,B 23.58% 13.59% 37.92% 10.14% 11.69% 11.72% 11.11% 27.39% 20.83% 29.70% NET ASSETS, END OF PERIOD (000 OMITTED) $ 250,567 $ 223,423 $ 301,102 $ 197,130 $ 95,010 $ 108,377 $ 108,922 $ 64,490 $ 25,965 $ 15,536 RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.49% 1.52% 1.43% 1.70% 1.65% 1.67%K 1.83% 2.22% 2.53%D 2.50%D RATIO OF EXPENSES TO AVERAGE 1.48%G 1.50%G 1.42%G 1.68%G 1.64%G 1.67%K 1.83% 2.22% 2.53% 2.50% NET ASSETS AFTER EXPENSE REDUCTIONS RATIO OF NET INVESTMENT INCOME .73% 1.01% .99% .49% .29% .21%K .46% .85% .82% .48% TO AVERAGE NET ASSETS PORTFOLIO TURNOVER RATE 74% 91% 124% 126% 96% 515%K 63% 124% 267% 248% AVERAGE COMMISSION RATEI $ .0333 $ .0326
HEALTH CARE
SELECTED PER-SHARE DATA AND RATIOS YEARS ENDED FEBRUARY 28 1998 1997 1996J 1995 1994 1993C 1992E 1991E 1990E 1989E NET ASSET VALUE, BEGINNING OF PERIOD $ 102.45 $ 100.47 $ 76.13 $ 63.31 $ 52.57 $ 70.42 $ 69.99 $ 46.15 $ 39.79 $ 33.59 INCOME FROM INVESTMENT OPERATIONS NET INVESTMENT INCOME (LOSS)F .33 .52 .95 .75 .15 .13 (.02) .73H .72 .33 NET REALIZED AND UNREALIZED GAIN (LOSS) 31.94 18.01 28.85 18.38 10.61 (9.34) 9.47 28.70 6.56 6.15 TOTAL FROM INVESTMENT OPERAT IONS 32.27 18.53 29.80 19.13 10.76 (9.21) 9.45 29.43 7.28 6.48 LESS DISTRIBUTIONS FROM NET INVESTMENT INCOME (.25) (.65) (.59) (.62) (.07) (.16) (.34) (.20) (.13) (.28) FROM NET REALIZED GAIN (20.73) (15.95) (4.92) (5.74) -- (8.51) (8.81) (5.67) (.84) -- TOTAL DISTRIBUT IONS (20.98) (16.60) (5.51) (6.36) (.07) (8.67) (9.15) (5.87) (.97) (.28) REDEMPTION FEES ADDED TO PAID IN CAPITAL .10 .05 .05 .05 .05 .03 .13 .28 .05 -- NET ASSET VALUE, END OF PERIOD $ 113.84 $ 102.45 $ 100.47 $ 76.13 $ 63.31 $ 52.57 $ 70.42 $ 69.99 $ 46.15 $ 39.79 TOTAL RETURNA,B 36.47% 20.41% 39.68% 31.24% 20.57% (14.81)% 13.92% 69.32% 18.55% 19.44% NET ASSETS, END OF PERIOD $ 2,224,019 $ 1,372,554 $ 1,525,910 $ 943,141 $ 523,890 $ 536,367 $ 838,814 $ 624,018 $ 217,522 $ 210,700 RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.20% 1.33% 1.31% 1.39% 1.59% 1.46%K 1.44% 1.53% 1.74% 1.41% RATIO OF EXPENSES TO AVERAGE 1.18%G 1.32%G 1.30%G 1.36%G 1.55%G 1.46%K 1.44% 1.53% 1.74% 1.41% NET ASSETS AFTER EXPENSE REDUCTIONS RATIO OF NET INVESTMENT INCOME (LOSS) .31% .52% 1.06% 1.08% .26% .24%K (.02)% 1.28% 1.61% .95% TO AVERAGE NET ASSETS PORTFOLIO TURNOVER RATE 79% 59% 54% 151% 213% 112%K 154% 159% 126% 114% AVERAGE COMMISSION RATEI $ .0490 $ .0466
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 AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. C FOR THE TEN MONTHS ENDED FEBRUARY 28, 1993 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 FOR THE YEARS ENDED APRIL 30 F NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. 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 INVESTMENT INCOME (LOSS) PER SHARE REFLECTS A SPECIAL DIVIDEND WHICH AMOUNTED TO $.55 PER SHARE. I FOR FISCAL YEARS BEGINNING ON OR AFTER SEPTEMBER 1, 1995, A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES MAY DIFFER. J FOR THE YEAR ENDED FEBRUARY 29 K ANNUALIZED HOME FINANCE
SELECTED PER-SHARE DATA AND RATIOS YEARS ENDED FEBRUARY 28 1998 1997 1996F 1995 1994 1993D 1992E 1991E 1990E 1989E NET ASSET VALUE, BEGINNING OF PERIOD $ 46.00 $ 33.30 $ 23.92 $ 25.03 $ 22.18 $ 15.38 $ 10.84 $ 8.98 $ 10.88 $ 8.57 INCOME FROM INVESTMENT OPERATIONS NET INVESTMENT INCOMEJ .33 .53 .53 .20 .03 .09 .05 .16 .09 .11 NET REALIZED AND UNREALIZED GAIN (LOSS) 13.10 14.60 9.72 2.34 4.15 6.80 4.40 1.69 (1.47) 2.33 TOTAL FROM INVESTMENT OPERATIONS 13.43 15.13 10.25 2.54 4.18 6.89 4.45 1.85 (1.38) 2.44 LESS DISTRIBUTIONS FROM NET INVESTMENT INCOME (.29) (.32) (.19) (.12) (.01) (.01) (.14) (.14) (.04) (.13) FROM NET REALIZED GAIN (5.84) (2.16) (.73) (3.60) (1.40) (.28) -- -- (.49) -- TOTAL DISTRIBUT IONS (6.13) (2.48) (.92) (3.72) (1.41) (.29) (.14) (.14) (.53) (.13) REDEMPTION FEES ADDED TO PAID IN CAPITAL .06 .05 .05 .07 .08 .20 .23 .15 .01 -- NET ASSET VALUE, END OF PERIOD $ 53.36 $ 46.00 $ 33.30 $ 23.92 $ 25.03 $ 22.18 $ 15.38 $ 10.84 $ 8.98 $ 10.88 TOTAL RETURNG,H 32.39% 47.50% 43.24% 12.43% 19.61% 46.43% 43.62% 22.88% (13.04)% 28.76% NET ASSETS, END OF PERIOD (000 OMITTED) $ 1,668,610 $ 1,176,828 $ 617,035 $ 229,924 $ 155,563 $ 337,903 $ 49,405 $ 8,782 $ 5,432 $ 5,557 RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.21% 1.38% 1.35% 1.47% 1.58% 1.55%A 2.08% 2.50%I 2.53%I 2.56%I RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.19%C 1.34%C 1.32%C 1.45%C 1.58% 1.55%A 2.08% 2.50% 2.53% 2.56% AFTER EXPENSE REDUCTIONS RATIO OF NET INVESTMENT INCOME .67% 1.41% 1.80% .80% .11% .61%A .40% 1.78% .83% 1.13% TO AVERAGE NET ASSETS PORTFOLIO TURNOVER RATE 54% 78% 81% 124% 95% 61%A 134% 159% 282% 216% AVERAGE COMMISSION RATEK $ .0382 $ .0417
INDUSTRIAL EQUIPMENT
SELECTED PER-SHARE DATA AND RATIOS YEARS ENDED FEBRUARY 28 1998 1997 1996F 1995 1994 1993D 1992E 1991E 1990E 1989E NET ASSET VALUE, BEGINNING OF PERIOD $ 25.51 $ 25.11 $ 20.04 $ 20.61 $ 15.04 $ 13.89 $ 11.60 $ 12.41 $ 11.05 $ 10.52 INCOME FROM INVESTMENT OPERATIONS NET INVESTMENT INCOME (LOSS)J (.08) .06 .04 .01 -- .02 (.07) .01 .13B (.07) NET REALIZED AND UNREALIZED GAIN (LOSS) 5.73 4.15 7.10 (.44) 5.92 1.09 2.39 (.80) 1.19 .60 TOTAL FROM INVESTMENT OPERATIONS 5.65 4.21 7.14 (.43) 5.92 1.11 2.32 (.79) 1.32 .53 LESS DISTRIBUTIONS FROM NET INVESTMENT INCOME (.02) (.04) (.05) (.01) (.01) -- -- -- -- -- IN EXCESS OF NET INVESTMENT INCOME -- -- -- -- -- -- (.11) (.09) -- -- FROM NET REALIZED GAIN (5.26) (3.84) (2.05) (.16) (.40) -- -- -- -- -- TOTAL DISTRIBUTIONS (5.28) (3.88) (2.10) (.17) (.41) -- (.11) (.09) -- -- REDEMPTION FEES ADDED TO PAID IN CAPITAL .03 .07 .03 .03 .06 .04 .08 .07 .04 -- NET ASSET VALUE, END OF PERIOD $ 25.91 $ 25.51 $ 25.11 $ 20.04 $ 20.61 $ 15.04 $ 13.89 $ 11.60 $ 12.41 $ 11.05 TOTAL RETURNG,H 25.76% 18.25% 36.86% (1.93)% 40.07% 8.28% 20.91% (5.90)% 12.31% 5.04% NET ASSETS, END OF PERIOD (000 OMITTED) $ 50,428 $ 102,882 $ 137,520 $ 109,968 $ 206,012 $ 14,601 $ 7,529 $ 1,949 $ 3,240 $ 2,965 RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.67% 1.51% 1.54% 1.80% 1.69% 2.49%A,I 2.49%I 2.52%I 2.59%I 2.58%I RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.60%C 1.44%C 1.53%C 1.78%C 1.68%C 2.49%A 2.49% 2.52% 2.59% 2.58% AFTER EXPENSE REDUCTIONS RATIO OF NET INVESTMENT INCOME (LOSS) (.32)% .25% .19% .06% .01% .15%A (.57)% .09% 1.06% (.66)% TO AVERAGE NET ASSETS PORTFOLIO TURNOVER RATE 115% 261% 115% 131% 95% 407%A 167% 43% 132% 164% AVERAGE COMMISSION RATEK $ .0386 $ .0401
A ANNUALIZED B INVESTMENT INCOME PER SHARE REFLECTS A SPECIAL DIVIDEND WHICH AMOUNTED TO $.11 PER SHARE. 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 TEN MONTHS ENDED FEBRUARY 28, 1993 E FOR THE YEARS ENDED APRIL 30 F FOR THE YEAR ENDED FEBRUARY 29 G TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. H THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. I 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. J NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. K FOR FISCAL YEARS BEGINNING ON OR AFTER SEPTEMBER 1, 1995, A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES MAY DIFFER. INDUSTRIAL MATERIALS
SELECTED PER-SHARE DATA AND RATIOS YEARS ENDED FEBRUARY 28 1998 1997 1996E 1995 1994 1993C 1992D 1991D 1990D 1989D NET ASSET VALUE, BEGINNING OF PERIOD $ 27.66 $ 26.07 $ 23.13 $ 21.67 $ 17.44 $ 17.12 $ 12.63 $ 12.43 $ 13.73 $ 13.15 INCOME FROM INVESTMENT OPERATIONS NET INVESTMENT INCOME (LOSS)I (.11) .06 .12 .17 .15 .12 .04 .15 .17 (.07) NET REALIZED AND UNREALIZED GAIN (LOSS) 1.43 3.12 2.92 1.43 4.07 .19 4.32 .37 (1.50) .86 TOTAL FROM INVESTMENT OPERATIONS 1.32 3.18 3.04 1.60 4.22 .31 4.36 .52 (1.33) .79 LESS DISTRIBUTIONS FROM NET INVESTMENT INCOME (.03) (.06) (.15) (.18) (.06) (.08) -- -- -- (.21) IN EXCESS OF NET INVESTMENT INCOME -- -- -- -- -- -- (.06) (.34) -- -- FROM NET REALIZED GAIN (4.00) (1.57) -- -- -- -- -- -- -- -- TOTAL DISTRIBUTIONS (4.03) (1.63) (.15) (.18) (.06) (.08) (.06) (.34) -- (.21) REDEMPTION FEES ADDED TO PAID IN CAPITAL .05 .04 .05 .04 .07 .09 .19 .02 .03 -- NET ASSET VALUE, END OF PERIOD $ 25.00 $ 27.66 $ 26.07 $ 23.13 $ 21.67 $ 17.44 $ 17.12 $ 12.63 $ 12.43 $ 13.73 TOTAL RETURNF,G 6.59% 12.69% 13.38% 7.65% 24.66% 2.36% 36.15% 4.25% (9.47)% 6.13% NET ASSETS, END OF PERIOD (000 OMITTED) $ 22,582 $ 66,462 $ 86,338 $ 183,454 $ 155,721 $ 25,041 $ 22,184 $ 2,689 $ 3,140 $ 8,571 RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.98% 1.54% 1.64% 1.56% 2.10% 2.02%A 2.47%H 2.49%H 2.59%H 2.68%H RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.94%B 1.51%B 1.61%B 1.53%B 2.08%B 2.02%A 2.47% 2.49% 2.59% 2.68% AFTER EXPENSE REDUCTIONS RATIO OF NET INVESTMENT INCOME (LOSS) (.42)% .23% .49% .77% .75% .86%A .25% 1.30% 1.22% (.54)% TO AVERAGE NET ASSETS PORTFOLIO TURNOVER RATE 118% 105% 138% 139% 185% 273%A 222% 148% 250% 289% AVERAGE COMMISSION RATEJ $ .0214 $ .0242
INSURANCE
SELECTED PER-SHARE DATA AND RATIOS YEARS ENDED FEBRUARY 28 1998 1997 1996E 1995 1994 1993C 1992D 1991D 1990D 1989D NET ASSET VALUE, BEGINNING OF PERIOD $ 32.62 $ 26.77 $ 21.31 $ 19.41 $ 21.58 $ 18.03 $ 16.73 $ 13.63 $ 12.65 $ 9.90 INCOME FROM INVESTMENT OPERATIONS NET INVESTMENT INCOME (LOSS)I .01 .01 .06 .05 -- (.04) .04 .23 .17 .11 NET REALIZED AND UNREALIZED GAIN (LOSS) 12.93 7.21 6.15 1.78 (.24) 5.12 1.48 2.83 .93 2.73 TOTAL FROM INVESTMENT OPERATIONS 12.94 7.22 6.21 1.83 (.24) 5.08 1.52 3.06 1.10 2.84 LESS DISTRIBUTIONS FROM NET INVESTMENT INCOME -- (.03) (.07) -- (.01) -- (.26) -- (.15) (.09) IN EXCESS OF NET INVESTMENT INCOME -- -- -- -- -- (.03) -- -- -- -- FROM NET REALIZED GAIN (3.54) (1.45) (.72) -- (1.96) (1.71) -- -- -- -- TOTAL DISTRIBUTIONS (3.54) (1.48) (.79) -- (1.97) (1.74) (.26) -- (.15) (.09) REDEMPTION FEES ADDED TO PAID IN CAPITAL .08 .11 .04 .07 .04 .21 .04 .04 .03 -- NET ASSET VALUE, END OF PERIOD $ 42.10 $ 32.62 $ 26.77 $ 21.31 $ 19.41 $ 21.58 $ 18.03 $ 16.73 $ 13.63 $ 12.65 TOTAL RETURNF,G 42.81% 28.28% 29.51% 9.79% (1.24)% 31.98% 9.47% 22.74% 8.82% 28.83% NET ASSETS, END OF PERIOD (000 OMITTED) $ 125,151 $ 42,367 $ 38,994 $ 21,838 $ 18,419 $ 26,367 $ 2,573 $ 2,176 $ 2,240 $ 3,160 RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.45% 1.82% 1.77% 2.36% 1.93% 2.49%A,H 2.47%H 2.49%H 2.50%H 2.53%H RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.43%B 1.77%B 1.74%B 2.34%B 1.93% 2.49%A 2.47% 2.49% 2.50% 2.53% AFTER EXPENSE REDUCTIONS RATIO OF NET INVESTMENT INCOME (LOSS) .02% .05% .26% .25% (.02)% (.26)%A .22% 1.58% 1.15% .98% TO AVERAGE NET ASSETS PORTFOLIO TURNOVER RATE 157% 142% 164% 265% 101% 81%A 112% 98% 158% 95% AVERAGE COMMISSION RATEJ $ .0325 $ .0261
A ANNUALIZED B FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. C FOR THE TEN MONTHS ENDED FEBRUARY 28, 1993 D FOR THE YEARS ENDED APRIL 30 E FOR THE YEAR ENDED FEBRUARY 29 F TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. G THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. H 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. I NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. J FOR FISCAL YEARS BEGINNING ON OR AFTER SEPTEMBER 1, 1995, A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES MAY DIFFER. LEISURE
SELECTED PER-SHARE DATA AND RATIOS YEARS ENDED FEBRUARY 28 1998 1997 1996H 1995 1994 1993B 1992C 1991C 1990C 1989C NET ASSET VALUE, BEGINNING OF PERIOD $ 47.83 $ 46.17 $ 40.71 $ 45.30 $ 35.77 $ 31.65 $ 26.32 $ 24.90 $ 28.51 $ 22.38 INCOME FROM INVESTMENT OPERATIONS NET INVESTMENT INCOME (LOSS)J (.25) (.06)L (.21) (.21) (.29) (.11) (.08) .08 .26G .12 NET REALIZED AND UNREALIZED GAIN (LOSS) 21.10 4.47 10.97 (.48) 12.98 4.21 5.40 1.55 (1.81) 6.41 TOTAL FROM INVESTMENT OPERATIONS 20.85 4.41 10.76 (.69) 12.69 4.10 5.32 1.63 (1.55) 6.53 LESS DISTRIBUTIONS FROM NET INVESTMENT INCOME -- -- -- -- -- -- -- (.23) (.07) -- FROM NET REALIZED GAIN (6.46) (2.83) (5.32) (3.93) (3.26) -- -- -- (2.03) (.40) TOTAL DISTRIBUTIONS (6.46) (2.83) (5.32) (3.93) (3.26) -- -- (.23) (2.10) (.40) REDEMPTION FEES ADDED TO PAID IN CAPITAL .08 .08 .02 .03 .10 .02 .01 .02 .04 -- NET ASSET VALUE, END OF PERIOD $ 62.30 $ 47.83 $ 46.17 $ 40.71 $ 45.30 $ 35.77 $ 31.65 $ 26.32 $ 24.90 $ 28.51 TOTAL RETURNE,F 47.29% 10.14% 27.61% (1.07)% 37.14% 13.02% 20.25% 6.78% (6.33)% 29.65% NET ASSETS, END OF PERIOD (000 OMITTED) $ 257,199 $ 98,133 $ 85,013 $ 69,569 $ 105,833 $ 44,824 $ 40,051 $ 40,727 $ 49,609 $ 91,367 RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.44% 1.56% 1.64% 1.64% 1.55% 1.90%A 2.21% 2.27% 1.96% 1.73% RATIO OF EXPENSES TO AVERAGE NET 1.39%D 1.54%D 1.63%D 1.62%D 1.53%D 1.90%A 2.21% 2.27% 1.96% 1.73% ASSETS AFTER EXPENSE REDUCTIONS RATIO OF NET INVESTMENT INCOME (LOSS) (.46)% (.12)% (.46)% (.52)% (.69)% (.39)%A (.28)% .34% .86% .50% TO AVERAGE NET ASSETS PORTFOLIO TURNOVER RATE 209% 127% 141% 103% 170% 109%A 45% 75% 124% 249% AVERAGE COMMISSION RATEK $ .0396 $ .0370
MEDICAL DELIVERY
SELECTED PER-SHARE DATA AND RATIOS YEARS ENDED FEBRUARY 28 1998 1997 1996H 1995 1994 1993B 1992C 1991C 1990C 1989C NET ASSET VALUE, BEGINNING OF PERIOD $ 28.29 $ 29.00 $ 23.18 $ 20.28 $ 14.46 $ 19.64 $ 18.75 $ 11.17 $ 9.85 $ 7.42 INCOME FROM INVESTMENT OPERATIONS NET INVESTMENT INCOME (LOSS)J (.24) (.23) (.03) .06 (.10) (.13) (.15) (.01) .16 .05 NET REALIZED AND UNREALIZED GAIN (LOSS) 5.45 2.92 7.72 3.74 5.84 (3.56) 2.16 7.76 1.43 2.38 TOTAL FROM INVESTMENT OPERATIONS 5.21 2.69 7.69 3.80 5.74 (3.69) 2.01 7.75 1.59 2.43 LESS DISTRIBUTIONS FROM NET INVESTMENT INCOME -- -- -- (.06) -- -- -- -- (.05) -- FROM NET REALIZED GAIN (5.23) (3.45) (1.91) (.89) -- (1.55) (1.24) (.39) (.26) -- TOTAL DISTRIBUTIONS (5.23) (3.45) (1.91) (.95) -- (1.55) (1.24) (.39) (.31) -- REDEMPTION FEES ADDED TO PAID IN CAPITAL .05 .05 .04 .05 .08 .06 .12 .22 .04 -- NET ASSET VALUE, END OF PERIOD $ 28.32 $ 28.29 $ 29.00 $ 23.18 $ 20.28 $ 14.46 $ 19.64 $ 18.75 $ 11.17 $ 9.85 TOTAL RETURNE,F 21.97% 10.50% 34.15% 19.63% 40.25% (19.63)% 11.71% 72.85% 16.35% 32.75% NET ASSETS, END OF PERIOD (000 OMITTED) $ 155,542 $ 192,385 $ 295,489 $ 299,570 $ 188,553 $ 71,809 $ 129,361 $ 131,622 $ 23,559 $ 20,077 RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.57% 1.57% 1.65% 1.48% 1.82% 1.77%A 1.69% 1.94% 2.16% 2.48%I RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.53%D 1.53%D 1.62%D 1.45%D 1.79%D 1.77%A 1.69% 1.94% 2.16% 2.48% AFTER EXPENSE REDUCTIONS RATIO OF NET INVESTMENT INCOME (LOSS) (.88)% (.84)% (.13)% .29% (.57)% (.89)%A (.71)% (.07)% 1.43% .59% TO AVERAGE NET ASSETS PORTFOLIO TURNOVER RATE 109% 78% 132% 123% 164% 155%A 181% 165% 253% 92% AVERAGE COMMISSION RATEK $ .0422 $ .0434
A ANNUALIZED B FOR THE TEN MONTHS ENDED FEBRUARY 28, 1993 C FOR THE YEARS ENDED APRIL 30 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 TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. F THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. G INVESTMENT INCOME PER SHARE REFLECTS A SPECIAL DIVIDEND WHICH AMOUNTED TO $.16 PER SHARE. H FOR THE YEARS ENDED FEBRUARY 29 I 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. J NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. K FOR FISCAL YEARS BEGINNING ON OR AFTER SEPTEMBER 1, 1995, A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES MAY DIFFER. L INVESTMENT INCOME (LOSS) PER SHARE REFLECTS A SPECIAL DIVIDEND WHICH AMOUNTED TO $.23 PER SHARE. MULTIMEDIA
SELECTED PER-SHARE DATA AND RATIOS YEARS ENDED FEBRUARY 28 1998 1997 1996J 1995 1994 1993C 1992D 1991D 1990D 1989D NET ASSET VALUE, BEGINNING OF PERIOD $ 24.91 $ 27.18 $ 22.35 $ 23.87 $ 18.26 $ 15.93 $ 12.96 $ 11.65 $ 16.20 $ 12.45 INCOME FROM INVESTMENT OPERATIONS NET INVESTMENT INCOME (LOSS)K (.17) .35L .02 (.01) (.10) (.07) (.17) (.05) (.02)H (.14) NET REALIZED AND UNREALIZED GAIN (LOSS) 10.30 (1.58) 7.00 1.67 6.28 2.61 3.08 1.29 (1.96) 4.64 TOTAL FROM INVESTMENT OPERATIONS 10.13 (1.23) 7.02 1.66 6.18 2.54 2.91 1.24 (1.98) 4.50 LESS DISTRIBUTIONS FROM NET INVESTMENT INCOME -- -- (.02) -- -- -- -- -- -- -- FROM NET REALIZED GAIN (1.52) (1.07) (2.19) (3.21) (.65) (.23) -- -- (2.57) (.75) TOTAL DISTRIBUTIONS (1.52) (1.07) (2.21) (3.21) (.65) (.23) -- -- (2.57) (.75) REDEMPTION FEES ADDED TO PAID IN CAPITAL .06 .03 .02 .03 .08 .02 .06 .07 -- -- NET ASSET VALUE, END OF PERIOD $ 33.58 $ 24.91 $ 27.18 $ 22.35 $ 23.87 $ 18.26 $ 15.93 $ 12.96 $ 11.65 $ 16.20 TOTAL RETURNF, G 42.42% (4.52)% 31.98% 9.35% 34.86% 16.14% 22.92% 11.24% (15.32)% 38.22% NET ASSETS, END OF PERIOD (000 OMITTED) $ 115,485 $ 54,171 $ 94,970 $ 38,157 $ 49,177 $ 16,647 $ 8,393 $ 5,177 $ 7,400 $ 45,670 RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.75% 1.60% 1.56% 2.05% 1.66% 2.49%A,I 2.49%I 2.53%I 2.51%I 2.66%I RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.71%E 1.56%E 1.54%E 2.03%E 1.63%E 2.49%A 2.49% 2.53% 2.51% 2.66% AFTER EXPENSE REDUCTIONS RATIO OF NET INVESTMENT INCOME (LOSS) (.59)% 1.33% .08% (.07)% (.42)% (.52)%A (1.22)% (.43)% (.14)% (1.01)% TO AVERAGE NET ASSETS PORTFOLIO TURNOVER RATE 219% 99% 223% 107% 340% 70%A 111% 150% 75% 437% AVERAGE COMMISSION RATEM $ .0363 $ .0400
NATURAL GAS
SELECTED PER-SHARE DATA AND RATIOS YEARS ENDED FEBRUARY 28 1998 1997 1996J 1995 1994B NET ASSET VALUE, BEGINNING OF PERIOD $ 12.50 $ 11.36 $ 8.98 $ 9.48 $ 10.00 INCOME FROM INVESTMENT OPERATIONS NET INVESTMENT INCOME (LOSS)K (.05) (.06) .05 .03 .02 NET REALIZED AND UNREALIZED GAIN (LOSS) 1.06 1.30N 2.36 (.53) (.46) TOTAL FROM INVESTMENT OPERATIONS 1.01 1.24 2.41 (.50) (.44) LESS DISTRIBUTIONS FROM NET INVESTMENT INCOME -- (.01) (.05) (.02) -- FROM NET REALIZED GAIN (.30) (.29) -- -- (.07) IN EXCESS OF NET REALIZED GAIN (.03) -- -- -- (.06) TOTAL DISTRIBUTIONS (.33) (.30) (.05) (.02) (.13) REDEMPTION FEES ADDED TO PAID IN CAPITAL .04 .20 .02 .02 .05 NET ASSET VALUE, END OF PERIOD $ 13.22 $ 12.50 $ 11.36 $ 8.98 $ 9.48 TOTAL RETURNF,G 8.74% 12.45% 27.10% (5.06)% (3.84)% NET ASSETS, END OF PERIOD (000 OMITTED) $ 59,866 $ 81,566 $ 60,228 $ 79,894 $ 63,073 RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.82% 1.70% 1.68% 1.70% 1.94%A RATIO OF EXPENSES TO AVERAGE NET ASSETS AFTER EXPENSE REDUCTIONS 1.78%E 1.66%E 1.67%E 1.66%E 1.93%A,E RATIO OF NET INVESTMENT INCOME (LOSS) TO AVERAGE NET ASSETS (.37)% (.46)% .46% .30% .17%A PORTFOLIO TURNOVER RATE 118% 283% 79% 177% 44%A AVERAGE COMMISSION RATEM $ .0285 $ .0361
A ANNUALIZED B FROM APRIL 21, 1993 (COMMENCEMENT OF OPERATIONS) TO FEBRUARY 28, 1994 C FOR THE TEN MONTHS ENDED FEBRUARY 28, 1993 D FOR THE YEARS ENDED APRIL 30 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 TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. G THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. H INVESTMENT INCOME (LOSS) PER SHARE REFLECTS A SPECIAL DIVIDEND WHICH AMOUNTED TO $.05 PER SHARE. I 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. J FOR THE YEAR ENDED FEBRUARY 29 K NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. L INVESTMENT INCOME (LOSS) PER SHARE REFLECTS A SPECIAL DIVIDEND WHICH AMOUNTED TO $.49 PER SHARE. M FOR FISCAL YEARS BEGINNING ON OR AFTER SEPTEMBER 1, 1995, A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES MAY DIFFER. N THE AMOUNT SHOWN FOR A SHARE OUTSTANDING DOES NOT CORRESPOND WITH THE AGGREGATE NET LOSS ON INVESTMENTS FOR THE PERIOD DUE TO THE TIMING OF SALES AND REPURCHASES OF FUND SHARES IN RELATION TO FLUCTUATING MARKET VALUES OF THE INVESTMENTS OF THE FUND. NATURAL RESOURCES
SELECTED PER-SHARE DATA AND RATIOS YEAR ENDED FEBRUARY 28 1998E NET ASSET VALUE, BEGINNING OF PERIOD $ 10.00 INCOME FROM INVESTMENT OPERATIONS NET INVESTMENT INCOME (LOSS)D (.09) NET REALIZED AND UNREALIZED GAIN .76 TOTAL FROM INVESTMENT OPERATIONS .67 LESS DISTRIBUTIONS FROM NET REALIZED GAIN (.26) REDEMPTION FEES ADDED TO PAID IN CAPITAL .05 NET ASSET VALUE, END OF PERIOD $ 10.46 TOTAL RETURNB,C 7.30% NET ASSETS, END OF PERIOD (000 OMITTED) $ 7,520 RATIO OF EXPENSES TO AVERAGE NET ASSETS 2.50%A,I RATIO OF EXPENSES TO AVERAGE NET ASSETS AFTER EXPENSE REDUCTIONS 2.48%A,J RATIO OF NET INVESTMENT INCOME (LOSS) TO AVERAGE NET ASSETS (.86)%A PORTFOLIO TURNOVER RATE 165%A AVERAGE COMMISSION RATEK $ .0111
PAPER AND FOREST PRODUCTS
SELECTED PER-SHARE DATA AND RATIOS YEARS ENDED FEBRUARY 28 1998 1997 1996G 1995 1994 1993H 1992F 1991F 1990F 1989F NET ASSET VALUE, BEGINNING OF PERIOD $ 21.63 $ 20.78 $ 21.14 $ 19.61 $ 16.08 $ 15.37 $ 12.64 $ 11.00 $ 12.33 $ 11.71 INCOME FROM INVESTMENT OPERATIONS NET INVESTMENT INCOME (LOSS)D (.12) .01 .08 .01 (.01) .06 .13 .19 .11 .01 NET REALIZED AND UNREALIZED GAIN (LOSS) 3.13 2.08 1.83 2.53 3.38 .65 2.64 1.56 (1.31) .64 TOTAL FROM INVESTMENT OPERATIONS 3.01 2.09 1.91 2.54 3.37 .71 2.77 1.75 (1.20) .65 LESS DISTRIBUTIONS FROM NET INVESTMENT INCOME -- (.03) (.08) -- (.01) (.09) (.30) (.17) (.15) (.03) IN EXCESS OF NET INVESTMENT INCOME (.04) (.07) -- -- -- -- -- -- -- -- FROM NET REALIZED GAIN (2.07) (1.25) (2.27) (1.17) -- -- -- -- -- -- TOTAL DISTRIBUTIONS (2.11) (1.35) (2.35) (1.17) (.01) (.09) (.30) (.17) (.15) (.03) REDEMPTION FEES ADDED TO PAID IN CAPITAL .13 .11 .08 .16 .17 .09 .26 .06 .02 -- NET ASSET VALUE, END OF PERIOD $ 22.66 $ 21.63 $ 20.78 $ 21.14 $ 19.61 $ 16.08 $ 15.37 $ 12.64 $ 11.00 $ 12.33 TOTAL RETURNB,C 15.53% 10.87% 9.18% 14.91% 22.03% 5.25% 24.52% 16.85% (9.68)% 5.57% NET ASSETS, END OF PERIOD (000 OMITTED) $ 31,384 $ 19,484 $ 27,270 $ 94,219 $ 66,908 $ 25,098 $ 28,957 $ 12,579 $ 5,289 $ 9,479 RATIO OF EXPENSES TO AVERAGE NET ASSETS 2.18% 2.19% 1.91% 1.88% 2.08% 2.21%A 2.05% 2.49%I 2.57%I 2.54%I RATIO OF EXPENSES TO AVERAGE NET ASSETS 2.15%J 2.16%J 1.90%J 1.87%J 2.07%J 2.21%A 2.05% 2.49% 2.57% 2.54% AFTER EXPENSE REDUCTIONS RATIO OF NET INVESTMENT INCOME (LOSS) (.50)% .04% .34% .05% (.08)% .49%A .92% 1.73% .92% .07% TO AVERAGE NET ASSETS PORTFOLIO TURNOVER RATE 235% 180% 78% 209% 176% 222%A 421% 171% 221% 154% AVERAGE COMMISSION RATEK $ .0320 $ .0306
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 FOR THE YEARS ENDED APRIL 30 G FOR THE YEAR ENDED FEBRUARY 29 H FOR THE TEN MONTHS ENDED FEBRUARY 28, 1993 I 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. J FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. K FOR FISCAL YEARS BEGINNING ON OR AFTER SEPTEMBER 1, 1995, A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES MAY DIFFER. PRECIOUS METALS AND MINERALS
SELECTED PER-SHARE DATA AND RATIOS YEARS ENDED FEBRUARY 28 1998 1997 1996I 1995 1994 1993C 1992E 1991E 1990E 1989E NET ASSET VALUE, BEGINNING OF PERIOD $ 19.60 $ 20.96 $ 15.27 $ 16.62 $ 9.86 $ 9.90 $ 10.68 $ 12.23 $ 11.35 $ 13.09 INCOME FROM INVESTMENT OPERATIONS NET INVESTMENT INCOME (LOSS)F (.04) (.01) .07 .17 .21 .09 .10 .18 .13 .26 NET REALIZED AND UNREALIZED GAIN (LOSS) (9.42) (1.42) 5.54 (1.42) 6.48 (.05) (.91) (1.71) .84 (1.54) TOTAL FROM INVESTMENT OPERATIONS (9.46) (1.43) 5.61 (1.25) 6.69 .04 (.81) (1.53) .97 (1.28) LESS DISTRIBUTIONS FROM NET INVESTMENT INCOME -- (.04) (.06) (.18) (.19) (.17) (.10) (.15) (.18) (.46) IN EXCESS OF NET INVESTMENT INCOME -- (.01) -- (.05) (.02) -- -- -- -- -- TOTAL DISTRIBUTIONS -- (.05) (.06) (.23) (.21) (.17) (.10) (.15) (.18) (.46) REDEMPTION FEES ADDED TO PAID IN CAPITAL .14 .12 .14 .13 .28 .09 .13 .13 .09 -- NET ASSET VALUE, END OF PERIOD $ 10.28 $ 19.60 $ 20.96 $ 15.27 $ 16.62 $ 9.86 $ 9.90 $ 10.68 $ 12.23 $ 11.35 TOTAL RETURNA,B (47.55)% (6.26)% 37.74% (6.86)% 70.58% 1.51% (6.46)% (11.45)% 9.08% (9.63)% NET ASSETS, END OF PERIOD (000 OMITTED) $ 165,960 $ 325,586 $ 467,196 $ 364,204 $ 409,212 $ 137,922 $ 130,002 $ 155,367 $ 192,551 $ 180,837 RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.82% 1.62% 1.52% 1.46% 1.55% 1.73%J 1.81% 1.79% 1.93% 1.88% RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.76%G 1.61%G 1.52% 1.46% 1.55% 1.73%J 1.81% 1.79% 1.93% 1.88% AFTER EXPENSE REDUCTIONS RATIO OF NET INVESTMENT INCOME (LOSS) (.26)% (.05)% .39% .99% 1.38% 1.12%J .92% 1.52% 1.01% 2.18% TO AVERAGE NET ASSETS PORTFOLIO TURNOVER RATE 84% 54% 53% 43% 73% 36%J 44% 41% 98% 72% AVERAGE COMMISSION RATEH $ .0096 $ .0141
REGIONAL BANKS
SELECTED PER-SHARE DATA AND RATIOS YEARS ENDED FEBRUARY 28 1998 1997 1996I 1995 1994 1993C 1992E 1991E 1990E 1989E NET ASSET VALUE, BEGINNING OF PERIOD $ 32.82 $ 24.37 $ 18.01 $ 17.99 $ 20.88 $ 16.48 $ 11.40 $ 9.77 $ 11.33 $ 8.94 INCOME FROM INVESTMENT OPERATIONS NET INVESTMENT INCOMEF .40 .37 .52 .37 .19 .16 .25 .22 .21 .22 NET REALIZED AND UNREALIZED GAIN (LOSS) 11.41 9.70 6.78 .87 .93 5.09 5.37 1.41 (1.03) 2.84 TOTAL FROM INVESTMENT OPERATIONS 11.81 10.07 7.30 1.24 1.12 5.25 5.62 1.63 (.82) 3.06 LESS DISTRIBUTIONS FROM NET INVESTMENT INCOME (.28) (.27) (.25) (.29) (.15) (.11) (.15) (.15) (.11) (.20) FROM NET REALIZED GAIN (1.23) (1.40) (.72) (.98) (3.92) (.81) (.53) - (.65) (.47) TOTAL DISTRIBUTIONS (1.51) (1.67) (.97) (1.27) (4.07) (.92) (.68) (.15) (.76) (.67) REDEMPTION FEES ADDED TO PAID IN CAPITAL .06 .05 .03 .05 .06 .07 .14 .15 .02 -- NET ASSET VALUE, END OF PERIOD $ 43.18 $ 32.82 $ 24.37 $ 18.01 $ 17.99 $ 20.88 $ 16.48 $ 11.40 $ 9.77 $ 11.33 TOTAL RETURNA,B 36.64% 43.33% 40.94% 7.79% 6.46% 33.10% 52.34% 18.73% (7.94)% 35.71% NET ASSETS, END OF PERIOD (000 OMITTED) $ 1,338,896 $ 837,952 $ 315,178 $ 164,603 $ 97,429 $ 315,520 $ 156,570 $ 24,212 $ 5,410 $ 17,961 RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.25% 1.46% 1.41% 1.58% 1.62% 1.49%J 1.77% 2.51%D 2.55%D 2.53%D RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.24%G 1.45%G 1.40%G 1.56%G 1.60%G 1.49%J 1.77% 2.51% 2.55% 2.53% AFTER EXPENSE REDUCTIONS RATIO OF NET INVESTMENT INCOME 1.07% 1.36% 2.42% 1.99% .88% 1.06%J 1.80% 2.34% 1.74% 2.24% TO AVERAGE NET ASSETS PORTFOLIO TURNOVER RATE 25% 43% 103% 106% 74% 63%J 89% 110% 411% 352% AVERAGE COMMISSION RATEH $ .0400 $ .0384
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 AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. C FOR THE TEN MONTHS ENDED FEBRUARY 28, 1993 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 FOR THE YEARS ENDED APRIL 30 F NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. 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 FISCAL YEARS BEGINNING ON OR AFTER SEPTEMBER 1, 1995, A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES MAY DIFFER. I FOR THE YEAR ENDED FEBRUARY 29 J ANNUALIZED RETAILING
SELECTED PER-SHARE DATA AND RATIOS YEARS ENDED FEBRUARY 28 1998 1997 1996B 1995 1994 1993C 1992D 1991D 1990D 1989D NET ASSET VALUE, BEGINNING OF PERIOD $ 33.25 $ 27.87 $ 23.91 $ 24.91 $ 23.87 $ 22.13 $ 17.42 $ 13.94 $ 14.60 $ 11.57 INCOME FROM INVESTMENT OPERATIONS NET INVESTMENT INCOME (LOSS)H (.27) (.13) (.14) (.18) (.22) (.08) (.03) (.05) .32I .06 NET REALIZED AND UNREALIZED GAIN (LOSS) 17.14 5.49 4.07 (.96) 3.85 2.93 5.09 3.43 1.72 3.18 TOTAL FROM INVESTMENT OPERATIONS 16.87 5.36 3.93 (1.14) 3.63 2.85 5.06 3.38 2.04 3.24 LESS DISTRIBUTIONS FROM NET INVESTMENT INCOME -- -- -- -- -- -- -- -- (.16) (.03) FROM NET REALIZED GAIN (.51) (.08) -- -- (2.63) (1.17) (.50) (.03) (2.57) (.18) TOTAL DISTRIBUTIONS (.51) (.08) -- -- (2.63) (1.17) (.50) (.03) (2.73) (.21) REDEMPTION FEES ADDED TO PAID IN CAPITAL .43 .10 .03 .14 .04 .06 .15 .13 .03 -- NET ASSET VALUE, END OF PERIOD $ 50.04 $ 33.25 $ 27.87 $ 23.91 $ 24.91 $ 23.87 $ 22.13 $ 17.42 $ 13.94 $ 14.60 TOTAL RETURNF, G 52.61% 19.59% 16.56% (4.01)% 15.61% 13.72% 30.28% 25.26% 15.01% 28.32% NET ASSETS, END OF PERIOD (000 OMITTED) $ 192,861 $ 59,348 $ 44,051 $ 31,090 $ 52,790 $ 74,878 $ 48,441 $ 18,069 $ 8,451 $ 9,149 RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.63% 1.45% 1.94% 2.07% 1.86% 1.77%A 1.87% 2.54%J 2.50%J 2.51%J RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.55%E 1.39%E 1.92%E 1.96%E 1.83%E 1.77%A 1.87% 2.54% 2.50% 2.51% AFTER EXPENSE REDUCTIONS RATIO OF NET INVESTMENT INCOME (LOSS) (.67)% (.39)% (.53)% (.74)% (.87)% (.44)%A (.13)% (.34)% 2.13% .48% TO AVERAGE NET ASSETS PORTFOLIO TURNOVER RATE 308% 278% 235% 481% 154% 171%A 205% 115% 212% 290% AVERAGE COMMISSION RATEK $ .0405 $ .0403
SOFTWARE AND COMPUTER SERVICES
SELECTED PER-SHARE DATA AND RATIOS YEARS ENDED FEBRUARY 28 1998 1997 1996B 1995 1994 1993C 1992D 1991D 1990D 1989D NET ASSET VALUE, BEGINNING OF PERIOD $ 38.58 $ 36.20 $ 29.07 $ 28.89 $ 27.62 $ 21.63 $ 19.77 $ 15.58 $ 15.75 $ 14.36 INCOME FROM INVESTMENT OPERATIONS NET INVESTMENT INCOME (LOSS)H (.33) (.25) (.19) (.26) (.34) (.07)L (.28) (.14)M (.20) (.22) NET REALIZED AND UNREALIZED GAIN (LOSS) 12.57 5.87 11.85 .67 7.92 5.88 4.37 4.06 .82 1.61 TOTAL FROM INVESTMENT OPERATIONS 12.24 5.62 11.66 .41 7.58 5.81 4.09 3.92 .62 1.39 LESS DISTRIBUTIONS FROM NET REALIZED GAIN (6.61) (3.31) (4.60) (.33) (6.48) -- (2.50) -- (.86) -- REDEMPTION FEES ADDED TO PAID IN CAPITAL .05 .07 .07 .10 .17 .18 .27 .27 .07 -- NET ASSET VALUE, END OF PERIOD $ 44.26 $ 38.58 $ 36.20 $ 29.07 $ 28.89 $ 27.62 $ 21.63 $ 19.77 $ 15.58 $ 15.75 TOTAL RETURNF,G 35.50% 16.14% 40.17% 1.97% 33.19% 27.69% 25.36% 26.89% 4.64% 9.68% NET ASSETS, END OF PERIOD (000 OMITTED) $ 503,367 $ 389,699 $ 337,633 $ 236,445 $ 178,034 $ 151,212 $ 89,571 $ 17,290 $ 10,539 $ 14,046 RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.44% 1.54% 1.48% 1.52% 1.57% 1.64%A 1.98% 2.50%J 2.56%J 2.63%J RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.42%E 1.51%E 1.47%E 1.50%E 1.57% 1.64%A 1.98% 2.50% 2.56% 2.63% AFTER EXPENSE REDUCTIONS RATIO OF NET INVESTMENT INCOME (LOSS) (.81)% (.66)% (.54)% (1.01)% (1.19)% (.37)%A (1.30)% (.84)% (1.30)% (1.51)% TO AVERAGE NET ASSETS PORTFOLIO TURNOVER RATE 145% 279% 183% 164% 376% 402%A 348% 326% 284% 434% AVERAGE COMMISSION RATEK $ .0366 $ .0427
A ANNUALIZED B FOR THE YEAR ENDED FEBRUARY 29 C FOR THE TEN MONTHS ENDED FEBRUARY 28, 1993 D FOR THE YEARS ENDED APRIL 30 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 TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. G THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. H NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. I INVESTMENT INCOME PER SHARE REFLECTS A SPECIAL DIVIDEND WHICH AMOUNTED TO $.29 PER SHARE. J 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. K FOR FISCAL YEARS BEGINNING ON OR AFTER SEPTEMBER 1, 1995, A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES MAY DIFFER. L INVESTMENT INCOME (LOSS) PER SHARE REFLECTS A DIVIDEND RECEIVED IN ARREARS WHICH AMOUNTED TO $.03 PER SHARE. M INVESTMENT INCOME (LOSS) PER SHARE REFLECTS A SPECIAL DIVIDEND WHICH AMOUNTED TO $.02 PER SHARE. TECHNOLOGY
SELECTED PER-SHARE DATA AND RATIOS YEARS ENDED FEBRUARY 28 1998 1997 1996I 1995 1994 1993C 1992D 1991D 1990D 1989D NET ASSET VALUE, BEGINNING OF PERIOD $ 57.70 $ 54.67 $ 42.05 $ 41.83 $ 34.62 $ 32.44 $ 27.06 $ 20.08 $ 18.37 $ 18.22 INCOME FROM INVESTMENT OPERATIONS NET INVESTMENT INCOME (LOSS)H (.25) (.39) (.28) (.39) (.24)K .13L (.26) .14J (.15) (.12) NET REALIZED AND UNREALIZED GAIN (LOSS) 11.29 6.95 20.83 1.95 11.04 4.68 5.56 6.46 1.75 .27 TOTAL FROM INVESTMENT OPERATIONS 11.04 6.56 20.55 1.56 10.80 4.81 5.30 6.60 1.60 .15 LESS DISTRIBUTIONS FROM NET INVESTMENT INCOME -- -- -- -- (.13) -- -- -- -- -- IN EXCESS OF NET INVESTMENT INCOME -- -- -- -- -- -- (.16) -- -- -- FROM NET REALIZED GAIN (12.39) (3.68) (8.05) (1.50) (3.70) (2.75) -- -- -- -- IN EXCESS OF NET REALIZED GAIN (3.30) -- -- -- -- -- -- -- -- -- TOTAL DISTRIBUTIONS (15.69) (3.68) (8.05) (1.50) (3.83) (2.75) (.16) -- -- -- REDEMPTION FEES ADDED TO PAID IN CAPITAL .08 .15 .12 .16 .24 .12 .24 .38 .11 -- NET ASSET VALUE, END OF PERIOD $ 53.13 $ 57.70 $ 54.67 $ 42.05 $ 41.83 $ 34.62 $ 32.44 $ 27.06 $ 20.08 $ 18.37 TOTAL RETURNF, G 24.92% 12.64% 50.71% 4.61% 35.62% 16.48% 20.57% 34.76% 9.31% .82% NET ASSETS, END OF PERIOD (000 OMITTED) $ 691,924 $ 478,444 $ 483,026 $ 229,761 $ 202,475 $ 132,689 $ 105,954 $ 117,055 $ 78,535 $ 105,604 RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.38% 1.49% 1.40% 1.57% 1.55% 1.64%A 1.72% 1.83% 2.09% 1.86% RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.30%E 1.44%E 1.39%E 1.56%E 1.54%E 1.64%A 1.72% 1.83% 2.09% 1.86% AFTER EXPENSE REDUCTIONS RATIO OF NET INVESTMENT INCOME (LOSS) (.45)% (.72)% (.52)% (.98)% (.65)% .52%A (.84)% .61% (.76)% (.67)% TO AVERAGE NET ASSETS PORTFOLIO TURNOVER RATE 556% 549% 112% 102% 213% 259%A 353% 442% 327% 397% AVERAGE COMMISSION RATEM $ .0436 $ .0191
TELECOMMUNICATIONS
SELECTED PER-SHARE DATA AND RATIOS YEARS ENDED FEBRUARY 28 1998 1997 1996I 1995 1994 1993C 1992D 1991D 1990D 1989D NET ASSET VALUE, BEGINNING OF PERIOD $ 41.80 $ 44.87 $ 38.34 $ 37.10 $ 34.19 $ 29.22 $ 24.98 $ 23.19 $ 22.76 $ 16.52 INCOME FROM INVESTMENT OPERATIONS NET INVESTMENT INCOME (LOSS)H (.25) .12B .51 .29 .25 .29 .36 .31 .46 .30 NET REALIZED AND UNREALIZED GAIN (LOSS) 18.20 2.92 9.15 2.54 7.00 5.29 4.13 1.86 1.02 6.09 TOTAL FROM INVESTMENT OPERATIONS 17.95 3.04 9.66 2.83 7.25 5.58 4.49 2.17 1.48 6.39 LESS DISTRIBUTIONS FROM NET INVESTMENT INCOME -- (.16)N (.39) (.33) (.20) (.18) (.28) (.43) (.12) (.12) FROM NET REALIZED GAIN (6.44) (5.98)N (2.75) (1.27) (4.18) (.48) -- -- (.98) (.03) TOTAL DISTRIBUTIONS (6.44) (6.14) (3.14) (1.60) (4.38) (.66) (.28) (.43) (1.10) (.15) REDEMPTION FEES ADDED TO PAID IN CAPITAL .06 .03 .01 .01 .04 .05 .03 .05 .05 -- NET ASSET VALUE, END OF PERIOD $ 53.37 $ 41.80 $ 44.87 $ 38.34 $ 37.10 $ 34.19 $ 29.22 $ 24.98 $ 23.19 $ 22.76 TOTAL RETURNF,G 46.52% 7.85% 25.79% 7.98% 21.90% 19.49% 18.19% 9.83% 6.21% 38.90% NET ASSETS, END OF PERIOD (000 OMITTED) $ 643,449 $ 388,535 $ 468,300 $ 369,476 $ 371,025 $ 134,338 $ 78,533 $ 55,162 $ 77,019 $ 116,016 RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.51% 1.51% 1.52% 1.56% 1.54% 1.74%A 1.90% 1.97% 1.85% 2.12% RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.48%E 1.47%E 1.52% 1.55%E 1.53%E 1.74%A 1.90% 1.97% 1.85% 2.12% AFTER EXPENSE REDUCTIONS RATIO OF NET INVESTMENT INCOME (LOSS) (.53)% .27% 1.17% .77% .64% 1.16%A 1.32% 1.35% 1.83% 1.63% TO AVERAGE NET ASSETS PORTFOLIO TURNOVER RATE 157% 175% 89% 107% 241% 115%A 20% 262% 341% 224% AVERAGE COMMISSION RATEM $ .0065 $ .0321
A ANNUALIZED B INVESTMENT INCOME PER SHARE REFLECTS A SPECIAL DIVIDEND FROM ADVO, INC. WHICH AMOUNTED TO $.07 PER SHARE. C FOR THE TEN MONTHS ENDED FEBRUARY 28, 1993 D FOR THE YEARS ENDED APRIL 30 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 TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. G THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. H NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. I FOR THE YEAR ENDED FEBRUARY 29 J INVESTMENT INCOME (LOSS) PER SHARE REFLECTS A SPECIAL DIVIDEND WHICH AMOUNTED TO $.06 PER SHARE AND $.20 PER SHARE RELATING TO A NONRECURRING INITIATIVE TO INVEST IN DIVIDEND INCOME PRODUCING SECURITIES WHICH WAS IN EFFECT FOR A PORTION OF 1991. K INVESTMENT INCOME (LOSS) PER SHARE REFLECTS A DIVIDEND RECEIVED IN AREAS WHICH AMOUNTED TO $.03 PER SHARE. L INVESTMENT INCOME (LOSS) PER SHARE REFLECTS A DIVIDEND RECEIVED IN AREAS WHICH AMOUNTED TO $.10 PER SHARE. M FOR FISCAL YEARS BEGINNING ON OR AFTER SEPTEMBER 1, 1995, A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES MAY DIFFER. N THE AMOUNTS SHOWN REFLECT CERTAIN RECLASSIFICATIONS RELATED TO BOOK TO TAX DIFFERENCES. TRANSPORTATION
SELECTED PER-SHARE DATA AND RATIOS YEARS ENDED FEBRUARY 28 1998 1997 1996G 1995 1994 1993H 1992F 1991F 1990F 1989F NET ASSET VALUE, BEGINNING OF PERIOD $ 22.23 $ 21.92 $ 20.53 $ 21.67 $ 18.68 $ 15.49 $ 11.26 $ 12.23 $ 13.59 $ 9.87 INCOME FROM INVESTMENT OPERATIONS NET INVESTMENT INCOME (LOSS)D (.02) (.13) (.09)E (.17) (.20) (.07) (.05) .06 (.03) (.04) NET REALIZED AND UNREALIZED GAIN (LOSS) 8.85 1.06 2.60 1.17 5.07 3.55 4.18 (.57) .96 3.76 TOTAL FROM INVESTMENT OPERATIONS 8.83 .93 2.51 1.00 4.87 3.48 4.13 (.51) .93 3.72 LESS DISTRIBUTIONS FROM NET INVESTMENT INCOME -- -- -- -- -- -- (.04) -- -- -- FROM NET REALIZED GAIN (2.80) (.71) (1.22) (2.19) (1.96) (.36) -- (.50) (2.32) -- TOTAL DISTRIBUTIONS (2.80) (.71) (1.22) (2.19) (1.96) (.36) (.04) (.50) (2.32) -- REDEMPTION FEES ADDED TO PAID IN CAPITAL .08 .09 .10 .05 .08 .07 .14 .04 .03 -- NET ASSET VALUE, END OF PERIOD $ 28.34 $ 22.23 $ 21.92 $ 20.53 $ 21.67 $ 18.68 $ 15.49 $ 11.26 $ 12.23 $ 13.59 TOTAL RETURNB,C 41.15% 4.67% 12.95% 5.90% 27.47% 23.14% 38.01% (4.10)% 6.90% 37.69% NET ASSETS, END OF PERIOD (000 OMITTED) $ 64,282 $ 8,890 $ 11,445 $ 12,704 $ 13,077 $ 10,780 $ 2,998 $ 770 $ 1,630 $ 3,998 RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.58% 2.50%I 2.47%I 2.37% 2.40% 2.48%A,I 2.43%I 2.39%I 2.50%I 2.50%I RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.54%J 2.48%J 2.44%J 2.36%J 2.39%J 2.48%A 2.43% 2.39% 2.50% 2.50% AFTER EXPENSE REDUCTIONS RATIO OF NET INVESTMENT INCOME (LOSS) (.06)% (.58)% (.43)% (.83)% (.96)% (.53)%A (.34)% .52% (.20)% (.33)% TO AVERAGE NET ASSETS PORTFOLIO TURNOVER RATE 210% 148% 175% 178% 115% 116%A 423% 187% 156% 172% AVERAGE COMMISSION RATEK $ .0337 $ .0313
UTILITIES GROWTH
SELECTED PER-SHARE DATA AND RATIOS YEARS ENDED FEBRUARY 28 1998 1997 1996G 1995 1994 1993H 1992F 1991F 1990F 1989F NET ASSET VALUE, BEGINNING OF PERIOD $ 45.97 $ 43.03 $ 34.88 $ 36.61 $ 41.49 $ 37.18 $ 35.57 $ 31.70 $ 28.82 $ 24.67 INCOME FROM INVESTMENT OPERATIONS NET INVESTMENT INCOMED .54 .73 1.10 1.13 1.33 1.19 1.66 1.59 1.27 1.39 NET REALIZED AND UNREALIZED GAIN (LOSS) 14.83 6.41 7.86 (1.17) (.16) 6.14 2.82 3.41 2.40 4.18 TOTAL FROM INVESTMENT OPERATIONS 15.37 7.14 8.96 (.04) 1.17 7.33 4.48 5.00 3.67 5.57 LESS DISTRIBUTIONS FROM NET INVESTMENT INCOME (.58) (.70) (.84) (1.05) (1.13) (1.33) (1.69) (.60) (.81) (1.42) FROM NET REALIZED GAIN (7.30) (3.54) -- (.67) (4.94) (1.70) (1.19) (.58) -- -- TOTAL DISTRIBUTIONS (7.88) (4.24) (.84) (1.72) (6.07) (3.03) (2.88) (1.18) (.81) (1.42) REDEMPTION FEES ADDED TO PAID IN CAPITAL .04 .04 .03 .03 .02 .01 .01 .05 .02 -- NET ASSET VALUE, END OF PERIOD $ 53.50 $ 45.97 $ 43.03 $ 34.88 $ 36.61 $ 41.49 $ 37.18 $ 35.57 $ 31.70 $ 28.82 TOTAL RETURNB,C 36.20% 18.13% 25.82% .21% 2.53% 20.90% 13.23% 16.25% 13.00% 23.39% NET ASSETS, END OF PERIOD (000 OMITTED) $ 401,927 $ 256,844 $ 266,768 $ 237,635 $ 250,522 $ 290,718 $ 206,872 $ 197,409 $ 124,931 $ 84,968 RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.33% 1.47% 1.39% 1.43% 1.36% 1.42%A 1.51% 1.65% 1.67% 1.21% RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.30%J 1.46%J 1.38%J 1.42%J 1.35%J 1.42%A 1.51% 1.65% 1.67% 1.21% AFTER EXPENSE REDUCTIONS RATIO OF NET INVESTMENT INCOME 1.11% 1.73% 2.76% 3.24% 3.11% 3.71%A 4.58% 4.75% 3.93% 5.33% TO AVERAGE NET ASSETS PORTFOLIO TURNOVER RATE 78% 31% 65% 24% 61% 34%A 45% 45% 75% 75% AVERAGE COMMISSION RATEK $ .0106 $ .0287
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 (LOSS) PER SHARE REFLECTS A SPECIAL DIVIDEND WHICH AMOUNTED TO $.05 PER SHARE. F FOR THE YEARS ENDED APRIL 30 G FOR THE YEARS ENDED FEBRUARY 29 H FOR THE TEN MONTHS ENDED FEBRUARY 28, 1993 I 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. J FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. K FOR FISCAL YEARS BEGINNING ON OR AFTER SEPTEMBER 1, 1995, A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES MAY DIFFER. MONEY MARKET
SELECTED PER-SHARE DATA AND RATIOS YEARS ENDED FEBRUARY 28 1998 1997 1996B 1995 1994 1993C 1992D 1991D 1990D 1989D NET ASSET VALUE, BEGINNING OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 INCOME FROM INVESTMENT OPERATIONS .051 .049 .054 .042 .026 .026 .048 .073 .081 .078 NET INTEREST INCOME LESS DISTRIBUTIONS (.051) (.049) (.054) (.042) (.026) (.026) (.048) (.073) (.081) (.078) FROM NET INTEREST INCOME NET ASSET VALUE, END OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 TOTAL RETURNE 5.26% 5.02% 5.56% 4.28% 2.62% 2.63% 4.93% 7.50% 8.45% 8.07% NET ASSETS, END OF PERIOD (000 OMITTED) $ 584,919 $ 848,168 $ 610,821 $ 573,144 $ 518,657 $ 431,133 $ 542,620 $ 608,394 $ 643,272 $ 724,452 RATIO OF EXPENSES TO AVERAGE NET ASSETS .56% .56% .59% .65% .72% .56%A .64% .73% .83% .76% RATIO OF NET INTEREST INCOME TO AVERAGE NET ASSETS 5.13% 4.92% 5.39% 4.19% 2.59% 3.09%A 4.84% 7.20% 8.13% 7.74%
A ANNUALIZED B FOR THE YEAR ENDED FEBRUARY 29 C FOR THE TEN MONTHS ENDED FEBRUARY 28, 1993 D FOR THE YEARS ENDED APRIL 30 E TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. PERFORMANCE Stock fund performance is commonly measured as TOTAL RETURN. Money market fund performance can be measured as TOTAL RETURN or YIELD. The total returns that follow are based on historical fund results and do not reflect the effect of taxes. Each fund's fiscal year runs from March 1 through February 28. The tables below show each fund's performance over past fiscal years compared to different measures, including a comparative index for the stock funds and a measure of inflation for the money market fund. The charts in Appendix A, beginning on page , present calendar year performance for the stock funds. Performance history will be available for Business Services and Outsourcing and Medical Equipment and Systems after each fund has been in operation for six months.
AVERAGE ANNUAL TOTAL RETURNS CUMULATIVE TOTAL RETURNS FISCAL PERIODS ENDED FEBRUARY 28, 1998 PAST 1 YEAR PAST 5 YEARS PAST 10 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS/ YEARS/LIFE OF LIFE OF FUND FUND AIR TRANSPORTATION 61.10% 18.88% 15.59% 61.10% 137.43% 325.88% AIR TRANSPORTATION (LOAD ADJ.A) 56.20% 18.15% 15.24% 56.20% 130.23% 313.03% AMERICAN GOLD -43.15% 2.94% 1.36% -43.15% 15.56% 14.43% AMERICAN GOLD (LOAD ADJ.A) -44.93% 2.30% 1.04% -44.93% 12.03% 10.93% AUTOMOTIVE 22.78% 13.21% 14.94% 22.78% 85.95% 302.42% AUTOMOTIVE (LOAD ADJ.A) 19.02% 12.51% 14.59% 19.02% 80.30% 290.28% BIOTECHNOLOGY 16.11% 14.81% 18.85% 16.11% 99.46% 462.13% BIOTECHNOLOGY (LOAD ADJ.A) 12.56% 14.10% 18.48% 12.56% 93.40% 445.20% BROKERAGE AND INVESTMENT MANAGEMENT 57.56% 28.50% 21.86% 57.56% 250.42% 622.27% BROKERAGE AND INVESTMENT MANAGEMENT (LOAD ADJ.A) 52.76% 27.72% 21.49% 52.76% 239.84% 600.53% CHEMICALS 19.47% 18.94% 16.05% 19.47% 138.08% 342.98% CHEMICALS (LOAD ADJ.A) 15.81% 18.21% 15.69% 15.81% 130.87% 329.62% COMPUTERS 20.33% 30.28% 21.23% 20.33% 275.27% 585.68% COMPUTERS (LOAD ADJ.A) 16.64% 29.48% 20.86% 16.64% 263.94% 565.04% CONSTRUCTION AND HOUSING 40.04% 17.66% 17.04% 40.04% 125.50% 382.21% CONSTRUCTION AND HOUSING (LOAD ADJ.A) 35.76% 16.94% 16.68% 35.76% 118.66% 367.67% CONSUMER INDUSTRIES 40.36% 20.96% 18.60%B 40.36% 158.94% 269.75%B CONSUMER INDUSTRIES (LOAD ADJ.A) 36.07% 20.22% 18.11%B 36.07% 151.10% 258.58%B CYCLICAL INDUSTRIES N/A N/A N/A N/A N/A 25.77%B CYCLICAL INDUSTRIES (LOAD ADJ.A) N/A N/A N/A N/A N/A 21.93%B DEFENSE AND AEROSPACE 42.68% 27.36% 15.36% 42.68% 235.06% 317.57% DEFENSE AND AEROSPACE (LOAD ADJ.A) 38.33% 26.58% 15.01% 38.33% 224.94% 304.97% S&P 500 35.01% 21.69% 17.98% 35.01% 166.84% 422.55%
A LOAD-ADJUSTED RETURNS INCLUDE THE EFFECT OF EACH FUND'S 3.00% SALES CHARGE AND EACH STOCK FUND'S $7.50 TRADING FEE. B LIFE OF FUND FIGURES ARE FROM COMMENCEMENT OF OPERATIONS (JUNE 29, 1990 FOR CONSUMER INDUSTRIES AND DEVELOPING COMMUNICATIONS; JUNE 29, 1989 FOR ENVIRONMENTAL SERVICES; APRIL 21, 1993 FOR NATURAL GAS; AND MARCH 3, 1997 FOR CYCLICAL INDUSTRIES AND NATURAL RESOURCES) THROUGH THE FISCAL PERIODS ENDED FEBRUARY 28, 1998.
AVERAGE ANNUAL TOTAL RETURNS CUMULATIVE TOTAL RETURNS FISCAL PERIODS ENDED FEBRUARY 28, 1998 PAST 1 YEAR PAST 5 YEARS PAST 10 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS/LIFE OF YEARS/LIFE OF FUND FUND DEVELOPING COMMUNICATIONS 28.17% 18.55% 20.34%B 28.17% 134.20% 313.39%B DEVELOPING COMMUNICATIONS (LOAD ADJ.A) 24.25% 17.83% 19.83%B 24.25% 127.10% 300.91%B ELECTRONICS 24.15% 36.47% 24.39% 24.15% 373.28% 786.86% ELECTRONICS (LOAD ADJ.A) 20.35% 35.63% 24.01% 20.35% 359.00% 760.18% ENERGY 20.40% 13.97% 11.82% 20.40% 92.27% 205.67% ENERGY (LOAD ADJ.A) 16.71% 13.27% 11.48% 16.71% 86.42% 196.43% ENERGY SERVICE 48.43% 25.60% 14.98% 48.43% 212.61% 303.70% ENERGY SERVICE (LOAD ADJ.A) 43.90% 24.83% 14.62% 43.90% 203.16% 291.51% ENVIRONMENTAL SERVICES 13.52% 8.88% 7.49%B 13.52% 52.98% 87.16%B ENVIRONMENTAL SERVICES (LOAD ADJ.A) 10.04% 8.20% 7.11%B 10.04% 48.32% 81.47%B FINANCIAL SERVICES 41.08% 25.29% 21.62% 41.08% 208.67% 607.94% FINANCIAL SERVICES (LOAD ADJ.A) 36.78% 24.52% 21.25% 36.78% 199.34% 586.63% FOOD AND AGRICULTURE 23.58% 18.95% 19.55% 23.58% 138.16% 496.21% FOOD AND AGRICULTURE (LOAD ADJ.A) 19.81% 18.22% 19.18% 19.81% 130.95% 478.25% HEALTH CARE 36.47% 29.43% 23.29% 36.47% 263.22% 711.23% HEALTH CARE (LOAD ADJ.A) 32.31% 28.64% 22.91% 32.31% 252.25% 686.82% HOME FINANCE 32.39% 30.34% 26.82% 32.39% 276.17% 975.96% HOME FINANCE (LOAD ADJ.A) 28.35% 29.54% 26.43% 28.35% 264.81% 943.60% INDUSTRIAL EQUIPMENT 25.76% 22.83% 15.55% 25.76% 179.57% 324.46% INDUSTRIAL EQUIPMENT (LOAD ADJ.A) 21.91% 22.08% 15.20% 21.91% 171.11% 311.66% INDUSTRIAL MATERIALS 6.59% 12.82% 10.03% 6.59% 82.77% 160.08% INDUSTRIAL MATERIALS (LOAD ADJ.A) 3.32% 12.12% 9.69% 3.32% 77.21% 152.20% INSURANCE 42.81% 20.80% 20.02% 42.81% 157.24% 520.14% INSURANCE (LOAD ADJ.A) 38.45% 20.06% 19.65% 38.45% 149.44% 501.46% LEISURE 47.29% 22.94% 17.80% 47.29% 180.86% 414.78% LEISURE (LOAD ADJ.A) 42.80% 22.19% 17.44% 42.80% 172.36% 399.26% MEDICAL DELIVERY 21.97% 24.85% 22.36% 21.97% 203.35% 652.53% MEDICAL DELIVERY (LOAD ADJ.A) 18.24% 24.09% 21.99% 18.24% 194.18% 629.88% MULTIMEDIA 42.42% 21.49% 17.91% 42.42% 164.67% 419.51% MULTIMEDIA (LOAD ADJ.A) 38.08% 20.75% 17.55% 38.08% 156.66% 403.86% S&P 500 35.01% 21.69% 17.98% 35.01% 166.84% 422.55%
A LOAD-ADJUSTED RETURNS INCLUDE THE EFFECT OF EACH FUND'S 3.00% SALES CHARGE AND EACH STOCK FUND'S $7.50 TRADING FEE. B LIFE OF FUND FIGURES ARE FROM COMMENCEMENT OF OPERATIONS (JUNE 29, 1990 FOR CONSUMER INDUSTRIES AND DEVELOPING COMMUNICATIONS; JUNE 29, 1989 FOR ENVIRONMENTAL SERVICES; APRIL 21, 1993 FOR NATURAL GAS; AND MARCH 3, 1997 FOR CYCLICAL INDUSTRIES AND NATURAL RESOURCES) THROUGH THE FISCAL PERIODS ENDED FEBRUARY 28, 1998.
AVERAGE ANNUAL TOTAL RETURNS CUMULATIVE TOTAL RETURNS FISCAL PERIODS ENDED FEBRUARY 28, 1998 PAST 1 YEAR PAST 5 YEARS PAST 10 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS/LIFE OF YEARS/LIFE OF FUND FUND NATURAL GAS 8.74% N/A 7.47%B 8.74% N/A 41.90%B NATURAL GAS (LOAD ADJ.A) 5.40% N/A 6.78%B 5.40% N/A 37.56%B NATURAL RESOURCES N/A N/A N/A N/A N/A 7.30%B NATURAL RESOURCES (LOAD ADJ.A) N/A N/A N/A N/A N/A 4.01%B PAPER AND FOREST PRODUCTS 15.53% 14.42% 10.86% 15.53% 96.10% 180.35% PAPER AND FOREST PRODUCTS (LOAD ADJ.A) 11.99% 13.71% 10.52% 11.99% 90.15% 171.87% PRECIOUS METALS AND MINERALS -47.55% 1.48% -0.68% -47.55% 7.60% -6.61% PRECIOUS METALS AND MINERALS (LOAD ADJ.A) -49.20% 0.84% -0.99% -49.20% 4.30% -9.49% REGIONAL BANKS 36.64% 25.93% 25.43% 36.64% 216.75% 863.48% REGIONAL BANKS (LOAD ADJ.A) 32.47% 25.16% 25.04% 32.47% 207.18% 834.50% RETAILING 52.61% 18.74% 21.04% 52.61% 136.07% 575.14% RETAILING (LOAD ADJ.A) 47.96% 18.01% 20.67% 47.96% 128.92% 554.82% SOFTWARE AND COMPUTER SERVICES 35.50% 24.54% 21.92% 35.50% 199.63% 625.79% SOFTWARE AND COMPUTER SERVICES (LOAD ADJ.A) 31.36% 23.78% 21.55% 31.36% 190.56% 603.94% TECHNOLOGY 24.92% 24.64% 20.48% 24.92% 200.87% 544.51% TECHNOLOGY (LOAD ADJ.A) 21.10% 23.88% 20.11% 21.10% 191.76% 525.10% TELECOMMUNICATIONS 46.52% 21.21% 20.03% 46.52% 161.65% 520.86% TELECOMMUNICATIONS (LOAD ADJ.A) 42.06% 20.47% 19.67% 42.06% 153.73% 502.17% TRANSPORTATION 41.15% 17.64% 18.77% 41.15% 125.27% 458.46% TRANSPORTATION (LOAD ADJ.A) 36.84% 16.91% 18.41% 36.84% 118.44% 441.64% UTILITIES GROWTH 36.20% 15.78% 16.22% 36.20% 108.01% 349.64% UTILITIES GROWTH (LOAD ADJ.A) 32.04% 15.06% 15.87% 32.04% 101.70% 336.09% S&P 500 35.01% 21.69% 17.98% 35.01% 166.84% 422.55% MONEY MARKET 5.26% 4.54% 5.52% 5.26% 24.88% 71.10% MONEY MARKET (LOAD ADJ.A) 2.10% 3.91% 5.20% 2.10% 21.13% 65.97% CONSUMER PRICE INDEX 1.44% 2.50% 3.39% 1.44% 13.14% 39.57%
A LOAD-ADJUSTED RETURNS INCLUDE THE EFFECT OF EACH FUND'S 3.00% SALES CHARGE AND EACH STOCK FUND'S $7.50 TRADING FEE. B LIFE OF FUND FIGURES ARE FROM COMMENCEMENT OF OPERATIONS (JUNE 29, 1990 FOR CONSUMER INDUSTRIES AND DEVELOPING COMMUNICATIONS; JUNE 29, 1989 FOR ENVIRONMENTAL SERVICES; APRIL 21, 1993 FOR NATURAL GAS; AND MARCH 3, 1997 FOR CYCLICAL INDUSTRIES AND NATURAL RESOURCES) THROUGH THE FISCAL PERIODS ENDED FEBRUARY 28, 1998. If FMR had not reimbursed certain fund expenses during these periods, total returns would have been lower. EXPLANATION OF TERMS TOTAL RETURN is the change in value of an investment over a given period, assuming reinvestment of any dividends and capital gains. A CUMULATIVE TOTAL RETURN reflects actual performance over a stated period of time. An AVERAGE ANNUAL TOTAL RETURN is a hypothetical rate of return that, if achieved annually, would have produced the same cumulative total return if performance had been constant over the entire period. Average annual total returns smooth out variations in performance; they are not the same as actual year-by-year results. Average annual total returns covering periods of less than one year assume that performance will remain constant for the rest of the year. YIELD refers to the income generated by an investment in a fund over a given period of time, expressed as an annual percentage rate. When a yield assumes that income earned is reinvested, it is called an EFFECTIVE YIELD. STANDARD & POOR'S 500 INDEX (S&P 500(registered trademark)) is a widely recognized, unmanaged index of common stocks. Unlike each fund's returns, the total returns of the comparative index do not include the effect of any brokerage commissions, transaction fees, or other costs of investing. THE CONSUMER PRICE INDEX is a widely recognized measure of inflation calculated by the U.S. Government. Other illustrations of stock fund performance may show moving averages over specified periods. The funds' recent strategies, performance, and holdings are detailed twice a year in financial reports, which are sent to all shareholders. For current performance or a free annual report, call 1-800-544-8888. TOTAL RETURNS AND YIELDS ARE BASED ON PAST RESULTS AND ARE NOT AN INDICATION OF FUTURE PERFORMANCE. THE FUNDS IN DETAIL CHARTER EACH FUND IS A MUTUAL FUND: an investment that pools shareholders' money and invests it toward a specified goal. The money market fund, Financial Services, Home Finance, and Regional Banks are diversified funds, and each of the other stock funds is a non-diversified fund of Fidelity Select Portfolios, an open-end management investment company organized as a Massachusetts business trust on November 20, 1980. There is a remote possibility that one fund might become liable for a misstatement in the prospectus about another fund. EACH FUND IS GOVERNED BY A BOARD OF TRUSTEES which is responsible for protecting the interests of shareholders. The trustees are experienced executives who meet periodically throughout the year to oversee the funds' activities, review contractual arrangements with companies that provide services to the funds, and review the funds' performance. The trustees serve as trustees for other Fidelity funds. The majority of trustees are not otherwise affiliated with Fidelity. THE FUNDS MAY HOLD SPECIAL SHAREHOLDER MEETINGS AND MAIL PROXY MATERIALS. These meetings may be called to elect or remove trustees, change fundamental policies, approve a management contract, or for other purposes. Shareholders not attending these meetings are encouraged to vote by proxy. Fidelity will mail proxy materials in advance, including a voting card and information about the proposals to be voted on. The number of votes you are entitled to is based upon the dollar value of your investment. FMR AND ITS AFFILIATES The funds are managed by FMR, which handles their business affairs and chooses the stock funds' investments. Fidelity Management & Research (U.K.) Inc. (FMR U.K.), in London, England, and Fidelity Management & Research (Far East) Inc. (FMR Far East), in Tokyo, Japan, assist FMR with foreign investments for the stock funds (except American Gold). FIMM, located in Merrimack, New Hampshire has primary responsibility for providing investment management services for the money market fund. Tom Allen is manager of Insurance, which he has managed since February 1997. Mr. Allen joined Fidelity as an analyst in 1995, after receiving his MBA from Harvard Business School. Previously, he worked as a summer intern at Massachusetts Financial Services in 1994. Before that, he was with Price Waterhouse LLP, from 1987 to 1993, finishing as an audit manager. Ramin Arani is manager of Retailing, which he has managed since January 1997. Previously, he was an analyst. Mr. Arani joined Fidelity as a research associate in 1992, after receiving a bachelor of arts degree from Tufts University. Audra Barranco is manager of Chemicals, which she has managed since June 1997. Ms. Barranco joined Fidelity in 1996 as an analyst, after receiving her MBA from Columbia Business School. Previously, she worked as an investment commentary writer and internal wholesaler for Pioneer Funds Distributor from 1992 to 1995. Jean-Marc Berteaux is manager of Transportation, which he has managed since January 1997. Mr. Berteaux joined Fidelity as an analyst in 1994, after receiving his MBA from the European Institute of Business Administration (INSEAD) in France. Previously, he was an assistant vice president for the Banque National de Paris in Montreal from 1992 to 1993. Steve Buller is manager of Environmental Services, which he has managed since December 1997. He is also an associate manager for another Fidelity fund. Mr. Buller joined Fidelity in 1992 as an analyst. From 1995 to 1997, he worked as a fixed-income analyst for Fidelity International, Limited, in London. James Catudal is manager of Industrial Materials and Energy Services, which he has managed since August 1997 and January 1998, respectively. Mr. Catudal joined Fidelity in 1997 as a research analyst. After receiving his MBA from the Amos Tuck School at Dartmouth College in 1995, he joined State Street Research & Management as an equity analyst. Previously, he worked for Textron, McCord Winn Division, from 1987 to 1993. Douglas Chase is manager of Consumer Industries , which he has managed since August 1997. He managed Industrial Materials from 1994 to 1997. Mr. Chase joined Fidelity as an equity analyst in 1993 after receiving his MBA from the University of Michigan. Previously, he was a consultant for Stanford Resources from 1988 to 1991. George Domolky is manager of Precious Metals and Minerals and American Gold, both of which he has managed since February 1997. Previously, he managed Canada from 1987 to 1996 as well as another Fidelity fund. Mr. Domolky joined Fidelity in 1981. Jeff Dorsey is manager of Multimedia and Leisure, which he has managed since December 1997 and January 1998, respectively. Since joining Fidelity in 1991, Mr. Dorsey has worked as an analyst, senior analyst, corporate strategist and manager. Robert Ewing is manager of Financial Services, which he has managed since January 1998. He also manages another Fidelity fund. Since joining Fidelity in 1990, Mr. Ewing has worked as a research associate, analyst and manager. Peter Fruzzetti is manager of Brokerage and Investment Management, which he has managed since February 1997. Previously, he worked as an analyst. Mr. Fruzzetti joined Fidelity as a research associate in 1993, after receiving a bachelor of science degree in finance from Boston College. Albert Grosman is manager of Automotive, which he has managed since December 1997. Mr. Grosman joined Fidelity in 1996 as an analyst working part-time. After receiving his MBA from Columbia University in 1997, he joined Fidelity full-time. From 1993 to 1995, Mr. Grosman was self-employed as an investment manager, managing investment portfolios on a discretionary basis in Toronto, Canada. Jamie Harmon is manager of Biotechnology, which he has managed since June 1997. Since joining Fidelity in 1995, Mr. Harmon has worked as a research associate, analyst and manager. Previously, he was a junior analyst with Essex Investment Management Co., Inc. from 1994 to 1995. Mr. Harmon received a bachelor of arts degree in government from Harvard University in 1994. Adam Hetnarski is manager of Technology, which he has managed since March 1996. He also manages another Fidelity fund. Since joining Fidelity in 1991, Mr. Hetnarski has worked as an analyst and manager. And rew Kaplan is manager of Electronics and Developing Communications , which he has managed since August 1996 and March 1998, respectively . Mr. Kaplan joined Fidelity as an analyst in 1995. Previously, he was an analyst with T. Rowe Price in 1994, and an associate director of consulting for Edward S. Gordon Company , in New York City , from 1988 through 1993. Doug Lober is manager of Paper and Forest Products, which he has managed since October 1997. Mr. Lober joined Fidelity in 1997 as a senior equity analyst. Previously, he was an analyst and manager at Fidelity from 1986 until 1989. Mr. Lober received his doctorate in forestry and environmental studies from Yale University in 1993, and was an assistant professor at Duke University from 1993 to 1997. Yolanda McGettigan is manager of Construction and Housing, which she has managed since December 1997. Ms. McGettigan joined Fidelity as an analyst in 1997, after receiving her MBA from the Fuqua School of Business at Duke University. Previously, she was employed as a sales representative for Robinson-Humphrey from 1994 to 1995 and a trader for Cantor Fitzgerald from 1992 to 1994. Kerry Nelson is manager of Medical Equipment and Systems, which she has managed since inception. 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. Scott Offen is manager of Food and Agriculture, which he has managed since November 1996. Previously, he managed other Fidelity funds. Since joining Fidelity in 1985, Mr. Offen has worked as an analyst and manager. John Porter is manager of Software and Computer Services and Medical Delivery, which he has managed since June 1997 and January 1998, respectively. Previously, he managed another Fidelity fund. Mr. Porter joined Fidelity as an analyst in 1995, after receiving his MBA from the University of Chicago. Before that, he was a product engineer for Ford Motor Company from 1991 to 1993. Lawrence Rakers is manager of Energy and Natural Resources which he has managed since January 1997 and March 1997, respectively. He also manages another Fidelity fund. Mr. Rakers joined Fidelity as an analyst in 1993. Previously, he was a project engineer for Loral Corporation from 1986 to 1993. Albert Ruback is manager of Cyclical Industries, which he has managed since inception. He also manages another Fidelity fund. Mr. Ruback joined Fidelity as an analyst in 1991, after receiving his MBA from Harvard Business School. Bill Rubin is manager of Home Finance, which he has managed since October 1996. Previously, he managed another Fidelity fund. Mr. Rubin joined Fidelity as an analyst in 1994, after receiving his MBA from Harvard Business School. He was a corporate financial analyst for VLSI Technologies from 1990 to 1992. Peter Saperstone is manager of Air Transportation and Defense and Aerospace, both of which he has managed since July 1997. Mr. Saperstone joined Fidelity as an analyst in August 1995. Previously, he was an equity research analyst at Gabelli & Company, Inc. from 1993 to 1995, and a credit analyst at National Westminster Bank USA from 1991 to 1993. Christine Schaulat is manager of Regional Banks, which she has managed since January 1998. Ms. Schaulat joined Fidelity as a research analyst after receiving her MBA from Harvard University in 1997. Previously, she was an investment manager for Indosuez Asset Management Asia, Limited, in Hong Kong, from 1993 to 19 95 . Beso Sikharulidze is manager of Health Care, which he has managed since June 1997. He also manages another Fidelity fund. Mr. Sikharulidze joined Fidelity as an analyst in 1992, after receiving his MBA from Harvard University. Michael Tarlowe is manager of Business Services and Outsourcing, which he has managed since inception. Mr. Tarlowe joined Fidelity as an analyst in 1994, after receiving a bachelor of business administration degree from the University of Michigan. Michael Tempero is manager of Computers, which he has managed since January 1997. Previously, he managed other Fidelity funds. Mr. Tempero joined Fidelity as an analyst in 1993, after receiving his MBA from the University of Chicago. Mr. Tempero also earned a master of science degree in economics from the London School of Economics in 1992. Nick Thakore is manager of Telecommunications and Utilities Growth, which he has managed since July 1996 and August 1997, respectively. Mr. Thakore joined Fidelity as an analyst in 1993, after earning his MBA from The Wharton School at the University of Pennsylvania. Previously, he was a real estate analyst for Prudential Properties Company from 1989 to 1991. Victor Thay is manager of Natural Gas, which he has managed since December 1997. 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. Simon Wolf is manager of Industrial Equipment which he has managed since August 1997. Mr. Wolf joined Fidelity in 1996 as a research associate. Previously, he worked for Salomon Brothers as an analyst and high yield research assistant analyst from 1993 to 1996. Mr. Wolf received a bachelor of science in economics degree from The Wharton School at the University of Pennsylvania in 1992. Fidelity investment personnel may invest in securities for their own accounts pursuant to a code of ethics that establishes procedures for personal investing and restricts certain transactions. Fidelity Distributors Corporation (FDC) distributes and markets Fidelity's funds and services. Fidelity Service Company, Inc. (FSC) performs transfer agent servicing functions for each fund. FMR Corp. is the ultimate parent company of FMR, FIMM, FMR U.K., and FMR Far East. Members of the Edward C. Johnson 3d family are the predominant owners of a class of shares of common stock representing approximately 49% of the voting power of FMR Corp. Under the Investment Company Act of 1940 (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, the Johnson family may be deemed under the 1940 Act to form a controlling group with respect to FMR Corp. As of February 28, 1998, approximately 31.32% of Select Cyclical Industries Fund's total outstanding shares were held by FMR. FMR may use its broker-dealer affiliates and other firms that sell fund shares to carry out a fund's transactions, provided that the fund receives brokerage services and commission rates comparable to those of other broker-dealers. INVESTMENT PRINCIPLES AND RISKS Each stock fund seeks capital appreciation by concentrating its investments in the securities of companies in a particular industry or group of industries. Under normal conditions, each fund will invest at least 80% of its assets in securities of companies principally engaged in the business activities of its named industry or group of industries. For this purpose American Gold, Natural Resources, and Precious Metals and Minerals treat investments in precious metals and instruments whose value is linked to the price of precious metals, as investments in their named industries. The stock funds will invest primarily in equity securities, although they may invest in other types of instruments as well. An issuer is considered to be principally engaged in a business activity if at least 50% of its assets, gross income, or net profits are committed to, or derived from, that activity. For Brokerage and Investment Management and Financial Services, 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 those funds. It is important to note that in many cases, the focus of one stock fund differs only slightly from another, so they may invest in many of the same securities. The stock funds may involve significantly greater risks and therefore may experience greater volatility than a mutual fund that does not concentrate its investments. Because of their narrow focus, each fund's performance is closely tied to and affected by, its industry or group of industries. Companies in an industry are often faced with the same obstacles, issues, or regulatory burdens, and their securities may react similarly to and move in unison with these or other market conditions. This is especially true for funds with a particularly narrow industry focus. Also because the funds (except Financial Services, Home Finance, and Regional Banks) are non-diversified, they are further exposed to increased volatility. Non-diversified funds may have greater investments in a single issuer than diversified funds, so the performance of a single issuer can have a substantial impact on a fund's share price. Finally, the funds' strategies in seeking to achieve their investment objectives may lead to investments in smaller companies. Securities of smaller companies, especially those whose business involves emerging products or concepts, may be more volatile due to their limited product lines, markets, or financial resources; or their susceptibility to major setbacks or downturns. The value of the funds' domestic and foreign investments varies in response to many factors. Stock values fluctuate in response to the activities of individual companies and general market and economic conditions. Investments in foreign securities may involve risks in addition to those of U.S. investments, including increased political and economic risk, as well as exposure to currency fluctuations. FMR may use various investment techniques to hedge a portion of the funds' risks, but there is no guarantee that these strategies will work as FMR intends. Of course, when you sell your shares of a fund, they may be worth more or less than what you paid for them. FMR normally invests each fund's assets according to its investment strategy. When FMR considers it appropriate for defensive purposes, each stock fund may temporarily invest substantially in investment-grade debt securities. AIR TRANSPORTATION PORTFOLIO invests primarily in companies engaged in the regional, national, and international movement of passengers, mail, and freight via aircraft. These companies may include, for example, 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. The profitability of air transportation companies is substantially influenced by competition within the industry, domestic and foreign economies and government regulation, and the price of fuel. Additionally, the industry is still feeling the effects of deregulation. AMERICAN GOLD PORTFOLIO invests primarily in companies engaged in exploration, mining, processing, or dealing in gold, or, to a lesser degree, in silver, platinum, diamonds, or other precious metals and minerals. The fund focuses on North, Central, and South American companies engaged in gold-related activities. In addition to investments in those companies, the fund's focus include s investments in gold bullion or coins and securities indexed to the price of gold as well as, to a lesser degree, other precious metals in the form of bullion, coins, and securities indexed to the price of precious metals. The fund may also invest in companies that manufacture and distribute precious metals and minerals products (such as jewelry, watches, and metal foils and leaf) and companies that invest in other companies engaged in gold-related activities. The price of gold and other precious metal mining securities can face substantial short-term volatility caused by international monetary and political developments such as currency devaluations or revaluations, economic and social conditions within a country, or trade restrictions between countries. Because much of the world's gold reserves are located in South Africa, the social and economic conditions there can affect gold and gold-related companies located elsewhere. The price of gold bullion or coins is closely tied to broad economic and political conditions. For the fund to qualify as a regulated investment company u nder 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 the fund to hold or sell precious metals or securities when it would not otherwise do so. AUTOMOTIVE PORTFOLIO invests primarily in companies engaged in the manufacture, marketing, or sale of automobiles, trucks, specialty vehicles, parts, tires, and related services. These companies may include, for example, 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. In addition, the fund may invest in companies that provide automotive-related services to manufacturers, distributors or consumers. The automotive industry is highly cyclical and companies in the industry may suffer periodic operating losses. While most of the major manufacturers are large, financially strong companies, some are smaller manufacturers that have a non-diversified product line or customer base. BIOTECHNOLOGY PORTFOLIO invests primarily in companies engaged in the research, development, and manufacture of various biotechnological products, services, and processes. These companies may include, for example, companies involved with new or experimental technologies such as genetic engineering, hybridoma and recombinant DNA techniques and monoclonal antibodies. The fund may also invest in companies that manufacture and/or distribute biotechnological and biomedical products, including devices and instruments, and in companies that provide or benefit significantly from scientific and technological advances in biotechnology. Some biotechnology companies may provide processes or services instead of, or in addition to, products. The description of the biotechnology sector will be interpreted broadly by FMR, and may include applications and developments in such areas as human health care (e.g., cancer, infectious disease, diagnostics and therapeutics); pharmaceuticals (e.g., new drug development and production); agricultural and veterinary applications (e.g., improved seed varieties, animal growth hormones); chemicals (e.g., enzymes, toxic waste treatment); medical/surgical (e.g., epidermal growth factor, in vivo imaging/therapeutics); and industry (e.g., biochips, fermentation, enhanced mineral recovery). Biotechnology companies are affected by patent considerations, intense competition, rapid technological change and obsolescence, and regulatory requirements. In addition, many of these companies may not yet offer products and may have persistent losses or erratic revenue patterns. BROKERAGE AND INVESTMENT MANAGEMENT PORTFOLIO invests primarily in companies engaged in stock brokerage, commodity brokerage, investment banking, tax-advantaged investment or investment sales, investment management, or related investment advisory services. The fund does not invest in securities of FMR or its affiliated companies. Under SEC regulations the fund may not invest more than 5% of its total assets in the equity securities of any company that derives more than 15% of its revenues from brokerage or investment management activities. Legislation is currently being considered which would reduce the separation between commercial and investment banking businesses. If enacted this could significantly impact the industry and the fund. Changes in regulations, brokerage commission structure, stock and bond market activity, and the competitive environment, combined with the operating leverage inherent in companies in these industries, can produce erratic returns over time. BUSINESS SERVICES AND OUTSOURCING invests primarily in companies that provide business-related services to companies and other organizations. Business-related services may include 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, these services are provided on a contract or fee basis. The success of companies that provide business-related services is, in part, subject to continued demand for such services as companies and other organizations seek alternative, cost effective means to meet their economic goals. Competitive pressures, such as technological developments, fixed-rate pricing, and the ability to attract and retain skilled employees, also may have a significant impact on the financial condition of companies in the business services and outsourcing industry. CHEMICALS PORTFOLIO invests primarily in companies engaged in the research, development, manufacture, or marketing of products or services related to the chemical process industries. These products may include, for example, synthetic and natural materials, such as basic and intermediate organic and inorganic chemicals, plastics, synthetic fibers, fertilizers, industrial gases, flavorings, fragrances, biological materials, catalysts, carriers, additives, and process aids. The fund may also invest in companies providing design, engineering, construction, and consulting services to companies engaged in chemical processing. Companies in the chemical processing industries are subject to intense competition, product obsolescence, and significant governmental regulation. As regulations are developed and enforced, such companies may be required to alter or cease production of a product, to pay fines, or to pay for cleaning up a disposal site. In addition, chemical companies face unique risks associated with handling hazardous products. COMPUTERS PORTFOLIO invests primarily in companies engaged in research, design, development, manufacture, or distribution of products, processes, or services that relate to currently available or experimental hardware technology within the computer industry. The fund may invest in companies that provide products or services such as computer and office equipment wholesalers, software retailers, data processors, robotics, and designers of artificial intelligence. Competitive pressures and changing domestic and international demand may have a significant effect on the financial condition of companies in the computer industry. Companies in the computer industry spend heavily on research and development and are sensitive to the risk of product obsolescence. CONSTRUCTION AND HOUSING PORTFOLIO invests primarily in companies engaged in the design and construction of residential, commercial, industrial, and public works facilities, as well as companies engaged in the manufacture, supply, distribution, or sale of products or services to these construction industries. Examples of companies engaged in these activities include companies that produce basic building materials such as cement, aggregates, gypsum, timber, and wall and floor coverings; that supply home furnishings; and that provide engineering or contracting services. The fund also may invest in companies involved in real estate development and construction financing such as homebuilders, architectural and design firms, and property managers, and in 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. Companies in these industries may be affected by a variety of factors such as government spending on housing subsidies, public works, and transportation facilities, as well as changes in interest rates, consumer confidence and spending, taxation, demographic patterns, the level of new and existing home sales, and other economic activity. CONSUMER INDUSTRIES PORTFOLIO invests primarily in companies 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, major appliances, and personal computers. The fund also may invest in companies that manufacture, wholesale, or retail non-durable goods such as food, beverages, tobacco, health care products, household and personal care products, apparel, and entertainment products (e.g., books, magazines, TV, cable, movies, music, gaming, sports). In addition, the fund may invest in companies that provide consumer products and services such as lodging, child care, convenience stores, and car rentals. The success of consumer product manufacturers and retailers is closely tied to the performance of the overall economy, interest rates, competition, and consumer confidence. Success depends heavily on disposable household income and consumer spending. Changes in demographics and consumer tastes can also affect the demand for, and success of, consumer products in the marketplace. 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. These may include the automotive, chemical, construction and housing, defense and aerospace, environmental services, industrial equipment and materials, paper and forest products, and transportation industries. Many companies in these industries are significantly affected by general economic trends including employment, economic growth, and interest rates. Other factors that may affect these industries are changes in consumer sentiment and spending, commodity prices, legislation, government regulation and spending, import controls, and worldwide competition. At times, worldwide production of the materials used in cyclical industries has exceeded demand as a result of, for example, over-building or economic downturns. During these times, commodity price declines and unit volume reductions resulted in poor investment returns and losses. Furthermore, a company in the cyclical industries may be subject to liability for environmental damage, depletion of resources, and mandated expenditures for safety and pollution control. DEFENSE AND AEROSPACE PORTFOLIO invests primarily in companies engaged in the research, manufacture, or sale of products or services related to the defense or aerospace industries. For example, the fund may invest in companies that provide the following products or services: air transport; defense electronics; aircraft or spacecraft production; missile design; data processing or computer-related services; communications systems; research; development and manufacture of military weapons and transportation; general aviation equipment, missiles, space launch vehicles, and spacecraft; units for guidance, propulsion, and control of flight vehicles; and equipment components and airborne and ground-based equipment essential to the testing, operation, and maintenance of flight vehicles. The financial condition of companies in the industries and investor interest in these companies are heavily influenced by government defense and aerospace spending policies. Defense spending is currently under pressure from efforts to control the U.S. budget deficit. DEVELOPING COMMUNICATIONS PORTFOLIO invests primarily in companies engaged in the development, manufacture, or sale of emerging communications services or equipment. Emerging communications are those which derive from new technologies or new applications of existing technologies. For example, the fund may invest in companies involved in cellular communications, software development, video conferencing, or data processing. The fund places less emphasis on traditional communications companies such as large long distance carriers. Products or services provided by this industry may be in the development stage and can face risks such as failure to obtain financing or regulatory approval, intense competition, product incompatibility, consumer preferences, and rapid obsolescence. ELECTRONICS PORTFOLIO invests primarily in companies engaged in the design, manufacture, or sale of electronic components (semiconductors, connectors, printed circuit boards, and other components); equipment vendors to electronic component manufacturers; electronic component distributors; and electronic instruments and electronic systems vendors. This may include companies involved in all aspects of the electronics business and in new technologies or specialty areas such as defense electronics, advanced design and manufacturing technologies, or lasers. Many of the products offered by companies engaged in the design, production, or distribution of electronic products are subject to risks of rapid obsolescence and intense competition. ENERGY PORTFOLIO invests primarily in companies in the energy field, including the conventional areas of oil, gas, electricity, and coal, and newer sources of energy such as nuclear, geothermal, oil shale, and solar power. For example, the fund may invest in companies that produce, transmit, market, distribute or measure energy; companies involved in providing products and services to companies in the energy field; and companies involved in the exploration of new sources of energy, conservation, and energy-related pollution control. Securities of companies in the energy field are subject to changes in value and dividend yield which depend largely on the price and supply of energy fuels. Swift price and supply fluctuations may be caused by events relating to international politics, energy conservation, the success of exploration projects, and tax and other governmental regulatory policies. ENERGY SERVICE PORTFOLIO invests primarily in companies in the energy service field, including those that provide services and equipment to the conventional areas of oil, gas, electricity, and coal, and newer sources of energy such as nuclear, geothermal, oil shale, and solar power. For example, the fund may invest in companies providing services such as onshore or offshore drilling; companies involved in production and well maintenance; companies involved in exploration engineering, data and technology; companies involved in energy transport; and companies involved in equipment and plant design or construction. In addition, the fund may invest in companies that provide products and services to these companies. Energy service firms are affected by supply and demand both for their specific product or service and for energy products in general. The price of oil and gas, exploration and production spending, governmental regulation, world events and economic conditions will likewise affect the performance of these companies. ENVIRONMENTAL SERVICES PORTFOLIO invests primarily in companies engaged in the research, development, manufacture, or distribution of products, processes, or services related to waste management or pollution control. Such products, processes or services may include the transportation, treatment and disposal of both hazardous and solid wastes, including waste-to-energy and recycling; remedial project efforts, including groundwater and underground storage tank decontamination, asbestos cleanup and emergency cleanup response; and the detection, analysis, evaluation, and treatment of both existing and potential environmental problems including, among others, contaminated water, air pollution, and acid rain. The fund may also invest in companies that provide design, engineering, construction, and consulting services to companies engaged in waste management or pollution control. Securities of companies in the environmental services field can be impacted by legislation, government regulations, and enforcement policies. As regulations are developed and enforced, companies may be required to alter or cease production of a product or service. In addition, hazardous materials may be involved, and companies can face significant liability risk. FINANCIAL SERVICES PORTFOLIO invests primarily in companies that provide financial services to consumers and industry. Examples of companies in the financial services sector include commercial banks, savings and loan associations, brokerage companies, insurance companies, real estate and leasing companies, and companies that span across these segments. Under SEC regulations, the fund may not invest more than 5% of its total assets in the equity securities of any company that derives more than 15% of its revenues from brokerage or investment management activities. Financial services companies are subject to extensive governmental regulation which may limit both the amounts and types of loans and other financial commitments they can make, and the interest rates and fees they can charge. Profitability is largely dependent on the availability and cost of capital funds, and can fluctuate significantly when interest rates change. Credit losses resulting from financial difficulties of borrowers can negatively impact the sector. Insurance companies may be subject to severe price competition. Legislation is currently being considered which would reduce the separation between commercial and investment banking businesses. If enacted this could significantly impact the sector and the fund. 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. For example, the fund may invest in companies that sell products and services such as meat and poultry processors, grocery stores, and restaurants; companies that manufacture and distribute products such as soft drinks, pet foods, wood products, tobacco, and agricultural machinery; and companies engaged in the development of new technologies such as improved hybrid seeds. The food and agriculture field is impacted by supply and demand, which may be affected by demographic and product trends, food fads, marketing campaigns, and environmental factors. In the United States, the agricultural products industry is subject to regulation by numerous government agencies. HEALTH CARE PORTFOLIO invests primarily in companies engaged in the design, manufacture, or sale of products or services used for or in connection with health care or medicine. Companies in the health care sector may include, for example, pharmaceutical companies, companies involved in research and development, companies involved in the operation of health care facilities, and other companies involved in the design, manufacture, or sale of health care-related products or services. Many of these companies are subject to government regulation and approval of their products and services, which could have a significant effect on their price and availability. Furthermore, the types of products or services produced or provided by these companies may quickly become obsolete. HOME FINANCE PORTFOLIO invests primarily in companies engaged in investing in real estate, usually through mortgages and other consumer-related loans. These companies may also offer discount brokerage services, insurance products, leasing services, and joint venture financing. For example, the fund may invest in mortgage banking companies, real estate investment trusts, banks, and other depository institutions. The residential real estate finance industry has changed rapidly over the last decade and is expected to continue to change. Regulatory changes at federally insured institutions, in response to a high failure rate, have mandated higher capital ratios and more prudent underwriting. This reduced capacity has created growth opportunities for uninsured companies and secondary market products to fill unmet demand for home finance. Regulatory changes, interest rate movements, home mortgage demand, and residential delinquency trends will affect the industry. INDUSTRIAL EQUIPMENT PORTFOLIO invests primarily in companies engaged in the manufacture, distribution, or service of products and equipment for the industrial sector, including integrated producers of capital equipment (such as general industrial machinery, farm equipment, and computers), parts suppliers, and subcontractors. For example, the fund may invest in 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; cable equipment companies; and office automation companies. The success of equipment manufacturing and distribution companies is closely tied to 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 sector may also be affected by economic cycles, technical progress, labor relations, and government regulations. INDUSTRIAL MATERIALS PORTFOLIO invests primarily in companies engaged in the manufacture, mining, processing, or distribution of raw materials and intermediate goods used in the industrial sector. These materials and goods may include, for example, chemicals, metals, textiles, and wood products. The fund may also invest in mining, processing, transportation, and distribution companies, including equipment suppliers and railroads. Many companies in the industrial sector are significantly affected by the level and volatility of commodity prices, the exchange value of the dollar, import controls, and worldwide competition. At times, worldwide production of industrial materials has exceeded demand as a result of over-building or economic downturns, leading to poor investment returns or losses. Other risks may include liability for environmental damage, depletion of resources, and mandated expenditures for safety and pollution control. INSURANCE PORTFOLIO invests primarily in companies engaged in underwriting, reinsuring, selling, distributing, or placing of property and casualty, life, or health insurance. For example, the fund may invest in companies that provide a specific type of insurance, such as life or health insurance, those that offer a variety of insurance products, and those that provide insurance services such as brokers and claims processors. Insurance company profits are affected by interest rate levels, general economic conditions, and price and marketing competition. Certain types of insurance may be impacted by events or trends such as natural catastrophes, mortality rates, or recessions. Companies may be exposed to material risks including a shortage 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 governmental regulation, and can be adversely affected by proposed or potential tax law changes. LEISURE PORTFOLIO invests primarily in companies engaged in the design, production, or distribution of goods or services in the leisure industries. The fund may invest in companies that provide goods or services such as television and radio broadcast or manufacture (including cable television); motion pictures and photography; recordings and musical instruments; publishing, including newspapers and magazines; sporting goods and camping and recreational equipment; and sports arenas. Other goods and services may include toys and games (including video and other electronic games), amusement and theme parks, travel and travel-related services, hotels and motels, leisure apparel or footwear, fast food, beverages, restaurants, tobacco products and gaming casinos. Securities of companies in the leisure industries may be considered speculative and generally exhibit greater volatility than the overall market. Many companies have unpredictable earnings, due in part to changing consumer tastes and intense competition. The industries have reacted strongly to technological developments and to the threat of government regulation. MEDICAL DELIVERY PORTFOLIO invests primarily in companies engaged in the ownership or management of hospitals, nursing homes, health maintenance organizations, and other companies specializing in the delivery of health care services. For example, the fund may invest in companies that operate acute care, psychiatric, teaching, or specialized treatment hospitals, as well as home health care providers, medical equipment suppliers, and companies that provide related services. Federal and state governments provide a substantial percentage of revenues to health care service providers via Medicare and Medicaid. These sources are subject to extensive governmental regulation, and appropriations are a continued source of debate. The administration is currently examining the health care industry to determine whether government funds are spent appropriately and to ensure that adequate health care is available to everyone. The demand for health care services should increase as the population ages. However, studies have shown the ability of health care providers to curtail unnecessary hospital stays and reduce costs. These changes could alter the health care industry, focusing it more on home care and placing less emphasis on inpatient revenues as a source of profit. 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. For example, the fund may invest in companies involved in the design and manufacture of medical equipment and devices, drug delivery technologies, hospital equipment and supplies, medical instrumentation and medical diagnostics. Companies in this industry may be affected by Patient considerations, rapid technological change and obsolescence, government regulation, and government reimbursement for medical expenses. MULTIMEDIA PORTFOLIO invests primarily in companies engaged in the development, production, sale, and distribution of goods or services used in the broadcast and media industries. The fund may invest in advertising companies; broadcasting companies; theaters; film studios; publishing, printing, cable television and video companies and equipment providers; companies involved in emerging technologies such as cellular communications; and other companies involved in the ownership, operation, or development of media products or services. Some of the companies in the broadcast and media industries are undergoing significant change because of federal deregulation of cable and broadcasting. As a result, competitive pressures are intense and the securities of these companies are subject to increased price volatility. Federal Communications Commission rules govern the concentration of investment in AM, FM, or TV stations, limiting investment alternatives. NATURAL GAS PORTFOLIO invests primarily in companies engaged in the production, transmission, and distribution of natural gas, and involved in the exploration of potential natural gas sources, as well as those companies that provide services and equipment to natural gas producers, refineries, cogeneration facilities, converters, and distributors. These companies may include, for example, companies participating in gas research, exploration, or refining, companies working toward technological advances in the natural gas field, and other companies providing products or services to the field. The companies in the natural gas field are subject to changes in price and supply of both conventional and alternative energy sources. Swift price and supply fluctuations may be caused by events relating to international politics, energy conservation, the success of energy source exploration projects, and tax and other regulatory policies of domestic and foreign governments. NATURAL RESOURCES PORTFOLIO invests primarily in companies that own or develop natural resources, or supply goods and services to such companies. These may include 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 commodi ties. The fund may also invest in precious metals and instruments w hose value is linked to the price of precious metals. Securities of companies in the natural resources sector are subject to swift price and supply fluctuations that may be caused by events relating to international political and economic developments, energy conservation, the success of exploration projects, and tax and other governmental regulatory policies. Investments in precious metals can present concerns such as delivery, storage and maintenance, possible illiquidity and the unavailability of accurate market valuations. 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. The fund may invest in diversified companies with operations in the aforementioned areas. For example, the fund may invest in paper production and office product companies, printers, and publishers. The success of these companies depends on the health of the economy, worldwide production capacity for the industry's products, and interest rate levels, which may affect product pricing, costs, and operating margins. These variables also affect the level of industry and consumer capital spending for paper and forest products. PRECIOUS METALS AND MINERALS PORTFOLIO invests primarily in companies engaged in exploration, mining, processing, or dealing in gold, silver, platinum, diamonds, or other precious metals and minerals. In addition to investments in those companies, the fund's focus includes investments in precious metals such as gold, silver, and platinum, coins, and securities indexed to the price of gold or other precious metals. The fund may also invest in companies that manufacture and distribute precious metals and minerals products (such as jewelry, watches, and metal foils and leaf) and companies that invest in other companies engaged in gold-related activities. The price of precious metals is affected by broad economic and political conditions. For example, the price of gold and other precious metal mining securities can face substantial short-term volatility caused by international monetary and political developments such as currency devaluations or revaluations, economic and social conditions within a country, or trade restrictions between countries. Because much of the world's gold reserves are located in South Africa, the social and economic conditions there can affect gold and gold-related companies located elsewhere. For the 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 the fund to hold or sell precious metals or securities when it would not otherwise do so. REGIONAL BANKS PORTFOLIO invests primarily in companies engaged in accepting deposits and making commercial and principally non-mortgage consumer loans. These companies concentrate their operations in a specific part of the country and may include, for example, state chartered banks, savings and loan institutions, and banks that are members of the Federal Reserve System. The fund may own securities of U.S. institutions whose deposits are not insured by the federal government. Legislation is currently being considered which would reduce the separation between commercial and investment banking businesses. If enacted this could significantly impact the industry and the fund. As the services offered by banks expand, banks are becoming more exposed to well-established competitors. This exposure has also increased due to the erosion of historical distinctions between regional banks and other financial institutions. Increased competition may result from the broadening of regional and national interstate banking powers, which has already reduced the number of publicly traded regional banks. In addition, general economic conditions are important to regional banks which face exposure to credit losses and dependence on interest rate activity. RETAILING PORTFOLIO invests primarily in companies engaged in merchandising finished goods and services primarily to individual consumers. These companies may include, for example, drug and department stores; suppliers of goods and services for homes, home improvements and yards; food, clothing, jewelry, electronics and computer retailers; motor vehicle and marine dealers; warehouse membership clubs; mail order operations; and companies involved in alternative selling methods. The success of retailing companies is closely tied to consumer spending, which is affected by general economic conditions and consumer confidence levels. The retailing industry is highly competitive, and a company's success is often tied to its ability to anticipate changing consumer tastes. SOFTWARE AND COMPUTER SERVICES PORTFOLIO invests primarily in companies engaged in research, design, production or distribution of products or processes that relate to software or information-based services. 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; and consulting, communications, and related services. Competitive pressures may have a significant effect on the financial condition of companies in the software and computer services industries. For example, an increasing number of companies and new product offerings can lead to price cuts and slower selling cycles. TECHNOLOGY PORTFOLIO invests primarily in companies which FMR believes have, or will develop, products, processes, or services that will provide or will benefit significantly from technological advances and improvements. 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. Competitive pressures may have a significant effect on the financial condition of companies in the technology sector. For example, if technology continues to advance at an accelerated rate, and the number of companies and product offerings continues to expand, these companies could become increasingly sensitive to short product cycles and aggressive pricing. TELECOMMUNICATIONS PORTFOLIO invests primarily in companies engaged in the development, manufacture, or sale of communications services or communications equipment. Companies in the telecommunications field may range from traditional local and long-distance telephone service or equipment providers to companies involved in new technologies such as cellular telephone or paging services, fiber-optics, and semiconductors. Telephone operating companies are subject to both federal and state regulations governing rates of return and services that may be offered. Many companies in the industry fiercely compete for market share. Although telephone companies usually pay an above-average dividend, the fund's investment decisions are primarily based on growth potential and not on income. TRANSPORTATION PORTFOLIO invests primarily in companies engaged in providing transportation services or companies engaged in the design, manufacture, distribution, or sale of transportation equipment. Transportation services may include, for example, companies involved in the movement of freight or people such as 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; and companies involved in leasing, maintenance, and transportation-related services. Transportation stocks are cyclical and have occasional sharp price movements which may result from changes in the economy, fuel prices, labor agreements, and insurance costs. The United States has been deregulating these industries, but it is uncertain whether this trend will continue and what its effect will be. 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. These may include, for example, companies that manufacture, produce, sell, or transmit gas or electric energy; water supply, waste disposal and sewerage, and sanitary service companies; and companies involved in telephone, satellite, and other communication fields. Public utility stocks have traditionally produced above-average dividend income, but the fund's investments are based on growth potential. The fund may not own more than 5% of the outstanding voting securities of more than one public utility company as defined by the Public Utility Holding Company Act of 1935. The public utilities industries may be subject to broad risks resulting from governmental regulation, financing difficulties, supply and demand of services or fuel, and special risks associated with natural resource conservation. MONEY MARKET PORTFOLIO seeks to earn a high level of current income while maintaining a stable $1.00 share price by investing in high-quality, short-term money market securities. The fund invests only in high-quality U.S. dollar-denominated money market securities of domestic and foreign issuers, including U.S. Government securities and repurchase agreements. The fund may also enter into reverse repurchase agreements. The fund earns income at current money market rates. It stresses preservation of capital, liquidity, and income, and does not seek the higher yields or capital appreciation that more aggressive investments may provide. The fund's yield will vary from day to day and generally reflects current short-term interest rates and other market conditions. The fund complies with industry-standard requirements for the quality, maturity, and diversification of its investments, which are designed to help maintain a stable $1.00 share price. Of course, there is no guarantee that the fund will maintain a stable $1.00 share price. The fund will purchase only high-quality securities that FMR believes present minimal credit risks and will observe maturity restrictions on securities it buys. In general, securities with longer maturities are more vulnerable to price changes, although they may provide higher yields. It is possible that a major change in interest rates or a default on the fund's investments could cause its share price (and the value of your investment) to change. SECURITIES AND INVESTMENT PRACTICES The following pages contain more detailed information about types of instruments in which a fund may invest, strategies FMR may employ in pursuit of a fund's investment objective, and a summary of related risks. Any restrictions listed supplement those discussed earlier in this section. A complete listing of each fund's limitations and more detailed information about each fund's investments are contained in the funds' SAI. Policies and limitations are considered at the time of purchase; the sale of instruments is not required in the event of a subsequent change in circumstances. FMR may not buy all of these instruments or use all of these techniques unless it believes that they are consistent with a fund's investment objective and policies and that doing so will help a fund achieve its goal. Fund holdings and recent investment strategies are detailed in each fund's financial reports, which are sent to shareholders twice a year. For a free SAI or financial report, call 1-800-544-8888. EQUITY SECURITIES may include common stocks, preferred stocks, convertible securities, and warrants. Common stocks, the most familiar type, represent an equity (ownership) interest in a corporation. Although equity securities have a history of long-term growth in value, their prices fluctuate based on changes in a company's financial condition and on overall market and economic conditions. Smaller companies are especially sensitive to these factors. RESTRICTIONS: With respect to 100% of total assets, each of Financial Services, Home Finance, and Regional Banks may not purchase more than 10% of the outstanding voting securities of a single issuer. Utilities Growth may not own more than 5% of the outstanding voting securities of more than one public utility company as defined by the Public Utility Holding Company Act of 1935. Each of Brokerage and Investment Management and Financial Services may not invest more than 5% of its total assets in the equity securities of any company that derives more than 15% of its revenues from brokerage or investment management activities. DEBT SECURITIES. Bonds and other debt instruments are used by issuers to borrow money from investors. The issuer generally pays the investor a fixed, variable or floating rate of interest, and must repay the amount borrowed at maturity. Some debt securities, such as zero coupon bonds, do not pay current interest, but are sold at a discount from their face values. Debt securities have varying levels of sensitivity to changes in interest rates and varying degrees of credit quality. In general, bond prices rise when interest rates fall, and fall when interest rates rise. Longer-term bonds and zero coupon bonds are generally more sensitive to interest rate changes. In addition, bond prices are also affected by the credit quality of the issuer. Investment-grade debt securities are medium- and high-quality securities. Some, however, may possess speculative characteristics, and may be more sensitive to economic changes and to changes in the financial condition of issuers. RESTRICTIONS: Purchase of a debt security is consistent with a stock fund's debt quality policy if it is rated at or above the stated level by Moody's Investors Service or rated in the equivalent categories by S&P, or is unrated but judged to be of equivalent quality by FMR. Each stock fund currently intends to limit its investments in lower than Baa-quality debt securities (sometimes called "junk bonds") to 5% of its assets. MONEY MARKET SECURITIES are high-quality, short-term instruments issued by the U.S. Government, corporations, financial institutions, and other entities. These securities may carry fixed, variable, or floating interest rates. Money market securities may be structured or may employ a trust or similar structure so that they are eligible investments for money market funds. If the structure does not perform as intended, adverse tax or investment consequences may result. U.S. GOVERNMENT MONEY MARKET SECURITIES are short-term debt instruments issued or guaranteed by the U.S. Treasury or by an agency or instrumentality of the U.S. Government. Not all U.S. Government securities are backed by the full faith and credit of the United States. For example, U.S. Government securities such as those issued by Fannie Mae are supported by the instrumentality's right to borrow money from the U.S. Treasury under certain circumstances. Other U.S. Government securities such as those issued by the Federal Farm Credit Banks Funding Corporation are supported only by the credit of the entity that issued them. CREDIT AND LIQUIDITY SUPPORT. Issuers may employ various forms of credit and liquidity enhancement, including letters of credit, guarantees, puts and demand features, and insurance, provided by foreign or domestic entities such as banks and other financial institutions. These arrangements expose a fund to the credit risk of the entity providing the credit or liquidity support. Changes in the credit quality of the provider could affect the value of the security and a fund's share price. EXPOSURE TO FOREIGN MARKETS. Foreign securities, foreign currencies, and securities issued by U.S. entities with substantial foreign operations may involve additional risks and considerations. These include risks relating to political, economic, or regulatory conditions in foreign countries; fluctuations in foreign currencies; withholding or other taxes; trading, settlement, custodial, and other operational risks; and the potentially less stringent investor protection and disclosure standards of foreign markets. 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. All of these factors can make foreign investments, especially those in emerging markets, more volatile and potentially less liquid than U.S. investments. ASSET-BACKED SECURITIES include interests in pools of mortgages, loans, receivables, or other assets. Payment of principal and interest may be largely dependent upon the cash flows generated by the assets backing the securities. VARIABLE AND FLOATING RATE SECURITIES have interest rates that are periodically adjusted either at specific intervals or whenever a benchmark rate changes. These interest rate adjustments are designed to help stabilize the security's 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. REPURCHASE AGREEMENTS. In a repurchase agreement, a fund buys a security at one price and simultaneously agrees to sell it back at a higher price. Delays or losses could result if the other party to the agreement defaults or becomes insolvent. REVERSE REPURCHASE AGREEMENTS. In a reverse repurchase agreement, a fund temporarily transfers possession of a portfolio instrument to another party in return for cash. This could increase the risk of fluctuation in the fund's yield or in the market value of its assets. OTHER MONEY MARKET SECURITIES may include commercial paper, certificates of deposit, bankers' acceptances, and time deposits. PUT FEATURES entitle the holder to put (sell back) a security to the issuer or another party. In exchange for this benefit, a fund may accept a lower interest rate. The credit quality of the investment may be affected by the creditworthiness of the put provider. Demand features, standby commitments, and tender options are types of put features. ADJUSTING INVESTMENT EXPOSURE. A fund can use various techniques to increase or decrease its exposure to changing security prices, interest rates, currency exchange rates, commodity prices, or other factors that affect security values. These techniques may involve derivative transactions such as buying and selling options and futures contracts, entering into currency exchange contracts or swap agreements, and purchasing indexed securities. FMR can use these practices to adjust the risk and return characteristics of a fund's portfolio of investments. If FMR judges market conditions incorrectly or employs a strategy that does not correlate well with a fund's investments, these techniques could result in a loss, regardless of whether the intent was to reduce risk or increase return. These techniques may increase the volatility of a fund and may involve a small investment of cash relative to the magnitude of the risk assumed. In addition, these techniques could result in a loss if the counterparty to the transaction does not perform as promised. ILLIQUID AND RESTRICTED SECURITIES. Some investments may be determined by FMR, under the supervision of the Board of Trustees, to be illiquid, which means that they may be difficult to sell promptly at an acceptable price. The sale of some illiquid securities and some other securities may be subject to legal restrictions. Difficulty in selling securities may result in a loss or may be costly to a fund. RESTRICTIONS: A fund may not purchase a security if, as a result, more than 10% of its assets would be invested in illiquid securities. WHEN-ISSUED AND FORWARD PURCHASE OR SALE TRANSACTIONS are trading practices in which payment and delivery for the security take place at a later date than is customary for that type of security. The market value of the security could change during this period. FINANCIAL SERVICES INDUSTRY. Companies in the financial services industry are subject to various risks related to that industry, such as government regulation, changes in interest rates, and exposure on loans, including loans to foreign borrowers. If a fund invests substantially in this industry, its performance may be affected by conditions affecting the industry. RESTRICTIONS: Under normal conditions, the money market fund intends to invest at least 25% of its assets in securities of companies in the financial services industry. OTHER INSTRUMENTS may include securities of closed-end investment companies and real estate-related instruments. CASH MANAGEMENT. A fund may invest in money market securities, in repurchase agreements, and in a money market fund available only to funds and accounts managed by FMR or its affiliates, whose goal is to seek a high level of current income while maintaining a stable $1.00 share price. A major change in interest rates or a default on the money market fund's investments could cause its share price to change. RESTRICTIONS: The money market fund does not currently intend to invest in a money market fund. DIVERSIFICATION. Diversifying a fund's investment portfolio can reduce the risks of investing. This may include limiting the amount of money invested in any one issuer or, on a broader scale, in any one industry. A fund that is not diversified may be more sensitive to changes in the market value of a single issuer or industry. RESTRICTIONS: The stock funds (except Financial Services, Home Finance, and Regional Banks) are considered non-diversified. Generally, to meet federal tax requirements at the close of each quarter, each stock fund does not invest more than 25% of its total assets in any one issuer and, with respect to 50% of total assets, does not invest more than 5% of its total assets in any one issuer. These limitations do not apply to U.S. Government securities or to securities of other investment companies. Each of Financial Services, Home Finance, and Regional Banks, with respect to 75% of its total assets, may not purchase a security if, as a result, more than 5% would be invested in the securities of any one issuer. This limitation does not apply to U.S. Government securities. The money market fund may not invest more than 5% of its total assets in any one issuer, except that it may invest up to 25% of its total assets in certain other money market funds and in the highest-quality securities of a single issuer for up to three business days. This limitation does not apply to U.S. Government securities . With the exception of American Gold, Business Services and Outsourcing, Cyclical Industries, Medical Equipment and Systems, Natural Resources, and Precious Metals and Minerals, each stock fund normally invests at least 80%, but always at least 25%, of its assets in securities of companies principally engaged in the business activities identified for that fund. Each of Natural Resources and Precious Metals and Minerals normally invests at least 80% of its assets in securities of companies principally engaged in the business activities identified for the fund, precious metals, and instruments whose value is linked to the price of precious metals. American Gold normally invests at least 80% of its assets in securities of North, Central, and South American companies engaged in gold-related activities, and in gold bullion or coins, and instruments whose value is linked to the price of gold. Each of American Gold and Precious Metals and Minerals invests at least 25% of its assets in securities of companies principally engaged in the business activities identified for the fund. Each of Business Services and Outsourcing, Cyclical Industries, and Medical Equipment and Systems normally invests at least 80% of its assets in securities of companies principally engaged in the business activities identified for the fund. Each of Business Services and Outsourcing, Cyclical Industries, Medical Equipment and Systems, and Natural Resources invests at least 25% of its total assets in securities of companies principally engaged in the business activities identified for the fund. BORROWING. Each fund may borrow from banks or from other funds advised by FMR, or through reverse repurchase agreements. If a stock fund borrows money, its share price may be subject to greater fluctuation until the borrowing is paid off. If a fund makes additional investments while borrowings are outstanding, this may be considered a form of leverage. RESTRICTIONS: Each fund may borrow only for temporary or emergency purposes, but not in an amount exceeding 331/3% of its total assets. The money market fund may borrow only for temporary or emergency purposes, or engage in reverse repurchase agreements, but not in an amount exceeding 331/3% of its total assets. LENDING securities to broker-dealers and institutions, including Fidelity Brokerage Services, Inc. (FBSI), an affiliate of FMR, is a means of earning income. This practice could result in a loss or a delay in recovering a fund's securities. A fund may also lend money to other funds advised by FMR. RESTRICTIONS: Loans, in the aggregate, may not exceed 331/3% of a fund's total assets. FUNDAMENTAL INVESTMENT POLICIES AND RESTRICTIONS Some of the policies and restrictions discussed on the preceding pages are fundamental, that is, subject to change only by shareholder approval. The following paragraphs restate all those that are fundamental. All policies stated throughout this prospectus, other than those identified in the following paragraphs, can be changed without shareholder approval. AIR TRANSPORTATION PORTFOLIO invests primarily in companies engaged in the regional, national and international movement of passengers, mail, and freight via aircraft. 1.AMERICAN GOLD PORTFOLIO invests primarily in companies engaged in exploration, mining, processing, or dealing in gold, or, to a lesser degree, in silver, platinum, diamonds, or other precious metals and minerals. AUTOMOTIVE PORTFOLIO invests primarily in companies engaged in the manufacture, marketing or sale of automobiles, trucks, specialty vehicles, parts, tires, and related services. BIOTECHNOLOGY PORTFOLIO invests primarily in companies engaged in the research, development, and manufacture of various biotechnological products, services and processes. 2.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 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. 3.FINANCIAL SERVICES PORTFOLIO invests primarily in companies that provide financial services to consumers and industry. With respect to 75% of total assets, the fund may not purchase a security if, as a result, more than 5% would be invested in the securities of any one issuer; and with respect to 100% of total assets, the fund may not purchase more than 10% of the outstanding voting securities of a single issuer. These limitations do not apply to U.S. Government securities. FOOD AND AGRICULTURE PORTFOLIO invests primarily in companies engaged in the manufacture, sale, or distribution of food and beverage products, agricultural products, and products related to the development of new food technologies. HEALTH CARE PORTFOLIO invests primarily in companies engaged in the design, manufacture, or sale of products or services used for or in connection with health care or medicine. HOME FINANCE PORTFOLIO invests primarily in companies engaged in investing in real estate, usually through mortgages and other consumer-related loans. With respect to 75% of total assets, the fund may not purchase a security if, as a result, more than 5% would be invested in the securities of any one issuer; and with respect to 100% of total assets, the fund may not purchase more than 10% of the outstanding voting securities of a single issuer. These limitations do not apply to U.S. Government securities. INDUSTRIAL EQUIPMENT PORTFOLIO invests primarily in companies engaged in the manufacture, distribution or service of products and equipment for the industrial sector, including integrated producers of capital equipment (such as general industry machinery, farm equipment, and computers), parts suppliers and subcontractors. INDUSTRIAL MATERIALS PORTFOLIO invests primarily in companies engaged in the manufacture, mining, processing, or distribution of raw materials and intermediate goods used in the industrial sector. INSURANCE PORTFOLIO invests primarily in companies engaged in underwriting, reinsuring, selling, distributing, or placing of property and casualty, life, or health insurance. LEISURE PORTFOLIO invests primarily in companies engaged in the design, production, or distribution of goods or services in the leisure industries. MEDICAL DELIVERY PORTFOLIO invests primarily in companies engaged in the ownership or management of hospitals, nursing homes, health maintenance organizations, and other companies specializing in the delivery of health care services. 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. 4.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. 5.PRECIOUS METALS AND MINERALS PORTFOLIO invests primarily in companies engaged in exploration, mining, processing or dealing in gold, silver, platinum, diamonds or other precious metals and minerals. REGIONAL BANKS PORTFOLIO invests primarily in companies engaged in accepting deposits and making commercial and principally non-mortgage consumer loans. With respect to 75% of total assets, the fund may not purchase a security if, as a result, more than 5% would be invested in the securities of any one issuer; and with respect to 100% of total assets, the fund may not purchase more than 10% of the outstanding voting securities of a single issuer. These limitations do not apply to U.S. Government securities. 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. At all times, 80% or more of the fund's assets will be invested in money market instruments. The fund will invest more than 25% of its total assets in the financial services industry. The fund may borrow only for temporary or emergency purposes, or engage in reverse repurchase agreements, but not in an amount exceeding 33% of its total assets. 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 American Gold and Precious Metals and Minerals, in certain precious metals. Normally, for each stock fund (except American Gold, Business Services and Outsourcing, Cyclical Industries, Medical Equi pment and Systems, Natural Resources, and Precious Metals and Minerals) at least 80%, and in no event less than 25%, of its assets will be invested in securities of companies principally engaged in the business activities identified for that fund. Normally at least 80% of American Gold's assets will be invested in securities of North, Central and South American companies engaged in gold-related activities, and in gold bullion or coins. Under normal conditions, Precious Metals and Minerals will invest at least 80% of its assets in (i) securities of companies principally engaged in exploration, mining, processing, or dealing in gold, silver, platinum, diamonds, or other precious metals and minerals, and (ii) precious metals. Each of American Gold and Precious Metals and Minerals invests at least 25% of its assets in securities of companies principally engaged in the business activities identified for the fund. Each of Business Services and Outsourcing, Cyclical Industries , Medical Equipment and Systems, a nd Natural Resources invests at least 25% of its total assets in securities of companies principally engaged in the business activities identified for the fund. For the purposes of the policies for each stock fund (except Business Services and Outsourcing, Cyclical Industries, Medical Equipment and Systems , and Natural Resources), a company is considered to be "principally engaged" in a designated business activity if at least 50% of its assets, gross income, or net profits are committed to, or derived from, that activity. For Brokerage and Investment Management and Financial Services, 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 those funds. For each stock fund (except Business Services and Outsourcing, Cyclical Industries, Medical Equipment and Systems, and Natural Resources), FMR does not pla ce 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 Equipme nt and Systems, and Natural Resources) may temporarily invest substantially in investment-grade debt securities. EACH STOCK FUND may borrow only for temporary or emergency purposes, but not in an amount exceeding 33% of its total assets. Loans, in the aggregate, for each fund, may not exceed 33% of total assets. BREAKDOWN OF EXPENSES Like all mutual funds, the funds pay fees related to their daily operations. Expenses paid out of a fund's assets are reflected in its share price or dividends; they are neither billed directly to shareholders nor deducted from shareholder accounts. Each fund pays a MANAGEMENT FEE to FMR for managing its investments and business affairs. FMR in turn pays fees to affiliates who provide assistance with these services. Each fund also pays OTHER EXPENSES, which are explained on page . FMR may, from time to time, agree to reimburse the funds for management fees and other expenses above a specified limit. FMR retains the ability to be repaid by a fund if expenses fall below the specified limit prior to the end of the fiscal year. Reimbursement arrangements, which may be terminated at any time without notice, can decrease a fund's expenses and boost its performance. MANAGEMENT FEE EACH STOCK FUND'S management fee is calculated and paid to FMR every month. The fee is calculated by adding a group fee rate to an individual fund fee rate, dividing by twelve, and multiplying the result by the respective fund's average net assets throughout the month. THE MONEY MARKET FUND'S management fee is calculated and paid to FMR every month. 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 group fee rate is based on the average net assets of all the mutual funds advised by FMR. This rate cannot use 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 1998, the group fee rate for the stock funds was 0.2917%, and the group fee rate for the money market fund was 0.1357%. The individual fund fee rate for each stock fund is 0.30%. The individual fund fee rate for the money market fund is 0.03%. The income-based fee for the money market fund is 6% of the fund's gross income in excess of a 5% yield and cannot rise above 0.24% of the fund's average net assets. The total management fee for each fund, as a percentage of each fund's average net assets for the fiscal year ended February 28, 1998, is shown in the table on page . FMR HAS SUB-ADVISORY AGREEMENTS with FMR U.K. and FMR Far East on behalf of each stock fund (except American Gold Portfolio). These sub-advisers provide FMR with investment research and advice on issuers based outside the United States. Under the sub-advisory agreements, FMR pays FMR U.K. and FMR Far East fees equal to 110% and 105%, respectively, of the costs of providing these services. The sub-advisers may also provide investment management services. In return, FMR pays FMR U.K. and FMR Far East a fee equal to 50% of its management fee rate with respect to a fund's investments that the sub-adviser manages on a discretionary basis. FIMM is the money market fund's sub-adviser and has primary responsibility for managing its investments. FMR is responsible for providing other management services. FMR pays FIMM 50% of its management fee (before expense reimbursements) for FIMM's services. FMR paid FMR Texas Inc., the predecessor company to FIMM, a fee equal to 0. 11 % of the money market fund's average net assets for the fiscal year ended February 1998. OTHER EXPENSES While the management fee is a significant component of the funds' annual operating costs, the funds have other expenses as well. The funds contract with FSC to perform transfer agency, dividend disbursing, shareholder servicing, and accounting functions. These services include processing shareholder transactions, valuing each fund's investments, handling securities loans for the stock funds, and calculating each fund's share price and dividends. For the fiscal year ended February 1998, transfer agency and pricing and bookkeeping fees paid (as a percentage of average net assets) are shown on page . These amounts are before expense reductions, if any . Each fund also pays other expenses, such as legal, audit, and custodian fees; in some instances, proxy solicitation costs; and the compensation of trustees who are not affiliated with Fidelity. A broker-dealer may use a portion of the commissions paid by a fund to reduce that fund's custodian or transfer agent fees. For the fiscal year ended February 1998, the portfolio turnover rates for each fund (except Business Services and Outsourcing, Medical Equip m ent and Systems, and the money market fund) are shown in t h e table on page . The annualized portfolio turnover rate for Business S e rvices and Outsourcing was 36%. The portfolio turnover rate for Medical Equipment and Systems is not expected to exceed 200% for its first fiscal period. These rates vary from year to year. High turnover rates increase transaction costs and may increase taxable capital gains. FMR considers these effects when evaluating the anticipated benefits of short-term investing.
6.Fund Management Fees Transfer Agency and Pricing and Portfolio Turnover Rate Bookkeeping Fees Paid by Fund Air Transportation 0.60% 1.10% 294% American Gold 0.60% 0.89% 89% Automotive 0.59% 0.91% 153% Biotechnology 0.60% 0.86% 162% Brokerage and Investment Management 0.60% 0.71% 100% Chemicals 0.60% 1.00% 31% Computers 0.60% 0.76% 333% Construction and Housing 0.60% 1.64% 404% Consumer Industries 0.61% 1.08% 199% Cyclical Industries 0.59%A 2.49%A 140%A Defense and Aerospace 0.60% 1.02% 311% Developing Communications 0.60% 0.97% 383% Electronics 0.60% 0.55% 435% Energy 0.59% 0.92% 115% Energy Service 0.59% 0.60% 78% Environmental Services 0.60% 1.42% 59% Financial Services 0.60% 0.67% 84% Food and Agriculture 0.60% 0.85% 74% Health Care 0.60% 0.56% 79% Home Finance 0.60% 0.58% 54% Industrial Equipment 0.60% 0.96% 115% Industrial Materials 0.60% 1.19% 118% Insurance 0.60% 0.76% 157% Leisure 0.60% 0.75% 209% Medical Delivery 0.60% 0.91% 109% Multimedia 0.60% 1.00% 219% Natural Gas 0.59% 1.13% 118% Natural Resources 0.60%A 1.69%A 165%A Paper and Forest Products 0.60% 1.30% 235% Precious Metals and Minerals 0.60% 1.11% 84% Regional Banks 0.60% 0.63% 25% Retailing 0.60% 0.88% 308% Software and Computer Services 0.60% 0.81% 145% Technology 0.60% 0.72% 556% Telecommunications 0.60% 0.85% 157% Transportation 0.59% 0.84% 210% Utilities Growth 0.60% 0.68% 78% Money Market 0.21% 0.26% n/a
A ANNUALIZED YOUR ACCOUNT DOING BUSINESS WITH FIDELITY Fidelity Investments was established in 1946 to manage one of America's first mutual funds. Today, Fidelity is the largest mutual fund company in the country, and is known as an innovative provider of high-quality financial services to individuals and institutions. In addition to its mutual fund business, the company operates one of America's leading discount brokerage firms, FBSI. Fidelity is also a leader in providing tax-advantaged retirement plans for individuals investing on their own or through their employer. Fidelity is committed to providing investors with practical information to make investment decisions. Based in Boston, Fidelity provides customers with complete service 24 hours a day, 365 days a year, through a network of telephone service centers around the country and Fidelity's web site . To reach Fidelity for general information, call these numbers: (small solid bullet) For mutual funds, 1-800-544-8888 (small solid bullet) For brokerage, 1-800-544-7272 If you would prefer to speak with a representative in person, Fidelity has over 80 walk-in Investor Centers across the country. If you would prefer to access information on - line, you can visit Fidelity's W eb site at www.fidelity.com . TYPES OF ACCOUNTS You may set up an account directly in a fund or, if you own or intend to purchase individual securities as part of your total investment portfolio, you may consider investing in a fund through a brokerage account. You may purchase or sell shares of the funds through an investment professional, including a broker, who may charge you a transaction fee for this service. If you invest through FBSI, another financial institution, or an investment professional, read their program materials for any special provisions, additional service features or fees that may apply to your investment in a fund. Certain features of a fund, such as the minimum initial or subsequent investment amounts, may be modified. The different ways to set up (register) your account with Fidelity are listed in the table that follows. The account guidelines that follow may not apply to certain retirement accounts. If you are investing through a retirement account or if your employer offers the funds through a retirement program, you may be subject to additional fees. For more information, please refer to your program materials, contact your employer, call your retirement benefits number , visit Fidelity's Web site at www.fidelity.com, or contact Fidelity directly, as appropriate. FIDELITY FACTS Fidelity offers the broadest selection of mutual funds in the world. (solid bullet) Number of Fidelity mutual funds: over 223 (solid bullet) Assets in Fidelity mutual funds: over $ 568 billion (solid bullet) Number of shareholder accounts: over 36 million (solid bullet) Number of investment analysts and portfolio managers: over 265 (checkmark) WAYS TO SET UP YOUR ACCOUNT INDIVIDUAL OR JOINT TENANT FOR YOUR GENERAL INVESTMENT NEEDS Individual accounts are owned by one person. Joint accounts can have two or more owners (tenants). RETIREMENT FOR TAX-ADVANTAGED RETIREMENT SAVINGS Retirement plans provide individuals with tax-advantaged ways to save for retirement, either with tax-deductible contributions or tax-free growth. Retirement accounts require special applications and typically have lower minimums. (solid bullet) TRADITIONAL INDIVIDUAL RETIREMENT ACCOUNTS (IRAS) allow individuals under 70 with compensation to contribute up to $2,000 per tax year. Married couples can contribute $4,000 per tax year, provided no more than $2,000 is contributed on behalf of either spouse. (These limits are aggregated for traditional and Roth IRAs.) Contributions may be tax-deductible, subject to certain limits. (solid bullet) ROTH IRAS allow individuals to make non-deductible contributions of up to $2,000 per tax year. Married couples can contribute up to $4,000 per tax year, provided no more than $2,000 is contributed on behalf of either spouse. (These limits are aggregated for Traditional and Roth IRAs.) Eligibility is subject to certain income limits. Qualified distributions are tax-free. (solid bullet) ROTH CONVERSION IRAS allow individuals to assets held in a Traditional IRA or Rollover IRA to convert those assets to a Roth Conversion IRA. Eligibility is subject to certain income limits. Qualified distributions are tax-free. (solid bullet) ROLLOVER IRAS help retain special tax advantages for certain eligible rollover distributions from employer-sponsored retirement plans. (solid bullet) PROFIT SHARING AND MONEY PURCHASE PENSION PLANS (KEOGHS) allow self-employed individuals or small business owners to make tax-deductible contributions for themselves and any eligible employees. (solid bullet) SIMPLIFIED EMPLOYEE PENSION PLANS (SEP-IRAS) provide small business owners or those with self-employment income (and their eligible employees) with many of the same advantages as a Keogh, but with fewer administrative requirements. (solid bullet) SALARY REDUCTION SEP-IRAS (SARSEPS) allow employees of businesses with 25 or fewer employees to contribute a percentage of their wages on a tax-deferred basis. These plans must have been established by their employer prior to January 1, 1997. (solid bullet) SIMPLE IRAS provide small business owners and those with self-employment income (and their eligible employees) with many of the advantages of a 401(k) plan, but with fewer administrative requirements. (solid bullet) 403(B) CUSTODIAL ACCOUNTS are available to employees of 501(c)(3) tax-exempt institutions, including schools, hospitals, and other charitable organizations. (solid bullet) 401(K) PROGRAMS allow employees of organizations of all sizes to contribute a percentage of their wages on a tax-deferred basis. These accounts need to be established by the trustee of the plan. (solid bullet) DEFERRED COMPENSATION PLANS (457 PLANS) are available to employees of most state and local governments and their agencies and to employees of tax-exempt institutions. GIFTS OR TRANSFERS TO A MINOR (UGMA, UTMA) TO INVEST FOR A CHILD'S EDUCATION OR OTHER FUTURE NEEDS These custodial accounts provide a way to give money to a child and obtain tax benefits. An individual can give up to $10,000 a year per child without paying federal gift tax. Depending on state laws, you can set up a custodial account under the Uniform Gifts to Minors Act (UGMA) or the Uniform Transfers to Minors Act (UTMA). TRUST FOR MONEY BEING INVESTED BY A TRUST The trust must be established before an account can be opened. BUSINESS OR ORGANIZATION FOR INVESTMENT NEEDS OF CORPORATIONS, ASSOCIATIONS, PARTNERSHIPS, OR OTHER GROUPS Requires a special application. HOW TO BUY SHARES THE PRICE TO BUY ONE SHARE of each fund is the fund's offering price or the fund's net asset value per share (NAV), depending on whether you pay a sales charge. The money market fund is managed to keep its NAV stable at $1.00. 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. See "Sales Charge Reductions and Waivers," page , for an explanation of how and when the sales charge and waivers apply. Your shares will be purchased at the next offering price or NAV, as applicable, calculated after your investment is received in proper form. Each fund's offering price and NAV are normally calculated hourly, each business day, from 10:00 a.m. to 4:00 p.m. Eastern time. Each fund reserves the right to reject any specific purchase order, including certain purchases by exchange. See "Exchange Restrictions" on page . Purchase orders may be refused if, in FMR's opinion, they would disrupt management of a fund. IF YOU ARE NEW TO FIDELITY, complete and sign an account application and mail it along with your check. You may also open your account in person or by wire as described on page . If there is no application accompanying this prospectus, call 1-800-544-8888, or visit Fidelity's Web site at www.fidelity.com for an application. IF YOU ALREADY HAVE MONEY INVESTED IN A FIDELITY FUND, you can: (small solid bullet) Mail in an application with a check, or (small solid bullet) Open your account by exchanging from another Fidelity fund. IF YOU ARE INVESTING THROUGH A TAX-ADVANTAGED RETIREMENT PLAN, such as an IRA, for the first time, you will need a special application. Retirement investing also involves its own investment procedures. Call 1-800-544-8888 or visit Fidelity's Web site at www.fidelity.com for more information and a retirement application. If you buy shares by check or Fidelity Money Line(registered trademark), and then sell those shares by any method other than by exchange to another Fidelity fund, the payment may be delayed for up to seven business days to ensure that your previous investment has cleared. KEY INFORMATION
PHONE 1-800-544-7777 (SOLID BULLET) TO OPEN AN ACCOUNT, EXCHANGE FROM ANOTHER FIDELITY FUND ACCOUNT WITH THE SAME REGISTRATION, INCLUDING NAME, ADDRESS, AND TAXPAYER ID NUMBER. (SOLID BULLET) TO ADD TO AN ACCOUNT, EXCHANGE FROM ANOTHER FIDELITY FUND ACCOUNT WITH THE SAME REGISTRATION, INCLUDING NAME, ADDRESS, AND TAXPAYER ID NUMBER. YOU CAN ALSO USE FIDELITY MONEY LINE TO TRANSFER FROM YOUR BANK ACCOUNT. CALL BEFORE YOUR FIRST USE TO VERIFY THAT THIS SERVICE IS IN PLACE ON YOUR ACCOUNT. MAXIMUM MONEY LINE: UP TO $100,000 INTERNET WWW.FIDELITY.COM (SOLID BULLET) TO OPEN AN ACCOUNT, COMPLETE AND SIGN THE APPLICATION. MAKE YOUR CHECK PAYABLE TO THE COMPLETE NAME OF THE FUND. MAIL TO THE ADDRESS INDICATED ON THE APPLICATION. (SOLID BULLET) T O ADD TO AN ACCOUNT, EXCHANGE FROM ANOTHER FIDELITY FUND ACCOUNT WITH THE SAME REGISTRATION, INCLUDING NAME, ADDRESS, AND TAXPAYER ID NUMBER. YOU CAN ALSO USE FIDELITY MONEY LINE TO TRANSFER FROM YOUR BANK ACCOUNT. VISIT FIDELITY'S WEB SITE BEFORE YOUR FIRST USE TO VERIFY THAT THIS SERVICE IS IN PLACE ON YOUR ACCOUNT. MAXIMUM MONEY LINE: UP TO $100,000. MAIL (SOLID BULLET) T O OPEN AN ACCOUNT, COMPLETE AND SIGN THE APPLICATION. MAKE YOUR CHECK PAYABLE TO FIDELITY SELECT PORTFOLIOS AND SPECIFY THE FUND YOU ARE INVESTING IN ON THE APPLICATION. MAIL TO THE ADDRESS INDICATED ON THE APPLICATION. (SOLID BULLET) TO ADD TO AN ACCOUNT, MAKE YOUR CHECK PAYABLE TO THE COMPLETE NAME OF THE FUND OF YOUR CHOICE. INDICATE YOUR FUND ACCOUNT NUMBER ON YOUR CHECK AND MAIL TO THE ADDRESS PRINTED ON YOUR ACCOUNT STATEMENT. IN PERSON (SOLID BULLET) TO OPEN AN ACCOUNT, BRING YOUR APPLICATION AND CHECK TO A FIDELITY INVESTOR CENTER. CALL 1-800-544-9797 FOR THE CENTER NEAREST YOU. (SOLID BULLET) TO ADD TO AN ACCOUNT, BRING YOUR CHECK TO A FIDELITY INVESTOR CENTER. CALL 1-800-544-9797 FOR THE CENTER NEAREST YOU. (SOLID BULLET) ORDERS WILL BE EXECUTED AT THE NEXT HOURLY PRICE DETERMINED AFTER YOUR INVESTMENT IS RECEIVED IN PROPER FORM. WIRE NOT AVAILABLE FOR RETIREMENT ACCOUNTS. (SOLID BULLET) TO OPEN AN ACCOUNT, CALL 1-800-544-7777 TO SET UP YOUR ACCOUNT AND TO ARRANGE A WIRE TRANSACTION. WIRE WITHIN 24 HOURS TO THE WIRE ADDRESS BELOW. SPECIFY THE COMPLETE NAME OF THE FUND AND INCLUDE YOUR NEW ACCOUNT NUMBER AND YOUR NAME. (SOLID BULLET) TO ADD TO AN ACCOUNT, WIRE TO THE WIRE ADDRESS BELOW. SPECIFY THE COMPLETE NAME OF THE FUND AND INCLUDE YOUR ACCOUNT NUMBER AND YOUR NAME. (SOLID BULLET) WIRE ADDRESS: BANKERS TRUST COMPANY, BANK ROUTING #021001033, ACCOUNT # 00163053. AUTOMATICALLY NEW ACCOUNTS CANNOT BE OPENED WITH THESE SERVICES. (SOLID BULLET) USE FIDELITY AUTOMATIC ACCOUNT BUILDER OR DIRECT DEPOSIT TO AUTOMATICALLY PURCHASE MORE SHARES. SIGN UP FOR THESE SERVICES WHEN OPENING YOUR ACCOUNT, VISIT FIDELITY'S WEB SITE AT WWW.FIDELITY.COM TO OBTAIN THE FORM TO ADD THESE SERVICES, OR CALL 1-800-544-6666 TO ADD THESE SERVICES . DIRECT DEPOSIT IS NOT AVAILABLE FOR SELECT STOCK FUNDS OR FOR RETIREMENT ACCOUNTS. (SOLID BULLET) USE DIRECTED DIVIDENDS OR FIDELITY AUTOMATIC EXCHANGE SERVICE TO AUTOMATICALLY SEND MONEY FROM ONE FIDELITY FUND INTO ANOTHER. CALL 1-800-544-6666 FOR INSTRUCTIONS.
(TDD_GRAPHIC) TDD - SERVICE FOR THE DEAF AND HEARING-IMPAIRED: 1-800-544-0118 MINIMUM INVESTMENTS TO OPEN AN ACCOUNT $2,500 For certain Fidelity retirement accounts(double dagger) $500 TO ADD TO AN ACCOUNT $250 For certain Fidelity retirement accounts(double dagger) $250 Through regular investment plans* $100 MINIMUM BALANCE $2,000 For certain Fidelity retirement accounts(double dagger) $500 (double dagger)THESE LOWER MINIMUMS APPLY TO FIDELITY TRADITIONAL IRA, ROTH IRA, ROTH CONVERSION IRA, ROLLOVER IRA, SEP-IRA, AND KEOGH ACCOUNTS. *FOR MORE INFORMATION ABOUT REGULAR INVESTMENT PLANS, PLEASE REFER TO "INVESTOR SERVICES," PAGE . These minimums may vary for investments through Fidelity Portfolio Advisory Services. There is no minimum account balance or initial or subsequent investment minimum for certain retirement accounts funded through salary deduction, or accounts opened with the proceeds of distributions from Fidelity retirement accounts. Refer to the program materials for details. UNDERSTANDING OFFERING PRICE LET'S SAY YOU INVEST $2,500 AT AN OFFERING PRICE OF $10. OF THE $10 OFFERING PRICE, 3 .00 % ($ 0 .30) IS THE SALES CHARGE, AND 97% ($9.70) REPRESENTS THE NAV. THE VALUE OF YOUR INITIAL INVESTMENT WILL BE $2,425 (250 SHARES WORTH $9.70 EACH), AND YOU WILL HAVE PAID A SALES CHARGE OF $75. (CHECKMARK) $2,500 INVESTMENT ROW: 1, COL: 1, VALUE: 25.0 ROW: 1, COL: 2, VALUE: 75.0 ROW: 1, COL: 3, VALUE: 75.0 ROW: 1, COL: 4, VALUE: 75.0 ROW: 1, COL: 5, VALUE: 75.0 ROW: 1, COL: 6, VALUE: 75.0 ROW: 1, COL: 7, VALUE: 75.0 ROW: 1, COL: 8, VALUE: 75.0 ROW: 1, COL: 9, VALUE: 75.0 ROW: 1, COL: 10, VALUE: 75.0 ROW: 1, COL: 11, VALUE: 75.0 ROW: 1, COL: 12, VALUE: 75.0 ROW: 1, COL: 13, VALUE: 75.0 ROW: 1, COL: 14, VALUE: 75.0 ROW: 1, COL: 15, VALUE: 75.0 ROW: 1, COL: 16, VALUE: 75.0 ROW: 1, COL: 17, VALUE: 75.0 ROW: 1, COL: 18, VALUE: 75.0 ROW: 1, COL: 19, VALUE: 75.0 ROW: 1, COL: 20, VALUE: 75.0 ROW: 1, COL: 21, VALUE: 75.0 ROW: 1, COL: 22, VALUE: 75.0 ROW: 1, COL: 23, VALUE: 75.0 ROW: 1, COL: 24, VALUE: 75.0 ROW: 1, COL: 25, VALUE: 75.0 ROW: 1, COL: 26, VALUE: 75.0 ROW: 1, COL: 27, VALUE: 75.0 ROW: 1, COL: 28, VALUE: 75.0 ROW: 1, COL: 29, VALUE: 75.0 ROW: 1, COL: 30, VALUE: 75.0 ROW: 1, COL: 31, VALUE: 75.0 ROW: 1, COL: 32, VALUE: 75.0 ROW: 1, COL: 33, VALUE: 75.0 ROW: 1, COL: 34, VALUE: 75.0 3.00% SALES CHARGE = $75 VALUE OF INVESTMENT = $2,425 HOW TO SELL SHARES You can arrange to take money out of your fund account at any time by selling (redeeming) some or all of your shares. 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 trading fee. If you sell shares of a stock fund after holding them 29 days or less, the fund will deduct a trading fee equal to 0.75% of the value of those shares. If you sell shares of a stock fund after holding them 30 days or more, the fund will deduct a trading fee equal to the lesser of $7.50 or 0.75% of the value of those shares. In addition, you may pay a $7.50 fee for each exchange out of a stock fund. Your shares will be sold at the next NAV calculated after your order is received in proper form, minus the applicable trading fee. Each fund's NAV is normally calculated hourly, each business day, from 10:00 a.m. to 4:00 p.m. Eastern time. TO SELL SHARES IN A NON-RETIREMENT ACCOUNT, you may use any of the methods described on these two pages. TO SELL SHARES IN A FIDELITY RETIREMENT ACCOUNT, your request must be made in writing, except for exchanges to other Fidelity funds, which can be requested by phone , in writing , or through Fidelity's Web site . Call 1-800-544-6666 for a retirement distribution form. 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). TO SELL SHARES BY BANK WIRE OR FIDELITY MONEY LINE, you will need to sign up for these services in advance. CERTAIN REQUESTS MUST INCLUDE A SIGNATURE GUARANTEE. It is designed to protect you and Fidelity from fraud. Your request must be made in writing and include a signature guarantee if any of the following situations apply: (small solid bullet) You wish to redeem more than $100,000 worth of shares, (small solid bullet) Your account registration has changed within the last 30 days, (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. FEES AND KEY INFORMATION IF YOU SELL SHARES OF A STOCK FUND AFTER HOLDING THEM 29 DAYS OR LESS, THE FUND WILL DEDUCT A TRADING FEE EQUAL TO 0.75% OF THE VALUE OF THOSE SHARES. IF YOU SELL SHARES OF A STOCK FUND AFTER HOLDING THEM 30 DAYS OR MORE, THE FUND WILL DEDUCT A TRADING FEE EQUAL TO THE LESSER OF $7.50 OR 0.75% OF THE VALUE OF THOSE SHARES . IN ADDITION, YOU MAY PAY A $7.50 FEE FOR EACH EXCHANGE OUT OF A STOCK FUND.
PHONE 1-800-544-7777 ALL ACCOUNT TYPES EXCEPT RETIREMENT (SOLID BULLET) MAXIMUM CHECK REQUEST: $100,000. (SOLID BULLET) FOR MONEY LINE TRANSFERS TO YOUR BANK ACCOUNT; MINIMUM: $10; MAXIMUM: U P TO $100,000. ALL ACCOUNT TYPES (SOLID BULLET) YOU MAY EXCHANGE TO OTHER FIDELITY FUNDS IF BOTH ACCOUNTS ARE REGISTERED WITH THE SAME NAME(S), ADDRESS, AND TAXPAYER ID NUMBER. MAIL OR IN PERSON INDIVIDUAL, JOINT TENANT, SOLE PROPRIETORSHIP, UGMA, UTMA (SOLID BULLET) THE LETTER OF INSTRUCTION MUST BE SIGNED BY ALL PERSONS REQUIRED TO SIGN FOR TRANSACTIONS, EXACTLY AS THEIR NAMES APPEAR ON THE ACCOUNT. RETIREMENT ACCOUNT (SOLID BULLET) THE ACCOUNT OWNER SHOULD COMPLETE A RETIREMENT DISTRIBUTION FORM. CALL 1-800-544-6666 TO REQUEST ONE. TRUST (SOLID BULLET) THE TRUSTEE MUST SIGN THE LETTER INDICATING CAPACITY AS TRUSTEE. IF THE TRUSTEE'S NAME IS NOT IN THE ACCOUNT REGISTRATION, PROVIDE A COPY OF THE TRUST DOCUMENT CERTIFIED WITHIN THE LAST 60 DAYS. BUSINESS OR ORGANIZATION (SOLID BULLET) AT LEAST ONE PERSON AUTHORIZED BY CORPORATE RESOLUTION TO ACT ON THE ACCOUNT MUST SIGN THE LETTER. (SOLID BULLET) INCLUDE A CORPORATE RESOLUTION WITH CORPORATE SEAL OR A SIGNATURE GUARANTEE. EXECUTOR, ADMINISTRATOR, CONSERVATOR, GUARDIAN (SOLID BULLET) CALL 1-800-544-6666 FOR INSTRUCTIONS. WIRE ALL ACCOUNT TYPES EXCEPT RETIREMENT (SOLID BULLET) YOU MUST SIGN UP FOR THE WIRE FEATURE BEFORE USING IT. TO VERIFY THAT IT IS IN PLACE, CALL 1-800-544-6666. MINIMUM WIRE: $5,000. (SOLID BULLET) YOUR WIRE REDEMPTION REQUEST MUST BE RECEIVED IN PROPER FORM BY FIDELITY BEFORE 4 :00 P.M. EASTERN TIME FOR MONEY TO BE WIRED ON THE NEXT BUSINESS DAY.
(TDD_GRAPHIC) TDD - SERVICE FOR THE DEAF AND HEARING-IMPAIRED: 1-800-544-0118 SELLING SHARES IN WRITING Write a "letter of instruction" with: (small solid bullet) Your name, (small solid bullet) The fund's name, (small solid bullet) Your fund account number, (small solid bullet) The dollar amount or number of shares to be redeemed, and (small solid bullet) Any other applicable requirements listed in the table that follows. Unless otherwise instructed, Fidelity will send a check to the record address. Deliver your letter to a Fidelity Investor Center, or mail it to: Fidelity Investments P.O. Box 660602 Dallas, TX 75266-0602 INVESTOR SERVICES Fidelity provides a variety of services to help you manage your account. INFORMATION SERVICES FIDELITY'S TELEPHONE REPRESENTATIVES are available 24 hours a day, 365 days a year. Whenever you call, you can speak with someone equipped to provide the information or service you need. FIDELITY'S WEB SITE at www.fidelity.com offers product and servicing information, customer education, planning tools, and the ability to make certain transactions in your account. STATEMENTS AND REPORTS that Fidelity sends to you include the following: (small solid bullet) Confirmation statements (after every transaction, except reinvestments, that affects your account balance or your account registration) (small solid bullet) Account statements (quarterly) (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 the fund. Call 1-800-544-6666 if you need copies of financial reports, prospectuses, or historical account information. Electronic copies of most financial reports and prospectuses are available at Fidelity's Web site. To participate in our electronic delivery program, call 1-800-544-6666 or visit Fidelity's Web site at www.fidelity.com for more information. 24-HOUR SERVICE ACCOUNT ASSISTANCE 1-800-544-6666 ACCOUNT TRANSACTIONS 1-800-544-7777 PRODUCT INFORMATION 1-800-544-8888 RETIREMENT ACCOUNT ASSISTANCE 1-800-544-4774 TOUCHTONE XPRESSSM 1-800-544-5555 WEB SITE WWW.FIDELITY.COM AUTOMATED SERVICE (CHECKMARK) TRANSACTION SERVICES EXCHANGE PRIVILEGE. You may sell your fund shares and buy shares of other Fidelity funds by telephone , in writing, or through Fidelity's Web site . The shares you exchange will carry credit for any sales charge you previously paid in connection with their purchase. 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. This fee would apply in addition to the trading fee which you pay every time you sell your stock fund shares. For exchanges made by mail or phone, orders are executed: (small solid bullet) Between Select funds or from a Fidelity money market fund generally at the next hourly price calculated after your order is received in proper form. (small solid bullet) From another Fidelity stock or bond fund, generally at the 4:00 p.m. price calculated after your order is received in proper form. Note that exchanges between Select funds are unlimited, but exchanges out of the Select funds to other Fidelity funds are limited to four per calendar year. Exchanges may have tax consequences for you. For details on policies and restrictions governing exchanges, including circumstances under which a shareholder's exchange privilege may be suspended or revoked, see "Exchange Restrictions," page . SYSTEMATIC WITHDRAWAL PLANS let you set up periodic redemptions from your account. Because of the funds' sales charge, you may not want to set up a systematic withdrawal plan during a period when you are buying shares on a regular basis. FIDELITY MONEY LINE(registered trademark) enables you to transfer money by phone between your bank account and your fund account. Most transfers are complete within three business days of your call. REGULAR INVESTMENT PLANS One easy way to pursue your financial goals is to invest money regularly. Fidelity offers convenient services that let you transfer money into your fund account, or between fund accounts, automatically. While regular investment plans do not guarantee a profit and will not protect you against loss in a declining market, they can be an excellent way to invest for retirement, a home, educational expenses, and other long-term financial goals. Certain restrictions apply for retirement accounts. Call 1-800-544-6666 or visit Fidelity's Web site at www.fidelity.com for more information. REGULAR INVESTMENT PLANS FIDELITY AUTOMATIC ACCOUNT BUILDERSM TO MOVE MONEY FROM YOUR BANK ACCOUNT TO A FIDELITY FUND
MINIMUM FREQUENCY SETTING UP OR CHANGING $100 MONTHLY OR QUARTERLY (SMALL SOLID BULLET) FOR A NEW ACCOUNT, COMPLETE THE APPROPRIATE SECTION ON THE FUND APPLICATION. (SMALL SOLID BULLET) FOR EXISTING ACCOUNTS, CALL 1-800-544-6666 OR VISIT FIDELITY'S WEB SITE AT WWW.FIDELITY.COM FOR AN APPLICATION. (SMALL SOLID BULLET) TO CHANGE THE AMOUNT OR FREQUENCY OF YOUR INVESTMENT, CALL 1-800-544-6666 AT LEAST THREE BUSINESS DAYS PRIOR TO YOUR NEXT SCHEDULED INVESTMENT DATE.
DIRECT DEPOSIT TO SEND ALL OR A PORTION OF YOUR PAYCHECK OR GOVERNMENT CHECK TO A FIDELITY FUND
MINIMUM FREQUENCY SETTING UP OR CHANGING $100 EVERY PAY PERIOD (SMALL SOLID BULLET) NOT AVAILABLE FOR SELECT STOCK FUNDS OR RETIREMENT ACCOUNTS. (SMALL SOLID BULLET) CHECK THE APPROPRIATE BOX ON THE FUND APPLICATION, OR CALL 1-800-544-6666 OR VISIT FIDELITY'S WEB SITE AT WWW.FIDELITY.COM FOR AN AUTHORIZATION FORM. (SMALL SOLID BULLET) CHANGES REQUIRE A NEW AUTHORIZATION FORM.
FIDELITY AUTOMATIC EXCHANGE SERVICE TO MOVE MONEY FROM A FIDELITY MONEY MARKET FUND TO ANOTHER FIDELITY FUND
MINIMUM FREQUENCY SETTING UP OR CHANGING $100 Monthly, (small solid bullet) Check the appropriate box on the fund application, or call 1-800-544-6666 for an authorization form. bimonthly, (small solid bullet) To change the amount or frequency of your investment, call 1-800-544-6666. quarterly, or annually
SHAREHOLDER AND ACCOUNT POLICIES DIVIDENDS, CAPITAL GAINS, AND TAXES Each stock fund distributes substantially all of its net income and capital gains to shareholders each year. Normally, dividends and capital gains are distributed in April and December. Income dividends for the money market fund are declared daily and paid monthly. DISTRIBUTION OPTIONS When you open an account, specify on your application how you want to receive your distributions. If the option you prefer is not listed on the application, call 1-800-544-6666 for instructions. The stock funds offer four options, and the money market fund offers three options. 1. REINVESTMENT OPTION. Your dividend and capital gain distributions will be automatically reinvested in additional shares of the fund. If you do not indicate a choice on your application, you will be assigned this option. 2. INCOME-EARNED OPTION. (stock funds only) Your capital gain distributions will be automatically reinvested, but you will be sent a check for each dividend distribution. 3. CASH OPTION. You will be sent a check for your dividend and capital gain distributions. 4. DIRECTED DIVIDENDS(registered trademark) OPTION. Your dividend and capital gain distributions will be automatically invested in another identically registered Fidelity fund. SHARES PURCHASED THROUGH REINVESTMENT of dividend and capital gain distributions are not subject to the funds' 3.00% sales charge. If you direct distributions to a fund with a 3.00% sales charge, you will not pay a sales charge on those purchases. For the stock funds, distributions will be reinvested, or deducted from the share price, at 10:00 a.m. on the ex-dividend date. Shareholders of record at 4:00 p.m. on the business day before the ex-dividend will be entitled to receive the distribution. For the money market fund, dividends will be reinvested at 4:00 p.m. on the last day of the month. Cash distribution checks will be mailed within seven days. When a fund deducts a distribution from its NAV, the reinvestment price is the fund's NAV at the close of business that day. Cash distribution checks will be mailed within seven days. TAXES As with any investment, you should consider how your investment in a fund will be taxed. If your account is not a tax-advantaged retirement account, you should be aware of these tax implications. TAXES ON DISTRIBUTIONS. Distributions are subject to federal income tax, and may also be subject to state or local taxes. If you live outside the United States, your distributions could also be taxed by the country in which you reside. Your distributions are taxable when they are paid, whether you take them in cash or reinvest them. However, distributions declared in December and paid in January are taxable as if they were paid on December 31. For federal tax purposes, each fund's income and short-term capital gains are distributed as dividends and taxed as ordinary income; capital gain distributions are taxed as long-term capital gains. Every January, Fidelity will send you and the IRS a statement showing the tax characterization of distributions paid to you in the previous year. TAXES ON TRANSACTIONS. Your stock fund redemptions - including exchanges to other Fidelity funds - are subject to capital gains tax. A capital gain or loss is the difference between the cost of your shares and the price you receive when you sell them. Whenever you sell shares of a fund, Fidelity will send you a confirmation statement showing how many shares you sold and at what price. You will also receive a consolidated transaction statement every January. However, it is up to you or your tax preparer to determine whether this sale resulted in a capital gain and, if so, the amount of tax to be paid. Be sure to keep your regular account statements; the information they contain will be essential in calculating the amount of your capital gains. "BUYING A DIVIDEND." If you buy shares when a fund has realized but not yet distributed income or capital gains, you will pay the full price for the shares and then receive a portion of the price back in the form of a taxable distribution. EFFECT OF FOREIGN TAXES. Foreign governments may impose taxes on a fund and its investments, and these taxes generally will reduce a fund's distributions. However, if you meet certain holding period requirements with respect to your fund shares, an offsetting tax credit may be available to you. If you do not meet such holding period requirements, you may still be entitled to a deduction for certain foreign taxes. In either case, your tax statement will show more taxable income or capital gains than were actually distributed by the fund, but will also show the amount of the available offsetting credit or deduction. There are tax requirements that all funds must follow in order to avoid federal taxation. In its effort to adhere to these requirements, a fund may have to limit its investment activity in some types of instruments. TRANSACTION DETAILS THE FUNDS ARE OPEN FOR BUSINESS each day the New York Stock Exchange (NYSE) is open. FSC normally calculates each fund's NAV and offering price hourly, from 10:00 a.m. to 4:00 p.m. Eastern time each business day of the NYSE. EACH FUND'S NAV is the value of a single share. The NAV is computed by adding the value of the fund's investments, cash, and other assets, subtracting its liabilities, and then dividing the result by the number of shares outstanding. Each stock fund's assets are valued primarily on the basis of market quotations. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued on the basis of amortized cost. This method minimizes the effect of changes in a security's market value. Foreign securities are valued on the basis of quotations from the primary market in which they are traded, and are translated from the local currency into U.S. dollars using current exchange rates. In addition, if quotations are not readily available, or if the values have been materially affected by events occurring after the closing of a foreign market, assets may be valued by another method that the Board of Trustees believes accurately reflects fair value. The money market fund's assets are valued on the basis of amortized cost. This method minimizes the effect of changes in a security's market value and helps the money market fund to maintain a stable $1.00 share price. 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. WHEN YOU SIGN YOUR ACCOUNT APPLICATION, you will be asked to certify that your social security or taxpayer identification number is correct and that you are not subject to 31% backup withholding for failing to report income to the IRS. If you violate IRS regulations, the IRS can require a fund to withhold 31% of your taxable distributions and redemptions. YOU MAY INITIATE MANY TRANSACTIONS BY TELEPHONE 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 redeem and exchange by telephone, call Fidelity for instructions. IF YOU ARE UNABLE TO REACH FIDELITY BY PHONE (for example, during periods of unusual market activity), consider placing your order by mail or by visiting a Fidelity Investor Center. EACH FUND RESERVES THE RIGHT to suspend the offering of shares for a period of time. WHEN YOU PLACE AN ORDER TO BUY SHARES, your shares will be purchased at the next offering price or NAV, as applicable, calculated after your investment is received in proper form. 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) Each fund 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 its transfer agent 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 FSC receives instructions in proper form from you. (small solid bullet) For the market fund, shares begin to earn dividends on the first business day following the day of purchase. TO AVOID THE COLLECTION PERIOD associated with check and Money Line purchases, consider buying shares by bank wire, U.S. Postal money order, U.S. Treasury check, Federal Reserve check, or direct deposit instead. FBSI ESTABLISHED A program permitting customers with Fidelity brokerage accounts to sell short shares of certain Select stock funds. FMR reserves the right to suspend the short selling program at any time in the future. CERTAIN FINANCIAL INSTITUTIONS that have entered into sales agreements with 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 financial institution could be held liable for resulting fees or losses. WHEN YOU PLACE AN ORDER TO SELL SHARES, your shares will be sold at the next NAV calculated after your order is received in proper form, minus the applicable trading fee for the stock funds. Note the following: (small solid bullet) Normally, redemption proceeds will be mailed to you on the next business day, but if making immediate payment could adversely affect a fund, it may take up to seven days to pay you. (small solid bullet) For the money market fund, shares earn dividends through the date of redemption; however, shares redeemed on a Friday or prior to a holiday will continue to earn dividends until the next business day. (small solid bullet) Fidelity Money Line redemptions generally will be credited to your bank account on the second or third business day after your phone call. (small solid bullet) Each fund may hold payment on redemptions until it is reasonably satisfied that investments made by check or Fidelity Money Line have been collected, which can take up to seven business days. (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. A TRADING FEE of $7.50 or 0.75%, depending on how long you held your shares, will be deducted from the redemption amount when you sell your stock fund 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. The trading 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. The trading fee will be charged on exchanges out of a stock fund, in addition to the exchange fee which you pay for each exchange out of a stock fund unless you place your transaction through Fidelity's automated exchange services. If you bought shares on different days, the shares you held longest will be redeemed first for purposes of determining the fund's trading fee. The trading fee does not apply to shares that were acquired through reinvestment of distributions. FIDELITY RESERVES THE RIGHT TO 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 the transfer agent, 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 Fidelity accounts maintained by FSC 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, you will be given 30 days' notice to reestablish the minimum balance. If you do not increase your balance, Fidelity reserves the right to close your account and send the proceeds to you. Your shares will be redeemed at the NAV, minus the applicable trading fee for the stock funds, on the day your account is closed. THE SELECT CASH RESERVES ACCOUNT no longer accepts new investments. If you have an investment in this account, you may leave it there, redeem your investment, or exchange your shares for shares of a Select fund or another Fidelity fund. The 1.00% deferred sales charge will apply to shares in the Select Cash Reserves Account redeemed or exchanged to another Fidelity fund, since these shares were available for purchase only when the 1.00% deferred sales charge was still in effect. If you redeem by check from Select Cash Reserves, and the amount of the check is greater than the value of your account, your check will be returned to you and you may be subject to extra charges. FIDELITY MAY CHARGE A FEE FOR SPECIAL SERVICES, such as providing historical account documents, that are beyond the normal scope of its services. FDC collects the proceeds from each fund's 3.00% sales charge and may pay a portion of them to securities dealers who have sold the fund's shares, or to others, including banks and other financial institutions (qualified recipients), under special arrangements in connection with FDC's sales activities. The sales charge paid to qualified recipients is 1.50% of the fund's offering price. FDC may, at its own expense, provide promotional incentives to qualified recipients who support the sale of shares of the funds without reimbursement from the funds. In some instances, these incentives may be offered only to certain institutions whose representatives provide services in connection with the sale or expected sale of significant amounts of shares. EXCHANGE RESTRICTIONS As a shareholder, you have the privilege of exchanging shares of a fund for shares of other Fidelity funds. However, you should note the following: (small solid bullet) The fund you are exchanging into must be available for sale in your state. (small solid bullet) You may only exchange 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) If you exchange into a fund with a sales charge, you pay the percentage-point difference between that fund's sales charge and any sales charge you have previously paid in connection with the shares you are exchanging. For example, if you had already paid a sales charge of 2.00% on your shares and you exchange them into a fund with a 3.00% sales charge, you would pay an additional 1.00% sales charge. (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 reserve the right to enact limitations in the future. Because excessive trading can hurt fund performance and shareholders, each fund reserves the right to temporarily or permanently terminate the exchange privilege of any investor who makes more than four exchanges out of the Select funds to other Fidelity funds per calendar year. Accounts under common ownership or control, including accounts with the same taxpayer identification number, will be counted together for purposes of the four exchange limit. (small solid bullet) Each fund reserves the right to reject exchange purchases in excess of 1.00% of its net assets or $1 million, whichever is less. For purposes of this policy, accounts under common ownership or control will be aggregated. (small solid bullet) The exchange limit may be modified for accounts in certain institutional retirement plans to conform to plan exchange limits and Department of Labor regulations. See your plan materials for further information. (small solid bullet) Each fund reserves the right to refuse exchange purchases by any person or group if, in FMR's judgment, the fund would be unable to invest the money effectively in accordance with its investment objective and policies, or would otherwise potentially be adversely affected. (small solid bullet) Your exchanges may be restricted or refused if a fund receives or anticipates simultaneous orders affecting significant portions of the fund's assets. In particular, a pattern of exchanges that coincides with a "market timing" strategy may be disruptive to a fund. (small solid bullet) For cash management purposes, up to three business days may pass before exchange proceeds are paid from one Select fund to another, or to another Fidelity equity fund. Exchange proceeds are recorded in your shareholder account when the transaction occurs. Therefore, when you exchange from a stock fund to the money market fund, you will earn money market dividends immediately. When you exchange from the money market fund to a stock fund, you will not earn money market dividends during the three business-day period. This policy could increase the volatility of the money market fund's yield. Although the funds will attempt to give you prior notice whenever they are reasonably able to do so, they may impose these restrictions at any time. The funds reserve the right to terminate or modify the exchange privilege in the future. OTHER FUNDS MAY HAVE DIFFERENT EXCHANGE RESTRICTIONS, and may impose administrative fees of up to 1.00% and trading fees of up t o 3.00% o f the amount exchanged. Check each fund's prospectus for details. SALES CHARGE REDUCTIONS AND WAIVERS REDUCTIONS. Each stock fund's sales charge may be reduced if you invest directly with Fidelity or through prototype or prototype-like retirement plans sponsored by FMR or FMR Corp. 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 sales charge reductions. Call Fidelity to see if your purchase qualifies.
Sales Charge Ranges As a % of As an approximate % of net amount invested Offering Price $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
The sales charge for the stock funds and the money market fund will also be reduced by the percentage of any sales charge you previously paid on investments in other Fidelity funds 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 of a transaction within a Fidelity brokerage core account, including any free credit balance, core money market fund, or margin availability, to the extent such proceeds were derived from redemption proceeds from another Fidelity fund. 3. As a participant in The CORPORATEplan for Retirement Program when shares are purchased through plan-qualified loan repayments, and for exchanges into and out of the Managed Income Portfolio. WAIVERS. 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 purchased with the proceeds of a distribution from an employee benefit plan, provided that at the time of the distribution, the employer or its affiliate maintained a plan that both qualified for waiver (1) above and had at least some of its assets invested in Fidelity-managed products. (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 purchase 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 purchased by a mutual fund or a qualified state tuition program for whi ch FMR or an affiliate serves as investment manager. 7. To shares purchased 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 12 . These waivers must be qualified through FDC in advance. More detailed information about waivers (1), (2), and (5) is contained in the Statement of Additional Information. A representative of your plan or organization should call Fidelity for more information. APPENDIX A AIR TRANSPORTATION
Calendar year total returns 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 AIR TRANSPORTATION 29.07% 26.33% -18.18% 37.06% 6.57% 30.89% -21.74% 59.54% 1.25% 31.14% S&P 500 16.61% 31.69% -3.10% 30.47% 7.62% 10.08% 1.32% 37.58% 22.96% 33.36% Consumer Price Index 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32% 1.70%
PERCENTAGE (%) ROW: 1, COL: 1, VALUE: 29.07 ROW: 2, COL: 1, VALUE: 26.33 ROW: 3, COL: 1, VALUE: -18.18 ROW: 4, COL: 1, VALUE: 37.06 ROW: 5, COL: 1, VALUE: 6.57 ROW: 6, COL: 1, VALUE: 30.89 ROW: 7, COL: 1, VALUE: -21.74 ROW: 8, COL: 1, VALUE: 59.54 ROW: 9, COL: 1, VALUE: 1.25 ROW: 10, COL: 1, VALUE: 31.14 (LARGE SOLID BOX) AIR TRANSPORTATION AMERICAN GOLD
Calendar year total returns 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 AMERICAN GOLD -12.45% 22.04% -17.20% -6.14% -3.09% 78.68% -15.46% 11.20% 19.92% -39.39% S&P 500 16.61% 31.69% -3.10% 30.47% 7.62% 10.08% 1.32% 37.58% 22.96% 33.36% Consumer Price Index 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32% 1.70%
PERCENTAGE (%) ROW: 1, COL: 1, VALUE: -12.45 ROW: 2, COL: 1, VALUE: 22.04 ROW: 3, COL: 1, VALUE: -17.2 ROW: 4, COL: 1, VALUE: -6.14 ROW: 5, COL: 1, VALUE: -3.09 ROW: 6, COL: 1, VALUE: 78.67999999999999 ROW: 7, COL: 1, VALUE: -15.46 ROW: 8, COL: 1, VALUE: 11.2 ROW: 9, COL: 1, VALUE: 19.92 ROW: 10, COL: 1, VALUE: -39.39 (LARGE SOLID BOX) AMERICAN GOLD AUTOMOTIVE
Calendar year total returns 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 AUTOMOTIVE 20.06% 4.10% -6.72% 37.33% 41.61% 35.38% -12.75% 13.43% 16.07% 16.78% S&P 500 16.61% 31.69% -3.10% 30.47% 7.62% 10.08% 1.32% 37.58% 22.96% 33.36% Consumer Price Index 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32% 1.70%
PERCENTAGE (%) ROW: 1, COL: 1, VALUE: 20.06 ROW: 2, COL: 1, VALUE: 4.1 ROW: 3, COL: 1, VALUE: -6.72 ROW: 4, COL: 1, VALUE: 37.33 ROW: 5, COL: 1, VALUE: 41.61 ROW: 6, COL: 1, VALUE: 35.38 ROW: 7, COL: 1, VALUE: -12.75 ROW: 8, COL: 1, VALUE: 13.43 ROW: 9, COL: 1, VALUE: 16.07 ROW: 10, COL: 1, VALUE: 16.78 (LARGE SOLID BOX) AUTOMOTIVE BIOTECHNOLOGY
Calendar year total returns 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 BIOTECHNOLOGY 4.12% 43.93% 44.35% 99.05% -10.34% 0.70% -18.18% 49.10% 5.61% 15.27% S&P 500 16.61% 31.69% -3.10% 30.47% 7.62% 10.08% 1.32% 37.58% 22.96% 33.36% Consumer Price Index 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32% 1.70%
PERCENTAGE (%) ROW: 1, COL: 1, VALUE: 4.119999999999999 ROW: 2, COL: 1, VALUE: 43.93 ROW: 3, COL: 1, VALUE: 44.34999999999999 ROW: 4, COL: 1, VALUE: 99.05 ROW: 5, COL: 1, VALUE: -10.34 ROW: 6, COL: 1, VALUE: 0.7000000000000001 ROW: 7, COL: 1, VALUE: -18.18 ROW: 8, COL: 1, VALUE: 49.1 ROW: 9, COL: 1, VALUE: 5.609999999999999 ROW: 10, COL: 1, VALUE: 15.27 (LARGE SOLID BOX) BIOTECHNOLOGY BROKERAGE AND INVESTMENT MANAGEMENT
Calendar year total returns 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 BROKERAGE AND INVESTMENT MANAGEMENT 18.55% 14.06% -16.18% 82.26% 5.12% 49.33% -17.27% 23.59% 39.66% 62.32% S&P 500 16.61% 31.69% -3.10% 30.47% 7.62% 10.08% 1.32% 37.58% 22.96% 33.36% Consumer Price Index 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32% 1.70%
PERCENTAGE (%) ROW: 1, COL: 1, VALUE: 18.55 ROW: 2, COL: 1, VALUE: 14.06 ROW: 3, COL: 1, VALUE: -16.18 ROW: 4, COL: 1, VALUE: 82.26000000000001 ROW: 5, COL: 1, VALUE: 5.119999999999999 ROW: 6, COL: 1, VALUE: 49.33 ROW: 7, COL: 1, VALUE: -17.27 ROW: 8, COL: 1, VALUE: 23.59 ROW: 9, COL: 1, VALUE: 39.66 ROW: 10, COL: 1, VALUE: 62.32 (LARGE SOLID BOX) BROKERAGE AND INVESTMENT MANAGEMENT CHEMICALS
Calendar year total returns 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 CHEMICALS 20.96% 17.31% -4.13% 38.66% 8.90% 12.76% 14.78% 21.45% 21.52% 16.48% S&P 500 16.61% 31.69% -3.10% 30.47% 7.62% 10.08% 1.32% 37.58% 22.96% 33.36% Consumer Price Index 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32% 1.70%
PERCENTAGE (%) ROW: 1, COL: 1, VALUE: 20.96 ROW: 2, COL: 1, VALUE: 17.31 ROW: 3, COL: 1, VALUE: -4.13 ROW: 4, COL: 1, VALUE: 38.66 ROW: 5, COL: 1, VALUE: 8.9 ROW: 6, COL: 1, VALUE: 12.76 ROW: 7, COL: 1, VALUE: 14.78 ROW: 8, COL: 1, VALUE: 21.45 ROW: 9, COL: 1, VALUE: 21.52 ROW: 10, COL: 1, VALUE: 16.48 (LARGE SOLID BOX) CHEMICALS COMPUTERS
Calendar year total returns 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 COMPUTERS -5.05% 6.84% 18.41% 30.75% 21.96% 28.87% 20.45% 51.83% 31.62% 0.10% S&P 500 16.61% 31.69% -3.10% 30.47% 7.62% 10.08% 1.32% 37.58% 22.96% 33.36% Consumer Price Index 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32% 1.70%
PERCENTAGE (%) ROW: 1, COL: 1, VALUE: -5.05 ROW: 2, COL: 1, VALUE: 6.84 ROW: 3, COL: 1, VALUE: 18.41 ROW: 4, COL: 1, VALUE: 30.75 ROW: 5, COL: 1, VALUE: 21.96 ROW: 6, COL: 1, VALUE: 28.87 ROW: 7, COL: 1, VALUE: 20.45 ROW: 8, COL: 1, VALUE: 51.83 ROW: 9, COL: 1, VALUE: 31.62 ROW: 10, COL: 1, VALUE: 0.1 (LARGE SOLID BOX) COMPUTERS CONSTRUCTION AND HOUSING
Calendar year total returns 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 CONSTRUCTION AND HOUSING 29.19% 16.60% -9.64% 41.31% 18.71% 33.61% -15.94% 28.78% 13.21% 29.83% S&P 500 16.61% 31.69% -3.10% 30.47% 7.62% 10.08% 1.32% 37.58% 22.96% 33.36% Consumer Price Index 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32% 1.70%
PERCENTAGE (%) ROW: 1, COL: 1, VALUE: 29.19 ROW: 2, COL: 1, VALUE: 16.6 ROW: 3, COL: 1, VALUE: -9.639999999999999 ROW: 4, COL: 1, VALUE: 41.31 ROW: 5, COL: 1, VALUE: 18.71 ROW: 6, COL: 1, VALUE: 33.61 ROW: 7, COL: 1, VALUE: -15.94 ROW: 8, COL: 1, VALUE: 28.78 ROW: 9, COL: 1, VALUE: 13.21 ROW: 10, COL: 1, VALUE: 29.83 (LARGE SOLID BOX) CONSTRUCTION AND HOUSING CONSUMER INDUSTRIES
Calendar year total returns 1991 1992 1993 1994 1995 1996 1997 CONSUMER INDUSTRIES 38.53% 8.56% 24.67% -7.07% 28.30% 13.15% 38.06% S&P 500 30.47% 7.62% 10.08% 1.32% 37.58% 22.96% 33.36% Consumer Price Index 3.06% 2.90% 2.75% 2.67% 2.54% 3.32% 1.70%
PERCENTAGE (%) ROW: 1, COL: 1, VALUE: 0.0 ROW: 2, COL: 1, VALUE: 0.0 ROW: 3, COL: 1, VALUE: 0.0 ROW: 4, COL: 1, VALUE: 38.53 ROW: 5, COL: 1, VALUE: 8.560000000000001 ROW: 6, COL: 1, VALUE: 24.67 ROW: 7, COL: 1, VALUE: -7.07 ROW: 8, COL: 1, VALUE: 28.3 ROW: 9, COL: 1, VALUE: 13.15 ROW: 10, COL: 1, VALUE: 38.06 (LARGE SOLID BOX) CONSUMER INDUSTRIES DEFENSE AND AEROSPACE
Calendar year total returns 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 DEFENSE AND AEROSPACE 4.32% 8.81% -4.58% 26.93% 0.00% 28.86% 1.76% 47.36% 25.03% 23.57% S&P 500 16.61% 31.69% -3.10% 30.47% 7.62% 10.08% 1.32% 37.58% 22.96% 33.36% Consumer Price Index 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32% 1.70%
PERCENTAGE (%) ROW: 1, COL: 1, VALUE: 4.319999999999999 ROW: 2, COL: 1, VALUE: 8.810000000000001 ROW: 3, COL: 1, VALUE: -4.58 ROW: 4, COL: 1, VALUE: 26.93 ROW: 5, COL: 1, VALUE: 0.0 ROW: 6, COL: 1, VALUE: 28.86 ROW: 7, COL: 1, VALUE: 1.76 ROW: 8, COL: 1, VALUE: 47.36 ROW: 9, COL: 1, VALUE: 25.03 ROW: 10, COL: 1, VALUE: 23.57 (LARGE SOLID BOX) DEFENSE AND AEROSPACE DEVELOPING COMMUNICATIONS
Calendar year total returns 1991 1992 1993 1994 1995 1996 1997 DEVELOPING COMMUNICATIONS 61.39% 17.21% 31.77% 15.14% 17.37% 14.55% 6.04% S&P 500 30.47% 7.62% 10.08% 1.32% 37.58% 22.96% 33.36% Consumer Price Index 3.06% 2.90% 2.75% 2.67% 2.54% 3.32% 1.70%
PERCENTAGE (%) ROW: 1, COL: 1, VALUE: 0.0 ROW: 2, COL: 1, VALUE: 0.0 ROW: 3, COL: 1, VALUE: 0.0 ROW: 4, COL: 1, VALUE: 61.39 ROW: 5, COL: 1, VALUE: 17.21 ROW: 6, COL: 1, VALUE: 31.77 ROW: 7, COL: 1, VALUE: 15.14 ROW: 8, COL: 1, VALUE: 17.37 ROW: 9, COL: 1, VALUE: 14.55 ROW: 10, COL: 1, VALUE: 6.04 (LARGE SOLID BOX) DEVELOPING COMMUNICATIONS ELECTRONICS
Calendar year total returns 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 ELECTRONICS -8.47% 15.67% 5.81% 35.29% 27.44% 32.08% 17.17% 68.97% 41.72% 13.72% S&P 500 16.61% 31.69% -3.10% 30.47% 7.62% 10.08% 1.32% 37.58% 22.96% 33.36% Consumer Price Index 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32% 1.70%
PERCENTAGE (%) ROW: 1, COL: 1, VALUE: -8.470000000000001 ROW: 2, COL: 1, VALUE: 15.67 ROW: 3, COL: 1, VALUE: 5.81 ROW: 4, COL: 1, VALUE: 35.29000000000001 ROW: 5, COL: 1, VALUE: 27.44 ROW: 6, COL: 1, VALUE: 32.08 ROW: 7, COL: 1, VALUE: 17.17 ROW: 8, COL: 1, VALUE: 68.97 ROW: 9, COL: 1, VALUE: 41.72000000000001 ROW: 10, COL: 1, VALUE: 13.72 (LARGE SOLID BOX) ELECTRONICS ENERGY
Calendar year total returns 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 ENERGY 15.94% 42.83% -4.49% 0.04% -2.39% 19.15% 0.41% 21.38% 32.47% 10.28% S&P 500 16.61% 31.69% -3.10% 30.47% 7.62% 10.08% 1.32% 37.58% 22.96% 33.36% Consumer Price Index 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32% 1.70%
PERCENTAGE (%) ROW: 1, COL: 1, VALUE: 15.94 ROW: 2, COL: 1, VALUE: 42.83 ROW: 3, COL: 1, VALUE: -4.49 ROW: 4, COL: 1, VALUE: 0.04000000000000001 ROW: 5, COL: 1, VALUE: -2.39 ROW: 6, COL: 1, VALUE: 19.15 ROW: 7, COL: 1, VALUE: 0.41 ROW: 8, COL: 1, VALUE: 21.38 ROW: 9, COL: 1, VALUE: 32.47 ROW: 10, COL: 1, VALUE: 10.28 (LARGE SOLID BOX) ENERGY ENERGY SERVICE
Calendar year total returns 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 ENERGY SERVICE -0.40% 59.44% 1.75% -23.48% 3.43% 20.96% 0.57% 40.87% 49.08% 51.87% S&P 500 16.61% 31.69% -3.10% 30.47% 7.62% 10.08% 1.32% 37.58% 22.96% 33.36% Consumer Price Index 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32% 1.70%
PERCENTAGE (%) ROW: 1, COL: 1, VALUE: -0.4 ROW: 2, COL: 1, VALUE: 59.44 ROW: 3, COL: 1, VALUE: 1.75 ROW: 4, COL: 1, VALUE: -23.48 ROW: 5, COL: 1, VALUE: 3.43 ROW: 6, COL: 1, VALUE: 20.96 ROW: 7, COL: 1, VALUE: 0.5700000000000001 ROW: 8, COL: 1, VALUE: 40.87 ROW: 9, COL: 1, VALUE: 49.08 ROW: 10, COL: 1, VALUE: 51.87 (LARGE SOLID BOX) ENERGY SERVICE ENVIRONMENTAL SERVICES
Calendar year total returns 1990 1991 1992 1993 1994 1995 1996 1997 ENVIRONMENTAL SERVICES -2.48% 7.66% -1.37% -0.62% -9.55% 26.13% 15.61% 17.87% S&P 500 -3.10% 30.47% 7.62% 10.08% 1.32% 37.58% 22.96% 33.36% Consumer Price Index 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32% 1.70%
PERCENTAGE (%) ROW: 1, COL: 1, VALUE: 0.0 ROW: 2, COL: 1, VALUE: 0.0 ROW: 3, COL: 1, VALUE: -2.48 ROW: 4, COL: 1, VALUE: 7.659999999999999 ROW: 5, COL: 1, VALUE: -1.37 ROW: 6, COL: 1, VALUE: -0.6200000000000001 ROW: 7, COL: 1, VALUE: -9.550000000000001 ROW: 8, COL: 1, VALUE: 26.13 ROW: 9, COL: 1, VALUE: 15.61 ROW: 10, COL: 1, VALUE: 17.87 (LARGE SOLID BOX) ENVIRONMENTAL SERVICES FINANCIAL SERVICES
Calendar year total returns 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 FINANCIAL SERVICES 12.01% 19.34% -24.33% 61.63% 42.82% 17.55% -3.65% 47.34% 32.12% 41.98% S&P 500 16.61% 31.69% -3.10% 30.47% 7.62% 10.08% 1.32% 37.58% 22.96% 33.36% Consumer Price Index 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32% 1.70%
PERCENTAGE (%) ROW: 1, COL: 1, VALUE: 12.01 ROW: 2, COL: 1, VALUE: 19.34 ROW: 3, COL: 1, VALUE: -24.33 ROW: 4, COL: 1, VALUE: 61.63 ROW: 5, COL: 1, VALUE: 42.82 ROW: 6, COL: 1, VALUE: 17.55 ROW: 7, COL: 1, VALUE: -3.65 ROW: 8, COL: 1, VALUE: 47.34 ROW: 9, COL: 1, VALUE: 32.12000000000001 ROW: 10, COL: 1, VALUE: 41.98 (LARGE SOLID BOX) FINANCIAL SERVICES FOOD AND AGRICULTURE
Calendar year total returns 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 FOOD AND AGRICULTURE 26.77% 38.87% 9.33% 34.09% 6.03% 8.82% 6.09% 36.64% 13.35% 30.34% S&P 500 16.61% 31.69% -3.10% 30.47% 7.62% 10.08% 1.32% 37.58% 22.96% 33.36% Consumer Price Index 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32% 1.70%
PERCENTAGE (%) ROW: 1, COL: 1, VALUE: 26.77 ROW: 2, COL: 1, VALUE: 38.87 ROW: 3, COL: 1, VALUE: 9.33 ROW: 4, COL: 1, VALUE: 34.09 ROW: 5, COL: 1, VALUE: 6.03 ROW: 6, COL: 1, VALUE: 8.82 ROW: 7, COL: 1, VALUE: 6.09 ROW: 8, COL: 1, VALUE: 36.64 ROW: 9, COL: 1, VALUE: 13.35 ROW: 10, COL: 1, VALUE: 30.34 (LARGE SOLID BOX) FOOD AND AGRICULTURE HEALTH CARE
Calendar year total returns 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 HEALTH CARE 8.83% 42.49% 24.32% 83.69% -17.43% 2.42% 21.46% 45.86% 15.46% 31.15% S&P 500 16.61% 31.69% -3.10% 30.47% 7.62% 10.08% 1.32% 37.58% 22.96% 33.36% Consumer Price Index 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32% 1.70%
PERCENTAGE (%) ROW: 1, COL: 1, VALUE: 8.83 ROW: 2, COL: 1, VALUE: 42.49 ROW: 3, COL: 1, VALUE: 24.32 ROW: 4, COL: 1, VALUE: 83.69 ROW: 5, COL: 1, VALUE: -17.43 ROW: 6, COL: 1, VALUE: 2.42 ROW: 7, COL: 1, VALUE: 21.46 ROW: 8, COL: 1, VALUE: 45.86 ROW: 9, COL: 1, VALUE: 15.46 ROW: 10, COL: 1, VALUE: 31.15 (LARGE SOLID BOX) HEALTH CARE HOME FINANCE
Calendar year total returns 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 HOME FINANCE 18.50% 9.33% -15.08% 64.61% 57.85% 27.29% 2.68% 53.49% 36.88% 45.75% S&P 500 16.61% 31.69% -3.10% 30.47% 7.62% 10.08% 1.32% 37.58% 22.96% 33.36% Consumer Price Index 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32% 1.70%
PERCENTAGE (%) ROW: 1, COL: 1, VALUE: 18.5 ROW: 2, COL: 1, VALUE: 9.33 ROW: 3, COL: 1, VALUE: -15.08 ROW: 4, COL: 1, VALUE: 64.61 ROW: 5, COL: 1, VALUE: 57.84999999999999 ROW: 6, COL: 1, VALUE: 27.29 ROW: 7, COL: 1, VALUE: 2.68 ROW: 8, COL: 1, VALUE: 53.49 ROW: 9, COL: 1, VALUE: 36.88 ROW: 10, COL: 1, VALUE: 45.75 (LARGE SOLID BOX) HOME FINANCE INDUSTRIAL EQUIPMENT
Calendar year total returns 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 INDUSTRIAL EQUIPMENT 4.89% 17.95% -15.51% 26.84% 11.34% 43.33% 3.13% 27.81% 26.71% 18.55% S&P 500 16.61% 31.69% -3.10% 30.47% 7.62% 10.08% 1.32% 37.58% 22.96% 33.36% Consumer Price Index 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32% 1.70%
PERCENTAGE (%) ROW: 1, COL: 1, VALUE: 4.89 ROW: 2, COL: 1, VALUE: 17.95 ROW: 3, COL: 1, VALUE: -15.51 ROW: 4, COL: 1, VALUE: 26.84 ROW: 5, COL: 1, VALUE: 11.34 ROW: 6, COL: 1, VALUE: 43.33 ROW: 7, COL: 1, VALUE: 3.13 ROW: 8, COL: 1, VALUE: 27.81 ROW: 9, COL: 1, VALUE: 26.71 ROW: 10, COL: 1, VALUE: 18.55 (LARGE SOLID BOX) INDUSTRIAL EQUIPMENT INDUSTRIAL MATERIALS
Calendar year total returns 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 INDUSTRIAL MATERIALS 10.84% 4.45% -17.17% 35.81% 12.37% 21.38% 8.19% 15.39% 14.01% 1.75% S&P 500 16.61% 31.69% -3.10% 30.47% 7.62% 10.08% 1.32% 37.58% 22.96% 33.36% Consumer Price Index 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32% 1.70%
PERCENTAGE (%) ROW: 1, COL: 1, VALUE: 10.84 ROW: 2, COL: 1, VALUE: 4.45 ROW: 3, COL: 1, VALUE: -17.17 ROW: 4, COL: 1, VALUE: 35.81 ROW: 5, COL: 1, VALUE: 12.37 ROW: 6, COL: 1, VALUE: 21.38 ROW: 7, COL: 1, VALUE: 8.19 ROW: 8, COL: 1, VALUE: 15.39 ROW: 9, COL: 1, VALUE: 14.01 ROW: 10, COL: 1, VALUE: 1.75 (LARGE SOLID BOX) INDUSTRIAL MATERIALS INSURANCE
Calendar year total returns 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 INSURANCE 17.40% 37.83% -9.81% 36.68% 22.50% 8.18% -0.35% 34.81% 23.71% 42.47% S&P 500 16.61% 31.69% -3.10% 30.47% 7.62% 10.08% 1.32% 37.58% 22.96% 33.36% Consumer Price Index 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32% 1.70%
PERCENTAGE (%) ROW: 1, COL: 1, VALUE: 17.4 ROW: 2, COL: 1, VALUE: 37.83 ROW: 3, COL: 1, VALUE: -9.810000000000001 ROW: 4, COL: 1, VALUE: 36.68 ROW: 5, COL: 1, VALUE: 22.5 ROW: 6, COL: 1, VALUE: 8.18 ROW: 7, COL: 1, VALUE: -0.35 ROW: 8, COL: 1, VALUE: 34.81 ROW: 9, COL: 1, VALUE: 23.71 ROW: 10, COL: 1, VALUE: 42.47 (LARGE SOLID BOX) INSURANCE LEISURE
Calendar year total returns 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 LEISURE 26.01% 31.21% -22.29% 32.94% 16.23% 39.55% -6.84% 26.96% 13.41% 41.29% S&P 500 16.61% 31.69% -3.10% 30.47% 7.62% 10.08% 1.32% 37.58% 22.96% 33.36% Consumer Price Index 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32% 1.70%
PERCENTAGE (%) ROW: 1, COL: 1, VALUE: 26.01 ROW: 2, COL: 1, VALUE: 31.21 ROW: 3, COL: 1, VALUE: -22.29 ROW: 4, COL: 1, VALUE: 32.94 ROW: 5, COL: 1, VALUE: 16.23 ROW: 6, COL: 1, VALUE: 39.55 ROW: 7, COL: 1, VALUE: -6.84 ROW: 8, COL: 1, VALUE: 26.96 ROW: 9, COL: 1, VALUE: 13.41 ROW: 10, COL: 1, VALUE: 41.29000000000001 (LARGE SOLID BOX) LEISURE MEDICAL DELIVERY
Calendar year total returns 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 MEDICAL DELIVERY 15.78% 58.02% 16.26% 77.83% -13.19% 5.52% 19.84% 32.18% 11.00% 20.14% S&P 500 16.61% 31.69% -3.10% 30.47% 7.62% 10.08% 1.32% 37.58% 22.96% 33.36% Consumer Price Index 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32% 1.70%
PERCENTAGE (%) ROW: 1, COL: 1, VALUE: 15.78 ROW: 2, COL: 1, VALUE: 58.02 ROW: 3, COL: 1, VALUE: 16.26 ROW: 4, COL: 1, VALUE: 77.83 ROW: 5, COL: 1, VALUE: -13.19 ROW: 6, COL: 1, VALUE: 5.52 ROW: 7, COL: 1, VALUE: 19.84 ROW: 8, COL: 1, VALUE: 32.18 ROW: 9, COL: 1, VALUE: 11.0 ROW: 10, COL: 1, VALUE: 20.14 (LARGE SOLID BOX) MEDICAL DELIVERY MULTIMEDIA
Calendar year total returns 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 MULTIMEDIA 26.85% 32.54% -26.21% 37.85% 21.50% 38.02% 4.00% 33.67% 1.07% 30.93% S&P 500 16.61% 31.69% -3.10% 30.47% 7.62% 10.08% 1.32% 37.58% 22.96% 33.36% Consumer Price Index 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32% 1.70%
PERCENTAGE (%) ROW: 1, COL: 1, VALUE: 26.85 ROW: 2, COL: 1, VALUE: 32.54 ROW: 3, COL: 1, VALUE: -26.21 ROW: 4, COL: 1, VALUE: 37.84999999999999 ROW: 5, COL: 1, VALUE: 21.5 ROW: 6, COL: 1, VALUE: 38.02 ROW: 7, COL: 1, VALUE: 4.0 ROW: 8, COL: 1, VALUE: 33.67 ROW: 9, COL: 1, VALUE: 1.07 ROW: 10, COL: 1, VALUE: 30.93 (LARGE SOLID BOX) MULTIMEDIA NATURAL GAS
Calendar year total returns 1994 1995 1996 1997 NATURAL GAS -6.84% 30.38% 34.32% -8.06% S&P 500 1.32% 37.58% 22.96% 33.36% Consumer Price Index 2.67% 2.54% 3.32% 1.70%
PERCENTAGE (%) ROW: 1, COL: 1, VALUE: 0.0 ROW: 2, COL: 1, VALUE: 0.0 ROW: 3, COL: 1, VALUE: 0.0 ROW: 4, COL: 1, VALUE: 0.0 ROW: 5, COL: 1, VALUE: 0.0 ROW: 6, COL: 1, VALUE: 0.0 ROW: 7, COL: 1, VALUE: -6.84 ROW: 8, COL: 1, VALUE: 30.38 ROW: 9, COL: 1, VALUE: 34.32 ROW: 10, COL: 1, VALUE: -8.060000000000001 (LARGE SOLID BOX) NATURAL GAS PAPER AND FOREST PRODUCTS
Calendar year total returns 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 PAPER AND FOREST PRODUCTS 6.77% 4.08% -15.11% 34.77% 12.05% 18.55% 14.14% 21.91% 7.07% 9.35% S&P 500 16.61% 31.69% -3.10% 30.47% 7.62% 10.08% 1.32% 37.58% 22.96% 33.36% Consumer Price Index 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32% 1.70%
PERCENTAGE (%) ROW: 1, COL: 1, VALUE: 6.770000000000001 ROW: 2, COL: 1, VALUE: 4.08 ROW: 3, COL: 1, VALUE: -15.11 ROW: 4, COL: 1, VALUE: 34.77 ROW: 5, COL: 1, VALUE: 12.05 ROW: 6, COL: 1, VALUE: 18.55 ROW: 7, COL: 1, VALUE: 14.14 ROW: 8, COL: 1, VALUE: 21.91 ROW: 9, COL: 1, VALUE: 7.07 ROW: 10, COL: 1, VALUE: 9.350000000000001 (LARGE SOLID BOX) PAPER AND FOREST PRODUCTS PRECIOUS METALS AND MINERALS
Calendar year total returns 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 PRECIOUS METALS AND MINERALS -23.86% 32.16% -21.07% 1.54% -21.87% 111.62% -1.14% -3.34% 5.42% -44.89% S&P 500 16.61% 31.69% -3.10% 30.47% 7.62% 10.08% 1.32% 37.58% 22.96% 33.36% Consumer Price Index 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32% 1.70%
PERCENTAGE (%) ROW: 1, COL: 1, VALUE: -23.86 ROW: 2, COL: 1, VALUE: 32.16 ROW: 3, COL: 1, VALUE: -21.07 ROW: 4, COL: 1, VALUE: 1.54 ROW: 5, COL: 1, VALUE: -21.87 ROW: 6, COL: 1, VALUE: 111.62 ROW: 7, COL: 1, VALUE: -1.14 ROW: 8, COL: 1, VALUE: -3.34 ROW: 9, COL: 1, VALUE: 5.42 ROW: 10, COL: 1, VALUE: -44.89 (LARGE SOLID BOX) PRECIOUS METALS AND MINERALS REGIONAL BANKS
Calendar year total returns 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 REGIONAL BANKS 25.71% 26.65% -20.67% 65.79% 48.52% 11.17% 0.22% 46.77% 35.89% 45.56% S&P 500 16.61% 31.69% -3.10% 30.47% 7.62% 10.08% 1.32% 37.58% 22.96% 33.36% Consumer Price Index 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32% 1.70%
PERCENTAGE (%) ROW: 1, COL: 1, VALUE: 25.71 ROW: 2, COL: 1, VALUE: 26.65 ROW: 3, COL: 1, VALUE: -20.67 ROW: 4, COL: 1, VALUE: 65.79000000000001 ROW: 5, COL: 1, VALUE: 48.52 ROW: 6, COL: 1, VALUE: 11.17 ROW: 7, COL: 1, VALUE: 0.22 ROW: 8, COL: 1, VALUE: 46.77 ROW: 9, COL: 1, VALUE: 35.89 ROW: 10, COL: 1, VALUE: 45.56 (LARGE SOLID BOX) REGIONAL BANKS RETAILING
Calendar year total returns 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 RETAILING 38.71% 29.53% -5.03% 68.13% 22.08% 13.03% -5.01% 11.98% 20.86% 41.73% S&P 500 16.61% 31.69% -3.10% 30.47% 7.62% 10.08% 1.32% 37.58% 22.96% 33.36% Consumer Price Index 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32% 1.70%
PERCENTAGE (%) ROW: 1, COL: 1, VALUE: 38.71 ROW: 2, COL: 1, VALUE: 29.53 ROW: 3, COL: 1, VALUE: -5.03 ROW: 4, COL: 1, VALUE: 68.13 ROW: 5, COL: 1, VALUE: 22.08 ROW: 6, COL: 1, VALUE: 13.03 ROW: 7, COL: 1, VALUE: -5.01 ROW: 8, COL: 1, VALUE: 11.98 ROW: 9, COL: 1, VALUE: 20.86 ROW: 10, COL: 1, VALUE: 41.73 (LARGE SOLID BOX) RETAILING SOFTWARE AND COMPUTER SERVICES
Calendar year total returns 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 SOFTWARE AND COMPUTER SERVICES 9.05% 12.05% 0.86% 45.84% 35.54% 32.73% 0.39% 46.26% 21.77% 15.01% S&P 500 16.61% 31.69% -3.10% 30.47% 7.62% 10.08% 1.32% 37.58% 22.96% 33.36% Consumer Price Index 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32% 1.70%
PERCENTAGE (%) ROW: 1, COL: 1, VALUE: 9.050000000000001 ROW: 2, COL: 1, VALUE: 12.05 ROW: 3, COL: 1, VALUE: 0.8600000000000001 ROW: 4, COL: 1, VALUE: 45.84 ROW: 5, COL: 1, VALUE: 35.54 ROW: 6, COL: 1, VALUE: 32.73 ROW: 7, COL: 1, VALUE: 0.3900000000000001 ROW: 8, COL: 1, VALUE: 46.26000000000001 ROW: 9, COL: 1, VALUE: 21.77 ROW: 10, COL: 1, VALUE: 15.01 (LARGE SOLID BOX) SOFTWARE AND COMPUTER SERVICES TECHNOLOGY
Calendar year total returns 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 TECHNOLOGY -2.70% 16.99% 10.50% 58.97% 8.72% 28.65% 11.13% 43.81% 15.82% 10.33% S&P 500 16.61% 31.69% -3.10% 30.47% 7.62% 10.08% 1.32% 37.58% 22.96% 33.36% Consumer Price Index 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32% 1.70%
PERCENTAGE (%) ROW: 1, COL: 1, VALUE: -2.7 ROW: 2, COL: 1, VALUE: 16.99 ROW: 3, COL: 1, VALUE: 10.5 ROW: 4, COL: 1, VALUE: 58.97 ROW: 5, COL: 1, VALUE: 8.719999999999999 ROW: 6, COL: 1, VALUE: 28.65 ROW: 7, COL: 1, VALUE: 11.13 ROW: 8, COL: 1, VALUE: 43.81 ROW: 9, COL: 1, VALUE: 15.82 ROW: 10, COL: 1, VALUE: 10.33 (LARGE SOLID BOX) TECHNOLOGY TELECOMMUNICATIONS
Calendar year total returns 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 TELECOMMUNICATIONS 27.76% 50.88% -16.40% 30.85% 15.32% 29.72% 4.32% 29.66% 5.40% 25.83% S&P 500 16.61% 31.69% -3.10% 30.47% 7.62% 10.08% 1.32% 37.58% 22.96% 33.36% Consumer Price Index 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32% 1.70%
PERCENTAGE (%) ROW: 1, COL: 1, VALUE: 27.76 ROW: 2, COL: 1, VALUE: 50.88 ROW: 3, COL: 1, VALUE: -16.4 ROW: 4, COL: 1, VALUE: 30.85 ROW: 5, COL: 1, VALUE: 15.32 ROW: 6, COL: 1, VALUE: 29.72 ROW: 7, COL: 1, VALUE: 4.319999999999999 ROW: 8, COL: 1, VALUE: 29.66 ROW: 9, COL: 1, VALUE: 5.4 ROW: 10, COL: 1, VALUE: 25.83 (LARGE SOLID BOX) TELECOMMUNICATIONS TRANSPORTATION
Calendar year total returns 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 TRANSPORTATION 38.45% 28.49% -21.59% 54.14% 23.79% 29.32% 3.87% 15.17% 9.50% 32.13% S&P 500 16.61% 31.69% -3.10% 30.47% 7.62% 10.08% 1.32% 37.58% 22.96% 33.36% Consumer Price Index 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32% 1.70%
PERCENTAGE (%) ROW: 1, COL: 1, VALUE: 38.45 ROW: 2, COL: 1, VALUE: 28.49 ROW: 3, COL: 1, VALUE: -21.59 ROW: 4, COL: 1, VALUE: 54.14 ROW: 5, COL: 1, VALUE: 23.79 ROW: 6, COL: 1, VALUE: 29.32 ROW: 7, COL: 1, VALUE: 3.87 ROW: 8, COL: 1, VALUE: 15.17 ROW: 9, COL: 1, VALUE: 9.5 ROW: 10, COL: 1, VALUE: 32.13 (LARGE SOLID BOX) TRANSPORTATION UTILITIES GROWTH
Calendar year total returns 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 UTILITIES GROWTH 16.46% 39.02% 0.55% 21.03% 10.59% 12.54% -7.41% 34.39% 11.37% 30.31% S&P 500 16.61% 31.69% -3.10% 30.47% 7.62% 10.08% 1.32% 37.58% 22.96% 33.36% Consumer Price Index 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32% 1.70%
Percentage (%) Row: 1, Col: 1, Value: 16.46 Row: 2, Col: 1, Value: 39.02 Row: 3, Col: 1, Value: 0.55 Row: 4, Col: 1, Value: 21.03 Row: 5, Col: 1, Value: 10.59 Row: 6, Col: 1, Value: 12.54 Row: 7, Col: 1, Value: -7.41 Row: 8, Col: 1, Value: 34.39 Row: 9, Col: 1, Value: 11.37 Row: 10, Col: 1, Value: 30.31 (LARGE SOLID BOX) UTILITIES GROWTH This prospectus is printed on recycled paper using soy-based inks. FIDELITY SELECT PORTFOLIOS(registered trademark) STATEMENT OF ADDITIONAL INFORMATION APRIL 28, 1998 This Statement of Additional Information (SAI) is not a prospectus but should be read in conjunction with the funds' current Prospectus (dated April 28, 1998). Please retain this document for future reference. The funds' Annual R eport is a separate document supplied with this SAI. To obtain a free additional copy of the Prospectus or an Annual Report, please call Fidelity at 1-800-544-8888. TABLE OF CONTENTS PAGE INVESTMENT POLICIES AND LIMITATIONS 2 PORTFOLIO TRANSACTIONS 15 VALUATION 24 PERFORMANCE 24 ADDITIONAL PURCHASE, EXCHANGE AND REDEMPTION INFORMATION 65 DISTRIBUTIONS AND TAXES 66 FMR 68 TRUSTEES AND OFFICERS 68 MANAGEMENT CONTRACTS 73 CONTRACTS WITH FMR AFFILIATES 86 DESCRIPTION OF THE TRUST 93 FINANCIAL STATEMENTS 94 APPENDIX 95 INVESTMENT ADVISER Fidelity Management & Research Company (FMR) INVESTMENT SUB-ADVISERS Fidelity Management & Research (U.K.) Inc. (FMR U.K.)(stock funds) Fidelity Management & Research (Far East) Inc. (FMR Far East)(stock funds) Fidelity Investments Money Management, Inc. (FIMM) (money market fund) DISTRIBUTOR Fidelity Distributors Corporation (FDC) TRANSFER AGENT Fidelity Service Company, Inc. (FSC) SEL-ptb-0498 1.702309 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 as permitted under the Investment Company Act of 1940; (2) borrow money, except that a fund may borrow money for temporary or emergency purposes (not for leveraging or investment) in an amount not exceeding 33% 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% 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 Precious Metals and Minerals Portfolio or to American Gold Portfolio (see below); or (7) lend any security or make any other loan if, as a result, more than 33% 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. AMERICAN GOLD PORTFOLIO AND PRECIOUS METALS AND MINERALS PORTFOLIO MAY NOT: (1) purchase any precious metal if, as a result, more than 50% of its total assets would be invested in precious metals; or (2) purchase or sell physical commodities, provided that the fund may purchase and sell precious metals, and further provided that the fund may sell physical commodities acquired as a result of ownership of securities. The fund may not purchase or sell options, options on futures contracts, or futures contracts on physical commodities other than precious metals. FINANCIAL SERVICES PORTFOLIO, REGIONAL BANKS PORTFOLIO, AND HOME FINANCE PORTFOLIO MAY NOT: (1) with respect to 75% of total assets, purchase the securities of any issuer (other than securities issued or guaranteed by the U.S. government, or any of its agencies or instrumentalities) if, as a result, more than 5% of its total assets would be invested in the securities of that issuer; (2) purchase the securities of any issuer (except securities issued or guaranteed by the United States government or its agencies or instrumentalities) if, as a result, more than 10% of the outstanding voting securities of that issuer would be owned by the fund. 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, 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) for all stock funds). Each fund will not borrow from other funds advised by FMR or its affiliates if total outstanding borrowings immediately after such borrowing would exceed 15% of the fund's total assets. (vi) 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 5% 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 a 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, a fund were in a position where more than 10% of its assets was invested in illiquid securities, it would consider appropriate steps to protect liquidity. For the funds ' limitations on futures and options transactions, see the section entitled "Limitations Futures and O ptions Transactions" on page . 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 as 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% 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% 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% 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)). The fund will not borrow from other funds advised by FMR or its affiliates if total outstanding borrowings immediately after such borrowing would exceed 15% of the fund's total assets. (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 5% 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 a 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 a 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 a fund's taxable year. With respect to the limitation (vi), if through a change in values, net assets, or other circumstances, a fund were in a position where more than 10% of its net assets was invested in illiquid securities, it would consider appropriate steps to protect liquidity. For the funds' limitations on futures and options transactions, see the section entitled "Limitations on Futures and Options Transactions" on page . 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) if, as a result, (a) more than 5% of the fund's total assets would be invested in the securities of that issuer, or (b) the fund would hold more than 10% of the outstanding voting securities of that issuer. (2) issue senior securities, except as permitted under the Investment Company Act of 1940; (3) borrow money, except that the fund may (i) borrow money for temporary or emergency purposes (not for leveraging or investment) and (ii) engage in reverse repurchase agreements for any purpose; provided that (i) and (ii) in combination do not exceed 33% 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% 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% 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 a security issued or guaranteed by the U.S. Government or any of its agencies or instrumentalities) if, as a result, more than 5% of its total assets would be invested in the securities of a single issuer; provided that the fund may invest up to 25% of its total assets in the first tier securities of a single issuer for up to three business days. (This limit does not apply to investments of up to 25% of total assets in securities of other open-end investment companies managed by FMR or a successor or affiliate purchased pursuant to an exemptive order granted by the SEC). (ii) The fund does not currently intend to sell securities short, unless it owns or has the right to obtain securities equivalent in kind and amount to the securities sold short, and provided that transactions in futures contracts and options are not deemed to constitute selling securities short. (iii) The fund does not currently intend to purchase securities on margin, except that the fund may obtain such short-term credits as are necessary for the clearance of transactions, and provided that margin payments in connection with futures contracts and options on futures contracts shall not constitute purchasing securities on margin. (iv) The fund may borrow money only (a) from a bank or from a registered investment company or portfolio for which FMR or an affiliate serves as investment adviser or (b) by engaging in reverse repurchase agreements with any party. The fund will not borrow from other funds advised by FMR or its affiliates if total outstanding borrowings immediately after such borrowing would exceed 15% of the fund's total assets. (v) The fund does not currently intend to purchase any security if, as a result, more than 10% of its net assets would be invested in securities that are deemed to be illiquid because they are subject to legal or contractual restrictions on resale or because they cannot be sold or disposed of in the ordinary course of business at approximately the prices at which they are valued. (vi) The fund does not currently intend to 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 10% of the fund's net assets) to a registered investment company or portfolio for which FMR or an affiliate serves as investment adviser. (This limitation does not apply to purchases of debt securities or to repurchase agreements.) (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. 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 was invested in illiquid securities, it would consider appropriate steps to protect liquidity. For the money market fund's policies on quality and maturity, see the section entitled "Quality and Maturity" on page . BROKERAGE AND INVESTMENT MANAGEMENT PORTFOLIO AND FINANCIAL SERVICES PORTFOLIO. Rule 12d3-1 under the 1940 Act allows investment portfolios such as these funds to invest in companies engaged in securities-related activities subject to certain conditions. Purchases of securities of a company that derived 15% or less of gross revenues during its most recent fiscal year from securities-related activities (i.e., broker/dealer, underwriting, or investment advisory activities) are subject only to the same percentage limitations as would apply to any other security the funds may purchase. Each fund may purchase securities of an issuer that derived more than 15% of its gross revenues in its most recent fiscal year from securities-related activities, subject to the following conditions: a. the purchase cannot cause more than 5% of the fund's total assets to be invested in securities of that issuer; b. for an equity security, the purchase cannot result in the fund owning more than 5% of the issuer's outstanding securities in that class; c. for a debt security, the purchase cannot result in the fund's owning more than 10% of the outstanding principal amount of the issuer's debt securities. In applying the gross revenue test, an issuer's own securities-related activities must be combined with its ratable share of securities-related revenues from enterprises in which it owns a 20% or greater voting or equity interest. All of the above percentage limitations, as well as the issuer's gross revenue test, are applicable at the time of purchase. With respect to warrants, rights, and convertible securities, a determination of compliance with the above limitations shall be made as though such warrant, right, or conversion privilege had been exercised. A fund will not be required to divest its holdings of a particular issuer when circumstances subsequent to the purchase cause one of the above conditions not to be met. Each fund is not permitted to acquire any security issued by FMR, FDC, or any affiliated company of these companies that is a securities-related business. The purchase of a general partnership interest in a securities-related business is prohibited. MULTIMEDIA PORTFOLIO. The Federal Communications Commission (FCC) has certain rules which limit ownership of corporate broadcast licensees in an effort to assure that no one person or entity (including mutual funds) exercises an unacceptable degree of influence or control over broadcast facilities. AMERICAN GOLD PORTFOLIO AND PRECIOUS METALS AND MINERALS PORTFOLIO. American Gold Portfolio and Precious Metals and Minerals Portfolio each has the authority to invest a portion of its assets in precious metals, such as gold, platinum, palladium, and silver. No more than 50% of either fund's total assets may be invested in precious metals, including gold bullion or coins. FMR does not currently intend that either fund will hold gold coins, but the Trustees reserve the right of the funds to do so in the future. Transactions in gold coins will be entered into only with prior approval by the Trustees, prior notice to current shareholders, and provided that disclosure regarding the nature of such investments is set forth in a subsequent prospectus that is part of the registration statement declared effective by the Securities and Exchange Commission (SEC). In addition, the ability of the funds to hold gold coins may be restricted by the securities laws and/or regulations of states where the funds' shares are qualified for sale. The funds may also consider investments in securities indexed to the price of gold or other precious metals as an alternative to direct investments in precious metals. Precious Metals and Minerals Portfolio's gold-related investments will often contain securities of companies located in the Republic of South Africa, which is a principal producer of gold. Unsettled political and social conditions in South Africa and its neighboring countries, may from time to time pose certain risks to Precious Metals and Minerals Portfolio's investments in South African issuers. These events could also have an impact on American Gold Portfolio through their influence on the price of gold and related mining securities worldwide. FUND DESCRIPTIONS THE STOCK FUNDS INVEST PRIMARILY WITHIN THE INVESTMENT AREAS DESCRIBED BELOW. AIR TRANSPORTATION PORTFOLIO: COMPANIES ENGAGED IN THE REGIONAL, NATIONAL AND INTERNATIONAL MOVEMENT OF PASSENGERS, MAIL, AND FREIGHT VIA AIRCRAFT. These companies include the major airlines, commuter airlines, air cargo and express delivery operators, air freight forwarders, aviation service firms, and manufacturers of aeronautical equipment. Airline deregulation has substantially diminished the government's role in the air transport industry while promoting an increased level of competition. However, regulations and policies of various domestic and foreign governments can still affect the profitability of individual carriers as well as the entire industry. In addition to regulations and competition, the air transport industry is also very sensitive to fuel price levels and the state of foreign and domestic economies. AMERICAN GOLD PORTFOLIO: COMPANIES ENGAGED IN EXPLORATION, MINING, PROCESSING, OR DEALING IN GOLD, OR, TO A LESSER DEGREE, IN SILVER, PLATINUM, DIAMONDS, OR OTHER PRECIOUS METALS AND MINERALS. FMR also may invest in companies that manufacture and distribute precious metals 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. Normally at least 80% of the fund's assets will be invested in securities of North, Central and South American companies engaged in gold-related activities, and in gold bullion or coins. The fund also may invest in securities whose redemption value is indexed to the price of gold or other 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. FMR currently intends to treat such securities as investments in precious metals for the purposes of the fund's fundamental investment limitations, including the fund's 80% policy. The prices of gold and other precious metal mining securities have been subject to substantial fluctuations over short periods of time and may be affected by unpredictable international monetary and political developments such as currency devaluations or revaluations, economic and social conditions within a country, trade imbalances, or trade or currency restrictions between countries. Because much of the world's gold reserves are located in South Africa, the social upheaval and related economic difficulties there may, from time to time, influence the price of gold and the share values of precious metals mining companies located elsewhere. Investors should understand the special considerations and risks related to such an investment emphasis, and, accordingly, the potential effect on the fund's value. In addition to its investments in securities, the fund may invest a portion of its assets in gold or other precious metals in the form of bullion, coins, or securities indexed to the price of precious metals. The price s of gold and other precious metals are affected by broad economic and political conditions, but are less subject to local and company-specific factors than securities of individual companies. As a result, precious metals may be more or less volatile in price than securities of companies engaged in precious metals-related businesses. FMR intends to purchase only those forms of precious metals that are readily marketable and that can be stored in accordance with custody regulations applicable to mutual funds. The fund may incur higher custody and transaction costs for precious metals than for securities. Also, precious metals investments do not pay income. For the fund to qualify as a registered 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 the fund to hold or sell precious metals or securities when it would not otherwise do so. AUTOMOTIVE PORTFOLIO: COMPANIES 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. In addition, the fund may invest in companies that provide automotive-related services to manufacturers, distributors or consumers. The automotive industry is highly cyclical and companies involved in this business may suffer periodic operating losses. While most of the major manufacturers are large, financially strong companies, many others are small and may be non-diversified in both product line and customer base. BIOTECHNOLOGY PORTFOLIO: COMPANIES ENGAGED IN THE RESEARCH, DEVELOPMENT, AND MANUFACTURE OF VARIOUS BIOTECHNOLOGICAL PRODUCTS, SERVICES AND PROCESSES. These include companies involved with new or experimental technologies such as genetic engineering, hybridoma and recombinant DNA techniques and monoclonal antibodies. The fund may also invest in companies that manufacture and/or distribute biotechnological and biomedical products, including devices and instruments, and in companies that provide or benefit significantly from scientific and technological advances in biotechnology. Some biotechnology companies may provide processes or services instead of, or in addition to, products. The description of the biotechnology sector will be interpreted broadly by FMR, and may include applications and developments in such areas as human health care (e.g., cancer, infectious disease, diagnostics and therapeutics); pharmaceuticals (e.g., new drug development and production); agricultural and veterinary applications (e.g., improved seed varieties, animal growth hormones); chemicals (e.g., enzymes, toxic waste treatment); medical/surgical (e.g., epidermal growth factor, in vivo imaging/therapeutics); and industry (e.g., biochips, fermentation, enhanced mineral recovery). Many of these companies may have losses and may not offer products until the end of the decade. These companies may have persistent losses during a new product's transition from development to production, and revenue patterns may be erratic. In addition, biotechnology companies are affected by patent considerations, intense competition, rapid technological change and obsolescence, and regulatory requirements of the U.S. Food and Drug Administration, the Environmental Protection Agency (EPA), state and local governments, and foreign regulatory authorities. Many of these companies are relatively small and their stock is thinly traded. BROKERAGE AND INVESTMENT MANAGEMENT PORTFOLIO: COMPANIES ENGAGED IN STOCK BROKERAGE, COMMODITY BROKERAGE, INVESTMENT BANKING, TAX-ADVANTAGED INVESTMENT OR INVESTMENT SALES, INVESTMENT MANAGEMENT, OR RELATED INVESTMENT ADVISORY SERVICES. The fund may invest in diversified companies with operations in the aforementioned areas, in addition to firms principally engaged in brokerage activities or investment management. The fund will not invest in securities of FMR or its affiliated companies. Changes in regulations, the brokerage commission structure, and the competitive environment, combined with the operating leverage inherent in companies in these industries, can produce erratic revenues and earnings over time. The performance of companies in this industry can be closely tied to the stock market and can suffer during market declines. Revenues often depend on overall market activity. SEC regulations provide that the fund may not invest more than 5% of its total assets in the securities of any one company that derives more than 15% of its revenues from brokerage or investment management activities. These companies as well as those deriving more than 15% of profits from brokerage and investment management activities will be considered to be "principally engaged" in this fund's specific business activity. BUSINESS SERVICES AND OUTSOURCING PORTFOLIO: COMPANIES THAT PROVIDE BUSINESS-RELATED SERVICES TO COMPANIES AND OTHER ORGANIZATIONS. Business-related services may include 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, these services are provided on a contract or fee basis. The success of companies that provide business-related services is, in part, subject to continued demand for such services as companies and other organizations seek alternative, cost effective means to meet their economic goals. Competitive pressures, such as technological developments, fixed-rate pricing, and the ability to attract and retain skilled employees, also may have a significant impact on the financial condition of companies in the business services and outsourcing industry. CHEMICALS PORTFOLIO: COMPANIES ENGAGED IN THE RESEARCH, DEVELOPMENT, MANUFACTURE OR MARKETING OF PRODUCTS OR SERVICES RELATED TO THE CHEMICAL PROCESS INDUSTRIES. Such products may include synthetic and natural materials, such as basic and intermediate organic and inorganic chemicals, plastics, synthetic fibers, fertilizers, industrial gases, flavorings, fragrances, biological materials, catalysts, carriers, additives, and process aids. The fund may also invest in companies providing design, engineering, construction, and consulting services to companies engaged in chemical processing. Companies in the chemical processing field are subject to regulation by various federal and state authorities, including the EPA and its state agency counterparts. As regulations are developed and enforced, such companies may be required to alter or cease production of a product, to pay fines or to pay for cleaning up a disposal site, or to agree to restrictions on their operations. In addition, some of the materials and processes used by these companies involve hazardous components. There are risks associated with their production, handling and disposal. These risks are in addition to the more common risks of intense competition and product obsolescence. COMPUTERS PORTFOLIO: COMPANIES ENGAGED IN RESEARCH, DESIGN, DEVELOPMENT, MANUFACTURE OR DISTRIBUTION OF PRODUCTS, PROCESSES OR SERVICES THAT RELATE TO CURRENTLY AVAILABLE OR EXPERIMENTAL HARDWARE TECHNOLOGY WITHIN THE COMPUTER INDUSTRY. The fund may invest in companies that provide the following products or services: mainframes, minicomputers, microcomputers, peripherals, data or information processing, office or factory automation, robotics, artificial intelligence, computer aided design, medical technology, engineering and manufacturing, data communications and software. Competitive pressures may have a significant effect on the financial conditions of companies in the computer industry. For example, as product cycles shorten and manufacturing capacity increases, these companies could become increasingly subject to aggressive pricing, which hampers profitability. Fluctuating domestic and international demand also affect profitability. CONSTRUCTION AND HOUSING PORTFOLIO: COMPANIES ENGAGED IN THE DESIGN AND CONSTRUCTION OF RESIDENTIAL, COMMERCIAL, INDUSTRIAL AND PUBLIC WORKS FACILITIES, AS WELL AS COMPANIES ENGAGED IN THE MANUFACTURE, SUPPLY, DISTRIBUTION OR SALE OF PRODUCTS OR SERVICES TO THESE CONSTRUCTION INDUSTRIES. Examples of companies engaged in these activities include companies that provide engineering and contracting services, companies that supply home furnishings, and companies that produce basic building materials such as cement, aggregates, gypsum, timber, and wall and floor coverings. The fund also may invest in the securities of companies involved in real estate development and construction financing such as homebuilders, architectural and design firms, and property managers. Additionally, the fund may invest in 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. The companies in which the fund may invest are subject to, among other factors, changes in government spending on public works and transportation facilities such as highways and airports, as well as changes in interest rates and levels of economic activity, government-sponsored housing subsidy programs, rate of housing turnover, taxation, demographic patterns, consumer spending, consumer confidence, and new and existing home sales. CONSUMER INDUSTRIES PORTFOLIO: COMPANIES ENGAGED IN THE MANUFACTURE AND DISTRIBUTION OF GOODS TO CONSUMERS BOTH DOMESTICALLY AND INTERNATIONALLY. The fund may invest in companies that manufacture or sell durable products such as homes, cars, boats, furniture, major appliances, and personal computers. The fund also may invest in companies that manufacture, wholesale, or retail non-durable goods such as food, beverages, tobacco, health care products, household and personal care products, apparel, and entertainment products (e.g., books, magazines, TV, cable, movies, music, gaming, sports). In addition, the fund may invest in consumer products and services such as lodging, child care, convenience stores, and car rentals. The success of durable goods manufacturers and retailers is closely tied to the performance of the overall economy, interest rates, and consumer confidence. These segments are very competitive; success depends heavily on household disposable income and consumer spending. Consumer product and retailing concepts tend to rise and fall with changes in demographics and consumer tastes. CYCLICAL INDUSTRIES PORTFOLIO: COMPANIES ENGAGED IN THE RESEARCH, DEVELOPMENT, MANUFACTURE, DISTRIBUTION, SUPPLY, OR SALE OF MATERIALS, EQUIPMENT, PRODUCTS OR SERVICES RELATED TO CYCLICAL INDUSTRIES. These may include the automotive, chemical, construction and housing, defense and aerospace, environmental services, industrial equipment and materials, paper and forest products, and transportation industries. Many companies in these industries are significantly affected by general economic trends including employment, economic growth, and interest rates. Other factors that may affect these industries are changes in consumer sentiment and spending, commodity prices, legislation, government regulation and spending, import controls, and worldwide competition. At times, worldwide production of the materials used in cyclical industries has exceeded demand as a result of, for example, over-building or economic downturns. During these times, commodity price declines and unit volume reductions resulted in poor investment returns and losses. Furthermore, a company in the cyclical industries may be subject to liability for environmental damage, depletion of resources, and mandated expenditures for safety and pollution control. DEFENSE AND AEROSPACE PORTFOLIO: COMPANIES ENGAGED IN THE RESEARCH, MANUFACTURE OR SALE OF PRODUCTS OR SERVICES RELATED TO THE DEFENSE OR AEROSPACE INDUSTRIES. The fund may invest in companies that provide the following products or services: air transport; defense electronics; aircraft or spacecraft production; missile design; data processing or computer-related services; communications systems; research; development and manufacture of military weapons and transportation; general aviation equipment, missiles, space launch vehicles, and spacecraft; units for guidance, propulsion, and control of flight vehicles; and equipment components and airborne and ground-based equipment essential to the testing, operation, and maintenance of flight vehicles. Companies involved in the defense and aerospace industries rely to a large extent on U.S. (and other) government demand for their products and services. The financial condition of such companies and investor interest in the stocks of these companies are heavily influenced by federal defense and aerospace spending policies. For example, defense spending is currently under pressure from efforts to control the U.S. budget deficit. DEVELOPING COMMUNICATIONS PORTFOLIO: COMPANIES ENGAGED IN THE DEVELOPMENT, MANUFACTURE OR SALE OF EMERGING COMMUNICATIONS SERVICES OR EQUIPMENT. The fund may invest in companies developing or offering services or products based on communications technologies such as cellular, paging, personal communications networks, special mobile radio, facsimile, fiber optic transmission, voice mail, video conferencing, microwave, satellite, local and wide area networking, and other transmission electronics. For purposes of characterizing the fund's investments, communications services or equipment may be deemed to be "emerging" if they derive from new technologies or new applications of existing technologies. The fund will focus on companies whose business is based on these emerging technologies, with less emphasis on traditional telephone utilities and large long distance carriers. The fund will attempt to exploit growth opportunities presented by new technologies and applications in the communications field. Many of these opportunities may be in the development stage and, as such, can pose large risks as well as potential rewards. Such risks might include failure to obtain (or delays in obtaining) adequate financing or necessary regulatory approvals, intense competition, product incompatibility, consumer preferences and rapid obsolescence. Securities of small companies that base their business on emerging technologies may be volatile due to limited product lines, markets, or financial resources. ELECTRONICS PORTFOLIO: COMPANIES ENGAGED IN THE DESIGN, MANUFACTURE, OR SALE OF ELECTRONIC COMPONENTS (SEMICONDUCTORS, CONNECTORS, PRINTED CIRCUIT BOARDS AND OTHER COMPONENTS); EQUIPMENT VENDORS TO ELECTRONIC COMPONENT MANUFACTURERS; ELECTRONIC COMPONENT DISTRIBUTORS; AND ELECTRONIC INSTRUMENTS AND ELECTRONIC SYSTEMS VENDORS. In addition, the fund may invest in companies in the fields of defense electronics, medical electronics, consumer electronics, advanced manufacturing technologies (computer-aided design and computer-aided manufacturing [CAD/CAM], computer-aided engineering, and robotics), lasers and electro-optics, and other new electronic technologies. Many of the products offered by companies engaged in the design, production or distribution of electronic products are subject to risks of rapid obsolescence and intense competition. ENERGY PORTFOLIO: COMPANIES IN THE ENERGY FIELD, INCLUDING THE CONVENTIONAL AREAS OF OIL, GAS, ELECTRICITY AND COAL, AND NEWER SOURCES OF ENERGY SUCH AS NUCLEAR, GEOTHERMAL, OIL SHALE AND SOLAR POWER. The business activities of companies in which the fund may invest include: production, generation, transmission, refining, marketing, control, distribution or measurement of energy or energy fuels such as petrochemicals; providing component parts or services to companies engaged in the above activities; energy research or experimentation; and environmental activities related to the solution of energy problems, such as energy conservation and pollution control. Companies participating in new activities resulting from technological advances or research discoveries in the energy field will also be considered for this fund. The securities of companies in the energy field are subject to changes in value and dividend yield which depend, to a large extent, on the price and supply of energy fuels. Swift price and supply fluctuations may be caused by events relating to international politics, energy conservation, the success of exploration projects, and tax and other regulatory policies of various governments. ENERGY SERVICE PORTFOLIO: COMPANIES IN THE ENERGY SERVICE FIELD, INCLUDING THOSE THAT PROVIDE SERVICES AND EQUIPMENT TO THE CONVENTIONAL AREAS OF OIL, GAS, ELECTRICITY AND COAL, AND NEWER SOURCES OF ENERGY SUCH AS NUCLEAR, GEOTHERMAL, OIL SHALE AND SOLAR POWER. The fund may invest in companies involved in providing services and equipment for drilling processes such as offshore and onshore drilling, drill bits, drilling rig equipment, drilling string equipment, drilling fluids, tool joints and wireline logging. Many energy service companies are engaged in production and well maintenance, providing such products and services as packers, perforating equipment, pressure pumping, downhole equipment, valves, pumps, compression equipment, and well completion equipment and service. Certain companies supply energy providers with exploration technology such as seismic data, geological and geophysical services, and interpretation of this data. The fund may also invest in companies with a variety of products or services including pipeline construction, oil tool rental, underwater well services, helicopter services, geothermal plant design or construction, electric and nuclear plant design or construction, energy-related capital equipment, mining related equipment or services, and high technology companies serving the above industries. Energy service firms are affected by supply, demand and other normal competitive factors for their specific products or services. They are also affected by other unpredictable factors such as supply and demand for oil and gas, prices of oil and gas, exploration and production spending, governmental regulation, world events and economic conditions. ENVIRONMENTAL SERVICES PORTFOLIO: COMPANIES ENGAGED IN THE RESEARCH, DEVELOPMENT, MANUFACTURE OR DISTRIBUTION OF PRODUCTS, PROCESSES OR SERVICES RELATED TO WASTE MANAGEMENT OR POLLUTION CONTROL. Such products, processes or services may include the transportation, treatment and disposal of both hazardous and solid wastes, including waste-to-energy and recycling; remedial project efforts, including groundwater and underground storage tank decontamination, asbestos cleanup and emergency cleanup response; and the detection, analysis, evaluation, and treatment of both existing and potential environmental problems including, among others, contaminated water, air pollution, and acid rain. The fund may also invest in companies that provide design, engineering, construction, and consulting services to companies engaged in waste management or pollution control. The environmental services field has generally been positively influenced by legislation resulting in stricter government regulations and enforcement policies for both commercial and governmental generators of waste materials, as well as specific expenditures designated for remedial cleanup efforts. Companies in the environmental services field are also affected by regulation by various federal and state authorities, including the federal EPA and its state agency counterparts. As regulations are developed and enforced, such companies may be required to alter or cease production of a product or service or to agree to restrictions on their operations. In addition, since the materials handled and processes involved include hazardous components, there is significant liability risk. There are also risks of intense competition within the environmental services field. FINANCIAL SERVICES PORTFOLIO: COMPANIES PROVIDING FINANCIAL SERVICES TO CONSUMERS AND INDUSTRY. Companies in the financial services sector include: commercial banks and savings and loan associations, consumer and industrial finance companies, securities brokerage companies, real estate-related companies, leasing companies, and a variety of firms in all segments of the insurance industry such as multi-line, property and casualty, and life insurance. The financial services sector is currently undergoing relatively rapid change as existing distinctions between financial service segments become less clear. For instance, recent business combinations have included insurance, finance, and securities brokerage under single ownership. Some primarily retail corporations have expanded into securities and insurance industries. Moreover, the federal laws generally separating commercial and investment banking are currently being studied by Congress. Banks, savings and loan associations, and finance companies are subject to extensive governmental regulation which may limit both the amounts and types of loans and other financial commitments they can make and the interest rates and fees they can charge. The profitability of these groups is largely dependent on the availability and cost of capital funds, and can fluctuate significantly when interest rates change. In addition, general economic conditions are important to the operations of these concerns, with exposure to credit losses resulting from possible financial difficulties of borrowers potentially having an adverse effect. Insurance companies are likewise subject to substantial governmental regulation, predominantly at the state level, and may be subject to severe price competition. Securities and Exchange Commission (SEC) regulations provide that the fund may not invest more than 5% of its total assets in the securities of any one company that derives more than 15% of its revenues from brokerage or investment management activities. These companies as well as those deriving more than 15% of profits from brokerage and investment management activities are considered to be "principally engaged" in the business activities of the financial services sector. FOOD AND AGRICULTURE PORTFOLIO: COMPANIES ENGAGED IN THE MANUFACTURE, SALE OR DISTRIBUTION OF FOOD AND BEVERAGE PRODUCTS, AGRICULTURAL PRODUCTS, AND PRODUCTS RELATED TO THE DEVELOPMENT OF NEW FOOD TECHNOLOGIES. The goods and services provided or manufactured by companies in which the fund may invest include: packaged food products such as cereals, pet foods and frozen foods; meat and poultry processing; the production of hybrid seeds; the wholesale and retail distribution and warehousing of food and food-related products, including restaurants; and the manufacture and distribution of health food and dietary products, fertilizer and agricultural machinery, wood products, tobacco, and tobacco leaf. In addition, the fund may invest in food technology companies engaged in and pioneering the development of new technologies to provide improved hybrid seeds, new and safer food storage, and new enzyme technologies. The success of food and food-related products is closely tied to supply and demand, which may be strongly affected by demographic and product trends, stimulated by food fads, marketing campaigns, and environmental factors. In the United States, the agricultural products industry is subject to regulation by numerous federal and municipal government agencies. HEALTH CARE PORTFOLIO: COMPANIES ENGAGED IN THE DESIGN, MANUFACTURE, OR SALE OF PRODUCTS OR SERVICES USED FOR OR IN CONNECTION WITH HEALTH CARE OR MEDICINE. Companies in the health care sector include pharmaceutical companies; firms that design, manufacture, sell, or supply medical, dental, and optical products, hardware or services; companies involved in biotechnology, medical diagnostic, and biochemical research and development, as well as companies involved in the operation of health care facilities. Many of these companies are subject to government regulation of their products and services, a factor which could have a significant and possibly unfavorable effect on the price and availability of such products or services. Furthermore, the types of products or services produced or provided by these companies may become obsolete quickly. HOME FINANCE PORTFOLIO: COMPANIES ENGAGED IN INVESTING IN REAL ESTATE, USUALLY THROUGH MORTGAGES AND OTHER CONSUMER-RELATED LOANS. These companies may also offer discount brokerage services, insurance products, leasing services, and joint venture financing. The fund may invest in mortgage banking companies, government-sponsored enterprises, real estate investment trusts, consumer finance companies, and similar entities, as well as savings and loan associations, savings banks, building and loan associations, cooperative banks, commercial banks, and similar depository institutions. The fund may invest in U.S. depository institutions whose customer deposits are insured by the Savings Association Insurance Fund (SAIF) or the Bank Insurance Fund (BIF). The residential real estate finance industry has changed rapidly over the last decade. Regulatory changes at federally insured institutions, in response to a high failure rate, have mandated higher capital ratios and more prudent underwriting. This reduced capacity has created growth opportunities for uninsured companies and secondary market products to fill unmet demand for home finance. Continued change in the origination, packaging, selling, holding, and insuring of home finance products is expected going forward. The fund will be influenced by potential regulatory changes, interest rate movements, the level of home mortgage demand, and residential delinquency trends. INDUSTRIAL EQUIPMENT PORTFOLIO: COMPANIES ENGAGED IN THE MANUFACTURE, DISTRIBUTION OR SERVICE OF PRODUCTS AND EQUIPMENT FOR THE INDUSTRIAL SECTOR, INCLUDING INTEGRATED PRODUCERS OF CAPITAL EQUIPMENT (SUCH AS GENERAL INDUSTRY MACHINERY, FARM EQUIPMENT, AND COMPUTERS), PARTS SUPPLIERS AND SUBCONTRACTORS. The fund may invest in companies that manufacture products or service equipment for the food, clothing or sporting goods industries; 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; cable equipment companies; and office automation companies. The success of equipment manufacturing and distribution companies is closely tied to overall capital spending levels. Capital spending is influenced by the individual company's profitability and broader factors such as interest rates and foreign competition, which are partly determined by currency exchange rates. Equipment manufacturing concerns may also be affected by economic cycles, technical obsolescence, labor relations difficulties and government regulations pertaining to products, production facilities, or production processes. INDUSTRIAL MATERIALS PORTFOLIO: COMPANIES ENGAGED IN THE MANUFACTURE, MINING, PROCESSING, OR DISTRIBUTION OF RAW MATERIALS AND INTERMEDIATE GOODS USED IN THE INDUSTRIAL SECTOR. The products handled by the companies in which the fund may invest include chemicals, timber, paper, copper, iron ore, nickel, steel, aluminum, textiles, cement, and gypsum. The fund may also invest in the securities of mining, processing, transportation, and distribution companies, including equipment suppliers and railroads. Many companies in the industrial sector are significantly affected by the level and volatility of commodity prices, the exchange value of the dollar, import controls, and worldwide competition. At times, worldwide production of these materials has exceeded demand as a result of over-building or economic downturns. During these times, commodity price declines, and unit volume reductions have led to poor investment returns and losses. Other risks include liability for environmental damage, depletion of resources, and mandated expenditures for safety and pollution control. INSURANCE PORTFOLIO: COMPANIES ENGAGED IN UNDERWRITING, REINSURING, SELLING, DISTRIBUTING, OR PLACING OF PROPERTY AND CASUALTY, LIFE, OR HEALTH INSURANCE. The fund may invest in multi-line companies that provide property and casualty coverage, as well as life and health insurance. The fund may invest in insurance brokers, reciprocals, and claims processors. The fund may also invest in diversified financial companies with subsidiaries (including insurance brokers, reciprocals and claims processors) engaged in underwriting, reinsuring, selling, distributing or placing insurance with independent third parties. Insurance company profits are affected by interest rate levels, general economic conditions, and price and marketing competition. Property and casualty insurance profits may also be affected by weather catastrophes and other disasters. Life and health insurance profits may be affected by mortality and morbidity rates. Individual companies may be exposed to material risks including reserve inadequacy and the inability to collect from reinsurance carriers. Insurance companies are subject to extensive governmental regulation, including the imposition of maximum rate levels, which may not be adequate for some lines of business. Proposed or potential tax law changes may also adversely affect insurance companies' policy sales, tax obligations, and profitability. LEISURE PORTFOLIO: COMPANIES ENGAGED IN THE DESIGN, PRODUCTION, OR DISTRIBUTION OF GOODS OR SERVICES IN THE LEISURE INDUSTRIES. The goods or services provided by companies in which the fund may invest include: television and radio broadcast or manufacture (including cable television); motion pictures and photography; recordings and musical instruments; publishing, including newspapers and magazines; sporting goods and camping and recreational equipment; and sports arenas. Other goods and services may include toys and games (including video and other electronic games), amusement and theme parks, travel and travel-related services, hotels and motels, leisure apparel or footwear, fast food, beverages, restaurants, tobacco products, and gaming casinos. Securities of companies in the leisure industries may be considered speculative. Companies engaged in entertainment, gaming, broadcasting, cable television and cellular communications, for example, have unpredictable earnings, due in part to changing consumer tastes and intense competition. Securities of companies in the leisure industries generally exhibit greater volatility than the overall market. The market has been known to react strongly to technological developments and to the specter of government regulation in the leisure industries. MEDICAL DELIVERY PORTFOLIO: COMPANIES ENGAGED IN THE OWNERSHIP OR MANAGEMENT OF HOSPITALS, NURSING HOMES, HEALTH MAINTENANCE ORGANIZATIONS, AND OTHER COMPANIES SPECIALIZING IN THE DELIVERY OF HEALTH CARE SERVICES. The fund may invest in companies that operate acute care, psychiatric, teaching, or specialized treatment hospitals; firms that provide outpatient surgical, outpatient rehabilitation, or other specialized care, home health care, drug and alcohol abuse treatment, and dental care; firms operating comprehensive health maintenance organizations and nursing homes for the elderly and disabled; and firms that provide related laboratory services. Federal and state governments provide a substantial percentage of revenues to health care service providers via Medicare and Medicaid. The future growth of this source of funds is subject to great uncertainty. Additionally, the complexion of the private payment system is changing. For example, insurance companies are beginning to offer long-term health care insurance for nursing home patients to supplement or replace government benefits. Also, membership in health maintenance organizations or prepaid health plans is displacing individual payments for each service rendered by a hospital or physician. The demand for health care services will tend to increase as the population ages. However, review of patients' need for hospitalization by Medicare and health maintenance organizations has demonstrated the ability of health care providers to curtail unnecessary hospital stays and reduce costs. MEDICAL EQUIPMENT AND SYSTEMS PORTFOLIO: COMPANIES ENGAGED IN RESEARCH, DEVELOPMENT, MANUFACTURE, DISTRIBUTION, SUPPLY OR SALE OF MEDICAL EQUIPMENT AND DEVICES AND RELATED TECHNOLOGIES. For example, the fund may invest in companies involved in the design and manufacture of medical equipment and devices, drug delivery technologies, hospital equipment and supplies, medical instrumentation and medical diagnostics. Companies in this industry may be affected by patent considerations, rapid technological change and obsolescence, government regulation, and government reimbursement for medical expenses. MULTIMEDIA PORTFOLIO: COMPANIES ENGAGED IN THE DEVELOPMENT, PRODUCTION, SALE AND DISTRIBUTION OF GOODS OR SERVICES USED IN THE BROADCAST AND MEDIA INDUSTRIES. Business activities of companies in which the fund may invest include: ownership, operation, or broadcast of free or pay television, radio or cable stations; publication and sale of newspapers, magazines, books or video products; and distribution of data-based information. The fund may also invest in companies involved in the development, syndication and transmission of the following products: television and movie programming, pay-per-view television, advertising, cellular communications, and emerging technology for the broadcast and media industries. Some of the companies in the broadcast and media industries are undergoing significant change because of federal deregulation of cable and broadcasting. As a result, competitive pressures are intense and the stocks are subject to increased price volatility. FCC rules govern the concentration of investment in AM, FM, or TV stations, limiting investment alternatives. NATURAL GAS PORTFOLIO: COMPANIES ENGAGED IN THE PRODUCTION, TRANSMISSION, AND DISTRIBUTION OF NATURAL GAS, AND INVOLVED IN THE EXPLORATION OF POTENTIAL NATURAL GAS SOURCES, AS WELL AS THOSE COMPANIES THAT PROVIDE SERVICES AND EQUIPMENT TO NATURAL GAS PRODUCERS, REFINERIES, COGENERATION FACILITIES, CONVERTERS, AND DISTRIBUTORS. The business activities of companies in which the fund may invest include: production, transmission, distribution, marketing, control, or measurement of natural gas; exploration of potential natural gas sources; providing component parts or services to companies engaged in the above activities; natural gas research or experimentation; and environmental activities related to the solution of energy problems, such as energy conservation or pollution control through the use of natural gas. The fund may also invest in companies participating in new activities working toward technological advances in the natural gas industry. The companies in the natural gas industry are subject to, among other factors, changes in price and supply of both conventional and alternative energy sources. Swift price and supply fluctuations may be caused by events relating to international politics, energy conservation, the success of energy source exploration projects, and tax and other regulatory policies of domestic and foreign governments. NATURAL RESOURCES PORTFOLIO: COMPANIES THAT OWN OR DEVELOP NATURAL RESOURCES, OR SUPPLY GOODS AND SERVICES TO SUCH COMPANIES. 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. Exploring, mining, refining, processing, transporting, and fabricating are examples of activities of companies in the natural resources sector. Precious metals, at times, have been subject to substantial price fluctuations over short periods of time and may be affected by unpredictable international 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 fund may also consider instruments and securities indexed to the price of gold or other precious metals as an alternative to direct investments in precious metals. As a practical matter, investments in physical commodities can present concerns such as delivery, storage and maintenance, possible illiquidity and the unavailability of accurate market valuations. FMR, in addressing these concerns, currently intends to purchase only readily marketable precious metals and to deliver and store them with a qualified U.S. bank. Investments in bullion earn no investment income and may involve higher custody and transaction costs than investments in securities. For the 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 the fund to hold or sell precious metals or securities when it would not otherwise do so. PAPER AND FOREST PRODUCTS PORTFOLIO: COMPANIES ENGAGED IN THE MANUFACTURE, RESEARCH, SALE, OR DISTRIBUTION OF PAPER PRODUCTS, PACKAGING PRODUCTS, BUILDING MATERIALS (SUCH AS LUMBER AND PANELING PRODUCTS), AND OTHER PRODUCTS RELATED TO THE PAPER AND FOREST PRODUCTS INDUSTRY. The fund may invest in diversified companies with operations in the aforementioned areas. The success of these companies depends on, among other things, the health of the economy, worldwide production capacity and prevailing interest rate levels, which, in turn, may affect product pricing, costs and operating margins. These variables also affect the level of industry and consumer capital spending for paper and forest products. PRECIOUS METALS AND MINERALS PORTFOLIO: COMPANIES ENGAGED IN EXPLORATION, MINING, PROCESSING OR DEALING IN GOLD, SILVER, PLATINUM, DIAMONDS OR OTHER PRECIOUS METALS AND MINERALS. The fund may also invest in companies that manufacture and distribute precious metals 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. Under normal conditions, the fund will invest at least 80% of its assets in (i) securities of companies principally engaged in exploration, mining, processing, or dealing in gold, silver, platinum, diamonds, or other precious metals and minerals, and (ii) precious metals. The fund also may invest in securities whose redemption value is indexed to the price of gold or other 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. FMR currently intends to treat such securities as investments in precious metals for the purposes of the fund's fundamental investment limitations, including the fund's 80% policy. The value of the fund's investments may be affected by changes in the price of gold and other precious metals. Gold has been subject to substantial price fluctuations over short periods of time and may be affected by unpredictable international monetary and political developments such as currency devaluations or revaluations; economic and social conditions within a country; trade imbalances; or trade or currency restrictions between countries. Because much of the world's known gold reserves are located in South Africa, the social upheaval and related economic difficulties there may, from time to time, influence the price of gold and the share values of precious metals mining companies located elsewhere. Because companies involved in exploring, mining, processing, or dealing in precious metals or minerals are frequently located outside of the United States, all or a significant portion of this fund may be invested in securities of foreign issuers. Investors should understand the special considerations and risks related to such an investment emphasis, and accordingly, the potential effect on the fund's value. In addition to its investments in securities, the fund may invest a portion of its assets in precious metals, such as gold, silver, platinum, and palladium. The prices of precious metals are affected by broad economic and political conditions, but are less subject to local and company-specific factors than securities of individual companies. As a result, precious metals may be more or less volatile in price than securities of companies engaged in precious metals-related businesses. The fund may purchase precious metals in any form, including bullion and coins ; however, FMR intends to purchase only those forms of precious metals that are readily marketable and that can be stored in accordance with custody regulations applicable to mutual funds. The fund may incur higher custody and transaction costs for precious metals than for securities. Also, precious metals investments do not pay income. For the 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 the fund to hold or sell precious metals or securities when it would not otherwise do so. REGIONAL BANKS PORTFOLIO: COMPANIES ENGAGED IN ACCEPTING DEPOSITS AND MAKING COMMERCIAL AND PRINCIPALLY NON-MORTGAGE CONSUMER LOANS. In addition, these companies may offer the following services: merchant banking, consumer and commercial finance, discount brokerage, leasing and insurance. These companies concentrate their operations within a specific part of the country rather than operating predominantly on a national or international scale. The fund may invest in securities of foreign institutions, although the majority of publicly-traded regional banks currently are organized in the United States. The fund may invest in U.S. institutions whose customer deposits may or may not be insured by the federal government. Such U.S. institutions may include, but are not limited to, state chartered banks, savings and loan institutions, and banks that are members of the Federal Reserve System. Federal laws generally separating commercial and investment banking, as well as laws governing the capitalization and regulation of the savings and loan industry, are currently being reexamined by Congress. The services offered by banks may expand if legislation broadening bank powers is enacted. While providing diversification, expanded powers could expose banks to well-established competitors, particularly as the historical distinctions between regional banks and other financial institutions erode. Increased competition may also result from the broadening of regional and national interstate banking powers, which has already reduced the number of publicly traded regional banks. In addition, general economic conditions are important to regional banking concerns, with exposure to credit losses resulting from possible financial difficulties of borrowers potentially having an adverse effect. RETAILING PORTFOLIO: COMPANIES ENGAGED IN MERCHANDISING FINISHED GOODS AND SERVICES PRIMARILY TO INDIVIDUAL CONSUMERS. Companies in which the fund may invest include: general merchandise retailers, department stores, food retailers, drug stores, and any specialty retailers selling a single category of merchandise such as apparel, toys, consumer electronics, or home improvement products. The fund may also invest in companies engaged in selling goods and services through alternative means such as direct telephone marketing, mail order, membership warehouse clubs, computer, or video based electronic systems. The success of retailing companies is closely tied to consumer spending which, in turn, is affected by general economic conditions and consumer confidence levels. The retailing industry is highly competitive; success is often tied to a company's ability to anticipate changing consumer tastes. SOFTWARE AND COMPUTER SERVICES PORTFOLIO: COMPANIES ENGAGED IN RESEARCH, DESIGN, PRODUCTION OR DISTRIBUTION OF PRODUCTS OR PROCESSES THAT RELATE TO SOFTWARE OR INFORMATION-BASED SERVICES. The fund may invest in companies that provide systems level software (designed to run the basic functions of a computer) or applications software (designed for one type of work) directed at either horizontal (general use) or vertical (certain industries or groups) markets, time-sharing services, information-based services, computer consulting or facilities management services, communications software, and data communications services. Competitive pressures may have a significant effect on the financial condition of companies in the software and computer services industries. For example, the increasing number of companies and product offerings in the vertical and horizontal markets may lead to aggressive pricing and slower selling cycles. TECHNOLOGY PORTFOLIO: COMPANIES WHICH FMR BELIEVES HAVE, OR WILL DEVELOP, PRODUCTS, PROCESSES OR SERVICES THAT WILL PROVIDE OR WILL BENEFIT SIGNIFICANTLY FROM TECHNOLOGICAL ADVANCES AND IMPROVEMENTS. These 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. Competitive pressures may have a significant effect on the financial condition of companies in the technology sector. For example, if technology continues to advance at an accelerated rate, and the number of companies and product offerings continue to expand, these companies could become increasingly sensitive to short product cycles and aggressive pricing. TELECOMMUNICATIONS PORTFOLIO: COMPANIES ENGAGED IN THE DEVELOPMENT, MANUFACTURE, OR SALE OF COMMUNICATIONS SERVICES OR COMMUNICATIONS EQUIPMENT. Companies in the telecommunications field offer a variety of services and products, including local and long-distance telephone service; cellular, paging, local and wide area product networks; satellite, microwave and cable television; and equipment used to provide these products and services. Long-distance telephone companies may also have interests in new technologies, such as fiber optics and data transmission. Telephone operating companies are subject to both federal and state regulation affecting permitted rates of return and the kinds of services that may be offered. Telephone companies usually pay an above-average dividend. However, the fund's investment decisions are based primarily upon capital appreciation potential rather than income considerations. Certain types of companies in which the fund may invest are engaged in fierce competition for a share of the market for their products. In recent years, these companies have been providing goods or services such as private and local area networks, or engaged in the sale of telephone set equipment. TRANSPORTATION PORTFOLIO: COMPANIES ENGAGED IN PROVIDING TRANSPORTATION SERVICES OR COMPANIES ENGAGED IN THE DESIGN, MANUFACTURE, DISTRIBUTION, OR SALE OF TRANSPORTATION EQUIPMENT. Transportation services may include, for example, companies involved in the movement of freight or people such as airline, railroad, ship, truck, and bus companies. Other service companies include those that provide automobile, truck, container, rail car, and plane leasing and maintenance. Equipment manufacturers include makers of trucks, autos, planes, containers, rail cars, or any other mode of transportation and their related products. In addition, the fund may invest in companies that sell fuel-saving devices to the transportation industries and those that sell insurance and software developed primarily for transportation companies. Risk factors that affect transportation stocks include the state of the economy, fuel prices, labor agreements, and insurance costs. Transportation stocks are cyclical and have occasional sharp price movements. The U.S. trend has been to deregulate these industries, which could have a favorable long-term effect, but future government decisions may adversely affect these companies. UTILITIES GROWTH PORTFOLIO: COMPANIES IN THE PUBLIC UTILITIES INDUSTRY AND COMPANIES DERIVING A MAJORITY OF THEIR REVENUES FROM THEIR PUBLIC UTILITY OPERATIONS. The fund may invest in companies engaged in the manufacture, production, generation, transmission and sale of gas and electric energy; water supply, waste disposal and sewerage and sanitary service companies; and companies engaged in the communications field, including telephone, telegraph, satellite, microwave and the provision of other communication facilities for the public benefit (not including companies involved in public broadcasting). Public utility stocks have traditionally produced above-average dividend income, but the fund's investments are made based on capital appreciation potential. The fund may not own more than 5% of the outstanding voting securities of more than one public utility company as defined by the Public Utility Holding Company Act of 1935. This policy is non-fundamental and may be changed by the Board of Trustees. 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 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 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. CLOSED-END INVESTMENT COMPANIES are investment companies that issue a fixed number of shares which trade on a stock exchange or over-the-counter. Closed-end investment companies are professionally managed and may invest in any type of security. Shares of closed-end investment companies may trade at a premium or a discount to their net asset value. A fund may purchase shares of closed-end investment companies to facilitate investment in certain foreign countries. 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. DELAYED-DELIVERY TRANSACTIONS. Securities may be bought and sold on a delayed-delivery or when-issued basis. These transactions involve a commitment to purchase or sell specific securities at a predetermined price or yield, with payment and delivery taking place after the customary settlement period for that type of security. Typically, no interest accrues to the purchaser until the security is delivered. When purchasing securities on a delayed-delivery basis, 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 other investments. If a fund remains substantially fully invested at a time when delayed-delivery purchases are outstanding, the delayed-delivery purchases may result in a form of leverage. When delayed-delivery purchases are outstanding, a fund will set aside appropriate liquid assets in a segregated custodial account to cover the purchase obligations. When a fund has sold a security on a delayed-delivery basis, the fund does not participate in further gains or losses with respect to the security. If the other party to a delayed-delivery transaction fails to deliver or pay for the securities, a fund could miss a favorable price or yield opportunity or suffer a loss. A fund may renegotiate a delayed delivery transaction and may sell the underlying securities before delivery, which may result in capital gains or losses for the fund. 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. 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 sub custodian. 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 government 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, any 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. A fund may use currency forward contracts for any purpose consistent with its investment objective. 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. Under certain conditions, SEC guidelines require mutual funds to set aside appropriate liquid assets in a segregated custodial account to cover currency forward contracts. As required by SEC guidelines, a fund will segregate assets to cover currency forward contracts, if any, whose purpose is essentially speculative. A fund will not segregate assets to cover forward contracts entered into for hedging purposes, including settlement hedges, position hedges, and proxy hedges. 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: Asset Coverage for Futures and Options Positions, 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. ASSET COVERAGE FOR FUTURES AND OPTIONS POSITIONS. The funds will comply with guidelines established by the SEC with respect to coverage of options and futures strategies by mutual funds and, if the guidelines so require, will set aside appropriate liquid assets in a segregated custodial account in the amount prescribed. Securities held in a segregated account cannot be sold while the futures or option strategy is outstanding, unless they are replaced with other suitable assets. As a result, there is a possibility that segregation of a large percentage of a fund's assets could impede portfolio management or the fund's ability to meet redemption requests or other current obligations. 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 (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; 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 over-the-counter (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, and must continue to set aside assets to cover its position. 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 INVESTMENTS are investments that cannot be sold or disposed of in the ordinary course of business at approximately the prices at which they are valued. Under the supervision of the Board of Trustees, FMR determines the liquidity of a fund's investments and, through reports from FMR, the Board monitors investments in illiquid instruments. In determining the liquidity of a fund's investments, FMR may consider various factors, including (1) the frequency of trades and quotations, (2) the number of dealers and prospective purchasers in the marketplace, (3) dealer undertakings to make a market, (4) the nature of the security (including any demand or tender features), and (5) the nature of the marketplace for trades (including the ability to assign or offset the fund's rights and obligations relating to the investment). Investments currently considered by FMR to be illiquid include repurchase agreements not entitling the holder to repayment of principal and payment of interest within seven days, over-the-counter options, and non-government stripped fixed-rate mortgage-backed securities. Also, FMR may determine some restricted securities, time deposits, government-stripped fixed-rate mortgage-backed securities, loans and other direct debt instruments, emerging market securities, and swap agreements to be illiquid. However, with respect to over-the-counter options a fund writes, all or a portion of the value of the underlying instrument may be illiquid depending on the assets held to cover the option and the nature and terms of any agreement the fund may have to close out the option before expiration. In the absence of market quotations, illiquid investments are priced at fair value as determined in good faith by a committee appointed by the Board of Trustees. For the money market fund, illiquid investments are valued by this method for purposes of monitoring amortized cost valuation. 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. American Gold Portfolio, Natural Resources Portfolio, and Precious Metals and Minerals Portfolio may consider purchasing securities indexed to the price of precious metals as an alternative to direct investment in precious metals. The funds will only buy precious metals-indexed securities 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. 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. In addition, loan participations involve a risk of insolvency of the lending bank or other financial intermediary. Direct debt instruments may also include standby financing commitments that obligate the purchaser to supply additional cash to the borrower on demand. 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. While the market for high-yield corporate debt securities has been in existence for many years and has weathered previous economic downturns, the 1980s brought a dramatic increase in the use of such securities to fund highly leveraged corporate acquisitions and restructurings. Past experience may not provide an accurate indication of the future performance of the high-yield bond market, especially during periods of economic recession. 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. If market quotations are not available, lower-quality debt securities will be valued in accordance with procedures established by the Board of Trustees, including the use of outside pricing services. Judgment plays a greater role in valuing high-yield debt securities than is the case for securities for which more external sources for quotations and last-sale information are available. Adverse publicity and changing investor perceptions may affect the liquidity of lower-quality debt securities and the ability of outside pricing services to value lower-quality debt securities. Since 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 SECURITIES are high-quality, short-term obligations. Some money market securities employ a trust or other similar structure to modify the maturity, price characteristics, or quality of financial assets. 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 the structure does not perform 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 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. PUT FEATURES entitle the holder to sell a security back to the issuer or a third party at any time or at specified intervals. They 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. QUALITY AND MATURITY (MONEY MARKET FUND ONLY). Pursuant to procedures adopted by the Board of Trustees, the funds may purchase only high-quality securities that FMR believes present minimal credit risks. To be considered high-quality, a security must be rated in accordance with applicable rules in one of the two highest categories for short-term securities by at least two nationally recognized rating services (or by one, if only one rating service has rated the security); or, if unrated, judged to be of equivalent quality by FMR. High-quality securities are divided into "first tier" and "second tier" securities. First tier securities are those deemed to be in the highest rating category (e.g., Standard & Poor's A-1), and second tier securities are those deemed to be in the second highest rating category (e.g., Standard & Poor's A-2). Split-rated securities may be determined to be either first tier or second tier based on applicable regulations. The fund may not invest more than 5% of its total assets in second tier securities. In addition, the taxable fund may not invest more than 1% of its total assets or $1 million (whichever is greater) in the second tier securities of a single issuer. The fund currently intends to limit its investments to securities with remaining maturities of 397 days or less, and to maintain a dollar-weighted average maturity of 90 days or less. When determining the maturity of a security, the fund may look to an interest rate reset or demand feature. 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. In a repurchase agreement, a fund purchases a security and simultaneously commits 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. While it does not presently appear possible to eliminate all risks from these transactions (particularly the possibility that the value of the underlying security will be less than the resale price, as well as delays and costs to a fund in connection with bankruptcy proceedings), the funds will engage in repurchase agreement transactions with parties whose creditworthiness has been reviewed and found satisfactory by FMR. RESTRICTED SECURITIES generally can be sold in privately negotiated transactions, pursuant to an exemption from registration under the Securities Act of 1933, or in a registered public offering. Where registration is required, a fund may be obligated to pay all or part of the registration expense and a considerable period may elapse between the time it decides to seek registration and the time it may be permitted to sell a security under an effective registration statement. If, during such a period, adverse market conditions were to develop, a fund might obtain a less favorable price than prevailed when it decided to seek registration of the security. However, in general, the money market fund anticipates holding restricted securities to maturity or selling them in an exempt transaction. 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. While a reverse repurchase agreement is outstanding, a fund will maintain appropriate liquid assets in a segregated custodial account to cover its obligation under the agreement. The funds will enter into reverse repurchase agreements 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 may be viewed as a form of leverage. SECURITIES LENDING. A fund may lend securities to parties such as broker-dealers or institutional investors, including Fidelity Brokerage Services, Inc. (FBSI). FBSI is a member of the New York Stock Exchange and a subsidiary of FMR Corp. Securities lending allows a fund to retain ownership of the securities loaned and, at the same time, to earn additional income. Since there may be delays in the recovery of loaned securities, or even a loss of rights in collateral supplied should the borrower fail financially, loans will be made only to parties deemed by FMR to be of good standing. Furthermore, they will only be made if, in FMR's judgment, the consideration to be earned from such loans would justify the risk. FMR understands that it is the current view of the SEC Staff that a fund may engage in loan transactions only under the following conditions: (1) the fund must receive 100% collateral in the form of cash or cash equivalents (e.g., U.S. Treasury bills or notes) from the borrower; (2) the borrower must increase the collateral whenever the market value of the securities loaned (determined on a daily basis) rises above the value of the collateral; (3) after giving notice, the fund must be able to terminate the loan at any time; (4) the fund must receive reasonable interest on the loan or a flat fee from the borrower, as well as amounts equivalent to any dividends, interest, or other distributions on the securities loaned and to any increase in market value; (5) the fund may pay only reasonable custodian fees in connection with the loan; and (6) the Board of Trustees must be able to vote proxies on the securities loaned, either by terminating the loan or by entering into an alternative arrangement with the borrower. Cash received through loan transactions may be invested in other eligible securities. Investing this cash subjects that investment, as well as the security loaned, to market forces (i.e., capital appreciation or depreciation). SHORT SALES "AGAINST THE BOX." A fund may sell securities short when it owns or has the right to obtain securities equivalent in kind or amount to the securities sold short. Such short sales are known as short sales "against the box." 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 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 CREDIT OR LIQUIDITY SUPPORT. FMR may rely on its evaluation of the credit of a bank or other entity in determining whether to purchase a security supported by a letter of credit guarantee, put or demand feature, insurance or other source of credit or liquidity. 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. STRIPPED GOVERNMENT SECURITIES. Stripped government securities are created by separating the income and principal components of a U.S. Government security and selling them separately. STRIPS (Separate Trading of Registered Interest and Principal of Securities) are created when the coupon payments and the principal payment are stripped from an outstanding U.S. Treasury security by a Federal Reserve Bank. 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 and yield. 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. A fund will maintain appropriate liquid assets in a segregated custodial account to cover its current obligations under swap agreements. If a fund enters into a swap agreement on a net basis, it will segregate assets with a daily value at least equal to the excess, if any, of the fund's accrued obligations under the swap agreement over the accrued amount the fund is entitled to receive under the agreement. If a fund enters into a swap agreement on other than a net basis, it will segregate assets with a value equal to the full amount of the fund's accrued obligations under the agreement. 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. 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 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 entitles "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 th e 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. Each fund may execute portfolio transactions with broker-dealers who provide research and execution services to the fund or other accounts over which FMR or its affiliates exercise investment discretion. Such services may include advice concerning the value of securities; the advisability of investing in, purchasing, or selling securities; 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 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 th at 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 princip al 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 price s 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 th at 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. FMR is authorized to use research services provided by and to place portfolio transactions with brokerage firms that have provided assistance in the distribution of shares of the funds or shares of other Fidelity funds to the extent permitted by law. FMR may use research services provided by and place agency transactions with 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 th at 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 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 28, 1998 and 1997 the portfolio turnover rates for the stock funds (except Business Services and Outsourcing, Cyclical Industries and National Resources for 1997 and Medical Equipment and Systems for 1997 and 1998) are presented in the table below. The stock funds' annual portfolio turnover rates may be substantially greater than those of other equity investment companies. The significantly higher or lower portfolio turnover rates from year to year are primarily the result of fluctuations in asset levels and FMR's assessment of changing economic conditions throughout each year for various industries. High turnover may also be the result of short-term shareholder trading activity which increases brokerage and operating costs. This shareholder activity may also result in required purchases or sales of portfolio securities at disadvantageous times. Business Services and Outsourcing's and Medical Equipment and System's annualized turnover rates for its first full fiscal period are not expected to exceed 200%. TURNOVER RATES FISCAL 1998 FISCAL 1997 AIR TRANSPORTATION 294 % 469 % AMERICAN GOLD 89 % 63 % AUTOMOTIVE 153 % 175 % BIOTECHNOLOGY 162 % 41 % BROKERAGE AND INVESTMENT MANAGEMENT 100 % 16 % BUSINESS SERVICES AND OUTSOURCING 36%A N/A CHEMICALS 31 % 207 % COMPUTERS 333 % 255 % CONSTRUCTION AND HOUSING 404 % 270 % CONSUMER INDUSTRIES 199 % 340 % CYCLICAL INDUSTRIES 140 % A N/A DEFENSE AND AEROSPACE 311 % 219 % DEVELOPING COMMUNICATIONS 383 % 202 % ELECTRONICS 435 % 341 % ENERGY 115 % 87 % ENERGY SERVICE 78 % 167 % ENVIRONMENTAL SERVICES 59 % 252 % FINANCIAL SERVICES 84 % 80 % FOOD AND AGRICULTURE 74 % 91 % HEALTH CARE 79 % 59 % HOME FINANCE 54 % 78 % INDUSTRIAL EQUIPMENT 115 % 261 % INDUSTRIAL MATERIALS 118% 105% INSURANCE 157% 142% LEISURE 209% 127% MEDICAL DELIVERY 109% 78% MULTIMEDIA 219 % 99 % NATURAL GAS 118 % 283 % NATURAL RESOURCES 165 % A N/A PAPER AND FOREST PRODUCTS 235 % 180 % PRECIOUS METALS AND MINERALS 84 % 54 % REGIONAL BANKS 25 % 43 % RETAILING 308 % 278 % SOFTWARE AND COMPUTER SERVICES 145 % 279 % TURNOVER RATES FISCAL 1998 FISCAL 1997 TECHNOLOGY 556 % 549 % TELECOMMUNICATIONS 157 % 175 % TRANSPORTATION 210 % 148 % UTILITIES GROWTH 78 % 31 % 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. Of the following tables, the first shows the total amount of brokerage commissions paid by each fund and the total amount of brokerage commissions paid by each fund to NFSC and FBS for the past three fiscal years. The second table shows the approximate percentage of aggregate brokerage commissions paid by a fund to NFSC and FBS 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 1998. NFSC and FBS are paid on a commission basis. The second table also shows the dollar amount of brokerage commissions paid to firms that provided research services and the approximate dollar amount of the transactions involved for the fiscal year ended 1998.
FISCAL PERIOD ENDED FEBRUARY 28 /29 TOTAL TO NFSC TO FBS AIR TRANSPORTATION 1998 $ 377,945 $ 70,756 $ 0 1997 $ 588,326 $ 110,395 $ 609 1996 $ 686,690 $ 108,868 $ 12,126 AMERICAN GOLD 1998 $ 1,178,299 $ 91,784 $ 0 1997 $ 898,281 $ 82,611 $ 0 1996 $ 890,082 $ 341,569 $ 0 AUTOMOTIVE 1998 $ 220,182 $ 36,417 $ 0 1997 $ 422,985 $ 66,744 $ 23,371 1996 $ 101,868 $ 13,306 $ 9,408 BIOTECHNOLOGY 1998 $ 843,401 $ 114,067 $ 15,773 1997 $ 466,616 $ 62,674 $ 1,784 1996 $ 514,556 $ 141,230 $ 22,319 BROKERAGE AND INVESTMENT MANAGEMENT 1998 $ 735,065 $ 86,544 $ 11,262 1997 $ 318,063 $ 61,662 $ 0 1996 $ 152,008 $ 18,355 $ 0 BUSINESS SERVICES AND OUTSOURCING 1998 * $ 3,710 $ 45 $ 0 CHEMICALS 1998 $ 101,154 $ 12,782 $ 17,404 1997 $ 442,545 $ 71,711 $ 31,240 1996 $ 148,858 $ 69,929 $ 452 COMPUTERS 1998 $ 1,763,117 $ 240,381 $ 0 1997 $ 1,247,598 $ 198,215 $ 0 1996 $ 666,974 $ 88,690 $ 0 CONSTRUCTION AND HOUSING 1998 $ 218,917 $ 46,802 $ 0 1997 $ 348,359 $ 63,646 $ 0 1996 $ 145,931 $ 27,836 $ 0 CONSUMER INDUSTRIES 1998 $ 76,547 $ 15,031 $ 0 1997 $ 121,479 $ 29,979 $ 0 1996 $ 227,375 $ 91,856 $ 0 CYCLICAL INDUSTRIES 1998** $ 5,529 $ 470 $ 0
* Business Services and Outsourcing commenced operations on February 4, 1998.
FISCAL PERIOD ENDED FEBRUARY 28 /29 TOTAL TO NFSC TO FBS DEFENSE AND AEROSPACE 1998 $ 321,753 $ 60,895 $ 0 1997 $ 170,650 $ 24,182 $ 0 1996 $ 84,977 $ 36,879 $ 0 DEVELOPING COMMUNICATIONS 1998 $ 699,196 $ 100,909 $ 3,085 1997 $ 657,790 $ 92,344 $ 24,230 1996 $ 842,041 $ 190,186 $ 10,041 ELECTRONICS 1998 $ 8,057,183 $ 1,038,942 $ 0 1997 $ 2,768,382 $ 595,711 $ 0 1996 $ 2,508,628 $ 395,989 $ 0
ENERGY 1998 $ 481,212 $ 56,921 $ 0 1997 $ 275,437 $ 53,327 $ 0 1996 $ 212,221 $ 60,047 $ 0
ENERGY SERVICE 1998 $ 1,428,931 $ 208,445 $ 0 1997 $ 971,677 $ 263,380 $ 1,026 1996 $ 708,875 $ 376,373 $ 0 ENVIRONMENTAL SERVICES 1998 $ 53,033 $ 4,927 $ 0 1997 $ 240,792 $ 42,243 $ 0 1996 $ 128,959 $ 36,310 $ 0 FINANCIAL SERVICES 1998 $ 467,674 $ 58,925 $ 0 1997 $ 330,933 $ 77,580 $ 0 1996 $ 286,790 $ 115,231 $ 0 FOOD AND AGRICULTURE 1998 $ 271,283 $ 44,060 $ 0 1997 $ 439,321 $ 97,562 $ 0 1996 $ 367,085 $ 213,864 $ 0 HEALTH CARE 1998 $ 1,780,678 $ 202,696 $ 39,030 1997 $ 1,330,539 $ 208,545 $ 19,436 1996 $ 946,588 $ 226,621 $ 63,489 HOME FINANCE 1998 $ 999,285 $ 222,404 $ 11,072 1997 $ 824,781 $ 201,617 $ 0 1996 $ 584,457 $ 139,402 $ 0 INDUSTRIAL EQUIPMENT 1998 $ 186,022 $ 28,906 $ 0 1997 $ 372,936 $ 78,288 $ 1,152 1996 $ 178,940 $ 65,425 $ 0 INDUSTRIAL MATERIALS 1998 $ 138,995 $ 19,267 $ 0 1997 $ 281,500 $ 37,253 $ 0 1996 $ 628,984 $ 112,184 $ 4,705 INSURANCE 1998 $ 249,991 $ 41,261 $ 4,571 1997 $ 51,916 $ 12,029 $ 0 1996 $ 52,255 $ 28,422 $ 0
** Cyclical Industries commenced operations on March 3, 1997.
FISCAL PERIOD ENDED FEBRUARY 28 /29 TOTAL TO NFSC TO FBS LEISURE 1998 $ 444,121 $ 113,958 $ 0 1997 $ 234,434 $ 56,198 $ 0 1996 $ 241,001 $ 61,874 $ 0
MEDICAL DELIVERY 1998 $ 294,080 $ 54,751 $ 0 1997 $ 409,668 $ 62,985 $ 0 1996 $ 430,449 $ 101,216 $ 0 MULTIMEDIA 1998 $ 213,979 $ 40,201 $ 0 1997 $ 181,181 $ 19,584 $ 0 1996 $ 429,967 $ 76,336 $ 0 NATURAL GAS 1998 $ 246,019 $ 38,095 $ 0 1997 $ 591,400 $ 75,903 $ 904 1996 $ 175,038 $ 87,403 $ 0
NATURAL RESOURCES 1998*** $ 23,485 $ 1,465 $ 0 PAPER AND FOREST PRODUCTS 1998 $ 118,872 $ 11,543 $ 0 1997 $ 104,451 $ 22,646 $ 1,146 1996 $ 175,147 $ 40,660 $ 1,839 PRECIOUS METALS AND MINERALS 1998 $ 736,052 $ 34,762 $ 0 1997 $ 655,032 $ 43,075 $ 0 1996 $ 668,532 $ 179,259 $ 0
REGIONAL BANKS 1998 $ 372,550 $ 70,122 $ 0 1997 $ 385,163 $ 86,165 $ 0 1996 $ 346,066 $ 101,949 $ 0 RETAILING 1998 $ 721,512 $ 132,299 $ 0 1997 $ 1,026,572 $ 250,241 $ 0 1996 $ 144,844 $ 55,131 $ 0 SOFTWARE AND COMPUTER SERVICES 1998 $ 444,769 $ 71,604 $ 0 1997 $ 559,248 $ 86,634 $ 0 1996 $ 317,440 $ 42,554 $ 0 TECHNOLOGY 1998 $ 2,228,245 $ 349,497 $ 0 1997 $ 1,737,289 $ 339,229 $ 574 1996 $ 407,855 $ 55,981 $ 586 TELECOMMUNICATIONS 1998 $ 1,091,330 $ 81,847 $ 0 1997 $ 1,288,951 $ 103,768 $ 58,688 1996 $ 476,696 $ 113,105 $ 1,744 TRANSPORTATION 1998 $ 144,625 $ 18,070 $ 0 1997 $ 23,737 $ 4,001 $ 44 1996 $ 34,585 $ 7,224 $ 127 UTILITIES GROWTH 1998 $ 317,455 $ 29,653 $ 1,975 1997 $ 167,248 $ 23,690 $ 2,643 1996 $ 334,639 $ 100,887 $ 6,273
*** Natural Resources commenced operations on March 3, 1997.
FISCAL PERIOD ENDED FEBRUARY 28, 1998 % OF % OF % OF % OF $ AMOUNT OF $ AMOUNT OF AGGREGATE AGGREGATE AGGREGATE AGGREGATE COMMISSIONS BROKERAGE COMMISSIONS COMMISSIONS DOLLAR DOLLAR PAID TO FIRMS TRANSACTIONS PAID PAID AMOUNT OF AMOUNT OF THAT PROVIDED INVOLVED* TO NFSC TO FBS TRANSACTIONS TRANSACTIONS RESEARCH EFFECTED EFFECTED SERVICES * THROUGH THROUGH NFSC FBS AIR TRANSPORTATION 19%(DAGGER) 0 % 25 % 0 % $ 346,898 $ 304,720,538 AMERICAN GOLD 8%(DAGGER) 0 % 14 % 0 % $ 1,169,591 $ 467,823,833 AUTOMOTIVE 17%(DAGGER) 0 % 25 % 0 % $ 203,500 $ 160,924,125 BIOTECHNOLOGY 14%(DAGGER) 2 % A 21 % 1 % $ 816,866 $ 693,427,995 BROKERAGE AND INVESTMENT 12%(DAGGER) 2 % A 21 % 1 % $ 720,411 $ 762,188,589 MANAGEMENT BUSINESS SERVICES AND 1 % 0 % 1 % 0 % $ 1,063 $ 958,597 OUTSOURCING CHEMICALS 13%(DAGGER) 17 % A 20 % 10 % $ 94,756 $ 73,896,226 COMPUTERS 14%(DAGGER) 0 % 21 % 0 % $ 1,738,078 $ 1,685,227,073 CONSTRUCTION AND HOUSING 21%(DAGGER) 0 % 25 % 0 % $ 200,175 $ 138,935,564 CONSUMER INDUSTRIES 20 % 0 % 19 % 0 % $ 58,289 $ 56,729,040 CYCLICAL INDUSTRIES 8 % 0 % 8 % 0 % $ 3,622 $ 3,452,406 DEFENSE AND AEROSPACE 19%(DAGGER) 0 % 23 % 0 % $ 308,647 $ 243,750,676 DEVELOPING COMMUNICATIONS 14%(DAGGER) 0 % 22 % 0 % $ 688,572 $ 637,309,629 ELECTRONICS 13%(DAGGER) 0 % 18 % 0 % $ 7,864,976 $ 7,482,280,530 ENERGY 12%(DAGGER) 0 % 19 % 0 % $ 448,819 $ 342,239,397 ENERGY SERVICE 15%(DAGGER) 0 % 22 % 0 % $ 1,356,634 $ 1,293,209,395 ENVIRONMENTAL SERVICES 9%(DAGGER) 0 % 12 % 0 % $ 45,591 $ 22,718,281 FINANCIAL SERVICES 13%(DAGGER) 0 % 17 % 0 % $ 457,059 $ 612,443,218 FOOD AND AGRICULTURE 16%(DAGGER) 0 % 20 % 0 % $ 241,455 $ 230,599,700 HEALTH CARE 11%(DAGGER) 2 % A 21 % 1 % $ 1,747,538 $ 1,902,925,918 HOME FINANCE 22%(DAGGER) 1 % 32 % 1 % $ 972,071 $ 845,696,497 INDUSTRIAL E QUIPMENT 16%(DAGGER) 0 % 21 % 0 % $ 170,625 $ 114,891,400 INDUSTRIAL MATERIALS 14%(DAGGER) 0 % 25 % 0 % $ 130,732 $ 78,654,571 INSURANCE 17%(DAGGER) 2 % A 26 % 0 % $ 232,329 $ 270,735,045 LEISURE 26%(DAGGER) 0 % 35 % 0 % $ 426,683 $ 369,654,208 MEDICAL DELIVERY 19%(DAGGER) 0 % 25 % 0 % $ 281,713 $ 221,061,361 MULTIMEDIA 19%(DAGGER) 0 % 22 % 0 % $ 196,384 $ 162,436,969 NATURAL GAS 15%(DAGGER) 0 % 23 % 0 % $ 231,994 $ 155,846,249 NATURAL RESOURCES 6%(DAGGER) 0 % 9 % 0 % $ 19,284 $ 11,869,955 PAPER AND FOREST PRODUCTS 10%(DAGGER) 0 % 16 % 0 % $ 99,857 $ 65,004,866 PRECIOUS METALS AND MINERALS 5%(DAGGER) 0 % 9 % 0 % $ 723,594 $ 279,584,462 REGIONAL BANKS 19%(DAGGER) 0 % 26 % 0 % $ 361,346 $ 545,005,513 RETAILING 18%(DAGGER) 0 % 26 % 0 % $ 682,531 $ 634,373,031 SOFTWARE AND COMPUTER SERVICES 16%(DAGGER) 0 % 19 % 0 % $ 423,811 $ 466,683,442 TECHNOLOGY 16%(DAGGER) 0 % 22 % 0 % $ 2,157,586 $ 2,241,458,825 TELECOMMUNICATIONS 8%(DAGGER) 0 % 13 % 0 % $ 1,013,427 $ 764,786,405 TRANSPORTATION 13%(DAGGER) 0 % 17 % 0 % $ 126,130 $ 120,411,403 UTILITIES GROWTH 9%(DAGGER) 1 % A 13 % 0 % $ 309,392 $ 292,243,978
* The provisions of research services was not necessarily a factor in the placement of all this business with such firms. (dagger) The difference between the percentage of aggregate brokerage commissions paid to, and the percentage of the aggregate dollar mount of transactions effected through NFSC is a result of the low commission rates charged by NFSC. A Broker-dealer affiliates of FMR have used a portion of the commissions paid by a fund to reduce that fund's custodian or transfer agent fees. 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 such underwritings where and 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 managed by FMR or accounts managed by FMR affiliates. It sometimes happens that the same security is held in the portfolio of more than one of these funds or accounts. Simultaneous transactions are inevitable when several funds and 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 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 FSC normally determines each stock fund's net asset value per share (NAV) hourly during business hours observed by the New York Stock Exchange (NYSE). Currently, the NYSE is open from 9:30 a.m. to 4:00 p.m. Eastern time, Monday through Friday. The Board of Trustees has approved the following "valuation times" for the determination of each stock fund's NAV: 10:00 a.m., 11:00 a.m., 12:00 noon, 1:00 p.m., 2:00 p.m., 3:00 p.m., and 4:00 p.m. FSC normally determines the money market fund's NAV as of the close of the NYSE (normally 4:00 p.m. Eastern time). The valuation of portfolio securities is determined as of these times for the purpose of computing each fund's NAV. 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 last 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. Foreign securities are valued based on prices furnished by independent brokers or quotation services which express the value of securities in their local currency. FSC gathers all exchange rates daily at the close of the NYSE using the last quoted price on the local currency and then translates the value of foreign securities from their local 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 extraordinary event that is expected to materially affect the value of a portfolio security occurs after the close of an exchange on which that security is traded, then that security will be valued as determined 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. In addition, 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. 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 market value of such securities. 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. During periods of declining interest rates, the fund's yield based on amortized cost valuation may be higher than would result if the fund used market valuations to determine its NAV. The converse would apply during periods of rising interest rates. Valuing the fund's investments on the basis of amortized cost and use of the term "money market fund" are permitted pursuant to Rule 2a-7 under the 1940 Act. The fund must adhere to certain conditions under Rule 2a-7, as summarized in the section entitled "Quality and Maturity" on page 15 . The Board of Trustees oversees FMR's adherence to the provisions of Rule 2a-7 and has established procedures designed to stabilize the fund's NAV at $1.00. At such intervals as they deem appropriate, the Trustees consider the extent to which NAV calculated by using market valuations would deviate from $1.00 per share. If the Trustees believe that a deviation from the fund's amortized cost per share may result in material dilution or other unfair results to shareholders, the Trustees have agreed to take such corrective action, if any, as they deem appropriate to eliminate or reduce, to the extent reasonably practicable, the dilution or unfair results. Such corrective action could include selling portfolio instruments prior to maturity to realize capital gains or losses or to shorten average portfolio maturity; withholding dividends; redeeming shares in kind; establishing NAV by using available market quotations; and such other measures as the Trustees may deem appropriate. 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 total 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 a 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. A money market fund may calculate an effective yield by compounding the base period return over a one-year period. In addition to the current yield, the fund may quote yields in advertising based on any historical seven-day period. Yields for the fund are calculated on the same basis as other money market funds, as required by applicable regulations. Yield information may be useful in reviewing a 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. TOTAL RETURN CALCULATIONS. Total returns quoted in advertising reflect all aspects of a fund's return, including the effect of reinvesting dividends and capital gain distributions, and any change in a fund's NAV over a stated period. Average annual total 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 total return of 100% over ten years would produce an average annual total return of 7.18%, which is the steady annual rate of return that would equal 100% growth on a compounded basis in ten years. Average annual total returns covering periods of less than one year are calculated by determining a fund's total return for the period, extending that return for a full year (assuming that return remains constant over the year), and quoting the result as an annual return. While average annual total 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 total returns represent averaged figures as opposed to the actual year-to-year performance of a fund. In addition to average annual total returns, a fund may quote unaveraged or cumulative total returns reflecting the simple change in value of an investment over a stated period. Average annual and cumulative total returns may be quoted as a percentage or as a dollar amount, and may be calculated for a single investment, a series of investments, or a series of redemptions, over any time period. Total returns may be broken down into their components of income and capital (including capital gains and changes in share price) in order to illustrate the relationship of these factors and their contributions to total return. Total returns may be quoted on a before-tax or after-tax basis and may be quoted with or without taking each fund's 3.00% maximum sales charge into account, and may or may not include the effect of a stock fund's trading fee. Excluding a fund's sales charge or trading fee from a total return calculation produces a higher total return figure. Total returns, yields, and other performance information may be quoted numerically or in a table, graph, or similar illustration. NET ASSET VALUE. Charts and graphs using a fund's net asset values, adjusted net asset values, and benchmark indices may be used to exhibit performance. An adjusted NAV includes any distributions paid by 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. As of February 27, 1998, the 13-week and 39-week short-term moving averages are shown below: FUND NAME 13-WEEK SHORT-TERM 39-WEEK SHORT-TERM MOVING AVERAGE MOVING AVERAGE AIR TRANSPORTATION $ 24.59 $ 22.47 AMERICAN GOLD $ 14.51 $ 18.12 AUTOMOTIVE $ 25.62 $ 25.46 BIOTECHNOLOGY $ 32.82 $ 31.73 BROKERAGE AND INVESTMENT MANAGEMENT $ 36.35 $ 33.44 CHEMICALS $ 43.53 $ 43.76 COMPUTERS $ 36.77 $ 40.18 CONSTRUCTION AND HOUSING $ 23.42 $ 22.46 CONSUMER INDUSTRIES $ 25.62 $ 23.76 CYCLICAL INDUSTRIES $ 11.22 $ 11.25 DEFENSE AND AEROSPACE $ 33.83 $ 33.46 DEVELOPING COMMUNICATIONS $ 18.48 $ 19.11 ELECTRONICS $ 31.79 $ 34.79 ENERGY $ 20.39 $ 21.13 ENERGY SERVICE $ 27.78 $ 29.05 ENVIRONMENTAL SERVICES $ 15.86 $ 15.94 FINANCIAL SERVICES $ 96.21 $ 89.39 FOOD AND AGRICULTURE $ 47.39 $ 44.95 HEALTH CARE $ 105.33 $ 99.88 HOME FINANCE $ 50.65 $ 48.32 INDUSTRIAL EQUIPMENT $ 23.87 $ 24.49 INDUSTRIAL MATERIALS $ 23.62 $ 24.38 INSURANCE $ 39.18 $ 36.98 LEISURE $ 57.77 $ 52.83 MEDICAL DELIVERY $ 25.91 $ 25.72 MULTIMEDIA $ 31.49 $ 29.39 NATURAL GAS $ 12.78 $ 13.40 NATURAL RESOURCES $ 10.08 $ 10.71 PAPER AND FOREST PRODUCTS $ 21.55 $ 22.40 PRECIOUS METALS AND MINERALS $ 9.75 $ 12.22 REGIONAL BANKS $ 40.75 $ 38.01 RETAILING $ 46.11 $ 42.74 SOFTWARE AND COMPUTER SERVICES $ 39.61 $ 39.48 TECHNOLOGY $ 47.27 $ 50.26 TELECOMMUNICATIONS $ 47.84 $ 44.67 TRANSPORTATION $ 27.09 $ 26.24 UTILITIES GROWTH $ 50.03 $ 45.88 CALCULATING HISTORICAL FUND RESULTS . The following table shows performance for each fund calculated including certain fund expenses. The money market fund's total return figures include the effect of the fund's 3.00% sales charge. For each stock fund, total returns include the effect of the fund's 3.00% sales charge and trading fee, but do not include the effect of the fund's exchange fee. HISTORICAL FUND RESULTS. The following table shows the money market fund's 7-day yield and each fund's total returns for periods ended February 28, 1998. AVERAGE ANNUAL TOTAL RETURNS CUMULATIVE TOTAL RETURNS
SEVEN-DAY ONE FIVE TEN ONE FIVE TEN YIELD YEAR YEARS YEARS/LIFE YEAR YEARS YEARS/LIFE OF FUND OF FUND AIR TRANSPORTATION 56.20% 18.15% 15.24% 56.20% 130.23% 313.03% AMERICAN GOLD -44.93% 2.30% 1.04% -44.93% 12.03% 10.93% AUTOMOTIVE 19.02% 12.51% 14.59% 19.02% 80.30% 290.28% BIOTECHNOLOGY 12.56% 14.10% 18.48% 12.56% 93.40% 445.20% BROKERAGE AND INVESTMENT 52.76% 27.72% 21.49% 52.76% 239.84% 600.53% MANAGEMENT CHEMICALS 15.81% 18.21% 15.69% 15.81% 130.87% 329.62% COMPUTERS 16.64% 29.48% 20.86% 16.64% 263.94% 565.04% CONSTRUCTION AND HOUSING 35.76% 16.94% 16.68% 35.76% 118.66% 367.67% CONSUMER INDUSTRIES 36.07% 20.22% 18.11%* 36.07% 151.10% 258.58%* CYCLICAL INDUSTRIES N/A N/A N/A N/A N/A 21.93%* DEFENSE AND AEROSPACE 38.33% 26.58% 15.01% 38.33% 224.94% 304.97% DEVELOPING 24.25% 17.83% 19.83%* 24.25% 127.10% 300.91%* COMMUNICATIONS ELECTRONICS 20.35% 35.63% 24.01% 20.35% 359.00% 760.18% ENERGY 16.71% 13.27% 11.48% 16.71% 86.42% 196.43% ENERGY SERVICE 43.90% 24.83% 14.62% 43.90% 203.16% 291.51% ENVIRONMENTAL SERVICES 10.04% 8.20% 7.11%* 10.04% 48.32% 81.47%* FINANCIAL SERVICES 36.78% 24.52% 21.25% 36.78% 199.34% 586.63% FOOD AND AGRICULTURE 19.81% 18.22% 19.18% 19.81% 130.95% 478.25% HEALTH CARE 32.31% 28.64% 22.91% 32.31% 252.25% 686.82% HOME FINANCE 28.35% 29.54% 26.43% 28.35% 264.81% 943.60% INDUSTRIAL EQUIPMENT 21.91% 22.08% 15.20% 21.91% 171.11% 311.66% INDUSTRIAL MATERIALS 3.32% 12.12% 9.69% 3.32% 77.21% 152.20% INSURANCE 38.45% 20.06% 19.65% 38.45% 149.44% 501.46% LEISURE 42.80% 22.19% 17.44% 42.80% 172.36% 399.26% MEDICAL DELIVERY 18.24% 24.09% 21.99% 18.24% 194.18% 629.88% MULTIMEDIA 38.08% 20.75% 17.55% 38.08% 156.66% 403.86% NATURAL GAS 5.40% N/A 6.78%* 5.40% N/A 37.56%* NATURAL RESOURCES N/A N/A N/A N/A N/A 4.01%* PAPER AND FOREST PRODUCTS 11.99% 13.71% 10.52% 11.99% 90.15% 171.87% PRECIOUS METALS AND -49.20% 0.84% -0.99% -49.20% 4.30% -9.49% MINERALS REGIONAL BANKS 32.47% 25.16% 25.04% 32.47% 207.18% 834.50% RETAILING 47.96% 18.01% 20.67% 47.96% 128.92% 554.82% SOFTWARE AND COMPUTER 31.36% 23.78% 21.55% 31.36% 190.56% 603.94% SERVICES TECHNOLOGY 21.10% 23.88% 20.11% 21.10% 191.76% 525.10% TELECOMMUNICATIONS 42.06% 20.47% 19.67% 42.06% 153.73% 502.17% TRANSPORTATION 36.84% 16.91% 18.41% 36.84% 118.44% 441.64% UTILITIES GROWTH 32.04% 15.06% 15.87% 32.04% 101.70% 336.09% MONEY MARKET 5.26% 2.10% 3.91% 5.20% 2.10% 21.13% 65.97%
* F rom commencement of operations (June 29, 1990 for Consumer Industries and Developing Communications; June 29, 1989 for Environmental Services; April 21, 1993 for Natural Gas; and March 3, 1997 for Cyclical Industries and Natural Resources) . NOTE: If FMR had not reimbursed certain fund expenses during certain of these periods, the total returns for Air Transportation, Automotive, Biotechnology, Brokerage and Investment Management, Chemicals, Computers, Construction and Housing, Consumers Industries, Cyclical Industries, Defense and Aerospace, Developing Communications, Electronics, Energy Service, Food and Agriculture, Home Finance, Industrial Equipment, Industrial Materials, Insurance, Medical Delivery, Multimedia, Natural Resources, Paper and Forest Products, Regional Banks, Retailing, Software and Computer Services, Telecommunications, and Transportation would have been lower. The following tables show the income and capital elements of each fund's cumulative total 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 CPI information is as of the month-end closest to the initial investment date for each fund. The S&P 500 and DJIA comparisons are provided to show how each fund's total return compared to the record of a broad unmanaged 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 fixed-income securities, common stocks represent a different type of investment from the fund. Common stocks generally offer greater growth potential than the money market 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 money market fund. Each stock fund 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 the 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 28, 1998 or life of fund, as applicable, assuming all distributions were reinvested. Total 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. AIR TRANSPORTATION PORTFOLIO: During the 10-year period ended February 28, 1998, a hypothetical $10,000 investment in Air Transportation Portfolio would have grown to $ 41,310 , including the effect of the fund's 3.00% sales charge. AIR TRANSPORTATION PORTFOLIO INDICES
YEAR ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF INITIAL REINVESTED REINVESTED VALUE LIVING $10,000 DIVIDEND CAPITAL GAIN INVESTMENT DISTRIBUTIONS DISTRIBUTIONS 2/28/98 $ 31,203 $ 0 $ 10,107 $ 41,310 $ 52,255 $ 55,126 $ 13,957 2/28/97 20,585 0 5,057 25,642 38,706 43,612 13,759 2/29/96 24,523 0 5,665 30,188 30,680 34,062 13,353 2/28/95 16,182 0 3,305 19,487 22,776 24,329 13,009 2/28/94 19,888 0 2,372 22,260 21,216 22,621 12,647 2/28/93 15,799 0 1,600 17,399 19,583 19,350 12,336 2/29/92 16,449 0 1,160 17,609 17,695 18,210 11,948 2/28/91 13,789 0 673 14,462 15,253 15,558 11,621 2/28/90 12,662 0 618 13,280 13,304 13,649 11,034 2/28/89 12,523 0 0 12,523 11,189 11,300 10,483
Explanatory Notes: With an initial investment of $10,000 in Air Transportation Portfolio on March 1, 1988, assuming the 3.00% 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 $ 16,296 . 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 $ 5,460 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. AMERICAN GOLD PORTFOLIO: During the 10-year period ended February 28, 1998, a hypothetical $10,000 investment in American Gold Portfolio would have grown to $ 11,100 , including the effect of the fund's 3.00% sales charge. AMERICAN GOLD PORTFOLIO INDICES
YEAR ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF INITIAL REINVESTED REINVESTED VALUE LIVING $10,000 DIVIDEND CAPITAL GAIN INVESTMENT DISTRIBUTIONS DISTRIBUTIONS 2/28/98 $ 10,298 $ 0 $ 802 $ 11,100 $ 52,255 $ 55,126 $ 13,957 2/28/97 19,149 0 375 19,524 38,706 43,612 13,759 2/29/96 18,402 0 0 18,402 30,680 34,062 13,353 2/28/95 12,517 0 0 12,517 22,776 24,329 13,009 2/28/94 15,382 0 0 15,382 21,216 22,621 12,647 2/28/93 9,605 0 0 9,605 19,583 19,350 12,336 2/29/92 9,164 0 0 9,164 17,695 18,210 11,948 2/28/91 9,238 0 0 9,238 15,253 15,558 11,621 2/28/90 12,055 0 0 12,055 13,304 13,649 11,034 2/28/89 10,616 0 0 10,616 11,189 11,300 10,483
Explanatory Notes: With an initial investment of $10,000 in American Gold Portfolio on March 1, 1988, assuming the 3.00% 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 $ 11,232 . 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 $ 1,215 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. AUTOMOTIVE PORTFOLIO: During the 10-year period ended February 28, 1998, a hypothetical $10,000 investment in Automotive Portfolio would have grown to $ 39,035 , including the effect of the fund's 3.00% sales charge. AUTOMOTIVE PORTFOLIO INDICES
YEAR ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF INITIAL REINVESTED REINVESTED VALUE LIVING $10,000 DIVIDEND CAPITAL GAIN INVESTMENT DISTRIBUTIONS DISTRIBUTIONS 2/28/98 $ 24,676 $ 1,800 $ 12,559 $ 39,035 $ 52,255 $ 55,126 $ 13,957 2/28/97 22,774 1,554 7,464 31,792 38,706 43,612 13,759 2/29/96 19,606 1,151 5,605 26,362 30,680 34,062 13,353 2/28/95 17,803 1,045 5,089 23,937 22,776 24,329 13,009 2/28/94 22,864 1,266 3,254 27,384 21,216 22,621 12,647 2/28/93 18,565 980 1,447 20,992 19,583 19,350 12,336 2/29/92 15,398 758 874 17,030 17,695 18,210 11,948 2/28/91 11,073 545 0 11,618 15,253 15,558 11,621 2/28/90 10,561 368 0 10,929 13,304 13,649 11,034 2/28/89 10,840 0 0 10,840 11,189 11,300 10,483
Explanatory Notes: With an initial investment of $10,000 in Automotive Portfolio on March 1, 1988, assuming the 3.00% 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 $ 20,661 . 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 $ 897 for dividends and $ 7,555 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. BIOTECHNOLOGY PORTFOLIO: During the 10-year period ended February 28, 1998, a hypothetical $10,000 investment in Biotechnology Portfolio would have grown to $ 54,527 , including the effect of the fund's 3.00% sales charge. BIOTECHNOLOGY PORTFOLIO INDICES
YEAR ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF INITIAL REINVESTED REINVESTED VALUE LIVING $10,000 DIVIDEND CAPITAL GAIN INVESTMENT DISTRIBUTIONS DISTRIBUTIONS 2/28/98 $ 31,679 $ 151 $ 22,697 $ 54,527 $ 52,255 $ 55,126 $ 13,957 2/28/97 31,422 150 15,390 46,962 38,706 43,612 13,759 2/29/96 33,588 121 10,658 44,367 30,680 34,062 13,353 2/28/95 23,218 18 7,367 30,603 22,776 24,329 13,009 2/28/94 25,337 21 8,040 33,398 21,216 22,621 12,647 2/28/93 20,740 16 6,581 27,337 19,583 19,350 12,336 2/29/92 30,238 24 4,416 34,678 17,695 18,210 11,948 2/28/91 23,291 0 1,220 24,511 15,253 15,558 11,621 2/28/90 13,289 0 220 13,509 13,304 13,649 11,034 2/28/89 9,838 0 0 9,838 11,189 11,300 10,483
Explanatory Notes: With an initial investment of $10,000 in Biotechnology Portfolio on March 1, 1988, assuming the 3.00% 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 $ 29,306 . 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 $ 110 for dividends and $ 14,766 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. BROKERAGE AND INVESTMENT MANAGEMENT PORTFOLIO: During the 10-year period ended February 28, 1998, a hypothetical $10,000 investment in Brokerage and Investment Management Portfolio would have grown to $ 70,060, including the effect of the fund's 3.00% sales charge. BROKERAGE AND INVESTMENT MANAGEMENT PORTFOLIO INDICES
YEAR ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF INITIAL REINVESTED REINVESTED VALUE LIVING $10,000 DIVIDEND CAPITAL GAIN INVESTMENT DISTRIBUTIONS DISTRIBUTIONS 2/28/98 $ 53,518 $ 2,966 $ 13,576 $ 70,060 $ 52,255 $ 55,126 $ 13,957 2/28/97 34,656 1,803 8,007 44,466 38,706 43,612 13,759 2/29/96 24,876 1,204 4,742 30,822 30,680 34,062 13,353 2/28/95 20,866 955 1,916 23,737 22,776 24,329 13,009 2/28/94 23,880 1,092 2,193 27,165 21,216 22,621 12,647 2/28/93 19,131 862 0 19,993 19,583 19,350 12,336 2/29/92 17,207 775 0 17,982 17,695 18,210 11,948 2/28/91 11,166 492 0 11,658 15,253 15,558 11,621 2/28/90 11,193 347 0 11,540 13,304 13,649 11,034 2/28/89 11,166 135 0 11,301 11,189 11,300 10,483
Explanatory Notes: With an initial investment of $10,000 in Brokerage and Investment Management Portfolio on March 1, 1988, assuming the 3.00% 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 $ 17,279 . 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 $ 740 for dividends and $ 5,610 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. CHEMICALS PORTFOLIO: During the 10-year period ended February 28, 1998, a hypothetical $10,000 investment in Chemicals Portfolio would have grown to $ 42,969 , including the effect of the fund's 3.00% sales charge. CHEMICALS PORTFOLIO INDICES
YEAR ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF INITIAL REINVESTED REINVESTED VALUE LIVING $10,000 DIVIDEND CAPITAL GAIN INVESTMENT DISTRIBUTIONS DISTRIBUTIONS 2/28/98 $ 22,903 $ 1,363 $ 18,703 $ 42,969 $ 52,255 $ 55,126 $ 13,957 2/28/97 21,221 1,255 13,492 35,968 38,706 43,612 13,759 2/29/96 19,724 1,075 10,460 31,259 30,680 34,062 13,353 2/28/95 16,920 865 6,736 24,521 22,776 24,329 13,009 2/28/94 15,797 652 5,864 22,313 21,216 22,621 12,647 2/28/93 14,281 440 3,327 18,048 19,583 19,350 12,336 2/29/92 15,912 290 1,628 17,830 17,695 18,210 11,948 2/28/91 12,893 144 954 13,991 15,253 15,558 11,621 2/28/90 11,262 76 538 11,876 13,304 13,649 11,034 2/28/89 11,406 0 0 11,406 11,189 11,300 10,483
Explanatory Notes: With an initial investment of $10,000 in Chemicals Portfolio on March 1, 1988, assuming the 3.00% 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 $ 24,837 . 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 $ 704 for dividends and $9,949 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. COMPUTERS PORTFOLIO: During the 10-year period ended February 28, 1998, a hypothetical $10,000 investment in Computers Portfolio would have grown to $ 66,511 , including the effect of the fund's 3.00% sales charge. COMPUTERS PORTFOLIO INDICES
YEAR ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF INITIAL REINVESTED REINVESTED VALUE LIVING $10,000 DIVIDEND CAPITAL GAIN INVESTMENT DISTRIBUTIONS DISTRIBUTIONS 2/28/98 $ 34,771 $ 893 $ 30,847 $ 66,511 $ 52,255 $ 55,126 $ 13,957 2/28/97 40,840 1,049 13,387 55,276 38,706 43,612 13,759 2/29/96 34,729 892 8,967 44,588 30,680 34,062 13,353 2/28/95 25,960 667 2,555 29,182 22,776 24,329 13,009 2/28/94 22,870 588 2,251 25,709 21,216 22,621 12,647 2/28/93 17,055 439 230 17,724 19,583 19,350 12,336 2/29/92 16,742 430 226 17,398 17,695 18,210 11,948 2/28/91 13,924 127 0 14,051 15,253 15,558 11,621 2/28/90 10,293 0 0 10,293 13,304 13,649 11,034 2/28/89 9,268 0 0 9,268 11,189 11,300 10,483
Explanatory Notes: With an initial investment of $10,000 in Computers Portfolio on March 1, 1988, assuming the 3.00% 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 $ 36,577 . 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 $ 330 for dividends and $ 19,882 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. CONSTRUCTION AND HOUSING PORTFOLIO: During the 10-year period ended February 28, 1998, a hypothetical $10,000 investment in Construction and Housing Portfolio would have grown to $ 46,775 , including the effect of the fund's 3.00% sales charge. CONSTRUCTION AND HOUSING PORTFOLIO INDICES
YEAR ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF INITIAL REINVESTED REINVESTED VALUE LIVING $10,000 DIVIDEND CAPITAL GAIN INVESTMENT DISTRIBUTIONS DISTRIBUTIONS 2/28/98 $ 23,655 $ 873 $ 22,247 $ 46,775 $ 52,255 $ 55,126 $ 13,957 2/28/97 20,304 714 12,384 33,402 38,706 43,612 13,759 2/29/96 18,053 606 9,495 28,154 30,680 34,062 13,353 2/28/95 15,496 438 7,186 23,120 22,776 24,329 13,009 2/28/94 18,292 517 7,627 26,436 21,216 22,621 12,647 2/28/93 14,527 410 5,805 20,742 19,583 19,350 12,336 2/29/92 12,607 356 5,025 17,988 17,695 18,210 11,948 2/28/91 10,429 295 3,070 13,794 15,253 15,558 11,621 2/28/90 10,494 123 1,720 12,337 13,304 13,649 11,034 2/28/89 11,269 60 268 11,597 11,189 11,300 10,483
Explanatory Notes: With an initial investment of $10,000 in Construction and Housing Portfolio on March 1, 1988, assuming the 3.00% 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 $24,543. 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 $378 for dividends and $9,691 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. CONSUMER INDUSTRIES PORTFOLIO: During the period from June 29, 1990 (commencement of operations) to February 28, 1998, a hypothetical $10,000 investment in Consumer Industries Portfolio would have grown to $ 35,866 , including the effect of the fund's 3.00% sales charge. CONSUMER INDUSTRIES PORTFOLIO INDICES
YEAR ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF INITIAL REINVESTED REINVESTED VALUE LIVING** $10,000 DIVIDEND CAPITAL GAIN INVESTMENT DISTRIBUTIONS DISTRIBUTIONS 2/28/98 $ 26,491 $ 200 $ 9,175 $ 35,866 $ 36,003 $ 36,385 $ 12,463 2/28/97 20,040 152 5,361 25,553 26,669 28,785 12,286 2/29/96 17,305 130 4,630 22,065 21,138 22,483 11,925 2/28/95 13,493 82 3,397 16,972 15,693 16,058 11,617 2/28/94 14,783 90 2,916 17,789 14,618 14,931 11,293 2/28/93 12,581 77 1,193 13,851 13,492 12,772 11,016 2/29/92 13,512 83 241 13,836 12,191 12,019 10,670 2/28/91* 10,505 65 0 10,570 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 3.00% 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 $ 15,615 . 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 $ 78 for dividends and $ 4,772 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. CYCLICAL INDUSTRIES PORTFOLIO: During the period from March 3, 1997 (commencement of operations) to February 28, 1998, a hypothetical $10,000 investment in Consumer Industries Portfolio would have grown to $12, 200 , including the effect of the fund's 3.00% sales charge. CYCLICAL INDUSTRIES PORTFOLIO INDICES
YEAR ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF INITIAL REINVESTED REINVESTED VALUE LIVING** $10,000 DIVIDEND CAPITAL GAIN INVESTMENT DISTRIBUTIONS DISTRIBUTIONS 2/28/98 $ 11,708 $ 0 $ 492 $ 12,200 $ 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 Consumer Industries Portfolio on March 3, 1997, assuming the 3.00% 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 $10,44 6 . 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 $4 4 6 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. DEFENSE AND AEROSPACE PORTFOLIO: During the 10-year period ended February 28, 1998, a hypothetical $10,000 investment in Defense and Aerospace Portfolio would have grown to $40, 504 , including the effect of the fund's 3.00% sales charge. DEFENSE AND AEROSPACE PORTFOLIO INDICES
YEAR ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF INITIAL REINVESTED REINVESTED VALUE LIVING $10,000 DIVIDEND CAPITAL GAIN INVESTMENT DISTRIBUTIONS DISTRIBUTIONS 2/28/98 $ 29,701 $ 585 $ 10,218 $ 40,504 $ 52,255 $ 55,126 $ 13,957 2/28/97 22,878 451 5,059 28,388 38,706 43,612 13,759 2/29/96 21,321 420 2,759 24,500 30,680 34,062 13,353 2/28/95 15,526 307 789 16,622 22,776 24,329 13,009 2/28/94 15,131 298 533 15,962 21,216 22,621 12,647 2/28/93 11,921 168 0 12,089 19,583 19,350 12,336 2/29/92 11,803 165 0 11,968 17,695 18,210 11,948 2/28/91 10,238 99 0 10,337 15,253 15,558 11,621 2/28/90 9,241 0 0 9,241 13,304 13,649 11,034 2/28/89 9,289 0 0 9,289 11,189 11,300 10,483
Explanatory Notes: With an initial investment of $10,000 in Defense and Aerospace Portfolio on March 1, 1988, assuming the 3.00% sales charge had been in effect, the net amo unt 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 $17,51 2 . 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 $22 1 for dividends and $6,26 1 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. DEVELOPING COMMUNICATIONS PORTFOLIO: During the period from June 29, 1990 (commencement of operations) to February 28, 1998, a hypothetical $10,000 investment in Developing Communications Portfolio would have grown to $ 40,099 , including the effect of the fund's 3.00% sales charge. DEVELOPING COMMUNICATIONS PORTFOLIO INDICES
YEAR ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF INITIAL REINVESTED REINVESTED VALUE LIVING** $10,000 DIVIDEND CAPITAL GAIN INVESTMENT DISTRIBUTIONS DISTRIBUTIONS 2/28/98 $ 19,536 $ 0 $ 20,563 $ 40,099 $ 36,003 $ 36,385 $ 12,463 2/28/97 19,089 0 12,195 31,284 26,669 28,785 12,286 2/29/96 18,837 0 12,034 30,871 21,138 22,483 11,925 2/28/95 19,788 0 5,549 25,337 15,693 16,058 11,617 2/28/94 19,061 0 3,238 22,299 14,618 14,931 11,293 2/28/93 15,947 0 1,174 17,121 13,492 12,772 11,016 2/29/92 13,997 0 1,002 14,999 12,191 12,019 10,670 2/28/91* 10,777 0 0 10,777 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 3.00% 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 $ 27,762 . 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 $ 12,911 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. ELECTRONICS PORTFOLIO: During the 10-year period ended February 28, 1998, a hypothetical $10,000 investment in Electronics Portfolio would have grown to $ 86,025 , including the effect of the fund's 3.00% sales charge. ELECTRONICS PORTFOLIO INDICES
YEAR ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF INITIAL REINVESTED REINVESTED VALUE LIVING $10,000 DIVIDEND CAPITAL GAIN INVESTMENT DISTRIBUTIONS DISTRIBUTIONS 2/28/98 $ 44,483 $ 55 $ 41,487 $ 86,025 $ 52,255 $ 55,126 $ 13,957 2/28/97 48,246 59 20,988 69,293 38,706 43,612 13,759 2/29/96 35,825 44 15,585 51,454 30,680 34,062 13,353 2/28/95 25,172 31 4,583 29,786 22,776 24,329 13,009 2/28/94 22,464 28 4,090 26,582 21,216 22,621 12,647 2/28/93 18,154 23 0 18,177 19,583 19,350 12,336 2/29/92 16,616 20 0 16,636 17,695 18,210 11,948 2/28/91 12,904 16 0 12,920 15,253 15,558 11,621 2/28/90 10,997 0 0 10,997 13,304 13,649 11,034 2/28/89 8,696 0 0 8,696 11,189 11,300 10,483
Explanatory Notes: With an initial investment of $10,000 in Electronics Portfolio on March 1, 198 8 , assuming the 3.00% 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 $ 41,305 . 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 $ 13 for dividends and $ 23,138 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. ENERGY PORTFOLIO: During the 10-year period ended February 28, 1998, a hypothetical $10,000 investment in Energy Portfolio would have grown to $ 29,650 , including the effect of the fund's 3.00% sales charge. ENERGY PORTFOLIO INDICES
YEAR ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF INITIAL REINVESTED REINVESTED VALUE LIVING $10,000 DIVIDEND CAPITAL GAIN INVESTMENT DISTRIBUTIONS DISTRIBUTIONS 2/28/98 $ 17,383 $ 1,886 $ 10,381 $ 29,650 $ 52,255 $ 55,126 $ 13,957 2/28/97 17,473 1,786 5,368 24,627 38,706 43,612 13,759 2/29/96 15,554 1,460 3,449 20,463 30,680 34,062 13,353 2/28/95 13,201 1,135 2,586 16,922 22,776 24,329 13,009 2/28/94 13,718 1,060 2,137 16,915 21,216 22,621 12,647 2/28/93 12,988 975 1,458 15,421 19,583 19,350 12,336 2/29/92 11,619 614 1,305 13,538 17,695 18,210 11,948 2/28/91 12,685 509 1,405 14,599 15,253 15,558 11,621 2/28/90 14,111 429 187 14,727 13,304 13,649 11,034 2/28/89 10,799 282 0 11,081 11,189 11,300 10,483
Explanatory Notes: With an initial investment of $10,000 in Energy Portfolio on March 1, 1988, assuming the 3.00% 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 $ 20,623 . 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 $ 1,181 for dividends and $ 6,978 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. ENERGY SERVICE PORTFOLIO: During the 10-year period ended February 28, 1998, a hypothetical $10,000 investment in Energy Service Portfolio would have grown to $ 39,159 , including the effect of the fund's 3.00% sales charge. ENERGY SERVICE PORTFOLIO INDICES
YEAR ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF INITIAL REINVESTED REINVESTED VALUE LIVING $10,000 DIVIDEND CAPITAL GAIN INVESTMENT DISTRIBUTIONS DISTRIBUTIONS 2/28/98 $ 31,826 $ 361 $ 6,972 $ 39,159 $ 52,255 $ 55,126 $ 13,957 2/28/97 23,239 263 2,880 26,382 38,706 43,612 13,759 2/29/96 18,276 197 1,475 19,948 30,680 34,062 13,353 2/28/95 13,596 108 632 14,336 22,776 24,329 13,009 2/28/94 13,244 79 0 13,323 21,216 22,621 12,647 2/28/93 12,506 20 0 12,526 19,583 19,350 12,336 2/29/92 10,654 18 0 10,672 17,695 18,210 11,948 2/28/91 15,334 25 0 15,359 15,253 15,558 11,621 2/28/90 13,948 0 0 13,948 13,304 13,649 11,034 2/28/89 9,166 0 0 9,166 11,189 11,300 10,483
Explanatory Notes: With an initial investment of $10,000 in Energy Service Portfolio on March 1, 1988, assuming the 3.00% 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 $ 14,701 . 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 $ 159 for dividends and $ 4,078 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. ENVIRONMENTAL SERVICES PORTFOLIO: During the period from June 29, 1989 (commencement of operations) to February 28, 1998, a hypothetical $10,000 investment in Environmental Services Portfolio would have grown to $ 18,154 , including the effect of the fund's 3.00% sales charge. ENVIRONMENTAL SERVICES PORTFOLIO INDICES
YEAR ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF INITIAL REINVESTED REINVESTED VALUE LIVING** $10,000 DIVIDEND CAPITAL GAIN INVESTMENT DISTRIBUTIONS DISTRIBUTIONS 2/28/98 $ 15,966 $ 14 $ 2,174 $ 18,154 $ 41,719 $ 44,268 $ 13,046 2/28/97 14,065 12 1,915 15,992 30,902 35,022 12,861 2/29/96 12,047 11 1,619 13,677 24,494 27,353 12,482 2/28/95 9,962 9 757 10,728 18,184 19,537 12,160 2/28/94 11,572 10 880 12,462 16,938 18,166 11,821 2/28/93 11,019 10 838 11,867 15,634 15,539 11,531 2/29/92 12,649 11 486 13,146 14,127 14,623 11,168 2/28/91 12,600 11 0 12,611 12,178 12,493 10,862 2/28/90* 10,554 9 0 10,563 10,622 10,960 10,314
* From June 29, 1989 (commencement of operations). ** From month-end closest to initial investment date. Explanatory Notes: With an initial investment of $10,000 in Environmental Services Portfolio on June 29, 1989, assuming the 3.00% 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 $ 11,512 . 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 $ 10 for dividends and $ 1,436 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. FINANCIAL SERVICES PORTFOLIO: During the 10-year period ended February 28, 1998, a hypothetical $10,000 investment in Financial Services Portfolio would have grown to $ 68,670 , including the effect of the fund's 3.00% sales charge. FINANCIAL SERVICES PORTFOLIO INDICES
YEAR ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF INITIAL REINVESTED REINVESTED VALUE LIVING $10,000 DIVIDEND CAPITAL GAIN INVESTMENT DISTRIBUTIONS DISTRIBUTIONS 2/28/98 $ 36,697 $ 5,396 $ 26,577 $ 68,670 $ 52,255 $ 55,126 $ 13,957 2/28/97 29,470 3,965 15,238 48,673 38,706 43,612 13,759 2/29/96 23,344 2,817 9,750 35,911 30,680 34,062 13,353 2/28/95 17,137 1,913 6,776 25,826 22,776 24,329 13,009 2/28/94 18,206 1,683 4,773 24,662 21,216 22,621 12,647 2/28/93 18,935 1,657 1,655 22,247 19,583 19,350 12,336 2/29/92 14,848 1,119 93 16,060 17,695 18,210 11,948 2/28/91 10,034 643 63 10,740 15,253 15,558 11,621 2/28/90 10,581 425 66 11,072 13,304 13,649 11,034 2/28/89 9,963 295 0 10,258 11,189 11,300 10,483
Explanatory Notes: With an initial investment of $10,000 in Financial Services Portfolio on March 1, 1988, assuming the 3.00% 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 $ 28,120 . 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 $ 1,759 for dividends and $ 11,015 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. FOOD AND AGRICULTURE PORTFOLIO: During the 10-year period ended February 28, 1998, a hypothetical $10,000 investment in Food and Agriculture Portfolio would have grown to $ 57,832 , including the effect of the fund's 3.00% sales charge. FOOD AND AGRICULTURE PORTFOLIO INDICES
YEAR ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF INITIAL REINVESTED REINVESTED VALUE LIVING $10,000 DIVIDEND CAPITAL GAIN INVESTMENT DISTRIBUTIONS DISTRIBUTIONS 2/28/98 $ 29,796 $ 1,953 $ 26,083 $ 57,832 $ 52,255 $ 55,126 $ 13,957 2/28/97 27,183 1,373 18,240 46,796 38,706 43,612 13,759 2/29/96 25,730 1,052 14,415 41,197 30,680 34,062 13,353 2/28/95 19,858 653 9,358 29,869 22,776 24,329 13,009 2/28/94 19,223 559 7,339 27,121 21,216 22,621 12,647 2/28/93 18,838 481 4,963 24,282 19,583 19,350 12,336 2/29/92 18,454 395 3,637 22,486 17,695 18,210 11,948 2/28/91 16,470 279 2,187 18,936 15,253 15,558 11,621 2/28/90 13,418 60 1,299 14,777 13,304 13,649 11,034 2/28/89 11,611 32 0 11,643 11,189 11,300 10,483
Explanatory Notes: With an initial investment of $10,000 in Food and Agriculture Portfolio on March 1, 1988, assuming the 3.00% 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 $ 29,509 . 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 $ 940 for dividends and $ 12,557 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. HEALTH CARE PORTFOLIO: During the 10-year period ended February 28, 1998, a hypothetical $10,000 investment in Health Care Portfolio would have grown to $ 78,689 , including the effect of the fund's 3.00% sales charge. HEALTH CARE PORTFOLIO INDICES
YEAR ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF INITIAL REINVESTED REINVESTED VALUE LIVING $10,000 DIVIDEND CAPITAL GAIN INVESTMENT DISTRIBUTIONS DISTRIBUTIONS 2/28/98 $ 31,559 $ 2,137 $ 44,993 $ 78,689 $ 52,255 $ 55,126 $ 13,957 2/28/97 28,401 1,767 27,492 57,660 38,706 43,612 13,759 2/29/96 27,853 1,397 18,635 47,885 30,680 34,062 13,353 2/28/95 21,105 844 12,332 34,281 22,776 24,329 13,009 2/28/94 17,551 463 8,107 26,121 21,216 22,621 12,647 2/28/93 14,574 359 6,732 21,665 19,583 19,350 12,336 2/29/92 22,039 465 6,207 28,711 17,695 18,210 11,948 2/28/91 18,130 278 2,452 20,860 15,253 15,558 11,621 2/28/90 12,303 139 237 12,679 13,304 13,649 11,034 2/28/89 9,936 82 0 10,018 11,189 11,300 10,483
Explanatory Notes: With an initial investment of $10,000 in Health Care Portfolio on March 1, 1988, assuming the 3.00% 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 $ 43,995 . 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 $ 912 for dividends and $ 19,730 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. HOME FINANCE PORTFOLIO: During the 10-year period ended February 28, 1998, a hypothetical $10,000 investment in Home Finance Portfolio would have grown to $ 104,368 , including the effect of the fund's 3.00% sales charge. HOME FINANCE PORTFOLIO INDICES
YEAR ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF INITIAL REINVESTED REINVESTED VALUE LIVING $10,000 DIVIDEND CAPITAL GAIN INVESTMENT DISTRIBUTIONS DISTRIBUTIONS 2/28/98 $ 59,699 $ 5,395 $ 39,274 $ 104,368 $ 52,255 $ 55,126 $ 13,957 2/28/97 51,465 4,118 23,249 78,832 38,706 43,612 13,759 2/29/96 37,256 2,516 13,674 53,446 30,680 34,062 13,353 2/28/95 26,762 1,584 8,967 37,313 22,776 24,329 13,009 2/28/94 28,004 1,458 3,724 33,186 21,216 22,621 12,647 2/28/93 24,815 1,280 1,650 27,745 19,583 19,350 12,336 2/29/92 17,140 874 859 18,873 17,695 18,210 11,948 2/28/91 11,210 422 562 12,194 15,253 15,558 11,621 2/28/90 10,271 189 515 10,975 13,304 13,649 11,034 2/28/89 11,524 164 0 11,688 11,189 11,300 10,483
Explanatory Notes: With an initial investment of $10,000 in Home Finance Portfolio on March 1, 1988, assuming the 3.00% 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 $ 34,707 . 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 $ 1,555 for dividends and $ 16,223 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. INDUSTRIAL EQUIPMENT PORTFOLIO: During the 10-year period ended February 28, 1998, a hypothetical $10,000 investment in Industrial Equipment Portfolio would have grown to $ 41,173 including the effect of the fund's 3.00% sales charge. INDUSTRIAL EQUIPMENT PORTFOLIO INDICES
YEAR ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF INITIAL REINVESTED REINVESTED VALUE LIVING $10,000 DIVIDEND CAPITAL GAIN INVESTMENT DISTRIBUTIONS DISTRIBUTIONS 2/28/98 $ 24,958 $ 565 $ 15,650 $ 41,173 $ 52,255 $ 55,126 $ 13,957 2/28/97 24,573 527 7,641 32,741 38,706 43,612 13,759 2/29/96 24,187 472 3,029 27,688 30,680 34,062 13,353 2/28/95 19,304 332 595 20,231 22,776 24,329 13,009 2/28/94 19,853 342 434 20,629 21,216 22,621 12,647 2/28/93 14,487 240 0 14,727 19,583 19,350 12,336 2/29/92 13,784 228 0 14,012 17,695 18,210 11,948 2/28/91 11,386 76 0 11,462 15,253 15,558 11,621 2/28/90 11,376 0 0 11,376 13,304 13,649 11,034 2/28/89 9,787 0 0 9,787 11,189 11,300 10,483
Explanatory Notes: With an initial investment of $10,000 in Industrial Equipment Portfolio on March 1, 1988, assuming the 3.00% 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 $ 24,433 . 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 $ 308 for dividends and $11,289 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. INDUSTRIAL MATERIALS PORTFOLIO: During the 10-year period ended February 28, 1998, a hypothetical $10,000 investment in Industrial Materials Portfolio would have grown to $ 25,227 , including the effect of the fund's 3.00% sales charge. INDUSTRIAL MATERIALS PORTFOLIO INDICES
YEAR ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF INITIAL REINVESTED REINVESTED VALUE LIVING $10,000 DIVIDEND CAPITAL GAIN INVESTMENT DISTRIBUTIONS DISTRIBUTIONS 2/28/98 $ 18,798 $ 1,415 $ 5,014 $ 25,227 $ 52,255 $ 55,126 $ 13,957 2/28/97 20,799 1,535 1,333 23,667 38,706 43,612 13,759 2/29/96 19,603 1,399 0 21,002 30,680 34,062 13,353 2/28/95 17,392 1,131 0 18,523 22,776 24,329 13,009 2/28/94 16,294 913 0 17,207 21,216 22,621 12,647 2/28/93 13,114 689 0 13,803 19,583 19,350 12,336 2/29/92 12,452 592 0 13,044 17,695 18,210 11,948 2/28/91 9,354 401 0 9,755 15,253 15,558 11,621 2/28/90 9,790 162 0 9,952 13,304 13,649 11,034 2/28/89 10,121 167 0 10,288 11,189 11,300 10,483
Explanatory Notes: With an initial investment of $10,000 in Industrial Materials Portfolio on March 1, 1988, assuming the 3.00% 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 $ 15,763 . 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 $ 880 for dividends and $ 4,188 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. INSURANCE PORTFOLIO: During the 10-year period ended February 28, 1998, a hypothetical $10,000 investment in Insurance Portfolio would have grown to $ 60,154 , including the effect of the fund's 3.00% sales charge. INSURANCE PORTFOLIO INDICES
YEAR ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF INITIAL REINVESTED REINVESTED VALUE LIVING $10,000 DIVIDEND CAPITAL GAIN INVESTMENT DISTRIBUTIONS DISTRIBUTIONS 2/28/98 $ 39,997 $ 1,681 $ 18,476 $ 60,154 $ 52,255 $ 55,126 $ 13,957 2/28/97 30,991 1,302 9,829 42,122 38,706 43,612 13,759 2/29/96 25,433 1,032 6,372 32,837 30,680 34,062 13,353 2/28/95 20,246 744 4,364 25,354 22,776 24,329 13,009 2/28/94 18,440 679 3,975 23,094 21,216 22,621 12,647 2/28/93 20,502 743 2,140 23,385 19,583 19,350 12,336 2/29/92 17,832 613 0 18,445 17,695 18,210 11,948 2/28/91 14,992 274 0 15,266 15,253 15,558 11,621 2/28/90 13,481 247 0 13,728 13,304 13,649 11,034 2/28/89 11,372 94 0 11,466 11,189 11,300 10,483
Explanatory Notes: With an initial investment of $10,000 in Insurance on March 1, 1988, assuming the 3.00% 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 $ 21,833 . 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 $ 608 for dividends and $ 8,911 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. LEISURE PORTFOLIO: During the 10-year period ended February 28, 1998, a hypothetical $10,000 investment in Leisure Portfolio would have grown to $ 49,934 , including the effect of the fund's 3.00% sales charge. LEISURE PORTFOLIO INDICES
YEAR ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF INITIAL REINVESTED REINVESTED VALUE LIVING $10,000 DIVIDEND CAPITAL GAIN INVESTMENT DISTRIBUTIONS DISTRIBUTIONS 2/28/98 $ 28,081 $ 382 $ 21,471 $ 49,934 $ 52,255 $ 55,126 $ 13,957 2/28/97 21,559 293 12,050 33,902 38,706 43,612 13,759 2/29/96 20,811 282 9,688 30,781 30,680 34,062 13,353 2/28/95 18,350 249 5,522 24,121 22,776 24,329 13,009 2/28/94 20,419 277 3,686 24,382 21,216 22,621 12,647 2/28/93 16,123 219 1,437 17,779 19,583 19,350 12,336 2/29/92 14,401 196 1,283 15,880 17,695 18,210 11,948 2/28/91 11,638 158 1,037 12,833 15,253 15,558 11,621 2/28/90 11,589 28 1,033 12,650 13,304 13,649 11,034 2/28/89 11,616 0 206 11,822 11,189 11,300 10,483
Explanatory Notes: With an initial investment of $10,000 in Leisure Portfolio on March 1, 1988, assuming the 3.00% 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 $ 24,854 . 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 $ 135 for dividends and $ 10,922 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. MEDICAL DELIVERY PORTFOLIO: During the 10-year period ended February 28, 1998, a hypothetical $10,000 investment in Medical Delivery Portfolio would have grown to $ 72,995 , including the effect of the fund's 3.00% sales charge. MEDICAL DELIVERY PORTFOLIO INDICES
YEAR ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF INITIAL REINVESTED REINVESTED VALUE LIVING $10,000 DIVIDEND CAPITAL GAIN INVESTMENT DISTRIBUTIONS DISTRIBUTIONS 2/28/98 $ 38,313 $ 330 $ 34,352 $ 72,995 $ 52,255 $ 55,126 $ 13,957 2/28/97 38,272 331 21,242 59,845 38,706 43,612 13,759 2/29/96 39,233 338 14,587 54,158 30,680 34,062 13,353 2/28/95 31,359 271 8,742 40,372 22,776 24,329 13,009 2/28/94 27,436 121 6,191 33,748 21,216 22,621 12,647 2/28/93 19,562 87 4,414 24,063 19,583 19,350 12,336 2/29/92 29,628 130 3,625 33,383 17,695 18,210 11,948 2/28/91 22,769 100 1,187 24,056 15,253 15,558 11,621 2/28/90 14,300 63 309 14,672 13,304 13,649 11,034 2/28/89 11,824 0 0 11,824 11,189 11,300 10,483
Explanatory Notes: With an initial investment of $10,000 in Medical Delivery Portfolio on March 1, 1988, assuming the 3.00% 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 $ 38,290 . 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 $ 162 for dividends and $ 20,171 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. MONEY MARKET PORTFOLIO: During the 10-year period ended February 28, 1998, a hypothetical $10,000 investment in Money Market Portfolio would have grown to $ 16,597 , including the effect of the fund's 3.00% sales charge. MONEY MARKET PORTFOLIO INDICES
YEAR ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF INITIAL REINVESTED REINVESTED VALUE LIVING $10,000 DIVIDEND CAPITAL GAIN INVESTMENT DISTRIBUTIONS DISTRIBUTIONS 2/28/98 $ 9,700 $ 6,897 $ 0 $ 16,597 $ 52,255 $ 55,126 $ 13,957 2/28/97 9,700 6,068 0 15,768 38,706 43,612 13,759 2/29/96 9,700 5,314 0 15,014 30,680 34,062 13,353 2/28/95 9,700 4,523 0 14,223 22,776 24,329 13,009 2/28/94 9,700 3,939 0 13,639 21,216 22,621 12,647 2/28/93 9,700 3,590 0 13,290 19,583 19,350 12,336 2/29/92 9,700 3,168 0 12,868 17,695 18,210 11,948 2/28/91 9,700 2,519 0 12,219 15,253 15,558 11,621 2/28/90 9,700 1,638 0 11,338 13,304 13,649 11,034 2/28/89 9,700 724 0 10,424 11,189 11,300 10,483
Explanatory Notes: With an initial investment of $10,000 in Money Market Portfolio on March 1, 1988, assuming the 3.00% 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 $ 16,897 . 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 $ 5,223 for dividends. The fund did not distribute any capital gains during the period. MULTIMEDIA PORTFOLIO: During the 10-year period ended February 28, 1998, a hypothetical $10,000 investment in Multimedia Portfolio would have grown to $ 50,393 , including the effect of the fund's 3.00% sales charge. MULTIMEDIA PORTFOLIO INDICES
YEAR ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF INITIAL REINVESTED REINVESTED VALUE LIVING $10,000 DIVIDEND CAPITAL GAIN INVESTMENT DISTRIBUTIONS DISTRIBUTIONS 2/28/98 $ 27,627 $ 33 $ 22,733 $ 50,393 $ 52,255 $ 55,126 $ 13,957 2/28/97 20,494 25 14,864 35,383 38,706 43,612 13,759 2/29/96 22,362 27 14,669 37,058 30,680 34,062 13,353 2/28/95 18,388 0 9,691 28,079 22,776 24,329 13,009 2/28/94 19,639 0 6,039 25,678 21,216 22,621 12,647 2/28/93 15,023 0 4,017 19,040 19,583 19,350 12,336 2/29/92 13,246 0 3,323 16,569 17,695 18,210 11,948 2/28/91 10,038 0 2,518 12,556 15,253 15,558 11,621 2/28/90 10,161 0 2,549 12,710 13,304 13,649 11,034 2/28/89 11,929 0 743 12,672 11,189 11,300 10,483
Explanatory Notes: With an initial investment of $10,000 in Multimedia Portfolio on March 1, 1988, assuming the 3.00% 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 $ 23,798 . 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 $ 10,029 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. NATURAL GAS PORTFOLIO: During the period from April 21, 1993 (commencement of operations) to February 28, 1998, a hypothetical $10,000 investment in Natural Gas Portfolio would have grown to $13,764, including the effect of the fund's 3.00% sales charge. NATURAL GAS PORTFOLIO INDICES
YEAR ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF INITIAL REINVESTED REINVESTED VALUE LIVING** $10,000 DIVIDEND CAPITAL GAIN INVESTMENT DISTRIBUTIONS DISTRIBUTIONS 2/28/98 $ 12,823 $ 103 $ 838 $ 13,764 $ 26,583 $ 27,804 $ 11,243 2/28/97 12,125 97 436 12,658 19,691 21,997 11,083 2/29/96 11,019 78 159 11,256 15,608 17,180 10,757 2/28/95 8,711 20 125 8,856 11,587 12,271 10,479 2/28/94* 9,196 0 132 9,328 10,793 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 3.00% 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 $ 10,828 . 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 $ 78 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. NATURAL RESOURCES PORTFOLIO: During the period from March 3, 1997 (commencement of operations) to February 28, 1998, a hypothetical $10,000 investment in Natural Gas Portfolio would have grown to $10,408, including the effect of the fund's 3.00% sales charge. NATURAL RESOURCES PORTFOLIO INDICES
YEAR ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF INITIAL REINVESTED REINVESTED VALUE LIVING** $10,000 DIVIDEND CAPITAL GAIN INVESTMENT DISTRIBUTIONS DISTRIBUTIONS 2/28/9 8 $ 10,146 $ 0 $ 262 $ 10,408 $ 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 Gas Portfolio on March 3, 1997, assuming the 3.00% 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. PAPER AND FOREST PRODUCTS PORTFOLIO: During the 10-year period ended February 28, 1998, a hypothetical $10,000 investment in Paper and Forest Products Portfolio would have grown to $ 27,194 , including the effect of the fund's 3.00% sales charge. PAPER AND FOREST PRODUCTS PORTFOLIO INDICES
YEAR ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF INITIAL REINVESTED REINVESTED VALUE LIVING $10,000 DIVIDEND CAPITAL GAIN INVESTMENT DISTRIBUTIONS DISTRIBUTIONS 2/28/98 $ 18,378 $ 1,419 $ 7,397 $ 27,194 $ 52,255 $ 55,126 $ 13,957 2/28/97 17,543 1,307 4,688 23,538 38,706 43,612 13,759 2/29/96 16,853 1,151 3,226 21,230 30,680 34,062 13,353 2/28/95 17,145 1,097 1,203 19,445 22,776 24,329 13,009 2/28/94 15,904 1,018 0 16,922 21,216 22,621 12,647 2/28/93 13,041 826 0 13,867 19,583 19,350 12,336 2/29/92 12,190 694 0 12,884 17,695 18,210 11,948 2/28/91 9,578 309 0 9,887 15,253 15,558 11,621 2/28/90 9,278 140 0 9,418 13,304 13,649 11,034 2/28/89 9,643 25 0 9,668 11,189 11,300 10,483
Explanatory Notes: With an initial investment of $10,000 in Paper and Forest Products Portfolio on March 1, 1988, assuming the 3.00% 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 $ 17,570 . 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 $ 787 for dividends and $ 5,483 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. PRECIOUS METALS AND MINERALS PORTFOLIO: During the 10-year period ended February 28, 1998 , a hypothetical $10,000 investment in Precious Metals and Minerals Portfolio would have grown to $ 9,059 , including the effect of the fund's 3.00% sales charge. PRECIOUS METALS AND MINERALS PORTFOLIO INDICES
YEAR ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF INITIAL REINVESTED REINVESTED VALUE LIVING $10,000 DIVIDEND CAPITAL GAIN INVESTMENT DISTRIBUTIONS DISTRIBUTIONS 2/28/98 $ 7,977 $ 1,082 $ 0 $ 9,059 $ 52,255 $ 55,126 $ 13,957 2/28/97 15,210 2,061 0 17,271 38,706 43,612 13,759 2/29/96 16,265 2,160 0 18,425 30,680 34,062 13,353 2/28/95 11,850 1,526 0 13,376 22,776 24,329 13,009 2/28/94 12,897 1,464 0 14,361 21,216 22,621 12,647 2/28/93 7,651 768 0 8,419 19,583 19,350 12,336 2/29/92 8,497 676 0 9,173 17,695 18,210 11,948 2/28/91 8,474 591 0 9,065 15,253 15,558 11,621 2/28/90 11,058 609 0 11,667 13,304 13,649 11,034 2/28/89 9,227 390 0 9,617 11,189 11,300 10,483
Explanatory Notes: With an initial investment of $10,000 in Precious Metals and Minerals Portfolio on March 1, 1988, assuming the 3.00% 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 $ 11,326 . 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 $ 1,249 for dividends and $ 0 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. REGIONAL BANKS PORTFOLIO: During the 10-year period ended February 28, 1998 , a hypothetical $10,000 investment in Regional Banks Portfolio would have grown to $ 93,458 , including the effect of the fund's 3.00% sales charge. REGIONAL BANKS PORTFOLIO INDICES
YEAR ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF INITIAL REINVESTED REINVESTED VALUE LIVING $10,000 DIVIDEND CAPITAL GAIN INVESTMENT DISTRIBUTIONS DISTRIBUTIONS 2/28/98 $ 47,381 $ 7,567 $ 38,510 $ 93,458 $ 52,255 $ 55,126 $ 13,957 2/28/97 36,013 5,263 27,120 68,396 38,706 43,612 13,759 2/29/96 26,741 3,415 17,564 47,720 30,680 34,062 13,353 2/28/95 19,762 2,160 11,936 33,858 22,776 24,329 13,009 2/28/94 19,740 1,656 10,016 31,412 21,216 22,621 12,647 2/28/93 22,911 1,671 4,923 29,505 19,583 19,350 12,336 2/29/92 17,326 1,135 2,779 21,240 17,695 18,210 11,948 2/28/91 11,094 573 1,238 12,905 15,253 15,558 11,621 2/28/90 11,653 369 1,300 13,322 13,304 13,649 11,034 2/28/89 11,192 237 556 11,985 11,189 11,300 10,483
Explanatory Notes: With an initial investment of $10,000 in Regional Banks Portfolio on March 1, 1988, assuming the 3.00% 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 $ 30,285 . 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 $ 2,118 for dividends and $ 11,785 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. RETAILING PORTFOLIO: During the 10-year period ended February 28, 1998 , a hypothetical $10,000 investment in Retailing Portfolio would have grown to $ 65,489 , including the effect of the fund's 3.00% sales charge. RETAILING PORTFOLIO INDICES
YEAR ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF INITIAL REINVESTED REINVESTED VALUE LIVING $10,000 DIVIDEND CAPITAL GAIN INVESTMENT DISTRIBUTIONS DISTRIBUTIONS 2/28/98 $ 43,808 $ 648 $ 21,033 $ 65,489 $ 52,25 $ 55,126 $ 13,957 2/28/97 29,109 430 13,374 42,913 38,706 43,612 13,759 2/29/96 24,399 361 11,123 35,883 30,680 34,062 13,353 2/28/95 20,932 309 9,543 30,784 22,776 24,329 13,009 2/28/94 21,807 323 9,942 32,072 21,216 22,621 12,647 2/28/93 20,897 309 6,535 27,741 19,583 19,350 12,336 2/29/92 20,608 305 5,036 25,949 17,695 18,210 11,948 2/28/91 13,622 202 2,901 16,725 15,253 15,558 11,621 2/28/90 11,442 169 2,404 14,015 13,304 13,649 11,034 2/28/89 11,547 28 167 11,742 11,189 11,300 10,483
Explanatory Notes: With an initial investment of $10,000 in Retailing Portfolio on March 1, 1988, assuming the 3.00% 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 $ 18,426 . 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 $ 166 for dividends and $ 6,715 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. SOFTWARE AND COMPUTER SERVICES PORTFOLIO: During the 10-year period ended February 28, 1998, a hypothetical $10,000 investment in Software and Computer Services would have grown to $70,402, including the effect of the fund's 3.00% sales charge.
SOFTWARE AND COMPUTER SERVICES PORTFOLIO INDICES
YEAR ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF INITIAL REINVESTED REINVESTED VALUE LIVING $10,000 DIVIDEND CAPITAL GAIN INVESTMENT DISTRIBUTIONS DISTRIBUTIONS 2/28/98 $ 31,066 $ 0 $ 39,336 $ 70,402 $ 52,255 $ 55,126 $ 13,957 2/28/97 27,078 0 24,877 51,955 38,706 43,612 13,759 2/29/96 25,408 0 19,325 44,733 30,680 34,062 13,353 2/28/95 20,404 0 11,509 31,913 22,776 24,329 13,009 2/28/94 20,277 0 11,018 31,295 21,216 22,621 12,647 2/28/93 19,385 0 4,111 23,496 19,583 19,350 12,336 2/29/92 16,361 0 3,469 19,830 17,695 18,210 11,948 2/28/91 13,230 0 765 13,995 15,253 15,558 11,621 2/28/90 10,549 0 610 11,159 13,304 13,649 11,034 2/28/89 10,332 0 0 10,332 11,189 11,300 10,483
Explanatory Notes: With an initial investment of $10,000 in Software and Computer Services Portfolio on March 1, 1988, assuming the 3.00% 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 $37,293. 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 $17,329 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. TECHNOLOGY PORTFOLIO: During the 10-year period ended February 28, 199 8, a hypothetical $10,000 investment in Technology Portfolio would have grown to $ 62,518 , including the effect of the fund's 3.00% sales charge. TECHNOLOGY PORTFOLIO INDICES
YEAR ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF INITIAL REINVESTED REINVESTED VALUE LIVING $10,000 DIVIDEND CAPITAL GAIN INVESTMENT DISTRIBUTIONS DISTRIBUTIONS 2/28/98 $ 29,051 $ 302 $ 33,165 $ 62,518 $ 52,255 $ 55,126 $ 13,957 2/28/97 31,550 327 18,168 50,045 38,706 43,612 13,759 2/29/96 29,893 310 14,225 44,428 30,680 34,062 13,353 2/28/95 22,992 239 6,248 29,479 22,776 24,329 13,009 2/28/94 22,872 237 5,071 28,180 21,216 22,621 12,647 2/28/93 18,930 108 1,741 20,779 19,583 19,350 12,336 2/29/92 19,553 113 0 19,666 17,695 18,210 11,948 2/28/91 14,408 0 0 14,408 15,253 15,558 11,621 2/28/90 10,985 0 0 10,985 13,304 13,649 11,034 2/28/89 9,541 0 0 9,541 11,189 11,300 10,483
Explanatory Notes: With an initial investment of $10,000 in Technology Portfolio on March 1, 1988, assuming the 3.00% 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 $38,470. 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 $159 for dividends and $19,340 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. TELECOMMUNICATIONS PORTFOLIO: During the 10-year period ended February 28, 1998, a hypothetical $10,000 investment in Telecommunications Portfolio would have grown to $ 60,224 , including the effect of the fund's 3.00% sales charge. TELECOMMUNICATIONS PORTFOLIO INDICES
YEAR ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF INITIAL REINVESTED REINVESTED VALUE LIVING $10,000 DIVIDEND CAPITAL GAIN INVESTMENT DISTRIBUTIONS DISTRIBUTIONS 2/28/98 $ 32,498 $ 3,101 $ 24,625 $ 60,224 $ 52,255 $ 55,126 $ 13,957 2/28/97 25,453 2,428 13,221 41,102 38,706 43,612 13,759 2/29/96 27,322 2,339 8,449 38,110 30,680 34,062 13,353 2/28/95 23,346 1,725 5,225 30,296 22,776 24,329 13,009 2/28/94 22,591 1,256 4,210 28,057 21,216 22,621 12,647 2/28/93 20,819 1,027 1,171 23,017 19,583 19,350 12,336 2/29/92 17,774 763 706 19,243 17,695 18,210 11,948 2/28/91 14,486 460 576 15,522 15,253 15,558 11,621 2/28/90 14,663 164 583 15,410 13,304 13,649 11,034 2/28/89 12,379 82 20 12,481 11,189 11,300 10,483
Explanatory Notes: With an initial investment of $10,000 in Telecommunications Portfolio on March 1, 1988, assuming the 3.00% 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 $ 30,305 . 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 $ 1,534 for dividends and $ 13,274 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. TRANSPORTATION PORTFOLIO: During the 10-year period ended February 28, 1998, a hypothetical $10,000 investment in Transportation Portfolio would have grown to $54,171, including the effect of the fund's 3.00% sales charge. TRANSPORTATION PORTFOLIO INDICES
YEAR ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF INITIAL REINVESTED REINVESTED VALUE LIVING $10,000 DIVIDEND CAPITAL GAIN INVESTMENT DISTRIBUTIONS DISTRIBUTIONS 2/28/98 $ 28,785 $ 116 $ 25,270 $ 54,171 $ 52,255 $ 55,126 $ 13,957 2/28/97 22,579 91 15,709 38,379 38,706 43,612 13,759 2/29/96 22,264 90 14,312 36,666 30,680 34,062 13,353 2/28/95 20,852 85 11,525 32,462 22,776 24,329 13,009 2/28/94 22,010 89 8,554 30,653 21,216 22,621 12,647 2/28/93 18,973 77 4,997 24,047 19,583 19,350 12,336 2/29/92 15,713 64 3,727 19,504 17,695 18,210 11,948 2/28/91 11,457 0 2,718 14,175 15,253 15,558 11,621 2/28/90 12,533 0 2,355 14,888 13,304 13,649 11,034 2/28/89 12,960 0 0 12,960 11,189 11,300 10,483
Explanatory Notes: With an initial investment of $10,000 in Transportation Portfolio on March 1, 1988, assuming the 3.00% 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 $27,259. 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 $41 for dividends and $12,249 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. UTILITIES GROWTH PORTFOLIO: During the 10-year period ended February 28, 1998, a hypothetical $10,000 investment in Utilities Growth Portfolio would have grown to $ 43,616 , including the effect of the fund's 3.00% sales charge. UTILITIES GROWTH PORTFOLIO INDICES
YEAR ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF INITIAL REINVESTED REINVESTED VALUE LIVING $10,000 DIVIDEND CAPITAL GAIN INVESTMENT DISTRIBUTIONS DISTRIBUTIONS 2/28/98 $ 20,496 $ 7,740 $ 15,380 $ 43,616 $ 52,255 $ 55,126 $ 13,957 2/28/97 17,611 6,240 8,172 32,023 38,706 43,612 13,759 2/29/96 16,485 5,361 5,261 27,107 30,680 34,062 13,353 2/28/95 13,362 3,919 4,264 21,545 22,776 24,329 13,009 2/28/94 14,025 3,420 4,054 21,499 21,216 22,621 12,647 2/28/93 15,895 3,250 1,823 20,968 19,583 19,350 12,336 2/29/92 14,010 2,240 809 17,059 17,695 18,210 11,948 2/28/91 13,535 1,420 259 15,214 15,253 15,558 11,621 2/28/90 12,742 1,083 0 13,825 13,304 13,649 11,034 2/28/89 10,324 581 0 10,905 11,189 11,300 10,483
Explanatory Notes: With an initial investment of $10,000 in Utilities Growth Portfolio March 1, 1988, assuming the 3.00% 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 $27,063. 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 $3,888 for dividends and $7,631 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. 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 Analytical Services, Inc. (Lipper), an independent service located in Summit, New Jersey that monitors the performance of mutual funds. Generally, Lipper rankings are based on total 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 funds 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 indices prepared by Lipper or other organizations. When comparing these indices, 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 a benchmark index representing the universe of securities in which the fund may invest. The total return of a benchmark index reflects reinvestment of all dividends and capital gains paid by securities included in the index. Unlike a fund's returns, however, the index 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 widely recognized, unmanaged index of common stocks. 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 your principal or your 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 indices. Fidelity funds may use the performance of these capital markets in order to demonstrate general risk-versus-reward investment scenarios. Performance comparisons may also include the value of a hypothetical investment in any of these capital markets. The risks associated with the security types in any capital market may or may not correspond directly to those of the funds. Ibbotson calculates total returns in the same method as the funds. The funds may also compare performance to that of other compilations or indices that may be developed and made available in the future. The money market fund may compare its performance or the performance of securities in which it may invest to averages published by IBC 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 over 885 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 total returns to those of a benchmark. Measures of benchmark correlation indicate how valid a comparative benchmark may be. All measures of volatility and correlation are calculated using averages of historical data. MOMENTUM INDICATORS indicate price movements over specific periods of time for each 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. A fund may be available for purchase through retirement plans or other programs offering deferral of, or exemption from, income taxes, which may produce superior after-tax returns over time. For example, a $1,000 investment earning a taxable return of 10% annually would have an after-tax value of $1,949 after ten years, assuming tax was deducted from the return each year at a 31% rate. An equivalent tax-deferred investment would have an after-tax value of $2,100 after ten years, assuming tax was deducted at a 31% rate from the tax-deferred earnings at the end of the ten-year period. As of February 28, 1998, FMR advised over $ 31 billion in tax-free fund assets, $ 102 billion in money market fund assets, $ 428 billion in equity fund assets, $ 75 billion in international fund assets, and $ 28 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 exemption 1 above) of such employer, maintained at least one employee benefit plan that qualified for exemption 1 and that had at least some portion of its assets invested in one or more mutual funds advised by FMR, or in one or more accounts or pools advised by Fidelity Management Trust Company; and (ii) 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 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 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. The stock funds' 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 Roth Conversion 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 .00 % sales charge upon purchase and a 1 .00 % deferred sales charge upon redemption, to a 3 .00 % sales charge upon purchase. If you purchased your shares prior to that date, when you redeem those shares a trading fee will be deducted and a deferred sales charge of 1 .00 % of this net redemption amount will be deducted. The deferred sales charge does not apply to exchanges between Select funds. Each fund is open for business and its net asset value per share (NAV) is calculated each day the New York Stock Exchange (NYSE) is open for trading. The NYSE has designated the following holiday closings for 1998: New Year's Day, Martin Luther King's Birthday, Presidents' Day, Good Friday, Memorial Day, Independence Day (observed), Labor Day, Thanksgiving Day, and Christmas Day. Although FMR expects the same holiday schedule to be observed in the future, the NYSE may modify its holiday schedule at any time. In addition, on days when the Federal Reserve Wire System is closed , federal funds wires cannot be sent. FSC normally determines each fund's NAV hourly, from 10:00 a.m. to 4:00 p.m., and the final determination of each fund's NAV will coincide with the close of the NYSE (normally 4:00 p.m. Eastern time). However, NAV may be calculated earlier if trading on the NYSE is restricted or as permitted by the SEC. To the extent that portfolio securities are traded in other markets on days when the NYSE is closed, a fund's NAV may be affected on days when investors do not have access to the fund to purchase or redeem shares. In addition, trading in some of a fund's portfolio securities may not occur on days when the fund is open for business. If the Trustees determine that existing conditions make cash payments undesirable, redemption payments may be made in whole or in part in securities or other property, valued for this purpose as they are valued in computing each fund's NAV. Shareholders receiving securities or other property on redemption may realize a gain or loss for tax purposes, and will incur any costs of sale, as well as the associated inconveniences. Pursuant to Rule 11a-3 under the 1940 Act, each fund is required to give shareholders at least 60 days' notice prior to terminating or modifying its exchange privilege. Under the Rule, the 60-day notification requirement may be waived if (i) the only effect of a modification would be to reduce or eliminate an administrative fee, redemption fee, or deferred sales charge ordinarily payable at the time of an exchange, or (ii) the fund suspends the redemption of the shares to be exchanged as permitted under the 1940 Act or the rules and regulations thereunder, or the fund to be acquired suspends the sale of its shares because it is unable to invest amounts effectively in accordance with its investment objective and policies. In the Prospectus, each fund has notified shareholders that it reserves the right at any time, without prior notice, to refuse exchange purchases by any person or group if, in FMR's judgment, the fund would be unable to invest effectively in accordance with its investment objective and policies, or would otherwise potentially be adversely affected. DISTRIBUTIONS AND TAXES DISTRIBUTIONS. If you request to have distributions mailed to you and the U.S. Postal Service cannot deliver your checks, or if your checks remain uncashed for six months, Fidelity may reinvest your distributions at the then-current NAV. All subsequent distributions will then be reinvested until you provide Fidelity with alternate instructions. DIVIDENDS. A portion of each stock 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, income from securities loans, non-qualifying dividends, and short-term capital gains, the percentage of dividends from the fund that qualifies for the deduction generally will be less than 100%. Each fund will notify corporate shareholders annually of the percentage of fund dividends that qualifies for the dividends-received deduction. A portion of each fund's dividends derived from certain U.S. Government securities may be exempt from state and local taxation. Gains (losses) attributable to foreign currency fluctuations are generally taxable as ordinary income, and therefore will increase (decrease) dividend distributions. If a fund's distributions exceed its net investment company taxable income during a taxable year, all or a portion of the distributions made in the same taxable year would be recharacterized as a return of capital to shareholders, thereby reducing each shareholder's cost basis in the fund. Short-term capital gains are distributed as dividend income. Each fund will send each shareholder a notice in January describing the tax status of dividends and capital gain distributions for the prior year. CAPITAL GAIN DISTRIBUTIONS. Long-term capital gains earned by each fund on the sale of securities and distributed to shareholders are federally taxable as long-term capital gains, regardless of the length of time shareholders have held their shares. If a shareholder receives a capital gain distribution on shares of a fund, and such shares are held six months or less and are sold at a loss, the portion of the loss equal to the amount of the capital gain distribution will be considered a long-term loss for tax purposes. Short-term capital gains distributed by each fund are taxable to shareholders as dividends, not as capital gains. The money market fund may distribute any net realized short-term capital gains once a year or more often as necessary, to maintain its NAV at $1.00. The money market fund does not anticipate distributing long-term capital gains. As of February 28, 1998, the following funds hereby designate a capital gain dividend for the purpose of the dividend-paid deduction: CAPITAL GAIN DIVIDEND FUND DOLLAR AMOUNT AUTOMOTIVE $ 5,569,000 BIOTECHNOLOGY $ 96,641,000 BROKERAGE AND INVESTMENT MANAGEMENT $ 7,149,000 CHEMICALS $ 8,702,000 COMPUTERS $ 24,534,000 CONSTRUCTION AND HOUSING $ 1,565,000 CONSUMER INDUSTRIES $ 209,000 DEFENSE AND AEROSPACE $ 962,000 DEVELOPING COMMUNICATIONS $ 7,828,000 ELECTRONICS $ 5,061,000 ENERGY $ 31,281,000 ENERGY SERVICE $ 68,493,000 FINANCIAL SERVICES $ 43,282,000 FOOD AND AGRICULTURE $ 23,192,000 HEALTH CARE $ 258,954,000 HOME FINANCE $ 125,545,000 INDUSTRIAL EQUIPMENT $ 3,438,000 INDUSTRIAL MATERIALS $ 1,320,000 INSURANCE $ 4,638,000 LEISURE $ 9,146,000 MEDICAL DELIVERY $ 28,321,000 MULTIMEDIA $ 4,042,000 NATURAL GAS $ 2,028,000 PAPER AND FOREST PRODUCTS $ 1,652,000 REGIONAL BANKS $ 35,016,000 RETAILING $ 2,429,000 SOFTWARE AND COMPUTER SERVICES $ 11,924,000 TECHNOLOGY $ 10,489,000 TELECOMMUNICATIONS $ 38,258,000 TRANSPORTATION $ 575,000 UTILITIES GROWTH $ 40,954,000 As of February 28, 1998, Precious Metals and Minerals Portfolio had a capital loss carryforward of approximately $57,071,000, of which $1,376,000 and $ 55,695,000 will expire on February 28, 2000 and 2006, respectively. As of February 28, 1998, Environmental Services Portfolio had a capital loss carryforward of approximately $155,000, all of which will expire on February 28, 2005. As of February 28, 1998, American Gold Portfolio had a capital loss carryforward of approximately $35,849,000, all of which will expire on February 28, 2006. As of February 28, 1998, Money Market Portfolio has a capital loss carryforward of approximately $5,400, all of which will expire on February 28, 2006. To the extent that capital loss carryforwards are used to offset any future capital gains, it is unlikely that the gains so offset will be distributed to shareholders since any such distributions may be taxable to shareholders as ordinary income. FOREIGN TAXES. Foreign governments may withhold taxes on dividends and interest paid with respect to foreign securities. Foreign governments may also impose taxes on other payments or gains with respect to foreign securities. Because each fund does not currently anticipate that securities of foreign issuers will constitute more than 50% of its total assets at the end of its fiscal year, shareholders should not expect to claim a foreign tax credit or deduction on their federal income tax returns with respect to foreign taxes withheld. TAX STATUS OF THE FUNDS. Each fund intends to qualify each year as a "regulated investment company" for tax purposes so that it will not be liable for federal tax on income and capital gains distributed to shareholders. In order to qualify as a regulated investment company and avoid being subject to federal income or excise taxes 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. Each fund is treated as a separate entity from the other funds, if any, of its trust for tax purposes. If a fund purchases shares in certain foreign investment entities, defined as passive foreign investment companies (PFICs) in the Internal Revenue Code, it may be subject to U.S. federal income tax on a portion of any excess distribution or gain from the disposition of such shares. I nterest charges may also be imposed on a fund with respect to deferred taxes arising from such distributions or gains. Generally, a fund will elect to mark-to-market any PFIC shares. U nrealized gains will be recognized as income for tax purposes and must be distributed to shareholders as dividends. 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. 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. FMR All of the stock of FMR is owned by FMR Corp., its parent organized in 1972. 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 investment personnel may invest in securities for their own accounts pursuant to a code of ethics that sets forth all employees' fiduciary responsibilities regarding the funds, establishes procedures for personal investing and restricts certain transactions. For example, all personal trades in most securities require pre-clearance, and participation in initial public offerings is prohibited. In addition, restrictions on the timing of personal investing in relation to trades by Fidelity funds and on short-term trading have been adopted. TRUSTEES AND OFFICERS The Trustees, Members of the Advisory Board, and executive officers of the trust are listed below. Except as indicated, each individual has held the office shown or other offices in the same company for the last five years. All persons named as Trustees and Members of the Advisory Board also serve in similar capacities for other funds advised by FMR. The business address of each Trustee, Member of the Advisory Board, and officer who is an "interested person" (as defined in the Investment Company Act of 1940) 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 (67), Trustee and President, is Chairman, Chief Executive Officer and a Director of FMR Corp.; a Director and Chairman of the Board and of the Executive Committee of FMR; Chairman and a Director of Fidelity Investments Money Management, Inc. (1998), Fidelity Management & Research (U.K.) Inc., and Fidelity Management & Research (Far East) Inc. J. GARY BURKHEAD (56), Member of the Advisory Board (1997), is Vice Chairman and a Member of the Board of Directors of FMR Corp. (1997) and President of Fidelity Personal Investments and Brokerage Group (1997). Previously, Mr. Burkhead served as President of Fidelity Management & Research Company. RALPH F. COX (64), 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 USA Waste Services, Inc. (non-hazardous waste, 1993), CH2M Hill Companies (engineering), Rio Grande, Inc. (oil and gas production), and Daniel Industries (petroleum measurement equipment manufacturer). In addition, he is a member of advisory boards of Texas A&M University and the University of Texas at Austin. PHYLLIS BURKE DAVIS (65), Trustee. Prior to her retirement in September 1991, Mrs. Davis was the Senior Vice President of Corporate Affairs of Avon Products, Inc. She is currently a Director of BellSouth Corporation (telecommunications), Eaton Corporation (manufacturing, 1991), and the TJX Companies, Inc. (retail stores), and previously served as a Director of Hallmark Cards, Inc. (1985-1991) and Nabisco Brands, Inc. In addition, she is a member of the President's Advisory Council of The University of Vermont School of Business Administration. ROBERT M. GATES (54), 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 Lucas Varity PLC (automotive components and diesel engines), Charles Shark Draper L aboratory (non-profit), NACCO Industries, Inc. (mining and manufacturing), and TRW Inc. (original equipment and replacement products). 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. E. BRADLEY JONES (70), Trustee. Prior to his retirement in 1984, Mr. Jones was Chairman and Chief Executive Officer of LTV Steel Company. He is a Director of TRW Inc. (original equipment and replacement products), Consolidated Rail Corporation, Birmingham Steel Corporation, and RPM, Inc. (manufacturer of chemical products), and he previously served as a Director of NACCO Industries, Inc. (mining and manufacturing, 1985-1995), Hyster-Yale Materials Handling, Inc. (1985-1995), and Cleveland-Cliffs Inc (mining), and as a Trustee of First Union Real Estate Investments. In addition, he serves as a Trustee of the Cleveland Clinic Foundation, where he has also been a member of the Executive Committee as well as Chairman of the Board and President, a Trustee and member of the Executive Committee of University School (Cleveland), and a Trustee of Cleveland Clinic Florida. DONALD J. KIRK (65), Trustee, is Executive-in-Residence (1995) at Columbia University Graduate School of Business and a financial consultant. 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 is a Director of General Re Corporation (reinsurance), and he previously served as a Director of Valuation Research Corp. (appraisals and valuations, 1993-1995). In addition, he serves as Chairman of the Board of Directors of the National Arts Stabilization Fund, Chairman of the Board of Trustees of the Greenwich Hospital Association, a Member 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). *PETER S. LYNCH (55), Trustee, is Vice Chairman and Director of FMR. 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 (64), Trustee (1997), is the Vice President of Finance for the University of North Carolina (16-school system, 1995). 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), Weeks Corporation of Atlanta (real estate, 1994), Carolina Power and Light Company (electric utility, 1996), and the Kenan Transport Co. (1996). Previously, he was a Director of First American Corporation (bank holding company, 1979-1996). In addition, Mr. McCoy serves as a member of the Board of Visitors for the University of North Carolina at Chapel Hill (1994) and for the Kenan-Flager Business School (University of North Carolina at Chapel Hill, 1988). GERALD C. McDONOUGH (69), Trustee and Chairman of the non-interested Trustees, is Chairman of G.M. Management Group (strategic advisory services). Mr. McDonough is a Director 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 (64), Trustee (1993) , is Chairman of the Board, President, and Chief Executive Officer of Lexmark International, Inc. (office machines, 1991). Prior to 1991, he held the positions of Vice President of International Business Machines Corporation ("IBM") and President and General Manager of various IBM divisions and subsidiaries. Mr. Mann is a Director of M.A. Hanna Company (chemicals, 1993), Imation Corp. (imaging and information storage, 1997), and Infomart (marketing services, 1991), a Trammell Crow Co. In addition, he serves as the Campaign Vice Chairman of the Tri-State United Way (1993) and is a member of the University of Alabama President's Cabinet. *ROBERT C. POZEN (51), Trustee (1997) and Senior Vice President, is also President and a Director of FMR (1997); and President and a Director of Fidelity Investments Money Management, Inc. (1998), Fidelity Management & Research (U.K.) Inc. (1997), and Fidelity Management & Research (Far East) Inc. (1997). Previously, Mr. Pozen served as General Counsel, Managing Director, and Senior Vice President of FMR Corp. THOMAS R. WILLIAMS (69), 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 ConAgra, Inc. (agricultural products), Georgia Power Company (electric utility), National Life Insurance Company of Vermont, American Software, Inc., and AppleSouth, Inc. (restaurants, 1992). BOYCE I. GREER (42), is 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). FRED L. HENNING, JR. (58), is Vice President of Fidelity's Fixed-Income Group (1995), Senior Vice President of FMR (1995), and Senior Vice President of FIMM (1998). Before assuming his current responsibilities, Mr. Henning was head of Fidelity's Money Market Division. ERIC D. ROITER (49), Secretary (1998), is Vice President (1998) and General Counsel of FMR (1998). Mr. Roiter was an Adjunct Member, Faculty of Law, at Columbia University Law School (1996-1997). Prior to joining Fidelity, Mr. Roiter was a partner at Debevoise & Plimpton (1981-1997) and served as an Assistant General Counsel of the U.S. Securities and Exchange Commission (1979-1981). JOHN J. TODD (49), is Vice President of Select Money Market Portfolio (1996), and other funds advised by FMR. Prior to his current responsibilities, Mr. Todd has managed a variety of Fidelity funds. RICHARD A. SILVER (50), Treasurer (1997), is Treasurer of the Fidelity funds and is an employee of FMR (1997). Before joining FMR, Mr. Silver served as Executive Vice President, Fund Accounting & Administration at First Data Investor Services Group, Inc. (1996-1997). Prior to 1996, Mr. Silver was Senior Vice President and Chief Financial Officer at The Colonial Group, Inc. Mr. Silver also served as Chairman of the Accounting/Treasurer's Committee of the Investment Company Institute (1987-1993). THOMAS D. MAHER (53), Assistant Vice President, is Assistant Vice President of Fidelity's Municipal Bond Funds (1996) and of Fidelity's Money Market Funds . JOHN H. COSTELLO (51), Assistant Treasurer, is an employee of FMR. LEONARD M. RUSH (52), Assistant Treasurer (1994), is an employee of FMR (1994). Prior to becoming Assistant Treasurer of the Fidelity funds, Mr. Rush was Chief Compliance Officer of FMR Corp. (1993-1994) and Chief Financial Officer of Fidelity Brokerage Services, Inc. (1990-1993). THOMAS J. SIMPSON (39), Assistant Treasurer, is Assistant Treasurer of Fidelity's M unicipal B ond F unds (1996) and of Fidelity's M oney M arket F unds (1996) 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 28, 1998 or calendar year ended December 31, 1997, as applicable. COMPENSATION TABLE
AGGREGATE COMPENSATION FROM A FUNDA J. Gary Ralph Phyllis Robert Edward E. Donald Peter William Gerald Marvin Robert Thomas Burkhead F. Burke M. C. Bradley J. S. O. McCoy C. L. C. R. ** Cox Davis Gates Johnson Jones Kirk Lynch** **** McDonough Mann Pozen** Williams *** 3d** Air Transportation B $ 0 $ 22 $ 22 $ 23 $ 0 $ 22 $ 22 $ 0 $ 23 $ 28 $ 22 $ 0 $ 22 American Gold B $ 0 $ 119 $ 117 $ 122 $ 0 $ 118 $ 118 $ 0 $ 123 $ 147 $ 118 $ 0 $ 119 Automotive B $ 0 $ 28 $ 27 $ 28 $ 0 $ 27 $ 27 $ 0 $ 28 $ 34 $ 27 $ 0 $ 28 Biotechnology B $ 0 $ 239 $ 235 $ 243 $ 0 $ 237 $ 237 $ 0 $ 245 $ 296 $ 236 $ 0 $ 239 Brokerage and $ 0 $ 158 $ 156 $ 160 $ 0 $ 157 $ 157 $ 0 $ 161 $ 196 $ 155 $ 0 $ 158 Investment Management B Business Services $ 0 $ 5 $ 5 $ 4 $ 0 $ 5 $ 5 $ 0 $ 5 $ 6 $ 5 $ 0 $ 5 and Outsourcing B,+ Chemicals B $ 0 $ 36 $ 35 $ 36 $ 0 $ 35 $ 35 $ 0 $ 37 $ 44 $ 35 $ 0 $ 36 Computers B $ 0 $ 266 $ 261 $ 270 $ 0 $ 263 $ 263 $ 0 $ 272 $ 329 $ 262 $ 0 $ 266 Construction and $ 0 $ 10 $ 10 $ 11 $ 0 $ 10 $ 10 $ 0 $ 11 $ 13 $ 10 $ 0 $ 10 Housing B Consumer $ 0 $ 9 $ 9 $ 9 $ 0 $ 9 $ 9 $ 0 $ 9 $ 11 $ 9 $ 0 $ 9 Industries B Cyclical $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Industries B Defense and $ 0 $ 25 $ 25 $ 26 $ 0 $ 25 $ 25 $ 0 $ 26 $ 31 $ 25 $ 0 $ 25 Aerospace B Developing $ 0 $ 97 $ 96 $ 99 $ 0 $ 96 $ 96 $ 0 $ 99 $ 120 $ 96 $ 0 $ 97 Communications B Electronics B $ 0 $ 934 $ 922 $ 949 $ 0 $ 928 $ 928 $ 0 $ 956 $ 1,159 $ 922 $ 0 $ 934 Energy B $ 0 $ 81 $ 80 $ 83 $ 0 $ 81 $ 81 $ 0 $ 84 $ 101 $ 80 $ 0 $ 81 Energy Service B $ 0 $ 368 $ 365 $ 373 $ 0 $ 367 $ 367 $ 0 $ 375 $ 459 $ 362 $ 0 $ 368 Environmental $ 0 $ 12 $ 10 $ 10 $ 0 $ 10 $ 10 $ 0 $ 11 $ 13 $ 11 $ 0 $ 12 Services B Financial Services B $ 0 $ 184 $ 182 $ 187 $ 0 $ 183 $ 183 $ 0 $ 189 $ 228 $ 182 $ 0 $ 184 Food and $ 0 $ 99 $ 98 $ 101 $ 0 $ 98 $ 98 $ 0 $ 101 $ 123 $ 97 $ 0 $ 99 Agriculture B Health Cares B, C,D $ 0 $ 617 $ 609 $ 629 $ 0 $ 613 $ 613 $ 0 $ 633 $ 765 $ 608 $ 0 $ 617 Home Finance B $ 0 $ 518 $ 512 $ 527 $ 0 $ 515 $ 515 $ 0 $ 530 $ 643 $ 510 $ 0 $ 518 Industrial $ 0 $ 27 $ 26 $ 27 $ 0 $ 27 $ 27 $ 0 $ 28 $ 33 $ 27 $ 0 $ 27 Equipment B Industrial $ 0 $ 14 $ 14 $ 15 $ 0 $ 14 $ 14 $ 0 $ 15 $ 18 14 $ 0 $ 14 Materials B Insurance B $ 0 $ 41 $ 40 $ 41 $ 0 $ 41 $ 41 $ 0 $ 41 $ 51 40 $ 0 $ 41 Leisure B $ 0 $ 53 $ 52 $ 53 $ 0 $ 52 $ 52 $ 0 $ 54 $ 65 $ 51 $ 0 $ 53 Medical Delivery B $ 0 $ 66 $ 65 $ 67 $ 0 $ 66 $ 66 $ 0 $ 68 $ 82 $ 65 $ 0 $ 66 Medical Equipment $ 0 $ 5 $ 5 $ 4 $ 0 $ 5 $ 5 $ 0 $ 5 $ 6 $ 5 $ 0 $ 5 and SystemsB,+ Multimedia B $ 0 $ 22 $ 22 $ 23 $ 0 $ 22 $ 22 $ 0 $ 23 $ 27 $ 22 $ 0 $ 22 Natural Gas B $ 0 $ 35 $ 34 $ 35 $ 0 $ 34 $ 34 $ 0 $ 36 $ 43 $ 34 $ 0 $ 35 Natural Resources B $ 0 $ 1 $ 1 $ 1 $ 0 $ 1 $ 1 $ 0 $ 1 $ 1 $ 1 $ 0 $ 1 Paper and Forest $ 0 $ 9 $ 9 $ 9 $ 0 $ 9 $ 9 $ 0 $ 9 $ 11 $ 9 $ 0 $ 9 Products B Precious Metals $ 0 $ 84 $ 82 $ 85 $ 0 $ 83 $ 83 $ 0 $ 86 $ 103 $ 83 $ 0 $ 84 and Minerals B Regional Banks B $ 0 $ 398 $ 393 $ 405 $ 0 $ 396 $ 396 $ 0 $ 407 $ 493 $ 391 $ 0 $ 398 Retailing B $ 0 $ 58 $ 57 $ 59 $ 0 $ 58 $ 58 $ 0 $ 59 $ 72 $ 56 $ 0 $ 58 Software and $ 0 $ 174 $ 172 $ 177 $ 0 $ 173 $ 173 $ 0 $ 179 $ 216 $ 172 $ 0 $ 174 Computer Services B Technology B $ 0 $ 219 $ 216 $ 223 $ 0 $ 218 $ 218 $ 0 $ 225 $ 272 $ 217 $ 0 $ 219 Telecommunications $ 0 $ 162 $ 159 $ 164 $ 0 $ 160 $ 160 $ 0 $ 165 $ 200 $ 159 $ 0 $ 162 B Transportation B $ 0 $ 21 $ 21 $ 21 $ 0 $ 21 $ 21 $ 0 $ 22 $ 26 $ 21 $ 0 $ 21 Utilities Growth B $ 0 $ 106 $ 105 $ 108 $ 0 $ 106 $ 106 $ 0 $ 109 $ 132 $ 105 $ 0 $ 106 Money Market B $ 0 $ 336 $ 331 $ 342 $ 0 $ 333 $ 333 $ 0 $ 345 $ 418 331 $ 0 $ 336 TOTAL $ 0 $ 214,500 $ 210,000 $ 176,000 $ 0 $211,500 $ 211,500 $ 0 $ 214,500 $ 264,500 $214,500 $ 0 $214,500 COMPENSATION FROM THE FUND COMPLEX*,A
* Information is for the calendar year ended December 31, 1997 for 230 funds in the complex. ** Interested Trustees of the funds and Mr. Burkhead are compensated by FMR. ** Mr. Gates was appointed to the Board of Trustees effective March 1, 1997. **** Mr. McCoy was appointed to the Board of Trustees effective January 1, 1997. + Estimated 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, 1997, the Trustees accrued required deferred compensation from the funds as follows: Ralph F. Cox, $75,000 ; Phyllis Burke Davis , $75,000 ; Robert M. Gates $62,500 ; 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, $53,699; Marvin L. Mann, $53,699; and Thomas R. Williams, $62,462. 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, $292; Phyllis Burke Davis, $292; Robert M. Gates, $296; E. Bradley Jones, $292; Donald J. Kirk, $292; William O. McCoy, $296; Gerald C. Mc Donough, $340 ; Marvin L. Mann, $292 ; and Thomas R. Williams, $2 92 . D Certain of the non-interested Trustees' aggregate compensation from a fund includes accrued voluntary deferred compensation as follows: Cox, $244, Healthcare; McCoy, $41, Healthcare; Mann, $244, Healthcare; and Williams, $244, Healthc are. Under a deferred compensation plan adopted in September 1995 and amended in November 1996 (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 subject to vesting and 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 28, 1998, approximately 7.32% of Select Business Services & Outsourcing's total outstanding shares was held by an FMR affiliate, approximately 14.51% of Select Natural Resources's total outstanding shares was held by an FMR affiliate, and approximately 31.32% of Select Cyclical Industries's total outstanding shares was held by an FMR affiliate. As of the public offering of shares of Select Medical Equipment and Systems, 100% of the fund's total outstanding shares was held by an FMR affiliate. FMR Corp. is the ultimate parent company of FMR and this FMR affiliate. By virtue of his ownership interest in FMR Corp., as described in the "FMR" section on page 69, Mr. Edward C. Johnson 3d, President and Trustee 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 deemed ownership of Select Business Services & Outsourcing, Select Medical Equipment and Systems, Select Natural Resources, and Select Cyclical Industries's shares, the Trustees, Members 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 28, 1998, the following owned of record or beneficially 5% or more of a fund's outstanding shares: Fidelity Select Computer: National Financial Services Corporation, Boston, MA (14.88%). Fidelity Select Food & Agriculture: National Financial Services Corporation, Boston, MA (19.87%). Fidelity Select Air Transportation: National Financial Services Corporation, Boston, MA (35.41%); First Trust Corporation, Denver, CO (13.07%). Fidelity Select Energy: National Financial Services Corporation, Boston, MA (19.14%). Fidelity Select Precious Metals: National Financial Services Corporation, Boston, MA (16.15%). Fidelity Select Technology: National Financial Services Corporation, Boston, MA (21.73%). Fidelity Select Utilities Growth: National Financial Services Corporation, Boston, MA (13.39%). Fidelity Select Financial Services: National Financial Services Corporation, Boston, MA (20.47%). Fidelity Select Brokerage & Investment Mgmt.: National Financial Services Corporation, Boston, MA (16.13%). Fidelity Select Chemical: National Financial Services Corporation, Boston, MA (22.34%). Fidelity Select Money Market: National Financial Services Corporation, Boston, MA (5.94%). Fidelity Select Telecommunications: National Financial Services Corporation, Boston, MA (22.68%). Fidelity Select American Gold: National Financial Services Corporation, Boston, MA (16.16%). Fidelity Select Energy Services: National Financial Services Corporation, Boston, MA (5.29%). Fidelity Select Retailing: National Financial Services Corporation, Boston, MA (26.99%); First Trust Corporation, Denver, CO (9.60%). Fidelity Select Business Services & Outsourcing: National Financial Services Corporation, Boston, MA (46.18%); FMR Capital, Boston, MA (7.32%); Newell V. Risdall, Rapid City, SD (10.96%). Fidelity Select Automotive: National Financial Services Corporation, Boston, MA (20.72%); First Trust Corporation, Denver, CO (7.18%). Fidelity Select Insurance: National Financial Services Corporation, Boston, MA (33.47%). Fidelity Select Defense & Aerospace: National Financial Services Corporation, Boston, MA (39.56%). Fidelity Select Leisure: National Financial Services Corporation, Boston, MA (29.85%). Fidelity Select Software & Computers: National Financial Services Corporation, Boston, MA (26.43%). Fidelity Select Multimedia: National Financial Services Corporation, Boston, MA (36.71%). Fidelity Select Medical Delivery: National Financial Services Corporation, Boston, MA (24.79%). Fidelity Select Paper & Forest Products: National Financial Services Corporation, Boston, MA (68.67%). Fidelity Select Industrial Materials: National Financial Services Corporation, Boston, MA (23.47%); Charles Schwab & Co., San Francisco, CA (6.05%). Fidelity Select Industrial Equipment: National Financial Services Corporation, Boston, MA (28.20%). Fidelity Select Construction & Housing: National Financial Services Corporation, Boston, MA (34.64%); First Trust Corporation, Denver, CO (5.73%). Fidelity Select Transportation: National Financial Services Corporation, Boston, MA (38.67%). Fidelity Select Natural Gas: National Financial Services Corporation, Boston, MA (22.80%). Fidelity Select Natural Resources: National Financial Services Corporation, Boston, MA (49.54%); FMR Capital, Boston, MA (14.51%). Fidelity Select Cyclical Industries: National Financial Services Corporation, Boston, MA (56.53%); FMR Capital, Boston, MA (31.32%). Fidelity Select Environmental Services: National Financial Services Corporation, Boston, MA (19.15%). Fidelity Select Consumer Industries: National Financial Services Corporation, Boston, MA (39.05%). Fidelity Select Developing Communications: National Financial Services Corporation, Boston, MA (27.38%). A shareholder owning of record or beneficially 25% or more 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. MANAGEMENT CONTRACTS FMR is manager of the stock funds (except Business Services and Outsourcing, Cyclical Industries, Medical Equipment and Systems and Natural Resources) and the money market fund pursuant to management contracts dated March 1, 1994, which were approved by shareholders on February 16, 1994. FMR is manager of Cyclical Industries and Natural Resources pursuant to management contracts dated January 16, 1997, which were approved by FMR, then sole shareholder, on February 14, 1997. FMR is manager of Business Services and Outsourcing and Medical Equipment and Systems pursuant to management contracts dated December 18, 1997, which were approved by FMR, as the then sole shareholder, on January 21, 1998 for Business Services and Outsourcing and April 24, 1998 for Medical Equipment and Systems. MANAGEMENT SERVICES. Each fund employs FMR to furnish investment advisory and other 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 securities lending agent, 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, the money market fund pays FMR a monthly management fee which has three components: a group fee rate, an individual fund fee rate (0.03%), and an income-based component of 6% of the fund's gross income in excess of a 5% yield. The maximum income-based component is 0.24% of the fund's average net assets. The group fee rate is based on the monthly average net assets of all of the registered investment companies with which FMR has management contracts. The following is the fee schedule for the money market fund. MONEY MARKET FUND GROUP FEE RATE SCHEDULE EFFECTIVE ANNUAL FEE RATES Average Group Annualized Group Net Effective Annual Assets Rate Assets Fee Rate 0 - $3 billion .3700% $ 0.5 billion .3700% 3 - 6 .3400 25 .2664 6 - 9 .3100 50 .2188 9 - 12 .2800 75 .1986 12 - 15 .2500 100 .1869 15 - 18 .2200 125 .1793 18 - 21 .2000 150 .1736 21 - 24 .1900 175 .1695 24 - 30 .1800 200 .1658 30 - 36 .1750 225 .1629 36 - 42 .1700 250 .1604 42 - 48 .1650 275 .1583 48 - 66 .1600 300 .1565 66 - 84 .1550 325 .1548 84 - 120 .1500 350 .1533 120 - 174 .1450 400 .1507 174 - 228 .1400 228 - 282 .1375 282 - 336 .1350 Over 336 .1325 Prior to March 1, 1994, the group fee rate was based on a schedule with breakpoints ending at 0.1500% for average group assets in excess of $84 billion. The group fee rate breakpoints shown above for average group assets in excess of $120 billion and under $228 billion were voluntarily adopted by FMR on January 1, 1992. The additional breakpoints shown above for average group assets in excess of $228 billion were voluntarily adopted by FMR on November 1, 1993. The fund's current management contract reflects these extensions of the group fee rate schedule. On August 1, 1994, FMR voluntarily revised the prior extensions to the group fee rate schedule, and added new breakpoints for average group assets in excess of $156 billion and under $372 billion as shown in the schedule below. The revised group fee rate schedule is identical to the above schedule for average group assets under $156 billion. On January 1, 1996, FMR voluntarily added new breakpoints to the revised schedule for average group assets in excess of $372 billion, pending shareholder approval of a new management contract reflecting the revised schedule and additional breakpoints. The revised group fee rate schedule and its extensions provide for lower management fee rates as FMR's assets under management increase. For average group assets in excess of $156 billion, the revised group fee rate schedule with additional breakpoints voluntarily adopted by FMR is as follows: GROUP FEE RATE SCHEDULE EFFECTIVE ANNUAL FEE RATES Average Group Annualized Group Net Effective Annual Assets Rate Assets Fee Rate 120 - $156 billion .1450% $ 150 billion .1736% 156 - 192 .1400 175 .1690 192 - 228 .1350 200 .1652 228 - 264 .1300 225 .1618 264 - 300 .1275 250 .1587 300 - 336 .1250 275 .1560 336 - 372 .1225 300 .1536 372 - 408 .1200 325 .1514 408 - 444 .1175 350 .1494 444 - 480 .1150 375 .1476 480 - 516 .1125 400 .1459 Over 516 .1100 425 .1443 450 .1427 475 .1413 500 .1399 525 .1385 550 .1372 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 $583 billion of group net assets - the approximate level for February 1998 - was 0.1357%, which is the weighted average of the respective fee rates for each level of group net assets up to $583 billion. 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 money market fund's average net assets for the current month, giving a dollar amount which is the fee for that month. If the money market fund's monthly gross yield is 5% or less, the total management fee is the sum of the group fee and the individual fund fee. If the money market fund's monthly gross yield is greater than 5%, the management fee that FMR receives includes an income-based component. The income-based component equals 6% of that portion of the fund's gross income that represents a gross yield of more than 5% per year. The maximum income-based component is 0.24% (annualized) of average net assets, at a fund gross yield of 9% or more. Gross income for this purpose, includes interest accrued and/or discount earned (including both original issue discount and market discount) on portfolio obligations, less amortization of premium. Realized and unrealized gains and losses, if any, are not included in gross income. 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. 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 stock funds (except Business Services and Outsourcing, Cyclical Industries, Medical Equipment and Systems, and Natural Resources). STOCK FUNDS GROUP FEE RATE SCHEDULE EFFECTIVE ANNUAL FEE RATES Average Group Annualized Group Net Effective Annual Assets Rate Assets Fee Rate 0 - $3 billion .5200% $ 0.5 billion .5200% 3 - 6 .4900 25 .4238 6 - 9 .4600 50 .3823 9 - 12 .4300 75 .3626 12 - 15 .4000 100 .3512 15 - 18 .3850 125 .3430 18 - 21 .3700 150 .3371 21 - 24 .3600 175 .3325 24 - 30 .3500 200 .3284 30 - 36 .3450 225 .3253 36 - 42 .3400 250 .3223 42 - 48 .3350 275 .3198 48 - 66 .3250 300 .3175 66 - 84 .3200 325 .3153 84 - 102 .3150 350 .3133 102 - 138 .3100 138 - 174 .3050 174 - 228 .3000 228 - 282 .2950 282 - 336 .2900 Over 336 .2850 Prior to March 1, 1994, the group fee rate was based on a schedule with breakpoints ending at 0.3100% for average group assets in excess of $102 billion. The group fee rate breakpoints shown above for average group assets in excess of $138 billion and under $228 billion were voluntarily adopted by FMR on January 1, 1992. The additional breakpoints shown above for average group assets in excess of $228 billion were voluntarily adopted by FMR on November 1, 1993. Each fund's current management contract reflects these extensions of the group fee rate schedule. On August 1, 1994, FMR voluntarily revised the prior extensions to the group fee rate schedule, and added new breakpoints for average group assets in excess of $210 billion and under $390 billion as shown in the schedule below. The revised group fee rate schedule was identical to the above schedule for average group assets under $210 billion. On January 1, 1996, FMR voluntarily added new breakpoints to the revised schedule for average group assets in excess of $390 billion, pending shareholder approval of a new management contract reflecting the revised schedule and additional breakpoints. The revised group fee rate schedule and its extensions provide for lower management fee rates as FMR's assets under management increase. For average group assets in excess of $210 billion, the revised group fee rate schedule with additional breakpoints voluntarily adopted by FMR is as follows: GROUP FEE RATE SCHEDULE EFFECTIVE ANNUAL FEE RATES Average Group Annualized Group Net Effective Annual Assets Rate Assets Fee Rate $138 - $174 billion .3050% $150 billion .3371% 174 - 210 .3000 175 .3325 210 - 246 .2950 200 .3284 246 - 282 .2900 225 .3249 282 - 318 .2850 250 .3219 318 - 354 .2800 275 .3190 354 - 390 .2750 300 .3163 390 - 426 .2700 325 .3137 426 - 462 .2650 350 .3113 462 - 498 .2600 375 .3090 498 - 534 .2550 400 .3067 Over 534 .2500 425 .3046 450 .3024 475 .3003 500 .2982 525 .2962 550 .2942 The group fee rate schedule for Business Services and Outsourcing, Cyclical Industries, Medical Equipment and Systems, and Natural Resources is as follows: GROUP FEE RATE SCHEDULE EFFECTIVE ANNUAL FEE RATES Average Group Annualized Group Net Effective Annual Fee Assets Rate Assets Rate 0 - $3 billion .5200% $ 0.5 billion .5200% 3 - 6 .4900 25 .4238 6 - 9 .4600 50 .3823 9 - 12 .4300 75 .3626 12 - 15 .4000 100 .3512 15 - 18 .3850 125 .3430 18 - 21 .3700 150 .3371 21 - 24 .3600 175 .3325 24 - 30 .3500 200 .3284 30 - 36 .3450 225 .3249 36 - 42 .3400 250 .3219 42 - 48 .3350 275 .3190 48 - 66 .3250 300 .3163 66 - 84 .3200 325 .3137 84 - 102 .3150 350 .3113 102 - 138 .3100 375 .3090 138 - 174 .3050 400 .3067 174 - 210 .3000 425 .3046 210 - 246 .2950 450 .3024 246 - 282 .2900 475 .3003 282 - 318 .2850 500 .2982 318 - 354 .2800 525 .2962 354 - 390 .2750 550 .2942 390 - 426 .2700 426 - 462 .2650 462 - 498 .2600 498 - 534 .2550 Over 534 .2500 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 $ 583 billion of group net assets - the approximate level for February 1998 - was 0.2917 %, which is the weighted average of the respective fee rates for each level of group net assets up to $ 583 billion. The stock funds ' individual fund fee rate is 0.30 %. Based on the average group net assets of the funds advised by FMR for February 1998, each stock fund's annual management fee rate would be calculated as follows: Group Fee Rate Individual Fund Fee Rate Management Fee Rate 0. 2917% + 0.30% = 0.5917 % One-twelfth of this annual management fee rate is applied to each stock fund's net assets averaged for the most recent month, giving a dollar amount, which is the fee for that month. 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 Management Fees February 28/29 Paid to FMR Air Transportation 1998 $ 378,349 1997 $ 539,940 1996 $ 425,938 American Gold 1998 $ 1,664,398 1997 $ 2,501,556 1996 $ 2,155,590 Automotive 1998 $ 369,375 1997 $ 726,743 1996 $ 363,327 Biotechnology 1998 $ 3,442,469 1997 $ 4,324,960 1996 $ 3,676,822A Brokerage and Investment Management 1998 $ 2,493,991 1997 $ 448,938 1996 $ 204,478A Business Services and Outsourcing 1998 * $ 2,948 Chemicals 1998 $ 496,851 1997 $ 745,680 1996 $ 481,260 Computers 1998 $ 3,921,116 1997 $ 3,309,228 1996 $ 2,922,505 Construction and Housing 1998 $ 155,730 1997 $ 408,988 1996 $ 258,650 Consumer Industries 1998 $ 161,119 1997 $ 154,434 1996 $ 219,534A Cyclical Industries 1998 ** $ 21,141 Defense and Aerospace 1998 $ 381,060 1997 $ 268,010 1996 $ 131,560A Developing Communications 1998 $ 1,420,790 1997 $ 1,856,888 1996 $ 2,034,963 Electronics 1998 $ 14,146,742 199 7 $ 7,859,173 1996 $ 5,626,255 Energy 1998 $ 1,137,325 1997 $ 1,066,783 1996 $ 691,768 Energy Service 1998 $ 5,735,646 1997 $ 2,790,650 1996 $ 983,400 Fund Fiscal Years Ended Management Fees February 28/29 Paid to FMR Environmental Services 1998 $ 165,498 1997 $ 252,081 1996 $ 195,326 Financial Services 1998 $ 2,799,557 1997 $ 1,661,452 1996 $ 1,203,738 Food and Agriculture 1998 $ 1,473,308 1997 $ 1,682,437 1996 $ 1,286,233 Health Care 1998 $ 9,512,189 1997 $ 7,661,331 1996 $ 6,868,340 Home Finance 1998 $ 7,971,664 1997 $ 4,201,147 1996 $ 2,401,434 Industrial Equipment 1998 $ 358,194 1997 $ 560,442 1996 $ 623,645 Industrial Materials 1998 $ 178,398 1997 $ 590,927 1996 $ 777,296 Insurance 1998 $ 657,447 1997 $ 204,881 1996 $ 129,061 Leisure 1998 $ 853,326 1997 $ 643,761 1996 $ 486,216 Medical Delivery 1998 $ 949,169 1997 $ 1,307,251 1996 $ 1,208,374 Money Market 1998 $ 1,715,272 1997 $ 1,584,080 1996 $ 1,558,005 Multimedia 1998 $ 355,794 1997 $ 513,562 1996 $ 587,354 Natural Gas 1998 $ 489,011 1997 $ 679,330 1996 $ 431,858 Natural Resources 1998 ** $ 38,241 Paper and Forest Products 1998 $ 144,890 1997 $ 194,763 1996 $ 355,643 Precious Metals and Minerals 1998 $ 1,160,570 1997 $ 2,005,219 1996 $ 2,345,736 Regional Banks 1998 $ 6,188,500 1997 $ 2,534,699 1996 $ 1,410,233 Fund Fiscal Years Ended Management Fees February 28/29 Paid to FMR Retailing 1998 $ 911,425 1997 $ 1,338,783 1996 $ 226,958 Software and Computer Services 1998 $ 2,593,824 1997 $ 2,546,782 1996 $ 1,899,182 Technology 1998 $ 3,293,787 1997 $ 2,800,144 1996 $ 2,349,322 Telecommunications 1998 $ 2,473,329 1997 $ 2,878,937 1996 $ 2,590,151 Transportation 1998 $ 341,054 1997 $ 50,368 1996 $ 51,516A Utilities Growth 1998 $ 1,639,699 1997 $ 1,440,039 1996 $ 1,615,924 A During the period, FMR issued a one time credit reducing management fees. The amount of the credit issued to the respective funds was: Biotechnology $503,762; Brokerage and Investment Management $79,974; Consumer Industries $22,835 Defense and Aerospace $24,455; and Transportation $7,559. * Business Services and Outsourcing commenced operations of February 4, 1998. ** Cyclical Industries and Natural Resources commenced operations on March 3, 1997. FMR may, from time to time, voluntarily reimburse all or a portion of a fund's expenses (exclusive of interest, taxes, brokerage commissions, and extraordinary expenses). 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 total returns and yield, and repayment of the reimbursement by a fund will lower its total returns and yield. During the past three fiscal periods, FMR voluntarily agreed, subject to revision or termination, 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 tables below show 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.
Name of Fund Periods of Aggregate Fiscal Years Management Fee Amount of Expense Limitation Operating Ended Before Management Fee From To Expense February 28/29 Reimbursement Reimbursement Limitation Construction and March 1, February 28, 2.50% 1998 $ 155,730 $ 9,992 Housing 1997 1998 Cyclical March 1, February 28, 2.50% 1998 $ 21,14 1 $ 21,141 Industries 1997 1998 Natural March 1, February 28, 2.50% 1998 $ 38,241 $ 38,241 Resources 1997 1998 Business Service February 4, February 28, 2.50% 1998 $ 2,948 $ 2,948 and Outsourcing 1998 1998 Transportation March 1, February 28, 2.50% 1997 $ 75,979 $ 25,611 1996 1997 March 1, February 29, 2.50% 1996 $ 66,606 $ 15,090 1995 1996
SUB-ADVISER. 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 providing portfolio investment management services to the fund. Under the terms of the sub-advisory agreement, FMR pays FIMM fees equal to 50% of the management fee payable to FMR under its management contract with the money market 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 years ended February 28, 1998, February 28, 1997, and February 29, 1996, FMR paid FMR Texas Inc. (FMR Texas), the predecessor company to FIMM, fees of $857,636, $792,040 and $779,003, respectively. On behalf of the stock funds (except American Gold Portfolio), FMR has entered into sub-advisory agreements with FMR U.K. and FMR Far East. Pursuant to the sub-advisory agreements, FMR may receive investment advice and research services outside the United States from the sub-advisers. On behalf of the stock funds (except American Gold Portfolio), FMR may also 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. Currently, FMR U.K. and FMR Far East each focus on issuers in countries other than the United States such as those in Europe, Asia, and the Pacific Basin. FMR U.K. and FMR Far East, which were organized in 1986, are wholly owned subsidiaries of FMR. Under the sub-advisory agreements FMR pays the fees of FMR U.K. and FMR Far East. For providing non-discretionary investment advice and research services, FMR pays FMR U.K. and FMR Far East fees equal to 110% and 105%, respectively, of FMR U.K.'s and FMR Far East's costs incurred in connection with providing investment advice and research services. On behalf of each stock fund (except American Gold Portfolio) for providing discretionary investment management and executing portfolio transactions, FMR pays FMR U.K. and FMR Far East a fee equal to 50 % of its monthly management fee rate with respect to each fund's (except American Gold Portfolio) average net assets managed by the sub-adviser on a discretionary basis. For providing investment advice and research services, fees paid to the sub-advisers by FMR on behalf of the f un d s for the past three fiscal years are shown in the table below. FEES PAID BY FMR TO FOREIGN SUB-ADVISERS
FUND FEES PAID BY FMR TO FMR U.K. FEES PAID BY FMR TO FMR FAR EAST
1998 1997 1996 1998 1997 1996 Air Transportation $ 3,327 $ 1,385 $ 7,281 $ 3,202 $ 1,429 $ 7,977 Automotive 4,434 16,190 2,829 4,325 14,746 3,065 Biotechnology 11,836 57,555 43,136 10,833 55,421 45,732 Brokerage and Investment Management 13,584 1,593 1,737 13,185 1,549 1,873 Business Services and Outsourcing 6* -- -- 5 * -- -- Chemicals 5,873 11,460 4,067 5,590 11,730 4,360 Computers 15,517 14,494 44,800 15,486 14,124 48,650 Construction and Housing 6 463 0 5 439 0 Consumer Industries 474 190 477 455 189 521 Cyclical Industries 40 ** -- -- 40 ** -- -- Defense and Aerospace 1,692 928 323 1,755 853 367 Developing Communications 19,094 16,341 31,635 18,708 15,580 35,287 Electronics 147,596 26,600 50,403 143,650 22,356 59,693 Energy 25,414 27,154 14,746 24,716 25,283 15,810 Energy Service 51,145 26,346 8,516 49,720 25,339 9,360 Environmental Services 2,414 1,352 1,469 2,242 1,317 1,640 Financial Services 439 0 0 424 0 0 Food and Agriculture 5,707 1,856 2,915 5,521 1,799 3,087 Health Care 96,459 140,931 62,044 95,116 132,786 66,180 Home Finance 14,065 13,987 0 13,533 12,464 0 Industrial Equipment 736 1,764 787 746 1,518 907 Industrial Materials 1,579 12,985 10,004 1,540 12,586 11,002 Insurance 770 153 34 746 146 40 Leisure 1,740 2,080 5,700 1,685 1,990 6,340 Medical Delivery 216 741 0 187 642 0 Multimedia 711 3,001 6,935 694 2,963 7,504 Natural Gas 182 786 1,012 154 660 1,005 Natural Resources 559 ** -- -- 554 ** -- -- Paper and Forest Products 809 1,218 2,270 772 1,118 2,457 Precious Metals and Minerals 42,196 104,793 118,405 40,224 101,856 126,271 Regional Banks 6,772 2,772 0 6,544 2,458 0 Retailing 0 1,846 585 0 1,805 632 Software and Computer Services 14,371 16,414 5,397 13,791 15,288 6,305 Technology 23,941 16,385 36,101 25,181 14,600 39,503 Telecommunications 37,699 24,984 53,688 36,443 25,546 57,717 Transportation 571 563 289 575 539 310 Utilities Growth 3,855 3,110 4,286 3,672 3,012 4,379
* Business Services and Outsourcing commenced operations of February 4, 1998. ** Cyclical Industries and Natural Resources commenced operations on March 3, 1997. For discretionary investment management and execution of portfolio transactions, no fees were paid to the sub-advisers by FMR on behalf of the funds for the past three fiscal years. CONTRACTS WITH FMR AFFILIATES 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 (i.e., omnibus or non-omnibus) and, for non-omnibus account s , fund type. The a ccount 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 collects a $7.50 exchange fee for each exchange from a stock fund, including cash exchange from a stock fund to another Fidelity fund. FSC also collects small account fees from certain accounts with balances of less than $2,500. In addition, FSC receives the pro rata portion of the transfer agency fees applicable to shareholder accounts in each Fidelity Freedom Fund, a fund of funds managed by an FMR affiliate, according to the percentage of the Freedom Fund's assets that is invested in a 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 the 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 through out the month. The annual fee rates for pricing and bookkeeping services are 0.0175% for the money market fund and 0.1000% for each stock fund of the first $500 million of average net assets and 0.0075% for the money market fund and 0.0500% for each stock fund of average net assets in excess of $500 million. The fee, not including reimbursement for out-of-pocket expenses, is limited to a minimum of $40,000 for the money market fund and a minimum of $60,000 for each stock fund, and a maximum of $800,000 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. PRICING AND BOOKKEEPING FEES FISCAL 1998 FISCAL 1997 FISCAL 1996
Air Transportation $ 73,865 $ 92,138 $ 73,290 American Gold 280,044 416,410 351,847 Automotive 65,849 120,805 60,082 Biotechnology 538,574 612,580 527,898 Brokerage and Investment Management 404,906 88,697 47,818 Business Services and Outsourcing 5,000* N/A N/A Chemicals 83,611 123,784 78,925 Computers 578,646 520,629 454,150 Construction and Housing 60,209 76,325 49,539 Consumer Industries 61,506 60,450 59,535 Cyclical Industries 59,755** N/A N/A Defense and Aerospace 68,287 61,443 47,698 Developing Communications 239,077 308,377 333,332 Electronics 802,315 799,758 651,136 Energy 191,416 177,681 112,800 Energy Service 680,412 445,567 160,802 Environmental Services 60,348 64,394 47,732 Financial Services 465,691 276,349 196,984 Food and Agriculture 246,634 279,388 210,607 Health Care 800,697 805,100 738,412 Home Finance 791,859 596,198 382,635 Industrial Equipment 65,050 93,288 102,205 Industrial Materials 60,356 98,357 127,391 Insurance 114,165 60,415 47,689 Leisure 143,851 107,125 79,740 Medical Delivery 161,193 215,825 197,086 Money Market 111,447 108,892 99,064 Multimedia 68,383 85,280 96,559 Natural Gas 82,484 113,435 70,811 Natural Resources 59,758** N/A N/A Paper and Forest Products 60,338 60,429 62,846 Precious Metals and Minerals 195,123 333,124 383,741 Regional Banks 749,121 408,850 231,139 Retailing 153,141 222,542 47,630 Software and Computer Services 436,026 419,686 307,359 Technology 524,451 466,774 378,688 Telecommunications 410,851 479,593 418,462 Transportation 64,993 60,368 47,681 Utilities Growth 274,740 239,403 264,628
* Business Services and Outsourcing commenced operations on February 4, 1998. ** Cyclical Industries and Natural Resources commenced operations on March 3, 1997. For administering each stocks fund's securities lending program, FSC receives fees based on the number and duration of individual securities loans. For the fiscal years ended February 1998, 1997, and 1996, no securities lending fees were incurred by those fund's not listed below. Securities lending fees paid by the following funds to FSC for the past three fiscal years are shown in the table below. SECURITIES LENDING FEES FISCAL 1998 FISCAL 1997 FISCAL 1996 American Gold $ 1,2 5 5 $ 3,065 $ 3,985 Biotechnology 8,740 9,415 10,900 Chemicals 4,265 770 180 Computers 1 1,975 6,265 11,060 Construction and Housing 298 445 0 Electronics 31,045 13,690 12,190 Energy 575 2,320 1,115 Energy Service 2,025 1,290 380 Financial Services 775 0 305 Food and Agriculture 5,870 0 0 Health Care 7,995 7,915 12,373 Industrial Materials 0 0 2,065 Medical Delivery 1,275 8,900 3,795 Paper and Forest Products 0 0 375 Regional Banks 2,730 3,860 0 Precious Metals and Minerals 965 710 325 Retailing 2,570 4,965 2,010 Software and Computer Services 18,840 5,940 5,525 Technology 20,865 16,005 11,840 Telecommunications 10,585 10,530 11,295 Transportation 3,1 55 0 0 Utilities Growth 2,5 30 780 120 Each fund has a distribution agreement with FDC, an affiliate of FMR organized as a Massachusetts corporation organized on July 18, 1960. FDC is a broker-dealer registered under the Securities Exchange Act of 1934 and is a member of the National Association of Securities Dealers, Inc. 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. For fiscal 1997 and 1996, FDC collected, in the aggregate $550,208 and $560,711, respectively, of deferred sales charges from the total value of shares redeemed by shareholders in all funds and from the Select Cash Reserves Account. On October 12, 1990, the funds' 2.00% sales charge was increased to 3.00% and the 1.00% deferred sales charge was eliminated. For fiscal 1997 and 1996, FDC collected in the aggregate, $51,023,883 and $71,957,898, respectively, of front-end sales charges. The following table shows the sales charge revenue retained by FDC for fiscal 1997 and 1996.
Fiscal Year Ended Sales Charge Revenue Deferred Revenue Air Transportation Feb. 28, 1997 668,390 1,386 Feb. 29, 1996 880,267 1,398 American Gold Feb. 28, 1997 1,162,696 43,678 Feb. 29, 1996 1,434,655 40,619 Automotive Feb. 28, 1997 466,135 2,159 Feb. 29, 1996 381,296 3,109 Biotechnology Feb. 28, 1997 1,854,442 41,551 Feb. 29, 1996 3,591,690 28,707 Brokerage and Investment Management Feb. 28, 1997 903,649 1,311 Feb. 29, 1996 222,268 5,017 Chemicals Feb. 28, 1997 579,393 6,478 Feb. 29, 1996 529,419 23,318 Computers Feb. 28, 1997 2,540,952 5,155 Feb. 29, 1996 7,703,101 10,256 Construction and Housing Feb. 28, 1997 174,919 1,261 Feb. 29, 1996 309,250 1,448 Consumer Industries Feb. 28, 1997 169,639 682 Feb. 29, 1996 372,748 1,264 Defense and Aerospace Feb. 28, 1997 292,571 1,408 Feb. 29, 1996 256,417 4,056 Developing Communications Feb. 28, 1997 733,692 7,987 Feb. 29, 1996 2,513,224 4,453 Electronics Feb. 28, 1997 9,021,074 9,923 Feb. 29, 1996 15,086,139 18,130 Energy Feb. 28, 1997 1,029,850 14,667 Feb. 29, 1996 555,520 29,054 Energy Service Feb. 28, 1997 4,165,989 10,974 Feb. 29, 1996 1,453,689 6,886 Environmental Services Feb. 28, 1997 177,009 9,944 Feb. 29, 1996 80,412 12,652 Financial Services Feb. 28, 1997 1,400,884 8,487 Feb. 29, 1996 1,419,292 10,479 Food and Agriculture Feb. 28, 1997 1,095,115 7,683 Feb. 29, 1996 1,756,887 2,759 Health Care Feb. 28, 1997 2,553,184 69,909 Feb. 29, 1996 5,991,249 54,291 Home Finance Feb. 28, 1997 5,869,188 4,653 Feb. 29, 1996 4,216,342 1,985 Industrial Equipment Feb. 28, 1997 252,021 2,660 Feb. 29, 1996 541,013 7,928 Industrial Materials Feb. 28, 1997 866,268 4,072 Feb. 29, 1996 596,846 12,636 Insurance Feb. 28, 1997 248,750 1,364 Feb. 29, 1996 300,141 6,193 Leisure Feb. 28, 1997 282,104 14,717 Feb. 29, 1996 451,945 17,764 Medical Delivery Feb. 28, 1997 567,463 6,016 Feb. 29, 1996 1,501,132 6,879 Money Market Feb. 28, 1997 2,788,424 97,630 Feb. 29, 1996 4,472,949 76,760 Multimedia Feb. 28, 1997 338,283 4,261 Feb. 29, 1996 923,712 3,278 Fiscal Year Ended Sales Charge Revenue Deferred Revenue Natural Gas Feb. 28, 1997 682,901 2,332 Feb. 29, 1996 268,316 7,860 Paper and Forest Products Feb. 28, 1997 126,407 2,892 Feb. 29, 1996 526,735 3,068 Precious Metals and Minerals Feb. 28, 1997 669,762 45,427 Feb. 29, 1996 1,543,064 52,879 Regional Banks Feb. 28, 1997 3,497,512 3,702 Feb. 29, 1996 2,107,787 3,130 Retailing Feb. 28, 1997 838,536 4,812 Feb. 29, 1996 266,970 5,475 Software and Computer Services Feb. 28, 1997 1,921,006 5,034 Feb. 29, 1996 3,293,250 6,803 Technology Feb. 28, 1997 1,543,709 36,252 Feb. 29, 1996 3,609,138 41,004 Telecommunications Feb. 28, 1997 1,182,016 30,536 Feb. 29, 1996 2,050,876 25,598 Transportation Feb. 28, 1997 101,332 682 Feb. 29, 1996 157,256 2,170 Utilities Growth Feb. 28, 1997 238,618 38,523 Feb. 29, 1996 682,903 21,405
Sales charge revenues collected and retained by FDC for the fiscal year 1998 are shown in the table below.
Sales Charge Revenue Deferred Revenue Fiscal Year Amount Amount Amount Amount Ended Paid to Retained by Paid to Retained by FDC FDC FDC FDC Air Transportation Feb. 28, 1998 299,325 290,774 946 946 American Gold Feb. 28, 1998 916,845 902,000 27,084 27,084 Automotive Feb. 28, 1998 70,085 69,822 597 597 Biotechnology Feb. 28, 1998 1,105,374 1,099,427 31,256 31,256 Brokerage and Investment Management Feb. 28, 1998 4,327,828 4,314,336 2,431 2,431 Business Services and Outsourcing Feb. 28, 1998* 61,937 61,787 0 0 Chemicals Feb. 28, 1998 84,712 84,544 7,955 7,955 Computers Feb. 28, 1998 3,518,068 3,494,034 6,144 6,144 Construction and Housing Feb. 28, 1998 257,572 257,391 240 240 Consumer Industries Feb. 28, 1998 84,756 79,995 805 805 Cyclical Industries Feb. 28, 1998** 36,552 36,552 0 0 Defense and Aerospace Feb. 28, 1998 312,026 309,320 1,329 1,329 Developing Communications Feb. 28, 1998 479,806 477,848 6,980 6,980 Electronics Feb. 28, 1998 20,665,782 20,595,342 10,101 10,101 Energy Feb. 28, 1998 600,122 592,780 14,514 14,514 Energy Service Feb. 28, 1998 10,530,278 10,501,244 11,289 11,289 Environmental Services Feb. 28, 1998 42,162 42,118 6,428 6,428 Financial Services Feb. 28, 1998 2,098,142 2,087,581 8,343 8,343 Food and Agriculture Feb. 28, 1998 682,877 665,203 5,255 5,255 Health Care Feb. 28, 1998 4,316,495 4,275,358 56,845 56,845 Home Finance Feb. 28, 1998 9,770,117 9,751,663 5,349 5,349 Industrial Equipment Feb. 28, 1998 60,451 60,217 2,151 2,151 Industrial Materials Feb. 28, 1998 21,426 20,666 2,207 2,207 Insurance Feb. 28, 1998 686,986 664,282 786 786 Leisure Feb. 28, 1998 457,999 448,102 13,069 13,069 Medical Delivery Feb. 28, 1998 212,167 208,986 6,095 6,095 Money Market Feb. 28, 1998 2,402,715 2,223,313 95,881 95,881 Multimedia Feb. 28, 1998 304,729 289,533 739 739 Sales Charge Revenue Deferred Revenue Fiscal Year Amount Amount Amount Amount Ended Paid to Retained by Paid to Retained by FDC FDC FDC FDC Natural Gas Feb. 28, 1998 288,000 286,855 2,018 2,018 Natural Resources Feb. 28, 1998** 81,304 81,304 26 26 Paper and Forest Products Feb. 28, 1998 82,389 81,018 2,161 2,161 Precious Metals and Minerals Feb. 28, 1998 590,860 588,609 30,793 30,793 Regional Banks Feb. 28, 1998 7,288,315 7,262,004 4,790 4,790 Retailing Feb. 28, 1998 622,003 618,590 2,757 2,757 Software and Computer Services Feb. 28, 1998 1,272,908 1,258,051 5,910 5,910 Technology Feb. 28, 1998 2,082,341 2,072,865 22,926 22,926 Telecommunications Feb. 28, 1998 1,091,356 1,084,052 16,675 16,675 Transportation Feb. 28, 1998 168,254 167,042 925 925 Utilities Growth Feb. 28, 1998 629,220 601,884 22,382 22,382
* Business Services and Outsourcing commenced operations on February 4, 1998. ** Cyclical Industries and Natural Resources commenced operations on March 3, 1997. DESCRIPTION OF THE TRUST TRUST ORGANIZATION. Fidelity Select Portfolios is an open-end management investment company organized as a Massachusetts business trust on November 20, 1980. Subsequent to the reorganization of certain funds of the trust on October 26, 1990, Automation and Machinery Portfolio, Life Insurance Portfolio, and Restaurant Industry Portfolio no longer exist. Also due to the reorganization, Capital Goods Portfolio was renamed "Industrial Technology Portfolio," and Property and Casualty Insurance Portfolio was renamed "Insurance Portfolio." Subsequent to an additional reorganization on February 25, 1994, Electric Utilities Portfolio no longer exists. On July 18, 1996, Consumer Products Portfolio was renamed "Consumer Industries." On August 3, 1994 Utilities Portfolio was renamed "Utilities Growth Portfolio." On April 30, 1994, Broadcast and Media Portfolio was renamed "Multimedia Portfolio." On February 17, 1993, Savings and Loan Portfolio was renamed "Home Finance Portfolio." On June 29, 1992, Industrial Technology Portfolio was renamed "Industrial Equipment Portfolio." On June 14, 1990, Housing Portfolio was renamed "Construction and Housing Portfolio." On July 10, 1987, Health Care Delivery Portfolio was renamed "Medical Delivery Portfolio." On July 29, 1985, Leisure and Entertainment Portfolio was renamed "Leisure Portfolio." Currently there are forty funds of the trust: Air Transportation Portfolio, American Gold Portfolio, Automotive 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, 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, Precious Metals and Minerals Portfolio, Regional Banks Portfolio, Retailing Portfolio, Software and Computer Services Portfolio, Technology Portfolio, Telecommunications Portfolio, Transportation Portfolio, Utilities Growth Portfolio, Money Market Portfolio. The Declaration of Trust permits the Trustees to create additional funds. In the event that FMR ceases to be the investment adviser to the trust or a fund, the right of the trust or fund to use the identifying name "Fidelity" may be withdrawn. There is a remote possibility that one fund might become liable for any misstatement in its prospectus or statement of additional information about another fund. The assets of the trust received for the issue or sale of shares of each fund and all income, earnings, profits, and proceeds thereof, subject only to the rights of creditors, are especially allocated to such fund, and constitute the underlying assets of such fund. The underlying assets of each fund are segregated on the books of account, and are to be charged with the liabilities with respect to such fund and with a share of the general expenses of the trust. Expenses with respect to the trust are to be allocated in proportion to the asset value of the respective funds, except where allocations of direct expense can otherwise be fairly made. The officers of the trust, subject to the general supervision of the Board of Trustees, have the power to determine which expenses are allocable to a given fund, or which are general or allocable to all of the funds. In the event of the dissolution or liquidation of the trust, shareholders of each fund are entitled to receive as a class the underlying assets of such fund available for distribution. SHAREHOLDER AND TRUSTEE LIABILITY. The trust is an entity of the type commonly known as "Massachusetts business trust." Under Massachusetts law, shareholders of such a trust may, under certain circumstances, be held personally liable for the obligations of the trust. The Declaration of Trust provides that the trust shall not have any claim against shareholders except for the payment of the purchase price of shares and requires that each agreement, obligation, or instrument entered into or executed by the trust or the Trustees shall include a provision limiting the obligations created thereby to the trust and its assets. The Declaration of Trust provides for indemnification out of each fund's property of any shareholder held personally liable for the obligations of the fund. 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. The Declaration of Trust further provides that the Trustees, if they have exercised reasonable care, will not be liable for any neglect or wrongdoing, but nothing in the Declaration of Trust protects Trustees against any liability to which they would otherwise be subject by reason of willful misfeasance, bad faith, gross negligence, or reckless disregard of the duties involved in the conduct of their office. VOTING RIGHTS. Each fund's capital consists of shares of beneficial interest. As a shareholder, you receive one vote for each dollar value of net asset value you own. The shares have no preemptive or conversion rights; the voting and dividend rights, the right of redemption, and the privilege of exchange are described in the Prospectus. Shares are fully paid and nonassessable, except as set forth under the heading "Shareholder and Trustee Liability" above. Shareholders representing 10% or more of the trust or a fund may, as set forth in the Declaration of Trust, call meetings of the trust or a fund for any purpose related to the trust or fund, as the case may be, including, in the case of a meeting of the entire trust, the purpose of voting on removal of one or more Trustees. The trust or any fund may be terminated upon the sale of its assets to another open-end management investment company, or upon liquidation and distribution of its assets, if approved by vote of the holders of a majority of the trust or the fund, as determined by the current value of each shareholder's investment in the fund or trust. If not so terminated, the trust and the funds will continue indefinitely. Each fund may invest all of its assets in another investment company. CUSTODIAN. Brown Brothers Harriman & Co., 40 Water Street, Boston, Massachusetts, is custodian of the assets of the stock funds. The Bank of New York, 110 Washington Street, New York, New York is custodian of the assets of the money market fund. The custodian is responsible for the safekeeping of a fund's assets and the appointment of any subcustodian banks and clearing agencies. The custodian takes no part in determining the investment policies of a fund or in deciding which securities are purchased or sold by a fund. However, a fund may invest in obligations of the custodian and may purchase securities from or sell securities to the custodian. The Bank of New York and The Chase Manhattan Bank, each headquartered in New York, also may serve as special purpose custodians of certain assets in connection with repurchase agreement transactions. FMR, its officers and directors, its affiliated companies, and 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. Price Waterhouse LLP, 160 Federal Street, Boston, Massachusetts serves as the trust's independent accountant. The auditor examines financial statements for the funds and provides other audit, tax, and related services. FINANCIAL STATEMENTS Each fund's financial statements and financial highlights for the fiscal year ended February 28, 1998, and report of the auditor, are included in the funds' Annual Report, which is a separate report supplied with this SAI. The funds' financial statements, including the financial highlights, and report of the auditor are incorporated herein by reference. For a free additional copy of the funds' Annual Report, contact Fidelity at 1-800-544-8888, 82 Devonshire Street, Boston, MA 02109. APPENDIX The descriptions that follow are examples of eligible ratings for the funds. A fund may, however, consider the ratings for other types of investments and the ratings assigned by other rating organizations when determining the eligibility of a particular investment. DESCRIPTION OF MOODY'S INVESTORS SERVICE RATINGS OF COMMERCIAL PAPER Moody's assigns short-term debt ratings to obligations which have an original maturity not exceeding one year. Issuers rated PRIME-1 (or related supporting institutions) have a superior ability for repayment of principal and payment of interest. Issuers rated PRIME-2 (or related supporting institutions) have a strong ability for repayment of principal and payment of interest. DESCRIPTION OF STANDARD & POOR'S RATINGS OF COMMERCIAL PAPER Debt issues considered short-term in the relevant market may be assigned a Standard & Poor's commercial paper rating. A-1 - This highest category indicates that the degree of safety regarding timely payment is strong. Those issues determined to possess extremely strong safety characteristics are denoted with a plus sign (+) designation. A-2 - Capacity for timely payment on issues with this designation is satisfactory. However, the relative degree of safety is not as high as for issues designated A-1. DESCRIPTION OF MOODY'S INVESTORS SERVICE RATINGS OF CORPORATE BONDS Moody's ratings for obligations with an original remaining maturity in excess of one year fall within nine categories. They range from Aaa (highest quality) to C (lowest quality). Moody applies numerical modifiers of 1, 2, or 3 to each generic rating classification from Aa through B. The modifier 1 indicates that the security ranks in the higher end of its generic rating category; the modifier 2 indicates a mid-range ranking; and the modifier 3 indicates that the issue ranks on the lower end of its generic rating category. AAA - Bonds that are rated Aaa are judged to be of the best quality. They carry the smallest degree of investment risk and are generally referred to as "gilt edged." Interest payments are protected by a large or by an exceptionally stable margin and principal is secure. While the various protective elements are likely to change, such changes as can be visualized are most unlikely to impair the fundamentally strong position of such issues. AA - Bonds that are rated Aa are judged to be of high quality by all standards. Together with the Aaa group they comprise what are generally known as high-grade bonds. They are rated lower than the best bonds because margins of protection may not be as large as in Aaa securities or fluctuation of protective elements may be of greater amplitude or there may be other elements present which make the long-term risks appear somewhat larger than the Aaa securities. A - Bonds that are rated A possess many favorable investment attributes and are to be considered as upper-medium-grade obligations. Factors giving security to principal and interest are considered adequate but elements may be present which suggest a susceptibility to impairment sometime in the future. BAA - Bonds that are rated Baa are considered as medium-grade obligations, (i.e., they are neither highly protected nor poorly secured). Interest payments and principal security appear adequate for the present but certain protective elements may be lacking or may be characteristically unreliable over any great length of time. Such bonds lack outstanding investment characteristics and in fact have speculative characteristics as well. BA - Bonds that are rated Ba are judged to have speculative elements; their future cannot be considered as well assured. Often the protection of interest and principal payments may be very moderate and thereby not well safeguarded during both good and bad times over the future. Uncertainty of position characterizes bonds in this class. B - Bonds that are rated B generally lack characteristics of the desirable investment. Assurance of interest and principal payments or of maintenance of other terms of the contract over any long period of time may be small. CAA - Bonds that are rated Caa are of poor standing. Such issues may be in default or there may be present elements of danger with respect to principal or interest. CA - Bonds that are rated Ca represent obligations which are speculative in a high degree. Such issues are often in default or have other marked short-comings. C - Bonds that are rated C are the lowest-rated class of bonds and issues so rated can be regarded as having extremely poor prospects of ever attaining any real investment standing. DESCRIPTION OF STANDARD & POOR'S RATINGS OF CORPORATE BONDS Debt issues may be designated by Standard & Poor's as either investment grade ("AAA" through "BBB") or speculative grade ("BB" through "D"). While speculative grade debt will likely have some quality and protective characteristics, these are outweighed by large uncertainties or major exposures to adverse conditions. Ratings from AA to CCC may be modified by the addition of a plus sign (+) or minus sign (-) to show relative standing within the major rating categories. AAA - Debt rated AAA has the highest rating assigned by Standard & Poor's to a debt obligation. Capacity to pay interest and repay principal is extremely strong. AA - Debt rated AA has a very strong capacity to pay interest and repay principal and differs from the higher-rated issues only in small degree. A - Debt rated A has a strong capacity to pay interest and repay principal, although it is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than debt in higher rated categories. BBB - Debt rated BBB is regarded as having an adequate capacity to pay interest and repay principal. Whereas it normally exhibits adequate protection parameters, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity to pay interest and repay principal for debt in this category than in higher-rated categories. BB - Debt rated BB has less near-term vulnerability to default than other speculative issues. However, it faces major ongoing uncertainties or exposure to adverse business, financial, or economic conditions which could lead to inadequate capacity to meet timely interest and principal payments. The BB rating category is also used for debt subordinated to senior debt that is assigned an actual or implied BBB- rating. B - Debt rated B has a greater vulnerability to default but currently has the capacity to meet interest payments and principal repayments. Adverse business, financial, or economic conditions will likely impair capacity or willingness to pay interest and repay principal. The B rating category is also used for debt subordinated to senior debt that is assigned an actual or implied BB or BB- rating. CCC - Debt rated CCC has a currently identifiable vulnerability to default, and is dependent upon favorable business, financial, and economic conditions to meet timely payment of interest and repayment of principal. In the event of adverse business, financial, or economic conditions, it is not likely to have the capacity to pay interest and repay principal. The CCC rating category is also used for debt subordinated to senior debt that is assigned an actual or implied B or B- rating. CC - Debt rated CC is typically applied to debt subordinated to senior debt which is assigned an actual or implied CCC debt rating. C - The rating C is typically applied to debt subordinated to senior debt which is assigned an actual or implied CCC- debt rating. The C rating may be used to cover a situation where a bankruptcy petition has been filed but debt service payments are continued. CI - The rating CI is reserved for income bonds on which no interest is being paid. D - Debt rated D is in payment default. The D rating category is used when interest payments or principal payments are not made on the date due even if the applicable grace period has not expired, unless S&P believes that such payments will be made during such grace period. The D rating will also be used upon the filing of a bankruptcy petition if debt service payments are jeopardized. PART C. OTHER INFORMATION Item 24. Financial Statements and Exhibits (a) Financial Statements and Financial Highlights for each fund, except Medical Equipment and Systems Portfolio, included in the Annual Report for the Fidelity Select Portfolios for the fiscal year ended February 28, 1998 are included in the funds' Prospectus, are incorporated by reference into the funds' Statement of Additional Information and were filed on April 23, 1998 pursuant to Rule 30d-1 under the Investment Company Act of 1940 and are incorporated herein by reference. (b) Exhibits. (1)(a) Amended and Restated Declaration of Trust, dated April 14, 1994, is incorporated herein by reference to Exhibit 1(a) of Post-Effective Amendment No. 48. (2) Bylaws of the Trust, as amended, are incorporated herein by reference to Exhibit 2(a) of Fidelity Union Street Trust's (File no. 2-50318) Post-Effective Amendment No. 87. (3) Not applicable. (4) Not applicable. (5)(a) Management Contracts, dated March 1, 1994, between the Registrant's Air Transportation, American Gold, Automotive, Biotechnology, Brokerage and Investment Management, Chemicals, Computers, Construction and Housing (formerly Housing), Consumer Industries (formerly Consumer Products), Defense and Aerospace, Developing Communications, Electronics, Energy, Energy Service, Environmental Services, Financial Services, Food and Agriculture, Health Care, Home Finance (formerly Savings and Loan), Industrial Equipment (formerly Industrial Technology), Industrial Materials, Insurance (formerly Property and Casualty Insurance), Leisure, Medical Delivery, Multimedia (formerly Broadcast and Media), Natural Gas, Paper and Forest Products, Precious Metals and Minerals, Regional Banks, Retailing, Software and Computer Services, Technology, Telecommunications, Transportation, Utilities Growth (formerly Utilities), and Money Market Portfolios and Fidelity Management & Research Company, are incorporated herein by reference to Exhibit Nos. 5(a)(1-36) of Post-Effective Amendment No. 48. (b) Sub-Advisory Agreements, dated March 1, 1994, between Fidelity Management & Research Company and Fidelity Management & Research (U.K.) Inc. and between Fidelity Management & Research Company and Fidelity Management & Research (Far East) Inc., respectively, with respect to the Registrant's Air Transportation, Automotive, Biotechnology, Brokerage and Investment Management, Chemicals, Computers, Construction and Housing (formerly Housing), Consumer Industries (formerly Consumer Products), Defense and Aerospace, Developing Communications, Electronics, Energy, Energy Service, Environmental Services, Financial Services, Food and Agriculture, Health Care, Home Finance (formerly Savings and Loan), Industrial Equipment (formerly Industrial Technology), Industrial Materials, Insurance (formerly Property and Casualty Insurance), Leisure, Medical Delivery, Multimedia (formerly Broadcast and Media), Natural Gas, Paper and Forest Products, Precious Metals and Minerals, Regional Banks, Retailing, Software and Computer Services, Technology, Telecommunications, Transportation, and Utilities Growth (formerly Utilities) Portfolios, are incorporated herein by reference to Exhibit Nos. 5(b)(1-34) of Post-Effective Amendment No. 48. (c) Sub-Advisory Agreement, dated January 1, 1990, between Fidelity Management & Research Company and FMR Texas Inc. (currently known as Fidelity Investments Money Management, Inc.) with respect to the Money Market Portfolio, is incorporated herein by reference to Exhibit 5(c) of Post-Effective Amendment No. 51. (d) Management Contract, dated January 16, 1997, between Cyclical Industries Portfolio and Fidelity Management & Research Company, is incorporated herein by reference to Exhibit 5(d) of Post-Effective Amendment 58. (e) Management Contract, dated January 16, 1997, between Natural Resources Portfolio and Fidelity Management & Research Company, is incorporated herein by reference to Exhibit 5(e) of Post-Effective Amendment 58. (f) Sub-Advisory Agreement, dated January 16, 1997, between Fidelity Management & Research (U.K.) Inc. and Fidelity Management & Research Company on behalf of Cyclical Industries Portfolio, is incorporated herein by reference to Exhibit 5(f) of Post-Effective Amendment 59. (g) Sub-Advisory Agreement, dated January 16, 1997, between Fidelity Management & Research (Far East) Inc. and Fidelity Management & Research Company on behalf of Cyclical Industries Portfolio, is incorporated herein by reference to Exhibit 5(g) of Post-Effective Amendment 59. (h) Sub-Advisory Agreement, dated January 16, 1997, between Fidelity Management & Research (U.K.) Inc. and Fidelity Management & Research Company on behalf of Natural Resources Portfolio, is incorporated herein by reference to Exhibit 5(h) of Post-Effective Amendment 59. (i) Sub-Advisory Agreement, dated January 16, 1997, between Fidelity Management & Research (Far East) Inc. and Fidelity Management & Research Company on behalf of Natural Resources Portfolio, is incorporated herein by reference to Exhibit 5(i) of Post-Effective Amendment 59. (j) Management Contract, dated December 18, 1997, between Business Services and Outsourcing Portfolio and Fidelity Management & Research Company, is incorporated herein by reference to Exhibit 5(j) of Post-Effective Amendment No. 62. (k) Management Contract, between Medical Equipment and Systems Portfolio and Fidelity Management & Research Company, is filed herein as Exhibit 5(k). (l) Sub-Advisory Agreement, dated December 18, 1997, between Fidelity Management & Research (U.K.) Inc. and Fidelity Management & Research Company on behalf of Business Services and Outsourcing Portfolio, is incorporated herein by reference to Exhibit 5(l) of Post-Effective Amendment No. 62. (m) Sub-Advisory Agreement, between December 18, 1997, Fidelity Management & Research (Far East) Inc. and Fidelity Management & Research Company on behalf of Business Services and Outsourcing Portfolio, is incorporated herein by reference to Exhibit 5(m) of Post-Effective Amendment No. 62. (n) Form of Sub-Advisory Agreement, between Fidelity Management & Research (U.K.) Inc. and Fidelity Management & Research Company on behalf of Medical Equipment and Systems Portfolio, is filed herein as Exhibit 5(n). (o) Form of Sub-Advisory Agreement, between Fidelity Management & Research (Far East) Inc. and Fidelity Management & Research Company on behalf of Medical Equipment and Systems Portfolio, is filed herein as Exhibit 5(o). (6)(a) General Distribution Agreements, dated April 1, 1987, between the Registrant's Air Transportation, American Gold, Automotive, Biotechnology, Brokerage and Investment Management, Chemicals, Computers, Construction and Housing (formerly Housing), Defense and Aerospace, Electronics, Energy, Energy Service, Financial Services, Food and Agriculture, Health Care, Home Finance (formerly Savings and Loan), Industrial Materials, Insurance (formerly Property and Casualty Insurance), Leisure, Medical Delivery, Money Market, Multimedia (formerly Broadcast and Media), Paper and Forest Products, Precious Metals and Minerals, Regional Banks, Retailing, Software and Computer Services, Technology, Telecommunications, Transportation, and Utilities Growth (formerly Utilities) Portfolios and Fidelity Distributors Corporation, are incorporated herein by reference to Exhibit Nos. 6(a)(1-31) of Post-Effective Amendment No. 51. (b) Amendment to General Distribution Agreements, dated January 1, 1988, between the Registrant's Air Transportation, American Gold, Automotive, Biotechnology, Brokerage and Investment Management, Chemicals, Computers, Construction and Housing (formerly Housing), Defense and Aerospace, Electronics, Energy, Energy Service, Financial Services, Food and Agriculture, Health Care, Home Finance (formerly Savings and Loan), Industrial Materials, Industrial Equipment (formerly Capital Goods), Insurance (formerly Property and Casualty Insurance), Leisure, Medical Delivery, Money Market, Multimedia (formerly Broadcast and Media), Paper and Forest Products, Precious Metals and Minerals, Regional Banks, Retailing, Software and Computer Services, Technology, Telecommunications, Transportation, and Utilities Growth (formerly Utilities) Portfolios and Fidelity Distributors Corporation, is incorporated herein by reference to Exhibit 6(b) of Post-Effective Amendment No. 51. (c) General Distribution Agreement, dated June 29, 1989, between the Registrant's Environmental Services Portfolio and Fidelity Distributors Corporation, is incorporated herein by reference to Exhibit 6(c) of Post-Effective Amendment No. 51. (d) General Distribution Agreement, dated June 14, 1990, between the Registrant's Consumer Industries (formerly Consumer Products) Portfolio and Fidelity Distributors Corporation, is incorporated herein by reference to Exhibit 6(d) of Post-Effective Amendment No. 51. (e) General Distribution Agreement, dated June 14, 1990 between the Registrant's Developing Communications Portfolio and Fidelity Distributors Corporation, is incorporated herein by reference to Exhibit 6(e) of Post-Effective Amendment No. 51. (f) General Distribution Agreement, dated April 15, 1993, between the Registrant's Natural Gas Portfolio and Fidelity Distributors Corporation, is incorporated herein by reference to Exhibit 6(f) of Post-Effective Amendment No. 46. (g) Amendment, dated May 10, 1994, to the General Distribution Agreement, dated April 15, 1993, between the Registrant's Natural Gas Portfolio and Fidelity Distributors Corporation, is incorporated herein by reference to Exhibit 6(g) of Post-Effective Amendment No. 50. (h) General Distribution Agreement, dated April 1, 1987, between the Registrant's Industrial Equipment (formerly Capital Goods) Portfolio and Fidelity Distributors Corporation, is incorporated herein by reference to Exhibit 6(h) of Post-Effective Amendment No. 54. (i) General Distribution Agreement, dated January 16, 1997, between Cyclical Industries Portfolio and Fidelity Distributors Corporation, is incorporated herein by reference to Exhibit 6(i) of Post-Effective Amendment 59. (j) General Distribution Agreement, dated January 16, 1997, between Natural Resources Portfolio and Fidelity Distributors Corporation, is incorporated herein by reference to Exhibit 6(j) of Post-Effective Amendment 59. (k) Amendments, dated March 14, 1996 and July 15, 1996, to the General Distribution Agreement between Fidelity Select Portfolios on behalf of each Fidelity Select Portfolio except Fidelity Select Natural Gas Portfolio, Fidelity Select Cyclical Industries Portfolio, Fidelity Select Natural Resources Portfolio, Fidelity Select Business Services and Outsourcing Portfolio, and Fidelity Select Medical Equipment and Systems Portfolio and Fidelity Distributors Corporation are incorporated herein by reference to Exhibit 6(k) of Post-Effective Amendment No. 57. (l) Amendments, dated March 14, 1996 and July 15, 1996, to the General Distribution Agreement between Fidelity Select Portfolios on behalf of Fidelity Select Natural Gas Portfolio and Fidelity Distributors Corporation are incorporated herein by reference to Exhibit 6(l) of Post-Effective Amendment No. 57. (m) General Distribution Agreement, dated December 18, 1997, between Business Services and Outsourcing Portfolio and Fidelity Distributors Corporation, is incorporated herein by reference to Exhibit 6(m) of Post-Effective Amendment No. 62. (n) General Distribution Agreement, between Medical Equipment and Systems Portfolio and Fidelity Distributors Corporation, is filed herein as Exhibit 6(n). (o) Form of Bank Agency Agreement (most recently revised January, 1997), is filed herein as Exhibit 6(o). (p) Form of Selling Dealer Agreement for Bank-Related Transactions (most recently revised January, 1997), is filed herein as Exhibit 6(p). (7)(a) Retirement Plan for Non-Interested Person Trustees, Directors or General Partners, as amended November 16, 1995, is incorporated herein by reference to Exhibit 7(a) of Post-Effective Amendment No. 54. (b) The Fee Deferral Plan for Non-Interested Person Directors and Trustees of the Fidelity Funds, effective as of September 14, 1995 and amended through November 14, 1996, is incorporated herein by reference to Exhibit 7(b) of Fidelity Aberdeen Street Trust's (File No. 33-43529) Post-Effective Amendment No. 19. (8)(a) Custodian Agreement and Appendix C, dated September 1, 1994, between Brown Brothers Harriman & Company and Fidelity Select Portfolios on behalf of the equity portfolios with the exception of Business Services and Outsourcing and Medical Equipment and Systems Portfolios is incorporated herein by reference to Exhibit 8(a) of Fidelity Commonwealth Trust's Post-Effective Amendment No. 56 (File No. 2-52322). (b) Appendix A, dated October 16, 1997, to the Custodian Agreement, dated September 1, 1994, between Brown Brothers Harriman & Company and Fidelity Select Portfolios on behalf of the equity portfolios with the exception of Business Services and Outsourcing and Medical Equipment and Systems Portfolios is incorporated herein by reference to Exhibit 8(b) of Fidelity Contrafund's Post-Effective Amendment No. 50 (File No. 2-25235). (c) Appendix B, dated September 18, 1997, to the Custodian Agreement, dated September 1, 1994, between Brown Brothers Harriman & Company and Fidelity Select Portfolios on behalf of the equity portfolios with the exception of Business Services and Outsourcing and Medical Equipment and Systems Portfolios is incorporated herein by reference to Exhibit 8(c) of Fidelity Contrafund's Post-Effective Amendment No. 50 (File No. 2-25235). (d) Custodian Agreement and Appendix C, dated December 1, 1994, between The Bank of New York and Fidelity Select Portfolios on behalf of Select Money Market Portfolio is incorporated herein by reference to Exhibit 8(a) of Fidelity Hereford Street Trust's Post-Effective Amendment No. 4 (File No. 33-52577). (e) Appendix A, dated September 18, 1997, to the Custodian Agreement, dated December 1, 1994, between The Bank of New York and Fidelity Select Portfolios on behalf of Select Money Market Portfolio is incorporated herein by reference to Exhibit 8(e) of Fidelity Charles Street Trust's Post-Effective Amendment No. 62 (File No. 2-73133). (f) Appendix B, dated September 18, 1997, to the Custodian Agreement, dated December 1, 1994, between The Bank of New York and Fidelity Select Portfolios on behalf of Select Money Market Portfolio is incorporated herein by reference to Exhibit 8(f) of Fidelity Charles Street Trust's Post-Effective Amendment No. 62 (File No. 2-73133). (g) Fidelity Group Repo Custodian Agreement among The Bank of New York, J. P. Morgan Securities, Inc., and Fidelity Select Portfolios on behalf of all of the portfolios with the exception of Cyclical Industries, Natural Resources, Business Services and Outsourcing, and Medical Equipment and Systems Portfolios, dated February 12, 1996, is incorporated herein by reference to Exhibit 8(d) of Fidelity Institutional Cash Portfolios' (File No. 2-74808) Post-Effective Amendment No. 31. (h) Schedule 1 to the Fidelity Group Repo Custodian Agreement between The Bank of New York and Fidelity Select Portfolios on behalf of all of the portfolios with the exception of Cyclical Industries, Natural Resources, Business Services and Outsourcing, and Medical Equipment and Systems Portfolios, dated February 12, 1996, is incorporated herein by reference to Exhibit 8(e) of Fidelity Institutional Cash Portfolios' (File No. 2-74808) Post-Effective Amendment No. 31. (i) Fidelity Group Repo Custodian Agreement among Chemical Bank, Greenwich Capital Markets, Inc., and Fidelity Select Portfolios on behalf of all of the portfolios with the exception of Cyclical Industries, Natural Resources, Business Services and Outsourcing, and Medical Equipment and Systems Portfolios, dated November 13, 1995, is incorporated herein by reference to Exhibit 8(f) of Fidelity Institutional Cash Portfolios' (File No. 2-74808) Post-Effective Amendment No. 31. (j) Schedule 1 to the Fidelity Group Repo Custodian Agreement between Chemical Bank and Fidelity Select Portfolios on behalf of all of the portfolios with the exception of Cyclical Industries, Natural Resources, Business Services and Outsourcing, and Medical Equipment and Systems Portfolios, dated November 13, 1995, is incorporated herein by reference to Exhibit 8(g) of Fidelity Institutional Cash Portfolios' (File No. 2-74808) Post-Effective Amendment No. 31. (k) Joint Trading Account Custody Agreement between The Bank of New York and Fidelity Select Portfolios on behalf of all of the portfolios with the exception of Cyclical Industries, Natural Resources, Business Services and Outsourcing, and Medical Equipment and Systems Portfolios, dated May 11, 1995, is incorporated herein by reference to Exhibit 8(h) of Fidelity Institutional Cash Portfolios' (File No. 2-74808) Post-Effective Amendment No. 31. (l) First Amendment to Joint Trading Account Custody Agreement between The Bank of New York and Fidelity Select Portfolios on behalf of all of the portfolios with the exception of Cyclical Industries Portfolio, Natural Resources Portfolio, Business Services and Outsourcing Portfolio, and Medical Equipment and Systems Portfolio, dated July 14, 1995, is incorporated herein by reference to Exhibit 8(i) of Fidelity Institutional Cash Portfolios' (File No. 2-74808) Post-Effective Amendment No. 31. (m) Forms of Fidelity Group Repo Custodian Agreement and Schedule 1 among The Bank of New York, J. P. Morgan Securities, Inc., and Fidelity Select Portfolios on behalf of Cyclical Industries Portfolio, Natural Resources Portfolio, Business Services and Outsourcing Portfolio, and Medical Equipment and Systems Portfolio are filed herein as Exhibit 8(m). (n) Forms of Fidelity Group Repo Custodian Agreement and Schedule 1 among Chemical Bank, Greenwich Capital Markets, Inc., and Fidelity Select Portfolios on behalf of Cyclical Industries Portfolio, Natural Resources Portfolios, Business Services and Outsourcing Portfolio, and Medical Equipment and Systems Portfolio are filed herein as Exhibit 8(n). (o) Forms of Joint Trading Account Custody Agreement and First Amendment to Joint Trading Account Custody Agreement between The Bank of New York and Fidelity Select Portfolios on behalf of Cyclical Industries Portfolio, Natural Resources Portfolio, Business Services and Outsourcing Portfolio, and Medical Equipment and Systems Portfolio are filed herein as Exhibit 8(o). (p) Forms of Custodian Agreement and Appendix B and C, between Brown Brothers Harriman & Company and Fidelity Select Portfolios on behalf of Business Services and Outsourcing Portfolio and Medical Equipment and Systems Portfolio is filed herein as Exhibit 8(p). (9) Not applicable. (10) Not applicable. (11)(a) Consent of Price Waterhouse LLP is filed herein as Exhibit 11(a). (b) Consent of Price Waterhouse LLP is filed herein as Exhibit 11(b). (12) Not applicable. (13) Not applicable. (14)(a) Fidelity Individual Retirement Account Custodial Agreement and Disclosure Statement, as currently in effect, is incorporated herein by reference to Exhibit 14(a) of Fidelity Union Street Trust's (File No. 2-50318) Post-Effective Amendment No. 87. (b) Fidelity Institutional Individual Retirement Account Custodial Agreement and Disclosure Statement, as currently in effect, is incorporated herein by reference to Exhibit 14(d) of Fidelity Union Street Trust's (File No. 2-50318) Post-Effective Amendment No. 87. (c) National Financial Services Corporation Individual Retirement Account Custodial Agreement and Disclosure Statement, as currently in effect, is incorporated herein by reference to Exhibit 14(h) of Fidelity Union Street Trust's (File No. 2-50318) Post-Effective Amendment No. 87. (d) Fidelity Portfolio Advisory Services Individual Retirement Account Custodial Agreement and Disclosure Statement, as currently in effect, is incorporated herein by reference to Exhibit 14(i) of Fidelity Union Street Trust's (File No. 2-50318) Post-Effective Amendment No. 87. (e) Fidelity 403(b)(7) Custodial Account Agreement, as currently in effect, is incorporated herein by reference to Exhibit 14(e) of Fidelity Union Street Trust's (File No. 2-50318) Post-Effective Amendment No. 87. (f) National Financial Services Corporation Defined Contribution Retirement Plan and Trust Agreement, as currently in effect, is incorporated herein by reference to Exhibit 14(k) of Fidelity Union Street Trust's (File No. 2-50318) Post-Effective Amendment No. 87. (g) The CORPORATEplan for Retirement Profit Sharing/401K Plan, as currently in effect, is incorporated herein by reference to Exhibit 14(l) of Fidelity Union Street Trust's (File No. 2-50318) Post-Effective Amendment No. 87. (h) The CORPORATEplan for Retirement Money Purchase Pension Plan, as currently in effect, is incorporated herein by reference to Exhibit 14(m) of Fidelity Union Street Trust's (File No. 2-50318) Post-Effective Amendment No. 87. (i) Fidelity Investments Section 403(b)(7) Individual Custodial Account Agreement and Disclosure Statement, as currently in effect, is incorporated herein by reference to Exhibit 14(f) of Fidelity Commonwealth Trust's (File No. 2-52322) Post-Effective Amendment No. 57. (j) Plymouth Investments Defined Contribution Retirement Plan and Trust Agreement, as currently in effect, is incorporated herein by reference to Exhibit 14(o) of Fidelity Commonwealth Trust's (File No. 2-52322) Post-Effective Amendment No. 57. (k) The Fidelity Prototype Defined Benefit Pension Plan and Trust Basic Plan Document and Adoption Agreement, as currently in effect, is incorporated herein by reference to Exhibit 14(d) of Fidelity Securities Fund's (File No. 2-93601) Post-Effective Amendment No. 33. (l) The Institutional Prototype Plan Basic Plan Document, Standardized Adoption Agreement, and Non-Standardized Adoption Agreement, as currently in effect, is incorporated herein by reference to Exhibit 14(o) of Fidelity Securities Fund's (File No. 2-93601) Post-Effective Amendment No. 33. (m) The CORPORATEplan for Retirement 100SM Profit Sharing/401(k) Basic Plan Document, Standardized Adoption Agreement, and Non-Standardized Adoption Agreement, as currently in effect, is incorporated herein by reference to Exhibit 14(f) of Fidelity Securities Fund's (File No. 2-93601) Post-Effective Amendment No. 33. (n) The Fidelity Investments 401(a) Prototype Plan for Tax-Exempt Employers Basic Plan Document, Standardized Profit Sharing Plan Adoption Agreement, Non-Standardized Discretionary Contribution Plan No. 002 Adoption Agreement, and Non-Standardized Discretionary Contribution Plan No. 003 Adoption Agreement, as currently in effect, is incorporated herein by reference to Exhibit 14(g) of Fidelity Securities Fund's (File No. 2-93601) Post-Effective Amendment No. 33. (o) Fidelity Investments 403(b) Sample Plan Basic Plan Document and Adoption Agreement, as currently in effect, is incorporated herein by reference to Exhibit 14(p) of Fidelity Securities Fund's (File No. 2-93601) Post-Effective Amendment No. 33. (p) Fidelity Defined Contribution Retirement Plan and Trust Agreement, as currently in effect, is incorporated herein by reference to Exhibit 14(c) of Fidelity Securities Fund's (File No. 2-93601) Post-Effective Amendment No. 33. (q) Fidelity SIMPLE-IRAPlan Adoption Agreement, Company Profile Form, and Plan Document, as currently in effect, is incorporated herein by reference to Exhibit 14(q) of Fidelity Aberdeen Street Trust's (File No. 33-43529) Post-Effective Amendment No. 19. (15) Not applicable. (16)(a) Schedules for the computation of performance calculations and yield calculations for Select Natural Gas Portfolio and Select Money Market Portfolio on behalf of the trust were incorporated herein by reference to Exhibit 16(a) of Post-Effective Amendment No. 51. (b) A schedule for the computation of a moving average for Select Insurance Portfolio on behalf of the equity portfolios in the trust was incorporated herein by reference to Exhibit 16(b) of Post-Effective Amendment No. 51. (17) Financial Data Schedules for each fund, except Medical Equipment and Systems Portfolio, are filed herein as Exhibit 27. (18) Not applicable. Item 25. Persons Controlled by or under Common Control with Registrant The Board of Trustees of the Registrant is substantially the same as the boards of other funds advised by FMR, each of which has Fidelity Management & Research Company as its investment adviser. In addition, the officers of these funds are substantially identical. Nonetheless, the Registrant takes the position that it is not under common control with these other funds since the power residing in the respective boards and officers arises as the result of an official position with the respective funds. Item 26. Number of Holders of Securities February 28, 1998 Title of Class: Shares of Beneficial Interest Title of Class Number of Record Holders Air Transportation Portfolio 8,255 American Gold Portfolio 24,621 Automotive Portfolio 3,364 Biotechnology Portfolio 51,288 Brokerage and Investment Management Portfolio 42,614 Business Services and Outsourcing Portfolio 1,104 Chemicals Portfolio 6,280 Computers Portfolio 60,594 Construction and Housing Portfolio 3,956 Consumer Industries Portfolio 5,221 Cyclical Industries Portfolio 402 Defense and Aerospace Portfolio 6,219 Developing Communications Portfolio 24,203 Electronics Portfolio 181,953 Energy Portfolio 14,036 Energy Service Portfolio 66,591 Environmental Services Portfolio 4,094 Financial Services Portfolio 36,696 Food and Agriculture Portfolio 20,043 Health Care Portfolio 115,714 Home Finance Portfolio 100,029 Industrial Equipment Portfolio 3,708 Industrial Materials Portfolio 2,354 Insurance Portfolio 8,829 Leisure Portfolio 17,326 Medical Delivery Portfolio 13,478 Medical Equipment and Systems Portfolio 0 Money Market Portfolio 28,524 Multimedia Portfolio 9,776 Natural Gas Portfolio 6,376 Natural Resources Portfolio 883 Paper and Forest Products Portfolio 2,490 Precious Metals and Minerals Portfolio 23,995 Regional Banks Portfolio 82,604 Retailing Portfolio 12,001 Software and Computer Services Portfolio 39,672 Technology Portfolio 48,409 Telecommunications Portfolio 44,497 Transportation Portfolio 5,225 Utilities Growth Portfolio 22,699 Item 27. Indemnification Article XI, Section 2 of the Declaration of Trust sets forth the reasonable and fair means for determining whether indemnification shall be provided to any past or present Trustee or officer. It states that the Registrant shall indemnify any present or past Trustee or officer to the fullest extent permitted by law against liability and all expenses reasonably incurred by him in connection with any claim, action, suit, or proceeding in which he is involved by virtue of his service as a Trustee, an officer, or both. Additionally, amounts paid or incurred in settlement of such matters are covered by this indemnification. Indemnification will not be provided in certain circumstances, however. These include instances of willful misfeasance, bad faith, gross negligence, and reckless disregard of the duties involved in the conduct of the particular office involved. Pursuant to Section 11 of the Distribution Agreement, the Registrant agrees to indemnify and hold harmless the Distributor and each of its directors and officers and each person, if any, who controls the Distributor within the meaning of Section 15 of the 1933 Act against any loss, liability, claim, damages or expense arising by reason of any person acquiring any shares, based upon the ground that the registration statement, Prospectus, Statement of Additional Information, shareholder reports or other information filed or made public by the Registrant included a materially misleading statement or omission. However, the Registrant does not agree to indemnify the Distributor or hold it harmless to the extent that the statement or omission was made in reliance upon, and in conformity with, information furnished to the Registrant by or on behalf of the Distributor. The Registrant does not agree to indemnify the parties against any liability to which they would be subject by reason of willful misfeasance, bad faith, gross negligence, and reckless disregard of the obligations and duties under the Distribution Agreement. Pursuant to the agreement by which Fidelity Service Company, Inc. ("Service") is appointed transfer agent, the Registrant agrees to indemnify and hold Service harmless against any losses, claims, damages, liabilities or expenses (including reasonable counsel fees and expenses) resulting from: (1) any claim, demand, action or suit brought by any person other than the Registrant, including by a shareholder, which names the Service and/or the Registrant as a party and is not based on and does not result from Service's willful misfeasance, bad faith or negligence or reckless disregard of duties, and arises out of or in connection with Service's performance under the Transfer Agency Agreement; or (2) any claim, demand, action or suit (except to the extent contributed to by Service's willful misfeasance, bad faith or negligence or reckless disregard of duties) which results from the negligence of the Registrant, or from Service's acting upon any instruction(s) reasonably believed by it to have been executed or communicated by any person duly authorized by the Registrant, or as a result of Service's acting in reliance upon advice reasonably believed by Service to have been given by counsel for the Registrant, or as a result of Service's acting in reliance upon any instrument or stock certificate reasonably believed by it to have been genuine and signed, countersigned or executed by the proper person. Item 28. Business and Other Connections of Investment Adviser (1) FIDELITY MANAGEMENT & RESEARCH COMPANY (FMR) FMR serves as investment adviser to a number of other investment companies. The directors and officers of the Adviser have held, during the past two fiscal years, the following positions of a substantial nature.
Edward C. Johnson 3d Chairman of the Board and Director of FMR; President and Chief Executive Officer of FMR Corp.; Chairman of the Board and Director of FMR Corp., FIMM, FMR U.K., and FMR FAR EAST; Chairman of the Executive Committee of FMR; Director of Fidelity Investments Japan Limited; President and Trustee of funds advised by FMR. Robert C. Pozen President and Director of FMR; Senior Vice President and Trustee of funds advised by FMR; President and Director of FIMM, FMR U.K., and FMR FAR EAST; Previously, General Counsel, Managing Director, and Senior Vice President of FMR Corp. Peter S. Lynch Vice Chairman of the Board and Director of FMR. Marta Amieva Vice President of FMR. John H. Carlson Vice President of FMR and of funds advised by FMR. Dwight D. Churchill Senior Vice President of FMR and Vice President of Bond Funds advised by FMR; Vice President of FIMM. Brian Clancy Vice President of FMR and Treasurer of FMR, FIMM, FMR U.K., and FMR FAR EAST. Barry Coffman Vice President of FMR. Arieh Coll Vice President of FMR. Stephen G. Manning Assistant Treasurer of FMR, FIMM, FMR U.K., FMR FAR EAST; Treasurer of FMR Corp. William Danoff Senior Vice President of FMR and Vice President of a fund advised by FMR. Scott E. DeSano Vice President of FMR. Penelope Dobkin Vice President of FMR and of a fund advised by FMR. Walter C. Donovan Vice President of FMR. Bettina Doulton Vice President of FMR and of funds advised by FMR. Margaret L. Eagle Vice President of FMR and of funds advised by FMR. William R. Ebsworth Vice President of FMR. Richard B. Fentin Senior Vice President of FMR and Vice President of a fund advised by FMR. Gregory Fraser Vice President of FMR and of a fund advised by FMR. Jay Freedman Assistant Clerk of FMR; Clerk of FMR Corp., FMR U.K., and FMR FAR EAST; Secretary of FIMM. Robert Gervis Vice President of FMR. David L. Glancy Vice President of FMR and of a fund advised by FMR. Kevin E. Grant Vice President of FMR and of funds advised by FMR. Barry A. Greenfield Vice President of FMR and of a fund advised by FMR. Boyce I. Greer Senior Vice President of FMR and Vice President of Money Market Funds advised by FMR. Bart A. Grenier Vice President of High-Income Funds advised by FMR;Vice President of FMR. Robert Haber Vice President of FMR. Richard C. Habermann Senior Vice President of FMR; Vice President of funds advised by FMR. Richard Hazelwood Vice President of FMR. Fred L. Henning Jr. Senior Vice President of FMR and Vice President of Fixed-Income funds advised by FMR. Bruce T. Herring Vice President of FMR. John R. Hickling Vice President of FMR and of a fund advised by FMR. Robert F. Hill Vice President of FMR; Director of Technical Research. Curt Hollingsworth Vice President of FMR and of funds advised by FMR. Abigail P. Johnson Senior Vice President of FMR and Vice President of funds advised by FMR; Director of FMR Corp.; Associate Director and Senior Vice President of Equity funds advised by FMR. David B. Jones Vice President of FMR. Steven Kaye Vice President of FMR and of a fund advised by FMR. Francis V. Knox Vice President of FMR; Compliance Officer of FMR U.K. Robert A. Lawrence Senior Vice President of FMR and Vice President of Fidelity Real Estate High Income and Fidelity Real Estate High income II funds advised by FMR; Associate Director and Senior Vice President of Equity funds advised by FMR; Previously, Vice President of High Income funds advised by FMR. Harris Leviton Vice President of FMR and of a fund advised by FMR. Bradford E. Lewis Vice President of FMR and of funds advised by FMR. Richard R. Mace Jr. Vice President of FMR and of funds advised by FMR. Charles A. Mangum Vice President of FMR and of a fund advised by FMR. Kevin McCarey Vice President of FMR and of a fund advised by FMR. Diane M. McLaughlin Vice President of FMR. Neal P. Miller Vice President of FMR. David L. Murphy Vice President of FMR and of funds advised by FMR. Scott A. Orr Vice President of FMR and of funds advised by FMR. Jacques Perold Vice President of FMR. Anne Punzak Vice President of FMR. Kevin A. Richardson Vice President of FMR. Eric D. Roiter Senior Vice President and General Counsel of FMR and Secretary of funds advised by FMR. Mark S. Rzepczynski Vice President of FMR. Lee H. Sandwen Vice President of FMR. Patricia A. Satterthwaite Vice President of FMR and of a fund advised by FMR. Fergus Shiel Vice President of FMR. Richard A. Silver Vice President of FMR. Carol A. Smith-Fachetti Vice President of FMR. Steven J. Snider Vice President of FMR. Thomas T. Soviero Vice President of FMR and of a fund advised by FMR. Richard Spillane Senior Vice President of FMR; Associate Director and Senior Vice President of Equity funds advised by FMR; Previously, Senior Vice President and Director of Operations and Compliance of FMR U.K. Thomas M. Sprague Vice President of FMR and of funds advised by FMR. Robert E. Stansky Senior Vice President of FMR and Vice President of a fund advised by FMR. Scott D. Stewart Vice President of FMR. Cynthia L. Strauss Vice President of FMR. Thomas Sweeney Vice President of FMR and of a fund advised by FMR. Beth F. Terrana Senior Vice President of FMR and Vice President of a fund advised by FMR. Yoko Tilley Vice President of FMR. Joel C. Tillinghast Vice President of FMR and of a fund advised by FMR. Robert Tuckett Vice President of FMR. Jennifer Uhrig Vice President of FMR and of funds advised by FMR. George A. Vanderheiden Senior Vice President of FMR and Vice President of funds advised by FMR; Director of FMR Corp. Steven S. Wymer Vice President of FMR and of a fund advised by FMR.
(2) FIDELITY MANAGEMENT & RESEARCH (U.K.) INC. (FMR U.K.) 25 Lovat Lane, London, EC3R 8LL, England FMR U.K. provides investment advisory services to Fidelity Management & Research Company and Fidelity Management Trust Company. The directors and officers of the Sub-Adviser have held the following positions of a substantial nature during the past two fiscal years. Edward C. Johnson 3d Chairman of the Board and Director of FMR U.K.,
FMR, FMR Corp., FIMM, and FMR FAR EAST; President and Chief Executive Officer of FMR Corp.; Chairman of the Executive Committee of FMR; Director of Fidelity Investments Japan Limited; President and Trustee of funds advised by FMR. Robert C. Pozen President and Director of FMR; Senior Vice President and Trustee of funds advised by FMR; President and Director of FIMM, FMR U.K., and FMR FAR EAST; Previously, General Counsel, Managing Director, and Senior Vice President of FMR Corp. Brian Clancy Treasurer of FMR U.K., FMR FAR EAST, FMR, and FIMM and Vice President of FMR. Stephen G. Manning Assistant Treasurer of FMR U.K., FMR, FMR FAR EAST, and FIMM; Treasurer of FMR Corp. Francis V. Knox Compliance Officer of FMR U.K.; Previously, Vice President of FMR. Jay Freedman Clerk of FMR U.K., FMR FAR EAST, and FMR Corp.; Assistant Clerk of FMR; Secretary of FIMM. Sarah H. Zenoble Senior Vice President and Director of Operations andCompliance. (3) FIDELITY MANAGEMENT & RESEARCH COMPANY (FAR EAST) INC. (FMR FAR EAST) Shiroyama JT Mori Bldg., 4-3-1 Toranomon Minato-ku, Tokyo 105, Japan FMR Far East provides investment advisory services to Fidelity Management & Research Company and Fidelity Management Trust Company. The directors and officers of the Sub-Adviser have held the following positions of a substantial nature during the past two fiscal years. Edward C. Johnson 3d Chairman of the Board and Director of FMR FAR EAST, FMR, FMR Corp., FIMM, and FMR U.K.; Chairman of the Executive Committee of FMR; President and Chief Executive Officer of FMR Corp.; Director of Fidelity Investments Japan Limited; President and Trustee of funds advised by FMR. Robert C. Pozen President and Director of FMR; Senior Vice President and Trustee of funds advised by FMR; President and Director of FIMM, FMR U.K., and FMR FAR EAST; Previously, General Counsel, Managing Director, and Senior Vice President of FMR Corp. Robert H. Auld Senior Vice President of FMR FAR EAST. Brian Clancy Treasurer of FMR FAR EAST, FMR U.K., FMR, and FIMM and Vice President of FMR. Jay Freedman Clerk of FMR FAR EAST, FMR U.K., and FMR Corp.; Assistant Clerk of FMR; Secretary of FIMM. Stephen G. Manning Assistant Treasurer of FMR FAR EAST, FMR, FMR U.K., and FIMM; Treasurer of FMR Corp. Billy Wilder Vice President of FMR FAR EAST; President and Representative Director of Fidelity Investments Japan Limited. (4) FIDELITY INVESTMENTS MONEY MANAGEMENT, INC. (FIMM) FIMM provides investment advisory services to Fidelity Management & Research Company. The directors and officers of the Sub-Adviser have held the following positions of a substantial nature during the past two fiscal years. Edward C. Johnson 3d Chairman of the Board and Director of FIMM, FMR, FMR Corp., FMR FAR EAST, and FMR U.K.; Chairman of the Executive Committee of FMR; President and Chief Executive Officer of FMR Corp.; Director of Fidelity Investments Japan Limited; President and Trustee of funds advised by FMR. Robert C. Pozen President and Director of FMR; Senior Vice President and Trustee of funds advised by FMR; President and Director of FIMM, FMR U.K., and FMR FAR EAST; Previously, General Counsel, Managing Director, and Senior Vice President of FMR Corp. Robert H. Auld Vice President of FIMM. Dwight D. Churchill Vice President of FIMM; Senior Vice President of FMR and Vice President of Bond Funds advised by FMR. Brian Clancy Treasurer of FIMM, FMR FAR EAST, FMR U.K., and FMR and Vice President of FMR. Robert K. Duby Vice President of FIMM and of funds advised by FMR. Jay Freedman Secretary of FIMM; Clerk of FMR U.K., FMR FAR EAST, and FMR Corp.; Assistant Clerk of FMR. Robert Litterst Vice President of FIMM and of funds advised by FMR. Thomas D. Maher Vice President of FIMM and Assistant Vice President of Money Market funds advised by FMR. Stephen G. Manning Assistant Treasurer of FIMM, FMR U.K., FMR FAR EAST, and FMR; Treasurer of FMR Corp. Scott A. Orr Vice President of FIMM and of funds advised by FMR. Burnell R. Stehman Vice President of FIMM and of funds advised by FMR. John J. Todd Vice President of FIMM and of funds advised by FMR.
Item 29. Principal Underwriters (a) Fidelity Distributors Corporation (FDC) acts as distributor for most funds advised by FMR. (b) Name and Principal Positions and Offices Positions and Offices Business Address* With Underwriter With Registrant Edward C. Johnson 3d Director Trustee and President Michael Mlinac Director None James Curvey Director None Martha B. Willis President None Eric D. Roiter Senior Vice President Secretary Caron Ketchum Treasurer and Controller None Gary Greenstein Assistant Treasurer None Jay Freedman Assistant Clerk None Linda Holland Compliance Officer None
* 82 Devonshire Street, Boston, MA (c) Not applicable. Item 30. Location of Accounts and Records All accounts, books, and other documents required to be maintained by Section 31(a) of the 1940 Act and the Rules promulgated thereunder are maintained by Fidelity Management & Research Company or Fidelity Service Company, Inc., 82 Devonshire Street, Boston, MA 02109, or the funds' respective custodians, The Bank of New York, 110 Washington Street, New York, N.Y. and Brown Brothers Harriman & Co., 40 Water Street, Boston, MA. Item 31. Management Services Not applicable. Item 32. Undertakings (a) The Registrant undertakes for Natural Gas Portfolio, Cyclical Industries Portfolio, Natural Resources Portfolio, Business Services and Outsourcing Portfolio, and Medical Equipment and Systems Portfolio: 1) to call a meeting of shareholders for the purpose of voting upon the questions of removal of a trustee or trustees, when requested to do so by record holders of not less than 10% of its outstanding shares; and 2) to assist in communications with other shareholders pursuant to Section 16(c)(1) and (2), whenever shareholders meeting the qualifications set forth in Section 16(c) seek the opportunity to communicate with other shareholders with a view toward requesting a meeting. (b) The Registrant, on behalf of Fidelity Select Portfolios, provided the information required for the stock funds by Item 5A is contained in the annual report, undertakes to furnish to each person to whom a prospectus has been delivered, upon their request and without charge, a copy of the Registrant's latest annual report to shareholders. SIGNATURES Pursuant to the requirements of the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant certifies that it meets all of the requirements for the effectiveness of this Registration Statement pursuant to Rule 485(b) under the Securities Act of 1933 and has duly caused this Post-Effective Amendment No. 64 to the Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Boston, and Commonwealth of Massachusetts, on the 22nd day of April 1998. Fidelity Select Portfolios By /s/Edward C. Johnson 3d (dagger) Edward C. Johnson 3d, President Pursuant to the requirements of the Securities Act of 1933, this Registration Statement has been signed below by the following persons in the capacities and on the dates indicated. (Signature) (Title) (Date)
/s/Edward C. Johnson 3d (dagger) President and Trustee April 22, 1998 Edward C. Johnson 3d (Principal Executive Officer) /s/Richard A. Silver Treasurer April 22, 1998 Richard A. Silver /s/Robert C. Pozen Trustee April 22, 1998 Robert C. Pozen /s/Ralph F. Cox * Trustee April 22, 1998 Ralph F. Cox /s/Phyllis Burke Davis * Trustee April 22, 1998 Phyllis Burke Davis /s/Robert M. Gates ** Trustee April 22, 1998 Robert M. Gates /s/E. Bradley Jones * Trustee April 22, 1998 E. Bradley Jones /s/Donald J. Kirk * Trustee April 22, 1998 Donald J. Kirk /s/Peter S. Lynch * Trustee April 22, 1998 Peter S. Lynch /s/Marvin L. Mann * Trustee April 22, 1998 Marvin L. Mann /s/William O. McCoy * Trustee April 22, 1998 William O. McCoy /s/Gerald C. McDonough * Trustee April 22, 1998 Gerald C. McDonough /s/Thomas R. Williams * Trustee April 22, 1998 Thomas R. Williams
(dagger) Signatures affixed by Robert C. Pozen pursuant to a power of attorney dated July 17, 1997 and filed herewith. * Signature affixed by Robert C. Hacker pursuant to a power of attorney dated December 19, 1996 and filed herewith. ** Signature affixed by Robert C. Hacker pursuant to a power of attorney dated March 6, 1997 and filed herewith. POWER OF ATTORNEY I, the undersigned President and Director, Trustee, or General Partner, as the case may be, of the following investment companies:
Fidelity Aberdeen Street Trust Fidelity Hereford Street Trust Fidelity Advisor Series I Fidelity Income Fund Fidelity Advisor Series II Fidelity Institutional Cash Portfolios Fidelity Advisor Series III Fidelity Institutional Tax-Exempt Cash Portfolios Fidelity Advisor Series IV Fidelity Investment Trust Fidelity Advisor Series V Fidelity Magellan Fund Fidelity Advisor Series VI Fidelity Massachusetts Municipal Trust Fidelity Advisor Series VII Fidelity Money Market Trust Fidelity Advisor Series VIII Fidelity Mt. Vernon Street Trust Fidelity Beacon Street Trust Fidelity Municipal Trust Fidelity Boston Street Trust Fidelity Municipal Trust II Fidelity California Municipal Trust Fidelity New York Municipal Trust Fidelity California Municipal Trust II Fidelity New York Municipal Trust II Fidelity Capital Trust Fidelity Phillips Street Trust Fidelity Charles Street Trust Fidelity Puritan Trust Fidelity Commonwealth Trust Fidelity Revere Street Trust Fidelity Concord Street Trust Fidelity School Street Trust Fidelity Congress Street Fund Fidelity Securities Fund Fidelity Contrafund Fidelity Select Portfolios Fidelity Corporate Trust Fidelity Sterling Performance Portfolio, L.P. Fidelity Court Street Trust Fidelity Summer Street Trust Fidelity Court Street Trust II Fidelity Trend Fund Fidelity Covington Trust Fidelity U.S. Investments-Bond Fund, L.P. Fidelity Daily Money Fund Fidelity U.S. Investments-Government Securities Fidelity Destiny Portfolios Fund, L.P. Fidelity Deutsche Mark Performance Fidelity Union Street Trust Portfolio, L.P. Fidelity Union Street Trust II Fidelity Devonshire Trust Fidelity Yen Performance Portfolio, L.P. Fidelity Exchange Fund Newbury Street Trust Fidelity Financial Trust Variable Insurance Products Fund Fidelity Fixed-Income Trust Variable Insurance Products Fund II Fidelity Government Securities Fund Variable Insurance Products Fund III Fidelity Hastings Street Trust
in addition to any other investment company for which Fidelity Management & Research Company or an affiliate acts as investment adviser and for which the undersigned individual serves as President and Director, Trustee, or General Partner (collectively, the "Funds"), hereby constitute and appoint Robert C. Pozen my true and lawful attorney-in-fact, with full power of substitution, and with full power to him to sign for me and in my name in the appropriate capacity, all Registration Statements of the Funds on Form N-1A, Form N-8A, or any successor thereto, any and all subsequent Amendments, Pre-Effective Amendments, or Post-Effective Amendments to said Registration Statements on Form N-1A, Form N-8A, or any successor thereto, any Registration Statements on Form N-14, and any supplements or other instruments in connection therewith, and generally to do all such things in my name and on my behalf in connection therewith as said attorney-in-fact deems necessary or appropriate, to comply with the provisions of the Securities Act of 1933 and the Investment Company Act of 1940, and all related requirements of the Securities and Exchange Commission. I hereby ratify and confirm all that said attorney-in-fact or his substitutes may do or cause to be done by virtue hereof. This power of attorney is effective for all documents filed on or after August 1, 1997. WITNESS my hand on the date set forth below. /s/Edward C. Johnson 3d_ July 17, 1997 Edward C. Johnson 3d POWER OF ATTORNEY We, the undersigned Directors, Trustees, or General Partners, as the case may be, of the following investment companies:
Fidelity Aberdeen Street Trust Fidelity Government Securities Fund Fidelity Advisor Annuity Fund Fidelity Hastings Street Trust Fidelity Advisor Series I Fidelity Hereford Street Trust Fidelity Advisor Series II Fidelity Income Fund Fidelity Advisor Series III Fidelity Institutional Cash Portfolios Fidelity Advisor Series IV Fidelity Institutional Tax-Exempt Cash Portfolios Fidelity Advisor Series V Fidelity Institutional Trust Fidelity Advisor Series VI Fidelity Investment Trust Fidelity Advisor Series VII Fidelity Magellan Fund Fidelity Advisor Series VIII Fidelity Massachusetts Municipal Trust Fidelity Beacon Street Trust Fidelity Money Market Trust Fidelity Boston Street Trust Fidelity Mt. Vernon Street Trust Fidelity California Municipal Trust Fidelity Municipal Trust Fidelity California Municipal Trust II Fidelity Municipal Trust II Fidelity Capital Trust Fidelity New York Municipal Trust Fidelity Charles Street Trust Fidelity New York Municipal Trust II Fidelity Commonwealth Trust Fidelity Phillips Street Trust Fidelity Congress Street Fund Fidelity Puritan Trust Fidelity Contrafund Fidelity Revere Street Trust Fidelity Corporate Trust Fidelity School Street Trust Fidelity Court Street Trust Fidelity Securities Fund Fidelity Court Street Trust II Fidelity Select Portfolios Fidelity Covington Trust Fidelity Sterling Performance Portfolio, L.P. Fidelity Daily Money Fund Fidelity Summer Street Trust Fidelity Daily Tax-Exempt Fund Fidelity Trend Fund Fidelity Destiny Portfolios Fidelity U.S. Investments-Bond Fund, L.P. Fidelity Deutsche Mark Performance Fidelity U.S. Investments-Government Securities Portfolio, L.P. Fund, L.P. Fidelity Devonshire Trust Fidelity Union Street Trust Fidelity Exchange Fund Fidelity Union Street Trust II Fidelity Financial Trust Fidelity Yen Performance Portfolio, L.P. Fidelity Fixed-Income Trust Variable Insurance Products Fund Variable Insurance Products Fund II
plus any other investment company for which Fidelity Management & Research Company or an affiliate acts as investment adviser and for which the undersigned individual serves as Directors, Trustees, or General Partners (collectively, the "Funds"), hereby constitute and appoint Arthur J. Brown, Arthur C. Delibert, Stephanie A. Djinis, Robert C. Hacker, Thomas M. Leahey, Richard M. Phillips, and Dana L. Platt, each of them singly, our true and lawful attorneys-in-fact, with full power of substitution, and with full power to each of them, to sign for us and in our names in the appropriate capacities, all Registration Statements of the Funds on Form N-1A, Form N-8A or any successor thereto, any and all subsequent Amendments, Pre-Effective Amendments, or Post-Effective Amendments to said Registration Statements on Form N-1A or any successor thereto, any Registration Statements on Form N-14, and any supplements or other instruments in connection therewith, and generally to do all such things in our names and behalf in connection therewith as said attorneys-in-fact deems necessary or appropriate, to comply with the provisions of the Securities Act of 1933 and the Investment Company Act of 1940, and all related requirements of the Securities and Exchange Commission. I hereby ratify and confirm all that said attorneys-in-fact or their substitutes may do or cause to be done by virtue hereof. This power of attorney is effective for all documents filed on or after January 1, 1997. WITNESS our hands on this nineteenth day of December, 1996. /s/Edward C. Johnson 3d___________ /s/Peter S. Lynch________________ Edward C. Johnson 3d Peter S. Lynch /s/J. Gary Burkhead_______________ /s/William O. McCoy______________ J. Gary Burkhead William O. McCoy /s/Ralph F. Cox __________________ /s/Gerald C. McDonough___________ Ralph F. Cox Gerald C. McDonough /s/Phyllis Burke Davis_____________ /s/Marvin L. Mann________________ Phyllis Burke Davis Marvin L. Mann /s/E. Bradley Jones________________ /s/Thomas R. Williams ____________ E. Bradley Jones Thomas R. Williams /s/Donald J. Kirk __________________ Donald J. Kirk POWER OF ATTORNEY I, the undersigned Director, Trustee, or General Partner, as the case may be, of the following investment companies:
Fidelity Aberdeen Street Trust Fidelity Government Securities Fund Fidelity Advisor Annuity Fund Fidelity Hastings Street Trust Fidelity Advisor Series I Fidelity Hereford Street Trust Fidelity Advisor Series II Fidelity Income Fund Fidelity Advisor Series III Fidelity Institutional Cash Portfolios Fidelity Advisor Series IV Fidelity Institutional Tax-Exempt Cash Portfolios Fidelity Advisor Series V Fidelity Institutional Trust Fidelity Advisor Series VI Fidelity Investment Trust Fidelity Advisor Series VII Fidelity Magellan Fund Fidelity Advisor Series VIII Fidelity Massachusetts Municipal Trust Fidelity Beacon Street Trust Fidelity Money Market Trust Fidelity Boston Street Trust Fidelity Mt. Vernon Street Trust Fidelity California Municipal Trust Fidelity Municipal Trust Fidelity California Municipal Trust II Fidelity Municipal Trust II Fidelity Capital Trust Fidelity New York Municipal Trust Fidelity Charles Street Trust Fidelity New York Municipal Trust II Fidelity Commonwealth Trust Fidelity Phillips Street Trust Fidelity Congress Street Fund Fidelity Puritan Trust Fidelity Contrafund Fidelity Revere Street Trust Fidelity Corporate Trust Fidelity School Street Trust Fidelity Court Street Trust Fidelity Securities Fund Fidelity Court Street Trust II Fidelity Select Portfolios Fidelity Covington Trust Fidelity Sterling Performance Portfolio, L.P. Fidelity Daily Money Fund Fidelity Summer Street Trust Fidelity Daily Tax-Exempt Fund Fidelity Trend Fund Fidelity Destiny Portfolios Fidelity U.S. Investments-Bond Fund, L.P. Fidelity Deutsche Mark Performance Fidelity U.S. Investments-Government Securities Portfolio, L.P. Fund, L.P. Fidelity Devonshire Trust Fidelity Union Street Trust Fidelity Exchange Fund Fidelity Union Street Trust II Fidelity Financial Trust Fidelity Yen Performance Portfolio, L.P. Fidelity Fixed-Income Trust Variable Insurance Products Fund Variable Insurance Products Fund II
plus any other investment company for which Fidelity Management & Research Company or an affiliate acts as investment adviser and for which the undersigned individual serves as Director, Trustee, or General Partner (collectively, the "Funds"), hereby constitute and appoint Arthur J. Brown, Arthur C. Delibert, Stephanie A. Djinis, Robert C. Hacker, Thomas M. Leahey, Richard M. Phillips, and Dana L. Platt, each of them singly, my true and lawful attorneys-in-fact, with full power of substitution, and with full power to each of them, to sign for me and in my name in the appropriate capacities, all Registration Statements of the Funds on Form N-1A, Form N-8A or any successor thereto, any and all subsequent Amendments, Pre-Effective Amendments, or Post-Effective Amendments to said Registration Statements on Form N-1A or any successor thereto, any Registration Statements on Form N-14, and any supplements or other instruments in connection therewith, and generally to do all such things in my name and behalf in connection therewith as said attorneys-in-fact deem necessary or appropriate, to comply with the provisions of the Securities Act of 1933 and the Investment Company Act of 1940, and all related requirements of the Securities and Exchange Commission. I hereby ratify and confirm all that said attorneys-in-fact or their substitutes may do or cause to be done by virtue hereof. This power of attorney is effective for all documents filed on or after March 1, 1997. WITNESS my hand on the date set forth below. /s/Robert M. Gates March 6, 1997 Robert M. Gates EX-99.B5 2 Exhibit 5(k) MANAGEMENT CONTRACT between FIDELITY SELECT PORTFOLIOS: MEDICAL EQUIPMENT AND SYSTEMS PORTFOLIO and FIDELITY MANAGEMENT & RESEARCH COMPANY AGREEMENT made this 18th day of December, 1997, by and between Fidelity Select Portfolios, a Massachusetts business trust which may issue one or more series of shares of beneficial interest (hereinafter called the "Fund"), on behalf of Medical Equipment and Systems Portfolio (hereinafter called the "Portfolio"), and Fidelity Management & Research Company, a Massachusetts corporation (hereinafter called the "Adviser") as set forth in its entirety below. 1. (a) Investment Advisory Services. The Adviser undertakes to act as investment adviser of the Portfolio and shall, subject to the supervision of the Fund's Board of Trustees, direct the investments of the Portfolio in accordance with the investment objective, policies and limitations as provided in the Portfolio's Prospectus or other governing instruments, as amended from time to time, the Investment Company Act of 1940 and rules thereunder, as amended from time to time (the "1940 Act"), and such other limitations as the Portfolio may impose by notice in writing to the Adviser. The Adviser shall also furnish for the use of the Portfolio office space and all necessary office facilities, equipment and personnel for servicing the investments of the Portfolio; and shall pay the salaries and fees of all officers of the Fund, of all Trustees of the Fund who are "interested persons" of the Fund or of the Adviser and of all personnel of the Fund or the Adviser performing services relating to research, statistical and investment activities. The Adviser is authorized, in its discretion and without prior consultation with the Portfolio, to buy, sell, lend and otherwise trade in any stocks, bonds and other securities and investment instruments on behalf of the Portfolio. The investment policies and all other actions of the Portfolio are and shall at all times be subject to the control and direction of the Fund's Board of Trustees. (b) Management Services. The Adviser shall perform (or arrange for the performance by its affiliates of) the management and administrative services necessary for the operation of the Fund. The Adviser shall, subject to the supervision of the Board of Trustees, perform various services for the Portfolio, including but not limited to: (i) providing the Portfolio with office space, equipment and facilities (which may be its own) for maintaining its organization; (ii) on behalf of the Portfolio, supervising relations with, and monitoring the performance of, custodians, depositories, transfer and pricing agents, accountants, attorneys, underwriters, brokers and dealers, insurers and other persons in any capacity deemed to be necessary or desirable; (iii) preparing all general shareholder communications, including shareholder reports; (iv) conducting shareholder relations; (v) maintaining the Fund's existence and its records; (vi) during such times as shares are publicly offered, maintaining the registration and qualification of the Portfolio's shares under federal and state law; and (vii) investigating the development of and developing and implementing, if appropriate, management and shareholder services designed to enhance the value or convenience of the Portfolio as an investment vehicle. The Adviser shall also furnish such reports, evaluations, information or analyses to the Fund as the Fund's Board of Trustees may request from time to time or as the Adviser may deem to be desirable. The Adviser shall make recommendations to the Fund's Board of Trustees with respect to Fund policies, and shall carry out such policies as are adopted by the Trustees. The Adviser shall, subject to review by the Board of Trustees, furnish such other services as the Adviser shall from time to time determine to be necessary or useful to perform its obligations under this Contract. (c) The Adviser shall place all orders for the purchase and sale of portfolio securities for the Portfolio's account with brokers or dealers selected by the Adviser, which may include brokers or dealers affiliated with the Adviser. The Adviser shall use its best efforts to seek to execute portfolio transactions at prices which are advantageous to the Portfolio and at commission rates which are reasonable in relation to the benefits received. In selecting brokers or dealers qualified to execute a particular transaction, brokers or dealers may be selected who also provide brokerage and research services (as those terms are defined in Section 28(e) of the Securities Exchange Act of 1934) to the Portfolio and/or the other accounts over which the Adviser or its affiliates exercise investment discretion. The Adviser is authorized to pay a broker or dealer who provides such brokerage and research services a commission for executing a portfolio transaction for the Portfolio which is in excess of the amount of commission another broker or dealer would have charged for effecting that transaction if the Adviser determines in good faith that such amount of commission is reasonable in relation to the value of the brokerage and research services provided by such broker or dealer. This determination may be viewed in terms of either that particular transaction or the overall responsibilities which the Adviser and its affiliates have with respect to accounts over which they exercise investment discretion. The Trustees of the Fund shall periodically review the commissions paid by the Portfolio to determine if the commissions paid over representative periods of time were reasonable in relation to the benefits to the Portfolio. The Adviser shall, in acting hereunder, be an independent contractor. The Adviser shall not be an agent of the Portfolio. 2. It is understood that the Trustees, officers and shareholders of the Fund are or may be or become interested in the Adviser as directors, officers or otherwise and that directors, officers and stockholders of the Adviser are or may be or become similarly interested in the Fund, and that the Adviser may be or become interested in the Fund as a shareholder or otherwise. 3. The Adviser will be compensated on the following basis for the services and facilities to be furnished hereunder. The Adviser shall receive a monthly management fee, payable monthly as soon as practicable after the last day of each month, composed of a Group Fee and an Individual Fund Fee. (a) Group Fee Rate. The Group Fee Rate shall be based upon the monthly average of the net assets of the registered investment companies having Advisory and Service or Management Contracts with the Adviser (computed in the manner set forth in the fund's Declaration of Trust or other organizational document) determined as of the close of business on each business day throughout the month. The Group Fee Rate shall be determined on a cumulative basis pursuant to the following schedule: Average Net Assets Annualized Fee Rate (for each level) 0 - $ 3 billion .5200% 3 - 6 .4900 6 - 9 .4600 9 - 12 .4300 12 - 15 .4000 15 - 18 .3850 18 - 21 .3700 21 - 24 .3600 24 - 30 .3500 30 - 36 .3450 36 - 42 .3400 42 - 48 .3350 48 - 66 .3250 66 - 84 .3200 84 - 102 .3150 102 - 138 .3100 138 - 174 .3050 174 - 210 .3000 210 - 246 .2950 246 - 282 .2900 282 - 318 .2850 318 - 354 .2800 354 - 390 .2750 390 - 426 .2700 426 - 462 .2650 462 - 498 .2600 498 - 534 .2550 Over - 534 .2500 (b) Individual Fund Fee Rate. The Individual Fund Fee Rate shall be .30%. The sum of the Group Fee Rate, calculated as described above to the nearest millionth, and the Individual Fund Fee Rate shall constitute the Annual Management Fee Rate. One-twelfth of the Annual Management Fee Rate shall be applied to the average of the net assets of the Portfolio (computed in the manner set forth in the Fund's Declaration of Trust or other organizational document) determined as of the close of business on each business day throughout the month. (c) In case of termination of this Contract during any month, the fee for that month shall be reduced proportionately on the basis of the number of business days during which it is in effect, and the fee computed upon the average net assets for the business days it is so in effect for that month. 4. It is understood that the Portfolio will pay all its expenses, which expenses payable by the Portfolio shall include, without limitation, (i) interest and taxes; (ii) brokerage commissions and other costs in connection with the purchase or sale of securities and other investment instruments; (iii) fees and expenses of the Fund's Trustees other than those who are "interested persons" of the Fund or the Adviser; (iv) legal and audit expenses; (v) custodian, registrar and transfer agent fees and expenses; (vi) fees and expenses related to the registration and qualification of the Fund and the Portfolio's shares for distribution under state and federal securities laws; (vii) expenses of printing and mailing reports and notices and proxy material to shareholders of the Portfolio; (viii) all other expenses incidental to holding meetings of the Portfolio's shareholders, including proxy solicitations therefor; (ix) a pro rata share, based on relative net assets of the Portfolio and other registered investment companies having Advisory and Service or Management Contracts with the Adviser, of 50% of insurance premiums for fidelity and other coverage; (x) its proportionate share of association membership dues; (xi) expenses of typesetting for printing Prospectuses and Statements of Additional Information and supplements thereto; (xii) expenses of printing and mailing Prospectuses and Statements of Additional Information and supplements thereto sent to existing shareholders; and (xiii) such non-recurring or extraordinary expenses as may arise, including those relating to actions, suits or proceedings to which the Portfolio is a party and the legal obligation which the Portfolio may have to indemnify the Fund's Trustees and officers with respect thereto. 5. The services of the Adviser to the Portfolio are not to be deemed exclusive, the Adviser being free to render services to others and engage in other activities, provided, however, that such other services and activities do not, during the term of this Contract, interfere, in a material manner, with the Adviser's ability to meet all of its obligations with respect to rendering services to the Portfolio hereunder. In the absence of willful misfeasance, bad faith, gross negligence or reckless disregard of obligations or duties hereunder on the part of the Adviser, the Adviser shall not be subject to liability to the Portfolio or to any shareholder of the Portfolio for any act or omission in the course of, or connected with, rendering services hereunder or for any losses that may be sustained in the purchase, holding or sale of any security or other investment instrument. 6. (a) Subject to prior termination as provided in sub-paragraph (d) of this paragraph 6, this Contract shall continue in force until July 31, 1998 and indefinitely thereafter, but only so long as the continuance after such date shall be specifically approved at least annually by vote of the Trustees of the Fund or by vote of a majority of the outstanding voting securities of the Portfolio. (b) This Contract may be modified by mutual consent subject to the provisions of Section 15 of the 1940 Act, as modified by or interpreted by any applicable order or orders of the Securities and Exchange Commission (the "Commission") or any rules or regulations adopted by, or interpretative releases of, the Commission. (c) In addition to the requirements of sub-paragraphs (a) and (b) of this paragraph 6, the terms of any continuance or modification of this Contract must have been approved by the vote of a majority of those Trustees of the Fund who are not parties to the Contract or interested persons of any such party, cast in person at a meeting called for the purpose of voting on such approval. (d) Either party hereto may, at any time on sixty (60) days' prior written notice to the other, terminate this Contract, without payment of any penalty, by action of its Trustees or Board of Directors, as the case may be, or with respect to the Portfolio by vote of a majority of the outstanding voting securities of the Portfolio. This Contract shall terminate automatically in the event of its assignment. 7. The Adviser is hereby expressly put on notice of the limitation of shareholder liability as set forth in the Fund's Declaration of Trust or other organizational document and agrees that the obligations assumed by the Fund pursuant to this Contract shall be limited in all cases to the Portfolio and its assets, and the Adviser shall not seek satisfaction of any such obligation from the shareholders or any shareholder of the Portfolio or any other Portfolios of the Fund. In addition, the Adviser shall not seek satisfaction of any such obligations from the Trustees or any individual Trustee. The Adviser understands that the rights and obligations of any Portfolio under the Declaration of Trust or other organizational document are separate and distinct from those of any and all other Portfolios. 8. This Agreement shall be governed by, and construed in accordance with, the laws of the Commonwealth of Massachusetts, without giving effect to the choice of laws provisions thereof. The terms "vote of a majority of the outstanding voting securities," "assignment," and "interested persons," when used herein, shall have the respective meanings specified in the 1940 Act, as now in effect or as hereafter amended, and subject to such orders as may be granted by the Commission. IN WITNESS WHEREOF the parties have caused this instrument to be signed in their behalf by their respective officers thereunto duly authorized, and their respective seals to be hereunto affixed, all as of the date written above. FIDELITY SELECT PORTFOLIOS on behalf of Medical Equipment and Systems Portfolio By /s/Robert C. Pozen Robert C. Pozen Senior Vice President FIDELITY MANAGEMENT & RESEARCH COMPANY By /s/Robert C. Pozen Robert C. Pozen President EX-99.B5 3 Exhibit 5(n) FORM OF SUB-ADVISORY AGREEMENT BETWEEN FIDELITY MANAGEMENT & RESEARCH COMPANY AND FIDELITY MANAGEMENT & RESEARCH (U.K.) INC. AND FIDELITY SELECT PORTFOLIOS ON BEHALF OF MEDICAL EQUIPMENT AND SYSTEMS PORTFOLIO AGREEMENT made this _th day of __, 199_, by and between Fidelity Management & Research Company, a Massachusetts corporation with principal offices at 82 Devonshire Street, Boston, Massachusetts (hereinafter called the "Advisor"); Fidelity Management & Research (U.K.) Inc. (hereinafter called the "Sub-Advisor"); and Fidelity Select Portfolios, a Massachusetts business trust which may issue one or more series of shares of beneficial interest (hereinafter called the "Trust") on behalf of Medical Equipment and Systems Portfolio (hereinafter called the "Portfolio"). WHEREAS the Trust and the Advisor have entered into a Management Contract on behalf of the Portfolio, pursuant to which the Advisor is to act as investment manager of the Portfolio; and WHEREAS the Sub-Advisor and its subsidiaries and other affiliated persons have personnel in various locations throughout the world and have been formed in part for the purpose of researching and compiling information and recommendations with respect to the economies of various countries, and securities of issuers located in such countries, and providing investment advisory services in connection therewith; NOW, THEREFORE, in consideration of the premises and the mutual promises hereinafter set forth, the Trust, the Advisor and the Sub-Advisor agree as follows: 1. Duties: The Advisor may, in its discretion, appoint the Sub-Advisor to perform one or more of the following services with respect to all or a portion of the investments of the Portfolio. The services and the portion of the investments of the Portfolio to be advised or managed by the Sub-Advisor shall be as agreed upon from time to time by the Advisor and the Sub-Advisor. The Sub-Advisor shall pay the salaries and fees of all personnel of the Sub-Advisor performing services for the Portfolio relating to research, statistical and investment activities. (a) INVESTMENT ADVICE: If and to the extent requested by the Advisor, the Sub-Advisor shall provide investment advice to the Portfolio and the Advisor with respect to all or a portion of the investments of the Portfolio, and in connection with such advice shall furnish the Portfolio and the Advisor such factual information, research reports and investment recommendations as the Advisor may reasonably require. Such information may include written and oral reports and analyses. (b) INVESTMENT MANAGEMENT: If and to the extent requested by the Advisor, the Sub-Advisor shall, subject to the supervision of the Advisor, manage all or a portion of the investments of the Portfolio in accordance with the investment objective, policies and limitations provided in the Portfolio's Prospectus or other governing instruments, as amended from time to time, the Investment Company Act of 1940 (the "1940 Act") and rules thereunder, as amended from time to time, and such other limitations as the Trust or Advisor may impose with respect to the Portfolio by notice to the Sub-Advisor. With respect to the portion of the investments of the Portfolio under its management, the Sub-Advisor is authorized to make investment decisions on behalf of the Portfolio with regard to any stock, bond, other security or investment instrument, and to place orders for the purchase and sale of such securities through such broker-dealers as the Sub-Advisor may select. The Sub-Advisor may also be authorized, but only to the extent such duties are delegated in writing by the Advisor, to provide additional investment management services to the Portfolio, including but not limited to services such as managing foreign currency investments, purchasing and selling or writing futures and options contracts, borrowing money or lending securities on behalf of the Portfolio. All investment management and any other activities of the Sub-Advisor shall at all times be subject to the control and direction of the Advisor and the Trust's Board of Trustees. (c) SUBSIDIARIES AND AFFILIATES: The Sub-Advisor may perform any or all of the services contemplated by this Agreement directly or through such of its subsidiaries or other affiliated persons as the Sub-Advisor shall determine; provided, however, that performance of such services through such subsidiaries or other affiliated persons shall have been approved by the Trust to the extent required pursuant to the 1940 Act and rules thereunder. 2. Information to be Provided to the Trust and the Advisor: The Sub-Advisor shall furnish such reports, evaluations, information or analyses to the Trust and the Advisor as the Trust's Board of Trustees or the Advisor may reasonably request from time to time, or as the Sub-Advisor may deem to be desirable. 3. Brokerage: In connection with the services provided under subparagraph (b) of paragraph 1 of this Agreement, the Sub-Advisor shall place all orders for the purchase and sale of portfolio securities for the Portfolio's account with brokers or dealers selected by the Sub-Advisor, which may include brokers or dealers affiliated with the Advisor or Sub-Advisor. The Sub-Advisor shall use its best efforts to seek to execute portfolio transactions at prices which are advantageous to the Portfolio and at commission rates which are reasonable in relation to the benefits received. In selecting brokers or dealers qualified to execute a particular transaction, brokers or dealers may be selected who also provide brokerage and research services (as those terms are defined in Section 28(e) of the Securities Exchange Act of l934) to the Portfolio and/or to the other accounts over which the Sub-Advisor or Advisor exercise investment discretion. The Sub-Advisor is authorized to pay a broker or dealer who provides such brokerage and research services a commission for executing a portfolio transaction for the Portfolio which is in excess of the amount of commission another broker or dealer would have charged for effecting that transaction if the Sub-Advisor determines in good faith that such amount of commission is reasonable in relation to the value of the brokerage and research services provided by such broker or dealer. This determination may be viewed in terms of either that particular transaction or the overall responsibilities which the Sub-Advisor has with respect to accounts over which it exercises investment discretion. The Trustees of the Trust shall periodically review the commissions paid by the Portfolio to determine if the commissions paid over representative periods of time were reasonable in relation to the benefits to the Portfolio. 4. Compensation: The Advisor shall compensate the Sub-Advisor on the following basis for the services to be furnished hereunder. (a) INVESTMENT ADVISORY FEE: For services provided under subparagraph (a) of paragraph 1 of this Agreement, the Advisor agrees to pay the Sub-Advisor a monthly Sub-Advisory Fee. The Sub-Advisory Fee shall be equal to 110% of the Sub-Advisor's costs incurred in connection with rendering the services referred to in subparagraph (a) of paragraph 1 of this Agreement. The Sub-Advisory Fee shall not be reduced to reflect expense reimbursements or fee waivers by the Advisor, if any, in effect from time to time. (b) INVESTMENT MANAGEMENT FEE: For services provided under subparagraph (b) of paragraph 1 of this Agreement, the Advisor agrees to pay the Sub-Advisor a monthly Investment Management Fee. The Investment Management Fee shall be equal to: (i) 50% of the monthly management fee rate (including performance adjustments, if any) that the Portfolio is obligated to pay the Advisor under its Management Contract with the Advisor, multiplied by: (ii) the fraction equal to the net assets of the Portfolio as to which the Sub-Advisor shall have provided investment management services divided by the net assets of the Portfolio for that month. If in any fiscal year the aggregate expenses of the Portfolio exceed any applicable expense limitation imposed by any state or federal securities laws or regulations, and the Advisor waives all or a portion of its management fee or reimburses the Portfolio for expenses to the extent required to satisfy such limitation, the Investment Management Fee paid to the Sub-Advisor will be reduced by 50% of the amount of such waivers or reimbursements multiplied by the fraction determined in (ii). If the Sub-Advisor reduces its fees to reflect such waivers or reimbursements and the Advisor subsequently recovers all or any portion of such waivers or reimbursements, then the Sub-Advisor shall be entitled to receive from the Advisor a proportionate share of the amount recovered. To the extent that waivers and reimbursements by the Advisor required by such limitations are in excess of the Advisor's management fee, the Investment Management Fee paid to the Sub-Advisor will be reduced to zero for that month, but in no event shall the Sub-Advisor be required to reimburse the Advisor for all or a portion of such excess reimbursements. (c) PROVISION OF MULTIPLE SERVICES: If the Sub-Advisor shall have provided both investment advisory services under subparagraph (a) and investment management services under subparagraph (b) of paragraph (1) for the same portion of the investments of the Portfolio for the same period, the fees paid to the Sub-Advisor with respect to such investments shall be calculated exclusively under subparagraph (b) of this paragraph 4. 5. Expenses: It is understood that the Portfolio will pay all of its expenses other than those expressly stated to be payable by the Sub-Advisor hereunder or by the Advisor under the Management Contract with the Portfolio, which expenses payable by the Portfolio shall include, without limitation, (i) interest and taxes; (ii) brokerage commissions and other costs in connection with the purchase or sale of securities and other investment instruments; (iii) fees and expenses of the Trust's Trustees other than those who are "interested persons" of the Trust, the Sub-Advisor or the Advisor; (iv) legal and audit expenses; (v) custodian, registrar and transfer agent fees and expenses; (vi) fees and expenses related to the registration and qualification of the Trust and the Portfolio's shares for distribution under state and federal securities laws; (vii) expenses of printing and mailing reports and notices and proxy material to shareholders of the Portfolio; (viii) all other expenses incidental to holding meetings of the Portfolio's shareholders, including proxy solicitations therefore; (ix) a pro rata share, based on relative net assets of the Portfolio and other registered investment companies having Advisory and Service or Management Contracts with the Advisor, of 50% of insurance premiums for fidelity and other coverage; (x) its proportionate share of association membership dues; (xi) expenses of typesetting for printing Prospectuses and Statements of Additional Information and supplements thereto; (xii) expenses of printing and mailing Prospectuses and Statements of Additional Information and supplements thereto sent to existing shareholders; and (xiii) such non-recurring or extraordinary expenses as may arise, including those relating to actions, suits or proceedings to which the Portfolio is a party and the legal obligation which the Portfolio may have to indemnify the Trust's Trustees and officers with respect thereto. 6. Interested Persons: It is understood that Trustees, officers, and shareholders of the Trust are or may be or become interested in the Advisor or the Sub-Advisor as directors, officers or otherwise and that directors, officers and stockholders of the Advisor or the Sub-Advisor are or may be or become similarly interested in the Trust, and that the Advisor or the Sub-Advisor may be or become interested in the Trust as a shareholder or otherwise. 7. Services to Other Companies or Accounts: The services of the Sub-Advisor to the Advisor are not to be deemed to be exclusive, the Sub-Advisor being free to render services to others and engage in other activities, provided, however, that such other services and activities do not, during the term of this Agreement, interfere, in a material manner, with the Sub-Advisor's ability to meet all of its obligations hereunder. The Sub-Advisor shall for all purposes be an independent contractor and not an agent or employee of the Advisor or the Trust. 8. Standard of Care: In the absence of willful misfeasance, bad faith, gross negligence or reckless disregard of obligations or duties hereunder on the part of the Sub-Advisor, the Sub-Advisor shall not be subject to liability to the Advisor, the Trust or to any shareholder of the Portfolio for any act or omission in the course of, or connected with, rendering services hereunder or for any losses that may be sustained in the purchase, holding or sale of any security. 9. Duration and Termination of Agreement; Amendments: (a) Subject to prior termination as provided in subparagraph (d) of this paragraph 9, this Agreement shall continue in force until July 31, 1998 and indefinitely thereafter, but only so long as the continuance after such period shall be specifically approved at least annually by vote of the Trust's Board of Trustees or by vote of a majority of the outstanding voting securities of the Portfolio. (b) This Agreement may be modified by mutual consent of the Advisor, the Sub-Advisor and the Portfolio subject to the provisions of Section 15 of the 1940 Act, as modified by or interpreted by any applicable order or orders of the Securities and Exchange Commission (the "Commission") or any rules or regulations adopted by, or interpretative releases of, the Commission. (c) In addition to the requirements of subparagraphs (a) and (b) of this paragraph 9, the terms of any continuance or modification of this Agreement must have been approved by the vote of a majority of those Trustees of the Trust who are not parties to this Agreement or interested persons of any such party, cast in person at a meeting called for the purpose of voting on such approval. (d) Either the Advisor, the Sub-Advisor or the Portfolio may, at any time on sixty (60) days' prior written notice to the other parties, terminate this Agreement, without payment of any penalty, by action of its Board of Trustees or Directors, or with respect to the Portfolio by vote of a majority of its outstanding voting securities. This Agreement shall terminate automatically in the event of its assignment. 10. Limitation of Liability: The Sub-Advisor is hereby expressly put on notice of the limitation of shareholder liability as set forth in the Declaration of Trust or other organizational document of the Trust and agrees that any obligations of the Trust or the Portfolio arising in connection with this Agreement shall be limited in all cases to the Portfolio and its assets, and the Sub-Advisor shall not seek satisfaction of any such obligation from the shareholders or any shareholder of the Portfolio. Nor shall the Sub-Advisor seek satisfaction of any such obligation from the Trustees or any individual Trustee. 11. Governing Law: This Agreement shall be governed by, and construed in accordance with, the laws of the Commonwealth of Massachusetts, without giving effect to the choice of laws provisions thereof. The terms "registered investment company," "vote of a majority of the outstanding voting securities," "assignment," and "interested persons," when used herein, shall have the respective meanings specified in the 1940 Act as now in effect or as hereafter amended. IN WITNESS WHEREOF the parties hereto have caused this instrument to be signed in their behalf by their respective officers thereunto duly authorized, and their respective seals to be hereunto affixed, all as of the date written above. [SIGNATURE LINES OMITTED.] EX-99.B5 4 Exhibit 5(o) FORM OF SUB-ADVISORY AGREEMENT BETWEEN FIDELITY MANAGEMENT & RESEARCH COMPANY AND FIDELITY MANAGEMENT & RESEARCH (FAR EAST) INC. AND FIDELITY SELECT PORTFOLIOS ON BEHALF OF MEDICAL EQUIPMENT AND SYSTEMS PORTFOLIO AGREEMENT made this _th day of __, 199_, by and between Fidelity Management & Research Company, a Massachusetts corporation with principal offices at 82 Devonshire Street, Boston, Massachusetts (hereinafter called the "Advisor"); Fidelity Management & Research (Far East) Inc. (hereinafter called the "Sub-Advisor"); and Fidelity Select Portfolios, a Massachusetts business trust which may issue one or more series of shares of beneficial interest (hereinafter called the "Trust") on behalf of Medical Equipment and Systems Portfolio (hereinafter called the "Portfolio"). WHEREAS the Trust and the Advisor have entered into a Management Contract on behalf of the Portfolio, pursuant to which the Advisor is to act as investment manager of the Portfolio; and WHEREAS the Sub-Advisor and its subsidiaries and other affiliated persons have personnel in various locations throughout the world and have been formed in part for the purpose of researching and compiling information and recommendations with respect to the economies of various countries, and securities of issuers located in such countries, and providing investment advisory services in connection therewith; NOW, THEREFORE, in consideration of the premises and the mutual promises hereinafter set forth, the Trust, the Advisor and the Sub-Advisor agree as follows: 1. Duties: The Advisor may, in its discretion, appoint the Sub-Advisor to perform one or more of the following services with respect to all or a portion of the investments of the Portfolio. The services and the portion of the investments of the Portfolio to be advised or managed by the Sub-Advisor shall be as agreed upon from time to time by the Advisor and the Sub-Advisor. The Sub-Advisor shall pay the salaries and fees of all personnel of the Sub-Advisor performing services for the Portfolio relating to research, statistical and investment activities. (a) INVESTMENT ADVICE: If and to the extent requested by the Advisor, the Sub-Advisor shall provide investment advice to the Portfolio and the Advisor with respect to all or a portion of the investments of the Portfolio, and in connection with such advice shall furnish the Portfolio and the Advisor such factual information, research reports and investment recommendations as the Advisor may reasonably require. Such information may include written and oral reports and analyses. (b) INVESTMENT MANAGEMENT: If and to the extent requested by the Advisor, the Sub-Advisor shall, subject to the supervision of the Advisor, manage all or a portion of the investments of the Portfolio in accordance with the investment objective, policies and limitations provided in the Portfolio's Prospectus or other governing instruments, as amended from time to time, the Investment Company Act of 1940 (the "1940 Act") and rules thereunder, as amended from time to time, and such other limitations as the Trust or Advisor may impose with respect to the Portfolio by notice to the Sub-Advisor. With respect to the portion of the investments of the Portfolio under its management, the Sub-Advisor is authorized to make investment decisions on behalf of the Portfolio with regard to any stock, bond, other security or investment instrument, and to place orders for the purchase and sale of such securities through such broker-dealers as the Sub-Advisor may select. The Sub-Advisor may also be authorized, but only to the extent such duties are delegated in writing by the Advisor, to provide additional investment management services to the Portfolio, including but not limited to services such as managing foreign currency investments, purchasing and selling or writing futures and options contracts, borrowing money, or lending securities on behalf of the Portfolio. All investment management and any other activities of the Sub-Advisor shall at all times be subject to the control and direction of the Advisor and the Trust's Board of Trustees. (c) SUBSIDIARIES AND AFFILIATES: The Sub-Advisor may perform any or all of the services contemplated by this Agreement directly or through such of its subsidiaries or other affiliated persons as the Sub-Advisor shall determine; provided, however, that performance of such services through such subsidiaries or other affiliated persons shall have been approved by the Trust to the extent required pursuant to the 1940 Act and rules thereunder. 2. Information to be Provided to the Trust and the Advisor: The Sub-Advisor shall furnish such reports, evaluations, information or analyses to the Trust and the Advisor as the Trust's Board of Trustees or the Advisor may reasonably request from time to time, or as the Sub-Advisor may deem to be desirable. 3. Brokerage: In connection with the services provided under subparagraph (b) of paragraph 1 of this Agreement, the Sub-Advisor shall place all orders for the purchase and sale of portfolio securities for the Portfolio's account with brokers or dealers selected by the Sub-Advisor, which may include brokers or dealers affiliated with the Advisor or Sub-Advisor. The Sub-Advisor shall use its best efforts to seek to execute portfolio transactions at prices which are advantageous to the Portfolio and at commission rates which are reasonable in relation to the benefits received. In selecting brokers or dealers qualified to execute a particular transaction, brokers or dealers may be selected who also provide brokerage and research services (as those terms are defined in Section 28(e) of the Securities Exchange Act of l934) to the Portfolio and/or to the other accounts over which the Sub-Advisor or Advisor exercise investment discretion. The Sub-Advisor is authorized to pay a broker or dealer who provides such brokerage and research services a commission for executing a portfolio transaction for the Portfolio which is in excess of the amount of commission another broker or dealer would have charged for effecting that transaction if the Sub-Advisor determines in good faith that such amount of commission is reasonable in relation to the value of the brokerage and research services provided by such broker or dealer. This determination may be viewed in terms of either that particular transaction or the overall responsibilities which the Sub-Advisor has with respect to accounts over which it exercises investment discretion. The Trustees of the Trust shall periodically review the commissions paid by the Portfolio to determine if the commissions paid over representative periods of time were reasonable in relation to the benefits to the Portfolio. 4. Compensation: The Advisor shall compensate the Sub-Advisor on the following basis for the services to be furnished hereunder. (a) INVESTMENT ADVISORY FEE: For services provided under subparagraph (a) of paragraph 1 of this Agreement, the Advisor agrees to pay the Sub-Advisor a monthly Sub-Advisory Fee. The Sub-Advisory Fee shall be equal to 105% of the Sub-Advisor's costs incurred in connection with rendering the services referred to in subparagraph (a) of paragraph 1 of this Agreement. The Sub-Advisory Fee shall not be reduced to reflect expense reimbursements or fee waivers by the Advisor, if any, in effect from time to time. (b) INVESTMENT MANAGEMENT FEE: For services provided under subparagraph (b) of paragraph 1 of this Agreement, the Advisor agrees to pay the Sub-Advisor a monthly Investment Management Fee. The Investment Management Fee shall be equal to: (i) 50% of the monthly management fee rate (including performance adjustments, if any) that the Portfolio is obligated to pay the Advisor under its Management Contract with the Advisor, multiplied by: (ii) the fraction equal to the net assets of the Portfolio as to which the Sub-Advisor shall have provided investment management services divided by the net assets of the Portfolio for that month. If in any fiscal year the aggregate expenses of the Portfolio exceed any applicable expense limitation imposed by any state or federal securities laws or regulations, and the Advisor waives all or a portion of its management fee or reimburses the Portfolio for expenses to the extent required to satisfy such limitation, the Investment Management Fee paid to the Sub-Advisor will be reduced by 50% of the amount of such waivers or reimbursements multiplied by the fraction determined in (ii). If the Sub-Advisor reduces its fees to reflect such waivers or reimbursements and the Advisor subsequently recovers all or any portion of such waivers and reimbursements, then the Sub-Advisor shall be entitled to receive from the Advisor a proportionate share of the amount recovered. To the extent that waivers and reimbursements by the Advisor required by such limitations are in excess of the Advisor's management fee, the Investment Management Fee paid to the Sub-Advisor will be reduced to zero for that month, but in no event shall the Sub-Advisor be required to reimburse the Advisor for all or a portion of such excess reimbursements. (c) PROVISION OF MULTIPLE SERVICES: If the Sub-Advisor shall have provided both investment advisory services under subparagraph (a) and investment management services under subparagraph (b) of paragraph 1 for the same portion of the investments of the Portfolio for the same period, the fees paid to the Sub-Advisor with respect to such investments shall be calculated exclusively under subparagraph (b) of this paragraph 4. 5. Expenses: It is understood that the Portfolio will pay all of its expenses other than those expressly stated to be payable by the Sub-Advisor hereunder or by the Advisor under the Management Contract with the Portfolio, which expenses payable by the Portfolio shall include, without limitation, (i) interest and taxes; (ii) brokerage commissions and other costs in connection with the purchase or sale of securities and other investment instruments; (iii) fees and expenses of the Trust's Trustees other than those who are "interested persons" of the Trust, the Sub-Advisor or the Advisor; (iv) legal and audit expenses; (v) custodian, registrar and transfer agent fees and expenses; (vi) fees and expenses related to the registration and qualification of the Trust and the Portfolio's shares for distribution under state and federal securities laws; (vii) expenses of printing and mailing reports and notices and proxy material to shareholders of the Portfolio; (viii) all other expenses incidental to holding meetings of the Portfolio's shareholders, including proxy solicitations therefore; (ix) a pro rata share, based on relative net assets of the Portfolio and other registered investment companies having Advisory and Service or Management Contracts with the Advisor, of 50% of insurance premiums for fidelity and other coverage; (x) its proportionate share of association membership dues; (xi) expenses of typesetting for printing Prospectuses and Statements of Additional Information and supplements thereto; (xii) expenses of printing and mailing Prospectuses and Statements of Additional Information and supplements thereto sent to existing shareholders; and (xiii) such non-recurring or extraordinary expenses as may arise, including those relating to actions, suits or proceedings to which the Portfolio is a party and the legal obligation which the Portfolio may have to indemnify the Trust's Trustees and officers with respect thereto. 6. Interested Persons: It is understood that Trustees, officers, and shareholders of the Trust are or may be or become interested in the Advisor or the Sub-Advisor as directors, officers or otherwise and that directors, officers and stockholders of the Advisor or the Sub-Advisor are or may be or become similarly interested in the Trust, and that the Advisor or the Sub-Advisor may be or become interested in the Trust as a shareholder or otherwise. 7. Services to Other Companies or Accounts: The services of the Sub-Advisor to the Advisor are not to be deemed to be exclusive, the Sub-Advisor being free to render services to others and engage in other activities, provided, however, that such other services and activities do not, during the term of this Agreement, interfere, in a material manner, with the Sub-Advisor's ability to meet all of its obligations hereunder. The Sub-Advisor shall for all purposes be an independent contractor and not an agent or employee of the Advisor or the Trust. 8. Standard of Care: In the absence of willful misfeasance, bad faith, gross negligence or reckless disregard of obligations or duties hereunder on the part of the Sub-Advisor, the Sub-Advisor shall not be subject to liability to the Advisor, the Trust or to any shareholder of the Portfolio for any act or omission in the course of, or connected with, rendering services hereunder or for any losses that may be sustained in the purchase, holding or sale of any security. 9. Duration and Termination of Agreement; Amendments: (a) Subject to prior termination as provided in subparagraph (d) of this paragraph 9, this Agreement shall continue in force until July 31, 1998 and indefinitely thereafter, but only so long as the continuance after such period shall be specifically approved at least annually by vote of the Trust's Board of Trustees or by vote of a majority of the outstanding voting securities of the Portfolio. (b) This Agreement may be modified by mutual consent of the Advisor, the Sub-Advisor and the Portfolio subject to the provisions of Section 15 of the 1940 Act, as modified by or interpreted by any applicable order or orders of the Securities and Exchange Commission (the "Commission") or any rules or regulations adopted by, or interpretative releases of, the Commission. (c) In addition to the requirements of subparagraphs (a) and (b) of this paragraph 9, the terms of any continuance or modification of this Agreement must have been approved by the vote of a majority of those Trustees of the Trust who are not parties to this Agreement or interested persons of any such party, cast in person at a meeting called for the purpose of voting on such approval. (d) Either the Advisor, the Sub-Advisor or the Portfolio may, at any time on sixty (60) days' prior written notice to the other parties, terminate this Agreement, without payment of any penalty, by action of its Board of Trustees or Directors, or with respect to the Portfolio by vote of a majority of its outstanding voting securities. This Agreement shall terminate automatically in the event of its assignment. 10. Limitation of Liability: The Sub-Advisor is hereby expressly put on notice of the limitation of shareholder liability as set forth in the Declaration of Trust or other organizational document of the Trust and agrees that any obligations of the Trust or the Portfolio arising in connection with this Agreement shall be limited in all cases to the Portfolio and its assets, and the Sub-Advisor shall not seek satisfaction of any such obligation from the shareholders or any shareholder of the Portfolio. Nor shall the Sub-Advisor seek satisfaction of any such obligation from the Trustees or any individual Trustee. 11. Governing Law: This Agreement shall be governed by, and construed in accordance with, the laws of the Commonwealth of Massachusetts, without giving effect to the choice of laws provisions thereof. The terms "registered investment company," "vote of a majority of the outstanding voting securities," "assignment," and "interested persons," when used herein, shall have the respective meanings specified in the 1940 Act as now in effect or as hereafter amended. IN WITNESS WHEREOF the parties hereto have caused this instrument to be signed in their behalf by their respective officers thereunto duly authorized, and their respective seals to be hereunto affixed, all as of the date written above. [SIGNATURE LINES OMITTED] EX-99.B6 5 Exhibit 6(n) GENERAL DISTRIBUTION AGREEMENT between FIDELITY SELECT PORTFOLIOS and FIDELITY DISTRIBUTORS CORPORATION Agreement made this 18th day of December, 1997, between Fidelity Select Portfolios, a Massachusetts business trust having its principal place of business in Boston, Massachusetts and which may issue one or more series of beneficial interest ("Issuer"), with respect to shares of Medical Equipment and Systems Portfolio, a series of the Issuer, and Fidelity Distributors Corporation, a Massachusetts corporation having its principal place of business in Boston, Massachusetts ("Distributors"). In consideration of the mutual promises and undertakings herein contained, the parties agree as follows: 1. Sale of Shares - The Issuer grants to Distributors the right to sell shares on behalf of the Issuer during the term of this Agreement and subject to the registration requirements of the Securities Act of 1933, as amended ("1933 Act"), and of the laws governing the sale of securities in the various states ("Blue Sky Laws") under the following terms and conditions: Distributors (i) shall have the right to sell, as agent on behalf of the Issuer, shares authorized for issue and registered under the 1933 Act, and (ii) may sell shares under offers of exchange, if available, between and among the funds advised by Fidelity Management & Research Company ("FMR") or any of its affiliates. 2. Sale of Shares by the Issuer - The rights granted to Distributors shall be nonexclusive in that the Issuer reserves the right to sell its shares to investors on applications received and accepted by the Issuer. Further, the Issuer reserves the right to issue shares in connection with the merger or consolidation, or acquisition by the Issuer through purchase or otherwise, with any other investment company, trust, or personal holding company. 3. Shares Covered by this Agreement - This Agreement shall apply to unissued shares of the Issuer, shares of the Issuer held in its treasury in the event that in the discretion of the Issuer treasury shares shall be sold, and shares of the Issuer repurchased for resale. 4. Public Offering Price - Except as otherwise noted in the Issuer's current Prospectus and/or Statement of Additional Information, all shares sold to investors by Distributors or the Issuer will be sold at the public offering price. The public offering price for all accepted subscriptions will be the net asset value per share, as determined in the manner described in the Issuer's current Prospectus and/or Statement of Additional Information, plus a sales charge (if any) described in the Issuer's current Prospectus and/or Statement of Additional Information. The Issuer shall in all cases receive the net asset value per share on all sales. If a sales charge is in effect, Distributors shall have the right subject to such rules or regulations of the Securities and Exchange Commission as may then be in effect pursuant to Section 22 of the Investment Company Act of 1940 to pay a portion of the sales charge to dealers who have sold shares of the Issuer. If a fee in connection with shareholder redemptions is in effect, the Issuer shall collect the fee on behalf of Distributors and, unless otherwise agreed upon by the Issuer and Distributors, Distributors shall be entitled to receive all of such fees. 5. Suspension of Sales - If and whenever the determination of net asset value is suspended and until such suspension is terminated, no further orders for shares shall be processed by Distributors except such unconditional orders as may have been placed with Distributors before it had knowledge of the suspension. In addition, the Issuer reserves the right to suspend sales and Distributors' authority to process orders for shares on behalf of the Issuer if, in the judgment of the Issuer, it is in the best interests of the Issuer to do so. Suspension will continue for such period as may be determined by the Issuer. 6. Solicitation of Sales - In consideration of these rights granted to Distributors, Distributors agrees to use all reasonable efforts, consistent with its other business, to secure purchasers for shares of the Issuer. This shall not prevent Distributors from entering into like arrangements (including arrangements involving the payment of underwriting commissions) with other issuers. This does not obligate Distributors to register as a broker or dealer under the Blue Sky Laws of any jurisdiction in which it is not now registered or to maintain its registration in any jurisdiction in which it is now registered. If a sales charge is in effect, Distributors shall have the right to enter into sales agreements with dealers of its choice for the sale of shares of the Issuer to the public at the public offering price only and fix in such agreements the portion of the sales charge which may be retained by dealers, provided that the Issuer shall approve the form of the dealer agreement and the dealer discounts set forth therein and shall evidence such approval by filing said form of dealer agreement and amendments thereto as an exhibit to its currently effective Registration Statement under the 1933 Act. 7. Authorized Representations - Distributors is not authorized by the Issuer to give any information or to make any representations other than those contained in the appropriate registration statements or Prospectuses and Statements of Additional Information filed with the Securities and Exchange Commission under the 1933 Act (as these registration statements, Prospectuses and Statements of Additional Information may be amended from time to time), or contained in shareholder reports or other material that may be prepared by or on behalf of the Issuer for Distributors' use. This shall not be construed to prevent Distributors from preparing and distributing sales literature or other material as it may deem appropriate. 8. Portfolio Securities - Portfolio securities of the Issuer may be bought or sold by or through Distributors, and Distributors may participate directly or indirectly in brokerage commissions or "spreads" for transactions in portfolio securities of the Issuer. 9. Registration of Shares - The Issuer agrees that it will take all action necessary to register shares under the 1933 Act (subject to the necessary approval of its shareholders) so that there will be available for sale the number of shares Distributors may reasonably be expected to sell. The Issuer shall make available to Distributors such number of copies of its currently effective Prospectus and Statement of Additional Information as Distributors may reasonably request. The Issuer shall furnish to Distributors copies of all information, financial statements and other papers which Distributors may reasonably request for use in connection with the distribution of shares of the Issuer. 10. Expenses - The Issuer shall pay all fees and expenses (a) in connection with the preparation, setting in type and filing of any registration statement, Prospectus and Statement of Additional Information under the 1933 Act and amendments for the issue of its shares, (b) in connection with the registration and qualification of shares for sale in the various states in which the Board of Trustees of the Issuer shall determine it advisable to qualify such shares for sale (including registering the Issuer as a broker or dealer or any officer of the Issuer as agent or salesman in any state), (c) of preparing, setting in type, printing and mailing any report or other communication to shareholders of the Issuer in their capacity as such, and (d) of preparing, setting in type, printing and mailing Prospectuses, Statements of Additional Information and any supplements thereto sent to existing shareholders. It is recognized by the Issuer that FMR may make payment to Distributors with respect to any expenses incurred in the distribution of shares of the Issuer, such payments payable from the past profits or other resources of FMR including management fees paid to it by the Issuer. 11. Indemnification - The Issuer agrees to indemnify and hold harmless Distributors and each of its directors and officers and each person, if any, who controls Distributors within the meaning of Section 15 of the 1933 Act against any loss, liability, claim, damages or expense (including the reasonable cost of investigating or defending any alleged loss, liability, claim, damages, or expense and reasonable counsel fees incurred in connection therewith) arising by reason of any person acquiring any shares, based upon the ground that the registration statement, Prospectus, Statement of Additional Information, shareholder reports or other information filed or made public by the Issuer (as from time to time amended) included an untrue statement of a material fact or omitted to state a material fact required to be stated or necessary in order to make the statements not misleading under the 1933 Act, or any other statute or the common law. However, the Issuer does not agree to indemnify Distributors or hold it harmless to the extent that the statement or omission was made in reliance upon, and in conformity with, information furnished to the Issuer by or on behalf of Distributors. In no case (i) is the indemnity of the Issuer in favor of Distributors or any person indemnified to be deemed to protect Distributors or any person against any liability to the Issuer or its security holders to which Distributors or such person would otherwise be subject by reason of wilful misfeasance, bad faith or gross negligence in the performance of its duties or by reason of its reckless disregard of its obligations and duties under this Agreement, or (ii) is the Issuer to be liable under its indemnity agreement contained in this paragraph with respect to any claim made against Distributors or any person indemnified unless Distributors or person, as the case may be, shall have notified the Issuer in writing of the claim within a reasonable time after the summons or other first written notification giving information of the nature of the claim shall have been served upon Distributors or any such person (or after Distributors or such person shall have received notice of service on any designated agent). However, failure to notify the Issuer of any claim shall not relieve the Issuer from any liability which it may have to Distributors or any person against whom such action is brought otherwise than on account of its indemnity agreement contained in this paragraph. The Issuer shall be entitled to participate at its own expense in the defense, or, if it so elects, to assume the defense of any suit brought to enforce any claims, but if the Issuer elects to assume the defense, the defense shall be conducted by counsel chosen by it and satisfactory to Distributors or person or persons, defendant or defendants in the suit. In the event the Issuer elects to assume the defense of any suit and retain counsel, Distributors, officers or directors or controlling person or persons, defendant or defendants in the suit, shall bear the fees and expenses of any additional counsel retained by them. If the Issuer does not elect to assume the defense of any suit, it will reimburse Distributors, officers or directors or controlling person or persons, defendant or defendants in the suit, for the reasonable fees and expenses of any counsel retained by them. The Issuer agrees to notify Distributors promptly of the commencement of any litigation or proceedings against it or any of its officers or trustees in connection with the issuance or sale of any of the shares. Distributors also covenants and agrees that it will indemnify and hold harmless the Issuer and each of its Board members and officers and each person, if any, who controls the Issuer within the meaning of Section 15 of the 1933 Act, against any loss, liability, damages, claim or expense (including the reasonable cost of investigating or defending any alleged loss, liability, damages, claim or expense and reasonable counsel fees incurred in connection therewith) arising by reason of any person acquiring any shares, based upon the 1933 Act or any other statute or common law, alleging any wrongful act of Distributors or any of its employees or alleging that the registration statement, Prospectus, Statement of Additional Information, shareholder reports or other information filed or made public by the Issuer (as from time to time amended) included an untrue statement of a material fact or omitted to state a material fact required to be stated or necessary in order to make the statements not misleading, insofar as the statement or omission was made in reliance upon, and in conformity with information furnished to the Issuer by or on behalf of Distributors. In no case (i) is the indemnity of Distributors in favor of the Issuer or any person indemnified to be deemed to protect the Issuer or any person against any liability to which the Issuer or such person would otherwise be subject by reason of willful misfeasance, bad faith or gross negligence in the performance of its duties or by reason of its reckless disregard of its obligations and duties under this Agreement, or (ii) is Distributors to be liable under its indemnity agreement contained in this paragraph with respect to any claim made against the Issuer or any person indemnified unless the Issuer or person, as the case may be, shall have notified Distributors in writing of the claim within a reasonable time after the summons or other first written notification giving information of the nature of the claim shall have been served upon the Issuer or any such person (or after the Issuer or such person shall have received notice of service on any designated agent). However, failure to notify Distributors of any claim shall not relieve Distributors from any liability which it may have to the Issuer or any person against whom the action is brought otherwise than on account of its indemnity agreement contained in this paragraph. In the case of any notice to Distributors, it shall be entitled to participate, at its own expense, in the defense or, if it so elects, to assume the defense of any suit brought to enforce the claim, but if Distributors elects to assume the defense, the defense shall be conducted by counsel chosen by it and satisfactory to the Issuer, to its officers and Board and to any controlling person or persons, defendant or defendants in the suit. In the event that Distributors elects to assume the defense of any suit and retain counsel, the Issuer or controlling persons, defendant or defendants in the suit, shall bear the fees and expense of any additional counsel retained by them. If Distributors does not elect to assume the defense of any suit, it will reimburse the Issuer, officers and Board or controlling person or persons, defendant or defendants in the suit, for the reasonable fees and expenses of any counsel retained by them. Distributors agrees to notify the Issuer promptly of the commencement of any litigation or proceedings against it in connection with the issue and sale of any of the shares. 12. Effective Date - This agreement shall be effective upon its execution, and unless terminated as provided, shall continue in force until March 31, 1998 and thereafter from year to year, provided continuance is approved annually by the vote of a majority of the Board members of the Issuer, and by the vote of those Board members of the Issuer who are not "interested persons" of the Issuer and, if a plan under Rule 12b-1 under the Investment Company Act of 1940 is in effect, by the vote of those Board members of the Issuer who are not "interested persons" of the Issuer and who are not parties to the Distribution and Service Plan or this Agreement and have no financial interest in the operation of the Distribution and Service Plan or in any agreements related to the Distribution and Service Plan, cast in person at a meeting called for the purpose of voting on the approval. This Agreement shall automatically terminate in the event of its assignment. As used in this paragraph, the terms "assignment" and "interested persons" shall have the respective meanings specified in the Investment Company Act of 1940 as now in effect or as hereafter amended. In addition to termination by failure to approve continuance or by assignment, this Agreement may at any time be terminated by either party upon not less than sixty days' prior written notice to the other party. 13. Notice - Any notice required or permitted to be given by either party to the other shall be deemed sufficient if sent by registered or certified mail, postage prepaid, addressed by the party giving notice to the other party at the last address furnished by the other party to the party giving notice: if to the Issuer, at 82 Devonshire Street, Boston, Massachusetts, and if to Distributors, at 82 Devonshire Street, Boston, Massachusetts. 14. Limitation of Liability - Distributors is expressly put on notice of the limitation of shareholder liability as set forth in the Declaration of Trust or other organizational document of the Issuer and agrees that the obligations assumed by the Issuer under this contract shall be limited in all cases to the Issuer and its assets. Distributors shall not seek satisfaction of any such obligation from the shareholders or any shareholder of the Issuer. Nor shall Distributors seek satisfaction of any such obligation from the Trustees or any individual Trustee of the Issuer. Distributors understands that the rights and obligations of each series of shares of the Issuer under the Issuer's Declaration of Trust or other organizational document are separate and distinct from those of any and all other series. 15. This agreement shall be governed by, and construed in accordance with, the laws of the Commonwealth of Massachusetts, without giving effect to the choice of laws provisions thereof. IN WITNESS WHEREOF, the Issuer has executed this instrument in its name and behalf, and its seal affixed, by one of its officers duly authorized, and Distributors has executed this instrument in its name and behalf by one of its officers duly authorized, as of the day and year first above written. FIDELITY SELECT PORTFOLIOS By /s/Robert C. Pozen Robert C. Pozen President FIDELITY DISTRIBUTORS CORPORATION By /s/Martha B. Willis Martha B. Willis President EX-99.B6 6 Exhibit 6(o) FORM OF BANK AGENCY AGREEMENT We at Fidelity Distributors Corporation offer to make available to your customers shares of the mutual funds, or the separate series or classes of the mutual funds, listed on Schedules A and B attached to this Agreement (the "Portfolios"). We may periodically change the list of Portfolios by giving you written notice of the change. We are the Portfolios' principal underwriter and act as agent for the Portfolios. You (____________________________________) are a division or affiliate of a bank (____________________________________) and desire to make Portfolio shares available to your customers on the following terms: 1. Certain Defined Terms: As used in this Agreement, the term "Prospectus" means the applicable Portfolio's prospectus and related statement of additional information, whether in paper format or electronic format, included in the Portfolio's then currently effective registration statement (or post-effective amendment thereto), and any information that we or the Portfolio may issue to you as a supplement to such prospectus or statement of additional information (a "sticker"), all as filed with the Securities and Exchange Commission (the "SEC") pursuant to the Securities Act of 1933. 2. Making Portfolio Shares Available to Your Customers: (a) In all transactions covered by this Agreement: (i) you will act as agent for your customers; in no transaction are you authorized to act as agent for us or for any Portfolio; (ii) you will initiate transactions only upon your customers' orders; (iii) we will execute transactions only upon receiving instructions from you acting as agent for your customers; and (iv) each transaction will be for your customer's account and not for your own account. Each transaction will be without recourse to you, provided that you act in accordance with the terms of this Agreement. (b) You agree to make Portfolio shares available to your customers only at the applicable public offering price in accordance with the Prospectus. If your customer qualifies for a reduced sales charge pursuant to a special purchase plan (for example, a quantity discount, letter of intent, or right of accumulation) as described in the Prospectus, you agree to make Portfolio shares available to your customer at the applicable reduced sales charge. You agree to deliver or cause to be delivered to each customer, at or prior to the time of any purchase of shares, a copy of the then current prospectus (including any stickers thereto), unless such prospectus has already been delivered to the customer, and to each customer who so requests, a copy of the then current statement of additional information (including any stickers thereto). (c) You agree to order Portfolio shares from us only to cover purchase orders that you have already received from your customers, or for your own investment. You will not withhold placing customers' orders so as to profit yourself as a result of such withholding (for example, by a change in a Portfolio's net asset value from that used in determining the offering price to your customers). (d) We will accept your purchase orders only at the public offering price applicable to each order, as determined in accordance with the Prospectus. We will not accept from you a conditional order for Portfolio shares. All orders are subject to acceptance or rejection by us in our sole discretion. We may, without notice, suspend sales or withdraw the offering of Portfolio shares, or make a limited offering of Portfolio shares. (e) The placing of orders with us will be governed by instructions that we will periodically issue to you. You must pay for Portfolio shares in New York or Boston clearing house funds or in federal funds in accordance with such instructions, and we must receive your payment on or before the settlement date established in accordance with Rule 15c6-1 under the Securities Exchange Act of 1934 (the "1934 Act"). (f) You agree to comply with all applicable state and federal laws and with the rules and regulations of authorized regulatory agencies thereunder. You agree to make Portfolio shares available to your customers only in states where you may legally make such Portfolio's shares available. You will not make available shares of any Portfolio unless such shares are registered under the applicable state and federal laws and the rules and regulations thereunder. (g) Certificates evidencing Portfolio shares are not available; any transaction in Portfolio shares will be effected and evidenced by book-entry on the records maintained by Fidelity Investments Institutional Operations Company, Inc. ("FIIOC"). A confirmation statement evidencing transactions in Portfolio shares will be transmitted to you. (h) You may designate FIIOC to execute your customers' transactions in Portfolio shares in accordance with the terms of any account, program, plan, or service established or used by your customers, and to confirm each transaction to your customers on your behalf on a fully disclosed basis. At the time of the transaction, you guarantee the legal capacity of your customers and any co-owners of such shares so transacting in such shares. 3. Your Compensation: (a) Your fee, if any, for acting as agent with respect to sales of Portfolio shares will be as provided in the Prospectus or in the applicable schedule of agency fees issued by us and in effect at the time of the sale. Upon written notice to you, we or any Portfolio may change or discontinue any schedule of agency fees, or issue a new schedule. (b) If a Portfolio has adopted a plan pursuant to Rule 12b-1 under the Investment Company Act of 1940 (a "Plan"), we may make distribution payments or service payments to you under the Plan. If a Portfolio does not have a currently effective Plan, we or Fidelity Management & Research Company may make distribution payments or service payments to you from our own funds. Any distribution payments or service payments will be made in the amount and manner set forth in the Prospectus or in the applicable schedule of distribution payments or service payments issued by us and then in effect. Upon written notice to you, we or any Portfolio may change or discontinue any schedule of distribution payments or service payments, or issue a new schedule. A schedule of distribution payments or service payments will be in effect with respect to a Portfolio that has a Plan only so long as that Portfolio's Plan remains in effect. (c) After the effective date of any change in or discontinuance of any schedule of agency fees, distribution payments, or service payments, or the termination of a Plan, any agency fees, distribution payments, or service payments will be allowable or payable to you only in accordance with such change, discontinuance, or termination. You agree that you will have no claim against us or any Portfolio by virtue of any such change, discontinuance, or termination. In the event of any overpayment by us of any agency fee, distribution payment, or service payment, you will remit such overpayment. (d) If, within seven (7) business days after our confirmation of the original purchase order for shares of a Portfolio, such shares are redeemed by the issuing Portfolio or tendered for redemption by the customer, you agree (i) to refund promptly to us the full amount of any agency fee, distribution payment, or service payment paid to you on such shares, and (ii) if not yet paid to you, to forfeit the right to receive any agency fee, distribution payment, or service payment payable to you on such shares. We will notify you of any such redemption within ten (10) days after the date of the redemption. 4. Certain Types of Accounts: (a) You may instruct FIIOC to register purchased shares in your name and account as nominee for your customers. If you hold Portfolio shares as nominee for your customers, all Prospectuses, proxy statements, periodic reports, and other printed material will be sent to you, and all confirmations and other communications to shareholders will be transmitted to you. You will be responsible for forwarding such printed material, confirmations, and communications, or the information contained therein, to all customers for whose account you hold any Portfolio shares as nominee. However, we or FIIOC on behalf of itself or the Portfolios will be responsible for the costs associated with your forwarding such printed material, confirmations, and communications. You will be responsible for complying with all reporting and tax withholding requirements with respect to the customers for whose account you hold any Portfolio shares as nominee. (b) With respect to accounts other than those accounts referred to in paragraph 4(a) above, you agree to provide us with all information (including certification of taxpayer identification numbers and back-up withholding instructions) necessary or appropriate for us to comply with legal and regulatory reporting requirements. (c) Accounts opened or maintained pursuant to the NETWORKING system of the National Securities Clearing Corporation ("NSCC") will be governed by applicable NSCC rules and procedures and any agreement or other arrangement with us relating to NETWORKING. (d) If you hold Portfolio shares in an omnibus account for two or more customers, you will be responsible for determining, in accordance with the Prospectus, whether, and the extent to which, a CDSC is applicable to a purchase of Portfolio shares from such a customer, and you agree to transmit immediately to us any CDSC to which such purchase was subject. You hereby represent that if you hold Portfolio shares subject to a CDSC, you have the capability to track and account for such charge, and we reserve the right, at our discretion, to verify that capability by inspecting your tracking and accounting system or otherwise. 5. Status as Registered Broker/Dealer or "Bank": (a) Each party to this Agreement represents to the other party that it is either (i) a registered broker/dealer under the 1934 Act, or (ii) a "bank" as defined in Section 3(a)(6) of the 1934 Act. (b) If a party is a registered broker/dealer, such party represents that it is qualified to act as a broker/dealer in the states where it transacts business, and it is a member in good standing of the National Association of Securities Dealers, Inc. ("NASD"). It agrees to maintain its broker/dealer registration and qualifications and its NASD membership in good standing throughout the term of this Agreement. It agrees to abide by all of the NASD's rules and regulations, including the NASD's Conduct Rules -- in particular, Section 2830 of such Rules, which section is deemed a part of and is incorporated by reference in this Agreement. This Agreement will terminate automatically without notice in the event that a party's NASD membership is terminated. (c) If you are a "bank", you represent that you are duly authorized to engage in the transactions to be performed under this Agreement, and you agree to comply with all applicable federal and state laws, including the rules and regulations of all applicable federal and state bank regulatory agencies and authorities. This Agreement will terminate automatically without notice in the event that you cease to be a "bank" as defined in Section 3(a)(6) of the 1934 Act. (d) Nothing in this Agreement shall cause you to be our partner, employee, or agent, or give you any authority to act for us or for any Portfolio. Neither we nor any Portfolio shall be liable for any of your acts or obligations as a dealer under this Agreement. 6. Information Relating to the Portfolios: (a) No person is authorized to make any representations concerning shares of a Portfolio other than those contained in the Portfolio's Prospectus. In ordering Portfolio shares from us under this Agreement, you will rely only on the representations contained in the Prospectus. Upon your request, we will furnish you with a reasonable number of copies of the Portfolios' current prospectuses or statements of additional information or both (including any stickers thereto). (b) Any printed or electronic information that we furnish you (other than the Portfolios' Prospectuses and periodic reports) is our sole responsibility and not the responsibility of the respective Portfolios. You agree that the Portfolios will have no liability or responsibility to you with respect to any such printed or electronic information. We or the respective Portfolio will bear the expense of qualifying its shares under the state securities laws. (c) You may not use any sales literature or advertising material (including material disseminated through radio, television, or other electronic media) concerning Portfolio shares, other than the printed or electronic information referred to in paragraph 6(b) above, in connection with making Portfolio shares available to your customers without obtaining our prior written approval. You may not distribute or make available to investors any information that we furnish you marked "FOR DEALER USE ONLY" or that otherwise indicates that it is confidential or not intended to be distributed to investors. 7. Indemnification: (a) We will indemnify and hold you harmless from any claim, demand, loss, expense, or cause of action resulting from the misconduct or negligence, as measured by industry standards, of us, our agents and employees, in carrying out our obligations under this Agreement. Such indemnification will survive the termination of this Agreement. (b) You will indemnify and hold us harmless from any claim, demand, loss, expense, or cause of action resulting from the misconduct or negligence, as measured by industry standards, of you, your agents and employees, in carrying out your obligations under this Agreement. Such indemnification will survive the termination of this Agreement. 8. Customer Lists: We hereby agree that we shall not use any list of your customers which may be obtained in connection with this Agreement for the purpose of solicitation of any product or service without your express written consent. However, nothing in this paragraph or otherwise shall be deemed to prohibit or restrict us or our affiliates in any way from solicitations of any product or service directed at, without limitation, the general public, any segment thereof, or any specific individual, provided such solicitation is not based upon such list. 9. Duration of Agreement: This Agreement, with respect to any Plan, will continue in effect for one year from its effective date, and thereafter will continue automatically for successive annual periods; provided, however, that such continuance is subject to termination at any time without penalty if a majority of a Portfolio's Trustees who are not interested persons of the Portfolio (as defined in the Investment Company Act of 1940 (the "1940 Act")), or a majority of the outstanding shares of the Portfolio, vote to terminate or not to continue the Plan. This Agreement, other than with respect to a Plan, will continue in effect from year to year after its effective date, unless terminated as provided herein. 10. Amendment and Termination of Agreement: (a) We may amend any provision of this Agreement by giving you written notice of the amendment. Either party to this Agreement may terminate the Agreement without cause by giving the other party at least thirty (30) days' written notice of its intention to terminate. This Agreement will terminate automatically in the event of its assignment (as defined in the 1940 Act). (b) In the event that (i) an application for a protective decree under the provisions of the Securities Investor Protection Act of 1970 is file against you; (ii) you file a petition in bankruptcy or a petition seeking similar relief under any bankruptcy, insolvency, or similar law, or a proceeding is commenced against you seeking such relief; or (iii) you are found by the SEC, the NASD, or any other federal or state regulatory agency or authority to have violated any applicable federal or state law, rule or regulation arising out of your activities as a broker/dealer or in connection with this Agreement, this Agreement will terminate effective immediately upon our giving notice of termination to you. You agree to notify us promptly and to immediately suspend making Portfolio shares available to your customers in the event of any such filing or violation, or in the event that you cease to be a member in good standing of the NASD or you cease to be a "bank" as defined in Section 3(a)(6) of the 1934 Act. (c) Your or our failure to terminate this Agreement for a particular cause will not constitute a waiver of the right to terminate this Agreement at a later date for the same or another cause. The termination of this Agreement with respect to any one Portfolio will not cause its termination with respect to any other Portfolio. 11. Arbitration: In the event of a dispute, such dispute will be settled by arbitration before arbitrators sitting in Boston, Massachusetts in accordance with the NASD's Code of Arbitration Procedure in effect at the time of the dispute. The arbitrators will act by majority decision and their award may allocate attorneys' fees and arbitration costs between us. Their award will be final and binding between us, and such award may be entered as a judgment in any court of competent jurisdiction. 12. Notices: All notices required or permitted to be given under this Agreement shall be given in writing and delivered by personal delivery, by postage prepaid mail, or by facsimile machine or a similar means of same day delivery (with a confirming copy by mail). All notices to us shall be given or sent to us at our offices located at 82 Devonshire Street, Mail Zone L12A, Boston, Massachusetts 02109, Attn: Bank Wholesale Market. All notices to you shall be given or sent to you at the address specified by you below. Each of us may change the address to which notices shall be sent by giving notice to the other party in accordance with this paragraph 12. 13. Miscellaneous: This Agreement, as it may be amended from time to time, shall become effective as of the date when it is accepted and dated below by us. This Agreement is to be construed in accordance with the laws of the Commonwealth of Massachusetts. This Agreement supersedes and cancels any prior agreement between us, whether oral or written, relating to the sale of shares of the Portfolios or any other subject covered by this Agreement. The captions in this Agreement are included for convenience of reference only and in no way define or limit any of the provisions of this Agreement or otherwise affect their construction or effect. Very truly yours, FIDELITY DISTRIBUTORS CORPORATION Please return two signed copies of this Agreement to Fidelity Distributors Corporation. Upon acceptance, one countersigned copy will be returned to you for your files. _____________________________________ Name of Firm Address: _____________________________ _____________________________________ _____________________________________ By __________________________________ Authorized Representative _____________________________________ Name and Title (please print or type) ACCEPTED AND AGREED: FIDELITY DISTRIBUTORS CORPORATION By __________________________________ Dated: ________________ ** DISCARD THIS PAGE AND ATTACH REVISED SCHEDULES A AND B ** EX-99.B6 7 Exhibit 6(p) FORM OF SELLING DEALER AGREEMENT (FOR BANK-RELATED TRANSACTIONS) We at Fidelity Distributors Corporation invite you to distribute shares of the mutual funds, or the separate series or classes of the mutual funds, listed on Schedules A and B attached to this Agreement (the "Portfolios"). We may periodically change the list of Portfolios by giving you written notice of the change. We are the Portfolios' principal underwriter and, as agent for the Portfolios, we offer to sell Portfolio shares to you on the following terms: 1. Certain Defined Terms: (a) You (_____________________________________) are registered as a broker/dealer under the Securities Exchange Act of 1934 (the "1934 Act") and have executed a written agreement with a bank or bank affiliate to provide brokerage services to that bank, bank affiliate and/or their customers. As used in this Agreement, the term "Bank" means a bank as defined in Section 3(a)(6) of the 1934 Act, or an affiliate of such a bank, with which you have entered into a written agreement to provide brokerage services; and the term "Bank Client" means a customer of such a Bank. (b) As used in this Agreement, the term "Prospectus" means the applicable Portfolio's prospectus and related statement of additional information, whether in paper format or electronic format, included in the Portfolio's then currently effective registration statement (or post-effective amendment thereto), and any information that we or the Portfolio may issue to you as a supplement to such prospectus or statement of additional information (a "sticker"), all as filed with the Securities and Exchange Commission (the "SEC") pursuant to the Securities Act of 1933. 2. Purchases of Portfolio Shares for Sale to Customers: (a) In offering and selling Portfolio shares to your customers, you agree to act as dealer for your own account; you are not authorized to act as agent for us or for any Portfolio. (b) You agree to offer and sell Portfolio shares to your customers only at the applicable public offering price in accordance with the Prospectus. If your customer qualifies for a reduced sales charge pursuant to a special purchase plan (for example, a quantity discount, letter of intent, or right of accumulation) as described in the Prospectus, you agree to offer and sell Portfolio shares to your customer at the applicable reduced sales charge. You agree to deliver or cause to be delivered to each customer, at or prior to the time of any purchase of shares, a copy of the then current prospectus (including any stickers thereto), unless such prospectus has already been delivered to the customer, and to each customer who so requests, a copy of the then current statement of additional information (including any stickers thereto). (c) You agree to purchase Portfolio shares from us only to cover purchase orders that you have already received from your customers, or for your own investment. You also agree not to purchase any Portfolio shares from your customers at a price lower than the applicable redemption price, determined in the manner described in the Prospectus. You will not withhold placing customers' orders so as to profit yourself as a result of such withholding (for example, by a change in a Portfolio's net asset value from that used in determining the offering price to your customers). (d) We will accept your purchase orders only at the public offering price applicable to each order, as determined in accordance with the Prospectus. We will not accept from you a conditional order for Portfolio shares. All orders are subject to acceptance or rejection by us in our sole discretion. We may, without notice, suspend sales or withdraw the offering of Portfolio shares, or make a limited offering of Portfolio shares. (e) The placing of orders with us will be governed by instructions that we will periodically issue to you. You must pay for Portfolio shares in New York or Boston clearing house funds or in federal funds in accordance with such instructions, and we must receive your payment on or before the settlement date established in accordance with Rule 15c6-1 under the 1934 Act. If we do not receive your payment on or before such settlement date, we may, without notice, cancel the sale, or, at our option, sell the shares that you ordered back to the issuing Portfolio, and we may hold you responsible for any loss suffered by us or the issuing Portfolio as a result of your failure to make payment as required. (f) You agree to comply with all applicable state and federal laws and with the rules and regulations of authorized regulatory agencies thereunder. You agree to offer and sell Portfolio shares only in states where you may legally offer and sell such Portfolio's shares. You will not offer shares of any Portfolio for sale unless such shares are registered for sale under the applicable state and federal laws and the rules and regulations thereunder. (g) Certificates evidencing Portfolio shares are not available; any transaction in Portfolio shares will be effected and evidenced by book-entry on the records maintained by Fidelity Investments Institutional Operations Company, Inc. ("FIIOC"). A confirmation statement evidencing transactions in Portfolio shares will be transmitted to you. (h) You may designate FIIOC to execute your customers' transactions in Portfolio shares in accordance with the terms of any account, program, plan, or service established or used by your customers, and to confirm each transaction to your customers on your behalf on a fully disclosed basis. At the time of the transaction, you guarantee the legal capacity of your customers and any co-owners of such shares so transacting in such shares. 3. Your Compensation: (a) Your concession, if any, on your sales of Portfolio shares will be as provided in the Prospectus or in the applicable schedule of concessions issued by us and in effect at the time of our sale to you. Upon written notice to you, we or any Portfolio may change or discontinue any schedule of concessions, or issue a new schedule. (b) If a Portfolio has adopted a plan pursuant to Rule 12b-1 under the Investment Company Act of 1940 (a "Plan"), we may make distribution payments or service payments to you under the Plan. If a Portfolio does not have a currently effective Plan, we or Fidelity Management & Research Company may make distribution payments or service payments to you from our own funds. Any distribution payments or service payments will be made in the amount and manner set forth in the Prospectus or in the applicable schedule of distribution payments or service payments issued by us and then in effect. Upon written notice to you, we or any Portfolio may change or discontinue any schedule of distribution payments or service payments, or issue a new schedule. A schedule of distribution payments or service payments will be in effect with respect to a Portfolio that has a Plan only so long as that Portfolio's Plan remains in effect. (c) Concessions, distribution payments, and service payments apply only with respect to (i) shares of the "Fidelity Funds" (as designated on Schedule A attached to this Agreement) purchased or maintained for the account of Bank Clients, and (ii) shares of the "Fidelity Advisor Funds" (as designated on Schedule B attached to this Agreement). Anything to the contrary notwithstanding, neither we nor any Portfolio will provide to you, nor may you retain, concessions on your sales of shares of, or distribution payments or service payments with respect to assets of, the Fidelity Funds attributable to you or any of your clients, other than Bank Clients. When you place an order in shares of the Fidelity Funds with us, you will identify the Bank on behalf of whose Clients you are placing the order; and you will identify as a non-Bank Client Order, any order in shares of the Fidelity Funds placed for the account of a non-Bank Client. (d) After the effective date of any change in or discontinuance of any schedule of concessions, distribution payments, or service payments, or the termination of a Plan, any concessions, distribution payments, or service payments will be allowable or payable to you only in accordance with such change, discontinuance, or termination. You agree that you will have no claim against us or any Portfolio by virtue of any such change, discontinuance, or termination. In the event of any overpayment by us of any concession, distribution payment, or service payment, you will remit such overpayment. (e) If any Portfolio shares sold to you by us under the terms of this Agreement are redeemed by the issuing Portfolio or tendered for redemption by the customer within seven (7) business days after the date of our confirmation of your original purchase order for such shares, you agree (i) to refund promptly to us the full amount of any concession, distribution payment, or service payment allowed or paid to you on such shares, and (ii) if not yet allowed or paid to you, to forfeit the right to receive any concession, distribution payment, or service payment allowable or payable to you on such shares. We will notify you of any such redemption within ten (10) days after the date of the redemption. 4. Certain Types of Accounts: (a) You may instruct FIIOC to register purchased shares in your name and account as nominee for your customers. If you hold Portfolio shares as nominee for your customers, all Prospectuses, proxy statements, periodic reports, and other printed material will be sent to you, and all confirmations and other communications to shareholders will be transmitted to you. You will be responsible for forwarding such printed material, confirmations, and communications, or the information contained therein, to all customers for whose account you hold any Portfolio shares as nominee. However, we or FIIOC on behalf of itself or the Portfolios will be responsible for the costs associated with your forwarding such printed material, confirmations, and communications. You will be responsible for complying with all reporting and tax withholding requirements with respect to the customers for whose account you hold any Portfolio shares as nominee. (b) With respect to accounts other than those accounts referred to in paragraph 4(a) above, you agree to provide us with all information (including certification of taxpayer identification numbers and back-up withholding instructions) necessary or appropriate for us to comply with legal and regulatory reporting requirements. (c) Accounts opened or maintained pursuant to the NETWORKING system of the National Securities Clearing Corporation ("NSCC") will be governed by applicable NSCC rules and procedures and any agreement or other arrangement with us relating to NETWORKING. (d) If you hold Portfolio shares in an omnibus account for two or more customers, you will be responsible for determining, in accordance with the Prospectus, whether, and the extent to which, a CDSC is applicable to a purchase of Portfolio shares from such a customer, and you agree to transmit immediately to us any CDSC to which such purchase was subject. You hereby represent that if you hold Portfolio shares subject to a CDSC, you have the capability to track and account for such charge, and we reserve the right, at our discretion, to verify that capability by inspecting your tracking and accounting system or otherwise. 5. Status as Registered Broker/Dealer: (a) Each party to this Agreement represents to the other party that (i) it is registered as a broker/dealer under the 1934 Act, (ii) it is qualified to act as a broker/dealer in the states where it transacts business, and (iii) it is a member in good standing of the National Association of Securities Dealers, Inc. ("NASD"). Each party agrees to maintain its broker/dealer registration and qualifications and its NASD membership in good standing throughout the term of this Agreement. Each party agrees to abide by all of the NASD's rules and regulations, including the NASD's Conduct Rules -- in particular, Section 2830 of such Rules, which section is deemed a part of and is incorporated by reference in this Agreement. This Agreement will terminate automatically without notice in the event that either party's NASD membership is terminated. (b) Nothing in this Agreement shall cause you to be our partner, employee, or agent, or give you any authority to act for us or for any Portfolio. Neither we nor any Portfolio shall be liable for any of your acts or obligations as a dealer under this Agreement. 6. Information Relating to the Portfolios: (a) No person is authorized to make any representations concerning shares of a Portfolio other than those contained in the Portfolio's Prospectus. In buying Portfolio shares from us under this Agreement, you will rely only on the representations contained in the Prospectus. Upon your request, we will furnish you with a reasonable number of copies of the Portfolios' current prospectuses or statements of additional information or both (including any stickers thereto). (b) Any printed or electronic information that we furnish you (other than the Portfolios' Prospectuses and periodic reports) is our sole responsibility and not the responsibility of the respective Portfolios. You agree that the Portfolios will have no liability or responsibility to you with respect to any such printed or electronic information. We or the respective Portfolio will bear the expense of qualifying its shares under the state securities laws. (c) You may not use any sales literature or advertising material (including material disseminated through radio, television, or other electronic media) concerning Portfolio shares, other than the printed or electronic information referred to in paragraph 6(b) above, in connection with the offer or sale of Portfolio shares without obtaining our prior written approval. You may not distribute or make available to investors any information that we furnish you marked "FOR DEALER USE ONLY" or that otherwise indicates that it is confidential or not intended to be distributed to investors. 7. Indemnification: (a) We will indemnify and hold you harmless from any claim, demand, loss, expense, or cause of action resulting from the misconduct or negligence, as measured by industry standards, of us, our agents and employees, in carrying out our obligations under this Agreement. Such indemnification will survive the termination of this Agreement. (b) You will indemnify and hold us harmless from any claim, demand, loss, expense, or cause of action resulting from the misconduct or negligence, as measured by industry standards, of you, your agents and employees, in carrying out your obligations under this Agreement. Such indemnification will survive the termination of this Agreement. 8. Customer Lists: We hereby agree that we shall not use any list of your customers which may be obtained in connection with this Agreement for the purpose of solicitation of any product or service without your express written consent. However, nothing in this paragraph or otherwise shall be deemed to prohibit or restrict us or our affiliates in any way from solicitations of any product or service directed at, without limitation, the general public, any segment thereof, or any specific individual, provided such solicitation is not based upon such list. 9. Duration of Agreement: This Agreement, with respect to any Plan, will continue in effect for one year from its effective date, and thereafter will continue automatically for successive annual periods; provided, however, that such continuance is subject to termination at any time without penalty if a majority of a Portfolio's Trustees who are not interested persons of the Portfolio (as defined in the Investment Company Act of 1940 (the "1940 Act")), or a majority of the outstanding shares of the Portfolio, vote to terminate or not to continue the Plan. This Agreement, other than with respect to a Plan, will continue in effect from year to year after its effective date, unless terminated as provided herein. 10. Amendment and Termination of Agreement: (a) We may amend any provision of this Agreement by giving you written notice of the amendment. Either party to this Agreement may terminate the Agreement without cause by giving the other party at least thirty (30) days' written notice of its intention to terminate. This Agreement will terminate automatically in the event of its assignment (as defined in the 1940 Act). (b) In the event that (i) an application for a protective decree under the provisions of the Securities Investor Protection Act of 1970 is filed against you; (ii) you file a petition in bankruptcy or a petition seeking similar relief under any bankruptcy, insolvency, or similar law, or a proceeding is commenced against you seeking such relief; or (iii) you are found by the SEC, the NASD, or any other federal or state regulatory agency or authority to have violated any applicable federal or state law, rule or regulation arising out of your activities as a broker/dealer or in connection with this Agreement, this Agreement will terminate effective immediately upon our giving notice of termination to you. You agree to notify us promptly and to immediately suspend sales of Portfolio shares in the event of any such filing or violation, or in the event that you cease to be a member in good standing of the NASD. (c) Your or our failure to terminate this Agreement for a particular cause will not constitute a waiver of the right to terminate this Agreement at a later date for the same or another cause. The termination of this Agreement with respect to any one Portfolio will not cause its termination with respect to any other Portfolio. 11. Arbitration: In the event of a dispute, such dispute will be settled by arbitration before arbitrators sitting in Boston, Massachusetts in accordance with the NASD's Code of Arbitration Procedure in effect at the time of the dispute. The arbitrators will act by majority decision and their award may allocate attorneys' fees and arbitration costs between us. Their award will be final and binding between us, and such award may be entered as a judgment in any court of competent jurisdiction. 12. Notices: All notices required or permitted to be given under this Agreement shall be given in writing and delivered by personal delivery, by postage prepaid mail, or by facsimile machine or a similar means of same day delivery (with a confirming copy by mail). All notices to us shall be given or sent to us at our offices located at 82 Devonshire Street, Mail Zone L12A, Boston, Massachusetts 02109, Attn: Bank Wholesale Market. All notices to you shall be given or sent to you at the address specified by you below. Each of us may change the address to which notices shall be sent by giving notice to the other party in accordance with this paragraph 11. 13. Miscellaneous: This Agreement, as it may be amended from time to time, shall become effective as of the date when it is accepted and dated below by us. This Agreement is to be construed in accordance with the laws of the Commonwealth of Massachusetts. This Agreement supersedes and cancels any prior agreement between us, whether oral or written, relating to the sale of shares of the Portfolios or any other subject covered by this Agreement. The captions in this Agreement are included for convenience of reference only and in no way define or limit any of the provisions of this Agreement or otherwise affect their construction or effect. Very truly yours, FIDELITY DISTRIBUTORS CORPORATION Please return two signed copies of this Agreement to Fidelity Distributors Corporation. Upon acceptance, one countersigned copy will be returned to you for your files. _____________________________________ Name of Firm Address: _____________________________ _____________________________________ _____________________________________ By __________________________________ Authorized Representative _____________________________________ Name and Title (please print or type) CRD # _______________________________ ACCEPTED AND AGREED: FIDELITY DISTRIBUTORS CORPORATION By __________________________________ Dated: ________________ ** DISCARD THIS PAGE AND ATTACH REVISED SCHEDULES A AND B ** EX-99.B8 8 Exhibit 8(m) Form of FIDELITY GROUP REPO CUSTODIAN AGREEMENT FOR JOINT TRADING ACCOUNT AGREEMENT dated as of ______, among THE BANK OF NEW YORK, a banking corporation organized under the laws of the State of New York ("Repo Custodian"), J.P. MORGAN SECURITIES INC. ("Seller") and each of the entities listed on Schedule A-1, A-2, A-3 and A-4 (collectively, the "Funds" and each a "Fund") hereto, acting on behalf of itself or (i) in the case of the Funds listed on Schedule A-1 or A-2 hereto which are portfolios or series, acting through the series company listed on Schedule A-1 or A-2 hereto, (ii) in the case of the accounts listed on Schedule A-3 hereto, acting through Fidelity Management & Research Company, and (iii) in the case of the commingled or individual accounts listed on Schedule A-4 hereto, acting through Fidelity Management Trust Company (collectively, the "Funds" and each, a "Fund"). WITNESSETH WHEREAS, each of the Funds has entered into a master repurchase agreement dated as of ___________, (the "Master Agreement") with Seller pursuant to which from time to time one or more of the Funds, as buyers, and Seller, as seller, may enter into repurchase transactions effected through one or more joint trading accounts (collectively, the "Joint Trading Account") established and administered by one or more custodians of the Funds identified on Schedule C hereto (each a "Custodian"); and, WHEREAS, in each such repurchase transaction Seller will sell to such Funds certain Securities (as hereinafter defined) selected from Eligible Securities (as hereinafter defined) held by Repo Custodian, subject to an agreement by Seller to repurchase such Securities; and WHEREAS, Repo Custodian currently maintains a cash and securities account (the "Seller Account") for Seller for the purpose of, among other things, effecting repurchase transactions hereunder; and WHEREAS, the Funds desire that the Repo Custodian serve as the custodian for the Funds in connection with the repurchase transactions effected hereunder, and that the Repo Custodian hold cash, Cash Collateral (as hereinafter defined) and Securities for the Funds for the purpose of effecting repurchase transactions hereunder. NOW THEREFORE, the parties hereto hereby agree as follows: 1. Definitions. Whenever used in this Agreement, the following terms shall have the meanings set forth below: (a) "Banking Day" shall mean any day on which the Funds, Seller Custodian, Repo Custodian, and the Federal Reserve Banks where the Custodian and the Repo Custodian are located, are each open for business. (b) "Cash Collateral" shall mean all cash, denominated in U.S. Dollars, credited by Repo Custodian to a Transaction Account pursuant to Paragraphs 3, 6, 8 or 9 of the Master Agreement. (c) "Custodian" shall have the meaning set forth in the preamble of this Agreement. (d) "Eligible Securities" shall mean those securities which are identified as permissible securities for a particular Transaction Category. (e) "FICASH I Transaction" and "FICASH III Transaction " shall mean a repurchase transaction in which the Repurchase Date is the Banking Day next following the Sale Date and for which securities issued by the government of the United States of America that are direct obligations of the government of the United States of America shall constitute Eligible Securities. (f) "FICASH II Transaction" shall mean a repurchase transaction in which the Repurchase Date is the Banking Day next following the Sale Date and for which one or more of the following two categories of securities, as specified by the Funds, shall constitute Eligible Securities: (x) securities issued by the government of the United States of America that are direct obligations of the government of the United States of America, or (y) securities issued by or guaranteed as to principal and interest by the government of the United States of America, or by its agencies and/or instrumentalities, including, but not limited to, the Federal Home Loan Bank, Federal Home Loan Mortgage Corp., Government National Mortgage Association, Federal National Mortgage Association, Federal Farm Credit Bank, Federal Intermediate Credit Bank, Banks for Cooperatives, and Federal Land Banks. (g) "FITERM I Transaction" and "FITERM III Transaction" shall mean a repurchase transaction in which the Repurchase Date is a date fixed by agreement between Seller and the Participating Funds which is not the Banking Day next following the Sale Date and for which securities issued by the government of the United States of America that are direct obligations of the government of the United States of America shall constitute Eligible Securities. (h) "FITERM II Transaction" shall mean a repurchase transaction in which the Repurchase Date is a date fixed by agreement between Seller and the Participating Funds which is not the Banking Day next following the Sale Date and for which one or more of the following two categories of securities, as specified by the Funds, shall constitute Eligible Securities: (x) securities issued by the government of the United States of America that are direct obligations of the government of the United States of America, or (y) securities issued by or guaranteed as to principal and interest by the government of the United States of America, or by its agencies and/or instrumentalities, including, but not limited to, the Federal Home Loan Bank, Federal Home Loan Mortgage Corp., Government National Mortgage Association, Federal National Mortgage Association, Federal Farm Credit Bank, Federal Intermediate Credit Bank, Banks for Cooperatives, and Federal Land Banks. (i) "Fund" shall have the meaning set forth in the preamble of this Agreement. (j) "Fund Agent" shall mean the agent for the Participating Funds designated in Paragraph 18 of the Master Agreement. (k) "Joint Trading Account" shall have the meaning set forth in the preamble of this Agreement. (l) "Margin Percentage" with respect to any repurchase transaction shall be 102% or such other percentage as is agreed to by Seller and the Participating Funds (except that in no event shall the Margin Percentage be less than 100%). (m) "Market Value" shall have the meaning set forth in Paragraph 4 of the Master Agreement. (n) "Master Agreement" shall have the meaning set forth in the preamble of this Agreement. (o) "1940 Act" shall mean have the meaning set forth in Paragraph 3(c) of this Agreement. (p) "Partial Payment" shall have the meaning set forth in Section 4(g) of this Agreement. (q) "Participating Funds" shall mean those Funds that are parties to a particular repurchase transaction effected through the Joint Trading Account. (r) "Pricing Rate" shall mean the per annum percentage rate agreed to by Seller and the Participating Funds for a repurchase transaction. (s) "Pricing Services" shall have the meaning set forth in Paragraph 7 of this Agreement. (t) "Repo Custodian" shall have the meaning set forth in the preamble of this Agreement. (u) "Repurchase Date" shall mean the date fixed by agreement between Seller and the Participating Funds on which the Seller is to repurchase Securities and Cash Collateral, if any, from the Participating Funds and the Participating Funds are to resell the Securities and Cash Collateral, if any, including any date determined by application of the provisions of Paragraphs 7 and 15 of the Master Agreement. (v) "Repurchase Price" for each repurchase transaction shall mean the Sale Price, plus an incremental amount determined by applying the Pricing Rate to the Sale Price, calculated on the basis of a 360-day year and the number of actual days elapsed from (and including) the Sale Date to (but excluding) the Repurchase Date. (w) "Sale Date" shall mean the Banking Day on which Securities and Cash Collateral, if any, are to be sold to the Participating Funds by Seller pursuant to a repurchase transaction hereunder. (x) "Sale Price" shall mean the price agreed upon by the Participating Funds and Seller at which the Securities and Cash Collateral, if any, are to be sold to the Participating Funds by Seller. (y) "Securities" shall mean all Eligible Securities delivered by Seller or to be delivered by Seller to the Participating Funds pursuant to a particular repurchase transaction and not yet repurchased hereunder, together with all rights related thereto and all proceeds thereof. (z) "Securities System" shall have the meaning set forth in Paragraph 3(c) of this Agreement. (aa) "Seller" shall have the meaning set forth in the preamble to this Agreement. (bb) "Seller Account" shall have the meaning set forth in the preamble of this Agreement. (cc) "Transaction Account" shall mean a cash account established and maintained by Repo Custodian for the Funds to effect repurchase transactions pursuant to the Master Agreement. (dd) "Transaction Category" shall mean the particular type of repurchase transaction effected hereunder, as determined with reference to the term of the transaction and the categories of Securities that constitute Eligible Securities therefor, which term shall include FICASH I Transactions, FICASH II Transactions, FICASH III Transactions, FITERM I Transactions, FITERM II Transactions, FITERM III Transactions, and such other transaction categories as may from time to time be designated by the Funds by notice to Seller, Custodian and Repo Custodian. 2. Appointment of Repo Custodian. Upon the terms and conditions set forth in this Agreement, Repo Custodian is hereby appointed by the Funds to act as the custodian for the Participating Funds to hold cash, Cash Collateral and Securities for the purpose of effecting repurchase transactions for the Participating Funds through the Joint Trading Account pursuant to the Master Agreement. Repo Custodian hereby acknowledges the terms of the Master Agreement between the Funds and Seller (attached as an Exhibit hereto), as amended from time to time, and agrees to abide by the provisions thereof to the extent such provisions relate to the responsibilities and operations of Repo Custodian hereunder. 3. Maintenance of Transaction Accounts. (a) Repo Custodian shall establish and maintain one or more Transaction Accounts for the purpose of effecting repurchase transactions hereunder for the Funds, in each case pursuant to the Master Agreement. From time to time the Funds may cause Custodian, on behalf of the Funds, to deposit Securities and cash with Repo Custodian in the designated Transaction Account, in each case in accordance with Paragraph 3 of the Master Agreement. (b) Repo Custodian shall keep all Securities, cash and Cash Collateral received for the Participating Funds segregated at all times from those of any other person, firm or corporation in its possession and shall identify all such Securities, cash and Cash Collateral as subject to this Agreement and the Master Agreement. Segregation may be accomplished by physical segregation with respect to certificated securities held by the Repo Custodian and, in addition, by appropriate identification on the books and records of Repo Custodian in the case of all other Securities, cash and Cash Collateral. Title to all Securities and Cash Collateral under a repurchase transaction shall pass to the Participating Funds that are parties to such repurchase transaction. All such Securities and Cash Collateral shall be held by Repo Custodian for the Participating Funds, and shall be subject at all times to the proper instructions of the Participating Funds, or the Custodian on behalf of the Participating Funds, with respect to the holding, transfer or disposition of such Securities and Cash Collateral. Repo Custodian shall include in its records for each Transaction Account all instructions received by it which evidence an interest of the Participating Funds in the Securities and Cash Collateral and shall hold physically segregated any written agreement, receipt or other writing received by it which evidences an interest of the Participating Funds in the Securities and Cash Collateral. (c) Any requirement to "deliver" or "transfer" cash or Cash Collateral to the Participating Funds or to "credit" a Transaction Account under this or any other paragraph of this Agreement shall be made in immediately available funds. If Repo Custodian is required to "deliver" or "transfer" Securities to the Participating Funds under this or any other paragraph of this Agreement, Repo Custodian shall take, or cause to be taken, the following actions to perfect the Participating Funds' interest in such Securities as an outright purchaser: (i) in the case of certificated securities and instruments held by Seller, by physical delivery of the share certificates or other instruments representing the Securities and by physical segregation of such certificates or instruments from the Repo Custodian's other assets in a manner indicating that the Securities are being held for the Participating Funds (such securities and instruments to be delivered in form suitable for transfer or accompanied by duly executed instruments of transfer or assignment in blank and accompanied by such other documentation as the Participating Funds may request), (ii) in the case of Securities held in a customer only account in a clearing agency or federal book-entry system authorized for use by the Funds and meeting the requirements of Rule 17f-4 under the Investment Company Act of 1940, as amended (the "1940 Act") (such authorized agency or system being referred to herein as a "Securities System"), by appropriate entry on the books and records of Repo Custodian identifying the Securities as belonging to the Participating Funds, or (iii) in the case of Securities held in Repo Custodian's own account in a Securities System, by transfer to a customer only account in the Securities System and by appropriate entry on the books and records of Repo Custodian identifying such Securities as belonging to the Participating Funds; provided, further, that Repo Custodian shall confirm to the Participating Funds the identity of the Securities transferred or delivered. Acceptance of a "due bill", "trust receipt" or similar receipt or notification of segregation issued by a third party with respect to Securities held by such third party shall not constitute good delivery of Securities to Repo Custodian for purposes of this Agreement or the Master Agreement and shall expressly violate the terms of this Agreement and the Master Agreement. The Funds shall identify by notice to Repo Custodian and Seller those agencies or systems which have been approved by the Funds for use under this Agreement and the Master Agreement. The Funds hereby notify Repo Custodian and Seller that the following agencies and systems have been approved by the Funds for use under this Agreement and the Master Agreement, until such time as Repo Custodian and Seller shall have been notified by the Funds to the contrary: (i) Participants Trust Company; (ii) The Depository Trust Company; and (iii) any book-entry system as provided in (A) Subpart O of Treasury Circular No. 300, 31 CFR 306.115, (B) Subpart B of Treasury Circular Public Debt Series No. 27-76, 31 CFR 350.2, or (C) the book-entry regulations of federal agencies substantially in the form of 31 CFR 306.115. 4. Repurchase Transactions. (a) Repo Custodian shall make all credits and debits to the Transaction Account and effect the transfer of Securities to or from the Participating Funds upon proper instructions received from the Participating Funds, or the Custodian on behalf of the Participating Funds, and shall make all credits and debits to the Seller Account and effect the transfer of Securities to or from the Seller upon proper instructions received from Seller. In the event that Repo Custodian receives conflicting proper instructions from Seller and the Participating Funds, or the Custodian on behalf of the Participating Funds, Repo Custodian shall follow the Participating Funds' or the Custodian's proper instructions. The Participating Funds shall give Repo Custodian only such instructions as shall be permitted by the Master Agreement. Notwithstanding the preceding sentence, the Participating Funds, or the Custodian on behalf of the Participating Funds, may from time to time instruct Repo Custodian to transfer cash from the Transaction Account to Custodian. (b) (i) Whenever on any Banking Day one or more Funds and Seller agree to enter into a repurchase transaction, Seller and the Participating Funds, or the Custodian on behalf of the Participating Funds, will give Repo Custodian proper instructions by telephone or otherwise on the Sale Date, specifying the Transaction Category, Repurchase Date, Sale Price, Repurchase Price or the applicable Pricing Rate and the Margin Percentage for each such repurchase transaction. (ii) In the case of repurchase transactions in which the Repurchase Date is the Banking Day next following the Sale Date (x) the Participating Funds may increase or decrease the Sale Price for any such repurchase transaction by no more than 10% of the initial Sale Price by causing to be delivered further proper instructions by telephone or otherwise to Repo Custodian prior to the close of business on the Sale Date and (y) Seller and the Participating Funds may by mutual consent agree to increase or decrease the Sale Price by more than 10% of the initial Sale Price by causing to be provided further proper instructions to Repo Custodian by the close of business on the Sale Date. In any event, Repo Custodian shall not be responsible for determining whether any such increase or decrease of the Sale Price exceeds the 10% limitation. (c) Seller will take such actions as are necessary to ensure that on the Sale Date the aggregate Market Value of all Securities held by Repo Custodian for Seller and cash in the Seller Account equals or exceeds the Margin Percentage of the Sale Price. Seller shall give Repo Custodian proper instructions specifying with respect to each of the Securities which is to be the subject of a repurchase transaction (a) the name of the issuer and the title of the Securities, and (b) the Market Value of such Securities. Such instructions shall constitute Seller's instructions to Repo Custodian to transfer the Securities to the Participating Funds and/or Cash Collateral from the Seller Account to the Transaction Account. (d) Prior to the close of business on the Sale Date, the Participating Funds shall transfer to, or maintain on deposit with, Repo Custodian in the Transaction Account immediately available funds in an amount equal to the Sale Price with respect to a particular repurchase transaction. (e) Prior to the close of business on the Sale Date, Repo Custodian shall transfer Securities from Seller to the Participating Funds and/or cash held in the Seller Account to the Transaction Account and shall transfer to the Seller Account immediately available funds from the Transaction Account in accordance with the following provisions: (i) Repo Custodian shall determine that all securities to be transferred by Seller to the Participating Funds are Eligible Securities. Any securities which are not Eligible Securities for a particular repurchase transaction hereunder shall not be included in the calculations set forth below and shall not be transferred to the Participating Funds. (ii) Repo Custodian shall then calculate the aggregate Market Value of the Securities and cash, if any, to be so transferred. (iii) Repo Custodian shall notify Seller in the event that the aggregate Market Value of Securities and cash, if any, applicable to the repurchase transaction is less than the Margin Percentage of the Sale Price and Seller shall transfer, by the close of business on the Sale Date, to Repo Custodian additional Securities and/or cash in the amount of such deficiency. If Seller does not, by the close of business on the Sale Date, transfer additional Securities and/or cash, the Market Value of which equals or exceeds such deficiency, Repo Custodian may, at its option, without notice to Seller, advance the amount of such deficiency to Seller in order to effectuate the repurchase transaction. It is expressly agreed that Repo Custodian is not obligated to make an advance to Seller to enable it to complete any repurchase transaction. (iv) Subject to the provisions of Subparagraph (v) below, Repo Custodian shall cause the Securities applicable to the repurchase transaction received from Seller to be transferred to the Participating Funds and shall cause any cash received from Seller to be transferred to the Transaction Account, against transfer of the Sale Price from the Transaction Account to the Seller Account, such transfers of Securities and/or cash and funds to occur simultaneously on a delivery versus payment basis. (v) Notwithstanding anything to the contrary, if, for any repurchase transaction, the amount of immediately available funds in the Transaction Account is less than the agreed upon Sale Price in connection with the repurchase transaction immediately prior to effectuating such repurchase transaction, or if the aggregate Market Value of the Securities and cash, if any, applicable to such repurchase transaction is less than the Sale Price multiplied by the Margin Percentage immediately prior to effectuating such repurchase transaction, Repo Custodian shall effect the repurchase transaction to the best of its ability by transferring Securities from Seller to the Participating Funds and/or cash from the Seller Account to the Transaction Account with an aggregate Market Value equal to the lesser of (x) the amount of immediately available funds in the Transaction Account multiplied by the Margin Percentage and (y) the aggregate Market Value of the Securities available for transfer from Seller to the Participating Funds and cash, if any, in the Seller Account, against the transfer of immediately available funds from the Transaction Account to the Seller Account in an amount equal to the aggregate Market Value of the Securities and/or cash to be transferred divided by the Margin Percentage; provided, however, that in either such event Repo Custodian shall have the right not to transfer to the Participating Funds such Securities and not to transfer such cash, if any, to the Transaction Account and not to transfer from the designated Transaction Account such funds as Repo Custodian determines, in its sole discretion, will not be the subject of a repurchase transaction. The actions of Repo Custodian pursuant to this subparagraph (e)(v) shall not affect the obligations and liabilities of the parties to each other pursuant to the Master Agreement with regard to such repurchase transaction. (f) In the event that on a Banking Day Seller desires to substitute Securities applicable to such repurchase transaction with Eligible Securities and/or Cash Collateral (to the extent provided in the Master Agreement), Repo Custodian shall perform such substitution in accordance with the following provisions: (i) Repo Custodian shall determine that all securities to be transferred to the Participating Funds are Eligible Securities. Any securities which are not eligible for repurchase transactions hereunder shall not be included in the calculations set forth below and shall not be transferred to the Participating Funds. (ii) Repo Custodian shall then calculate the aggregate Market Value of the Eligible Securities and/or Cash Collateral to be transferred. Repo Custodian shall not make any substitution if, at the time of substitution, the aggregate Market Value of all Securities and any Cash Collateral applicable to such repurchase transaction immediately after such substitution would be less than the Margin Percentage of the Repurchase Price (calculated as if the Repurchase Date were the date of substitution). (iii) Repo Custodian shall then deliver to the Seller, subject to the qualifications set forth above, the Securities to be substituted against the delivery by Repo Custodian of substitute Eligible Securities to the Participating Funds and/or the crediting of the Transaction Account with Cash Collateral. (iv) In the event Seller has caused Repo Custodian to credit the Transaction Account with Cash Collateral in lieu of substitute Eligible Securities, and has failed to deliver Eligible Securities against such Cash Collateral not later than the close of business on such Banking Day in accordance with the terms of the Master Agreement, Repo Custodian shall promptly, but in no event later than 10:00 a.m. the following Banking Day, notify the Participating Funds and Seller of such failure. (g) With respect to each repurchase transaction, at 10:00 a.m. New York time, or at such other time as specified in proper instructions of the Participating Funds (or the Custodian on behalf of the Participating Funds) on the Repurchase Date, Repo Custodian shall debit the Seller Account and credit the Transaction Account in the amount of the Repurchase Price and shall transfer Securities from the Participating Funds to the Seller and Cash Collateral, if any, from the Transaction Account to the Seller Account in accordance with the following provisions: (i) If the amount of available funds in the Seller Account equals or exceeds the Repurchase Price, Repo Custodian shall debit the Seller Account and credit the Transaction Account in the amount of the Repurchase Price and shall transfer all Securities applicable to such repurchase transaction from the Participating Funds to the Seller and debit the Transaction Account and credit the Seller Account in the amount of any Cash Collateral applicable to such repurchase transaction. (ii) If the amount of available funds in the Seller Account is less than the Repurchase Price, then Repo Custodian shall notify the Seller of the amount of the deficiency and Seller shall promptly cause such amount to be transferred to the Seller Account. If Seller fails to cause the transfer of the entire amount of the deficiency to the Seller Account, then Repo Custodian may, at its option and without notice to Seller, advance to Seller the amount of such remaining deficiency. It is expressly agreed that Repo Custodian is not obligated to make any advance to Seller. If, following such transfer and/or advance, the amount of available funds in the Seller Account equals or exceeds the Repurchase Price then Repo Custodian shall debit the Seller Account and credit the Transaction Account in the amount of the Repurchase Price and shall transfer from the Participating Funds to the Seller all Securities applicable to such repurchase transaction and debit the Transaction Account and credit the Seller Account in the amount of any Cash Collateral applicable to such repurchase transaction. (iii) If the Seller fails to cause the transfer of the entire amount of the deficiency, as required by (ii) above, and Repo Custodian fails to advance to Seller an amount sufficient to eliminate the entire deficiency, then Repo Custodian shall debit the Seller Account in the amount of all immediately available funds designated by Seller as applicable to the repurchase transaction and credit the Transaction Account in such amount (such amount being referred to as the "Partial Payment") and shall transfer Securities from the Participating Funds to the Seller such that the aggregate Market Value of all remaining Securities and Cash Collateral in the Transaction Account with respect to such repurchase transaction shall at least equal the difference between Margin Percentage of the Repurchase Price and the Partial Payment. 5. Payments on Securities. Repo Custodian shall credit to the Seller Account as soon as received, all principal, interest and other sums paid by or on behalf of the issuer in respect of the Securities and collected by Repo Custodian, except as otherwise provided in Paragraph 8 of the Master Agreement. 6. Daily Statement. On each Banking Day on which any Participating Funds have an outstanding repurchase transaction, Repo Custodian shall deliver by facsimile to Custodian and to the Participating Funds a statement identifying the Securities held by Repo Custodian with respect to such repurchase transaction and the cash and Cash Collateral, if any, held by Repo Custodian in the Transaction Account, including a statement of the then current Market Value of such Securities and the amounts, if any, credited to the Transaction Account as of the close of trading on the previous Banking Day. Repo Custodian shall also deliver to Custodian and the Participating Funds such additional statements as the Participating Funds may reasonably request. 7. Valuation. (a) Repo Custodian shall confirm the Market Value of Securities and the amount of Cash Collateral, if any (i) on the Sale Date prior to transferring the Sale Price out of the Transaction Account to the Seller Account against the receipt from Seller of the Securities and Cash Collateral, if any, and (ii) on each Banking Day on which such repurchase transaction is outstanding. If on any Banking Day the aggregate Market Value of the Securities and Cash Collateral with respect to any repurchase transaction is less than the Margin Percentage of the Repurchase Price (calculated as if the Repurchase Date were such Banking Day) for such transaction, Repo Custodian shall promptly, but in any case no later than 10:00 a.m. the following Banking Day, notify Seller. If on any Banking Day the aggregate market value of the Securities and Cash Collateral with respect to any repurchase transaction is less than the Margin Percentage of the Repurchase Price (calculated as if the Repurchase Date were such Banking Day) for such transaction, and Seller fails to deliver additional Eligible Securities applicable to such repurchase transaction or an additional amount of Cash Collateral by the close of business on such Banking Day such that the aggregate market value of the Securities and Cash Collateral at least equals the Margin Percentage of the Repurchase Price (calculated as if the Repurchase Date were such Banking Day), Repo Custodian shall promptly, but in any event no later than 10:00 a.m. the following Banking Day, notify the Participating Funds of such failure. For purposes of determining Seller's margin maintenance requirements on the Sale Date for repurchase transactions in which the Repurchase Date is the Banking Day immediately following the Sale Date, such aggregate market value shall equal at least the Margin Percentage of the Sale Price. (b) Repo Custodian shall determine the bid side portion of the Market Value of the Securities by reference to the independent pricing services ("Pricing Services") set forth on Schedule B. It is understood and agreed that Repo Custodian shall use the prices made available by the Pricing Services on the Banking Day of such determination unless Seller and the Participating Funds mutually agree that some other prices shall be used and so notify Repo Custodian by proper instructions of the sum of the prices of all such Securities priced in such different manner. In the event that Repo Custodian is unable to obtain a valuation of any Securities from the Pricing Services, Repo Custodian shall request a bid quotation from a broker's broker or a broker dealer, set forth in Schedule B, other than Seller. In the event Repo Custodian is unable to obtain a bid quotation for any Securities from such a broker's broker or a broker dealer, Repo Custodian (i) shall not include any such Securities in the determination of whether the aggregate Market Value of the Securities and any Cash Collateral equals at least the Margin Percentage of the Repurchase Price and (ii) shall redeliver such Securities to Seller if the Market Value of all other Securities and any Cash Collateral with respect to such repurchase transaction equals at least the Margin Percentage of the Repurchase Price (calculated as if the Repurchase Date were such Banking Day). The Repo Custodian may rely on prices quoted by Pricing Services, broker's brokers or broker dealers, except Seller, as set forth in Schedule B. (c) (i) If, on any Banking Day, the aggregate Market Value of the Securities and any Cash Collateral with respect to a repurchase transaction is less than the Margin Percentage of the Repurchase Price (calculated as if the Repurchase Date were such Banking Day) applicable to such repurchase transaction, Repo Custodian shall deliver to the Participating Funds an amount of additional Eligible Securities applicable to such repurchase transaction and/or debit the Seller Account and credit the Transaction Account with an additional amount of Cash Collateral, such that the aggregate Market Value of all Securities and any Cash Collateral with respect to such repurchase transaction shall equal at least the Margin Percentage of the Repurchase Price (calculated as if the Repurchase Date were such Banking Day) applicable to such repurchase transaction; except that, for purposes of determining Seller's margin maintenance requirements on the Sale Date for repurchase transactions in which the Repurchase Date is the Banking Day immediately following the Sale Date, such aggregate market value shall equal at least the Margin Percentage of the Sale Price. (ii) If, on any Banking Day, the aggregate Market Value of the Securities and any Cash Collateral with respect to a repurchase transaction exceeds the Margin Percentage of the Repurchase Price (calculated as if the Repurchase Date were such Banking Day) applicable to such repurchase transaction, Repo Custodian shall return to the Seller all or a portion of such Securities or Cash Collateral, if any; provided that the Market Value of the remaining Securities and any Cash Collateral with respect to the repurchase transaction shall be at least equal to the Margin Percentage of the Repurchase Price (calculated as if the Repurchase Date were such Banking Day) applicable to such repurchase transaction. At any time and from time to time with respect to any repurchase transaction, if authorized by the Participating Funds, or the Custodian on behalf of the Participating Funds, the Repo Custodian shall debit the Transaction Account by an amount of Cash Collateral and credit the Seller Account by the same amount of Cash Collateral against simultaneous delivery from Seller to the Participating Funds of Eligible Securities applicable to such repurchase transaction with a Market Value at least equal to the amount of Cash Collateral credited and debited. 8. Authorized Persons. Schedule C hereto sets forth those persons who are authorized to act for Repo Custodian, Custodian, Seller and the Funds, respectively, under this Agreement. 9. Proper Instructions. Proper instructions shall mean a tested telex, facsimile, a written request, direction, instruction or certification signed or initialed by or on behalf of the party giving the instructions by one or more authorized persons (as provided in Paragraph 8); provided, however, that no instructions directing the delivery of Securities or the payment of funds to any individual who is an authorized signatory of Custodian or Repo Custodian shall be signed by that individual. Telephonic, other oral or electro-mechanical or electronic instructions (including the code which may be assigned by Repo Custodian to Custodian from time to time) given by one of the above authorized persons shall also be considered proper instructions if the party receiving such instructions reasonably believes them to have been given by an authorized person with respect to the transaction involved. Oral instructions will be confirmed by tested telex, facsimile or in writing in the manner set forth above. The Funds authorize Repo Custodian to tape record any and all telephonic or other oral instructions given to Repo Custodian. Proper instructions may relate to specific transactions or to types or classes of transactions, and may be in the form of standing instructions. 10. Standard of Care. (a) Repo Custodian shall be obligated to exercise reasonable care and diligence in carrying out the provisions of this Agreement and the Master Agreement and shall be liable to each of the Funds and Seller for any expenses or damages to the Funds or Seller for breach of Repo Custodian's standard of care in this Agreement, as further provided in this Paragraph. Repo Custodian assumes responsibility for loss to any property held by it pursuant to the provisions of this Agreement which is occasioned by the negligence of, or conversion, misappropriation or theft by, Repo Custodian's officers, employees and agents. Repo Custodian, at its option, may insure itself against loss from any cause but shall be under no obligation to obtain insurance directly for the benefit of the Funds. So long as and to the extent that Repo Custodian exercises reasonable care and diligence and acts without negligence, misfeasance or misconduct, Repo Custodian shall not be liable to Seller or the Funds for (i) any action taken or omitted in good faith in reliance upon proper instructions, (ii) any action taken or omitted in good faith upon any notice, request, certificate or other instrument reasonably believed by it to be genuine and to be signed by the proper party or parties, (iii) any delay or failure to act as may be required under this Agreement or under the Master Agreement when such delay or failure is due to any act of God or war, (iv) the actions or omissions of a Securities System, (v) the title, validity or genuineness of any security received, delivered or held by it pursuant to this Agreement or the Master Agreement, (vi) the legality of the purchase or sale of any Securities by or to the Participating Funds or Seller or the propriety of the amount for which the same are purchased or sold (except to the extent of Repo Custodian's obligations hereunder to determine whether securities are Eligible Securities and to calculate the Market Value of Securities and any Cash Collateral), (vii) the due authority of any person listed on Schedule C to act on behalf of Custodian, Seller or the Funds, as the case may be, with respect to this Agreement or (viii) the errors of the Pricing Services, broker's brokers or broker dealers set forth in Schedule B. (b) Repo Custodian shall not be liable to Seller or the Funds for, or considered to be the custodian of, any Eligible Securities or any money to be used in a repurchase transaction, whether or not such money is represented by any check, draft, or other instrument for the payment of money, until the Eligible Securities have been delivered in accordance with Paragraph 3 or until Repo Custodian actually receives and collects such money on behalf of Seller or the Funds directly or by the final crediting of the Seller Account or a Transaction Account through the Securities System, except that this Paragraph 10(b) shall not be deemed to limit the liability of Repo Custodian to Seller or the Funds if the non-delivery of such Eligible Securities or the failure to receive and collect such money results from the breach by Repo Custodian of its obligations under this Agreement or the Master Agreement. (c) Repo Custodian shall not be under any duty or obligation to ascertain whether any Securities at any time delivered to or held by it are such as properly may be held by the Participating Funds; provided that notwithstanding anything to the contrary herein, Repo Custodian shall be obligated to act in accordance with the guidelines and proper instructions of the Participating Funds, or the Custodian on behalf of the Participating Funds, with respect to the types of Eligible Securities and the issuers of such Eligible Securities that may be used in specific repurchase transactions. (d) Repo Custodian promptly shall notify the Fund Agent and the Custodian if Securities held by Repo Custodian are in default or if payment on any Securities has been refused after due demand and presentation and Repo Custodian shall take action to effect collection of any such amounts upon the proper instructions of the Participating Funds, or the Custodian on behalf of the Participating Funds, and assurances satisfactory to it that it will be reimbursed for its costs and expenses in connection with any such action. (e) Repo Custodian shall have no duties, other than such duties as are necessary to effectuate repurchase transactions in accordance with this Agreement and the Master Agreement within the standard of care set forth in Paragraph 10(a) above and in a commercially reasonable manner. 11. Representations and Additional Covenants of Repo Custodian. (a) Repo Custodian represents and warrants that (i) it is duly authorized to execute and deliver this Agreement and to perform its obligations hereunder and has taken all necessary action to authorize such execution, delivery and performance, (ii) the execution, delivery and performance of this Agreement do not and will not violate any ordinance, declaration of trust, partnership agreement, articles of incorporation, charter, rule or statute applicable to it or any agreement by which it is bound or by which any of its assets are affected, (iii) the person executing this Agreement on its behalf is duly and properly authorized to do so, (iv) it has (and will maintain) a copy of this Agreement and evidence of its authorization in its official books and records, and (v) this Agreement has been executed by one of its duly authorized officers at the level of Vice President or higher. (b) Repo Custodian further represents and warrants that (i) it has not pledged, encumbered, hypothecated, transferred, disposed of, or otherwise granted, any third party an interest in any Securities, (ii) it does not have any security interest, lien or right of setoff in the Securities, and (iii) it has not been notified by any third party, in its capacity as Repo Custodian, custodian bank or clearing bank, of the existence of any lien, claim, charge or encumbrance with respect to any Securities that are the subject of such repurchase transaction. Repo Custodian agrees that (i) it will not pledge, encumber, hypothecate, transfer, dispose of, or otherwise grant, any third party an interest in any Securities, (ii) it will not acquire any security interest, lien or right of setoff in the Securities, and (iii) it will promptly notify the Fund Agent, if, during the term of any outstanding repurchase transaction, it is notified by any third party, in its capacity as Repo Custodian, custodian bank or clearing bank, of the Participating Funds or Seller, of the existence of any lien, claim, charge or encumbrance with respect to any Securities that are the subject of such repurchase transaction. 12. Indemnification. (a) Notwithstanding the Participating Fund's obligation to the Repo Custodian under Paragraph 12(b) below, so long as and to the extent that Repo Custodian is in the exercise of reasonable care and diligence and acts without negligence, misfeasance or misconduct, Seller will indemnify Repo Custodian and hold it harmless against any and all losses, claims, damages, liabilities or actions to which it may become subject, and reimburse it for any expenses (including attorneys' fees and expenses) incurred by it in connection therewith, insofar as such losses, claims, damages, liabilities or actions arise out of or are based upon or in any way related to this Agreement, the Master Agreement or those arrangements. Without limiting the generality of the foregoing indemnification, Repo Custodian shall be indemnified by Seller for all costs and expenses, including attorneys' fees, for its successful defense against claims that Repo Custodian breached its standard of care and was negligent or engaged in misfeasance or misconduct. (b) So long as and to the extent that Repo Custodian is in the exercise of reasonable care and diligence and acts without negligence, misconduct or misfeasance, the Participating Funds will indemnify Repo Custodian and hold it harmless against any and all losses, claims, damages, liabilities or actions to which it may become subject, and reimburse it for any expenses (including attorneys' fees and expenses) incurred by it in connection therewith, insofar as such losses, claims, damages, liabilities or actions result from the negligence, misconduct or misfeasance of the Participating Funds under this Agreement. 13. Rights and Remedies. The rights and remedies conferred upon the parties hereto shall be cumulative, and the exercise or waiver of any thereof shall not preclude or inhibit the exercise of any additional rights and remedies. 14. Modification or Amendment. Except as otherwise provided in this Paragraph 14, no modification, waiver or amendment of this Agreement shall be binding unless in writing and executed by the parties hereto. Schedule A, listing the Funds, may be amended from time to time to add or delete Funds by the Funds (i) delivering an executed copy of an addendum to Schedule A to Seller and Repo Custodian, and (ii) amending Schedule A to the Master Agreement in accordance with the provisions therein. The amendment of Schedule A as provided above shall constitute appointment of Repo Custodian as a custodian for such Fund. Schedule B may be amended from time to time by an instrument in writing, or counterpart thereof, executed by Repo Custodian, Seller and the Funds. Schedule C may be amended from time to time to change an authorized person of: (i) the Funds, by written notice to Repo Custodian and Seller by Ms. Sarah Zenoble or the Treasurer of the Funds (or such persons who may be authorized from time to time in writing by Ms. Zenoble or the President or Treasurer of Fidelity Management and Research Company to trade on behalf of Fidelity's taxable money market funds); (ii) Seller, by written notice to Repo Custodian and the Funds by any Vice President of Seller; (iii) Repo Custodian, by written notice to Seller, Custodian and the Funds by any Vice President of Repo Custodian; and (iv) Custodian, by written notice to Repo Custodian by any Vice President of Custodian. Schedule D may be amended from time to time by any party hereto by delivery of written notice to the other parties hereto. Repo Custodian shall receive notice of any amendment to the Master Agreement at the address set forth in Schedule D hereto; and, if such amendment would have a material adverse effect on the rights of, or would materially increase the obligations of Repo Custodian under this Agreement, any such amendment shall also require the consent of Repo Custodian. Any such amendment shall be deemed not to be material if Repo Custodian fails to object in writing within 21 days after receipt of notice thereof. No amendment to this Agreement shall affect the rights or obligations of any Fund with respect to any outstanding repurchase transaction entered into under this Agreement and the Master Agreement prior to such amendment or with respect to any actions or omissions by any party hereto prior to such amendment. In the event of conflict between this Agreement and the Master Agreement, the Master Agreement shall control. 15. Termination. This Agreement shall terminate forthwith upon termination of the Master Agreement or may be terminated by any party hereto on ten Banking Days' written notice to the other parties; provided, however, that any such termination shall not affect any repurchase transaction then outstanding or any rights or obligations under this Agreement or the Master Agreement with respect to any actions or omissions of any party hereto prior to termination. In the event of termination, Repo Custodian will deliver any Securities, Cash Collateral or cash held by it or any agent to Custodian or to such successor custodian or custodian or subcustodian as the Participating Funds shall instruct. 16. Compensation. Seller agrees to pay Repo Custodian compensation for the services to be rendered hereunder, based upon rates which shall be agreed upon from time to time. 17. Notices. Except with respect to communications between Custodian and the Funds which shall be governed by the custodian agreement or subcustodian agreement between such parties, as the case may be, and except as otherwise provided herein or as the parties to the Agreement shall from time to time otherwise agree, all instructions, notices, reports and other communications contemplated by this Agreement shall be given to the party entitled to receive such notice at the telephone number and address listed on Schedule D hereto. 18. Severability. If any provision of this Agreement is held to be unenforceable as a matter of law, the other terms and provisions hereof shall not be affected thereby and shall remain in full force and effect. 19. Binding Nature. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their successors and assignees; provided that, no party hereto may assign this Agreement or any of the rights or obligations hereunder without the prior written consent of the other parties. 20. Headings. Section headings are for reference purposes only and shall not be construed as a part of this Agreement. 21. Counterparts. This Agreement may be executed in one or more counterparts, all of which taken together shall constitute one instrument. 22. Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO THE CONFLICT OF LAW PRINCIPLES THEREOF. 23. Limitation of Liability. Seller is hereby expressly put on notice that the Declarations of Trust or the Certificates and Agreements of Limited Partnership, as the case may be, of each Participating Fund contain a limitation of liability provision pursuant to which the obligations assumed by such Participating Fund hereunder shall be limited in all cases to such Participating Fund and its assets or, in the case of a series Fund, to the assets of that series only, and neither Seller nor its respective agents or assigns shall seek satisfaction of any such obligation from the officers, employees, agents, directors, trustees, shareholders or partners of any such Participating Fund or series. 24. Rights and Obligations of Each Fund. The rights and obligations set forth in this Agreement with respect to each repurchase transaction shall accrue only to the Participating Funds in accordance with their respective interests therein. No other Fund shall receive any rights or have any liabilities arising from any action or inaction of any Participating Fund under this Agreement with respect to such repurchase transaction. 25. General Provisions. This Agreement supersedes any other custodian agreement by and among Seller, the Funds, and Repo Custodian concerning repurchase transactions effected through the Joint Trading Account. It is understood and agreed that time is of the essence with respect to the performance of each party's respective obligations hereunder. 26. Disclosure Relating to Certain Federal Protections The parties acknowledge that they have been advised that: (a) In the case of transactions in which one of the parties is a broker or dealer registered with the SEC under Section 15 of the Exchange Act, the Securities Investor Protection Corporation has taken the position that the provisions of the Securities Investor Protection Act of 1970 (the "SIPA") do not protect the other party with respect to any transaction hereunder; and (b) In the case of transactions in which one of the parties is a government securities broker or a government securities dealer registered with the SEC under Section 15C of the Exchange Act, SIPA will not provide protection to the other party with respect to any transaction hereunder. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the day and year first above written. [Signature Lines Omitted] SCHEDULE B PRICING SOURCES PRICING SERVICES U.S. Government Securities Interactive Data Services or Mellon Data Services (or any other pricing service mutually agreed upon by Seller and the Funds) GNMA - The Bond Buyer FHLMC - The Bond Buyer All other U.S. Government and Agency Securities Interactive Data Services or Mellon Data Services (or any other pricing service mutually agreed upon by Seller and the Funds) BROKERS' BROKERS AND BROKER DEALERS U.S. Government Securities - Any Primary Dealer GNMA - Any Primary Broker-Dealer's bid rate for such security FHLMC - Any Primary Broker-Dealer's bid rate for such security All other U.S. Government and Agency Securities - Any Primary Broker-Dealer's bid rate for such security Prices shall be as of the business day of the date of determination or the last quote available. The pricing services, Brokers' Brokers and Broker Dealers may be changed from time to time by agreement of all the parties. SCHEDULE C AUTHORIZED PERSONS Repo Custodian Ken Rindos Kurt Woetzel Custodian Ken Rindos Kurt Woetzel Seller Joseph P. Blauvelt Michael B. Boyer Robert E. Curry Patrick Doyle Frank Forgione Edward J. Frederick Christopher Juliano Joseph Marrone Thomas T. McGee John S. Mehrtens John A. Michielini Allen Smith, II The Funds Barron, Leland C. Harlow, Katharyn M. Stehman, Burnell R. Carbone, John M. Henning, Frederick L. Jr. Todd, Deborah Curtis, Fritz Huyck, Timothy Todd, John J. Duby, Robert K. Jamen, Jon Torres, Joseph E. Egan, Dorothy T. Litterst, Robert Williams, Richard Glocke, David Silver, Samuel Zenoble, Sarah SCHEDULE D NOTICES If to Custodian: The Bank of New York One Wall Street, 4th Floor New York, NY 10286 Telephone: (212) 635-7947 Attention: Sherman Yu, Esq. With a copy to the Fund Agent If to Repo Custodian: The Bank of New York One Wall Street, 4th Floor New York, New York 10286 Telephone: (212) 635-4809 Attention: Ms. Kristin Smith If to Seller: J.P. Morgan Securities Inc. 60 Wall Street New York, New York 10260 Telephone: (212) 483-2323 Attention: Middle Office Traders Support If to any of the Funds: FMR Texas Inc. 400 East Las Colinas Blvd., CP9M Irving, Texas 75039 Telephone: (214) 584-7800 Attention: Ms. Deborah R. Todd or Mr. Samuel Silver If to the Fund Agent: Fidelity Investments [Name of Fund] 400 East Las Colinas Blvd., CP9E Irving, Texas 75039 Telephone: (214) 584-4071 Attention: Mr. Mark Mufler 277282.c1 Exhibit 8(m) FORM OF SCHEDULE 1 The following lists the additional counterparties to the Repo Custodian Agreement for Joint Trading Account between The Bank of New York and the Fidelity Funds: BZW Government Securities, Inc. CS First Boston Corp. Daiwa Securities America, Inc. Deutsche Bank Securities Corp. Donaldson, Lufkin & Jenerette Securities Corp. Fuji Securities, Inc. Goldman Sachs & Co Morgan Stanley & Co., Inc. NationsBanc Capital Markets Nikko Securities Co. International, Inc. Nomura Securities International, Inc. Prudential Securities, Inc. Salomon Brothers, Inc. Sanwa BJK Securities Co., LP SBC Capital Markets, Inc. Smith Barney, Inc. EX-99.B8 9 Exhibit 8(n) Form of FIDELITY GROUP REPO CUSTODIAN AGREEMENT FOR JOINT TRADING ACCOUNT AGREEMENT dated as of ________, among CHEMICAL BANK, a banking corporation organized under the laws of the State of New York ("Repo Custodian"), GREENWICH CAPITAL MARKETS, INC. ("Seller") and each of the entities listed on Schedule A-1, A-2, A-3 and A-4 hereto acting on behalf of itself or (i) in the case of a series company, on behalf of one or more of its portfolios or series listed on Schedule A-1 or A-2 hereto, (ii) in the case of the accounts listed on Schedule A-3 hereto, acting through Fidelity Management & Research Company, and (iii) in the case of the commingled or individual accounts listed on Schedule A-4 hereto, acting through Fidelity Management Trust Company (collectively, the "Funds" and each, a "Fund"). WITNESSETH WHEREAS, each of the Funds has entered into a master repurchase agreement dated as of _____________, (the "Master Agreement") with Seller pursuant to which from time to time one or more of the Funds, as buyers, and Seller, as seller, may enter into repurchase transactions effected through one or more joint trading accounts (collectively, the "Joint Trading Account") established and administered by one or more custodians of the Funds identified on Schedule C hereto (each a "Custodian"); and, WHEREAS, in each such repurchase transaction Seller will sell to such Funds certain Securities (as hereinafter defined) selected from Eligible Securities (as hereinafter defined) held by Repo Custodian , subject to an agreement by Seller to repurchase such Securities; and WHEREAS, Repo Custodian currently maintains a cash and securities account (the "Seller Account") for Seller for the purpose of, among other things, effecting repurchase transactions hereunder; and WHEREAS, the Funds desire that the Repo Custodian serve as the custodian for each of the Funds in connection with the repurchase transactions effected hereunder, and that the Repo Custodian hold cash, Cash Collateral (as hereinafter defined) and Securities for each of the Funds for the purpose of effecting repurchase transactions hereunder. NOW THEREFORE, the parties hereto hereby agree as follows: 1. Definitions. Whenever used in this Agreement, the following terms shall have the meanings set forth below: (a) "Banking Day" shall mean any day on which the Funds, Seller Custodian, Repo Custodian, and the Federal Reserve Banks where the Custodian and the Repo Custodian are located, are each open for business. (b) "Cash Collateral" shall mean all cash, denominated in U.S. Dollars, credited by Repo Custodian to a Transaction Account pursuant to Paragraphs 3, 6, 8 or 9 of the Master Agreement. (c) "Custodian" shall have the meaning set forth in the preamble of this Agreement. (d) "Eligible Securities" shall mean those securities which are identified as permissible securities for a particular Transaction Category. (e) "FICASH I Transaction" and "FICASH III Transaction" shall mean a repurchase transaction in which the Repurchase Date is the Banking Day next following the Sale Date and for which securities issued by the government of the United States of America that are direct obligations of the government of the United States of America shall constitute Eligible Securities. (f) "FICASH II Transaction" shall mean a repurchase transaction in which the Repurchase Date is the Banking Day next following the Sale Date and for which one or more of the following two categories of securities, as specified by the Funds, shall constitute Eligible Securities: (x) securities issued by the government of the United States of America that are direct obligations of the government of the United States of America, or (y) securities issued by or guaranteed as to principal and interest by the government of the United States of America, or by its agencies and/or instrumentalities, including, but not limited to, the Federal Home Loan Bank, Federal Home Loan Mortgage Corp., Government National Mortgage Association, Federal National Mortgage Association, Federal Farm Credit Bank, Federal Intermediate Credit Bank, Banks for Cooperatives, and Federal Land Banks. (g) "FITERM I Transaction" and "FITERM III Transaction" shall mean a repurchase transaction in which the Repurchase Date is a date fixed by agreement between Seller and the Participating Funds which is not the Banking Day next following the Sale Date, or if applicable, the date fixed upon exercise of an Unconditional Resale Right (as hereinafter defined) by the Participating Funds and for which securities issued by the government of the United States of America that are direct obligations of the government of the United States of America shall constitute Eligible Securities. (h) "FITERM II Transaction" shall mean a repurchase transaction in which the Repurchase Date is a date fixed by agreement between Seller and the Participating Funds which is not the Banking Day next following the Sale Date, or, if applicable, the date fixed upon exercise of an Unconditional Resale Right (as hereinafter defined) by the Participating Funds and for which one or more of the following two categories of securities, as specified by the Funds, shall constitute Eligible Securities: (x) securities issued by the government of the United States of America that are direct obligations of the government of the United States of America, or (y) securities issued by or guaranteed as to principal and interest by the government of the United States of America, or by its agencies and/or instrumentalities, including, but not limited to, the Federal Home Loan Bank, Federal Home Loan Mortgage Corp., Government National Mortgage Association, Federal National Mortgage Association, Federal Farm Credit Bank, Federal Intermediate Credit Bank, Banks for Cooperatives, and Federal Land Banks. (i) "Fund" shall have the meaning set forth in the preamble of this Agreement. (j) "Fund Agent" shall mean the agent for the Participating Funds designated in Paragraph 18 of the Master Agreement. (k) "Joint Trading Account" shall have the meaning set forth in the preamble of this Agreement. (l) "Margin Percentage" with respect to any repurchase transaction shall be 102% or such other percentage as is agreed to by Seller and the Participating Funds (except that in no event shall the Margin Percentage be less than 100%). (m) "Market Value" shall have the meaning set forth in Paragraph 4 of the Master Agreement. (n) "Master Agreement" shall have the meaning set forth in the preamble of this Agreement. (o) "1940 Act" shall mean have the meaning set forth in Paragraph 3(c) of this Agreement. (p) "Partial Payment" shall have the meaning set forth in Section 4(g) of this Agreement. (q) "Participating Funds" shall mean those Funds that are parties to a particular repurchase transaction effected through the Joint Trading Account. (r) "Pricing Rate" shall mean the per annum percentage rate agreed to by Seller and the Participating Funds for a particular repurchase transaction. (s) "Pricing Services" shall have the meaning set forth in Paragraph 7 of this Agreement. (t) "Repo Custodian" shall have the meaning set forth in the preamble of this Agreement. (u) "Repurchase Date" shall mean the date fixed by agreement between Seller and the Participating Funds on which the Seller is to repurchase Securities and Cash Collateral, if any, from the Participating Funds and the Participating Funds are to resell the Securities and Cash Collateral, if any, including any date determined by application of the provisions of Paragraphs 7(a) and 15 of the Master Agreement. (v) "Repurchase Price" for each repurchase transaction shall mean the Sale Price, plus an incremental amount determined by applying the Pricing Rate to the Sale Price, calculated on the basis of a 360-day year and the number of actual days elapsed from (and including) the Sale Date to (but excluding) the Repurchase Date. (w) "Sale Date" shall mean the Banking Day on which Securities and Cash Collateral, if any, are to be sold to the Participating Funds by Seller pursuant to a repurchase transaction hereunder. (x) "Sale Price" shall mean the price agreed upon by the Participating Funds and Seller at which the Securities and Cash Collateral, if any, are to be sold to the Participating Funds by Seller. (y) "Securities" shall mean all Eligible Securities delivered by Seller or to be delivered by Seller to the Participating Funds pursuant to a particular repurchase transaction and not yet repurchased hereunder, together with all rights related thereto and all proceeds thereof. (z) "Securities System" shall have the meaning set forth in Paragraph 3(c) of this Agreement. (aa) "Seller" shall have the meaning set forth in the preamble to this Agreement. (bb) "Seller Account" shall have the meaning set forth in the preamble of this Agreement. (cc) "Transaction Account" shall mean a cash account established and maintained by Repo Custodian for the Funds to effect repurchase transactions pursuant to the Master Agreement. (dd) "Transaction Category" shall mean the particular type of repurchase transaction effected hereunder, as determined with reference to the term of the transaction and the categories of Securities that constitute Eligible Securities therefor, which term shall include FICASH I Transactions, FICASH II Transactions, FICASH III Transactions, FITERM I Transactions, FITERM II Transactions, FITERM III Transactions, and such other transaction categories as may from time to time be designated by the Funds by notice to Seller, Custodian and Repo Custodian. (ee) "Unconditional Resale Right" shall have the meaning set forth in Paragraph 7(b) of the Master Agreement. (ff) "Valuation Day" shall mean any day on which Repo Custodian is open for business. 2. Appointment of Repo Custodian. Upon the terms and conditions set forth in this Agreement, Repo Custodian is hereby appointed by the Funds to act as the custodian for the Participating Funds to hold cash, Cash Collateral and Securities for the purpose of effecting repurchase transactions for the Participating Funds through the Joint Trading Account pursuant to the Master Agreement. Repo Custodian hereby acknowledges the terms of the Master Agreement between the Funds and Seller (attached as an Exhibit hereto), as amended from time to time, and agrees to abide by the provisions thereof to the extent such provisions relate to the responsibilities and operations of Repo Custodian hereunder. 3. Maintenance of Transaction Accounts. (a) Repo Custodian shall establish and maintain one or more Transaction Accounts for the purpose of effecting repurchase transactions hereunder for the Funds, in each case pursuant to the Master Agreement. From time to time the Funds may cause Custodian, on behalf of the Funds, to deposit Securities and cash with Repo Custodian in the designated Transaction Account, in each case in accordance with Paragraph 3 of the Master Agreement. (b) Repo Custodian shall keep all Securities, cash and Cash Collateral received for the Participating Funds segregated at all times from those of any other person, firm or corporation in its possession and shall identify all such Securities, cash and Cash Collateral as subject to this Agreement and the Master Agreement. Segregation may be accomplished by physical segregation with respect to certificated securities held by the Repo Custodian and, in addition, by appropriate identification on the books and records of Repo Custodian in the case of all other Securities, cash and Cash Collateral. Title to all Securities and Cash Collateral under a repurchase transaction shall pass to the Participating Funds that are parties to such repurchase transaction. All such Securities and Cash Collateral shall be held by Repo Custodian for the Participating Funds, and shall be subject at all times to the proper instructions of the Participating Funds, or the Custodian on behalf of the Participating Funds, with respect to the holding, transfer or disposition of such Securities and Cash Collateral. Repo Custodian shall include in its records for each Transaction Account all instructions received by it which evidence an interest of the Participating Funds in the Securities and Cash Collateral and shall hold physically segregated any written agreement, receipt or other writing received by it which evidences an interest of the Participating Funds in the Securities and Cash Collateral. (c) Any requirement to "deliver" or "transfer" cash or Cash Collateral to the Participating Funds or to "credit" a Transaction Account under this or any other paragraph of this Agreement shall be made in immediately available funds. If Repo Custodian is required to "deliver" or "transfer" Securities to the Participating Funds under this or any other paragraph of this Agreement, Repo Custodian shall take, or cause to be taken, the following actions to perfect the Participating Funds' interest in such Securities as an outright purchaser: (i) in the case of certificated securities and instruments held by Seller, by physical delivery of the share certificates or other instruments representing the Securities and by physical segregation of such certificates or instruments from the Repo Custodian's other assets in a manner indicating that the Securities are being held for the Participating Funds (such securities and instruments to be delivered in form suitable for transfer or accompanied by duly executed instruments of transfer or assignment in blank and accompanied by such other documentation as the Participating Funds may request), (ii) in the case of Securities held in a customer only account in a clearing agency or federal book-entry system authorized for use by the Funds and meeting the requirements of Rule 17f-4 under the Investment Company Act of 1940, as amended (the "1940 Act") (such authorized agency or system being referred to herein as a "Securities System"), by appropriate entry on the books and records of Repo Custodian identifying the Securities as belonging to the Participating Funds, or (iii) in the case of Securities held in Repo Custodian's own account in a Securities System, by transfer to a customer only account in the Securities System and by appropriate entry on the books and records of Repo Custodian identifying such Securities as belonging to the Participating Funds; provided, further, that Repo Custodian shall confirm to the Participating Funds the identity of the Securities transferred or delivered. Acceptance of a "due bill", "trust receipt" or similar receipt or notification of segregation issued by a third party with respect to Securities held by such third party shall not constitute good delivery of Securities to Repo Custodian for purposes of this Agreement or the Master Agreement and shall expressly violate the terms of this Agreement and the Master Agreement. The Funds shall identify by notice to Repo Custodian and Seller those agencies or systems which have been approved by the Funds for use under this Agreement and the Master Agreement. The Funds hereby notify Repo Custodian and Seller that the following agencies and systems have been approved by the Funds for use under this Agreement and the Master Agreement, until such time as Repo Custodian and Seller shall have been notified by the Funds to the contrary: (i) Participants Trust Company; (ii) The Depository Trust Company; and (iii) any book-entry system as provided in (A) Subpart O of Treasury Circular No. 300, 31 CFR 306.115, (B) Subpart B of Treasury Circular Public Debt Series No. 27-76, 31 CFR 350.2, or (C) the book-entry regulations of federal agencies substantially in the form of 31 CFR 306.115. 4. Repurchase Transactions. (a) Repo Custodian shall make all credits and debits to the Transaction Account and effect the transfer of Securities to or from the Participating Funds upon proper instructions received from the Participating Funds, or the Custodian on behalf of the Participating Funds, and shall make all credits and debits to the Seller Account and effect the transfer of Securities to or from the Seller upon proper instructions received from Seller. In the event that Repo Custodian receives conflicting proper instructions from Seller and the Participating Funds, or the Custodian on behalf of the Participating Funds, Repo Custodian shall follow the Participating Funds' or the Custodian's proper instructions. The Participating Funds shall give Repo Custodian only such instructions as shall be permitted by the Master Agreement. Notwithstanding the preceding sentence, the Participating Funds, or the Custodian on behalf of the Participating Funds, may from time to time instruct Repo Custodian to transfer cash from the Transaction Account to Custodian so long as such transfer is not in contravention of the Master Agreement. (b) (i) Whenever on any Banking Day one or more Funds and Seller agree to enter into a repurchase transaction, Seller and the Participating Funds, or the Custodian on behalf of the Participating Funds, will give Repo Custodian proper instructions by telephone or otherwise by 5:00 p.m. New York time on the Sale Date, specifying the Transaction Category, Repurchase Date, Sale Price, Repurchase Price or the applicable Pricing Rate and the Margin Percentage for each such repurchase transaction. (ii) In the case of repurchase transactions in which the Repurchase Date is the Banking Day next following the Sale Date (x) the Participating Funds may increase or decrease the Sale Price for any such repurchase transaction by no more than 10% of the initial Sale Price by causing to be delivered further proper instructions by telephone or otherwise to Repo Custodian by 5:15 p.m. New York time (or at such later time as may be agreed upon by the parties) on the Sale Date and (y) Seller and the Participating Funds may by mutual consent agree to increase or decrease the Sale Price by more than 10% of the initial Sale Price by causing to be provided further proper instructions to Repo Custodian by the close of business on the Sale Date. In any event, Repo Custodian shall not be responsible for determining whether any such increase or decrease of the Sale Price exceeds the 10% limitation. (c) Seller will take such actions as are necessary to ensure that on the Sale Date the aggregate Market Value of all Securities held by Repo Custodian for Seller and cash in the Seller Account equals or exceeds the Margin Percentage of the Sale Price. Seller shall give Repo Custodian proper instructions specifying with respect to each of the Securities which is to be the subject of a repurchase transaction (a) the name of the issuer and the title of the Securities, and (b) the Market Value of such Securities. Such instructions shall constitute Seller's instructions to Repo Custodian to transfer the Securities to the Participating Funds and/or Cash Collateral from the Seller Account to the Transaction Account. (d) By 5:00 p.m. New York Time on the Sale Date, the Participating Funds shall transfer to, or maintain on deposit with, Repo Custodian in the Transaction Account immediately available funds in an amount equal to the Sale Price with respect to a particular repurchase transaction. (e) Prior to the close of business on the Sale Date, Repo Custodian shall transfer Securities from Seller to the Participating Funds and/or cash held in the Seller Account to the Transaction Account and shall transfer to the Seller Account immediately available funds from the Transaction Account in accordance with the following provisions: (i) Repo Custodian shall determine that all securities to be transferred by Seller to the Participating Funds are Eligible Securities. Any securities which are not Eligible Securities for a particular repurchase transaction hereunder shall not be included in the calculations set forth below and shall not be transferred to the Participating Funds. (ii) Repo Custodian shall then calculate the aggregate Market Value of the Securities and cash, if any, to be so transferred. (iii) Repo Custodian shall notify Seller in the event that the aggregate Market Value of Securities and cash, if any, applicable to the repurchase transaction is less than the Margin Percentage of the Sale Price and Seller shall transfer, by the close of business on the Sale Date, to Repo Custodian additional Securities and/or cash in the amount of such deficiency. If Seller does not, by the close of business on the Sale Date, transfer additional Securities and/or cash, the Market Value of which equals or exceeds such deficiency, Repo Custodian may, at its option, without notice to Seller, advance the amount of such deficiency to Seller in order to effectuate the repurchase transaction. It is expressly agreed that Repo Custodian is not obligated to make an advance to Seller to enable it to complete any repurchase transaction. (iv) Subject to the provisions of Subparagraph (v) below, Repo Custodian shall cause the Securities applicable to the repurchase transaction received from Seller to be transferred to the Participating Funds and shall cause any cash received from Seller to be transferred to the Transaction Account, against transfer of the Sale Price from the Transaction Account to the Seller Account, such transfers of Securities and/or cash and funds to be deemed to occur simultaneously. (v) Notwithstanding anything to the contrary, if, for any repurchase transaction, the amount of immediately available funds in the Transaction Account is less than the agreed upon Sale Price in connection with the repurchase transaction immediately prior to effectuating such repurchase transaction, or if the aggregate Market Value of the Securities and cash, if any, applicable to such repurchase transaction is less than the Sale Price multiplied by the Margin Percentage immediately prior to effectuating such repurchase transaction, Repo Custodian shall effect the repurchase transaction to the best of its ability by transferring Securities from Seller to the Participating Funds and/or cash from the Seller Account to the Transaction Account with an aggregate Market Value equal to the lesser of (x) the amount of immediately available funds in the Transaction Account multiplied by the Margin Percentage and (y) the aggregate Market Value of the Securities available for transfer from Seller to the Participating Funds and cash, if any, in the Seller Account, against the transfer of immediately available funds from the Transaction Account to the Seller Account in an amount equal to the aggregate Market Value of the Securities and/or cash to be transferred divided by the Margin Percentage; provided, however, that in either such event Repo Custodian shall have the right not to transfer to the Participating Funds such Securities and not to transfer such cash, if any, to the Transaction Account and not to transfer from the designated Transaction Account such funds as Repo Custodian determines, in its sole discretion, will not be the subject of a repurchase transaction. The actions of Repo Custodian pursuant to this subparagraph (e)(v) shall not affect the obligations and liabilities of the parties to each other pursuant to the Master Agreement with regard to such repurchase transaction. (f) In the event that on a Banking Day Seller desires to substitute Securities applicable to such repurchase transaction with Eligible Securities and/or Cash Collateral (to the extent provided in the Master Agreement), Repo Custodian shall perform such substitution in accordance with the following provisions: (i) Repo Custodian shall determine that all securities to be transferred to the Participating Funds are Eligible Securities. Any securities which are not eligible for repurchase transactions hereunder shall not be included in the calculations set forth below and shall not be transferred to the Participating Funds. (ii) Repo Custodian shall then calculate the aggregate Market Value of the Eligible Securities and/or Cash Collateral to be transferred. Repo Custodian shall not make any substitution if, at the time of substitution, the aggregate Market Value of all Securities and any Cash Collateral applicable to such repurchase transaction immediately after such substitution would be less than the Margin Percentage of the Repurchase Price (calculated as if the Repurchase Date were the date of substitution). (iii) Repo Custodian shall then deliver to the Seller, subject to the qualifications set forth above, the Securities to be substituted against the delivery by Repo Custodian of substitute Eligible Securities to the Participating Funds and/or the crediting of the Transaction Account with Cash Collateral. (iv) In the event Seller has caused Repo Custodian to credit the Transaction Account with Cash Collateral in lieu of substitute Eligible Securities, and has failed to deliver Eligible Securities against such Cash Collateral not later than the close of business on such Banking Day in accordance with the terms of the Master Agreement, Repo Custodian shall promptly, but in no event later than 10:00 a.m. the following Banking Day, notify the Participating Funds and Seller of such failure. (g) With respect to each repurchase transaction, at 9:00 a.m. New York time, or at such other time as specified in proper instructions of the Participating Funds (or the Custodian on behalf of the Participating Funds) on the Repurchase Date, Repo Custodian shall debit the Seller Account and credit the Transaction Account in the amount of the Repurchase Price and shall transfer Securities from the Participating Funds to the Seller and Cash Collateral, if any, from the Transaction Account to the Seller Account in accordance with the following provisions: (i) If the amount of available funds in the Seller Account equals or exceeds the Repurchase Price, Repo Custodian shall debit the Seller Account and credit the Transaction Account in the amount of the Repurchase Price and shall transfer all Securities applicable to such repurchase transaction from the Participating Funds to the Seller and debit the Transaction Account and credit the Seller Account in the amount of any Cash Collateral applicable to such repurchase transaction. (ii) If the amount of available funds in the Seller Account is less than the Repurchase Price, then Repo Custodian shall notify the Seller of the amount of the deficiency and Seller shall promptly cause such amount to be transferred to the Seller Account. If Seller fails to cause the transfer of the entire amount of the deficiency to the Seller Account, then Repo Custodian may, at its option and without notice to Seller, advance to Seller the amount of such remaining deficiency. It is expressly agreed that Repo Custodian is not obligated to make any advance to Seller. If, following such transfer and/or advance, the amount of available funds in the Seller Account equals or exceeds the Repurchase Price then Repo Custodian shall debit the Seller Account and credit the Transaction Account in the amount of the Repurchase Price and shall transfer from the Participating Funds to the Seller all Securities applicable to such repurchase transaction and debit the Transaction Account and credit the Seller Account in the amount of any Cash Collateral applicable to such repurchase transaction. (iii) If the Seller fails to cause the transfer of the entire amount of the deficiency, as required by (ii) above, and Repo Custodian fails to advance to Seller an amount sufficient to eliminate the entire deficiency, then Repo Custodian shall debit the Seller Account in the amount of all immediately available funds designated by Seller as applicable to the repurchase transaction and credit the Transaction Account in such amount (such amount being referred to as the "Partial Payment") and shall transfer Securities from the Participating Funds to the Seller such that the aggregate Market Value of all remaining Securities and Cash Collateral in the Transaction Account with respect to such repurchase transaction shall at least equal the difference between Margin Percentage of the Repurchase Price and the Partial Payment. 5. Payments on Securities. Repo Custodian shall credit to the Seller Account as soon as received, all principal, interest and other sums paid by or on behalf of the issuer in respect of the Securities and collected by Repo Custodian, except as otherwise provided in Paragraph 8 of the Master Agreement. 6. Daily Statement. On each Banking Day on which any Participating Funds have an outstanding repurchase transaction, Repo Custodian shall deliver by facsimile, or other electronic means acceptable to the Participating Funds, the Custodian and the Repo Custodian, to Custodian and to the Participating Funds a statement identifying the Securities held by Repo Custodian with respect to such repurchase transaction and the cash and Cash Collateral, if any, held by Repo Custodian in the Transaction Account, including a statement of the then current Market Value of such Securities and the amounts, if any, credited to the Transaction Account as of the close of trading on the previous Banking Day. Repo Custodian shall also deliver to Custodian and the Participating Funds such additional statements as the Repo Custodian and the Participating Funds may agree upon from time to time. 7. Valuation. (a) Repo Custodian shall confirm the Market Value of Securities and the amount of Cash Collateral, if any (i) on the Sale Date prior to transferring the Sale Price out of the Transaction Account to the Seller Account against the receipt from Seller of the Securities and Cash Collateral, if any, and (ii) on each Valuation Day on which such repurchase transaction is outstanding. If on any Valuation Day the aggregate Market Value of the Securities and Cash Collateral with respect to any repurchase transaction is less than the Margin Percentage of the Repurchase Price (calculated as if the Repurchase Date were such Valuation Day) for such transaction, Repo Custodian shall promptly, but in any case no later than 10:00 a.m. the following Valuation Day, notify Seller. If on any Valuation Day the aggregate market value of the Securities and Cash Collateral with respect to any repurchase transaction is less than the Margin Percentage of the Repurchase Price (calculated as if the Repurchase Date were such Valuation Day) for such transaction, and Seller fails to deliver additional Eligible Securities applicable to such repurchase transaction or an additional amount of Cash Collateral by the close of business on such Valuation Day such that the aggregate market value of the Securities and Cash Collateral at least equals the Margin Percentage of the Repurchase Price (calculated as if the Repurchase Date were such Valuation Day), Repo Custodian shall promptly, but in any event no later than 10:00 a.m. the following Valuation Day, notify the Participating Funds of such failure. (b) Repo Custodian shall determine the bid side portion of the Market Value of the Securities by reference to the independent pricing services ("Pricing Services") set forth on Schedule B. It is understood and agreed that Repo Custodian shall use the prices made available by the Pricing Services at the close of business of the preceding Valuation Day. In the event that Repo Custodian is unable to obtain a valuation of any Securities from the Pricing Services, Repo Custodian shall request a bid quotation from a broker's broker or a broker dealer, set forth in Schedule B, other than Seller. In the event Repo Custodian is unable to obtain a bid quotation for any Securities from such a broker's broker or a broker dealer, Repo Custodian (i) shall not include any such Securities in the determination of whether the aggregate Market Value of the Securities and any Cash Collateral equals at least the Margin Percentage of the Repurchase Price and (ii) shall redeliver such Securities to Seller if the Market Value of all other Securities and any Cash Collateral with respect to such repurchase transaction equals at least the Margin Percentage of the Repurchase Price (calculated as if the Repurchase Date were such Valuation Day). The Repo Custodian may rely on prices quoted by Pricing Services, broker's brokers or broker dealers, except Seller, as set forth in Schedule B. (c) (i) If, on any Valuation Day, the aggregate Market Value of the Securities and any Cash Collateral with respect to a repurchase transaction is less than the Margin Percentage of the Repurchase Price (calculated as if the Repurchase Date were such Valuation Day) applicable to such repurchase transaction, Repo Custodian shall deliver to the Participating Funds an amount of additional Eligible Securities applicable to such repurchase transaction and/or debit the Seller Account and credit the Transaction Account with an additional amount of Cash Collateral, such that the aggregate Market Value of all Securities and any Cash Collateral with respect to such repurchase transaction shall equal at least the Margin Percentage of the Repurchase Price (calculated as if the Repurchase Date were such Valuation Day) applicable to such repurchase transaction. (ii) If, on any Valuation Day, the aggregate Market Value of the Securities and any Cash Collateral with respect to a repurchase transaction exceeds the Margin Percentage of the Repurchase Price (calculated as if the Repurchase Date were such Valuation Day) applicable to such repurchase transaction, Repo Custodian shall return to the Seller all or a portion of such Securities or Cash Collateral, if any; provided that the Market Value of the remaining Securities and any Cash Collateral with respect to the repurchase transaction shall be at least equal to the Margin Percentage of the Repurchase Price (calculated as if the Repurchase Date were such Valuation Day) applicable to such repurchase transaction. At any time and from time to time with respect to any repurchase transaction, if authorized by the Participating Funds, or the Custodian on behalf of the Participating Funds, the Repo Custodian shall debit the Transaction Account by an amount of Cash Collateral and credit the Seller Account by the same amount of Cash Collateral against simultaneous delivery from Seller to the Participating Funds of Eligible Securities applicable to such repurchase transaction with a Market Value at least equal to the amount of Cash Collateral credited and debited. 8. Authorized Persons. Schedule C hereto sets forth those persons who are authorized to act for Repo Custodian, Custodian, Seller and the Funds, respectively, under this Agreement. 9. Proper Instructions. Proper instructions shall mean a tested telex, facsimile, a written request, direction, instruction or certification signed or initialed by or on behalf of the party giving the instructions by one or more authorized persons (as provided in Paragraph 8); provided, however, that no instructions directing the delivery of Securities or the payment of funds to any individual who is an authorized signatory of Custodian or Repo Custodian shall be signed by that individual. Telephonic, other oral or electro-mechanical or electronic instructions (including the code which may be assigned by Repo Custodian to Custodian from time to time) given by one of the above authorized persons shall also be considered proper instructions if the party receiving such instructions reasonably believes them to have been given by an authorized person with respect to the transaction involved. Oral instructions will be confirmed by tested telex, facsimile or in writing in the manner set forth above. The Funds and Seller authorize Repo Custodian to tape record any and all telephonic or other oral instructions given to Repo Custodian. Proper instructions may relate to specific transactions or to types or classes of transactions, and may be in the form of standing instructions. 10. Standard of Care. (a) Repo Custodian shall be obligated to use reasonable care and diligence in carrying out the provisions of this Agreement and the Master Agreement and shall be liable to the Funds and/or Seller only for direct damages resulting from the negligence or willful misconduct of the Repo Custodian or its officers, employees or agents. The parties hereby agree that Repo Custodian shall not be liable for consequential, special or indirect damages, even if Repo Custodians has been advised as to the possibility thereof. So long as and to the extent that Repo Custodian exercises reasonable care and diligence and acts without negligence, misfeasance or misconduct, Repo Custodian shall not be liable to Seller or the Funds for (i) any action taken or omitted in good faith in reliance upon proper instructions, (ii) any action taken or omitted in good faith upon any notice, request, certificate or other instrument reasonably believed by it to be genuine and to be signed by the proper party or parties, (iii) any delay or failure to act as may be required under this Agreement or under the Master Agreement when such delay or failure is due to any act of God or war, (iv) the actions or omissions of a Securities System, (v) the title, validity or genuineness of any security received, delivered or held by it pursuant to this Agreement or the Master Agreement, (vi) the legality of the purchase or sale of any Securities by or to the Participating Funds or Seller or the propriety of the amount for which the same are purchased or sold (except to the extent of Repo Custodian's obligations hereunder to determine whether securities are Eligible Securities and to calculate the Market Value of Securities and any Cash Collateral), (vii) the due authority of any person listed on Schedule C to act on behalf of Custodian, Seller or the Funds, as the case may be, with respect to this Agreement or (viii) the errors of the Pricing Services, broker's brokers or broker dealers set forth in Schedule B. (b) Repo Custodian shall not be liable to Seller or the Funds for, or considered to be the custodian of, any Eligible Securities or any money to be used in a repurchase transaction, whether or not such money is represented by any check, draft, or other instrument for the payment of money, until the Eligible Securities have been delivered in accordance with Paragraph 3 or until Repo Custodian actually receives and collects such money on behalf of Seller or the Funds directly or by the final crediting of the Seller Account or a Transaction Account through the Securities System, except that this Paragraph 10(b) shall not be deemed to limit the liability of Repo Custodian to Seller or the Funds if the non-delivery of such Eligible Securities or the failure to receive and collect such money results from the breach by Repo Custodian of its obligations under this Agreement or the Master Agreement. (c) Repo Custodian shall not be under any duty or obligation to ascertain whether any Securities at any time delivered to or held by it are such as properly may be held by the Participating Funds; provided that notwithstanding anything to the contrary herein, Repo Custodian shall be obligated to act in accordance with the guidelines and proper instructions of the Participating Funds, or the Custodian on behalf of the Participating Funds, with respect to the types of Eligible Securities and the issuers of such Eligible Securities that may be used in specific repurchase transactions. (d) Repo Custodian promptly shall notify the Fund Agent and the Custodian if Securities held by Repo Custodian are in default or if payment on any Securities has been refused after due demand and presentation and Repo Custodian shall take action to effect collection of any such amounts upon the proper instructions of the Participating Funds, or the Custodian on behalf of the Participating Funds, and assurances satisfactory to it that it will be reimbursed for its costs and expenses in connection with any such action. (e) Repo Custodian shall have no duties, other than such duties as are necessary to effectuate repurchase transactions in accordance with this Agreement and the Master Agreement within the standard of care set forth in Paragraph 10(a) above and in a commercially reasonable manner. 11. Representations and Additional Covenants of Repo Custodian. (a) Repo Custodian represents and warrants that (i) it is duly authorized to execute and deliver this Agreement and to perform its obligations hereunder and has taken all necessary action to authorize such execution, delivery and performance, (ii) the execution, delivery and performance of this Agreement do not and will not violate any ordinance, declaration of trust, partnership agreement, articles of incorporation, charter, rule or statute applicable to it or any agreement by which it is bound or by which any of its assets are affected, (iii) the person executing this Agreement on its behalf is duly and properly authorized to do so, (iv) it has (and will maintain) a copy of this Agreement and evidence of its authorization in its official books and records, and (v) this Agreement has been executed by one of its duly authorized officers at the level of Vice President or higher. (b) Repo Custodian further represents and warrants that (i) it has not pledged, encumbered, hypothecated, transferred, disposed of, or otherwise granted, any third party an interest in any Securities, (ii) it does not have any security interest, lien or right of setoff in the Securities, and (iii) it has not received notification from any third party, in its capacity as Repo Custodian, custodian bank or clearing bank, of any lien, claim, charge or encumbrance with respect to any Securities that are the subject of such repurchase transaction. Repo Custodian agrees that (i) it will not pledge, encumber, hypothecate, transfer, dispose of, or otherwise grant, any third party an interest in any Securities, (ii) it will not acquire any security interest, lien or right of setoff in the Securities, and (iii) it will promptly notify the Fund Agent, if, during the term of any outstanding repurchase transaction, it is notified by any third party, in its capacity as Repo Custodian, custodian bank or clearing bank, of the Participating Funds or Seller, of the existence of any lien, claim, charge or encumbrance with respect to any Securities that are the subject of such repurchase transaction. 12. Indemnification. (a) Notwithstanding the Participating Fund's obligation to the Repo Custodian under Paragraph 12(b) below, so long as and to the extent that Repo Custodian is in the exercise of reasonable care and diligence and acts without negligence, misfeasance or misconduct, Seller will indemnify Repo Custodian and hold it harmless against any and all losses, claims, damages, liabilities or actions to which it may become subject, and reimburse it for any expenses (including attorneys' fees and expenses) incurred by it in connection therewith, insofar as such losses, claims, damages, liabilities or actions arise out of or are based upon or in any way related to this Agreement, the Master Agreement or any transactions contemplated hereby or thereby or effected hereunder or thereunder. Without limiting the generality of the foregoing indemnification, Repo Custodian shall be indemnified by Seller for all costs and expenses, including attorneys' fees, for its successful defense against claims that Repo Custodian breached its standard of care and was negligent or engaged in misfeasance or misconduct. (b) So long as and to the extent that Repo Custodian is in the exercise of reasonable care and diligence and acts without negligence, misconduct or misfeasance, the Participating Funds will indemnify Repo Custodian and hold it harmless against any and all losses, claims, damages, liabilities or actions to which it may become subject, and reimburse it for any expenses (including attorneys' fees and expenses) incurred by it in connection therewith, insofar as such losses, claims, damages, liabilities or actions result from the negligence, misconduct or misfeasance of the Participating Funds under this Agreement. 13. Rights and Remedies. The rights and remedies conferred upon the parties hereto shall be cumulative, and the exercise or waiver of any thereof shall not preclude or inhibit the exercise of any additional rights and remedies. 14. Modification or Amendment. Except as otherwise provided in this Paragraph 14, no modification, waiver or amendment of this Agreement shall be binding unless in writing and executed by the parties hereto. Schedule A, listing the Funds, may be amended from time to time to add or delete Funds by the Funds (i) delivering an executed copy of an addendum to Schedule A to Seller and Repo Custodian, and (ii) amending Schedule A to the Master Agreement in accordance with the provisions therein. The amendment of Schedule A as provided above shall constitute appointment of Repo Custodian as a custodian for such Fund. Schedule B may be amended from time to time by an instrument in writing, or counterpart thereof, executed by Repo Custodian, Seller and the Funds. Schedule C may be amended from time to time to change an authorized person of: (i) the Funds, by written notice to Repo Custodian and Seller by Ms. Sarah Zenoble or the Treasurer of the Funds (or such persons who may be authorized from time to time in writing by Ms. Zenoble or the President or Treasurer of Fidelity Management and Research Company to trade on behalf of Fidelity's taxable money market funds); (ii) Seller, by written notice to Repo Custodian and the Funds by any Vice President of Seller; (iii) Repo Custodian, by written notice to Seller, Custodian and the Funds by any Vice President of Repo Custodian; and (iv) Custodian, by written notice to Repo Custodian by any Vice President of Custodian. Schedule D may be amended from time to time by any party hereto by delivery of written notice to the other parties hereto. Repo Custodian shall receive notice of any amendment to the Master Agreement at the address set forth in Schedule D hereto; and, if such amendment would have a material adverse effect on the rights of, or would materially increase the obligations of Repo Custodian under this Agreement, any such amendment shall also require the consent of Repo Custodian. Any such amendment shall be deemed not to be material if Repo Custodian fails to object in writing within 21 days after receipt of notice thereof. No amendment to this Agreement shall affect the rights or obligations of any Fund with respect to any outstanding repurchase transaction entered into under this Agreement and the Master Agreement prior to such amendment or with respect to any actions or omissions by any party hereto prior to such amendment. In the event of conflict between this Agreement and the Master Agreement, the Master Agreement shall control. 15. Termination. This Agreement shall terminate forthwith upon termination of the Master Agreement or may be terminated by any party hereto on ten Valuation Days' written notice to the other parties; provided, however, that any such termination shall not affect any repurchase transaction then outstanding or any rights or obligations under this Agreement or the Master Agreement with respect to any actions or omissions of any party hereto prior to termination. In the event of termination, Repo Custodian will deliver any Securities, Cash Collateral or cash held by it or any agent to Custodian or to such successor custodian or custodian or subcustodian as the Participating Funds shall instruct. 16. Compensation. Seller agrees to pay Repo Custodian compensation for the services to be rendered hereunder, based upon rates which shall be agreed upon from time to time. 17. Notices. Except with respect to communications between Custodian and the Funds which shall be governed by the custodian agreement or subcustodian agreement between such parties, as the case may be, and except as otherwise provided herein or as the parties to the Agreement shall from time to time otherwise agree, all instructions, notices, reports and other communications contemplated by this Agreement shall be given to the party entitled to receive such notice at the telephone number and address listed on Schedule D hereto. 18. Severability. If any provision of this Agreement is held to be unenforceable as a matter of law, the other terms and provisions hereof shall not be affected thereby and shall remain in full force and effect. 19. Binding Nature. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their successors and assignees; provided that, no party hereto may assign this Agreement or any of the rights or obligations hereunder without the prior written consent of the other parties. 20. Headings. Section headings are for reference purposes only and shall not be construed as a part of this Agreement. 21. Counterparts. This Agreement may be executed in one or more counterparts, all of which taken together shall constitute one instrument. 22. Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO THE CONFLICT OF LAW PRINCIPLES THEREOF. 23. Limitation of Liability. Repo Custodian and Seller are hereby expressly put on notice of the limitation of liability set forth in the Declarations of Trust and in the Certificates and Agreements of Limited Partnership of the Funds and agree that the obligations assumed by any Fund hereunder shall be limited in all cases to a Fund and its assets or, in the case of a series Fund, to the assets of that series only, and neither Seller, Repo Custodian nor their respective agents or assigns shall seek satisfaction of any such obligation from the officers, agents, employees, directors, trustees, shareholders or partners of any such Fund or series. 24. Rights and Obligations of Each Fund. The rights and obligations set forth in this Agreement with respect to each repurchase transaction shall accrue only to the Participating Funds in accordance with their respective interests therein. No other Fund shall receive any rights or have any liabilities arising from any action or inaction of any Participating Fund under this Agreement with respect to such repurchase transaction. 25. General Provisions. This Agreement supersedes any other custodian agreement by and among Seller, the Funds, and Repo Custodian concerning repurchase transactions effected through the Joint Trading Account. It is understood and agreed that time is of the essence with respect to the performance of each party's respective obligations hereunder. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the day and year first above written. [Signature Lines Omitted] SCHEDULE B PRICING SOURCES PRICING SERVICES U.S. Government Securities Interactive Data Services or Mellon Data Services (or any other pricing service mutually agreed upon by Seller and the Funds) GNMA - The Bond Buyer FHLMC - The Bond Buyer All other U.S. Government and Agency Securities Interactive Data Services or Mellon Data Services (or any other pricing service mutually agreed upon by Seller and the Funds) BROKERS' BROKERS AND BROKER DEALERS U.S. Government Securities - Any Primary Dealer GNMA - Any Primary Broker-Dealer's bid rate for such security FHLMC - Any Primary Broker-Dealer's bid rate for such security All other U.S. Government and Agency Securities - Any Primary Broker-Dealer's bid rate for such security Prices shall be as of the business day immediately preceding the date of determination or the last quote available. The pricing services, Brokers' Brokers and Broker Dealers may be changed from time to time by agreement of all the parties. SCHEDULE C AUTHORIZED PERSONS Repo Custodian Anthony Isola Raymond Stancil William Mosca Leonardo Nichols Alan Mann Allen B. Clark Custodian Ken Rindos Kurt Woetzel Seller Gary F. Holloway Konrad R. Kruger Stephen M. Peet Raymond E. Humiston P. Michael Florio Ben Carpenter Blake S. Drexler Derick B. Burgher Lyn Kratovil The Funds Leland Barron Wickliffe Curtis Dorothy Egan David Glocke Katharyn Harlow Timothy Huyck Jon Jamen Robert Litterst Sam Silver Burnell Stehman Jeffrey St. Peters Deborah Todd John Todd Joseph Torres Richard Williams SCHEDULE D NOTICES If to Custodian: Morgan Guaranty Trust Co. of New York 15 Broad Street, 16th Floor New York, New York 10015 Telephone: (212) 483-4150 Attention: Ms. Kimberly Smith or The Bank of New York One Wall Street, 4th Floor New York, NY 10286 Telephone: (312) 635-4808 Attention: Claire Meskovic With a copy to the Fund Agent If to Repo Custodian: Chemical Bank 4 New York Plaza 21st Floor New York, NY 10004-2477 Telephone: (212) 623-6446 Attention: Anthony Isola If to Seller: Greenwich Capital Markets, Inc. 600 Steamboat Road Greenwich, Connecticut 06830 Telephone: (203) 625-7909 Attention: Peter Sanchez If to any of the Funds: FMR Texas Inc. 400 East Las Colinas Blvd., CP9M Irving, Texas 75039 Telephone: (214) 584-7800 Attention: Ms. Deborah R. Todd or Mr. Samuel Silver If to the Fund Agent: Fidelity Investments [Name of Fund] 400 East Las Colinas Blvd., CP9E Irving, Texas 75039 Telephone: (214) 584-4071 Attention: Mr. Mark Mufler 277262.c1 Exhibit 8(n) FORM OF SCHEDULE 1 The following lists the additional counterparties to the Repo Custodian Agreement for Joint Trading Account between Chemical Bank and the Fidelity Funds: Chase Securities, Inc. CS First Boston Corp. Dresdner Securities (U.S.A.), Inc. HSBC Securities, Inc. Lehman Government Securities, Inc. Merrill Lynch Government Securities, Inc. Paine Webber, Inc. Salomon Brothers, Inc. UBS Securities, Inc. EX-99.B8 10 Exhibit 8(o) Form of JOINT TRADING ACCOUNT CUSTODY AGREEMENT Between THE BANK OF NEW YORK and FIDELITY FUNDS Dated as of: _________ Exhibit 8(o) TABLE OF CONTENTS Page ARTICLE I - APPOINTMENT OF CUSTODIAN 2 ARTICLE II - POWERS AND DUTIES OF CUSTODIAN 2 Section 2.01. Establishment of Accounts 2 Section 2.02. Receipt of Funds 2 Section 2.03. Repurchase Transactions 2 Section 2.04. Other Transfers 4 Section 2.05. Custodian's Books and Records 5 Section 2.06. Reports by Independent Certified Public Accountants 5 Section 2.07. Securities System 6 Section 2.08. Collections 6 Section 2.09. Notices, Consents, Etc. 6 Section 2.10. Notice of Custodian's Inability to Perform 7 ARTICLE III - PROPER INSTRUCTIONS AND RELATED MATTERS 7 Section 3.01. Proper Instructions; Special Instruction 7 Section 3.02. Authorized Persons 8 Section 3.03. Investment Limitations 8 Section 3.04. Persons Having Access to Assets of the Funds 8 Section 3.05. Actions of Custodian Based on Proper Instructions and Special Instructions 9 ARTICLE IV - STANDARD OF CARE; INDEMNIFICATION 9 Section 4.02. Liability of Custodian for Actions of Securities Systems 9 Section 4.03. Indemnification 9 Section 4.04. Funds, Right to Proceed 10 ARTICLE V - COMPENSATION 11 Section 5.01. Compensation 11 Section 5.02. Waiver of Right of Set-Off 11 ARTICLE VI - TERMINATION 11 Section 6.01. Events of Termination 11 Section 6.02. Successor Custodian; Payment of Compensation 11 ARTICLE VII - MISCELLANEOUS 12 Section 7.01. Representative Capacity and Binding Obligation 12 Section 7.02. Entire Agreement 12 Section 7.03. Amendments 12 Section 7.04. Interpretation 12 Section 7.05. Captions 13 Section 7.06. Governing Law 13 Section 7.07. Notice and Confirmations 13 Section 7.08. Assignment 14 Section 7.09. Counterparts 14 Section 7.10. Confidentiality; Survival of Obligations 14 Exhibit 8(o) Form of JOINT TRADING ACCOUNT CUSTODY AGREEMENT AGREEMENT dated as of ___________ by and between The Bank of New York (hereinafter referred to as the "Custodian") and each of the entities listed on Schedules A-1, A-2, A-3 and A-4 hereto, acting on behalf of itself or, (i) in the case of a series company, on behalf of one or more of its portfolios or series listed on Schedule A-1 or A-2 hereto, (ii) in the case of the accounts listed on Schedule A-3 hereto, acting through Fidelity Management & Research Company, and (iii) in the case of the commingled or individual accounts listed on Schedule A-4 hereto, acting through Fidelity Management Trust Company (collectively, the "Funds" and each, a "Fund"). W I T N E S S E T H WHEREAS, each of the Funds desire to appoint the Custodian as its custodian for the purpose of establishing and administering one or more joint trading accounts or subaccounts thereof (individually, an "Account" and collectively, the "Accounts") and holding cash and securities for the Funds in connection with repurchase transactions effected through the Accounts; and WHEREAS, one or more of the Funds may, from time to time, enter into one or more written repurchase agreements pursuant to which one or more of the Funds agrees to purchase and resell, and the sellers named in such agreements agree to sell and repurchase through the Accounts, certain securities (collectively, the "Securities") (such repurchase agreements being hereinafter referred to, collectively, as the "Repurchase Agreements"); and WHEREAS, each of the custodians identified in ScheduleB hereto (each, a "Fund Custodian") serves as the primary custodian for one or more of the Funds; and WHEREAS, from time to time one or more of the Funds may arrange to transfer cash or Securities from one or more Fund Custodians to the Custodian or transfer cash or Securities from the Custodian to one or more Fund Custodians, or in the case of Funds in which Custodian is also Fund Custodian, such Fund may arrange for transfer of cash or Securities between an Account and an account maintained by Custodian in its capacity as Fund Custodian for such Fund, in each event in connection with Repurchase Agreement transactions; and WHEREAS, from time to time, such Funds may arrange to transfer cash or securities from the Custodian to the seller in such Repurchase Agreement transactions, or in the case in which Custodian is also the clearing bank for such seller, such Funds may arrange for transfer of cash or securities between an Account and an account maintained by Custodian for such seller in its capacity as clearing bank, in each event in connection with two-party Repurchase Agreement transactions; and WHEREAS, each of the custodians identified in Schedule C hereto (each, a "Repo Custodian") serves as a third-party custodian of the Funds for purposes of effecting third-party Repurchase Agreement transactions; and WHEREAS, from time to time one or more of the Funds may arrange to transfer cash or Securities from the Custodian to one or more Repo Custodians or transfer cash or Securities from one or more Repo Custodians to the Custodian, or in the case in which Custodian is also Repo Custodian, such Funds may arrange for transfer of cash or securities between an Account and an account maintained for such Funds in its capacity as Repo Custodian, in each event in connection with third-party Repurchase Agreement transactions; NOW, THEREFORE, the parties hereto hereby agree as follows: ARTICLE I - APPOINTMENT OF CUSTODIAN Each of the Funds hereby employs and appoints the Custodian as its custodian, subject to the terms and provisions of this Agreement. ARTICLE II - POWERS AND DUTIES OF CUSTODIAN As custodian, the Custodian shall have and perform the powers and duties, and only such powers and duties, as are set forth in this Agreement. Section 2.01. Establishment of Accounts. The Custodian shall establish one or more Accounts as segregated joint trading accounts for the Funds through which the Funds shall, from time to time, effect Repurchase Agreement transactions. Section 2.02. Receipt of Funds. The Custodian shall, from time to time, receive funds for or on behalf of the Funds and shall hold such funds in safekeeping. Upon receipt of Proper Instructions, the Custodian shall credit funds so received to one or more Accounts designated in such Proper Instructions. Promptly after receipt of such funds from the Fund Custodian or a Repo Custodian or promptly following the transfer to an Account from any account maintained by Custodian in its capacity as Fund Custodian, or as Repo Custodian, the Custodian shall provide written confirmation of such receipt to the Fund Custodian or Repo Custodian, when and as applicable, and of such receipt or transfer to the Fund Agent designated in Section 7.07(b) hereof (the "Fund Agent"). The Custodian shall designate on its books and records the funds allocable to each Account and the identity of each Fund participating in such Account. Section 2.03. Repurchase Transactions. The Funds may, from time to time, enter into Repurchase Agreement transactions. In connection with each such Repurchase Agreement transaction, unless otherwise specifically directed by Special Instructions, the Custodian shall take the following actions: (a) Purchase of Securities. Upon receipt of Proper Instructions, the Custodian shall pay for and receive Securities and any cash denominated in U.S. Dollars which is serving as collateral ("Cash Collateral"), provided that payment therefor shall be made by the Custodian only against prior or simultaneous receipt of the Securities and any Cash Collateral in the manner prescribed in subsection 2.03(b) below. Except as provided in Section2.04 hereof, in no event shall the Custodian deliver funds from an Account for the purchase of Securities and any Cash Collateral prior to receipt of the Securities and any Cash Collateral by the Custodian or a Securities System (as hereinafter defined). The Custodian is not under any obligation to make credit available to the Funds to complete transactions hereunder. Promptly after the transfer of funds and receipt of Securities and any Cash Collateral, the Custodian shall provide a confirmation to the Fund Agent, setting forth (i) the Securities and any Cash Collateral which the Custodian has received pursuant to the Repurchase Agreement transaction, (ii) the amount of funds transferred from the applicable Account, and (iii) any security or transaction identification numbers reasonably requested by the Fund Agent. (b) Receipt and Holding of Securities. In connection with each Repurchase Agreement transaction, the Custodian shall receive and hold the Securities as follows: (i) in the case of certificated securities, by physical receipt of the certificates or other instruments representing such Securities and by physical segregation of such certificates or instruments from other assets of the Custodian in a manner indicating that such Securities belong to specified Funds; and (ii) in the case of Securities held in book-entry form by a Securities System (as hereinafter defined), by appropriate transfer and registration of such Securities to a customer only account of the Custodian on the book-entry records of the Securities System, and by appropriate entry on the books and records of the Custodian identifying such Securities as belonging to specified Funds. (c) Sale of Securities. Upon receipt of Proper Instructions, the Custodian shall make delivery of Securities and any Cash Collateral held in or credited to an Account against prior or simultaneous payment for such Securities in immediately available funds in the form of: (i) cash, bank credit, or bank wire transfer received by the Custodian; or (ii) credit to the customer only account of the Custodian with a Securities System. Notwithstanding the foregoing, the Custodian shall make delivery of Securities held in physical form in accordance with "street delivery custom" to a broker or its clearing agent, against delivery to the Custodian of a receipt for such Securities; provided that the Custodian shall have taken all actions possible to ensure prompt collection of the payment for, or the return of such Securities by the broker or its clearing agent. Promptly after the transfer of Securities and any Cash Collateral and the receipt of funds, the Custodian shall provide a confirmation to the Fund Agent, setting forth the amount of funds received by the Custodian or a Securities System for credit to the applicable Account. (d) Additional Functions. Upon receipt of Proper Instructions, the Custodian shall take all such other actions as specified in such Proper Instructions and as shall be reasonable or necessary with respect to Repurchase Agreement transactions and the Securities and funds transferred and received pursuant to such transactions, including, without limitation, all such actions as shall be prescribed in the event of a default under a Repurchase Agreement. (e) Nondiscretionary Functions. The Custodian shall attend to all non-discretionary details in connection with the purchase, sale, transfer or other dealings with Securities or other assets of the Funds held by the Custodian. (f) In the event that the Custodian is directed by Proper Instructions to make any payment or transfer of funds on behalf of a Fund for which there would be, at the close of business on the date of such payment or transfer, insufficient funds held by the Custodian on behalf of such Fund, the Custodian may, in its discretion, provide an overdraft ("Overdraft") to the Fund, in an amount sufficient to allow the completion of such payment or transfer. Any Overdraft provided hereunder: (a) shall be payable on the next Business Day, unless otherwise agreed by the Fund and the Custodian; and (b) shall accrue interest form the date of the Overdraft to the date of payment in full by the Fund at a rate agreed upon in writing, from time to time, by the Custodian and the Fund. The Custodian and the Funds acknowledge that the purpose of such Overdrafts is to temporarily finance the purchase or sale of securities for prompt delivery in accordance with the terms hereof, or to meet emergency expenses not reasonably foreseeable by a particular Fund. The Funds hereby agree that the Custodian shall have a continuing lien and security interest in and to all Securities whose purchase is financed by Custodian and which are in Custodian's possession or in the possession or control of any third party acting on Custodian's behalf and the proceeds thereof. In this regard, Custodian shall be entitled to all the rights and remedies of a pledgee under common law and a secured party under the New York Uniform Commercial Code and any other applicable laws or regulations as then in effect. Section 2.04. Other Transfers. (a) In addition to transfers of funds and Securities referred to in Section 2.03, the Custodian shall transfer funds and Securities held in an Account: (a) upon receipt of Proper Instructions, to (i)any Fund Custodian, or (ii)any other account maintained for any Fund by the Custodian in its capacity as a Fund Custodian, (iii)any Repo Custodian or (iv) any other account maintained for any Fund by the Custodian in its capacity as a Repo Custodian; or (b) upon receipt of Special Instructions, and subject to Section 3.04 hereof, to any other person or entity designated in such Special Instructions. (b) Determination of Fund Custodian Daily Net Amount. On each banking day, based upon daily transaction information provided to the Custodian by the Funds, Custodian shall determine: (i) the amount of cash due to be transferred on such day by each Fund Custodian to the Custodian in connection with all Repurchase Agreement transactions in which the date fixed for the repurchase and resale of Securities is the banking day next following the date on which the sale and purchase of such Securities takes place (each, an "Overnight Repo Transaction") to be effected through the Accounts in such day; and (ii) the amount of cash due to be transferred on such day by Custodian to such Fund Custodian in connection with all outstanding Overnight Repo Transactions previously effected through the Accounts (the difference between (i) and (ii) with respect to each Fund Custodian being referred to as the "Fund Custodian Daily Net Amount"). On each banking day, Custodian shall notify each Fund Custodian of the foregoing determination and, unless otherwise directed in accordance with Proper Instructions, Custodian shall (i) instruct such Fund Custodian to transfer cash to the Custodian equal to the Fund Custodian Daily Net Amount (if the Fund Custodian Daily Net Amount is positive) or (ii) transfer to such Fund Custodian cash equal to the Fund Custodian Daily Net Amount (if the Fund Custodian Daily Net Amount is negative). (c) Determination of Repo Custodian Daily Net Amount. On each banking day, based upon daily transaction information provided to the Custodian by the Funds and each Repo Custodian, Custodian shall determine: (i) the amount of cash due to be transferred on such day by each Repo Custodian on behalf of the Funds to all counterparties in connection with all third-party Overnight Repo Transactions to be effected through the Accounts on such day; and (ii) the amount of cash due to be transferred on such day by each Repo Custodian on behalf of all counterparties to the Funds in connection with all outstanding third-party Overnight Repo Transactions previously effected through the Accounts (the difference between (i) and (ii) with respect to each Repo Custodian being referred to as the "Repo Custodian Daily Net Amount"). On each banking day, Custodian shall notify the Funds of the foregoing determinations and, unless otherwise directed in accordance with Proper Instructions, Custodian shall (i) transfer to each Repo Custodian cash equal to the Repo Custodian Daily Net Amount (if the Repo Custodian Daily Net Amount is positive) or (ii) instruct each Repo Custodian to transfer to the Custodian cash equal to the Repo Custodian Daily Net Amount (if the Repo Custodian Daily Net Amount is negative). Section 2.05. Custodian's Books and Records. The Custodian shall provide any assistance reasonably requested by the Funds in the preparation of reports to shareholders of the Funds and others, audits of accounts, and other ministerial matters of like nature. The Custodian shall maintain complete and accurate records with respect to cash and Securities held for the benefit of the Funds as required by the rules and regulations of the Securities and Exchange Commission applicable to investment companies registered under the Investment Company Act of 1940, as amended (the "Investment Company Act"), including: (a) journals or other records of original entry containing a detailed and itemized daily record of all receipts and deliveries of securities (including certificate and transaction identification numbers, if any), and all receipts and disbursements of cash; (b) ledgers or other records reflecting Securities in transfer, and Securities in physical possession; and (c) cancelled checks and bank records related thereto. The Custodian shall keep such other books and records of the Funds relating to repurchase transactions effected through the Accounts as the Funds shall reasonably request. Such books and records maintained by the Custodian shall reflect at all times the identity of each Fund participating in each Account and the aggregate amount of the Securities and any Cash Collateral held by the Custodian on behalf of the Funds in such Account pursuant to this Agreement. All such books and records maintained by the Custodian shall be maintained in a form acceptable to the Funds and in compliance with the rules and regulations of the Securities and Exchange Commission, including, but not limited to, books and records required to be maintained by Section 31(a) of the Investment Company Act and the rules from time to time adopted thereunder. All books and records maintained by the Custodian relating to the Accounts shall at all times be the property of the Funds and shall be available during normal business hours for inspection and use by the Funds and their agents, including, without limitation, their independent certified public accountants. Notwithstanding the preceding sentence, the Funds shall not take any actions or cause Custodian to take any actions which would cause, either directly or indirectly, the Custodian to violate any applicable laws, regulations, rules or orders. Section 2.06. Reports by Independent Certified Public Accountants. At the request of the Funds, the Custodian shall deliver to the Funds such annual reports and other interim reports prepared by the independent certified public accountants of the Custodian with respect to the services provided by the Custodian under this Agreement, including, without limitation, the Custodian's accounting system, internal accounting control and procedures for safeguarding Securities, including Securities deposited and/or maintained in a Securities System. Such reports, which shall be of sufficient scope and in sufficient detail as may reasonably be required by the Funds and as may reasonably by obtained by the Custodian, shall provide reasonable assurance to the Funds that the procedures employed by the independent certified public accountants are reasonably designed to detect any material inadequacies with respect to the matters discussed in the report, shall state in detail the material inadequacies disclosed by such examination, and, if no such inadequacies exist, shall so state. Section 2.07. Securities System. As used herein the term "Securities System" shall mean each of the following: (a) the Depository Trust Company; (b) the Participants Trust Company; (c) any book-entry system as provided in (i) Subpart0 of Treasury Circular No. 300, 31CFR 306.115, (ii) SubpartB of Treasury Circular Public Debt Series No. 27-76, 31CFR 350.2, or (iii) the book-entry regulations of federal agencies substantially in the form of 31CFR 306.115; or (d) any domestic clearing agency registered with the Securities and Exchange Commission under Section17A of the Securities Exchange Act of 1934, as amended (or as may otherwise be authorized by the Securities and Exchange Commission to serve in the capacity of depository or clearing agent for the securities or other assets of investment companies) which acts as a securities depository and the use of which has been approved in Special Instructions. Use of a Securities System by the Custodian shall be in accordance with applicable Federal Reserve Board and Securities and Exchange Commission rules and regulations, if any, and subject to the following provisions: (A) The Custodian may deposit and/or maintain Securities held hereunder in a Securities System, provided that such Securities are represented in an account of the Custodian in the Securities System which account shall not contain any assets of the Custodian other than assets held as a fiduciary, custodian, or otherwise for customers. (B) The Custodian shall, if requested by the Funds, provide the Funds with all reports obtained by the Custodian with respect to the Securities System's accounting system, internal accounting control and procedures for safeguarding securities deposited in the Securities System. (C) Upon receipt of Special Instructions, the Custodian shall terminate the use hereunder of any Securities System (except for the federal book-entry system) as promptly as practicable and shall take all actions reasonably practicable to safeguard the Securities and other assets of the Funds maintained with such Securities System. Section 2.08. Collections. The Custodian shall (a) collect, receive and deposit in the applicable Account all income and other payments with respect to Securities held by the Custodian hereunder; (b) endorse and deliver any instruments required to effect such collection; and (c) execute ownership and other certificates and affidavits for all federal, state and foreign tax purposes in connection with receipt of income or other payments with respect to Securities, or in connection with the transfer of Securities. Section 2.09. Notices, Consents, Etc. The Custodian shall deliver to the Funds, in the most expeditious manner practicable, all notices, consents or announcements affecting or relating to Securities held by the Custodian on behalf of the Funds that are received by the Custodian, and, upon receipt of Proper Instructions, the Custodian shall execute and deliver such consents or other authorizations as may be required. Section 2.10. Notice of Custodian's Inability to Perform. The Custodian shall promptly notify the Funds in writing by facsimile transmission or such other manner as the Funds may designate, if, for any reason: (a) the Custodian determines that it is unable to perform any of its duties or obligations hereunder or its duties or obligations with respect to any repurchase transaction; or (b) the Custodian reasonably foresees that it will be unable to perform any such duties or obligations. ARTICLE III - PROPER INSTRUCTIONS AND RELATED MATTERS Section 3.01. Proper Instructions; Special Instruction. (a) Proper Instructions. As used herein, the term "Proper Instructions" shall mean: (i) a tested telex, a written (including, without limitation, facsimile transmission) request, direction, instruction or certification signed or initialed by one or more Authorized Persons (as hereinafter defined); (ii) a telephonic or other oral communication by one or more Authorized Persons; or (iii) a communication effected directly between electromechanical or electronic devices or systems (including, without limitation, computers) by one or more Authorized Persons; provided, however, that communications of the types described in clauses (ii) and (iii) above purporting to be given by an Authorized Person shall be considered Proper Instructions only if the Custodian reasonably believes such communications to have been given by an Authorized Person with respect to the transaction involved. Proper Instructions in the form of oral communications shall be confirmed by the Funds by tested telex or in writing in the manner set forth in clause(i) above, but the lack of such confirmation shall in no way affect any action taken by the Custodian in reliance upon such oral instructions prior to the Custodian's receipt of such confirmation. Each of the Funds and the Custodian is hereby authorized to record any and all telephonic or other oral instructions communicated to the Custodian. Proper Instructions may relate to specific transactions or to types or classes of transactions, and may be in the form of standing instructions. (b) Special Instructions. As used herein, the term "Special Instructions" shall mean Proper Instructions countersigned or confirmed in writing by, in the case of the entities listed in Schedules A-1 or A-2 hereto, the Treasurer or any Assistant Treasurer of the Funds or any other person designated in writing by the Treasurer of the Funds, and in the case of each of the entities listed on Schedules A-3 or A-4, by the officer who is a signatory to this Agreement on behalf of such entity or any other person designated in writing by such officer or an officer of such entity of higher authority, which countersignature or written confirmation shall be (i) included on the same instrument containing the Proper Instructions or on a separate instrument relating thereto, and (ii) delivered by hand, by facsimile transmission, or in such other manner as the parties hereto may agree in writing. (c) Address for Proper Instructions and Special Instructions. Proper Instructions and Special Instructions shall be delivered to the Custodian at the address and/or telephone, telecopy or telex number agreed upon from time to time by the Custodian and the Funds. Section 3.02. Authorized Persons. Concurrently with the execution of this Agreement and from time to time thereafter, as appropriate, the Funds shall deliver to the Custodian, duly certified as appropriate by the Treasurer or any Assistant Treasurer of the Funds or by a Secretary or Assistant Secretary of the Funds, and in the case of each of the entities listed on Schedules A-3 or A-4, by the officer who is a signatory to this Agreement on behalf of such entity or any other person designated in writing by such officer or an officer of higher authority, a certificate setting forth (a) the names, signatures and scope of authority of all persons authorized to give Proper Instructions or any other notice, request, direction, instruction, certificate or instrument on behalf of the Funds (collectively, the "Authorized Persons," and individually, an "Authorized Person"), and (b) the names and signatures of those persons authorized to issue Special Instructions. Such certificate may be accepted and relied upon by the Custodian as conclusive evidence of the facts set forth therein and shall be considered to be in full force and effect until delivery to the Custodian of a similar certificate to the contrary. Upon delivery of a certificate which deletes the name of a person previously authorized to give Proper Instructions or to issue Special Instructions, such person shall no longer be considered an Authorized Person or authorized to issue Special Instructions, as applicable. Section 3.03. Investment Limitations. In performing its duties hereunder the Custodian may assume, unless and until it receives special Instructions to the contrary (a "Contrary Notice"), that Proper Instructions received by it are not in conflict with or in any way contrary to any investment or other limitation applicable to any of the Funds. The Custodian shall in no event be liable to the Funds and shall be indemnified by the Funds for any loss, damage or expense to the Custodian arising out of any violation of any investment or other limitation to which any Fund is subject, except to the extent that such loss, damage or expense: (i) relates to a violation of any investment or other limitation of a Fund occurring after receipt by the Custodian of a Contrary Notice; or (ii) arises from a breach of this Agreement by the Custodian. Section 3.04. Persons Having Access to Assets of the Funds. No Authorized Person, Trustee, officer, employee or agent of the Funds (other than the Custodian) shall have physical access to the assets of the Funds held by the Custodian, or shall be authorized or permitted to withdraw any such assets for delivery to an account of such person, nor shall the Custodian deliver any such assets to any such person; provided, however, that nothing in this Section 3.04 shall prohibit: (a) any Authorized Person from giving Proper Instructions, or the persons described in Section 3.01(b) from issuing Special Instructions, so long as such action does not result in delivery of or access to assets of the Funds prohibited by this Section 3.04; or (b) the Funds' independent certified public accountants from examining or reviewing the assets of the Funds held by the Custodian. Section 3.05. Actions of Custodian Based on Proper Instructions and Special Instructions. Subject to the provisions of Section 4.01 hereof, the Custodian shall not be responsible for the title, validity or genuineness of any property, or evidence of title thereof, received by it or delivered by it pursuant to this Agreement. ARTICLE IV - STANDARD OF CARE; INDEMNIFICATION Section 4.01. Standard of Care. (a) General Standard of Care. The Custodian shall exercise reasonable care and diligence in carrying out all of its duties and obligations under this Agreement, and shall be liable to the Funds for all loss, damage and expense incurred or suffered by the Funds, resulting from the failure of the Custodian to exercise such reasonable care and diligence or from any other breach by the Custodian of the terms of this Agreement. (b) Acts of God, Etc. In no event shall the Custodian incur liability hereunder if the Custodian is prevented, forbidden or delayed from performing, or omits to perform, any act or thing which this Agreement provides shall be performed or omitted to be performed by reason of: (i) any provision of any present or future law or regulation or order of the United States of America, or any state thereof, or of any foreign country, or political subdivision thereof or of any court of competent jurisdiction; or (ii) any act of God or war; unless, in each case, such delay or nonperformance is caused by (A) the negligence, misfeasance or misconduct of the Custodian, or (B) a malfunction or failure of equipment maintained or operated by the Custodian other than a malfunction or failure caused by events beyond the Custodian's control and which could not reasonably be anticipated and/or prevented by the Custodian. (c) Mitigation by Custodian. Upon the occurrence of any event which causes or may cause any loss, damage or expense to the Funds, the Custodian shall use all commercially reasonable efforts and shall take all reasonable steps under the circumstances to mitigate the effects of such event and to avoid continuing harm to the Funds. Section 4.02. Liability of Custodian for Actions of Securities Systems. Notwithstanding the provisions of Section4.01 to the contrary, the Custodian shall not be liable to the Funds for any loss, damage or expense resulting from the use by the Custodian of a Securities System, unless such loss, damage or expense is caused by, or results from, negligence, misfeasance or misconduct of the Custodian. In the case of loss, damage or expense resulting from use of a Securities System by the Custodian, the Custodian shall take all reasonable steps to enforce such rights as it may have against the Securities System to protect the interest of the Funds. Section 4.03. Indemnification. (a) Indemnification Obligations. Subject to the limitations set forth in this Agreement, the Funds severally agree to indemnify and hold harmless the Custodian from all claims and liabilities (including reasonable attorneys' fees) incurred or assessed against the Custodian for actions taken in reliance upon Proper Instructions or Special Instructions; provided, however, that such indemnity shall not apply to claims and liabilities occasioned by or resulting from the negligence, misfeasance or misconduct of the Custodian, or any other breach of this Agreement by the Custodian. In addition, the Funds severally agree to indemnify the Custodian against any liability incurred by the Custodian by reason of taxes assessed to the Custodian, or other costs, liability or expenses incurred by the Custodian, resulting directly or indirectly solely from the fact that securities and other property of the Funds is registered in the name of the Custodian; provided, however, in no event shall such indemnification be applicable to income, franchise or similar taxes which may be imposed or applied against the Custodian or charges imposed by a Federal Reserve Bank with respect to intra-day overdrafts unless separately agreed to by the Funds. (b) Extent of Liability. Notwithstanding anything to the contrary contained herein, with respect to the indemnification obligations of the Funds provided in this Section4.03, each Fund shall be: (i) severally, and not jointly and severally, liable with each of the other Funds; and (ii) liable only for its pro rata share of such liabilities, determined with reference to such Fund's proportionate interest in the aggregate of assets held by the Custodian in the Account with respect to which such liability relates at the time such liability was incurred, as reflected on the books and records of the Funds. (c) Notice of Litigation, Right to Prosecute, Etc. The Custodian shall promptly notify the Funds in writing of the commencement of any litigation or proceeding brought against the Custodian in respect of which indemnity may be sought against the Funds pursuant to this Section4.03. The Funds shall be entitled to participate in any such litigation or proceeding and, after written notice from the Funds to the Custodian, the Funds may assume the defense of such litigation or proceeding with counsel of their choice at their own expense. The Custodian shall not consent to the entry of any judgment or enter into any settlement in any such litigation or proceeding without providing the Funds with adequate notice of any such settlement or judgment, and without the Funds' prior written consent. The Custodian shall submit written evidence to the Funds with respect to any cost or expense for which it seeks indemnification in such form and detail as the Funds may reasonably request. Section 4.04. Funds, Right to Proceed. Notwithstanding anything to the contrary contained herein, the Funds shall have, at their election upon reasonable notice to the Custodian, the right to enforce, to the extent permitted by any applicable agreement and applicable law, the Custodian's rights against any Securities System or other person for loss, damage or expense caused the Custodian or the Funds by such Securities System or other person, and shall be entitled to enforce the rights of the Custodian with respect to.any claim against such Securities System or other person which the Custodian may have as a consequence of any such loss, damage or expense if and to the extent that the Custodian or any Fund has not been made whole for any such loss, damage or expense. ARTICLE V - COMPENSATION Section 5.01. Compensation. The Custodian shall be compensated for its services hereunder in an amount, and at such times, as may be agreed upon, from time to time, by the Custodian and the Funds. Each Fund shall be severally, and not jointly, liable with the other Funds only for its pro rata share of such compensation, determined with reference to such Fund's proportionate interest in each Repurchase Agreement transaction to which such compensation relates. Section 5.02. Waiver of Right of Set-Off. The Custodian hereby waives and relinquishes all contractual and common law rights of set-off to which it may now or hereafter be or become entitled with respect to any obligations of the Funds to the Custodian arising under this Agreement. ARTICLE VI - TERMINATION Section 6.01. Events of Termination. This Agreement shall continue in full force and effect until the first to occur of: (a) termination by the Custodian or the Funds by an instrument in writing delivered to the other party, such termination to take effect not sooner than ninety (90) days after the date of such delivery; or (b) termination by the Funds by written notice delivered to the Custodian, based upon the Funds' determination that there is a reasonable basis to conclude that the Custodian is insolvent or that the financial condition of the Custodian is deteriorating in any material respect, in which case termination shall take effect upon the Custodians receipt of such notice or at such later time as the Funds shall designate; provided, however, that this Agreement may be terminated as to one or more Funds (but less than all Funds) by delivery of an amended Schedule A-1, A-2, A-3 or A-4 pursuant to Section7.03 hereof. The execution and delivery of an amended Schedule A-1, A-2, A-3 or A-4 which deletes one or more Funds shall constitute a termination of this Agreement only with respect to such deleted Fund(s). Section 6.02. Successor Custodian; Payment of Compensation. Each of the Funds may identify a successor custodian to which the cash, Securities and other assets of such Fund shall, upon termination of this Agreement, be delivered; provided that in the case of the termination of this Agreement with respect to any of the Funds, such Fund or Funds shall direct the Custodian to transfer the assets of such Fund or Funds held by the Custodian pursuant to Proper Instructions. The Custodian agrees to cooperate with the Funds in the execution of documents and performance or all other actions necessary or desirable in order to substitute the successor custodian for the Custodian under this Agreement. In the event of termination, each Fund shall make payment of such Fund's applicable share of unpaid compensation within a reasonable time following termination and delivery of a statement to the Funds setting forth such fees. The termination of this Agreement with respect to any of the Funds shall be governed by the provisions of this ArticleVI as to notice, payments and delivery of securities and other assets, and shall not affect the obligations of the parties hereunder with respect to the other Funds set forth in Schedule A-1, A-2, A-3 or A-4 as amended from time to time. ARTICLE VII - MISCELLANEOUS Section 7.01. Representative Capacity and Binding Obligation. A COPY OF THE DECLARATION OF TRUST OR OTHER ORGANIZATIONAL DOCUMENTS OF EACH FUND IS ON FILE WITH THE SECRETARY OF THE STATE OF EACH FUND'S FORMATION, AND NOTICE IS HEREBY GIVEN THAT THIS AGREEMENT IS NOT EXECUTED ON BEHALF OF THE TRUSTEES OF ANY FUND AS INDIVIDUALS, AND THE OBLIGATIONS OF THIS AGREEMENT ARE NOT BINDING UPON ANY OF THE SHAREHOLDERS, TRUSTEES, DIRECTORS, PARTNERS, OFFICERS, EMPLOYEES OR AGENTS OF ANY FUND INDIVIDUALLY, BUT ARE BINDING ONLY UPON THE ASSETS AND PROPERTY OF THE FUNDS, AND IN THE CASE OF SERIES COMPANIES, SUCH FUNDS' RESPECTIVE PORTFOLIOS OR SERIES. THE CUSTODIAN AGREES THAT NO SHAREHOLDER, TRUSTEE, DIRECTOR, PARTNER, OFFICER, EMPLOYEE OR AGENT OF ANY FUND MAY BE HELD PERSONALLY LIABLE OR RESPONSIBLE FOR ANY OBLIGATIONS OF THE FUNDS ARISING OUT OF THIS AGREEMENT. WITH RESPECT TO OBLIGATIONS OF EACH FUND ARISING OUT OF THIS AGREEMENT, THE CUSTODIAN SHALL LOOK FOR PAYMENT OR SATISFACTION OF ANY CLAIM SOLELY TO THE ASSETS AND PROPERTY OF THE FUND TO WHICH SUCH OBLIGATION RELATES AS THOUGH EACH FUND HAD SEPARATELY CONTRACTED WITH THE CUSTODIAN BY SEPARATE WRITTEN INSTRUMENT." Section 7.02. Entire Agreement. This Agreement constitutes the entire understanding and agreement of the parties hereto with respect to the subject matter hereof. Section 7.03. Amendments. No provision of this Agreement may be amended except by a statement in writing signed by the party against which enforcement of the amendment is sought; provided, however, Schedule A-1, A-2, A-3 or A-4 listing the Funds which are parties hereto, Schedule B listing the Fund Custodians and Schedule C listing the Repo Custodians may be amended from time to time to add or delete one or more Funds, Fund Custodians or Repo Custodians, as the case may be, by the Funds' delivery of an amended Schedule A-1, A-2, A-3 or A-4, Schedule B or Schedule C to the Custodian. The deletion of one or more Funds from Schedule A-1, A-2, A-3 or A-4 shall have the effect of terminating this Agreement as to such Fund(s), but shall not affect this Agreement with respect to any other Fund. Section 7.04. Interpretation. In connection with the operation of this Agreement, the Custodian, and the Funds may agree in writing from time to time on such provisions interpretative of or in addition to the provisions of this Agreement as may in their joint opinion be consistent with the general tenor of this Agreement. No interpretative or additional provisions made as provided in the preceding sentence shall be deemed to be an amendment of this Agreement. Section 7.05. Captions. Headings contained in this Agreement, which are included as convenient references only, shall have no bearing upon the interpretation of the terms of the Agreement or the obligations of the parties hereto. Section 7.06. Governing Law. THE PROVISIONS OF THIS AGREEMENT SHALL BE GOVERNED AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO CONFLICT OF LAWS PRINCIPLES THEREOF. Section 7.07. Notice and Confirmations. (a) Except as provided in Section 7.07(b) below and except in the case of Proper Instructions or Special Instructions, notices and other writings contemplated by this Agreement shall be delivered by hand or by facsimile transmission (provided that in the case of delivery by facsimile transmission, notice shall also be mailed postage prepaid) to the parties at the following addresses: (i) If to the Funds: FMR Texas Inc. 400 East Las Colinas Blvd., CP9M Irving, Texas 75039 Telephone: (214) 584-7800 Attention: Ms. Deborah Todd or Mr. Samuel Silver (ii) If to the Custodian: The Bank of New York One Wall Street Fourth Floor New York, NY 10286 Attn: Claire Meskovic Telephone: (212) 635-4808 Telefax: (212) 635-4828 (b) The Custodian may provide the confirmations required by Sections 2.02 and 2.03 of this Agreement by making the information available in the form of a communication directly between electromechanical or electrical devices or systems (including, without limitation, computers) (or in such other manner as the parties hereto may agree in writing) to the following Fund Agent: Fidelity Accounting and Custody Domestic Securities Operations 400 East Las Colinas Blvd., CP9E Irving, Texas 75039 Telephone: (214) 506-4071 Attention: Mr. Mark Mufler The address and telephone number of the Funds, the Fund Agent and the Custodian and the identity of the Fund Agent specified in this Section 7.07 may be changed by written notice of the Funds to Custodian or Custodian to the Funds, as the case may be. All written notices which are required or provided to be given hereunder shall be effective upon actual receipt by the entity to which such notice is given. Section 7.08. Assignment. This Agreement shall be binding on and shall inure to the benefit of the parties hereto and their respective successors and assigns, provided that, no party hereto may assign this Agreement or any of its rights or obligations hereunder without the prior written consent of each of the other parties. Section 7.09. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original. This Agreement shall become effective when one or more counterparts have been signed and delivered by each of the parties. Section 7.10. Confidentiality; Survival of Obligations. The parties hereto agree that they shall each shall treat confidentially the terms and conditions of this Agreement and all information provided by each party to the others regarding its business and operations. All confidential information provided by a party hereto shall be used by any other party hereto solely for the purpose of rendering services pursuant to this Agreement and, except as may be required in carrying out this Agreement, shall not be disclosed to any third party without the prior consent of such providing party. The foregoing shall not be applicable to any information that is publicly available when provided or thereafter becomes publicly available other than through a breach of this Agreement, or that is required to be disclosed by any bank examiner of the Custodian, any auditor of the parties hereto or by judicial or administrative process or otherwise by applicable law or regulation. The provisions of this Section 7.10 and Sections3.03, 4.01, 4.02, 4.03, 4.04, 4.05, 7.01 and 7.06 shall survive any termination of this Agreement, provided that in the event of termination the Custodian agrees that it shall transfer and return Securities and other assets held by the Custodian for the benefit of the Funds as the Funds direct pursuant to Proper Instructions. IN WITNESS WHEREOF, each of the parties has caused this Agreement to be executed in its name and behalf on the day and year first above written. [Signature Lines Omitted] SCHEDULES A-1, A-2, A-3 AND A-4 TO JOINT TRADING ACCOUNT CUSTODY AGREEMENT BETWEEN THE BANK OF NEW YORK AND FIDELITY FUNDS DATED AS OF __________ The following is a list of the Funds to which this Agreement applies: SCHEDULE B TO JOINT TRADING ACCOUNT CUSTODY AGREEMENT BETWEEN THE BANK OF NEW YORK AND FIDELITY FUNDS DATED AS OF MAY 11, 1995 The following is a list of the Fund Custodians of the Funds: The Bank of New York Morgan Guaranty Trust Company Brown Brothers Harriman & Co. First Union National Bank Charlotte Chase Manhattan Bank, N.A. State Street Bank and Trust Company SCHEDULE C TO JOINT TRADING ACCOUNT CUSTODY AGREEMENT BETWEEN THE BANK OF NEW YORK AND FIDELITY FUNDS DATED AS OF MAY 11, 1995 The following is a list of Repo Custodians of the Funds: The Bank of New York Chemical Bank Morgan Guaranty Trust Company Exhibit 8(o) Form of FIRST AMENDMENT TO JOINT TRADING ACCOUNT CUSTODY AGREEMENT BETWEEN THE BANK OF NEW YORK AND FIDELITY FUNDS FIRST AMENDMENT TO JOINT TRADING ACCOUNT CUSTODY AGREEMENT BETWEEN THE BANK OF NEW YORK AND FIDELITY FUNDS, dated as of _______, by and between THE BANK OF NEW YORK ("Custodian") and each of the entities listed on SchedulesA-1, A-2, A-3 and A-4 hereto on behalf of itself or, (i) in the case of a series company, on behalf of one or more of its portfolios or series listed on SchedulesA-1 or A-2 hereto, (ii) in the case of the accounts listed on Schedule A-3 hereto, acting through Fidelity Management & Research Company, and (iii)in the case of the commingled or individual accounts listed on Schedule A-4 hereto, acting through Fidelity Management Trust Company (collectively, the "Funds" and each, a "Fund"). WITNESSETH WHEREAS, Custodian and certain of the Funds have entered into that certain Joint Trading Account Custody Agreement between The Bank of New York and Fidelity Funds, dated as of ______ (the "Agreement"), pursuant to which the Funds have appointed the Custodian as its custodian for the purpose of establishing and administering one or more joint trading accounts or subaccounts thereof (individually, an "Account" and collectively, the "Accounts") and holding cash and securities for the Funds in connection with repurchase transactions effected through the Accounts; and WHEREAS, Seller and the Funds desire to amend the Agreement as set forth below. NOW, THEREFORE, in consideration of the premises and mutual promises and covenants contained herein, the parties hereto agree as follows. Unless otherwise defined herein or the context otherwise requires, terms used in this Amendment, including the preamble and recitals, have the meanings provided in the Agreement. The Agreement is hereby amended by deleting Paragraph2.03(f) in its entirety and substituting the following in lieu thereof: Exhibit 8(o) "(f) Overdraft. In the event that the Custodian is directed by Proper Instructions to make any payment or transfer of funds on behalf of a Fund for which there would be, at the close of business on the date of such payment or transfer, insufficient funds held by the Custodian on behalf of such Fund, the Custodian may, in its discretion, provide an overdraft ("Overdraft") to the Fund (such Fund being referred to herein as an "Overdraft Fund"), in an amount sufficient to allow the completion of such payment or transfer. Any Overdraft provided hereunder: (a) shall be payable on the next Business Day, unless otherwise agreed by the Overdraft Fund and the Custodian; and (b) shall accrue interest from the date of the Overdraft to the date of payment in full by the Overdraft Fund at a rate agreed upon in writing, from time to time, by the Custodian and the Overdraft Fund. The Custodian and the Funds acknowledge that the purpose of such Overdrafts is to temporarily finance the purchase or sale of securities for prompt delivery in accordance with the terms hereof. The Custodian hereby agrees to notify each Overdraft Fund by 3:00 p.m., New York time, of the amount of any Overdraft. Provided that Custodian has given the notice required by this subparagraph (f), the Funds hereby agree that, as security for the Overdraft of an Overdraft Fund, the Custodian shall have a continuing lien and security interest in and to all interest of such Overdraft Fund in Securities whose purchase is financed by Custodian and which are in Custodian's possession or in the possession or control of any third party acting on Custodian's behalf and the proceeds thereof. In this regard, Custodian shall be entitled to all the rights and remedies of a pledgee under common law and a secured party under the New York Uniform Commercial Code and any other applicable laws or regulations as then in effect." IN WITNESS WHEREOF, the undersigned have caused this Amendment to be executed and delivered under seal by their duly authorized officers. BANK OF NEW YORK By: /s/ Name: Kurt D. Woetzel Title: Senior Vice President FIDELITY INVESTMENT COMPANIES LISTED ON SCHEDULE A-1 HERETO AND ACCOUNTS LISTED ON SCHEDULE A-3 HERETO Dated: By: /s/ Name: Kenneth A. Rathgeber Title: Treasurer of the Fidelity Investment Companies listed on ScheduleA-1 and Vice President of Fidelity Management& Research Company FIDELITY INVESTMENT COMPANIES LISTED ON SCHEDULE A-2 HERETO Dated: By: /s/ Name: David J. Saul Title: Director of the Fidelity International (Bermuda) Funds Limited, on behalf of the Funds listed on Schedule A-2 ACCOUNTS LISTED ON SCHEDULE A-4 HERETO By: FIDELITY MANAGEMENT TRUST COMPANY Dated: By: /s/ Name: John P. O'Reilly, Jr. Title: Executive Vice President EX-99.B8 11 Exhibit 8(p) Form of CUSTODIAN AGREEMENT Between Each of the Investment Companies Listed on Appendix "A" Attached Hereto and Brown Brothers Harriman & Company TABLE OF CONTENTS ARTICLE Page I. APPOINTMENT OF CUSTODIAN 1 II. POWERS AND DUTIES OF CUSTODIAN 1 2.01 Safekeeping 1 2.02 Manner of Holding Securities 1 2.03 Security Purchases 2 2.04 Exchanges of Securities 2 2.05 Sales of Securities 3 2.06 Depositary Receipts 3 2.07 Exercise of Rights; Tender Offers 3 2.08 Stock Dividends, Rights, Etc. 3 2.09 Options 4 2.10 Futures Contracts 4 2.11 Borrowing 4 2.12 Interest Bearing Deposits 5 2.13 Foreign Exchange Transactions 5 2.14 Securities Loans 5 2.15 Collections 6 2.16 Dividends, Distributions and Redemptions 6 2.17 Proceeds from Shares Sold 6 2.18 Proxies, Notices, Etc. 6 2.19 Bills and Other Disbursements 7 2.20 Nondiscretionary Functions 7 2.21 Bank Accounts 7 2.22 Deposit of Fund Assets in Securities Systems 7 2.23 Other Transfers 8 2.24 Establishment of Segregated Account 9 2.25 Custodian's Books and Records . 9 2.26 Opinion of Fund's Independent Certified Public Accountants 9 2.27 Reports of Independent Certified Public Accountants 10 2.28 Overdraft Facility 10 III. PROPER INSTRUCTIONS, SPECIAL INSTRUCTIONS AND RELATED MATTERS 10 3.01 Proper Instructions and Special Instructions 10 3.02 Authorized Persons 11 3.03 Persons Having Access to Assets of the Portfolios 11 3.04 Actions of the Custodian Based on Proper Instructions and Special Instructions 11 i IV. SUBCUSTODIANS 11 4.01 Domestic Subcustodians 12 4.02 Foreign Subcustodians and Interim Subcustodians 12 4.03 Special Subcustodians 13 4.04 Termination of a Subcustodian 13 4.05 Certification Regarding Foreign Subcustodians 13 V. STANDARD OF CARE; INDEMNIFICATION 14 5.01 Standard of Care 14 5.02 Liability of Custodian for Actions of Other Persons 15 5.03 Indemnification 15 5.04 Investment Limitations 16 5.05 Fund's Right to Proceed 16 VI. COMPENSATION 17 VII. TERMINATION 17 7.01 Termination of Agreement as to One or More Funds 17 7.02 Termination as to One or More Portfolios 18 VIII. DEFINED TERMS 18 IX. MISCELLANEOUS 19 9.01 Execution of Documents, Etc 19 9.02 Representative Capacity; Nonrecourse Obligations 19 9.03 Several Obligations of the Funds and the Portfolios 19 9.04 Representations and Warranties 19 9.05 Entire Agreement 20 9.06 Waivers and Amendments 20 9.07 Interpretation 20 9.08 Captions 20 9.09 Governing Law 20 9.10 Notices 21 IX. MISCELLANEOUS 21 9.11 Assignment 21 9.12 Counterparts 21 9.13 Confidentiality; Survival of Obligations 21 ii APPENDICES Appendix "A" - List of Funds and Portfolios Appendix "B" - List of Additional Custodians, Special Subcustodians and Foreign Subcustodians Appendix "C" - Procedures Relating to Custodian's Security Interest iii EXHIBIT 8(P) FORM OF CUSTODIAN AGREEMENT AGREEMENT made as of the 1st day of September, 1994 between each of the Investment Companies Listed on Appendix "A" hereto, as the same may be amended from time to time (each a "Fund" and collectively the "Funds") and Brown Brothers Harriman & Company (the "Custodian"). W I T N E S S E T H WHEREAS, each Fund is or may be organized with one or more series of shares, each of which shall represent an interest in a separate portfolio of cash, securities and other assets (all such existing and additional series now or hereafter listed on Appendix "A" being hereinafter referred to individually, as a "Portfolio," and collectively, as the "Portfolios"); and WHEREAS, each Fund desires to appoint the Custodian as custodian on behalf of each of its Portfolios in accordance with the provisions of the Investment Company Act of 1940, as amended (the "1940 Act"), and the rules and regulations thereunder, under the terms and conditions set forth in this Agreement, and the Custodian has agreed so to act as custodian. NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, the parties hereto agree as follows: ARTICLE I APPOINTMENT OF CUSTODIAN On behalf of each of its Portfolios, each Fund hereby employs and appoints the Custodian as a custodian, subject to the terms and provisions of this Agreement. Each Fund shall deliver to the Custodian, or shall cause to be delivered to the Custodian, cash, securities and other assets owned by each of its Portfolios from time to time during the term of this Agreement and shall specify to which of its Portfolios such cash, securities and other assets are to be specifically allocated. ARTICLE II POWERS AND DUTIES OF CUSTODIAN As custodian, the Custodian shall have and perform the powers and duties set forth in this Article II. Pursuant to and in accordance with Article IV hereof, the Custodian may appoint one or more Subcustodians (as hereinafter defined) to exercise the powers and perform the duties of the Custodian set forth in this Article II and references to the Custodian in this Article II shall include any Subcustodian so appointed. Section 2.01. Safekeeping. The Custodian shall keep safely all cash, securities and other assets of each Fund's Portfolios delivered to the Custodian and, on behalf of such Portfolios, the Custodian shall, from time to time, accept delivery of cash, securities and other assets for safekeeping. Section 2.02. Manner of Holding Securities. (a) The Custodian shall at all times hold securities of each Fund's Portfolios either: (i) by physical possession of the share certificates or other instruments representing such securities in registered or bearer form; or (ii) in book-entry form by a Securities System (as hereinafter defined) in accordance with the provisions of Section 2.22 below. (b) The Custodian shall at all times hold registered securities of each Portfolio in the name of the Custodian, the Portfolio or a nominee of either of them, unless specifically directed by Proper Instructions to hold such registered securities in so-called street name; provided that, in any event, all such securities and other assets shall be held in an account of the Custodian containing only assets of a Portfolio, or only assets held by the Custodian as a fiduciary or custodian for customers; and provided further, that the records of the Custodian shall indicate at all times the Portfolio or other customer for which such securities and other assets are held in such account and the respective interests therein. Section 2.03. Security Purchases. Upon receipt of Proper Instructions (as hereinafter defined), the Custodian shall pay for and receive securities purchased for the account of a Portfolio, provided that payment shall be made by the Custodian only upon receipt of the securities: (a) by the Custodian; (b) by a clearing corporation of a national securities exchange of which the Custodian is a member; or (c) by a Securities System. Notwithstanding the foregoing, upon receipt of Proper Instructions: (i) in the case of a repurchase agreement, the Custodian may release funds to a Securities System prior to the receipt of advice from the Securities System that the securities underlying such repurchase agreement have been transferred by book-entry into the Account (as hereinafter defined) maintained with such Securities System by the Custodian, provided that the Custodian's instructions to the Securities System require that the Securities System may make payment of such funds to the other party to the repurchase agreement only upon transfer by book-entry of the securities underlying the repurchase agreement into the Account; (ii) in the case of time deposits, call account deposits, currency deposits, and other deposits, foreign exchange transactions, futures contracts or options, pursuant to Sections 2.09, 2.10, 2.12 and 2.13 hereof, the Custodian may make payment therefor before receipt of an advice or confirmation evidencing said deposit or entry into such transaction; (iii) in the case of the purchase of securities, the settlement of which occurs outside of the United States of America, the Custodian may make payment therefor and receive delivery of such securities in accordance with local custom and practice generally accepted by Institutional Clients (as hereinafter defined) in the country in which the settlement occurs, but in all events subject to the standard of care set forth in Article V hereof; and (iv) in the case of the purchase of securities in which, in accordance with standard industry custom and practice generally accepted by Institutional Clients with respect to such securities, the receipt of such securities and the payment therefor take place in different countries, the Custodian may receive delivery of such securities and make payment therefor in accordance with standard industry custom and practice for such securities generally accepted by Institutional Clients, but in all events subject to the standard of care set forth in Article V hereof. For purposes of this Agreement, an "Institutional Client" shall mean a major commercial bank, corporation, insurance company, or substantially similar institution, which, as a substantial part of its business operations, purchases or sells securities and makes use of custodial services. Section 2.04. Exchanges of Securities. Upon receipt of Proper Instructions, the Custodian shall exchange securities held by it for the account of a Portfolio for other securities in connection with any reorganization, recapitalization, split-up of shares, change of par value, conversion or other event relating to the securities or the issuer of such securities, and shall deposit any such securities in accordance with the terms of any reorganization or protective plan. The Custodian shall, without receiving Proper Instructions: surrender securities in temporary form for definitive securities; surrender securities for transfer into the name of the Custodian, a Portfolio or a nominee of either of them, as permitted by Section 2.02(b); and surrender securities for a different number of certificates or instruments representing the same number of shares or same principal amount of indebtedness, provided that the securities to be issued will be delivered to the Custodian or a nominee of the Custodian. Section 2.05. Sales of Securities. Upon receipt of Proper Instructions, the Custodian shall make delivery of securities which have been sold for the account of a Portfolio, but only against payment therefor in the form of: (a) cash, certified check, bank cashier's check, bank credit, or bank wire transfer; (b) credit to the account of the Custodian with a clearing corporation of a national securities exchange of which the Custodian is a member; or (c) credit to the Account of the Custodian with a Securities System, in accordance with the provisions of Section 2.22 hereof. Notwithstanding the foregoing: (i) in the case of the sale of securities, the settlement of which occurs outside of the United States of America, such securities shall be delivered and paid for in accordance with local custom and practice generally accepted by Institutional Clients in the country in which the settlement occurs, but in all events subject to the standard of care set forth in Article V hereof; (ii) in the case of the sale of securities in which, in accordance with standard industry custom and practice generally accepted by Institutional Clients with respect to such securities, the delivery of such securities and receipt of payment therefor take place in different countries, the Custodian may deliver such securities and receive payment therefor in accordance with standard industry custom and practice for such securities generally accepted by Institutional Clients, but in all events subject to the standard of care set forth in Article V hereof; and (iii) in the case of securities held in physical form, such securities shall be delivered and paid for in accordance with "street delivery custom" to a broker or its clearing agent, against delivery to the Custodian of a receipt for such securities, provided that the Custodian shall have taken reasonable steps to ensure prompt collection of the payment for, or the return of, such securities by the broker or its clearing agent, and provided further that the Custodian shall not be responsible for the selection of or the failure or inability to perform of such broker or its clearing agent. Section 2.06. Depositary Receipts. Upon receipt of Proper Instructions, the Custodian shall surrender securities to the depositary used for such securities by an issuer of American Depositary Receipts or International Depositary Receipts (hereinafter referred to, collectively, as "ADRs"), against a written receipt therefor adequately describing such securities and written evidence satisfactory to the Custodian that the depositary has acknowledged receipt of instructions to issue ADRs with respect to such securities in the name of the Custodian or a nominee of the Custodian, for delivery to the Custodian at such place as the Custodian may from time to time designate. Upon receipt of Proper Instructions, the Custodian shall surrender ADRs to the issuer thereof, against a written receipt therefor adequately describing the ADRs surrendered and written evidence satisfactory to the Custodian that the issuer of the ADRs has acknowledged receipt of instructions to cause its depository to deliver the securities underlying such ADRs to the Custodian. Section 2.07. Exercise of Rights; Tender Offers. Upon receipt of Proper Instructions, the Custodian shall: (a) deliver warrants, puts, calls, rights or similar securities to the issuer or trustee thereof, or to the agent of such issuer or trustee, for the purpose of exercise or sale, provided that the new securities, cash or other assets, if any, acquired as a result of such actions are to be delivered to the Custodian; and (b) deposit securities upon invitations for tenders thereof, provided that the consideration for such securities is to be paid or delivered to the Custodian, or the tendered securities are to be returned to the Custodian. Notwithstanding any provision of this Agreement to the contrary, the Custodian shall take all necessary action, unless otherwise directed to the contrary in Proper Instructions, to comply with the terms of all mandatory or compulsory exchanges, calls, tenders, redemptions, or similar rights of security ownership, and shall promptly notify each applicable Fund of such action in writing by facsimile transmission or in such other manner as such Fund and the Custodian may agree in writing. Section 2.08. Stock Dividends, Rights, Etc. The Custodian shall receive and collect all stock dividends, rights and other items of like nature and, upon receipt of Proper Instructions, take action with respect to the same as directed in such Proper Instructions. Section 2.09. Options. Upon receipt of Proper Instructions and in accordance with the provisions of any agreement between the Custodian, any registered broker-dealer and, if necessary, a Fund on behalf of any applicable Portfolio relating to compliance with the rules of the Options Clearing Corporation or of any registered national securities exchange or similar organization(s), the Custodian shall: (a) receive and retain confirmations or other documents, if any, evidencing the purchase or writing of an option on a security or securities index by the applicable Portfolio; (b) deposit and maintain in a segregated account, securities (either physically or by book-entry in a Securities System), cash or other assets; and (c) pay, release and/or transfer such securities, cash or other assets in accordance with notices or other communications evidencing the expiration, termination or exercise of such options furnished by the Options Clearing Corporation, the securities or options exchange on which such options are traded, or such other organization as may be responsible for handling such option transactions. Each Fund, on behalf of its applicable Portfolios, and the broker-dealer shall be responsible for the sufficiency of assets held in any segregated account established in compliance with applicable margin maintenance requirements and the performance of other terms of any option contract. Section 2.10. Futures Contracts. Upon receipt of Proper Instructions, or pursuant to the provisions of any futures margin procedural agreement among a Fund, on behalf of any applicable Portfolio, the Custodian and any futures commission merchant (a "Procedural Agreement"), the Custodian shall: (a) receive and retain confirmations, if any, evidencing the purchase or sale of a futures contract or an option on a futures contract by the applicable Portfolio; (b) deposit and maintain in a segregated account, cash, securities and other assets designated as initial, maintenance or variation "margin" deposits intended to secure the applicable Portfolio's performance of its obligations under any futures contracts purchased or sold or any options on futures contracts written by the Portfolio, in accordance with the provisions of any Procedural Agreement designed to comply with the rules of the Commodity Futures Trading Commission and/or any commodity exchange or contract market (such as the Chicago Board of Trade), or any similar organization(s), regarding such margin deposits; and (c) release assets from and/or transfer assets into such margin accounts only in accordance with any such Procedural Agreements. Each Fund, on behalf of its applicable Portfolios, and such futures commission merchant shall be responsible for the sufficiency of assets held in the segregated account in compliance with applicable margin maintenance requirements and the performance of any futures contract or option on a futures contract in accordance with its terms. Section 2.11. Borrowing. Upon receipt of Proper Instructions, the Custodian shall deliver securities of a Portfolio to lenders or their agents, or otherwise establish a segregated account as agreed to by the applicable Fund on behalf of such Portfolio and the Custodian, as collateral for borrowings effected by such Portfolio, provided that such borrowed money is payable by the lender (a) to or upon the Custodian's order, as Custodian for such Portfolio, and (b) concurrently with delivery of such securities. Section 2.12. Interest Bearing Deposits. Upon receipt of Proper Instructions directing the Custodian to purchase interest bearing fixed term and call deposits (hereinafter referred to collectively, as "Interest Bearing Deposits") for the account of a Portfolio, the Custodian shall purchase such Interest Bearing Deposits in the name of the Portfolio with such banks or trust companies (including the Custodian, any Subcustodian or any subsidiary or affiliate of the Custodian) (hereinafter referred to as "Banking Institutions") and in such amounts as the applicable Fund may direct pursuant to Proper Instructions. Such Interest Bearing Deposits may be denominated in U.S. Dollars or other currencies, as the applicable Fund on behalf of its Portfolio may determine and direct pursuant to Proper Instructions. The Custodian shall include in its records with respect to the assets of each Portfolio appropriate notation as to the amount and currency of each such Interest Bearing Bank Deposit, the accepting Banking Institution and all other appropriate details, and shall retain such forms of advice or receipt evidencing such account, if any, as may be forwarded to the Custodian by the Banking Institution. The responsibilities of the Custodian to each Fund for Interest Bearing Deposits accepted on the Custodian's books in the United States on behalf of the Fund's Portfolios shall be that of a U.S. bank for a similar deposit. With respect to Interest Bearing Deposits other than those accepted on the Custodian's books, (a) the Custodian shall be responsible for the collection of income as set forth in Section 2.15 and the transmission of cash and instructions to and from such accounts; and (b) the Custodian shall have no duty with respect to the selection of the Banking Institution or, so long as the Custodian acts in accordance with Proper Instructions, for the failure of such Banking Institution to pay upon demand. Upon receipt of Proper Instructions, the Custodian shall take such reasonable actions as the applicable Fund deems necessary or appropriate to cause each such Interest Bearing Deposit Account to be insured to the maximum extent possible by all applicable deposit insurers including, without limitation, the Federal Deposit Insurance Corporation. Section 2.13. Foreign Exchange Transactions (a) Foreign Exchange Transactions Other Than as Principal. Upon receipt of Proper Instructions, the Custodian shall settle foreign exchange contracts or options to purchase and sell foreign currencies for spot and future delivery on behalf of and for the account of a Portfolio with such currency brokers or Banking Institutions as the applicable Fund may determine and direct pursuant to Proper Instructions. The Custodian shall be responsible for the transmission of cash and instructions to and from the currency broker or Banking Institution with which the contract or option is made, the safekeeping of all certificates and other documents and agreements evidencing or relating to such foreign exchange transactions and the maintenance of proper records as set forth in Section 2.25. The Custodian shall have no duty with respect to the selection of the currency brokers or Banking Institutions with which a Fund deals on behalf of its Portfolios or, so long as the Custodian acts in accordance with Proper Instructions, for the failure of such brokers or Banking Institutions to comply with the terms of any contract or option. (b) Foreign Exchange Contracts as Principal. The Custodian shall not be obligated to enter into foreign exchange transactions as principal. However, if the Custodian has made available to a Fund its services as a principal in foreign exchange transactions, upon receipt of Proper Instructions, the Custodian shall enter into foreign exchange contracts or options to purchase and sell foreign currencies for spot and future delivery on behalf of and for the account of a Portfolio of such Fund with the Custodian as principal. The Custodian shall be responsible for the selection of the currency brokers or Banking Institutions and the failure of such currency brokers or Banking Institutions to comply with the terms of any contract or option. (c) Payments. Notwithstanding anything to the contrary contained herein, upon receipt of Proper Instructions the Custodian may, in connection with a foreign exchange contract, make free outgoing payments of cash in the form of U.S. Dollars or foreign currency prior to receipt of confirmation of such foreign exchange contract or confirmation that the countervalue currency completing such contract has been delivered or received. Section 2.14. Securities Loans. Upon receipt of Proper Instructions, the Custodian shall, in connection with loans of securities by a Portfolio, deliver securities of such Portfolio to the borrower thereof prior to receipt of the collateral, if any, for such borrowing; provided that, in cases of loans of securities secured by cash collateral, the Custodian's instructions to the Securities System shall require that the Securities System deliver the securities of the Portfolio to the borrower thereof only upon receipt of the collateral for such borrowing. Section 2.15. Collections. The Custodian shall, and shall cause any Subcustodian to: (a) collect amounts due and payable to each Fund with respect to portfolio securities and other assets of each of such Fund's Portfolios; (b) promptly credit to the account of each applicable Portfolio all income and other payments relating to portfolio securities and other assets held by the Custodian hereunder upon Custodian's receipt of such income or payments or as otherwise agreed in writing by the Custodian and the applicable Fund; (c) promptly endorse and deliver any instruments required to effect such collections; (d) promptly execute ownership and other certificates and affidavits for all federal, state and foreign tax purposes in connection with receipt of income, capital gains or other payments with respect to portfolio securities and other assets of each applicable Portfolio, or in connection with the purchase, sale or transfer of such securities or other assets; and (e) promptly file any certificates or other affidavits for the refund or reclaim of foreign taxes paid, and promptly notify each applicable Fund of any changes to law, interpretative rulings or procedures regarding such reclaims, and otherwise use all available measures customarily used to minimize the imposition of foreign taxes at source, and promptly inform each applicable Fund of alternative means of minimizing such taxes of which the Custodian shall become aware (or with the exercise of reasonable care should have become aware); provided, however, that with respect to portfolio securities registered in so-called street name, the Custodian shall use its best efforts to collect amounts due and payable to each Fund with respect to its Portfolios. The Custodian shall promptly notify each applicable Fund in writing by facsimile transmission or in such other manner as each such Fund and the Custodian may agree in writing if any amount payable with respect to portfolio securities or other assets of the Portfolios of such Fund(s) is not received by the Custodian when due. The Custodian shall not be responsible for the collection of amounts due and payable with respect to portfolio securities or other assets that are in default. Section 2.16. Dividends, Distributions and Redemptions. The Custodian shall promptly release funds or securities: (a) upon receipt of Proper Instructions, to one or more Distribution Accounts designated by the applicable Fund or Funds in such Proper Instructions; or (b) upon receipt of Special Instructions, as otherwise directed by the applicable Fund or Funds, for the purpose of the payment of dividends or other distributions to shareholders of each applicable Portfolio, and payment to shareholders who have requested repurchase or redemption of their shares of the Portfolio(s) (collectively, the "Shares"). For purposes of this Agreement, a "Distribution Account" shall mean an account established at a Banking Institution designated by the applicable Fund on behalf of one or more of its Portfolios in Special Instructions. Section 2.17. Proceeds from Shares Sold. The Custodian shall receive funds representing cash payments received for Shares issued or sold from time to time by the Funds, and shall promptly credit such funds to the account(s) of the applicable Portfolio(s). The Custodian shall promptly notify each applicable Fund of Custodian's receipt of cash in payment for Shares issued by such Fund by facsimile transmission or in such other manner as the Fund and Custodian may agree in writing. Upon receipt of Proper Instructions, the Custodian shall: (a) deliver all federal funds received by the Custodian in payment for Shares in payment for such investments as may be set forth in such Proper Instructions and at a time agreed upon between the Custodian and the applicable Fund; and (b) make federal funds available to the applicable Fund as of specified times agreed upon from time to time by the applicable Fund and the Custodian, in the amount of checks received in payment for Shares which are deposited to the accounts of each applicable Portfolio. Section 2.18. Proxies, Notices, Etc. The Custodian shall deliver to each applicable Fund, in the most expeditious manner practicable, all forms of proxies, all notices of meetings, and any other notices or announcements affecting or relating to securities owned by one or more of the applicable Fund's Portfolios that are received by the Custodian, any Subcustodian, or any nominee of either of them, and, upon receipt of Proper Instructions, the Custodian shall execute and deliver, or cause such Subcustodian or nominee to execute and deliver, such proxies or other authorizations as may be required. Except as directed pursuant to Proper Instructions, neither the Custodian nor any Subcustodian or nominee shall vote upon any such securities, or execute any proxy to vote thereon, or give any consent or take any other action with respect thereto. Section 2.19. Bills and Other Disbursements. Upon receipt of Proper Instructions, the Custodian shall pay or cause to be paid, all bills, statements, or other obligations of each Portfolio. Section 2.20. Nondiscretionary Functions. The Custodian shall attend to all nondiscretionary details in connection with the sale, exchange, substitution, purchase, transfer or other dealings with securities or other assets of each Portfolio held by the Custodian, except as otherwise directed from time to time pursuant to Proper Instructions. Section 2.21. Bank Accounts (a) Accounts with the Custodian and any Subcustodians. The Custodian shall open and operate a bank account or accounts (hereinafter referred to collectively, as "Bank Accounts") on the books of the Custodian or any Subcustodian provided that such account(s) shall be in the name of the Custodian or a nominee of the Custodian, for the account of a Portfolio, and shall be subject only to the draft or order of the Custodian; provided however, that such Bank Accounts in countries other than the United States may be held in an account of the Custodian containing only assets held by the Custodian as a fiduciary or custodian for customers, and provided further, that the records of the Custodian shall indicate at all times the Portfolio or other customer for which such securities and other assets are held in such account and the respective interests therein. Such Bank Accounts may be denominated in either U.S. Dollars or other currencies. The responsibilities of the Custodian to each applicable Fund for deposits accepted on the Custodian's books in the United States shall be that of a U.S. bank for a similar deposit. The responsibilities of the Custodian to each applicable Fund for deposits accepted on any Subcustodian's books shall be governed by the provisions of Section 5.02. (b) Accounts With Other Banking Institutions. The Custodian may open and operate Bank Accounts on behalf of a Portfolio, in the name of the Custodian or a nominee of the Custodian, at a Banking Institution other than the Custodian or any Subcustodian, provided that such account(s) shall be in the name of the Custodian or a nominee of the Custodian, for the account of a Portfolio, and shall be subject only to the draft or order of the Custodian; provided however, that such Bank Accounts may be held in an account of the Custodian containing only assets held by the Custodian as a fiduciary or custodian for customers, and provided further, that the records of the Custodian shall indicate at all times the Portfolio or other customer for which such securities and other assets are held in such account and the respective interests therein. Such Bank Accounts may be denominated in either U.S. Dollars or other currencies. Subject to the provisions of Section 5.01(a), the Custodian shall be responsible for the selection of the Banking Institution and for the failure of such Banking Institution to pay according to the terms of the deposit. (c) Deposit Insurance. Upon receipt of Proper Instructions, the Custodian shall take such reasonable actions as the applicable Fund deems necessary or appropriate to cause each deposit account established by the Custodian pursuant to this Section 2.21 to be insured to the maximum extent possible by all applicable deposit insurers including, without limitation, the Federal Deposit Insurance Corporation. Section 2.22. Deposit of Fund Assets in Securities Systems. The Custodian may deposit and/or maintain domestic securities owned by a Portfolio in: (a) The Depository Trust Company; (b) the Participants Trust Company; (c) any book-entry system as provided in (i) Subpart O of Treasury Circular No. 300, 31 CFR 306.115, (ii) Subpart B of Treasury Circular Public Debt Series No. 27-76, 31 CFR 350.2, or (iii) the book-entry regulations of federal agencies substantially in the form of 31 CFR 306.115; or (d) any other domestic clearing agency registered with the Securities and Exchange Commission ("SEC") under Section 17A of the Securities Exchange Act of 1934 (or as may otherwise be authorized by the Securities and Exchange Commission to serve in the capacity of depository or clearing agent for the securities or other assets of investment companies) which acts as a securities depository and the use of which each applicable Fund has previously approved by Special Instructions (as hereinafter defined) (each of the foregoing being referred to in this Agreement as a "Securities System"). Use of a Securities System shall be in accordance with applicable Federal Reserve Board and SEC rules and regulations, if any, and subject to the following provisions: (A) The Custodian may deposit and/or maintain securities held hereunder in a Securities System, provided that such securities are represented in an account ("Account") of the Custodian in the Securities System which Account shall not contain any assets of the Custodian other than assets held as a fiduciary, custodian, or otherwise for customers and shall be so designated on the books and records of the Securities System. (B) The Securities System shall be obligated to comply with the Custodian's directions with respect to the securities held in such Account and shall not be entitled to a lien against the assets in such Account for extensions of credit to the Custodian other than for payment of the purchase price of such assets. (C) Each Fund hereby designates the Custodian as the party in whose name any securities deposited by the Custodian in the Account are to be registered. (D) The books and records of the Custodian shall at all times identify those securities belonging to each Portfolio which are maintained in a Securities System. (E) The Custodian shall pay for securities purchased for the account of a Portfolio only upon (w) receipt of advice from the Securities System that such securities have been transferred to the Account of the Custodian, and (x) the making of an entry on the records of the Custodian to reflect such payment and transfer for the account of such Portfolio. The Custodian shall transfer securities sold for the account of a Portfolio only upon (y) receipt of advice from the Securities System that payment for such securities has been transferred to the Account of the Custodian, and (z) the making of an entry on the records of the Custodian to reflect such transfer and payment for the account of such Portfolio. Copies of all advices from the Securities System relating to transfers of securities for the account of a Portfolio shall identify such Portfolio and shall be maintained for such Portfolio by the Custodian. The Custodian shall deliver to each applicable Fund on the next succeeding business day daily transaction reports which shall include each day's transactions in the Securities System for the account of each applicable Portfolio. Such transaction reports shall be delivered to each applicable Fund or any agent designated by such Fund pursuant to Proper Instructions, by computer or in such other manner as such Fund and the Custodian may agree in writing. (F) The Custodian shall, if requested by a Fund pursuant to Proper Instructions, provide such Fund with all reports obtained by the Custodian or any Subcustodian with respect to a Securities System's accounting system, internal accounting control and procedures for safeguarding securities deposited in the Securities System. (G) Upon receipt of Special Instructions, the Custodian shall terminate the use of any Securities System (except the federal book-entry system) on behalf of any Portfolio as promptly as practicable and shall take all actions reasonably practicable to safeguard the securities of any Portfolio maintained with such Securities System. Section 2.23. Other Transfers. (a) Upon receipt of Proper Instructions, the Custodian shall transfer to or receive from a third party that has been appointed to serve as an additional custodian of one or more Portfolios (an "Additional Custodian") securities, cash and other assets of such Portfolio(s) in accordance with such Proper Instructions. Each Additional Custodian shall be identified as such on Appendix B, as the same may be amended from time to time in accordance with the provisions of Section 9.06(c). (b) Upon receipt of Special Instructions, the Custodian shall make such other dispositions of securities, funds or other property of a Portfolio in a manner or for purposes other than as expressly set forth in this Agreement, provided that the Special Instructions relating to such disposition shall include a statement of the purpose for which the delivery is to be made, the amount of funds and/or securities to be delivered, and the name of the person or persons to whom delivery is to be made, and shall otherwise comply with the provisions of Sections 3.01 and 3.03 hereof. Section 2.24. Establishment of Segregated Account. Upon receipt of Proper Instructions, the Custodian shall establish and maintain on its books a segregated account or accounts for and on behalf of a Portfolio, into which account or accounts may be transferred cash and/or securities or other assets of such Portfolio, including securities maintained by the Custodian in a Securities System pursuant to Section 2.22 hereof, said account or accounts to be maintained: (a) for the purposes set forth in Sections 2.09, 2.10 and 2.11 hereof; (b) for the purposes of compliance by the Portfolio with the procedures required by Investment Company Act Release No. 10666, or any subsequent release or releases of the SEC relating to the maintenance of segregated accounts by registered investment companies; or (c) for such other purposes as set forth, from time to time, in Special Instructions. Section 2.25. Custodian's Books and Records. The Custodian shall provide any assistance reasonably requested by a Fund in the preparation of reports to such Fund's shareholders and others, audits of accounts, and other ministerial matters of like nature. The Custodian shall maintain complete and accurate records with respect to securities and other assets held for the accounts of each Portfolio as required by the rules and regulations of the SEC applicable to investment companies registered under the 1940 Act, including: (a) journals or other records of original entry containing a detailed and itemized daily record of all receipts and deliveries of securities (including certificate and transaction identification numbers, if any), and all receipts and disbursements of cash; (b) ledgers or other records reflecting (i) securities in transfer, (ii) securities in physical possession, (iii) securities borrowed, loaned or collateralizing obligations of each Portfolio, (iv) monies borrowed and monies loaned (together with a record of the collateral therefor and substitutions of such collateral), (v) dividends and interest received, (vi) the amount of tax withheld by any person in respect of any collection made by the Custodian or any Subcustodian, and (vii) the amount of reclaims or refunds for foreign taxes paid; and (c) cancelled checks and bank records related thereto. The Custodian shall keep such other books and records of each Fund as such Fund shall reasonably request. All such books and records maintained by the Custodian shall be maintained in a form acceptable to the applicable Fund and in compliance with the rules and regulations of the SEC, including, but not limited to, books and records required to be maintained by Section 31(a) of the 1940 Act and the rules and regulations from time to time adopted thereunder. All books and records maintained by the Custodian pursuant to this Agreement shall at all times be the property of each applicable Fund and shall be available during normal business hours for inspection and use by such Fund and its agents, including, without limitation, its independent certified public accountants. Notwithstanding the preceding sentence, no Fund shall take any actions or cause the Custodian to take any actions which would cause, either directly or indirectly, the Custodian to violate any applicable laws, regulations or orders. Section 2.26. Opinion of Fund's Independent Certified Public Accountants. The Custodian shall take all reasonable action as a Fund may request to obtain from year to year favorable opinions from such Fund's independent certified public accountants with respect to the Custodian's activities hereunder in connection with the preparation of the Fund's Form N-1A and the Fund's Form N-SAR or other periodic reports to the SEC and with respect to any other requirements of the SEC. Section 2.27. Reports by Independent Certified Public Accountants. At the request of a Fund, the Custodian shall deliver to such Fund a written report prepared by the Custodian's independent certified public accountants with respect to the services provided by the Custodian under this Agreement, including, without limitation, the Custodian's accounting system, internal accounting control and procedures for safeguarding cash, securities and other assets, including cash, securities and other assets deposited and/or maintained in a Securities System or with a Subcustodian. Such report shall be of sufficient scope and in sufficient detail as may reasonably be required by any Fund and as may reasonably be obtained by the Custodian. Section 2.28. Overdraft Facility. In the event that the Custodian is directed by Proper Instructions to make any payment or transfer of funds on behalf of a Portfolio for which there would be, at the close of business on the date of such payment or transfer, insufficient funds held by the Custodian on behalf of such Portfolio, the Custodian may, in its discretion, provide an overdraft (an "Overdraft") to the applicable Fund on behalf of such Portfolio, in an amount sufficient to allow the completion of such payment. Any Overdraft provided hereunder: (a) shall be payable on the next Business Day, unless otherwise agreed by the applicable Fund and the Custodian; and (b) shall accrue interest from the date of the Overdraft to the date of payment in full by the applicable Fund on behalf of the applicable Portfolio at a rate agreed upon in writing, from time to time, by the Custodian and the applicable Fund. The Custodian and each Fund acknowledge that the purpose of such Overdrafts is to temporarily finance the purchase or sale of securities for prompt delivery in accordance with the terms hereof, or to meet emergency expenses not reasonably foreseeable by such Fund. The Custodian shall promptly notify each applicable Fund in writing (an "Overdraft Notice") of any Overdraft by facsimile transmission or in such other manner as such Fund and the Custodian may agree in writing. At the request of the Custodian, each applicable Fund, on behalf of one or more of its Portfolios, shall pledge, assign and grant to the Custodian a security interest in certain specified securities of the applicable Portfolio, as security for Overdrafts provided to such Portfolio, under the terms and conditions set forth in Appendix "C" attached hereto. ARTICLE III PROPER INSTRUCTIONS, SPECIAL INSTRUCTIONS AND RELATED MATTERS Section 3.01. Proper Instructions and Special Instructions. (a) Proper Instructions. As used herein, the term "Proper Instructions" shall mean: (i) a tested telex, a written (including, without limitation, facsimile transmission) request, direction, instruction or certification signed or initialed by or on behalf of the applicable Fund by one or more Authorized Persons (as hereinafter defined); (ii) a telephonic or other oral communication by one or more Authorized Persons; or (iii) a communication effected directly between an electro-mechanical or electronic device or system (including, without limitation, computers) by or on behalf of the applicable Fund by one or more Authorized Persons; provided, however, that communications of the types described in clauses (ii) and (iii) above purporting to be given by an Authorized Person shall be considered Proper Instructions only if the Custodian reasonably believes such communications to have been given by an Authorized Person with respect to the transaction involved. Proper Instructions in the form of oral communications shall be confirmed by the applicable Fund by tested telex or in writing in the manner set forth in clause (i) above, but the lack of such confirmation shall in no way affect any action taken by the Custodian in reliance upon such oral instructions prior to the Custodian's receipt of such confirmation. Each Fund and the Custodian are hereby authorized to record any and all telephonic or other oral instructions communicated to the Custodian. Proper Instructions may relate to specific transactions or to types or classes of transactions, and may be in the form of standing instructions. (b) Special Instructions. As used herein, the term "Special Instructions" shall mean Proper Instructions countersigned or confirmed in writing by the Treasurer or any Assistant Treasurer of the applicable Fund or any other person designated by the Treasurer of such Fund in writing, which countersignature or confirmation shall be (i) included on the same instrument containing the Proper Instructions or on a separate instrument relating thereto, and (ii) delivered by hand, by facsimile transmission, or in such other manner as the applicable Fund and the Custodian agree in writing. (c) Address for Proper Instructions and Special Instructions. Proper Instructions and Special Instructions shall be delivered to the Custodian at the address and/or telephone, telecopy or telex number agreed upon from time to time by the Custodian and the applicable Fund. Section 3.02. Authorized Persons. Concurrently with the execution of this Agreement and from time to time thereafter, as appropriate, each Fund shall deliver to the Custodian, duly certified as appropriate by a Treasurer or Assistant Treasurer of such Fund, a certificate setting forth: (a) the names, titles, signatures and scope of authority of all persons authorized to give Proper Instructions or any other notice, request, direction, instruction, certificate or instrument on behalf of such Fund (collectively, the "Authorized Persons" and individually, an "Authorized Person"); and (b) the names, titles and signatures of those persons authorized to issue Special Instructions. Such certificate may be accepted and relied upon by the Custodian as conclusive evidence of the facts set forth therein and shall be considered to be in full force and effect until delivery to the Custodian of a similar certificate to the contrary. Upon delivery of a certificate which deletes the name(s) of a person previously authorized by a Fund to give Proper Instructions or to issue Special Instructions, such persons shall no longer be considered an Authorized Person or authorized to issue Special Instructions for that Fund. Section 3.03. Persons Having Access to Assets of the Portfolios. Notwithstanding anything to the contrary contained in this Agreement, no Authorized Person, Trustee, officer, employee or agent of any Fund shall have physical access to the assets of any Portfolio of that Fund held by the Custodian nor shall the Custodian deliver any assets of a Portfolio for delivery to an account of such person; provided, however, that nothing in this Section 3.03 shall prohibit (a) any Authorized Person from giving Proper Instructions, or any person authorized to issue Special Instructions from issuing Special Instructions, so long as such action does not result in delivery of or access to assets of any Portfolio prohibited by this Section 3.03; or (b) each Fund's independent certified public accountants from examining or reviewing the assets of the Portfolios of the Fund held by the Custodian. Each Fund shall deliver to the Custodian a written certificate identifying such Authorized Persons, Trustees, officers, employees and agents of such Fund. Section 3.04. Actions of Custodian Based on Proper Instructions and Special Instructions. So long as and to the extent that the Custodian acts in accordance with (a) Proper Instructions or Special Instructions, as the case may be, and (b) the terms of this Agreement, the Custodian shall not be responsible for the title, validity or genuineness of any property, or evidence of title thereof, received by it or delivered by it pursuant to this Agreement. ARTICLE IV SUBCUSTODIANS The Custodian may, from time to time, in accordance with the relevant provisions of this Article IV, appoint one or more Domestic Subcustodians, Foreign Subcustodians, Interim Subcustodians and Special Subcustodians to act on behalf of a Portfolio. (For purposes of this Agreement, all duly appointed Domestic Subcustodians, Foreign Subcustodians, Interim Subcustodians, and Special Subcustodians are hereinafter referred to collectively, as "Subcustodians.") Section 4.01. Domestic Subcustodians. The Custodian may, at any time and from time to time, appoint any bank as defined in Section 2(a)(5) of the 1940 Act meeting the requirements of a custodian under Section 17(f) of the 1940 Act and the rules and regulations thereunder, to act on behalf of one or more Portfolios as a subcustodian for purposes of holding cash, securities and other assets of such Portfolios and performing other functions of the Custodian within the United States (a "Domestic Subcustodian"); provided, that, the Custodian shall notify each applicable Fund in writing of the identity and qualifications of any proposed Domestic Subcustodian at least thirty (30) days prior to appointment of such Domestic Subcustodian, and such Fund may, in its sole discretion, by written notice to the Custodian executed by an Authorized Person disapprove of the appointment of such Domestic Subcustodian. If, following notice by the Custodian to each applicable Fund regarding appointment of a Domestic Subcustodian and the expiration of thirty (30) days after the date of such notice, such Fund shall have failed to notify the Custodian of its disapproval thereof, the Custodian may, in its discretion, appoint such proposed Domestic Subcustodian as its subcustodian. Section 4.02. Foreign Subcustodians and Interim Subcustodians. (a) Foreign Subcustodians. The Custodian may, at any time and from time to time, appoint: (i) any bank, trust company or other entity meeting the requirements of an "eligible foreign custodian" under Section 17(f) of the 1940 Act and the rules and regulations thereunder or by order of the Securities and Exchange Commission exempted therefrom, or (ii) any bank as defined in Section 2(a)(5) of the 1940 Act meeting the requirements of a custodian under Section 17(f) of the 1940 Act and the rules and regulations thereunder to act on behalf of one or more Portfolios as a subcustodian for purposes of holding cash, securities and other assets of such Portfolios and performing other functions of the Custodian in countries other than the United States of America (a "Foreign Subcustodian"); provided, that, prior to the appointment of any Foreign Subcustodian, the Custodian shall have obtained written confirmation of the approval of the Board of Trustees or other governing body or entity of each applicable Fund on behalf of its applicable Portfolio(s) (which approval may be withheld in the sole discretion of such Board of Trustees or other governing body or entity) with respect to (i) the identity and qualifications of any proposed Foreign Subcustodian, (ii) the country or countries in which, and the securities depositories or clearing agencies, if any, through which, any proposed Foreign Subcustodian is authorized to hold securities and other assets of the applicable Portfolio(s), and (iii) the form and terms of the subcustodian agreement to be entered into between such proposed Foreign Subcustodian and the Custodian. Each such duly approved Foreign Subcustodian and the countries where and the securities depositories and clearing agencies through which they may hold securities and other assets of the applicable Portfolios shall be listed on Appendix "B" attached hereto, as it may be amended, from time to time, in accordance with the provisions of Section 9.05(c) hereof. Each Fund shall be responsible for informing the Custodian sufficiently in advance of a proposed investment by one of its Portfolios which is to be held in a country in which no Foreign Subcustodian is authorized to act, in order that there shall be sufficient time for the Custodian to effect the appropriate arrangements with a proposed foreign subcustodian, including obtaining approval as provided in this Section 4.02(a). The Custodian shall not amend any subcustodian agreement entered into with a Foreign Subcustodian, or agree to change or permit any changes thereunder, or waive any rights under such agreement, which materially affect a Fund's rights or the Foreign Subcustodian's obligations or duties to a Fund under such agreement, except upon prior approval pursuant to Special Instructions. (b) Interim Subcustodians. Notwithstanding the foregoing, in the event that a Portfolio shall invest in a security or other asset to be held in a country in which no Foreign Subcustodian is authorized to act, the Custodian shall promptly notify the applicable Fund in writing by facsimile transmission or in such other manner as such Fund and Custodian shall agree in writing of the unavailability of an approved Foreign Subcustodian in such country; and the Custodian shall, upon receipt of Special Instructions, appoint any Person designated by the applicable Fund in such Special Instructions to hold such security or other asset. (Any Person appointed as a subcustodian pursuant to this Section 4.02(b) is hereinafter referred to as an "Interim Subcustodian.") Section 4.03. Special Subcustodians. Upon receipt of Special Instructions, the Custodian shall, on behalf of one or more Portfolios, appoint one or more banks, trust companies or other entities designated in such Special Instructions to act as a subcustodian for purposes of: (i) effecting third-party repurchase transactions with banks, brokers, dealers or other entities through the use of a common custodian or subcustodian; (ii) establishing a joint trading account for the applicable Portfolio(s) and other registered open-end management investment companies for which Fidelity Management & Research Company serves as investment adviser, through which such Portfolios and such other investment companies shall collectively participate in certain repurchase transactions; (iii) providing depository and clearing agency services with respect to certain variable rate demand note securities; and (iv) effecting any other transactions designated by each applicable Fund in Special Instructions. (Each such designated subcustodian is hereinafter referred to as a "Special Subcustodian.") Each such duly appointed Special Subcustodian shall be listed on Appendix "B" attached hereto, as it may be amended from time to time in accordance with the provisions of Section 9.05(c) hereof. In connection with the appointment of any Special Subcustodian, the Custodian shall enter into a subcustodian agreement with the Special Subcustodian in form and substance approved by each applicable Fund, provided that such agreement shall in all events comply with the provisions of the 1940 Act and the rules and regulations thereunder and the terms and provisions of this Agreement. The Custodian shall not amend any subcustodian agreement entered into with a Special Subcustodian, or agree to change or permit any changes thereunder, or waive any rights under such agreement, except upon prior approval pursuant to Special Instructions. Section 4.04. Termination of a Subcustodian. The Custodian shall (i) cause each Domestic Subcustodian and Foreign Subcustodian to, and (ii) use its best efforts to cause each Interim Subcustodian and Special Subcustodian to, perform all of its obligations in accordance with the terms and conditions of the subcustodian agreement between the Custodian and such Subcustodian. In the event that the Custodian is unable to cause such Subcustodian to fully perform its obligations thereunder, the Custodian shall forthwith, upon the receipt of Special Instructions, terminate such Subcustodian with respect to each applicable Fund and, if necessary or desirable, appoint a replacement Subcustodian in accordance with the provisions of Section 4.01 or Section 4.02, as the case may be. In addition to the foregoing, the Custodian (A) may, at any time in its discretion, upon written notification to each applicable Fund, terminate any Domestic Subcustodian, Foreign Subcustodian or Interim Subcustodian, and (B) shall, upon receipt of Special Instructions, terminate any Subcustodian with respect to each applicable Fund, in accordance with the termination provisions under the applicable subcustodian agreement. Section 4.05. Certification Regarding Foreign Subcustodians. Upon request of a Fund, the Custodian shall deliver to such Fund a certificate stating: (i) the identity of each Foreign Subcustodian then acting on behalf of the Custodian for such Fund and its Portfolios; (ii) the countries in which and the securities depositories and clearing agents through which each such Foreign Subcustodian is then holding cash, securities and other assets of any Portfolio of such Fund; and (iii) such other information as may be requested by such Fund to ensure compliance with Rule 17(f)-5 under the 1940 Act. ARTICLE V STANDARD OF CARE; INDEMNIFICATION Section 5.01. Standard of Care. (a) General Standard of Care. The Custodian shall exercise reasonable care and diligence in carrying out all of its duties and obligations under this Agreement, and shall be liable to each Fund for all loss, damage and expense suffered or incurred by such Fund or its Portfolios resulting from the failure of the Custodian to exercise such reasonable care and diligence. (b) Actions Prohibited by Applicable Law, Etc. In no event shall the Custodian incur liability hereunder if the Custodian or any Subcustodian or Securities System, or any subcustodian, securities depository or securities system utilized by any such Subcustodian, or any nominee of the Custodian or any Subcustodian (individually, a "Person") is prevented, forbidden or delayed from performing, or omits to perform, any act or thing which this Agreement provides shall be performed or omitted to be performed, by reason of: (i) any provision of any present or future law or regulation or order of the United States of America, or any state thereof, or of any foreign country, or political subdivision thereof or of any court of competent jurisdiction; or (ii) any act of God or war or other similar circumstance beyond the control of the Custodian, unless, in each case, such delay or nonperformance is caused by (A) the negligence, misfeasance or misconduct of the applicable Person, or (B) a malfunction or failure of equipment operated or utilized by the applicable Person other than a malfunction or failure beyond such Person's control and which could not reasonably be anticipated and/or prevented by such Person. (c) Mitigation by Custodian. Upon the occurrence of any event which causes or may cause any loss, damage or expense to any Fund or Portfolio, (i) the Custodian shall, (ii) the Custodian shall cause any applicable Domestic Subcustodian or Foreign Subcustodian to, and (iii) the Custodian shall use its best efforts to cause any applicable Interim Subcustodian or Special Subcustodian to, use all commercially reasonable efforts and take all reasonable steps under the circumstances to mitigate the effects of such event and to avoid continuing harm to the Funds and the Portfolios. (d) Advice of Counsel. The Custodian shall be entitled to receive and act upon advice of counsel on all matters. The Custodian shall be without liability for any action reasonably taken or omitted in good faith pursuant to the advice of (i) counsel for the applicable Fund or Funds, or (ii) at the expense of the Custodian, such other counsel as the applicable Fund(s) and the Custodian may agree upon; provided, however, with respect to the performance of any action or omission of any action upon such advice, the Custodian shall be required to conform to the standard of care set forth in Section 5.01(a). (e) Expenses of the Funds. In addition to the liability of the Custodian under this Article V, the Custodian shall be liable to each applicable Fund for all reasonable costs and expenses incurred by such Fund in connection with any claim by such Fund against the Custodian arising from the obligations of the Custodian hereunder, including, without limitation, all reasonable attorneys' fees and expenses incurred by such Fund in asserting any such claim, and all expenses incurred by such Fund in connection with any investigations, lawsuits or proceedings relating to such claim; provided, that such Fund has recovered from the Custodian for such claim. (f) Liability for Past Records. The Custodian shall have no liability in respect of any loss, damage or expense suffered by a Fund, insofar as such loss, damage or expense arises from the performance of the Custodian's duties hereunder by reason of the Custodian's reliance upon records that were maintained for such Fund by entities other than the Custodian prior to the Custodian's appointment as custodian for such Fund. Section 5.02. Liability of Custodian for Actions of Other Persons. (a) Domestic Subcustodians and Foreign Subcustodians. The Custodian shall be liable for the actions or omissions of any Domestic Subcustodian or any Foreign Subcustodian to the same extent as if such action or omission were performed by the Custodian itself. In the event of any loss, damage or expense suffered or incurred by a Fund caused by or resulting from the actions or omissions of any Domestic Subcustodian or Foreign Subcustodian for which the Custodian would otherwise be liable, the Custodian shall promptly reimburse such Fund in the amount of any such loss, damage or expense. (b) Interim Subcustodians. Notwithstanding the provisions of Section 5.01 to the contrary, the Custodian shall not be liable to a Fund for any loss, damage or expense suffered or incurred by such Fund or any of its Portfolios resulting from the actions or omissions of an Interim Subcustodian unless such loss, damage or expense is caused by, or results from, the negligence, misfeasance or misconduct of the Custodian; provided, however, in the event of any such loss, damage or expense, the Custodian shall take all reasonable steps to enforce such rights as it may have against such Interim Subcustodian to protect the interests of the Funds and the Portfolios. (c) Special Subcustodians and Additional Custodians. Notwithstanding the provisions of Section 5.01 to the contrary and except as otherwise provided in any subcustodian agreement to which the Custodian, a Fund and any Special Subcustodian or Additional Custodian are parties, the Custodian shall not be liable to a Fund for any loss, damage or expense suffered or incurred by such Fund or any of its Portfolios resulting from the actions or omissions of a Special Subcustodian or Additional Subcustodian, unless such loss, damage or expense is caused by, or results from, the negligence, misfeasance or misconduct of the Custodian; provided, however, that in the event of any such loss, damage or expense, the Custodian shall take all reasonable steps to enforce such rights as it may have against any Special Subcustodian or Additional Custodian to protect the interests of the Funds and the Portfolios. (d) Securities Systems. Notwithstanding the provisions of Section 5.01 to the contrary, the Custodian shall not be liable to a Fund for any loss, damage or expense suffered or incurred by such Fund or any of its Portfolios resulting from the use by the Custodian of a Securities System, unless such loss, damage or expense is caused by, or results from, the negligence, misfeasance or misconduct of the Custodian; provided, however, that in the event of any such loss, damage or expense, the Custodian shall take all reasonable steps to enforce such rights as it may have against the Securities System to protect the interests of the Funds and the Portfolios. (e) Reimbursement of Expenses. Each Fund agrees to reimburse the Custodian for all reasonable out-of-pocket expenses incurred by the Custodian on behalf of such Fund in connection with the fulfillment of its obligations under this Section 5.02; provided, however, that such reimbursement shall not apply to expenses occasioned by or resulting from the negligence, misfeasance or misconduct of the Custodian. Section 5.03. Indemnification. (a) Indemnification Obligations. Subject to the limitations set forth in this Agreement, each Fund severally and not jointly agrees to indemnify and hold harmless the Custodian and its nominees from all loss, damage and expense (including reasonable attorneys' fees) suffered or incurred by the Custodian or its nominee caused by or arising from actions taken by the Custodian on behalf of such Fund in the performance of its duties and obligations under this Agreement; provided, however, that such indemnity shall not apply to loss, damage and expense occasioned by or resulting from the negligence, misfeasance or misconduct of the Custodian or its nominee. In addition, each Fund agrees severally and not jointly to indemnify any Person against any liability incurred by reason of taxes assessed to such Person, or other loss, damage or expenses incurred by such Person, resulting from the fact that securities and other property of such Fund's Portfolios are registered in the name of such Person; provided, however, that in no event shall such indemnification be applicable to income, franchise or similar taxes which may be imposed or assessed against any Person. (b) Notice of Litigation, Right to Prosecute, Etc. No Fund shall be liable for indemnification under this Section 5.03 unless a Person shall have promptly notified such Fund in writing of the commencement of any litigation or proceeding brought against such Person in respect of which indemnity may be sought under this Section 5.03. With respect to claims in such litigation or proceedings for which indemnity by a Fund may be sought and subject to applicable law and the ruling of any court of competent jurisdiction, such Fund shall be entitled to participate in any such litigation or proceeding and, after written notice from such Fund to any Person, such Fund may assume the defense of such litigation or proceeding with counsel of its choice at its own expense in respect of that portion of the litigation for which such Fund may be subject to an indemnification obligation; provided, however, a Person shall be entitled to participate in (but not control) at its own cost and expense, the defense of any such litigation or proceeding if such Fund has not acknowledged in writing its obligation to indemnify the Person with respect to such litigation or proceeding. If such Fund is not permitted to participate or control such litigation or proceeding under applicable law or by a ruling of a court of competent jurisdiction, such Person shall reasonably prosecute such litigation or proceeding. A Person shall not consent to the entry of any judgment or enter into any settlement in any such litigation or proceeding without providing each applicable Fund with adequate notice of any such settlement or judgment, and without each such Fund's prior written consent. All Persons shall submit written evidence to each applicable Fund with respect to any cost or expense for which they are seeking indemnification in such form and detail as such Fund may reasonably request. Section 5.04. Investment Limitations. If the Custodian has otherwise complied with the terms and conditions of this Agreement in performing its duties generally, and more particularly in connection with the purchase, sale or exchange of securities made by or for a Portfolio, the Custodian shall not be liable to the applicable Fund and such Fund agrees to indemnify the Custodian and its nominees, for any loss, damage or expense suffered or incurred by the Custodian and its nominees arising out of any violation of any investment or other limitation to which such Fund is subject. Section 5.05. Fund's Right to Proceed. Notwithstanding anything to the contrary contained herein, each Fund shall have, at its election upon reasonable notice to the Custodian, the right to enforce, to the extent permitted by any applicable agreement and applicable law, the Custodian's rights against any Subcustodian, Securities System, or other Person for loss, damage or expense caused such Fund by such Subcustodian, Securities System, or other Person, and shall be entitled to enforce the rights of the Custodian with respect to any claim against such Subcustodian, Securities System or other Person, which the Custodian may have as a consequence of any such loss, damage or expense, if and to the extent that such Fund has not been made whole for any such loss or damage. If the Custodian makes such Fund whole for any such loss or damage, the Custodian shall retain the ability to enforce its rights directly against such Subcustodian, Securities System or other Person. Upon such Fund's election to enforce any rights of the Custodian under this Section 5.05, such Fund shall reasonably prosecute all actions and proceedings directly relating to the rights of the Custodian in respect of the loss, damage or expense incurred by such Fund; provided that, so long as such Fund has acknowledged in writing its obligation to indemnify the Custodian under Section 5.03 hereof with respect to such claim, such Fund shall retain the right to settle, compromise and/or terminate any action or proceeding in respect of the loss, damage or expense incurred by such Fund without the Custodian's consent and provided further, that if such Fund has not made an acknowledgement of its obligation to indemnify, such Fund shall not settle, compromise or terminate any such action or proceeding without the written consent of the Custodian, which consent shall not be unreasonably withheld or delayed. The Custodian agrees to cooperate with each Fund and take all actions reasonably requested by such Fund in connection with such Fund's enforcement of any rights of the Custodian. Each Fund agrees to reimburse the Custodian for all reasonable out-of-pocket expenses incurred by the Custodian on behalf of such Fund in connection with the fulfillment of its obligations under this Section 5.05; provided, however, that such reimbursement shall not apply to expenses occasioned by or resulting from the negligence, misfeasance or misconduct of the Custodian. ARTICLE VI COMPENSATION On behalf of each of its Portfolios, each Fund shall compensate the Custodian in an amount, and at such times, as may be agreed upon in writing, from time to time, by the Custodian and such Fund. ARTICLE VII TERMINATION Section 7.01. Termination of Agreement as to One or More Funds. With respect to each Fund, this Agreement shall continue in full force and effect until the first to occur of: (a) termination by the Custodian by an instrument in writing delivered or mailed to such Fund, such termination to take effect not sooner than ninety (90) days after the date of such delivery; (b) termination by such Fund by an instrument in writing delivered or mailed to the Custodian, such termination to take effect not sooner than thirty (30) days after the date of such delivery; or (c) termination by such Fund by written notice delivered to the Custodian, based upon such Fund's determination that there is a reasonable basis to conclude that the Custodian is insolvent or that the financial condition of the Custodian is deteriorating in any material respect, in which case termination shall take effect upon the Custodian's receipt of such notice or at such later time as such Fund shall designate. In the event of termination pursuant to this Section 7.01 by any Fund (a "Terminating Fund"), each Terminating Fund shall make payment of all accrued fees and unreimbursed expenses with respect to such Terminating Fund within a reasonable time following termination and delivery of a statement to the Terminating Fund setting forth such fees and expenses. Each Terminating Fund shall identify in any notice of termination a successor custodian or custodians to which the cash, securities and other assets of its Portfolios shall, upon termination of this Agreement with respect to such Terminating Fund, be delivered. In the event that no written notice designating a successor custodian shall have been delivered to the Custodian on or before the date when termination of this Agreement as to a Terminating Fund shall become effective, the Custodian may deliver to a bank or trust company doing business in Boston, Massachusetts, of its own selection, having an aggregate capital, surplus, and undivided profits, as shown by its last published report, of not less than $25,000,000, all securities and other assets of such Terminating Fund's Portfolios held by the Custodian and all instruments held by the Custodian relative thereto and all other property of the Terminating Fund's Portfolios held by the Custodian under this Agreement. Thereafter, such bank or trust company shall be the successor of the Custodian with respect to such Terminating Fund under this Agreement. In the event that securities and other assets of such Terminating Fund's Portfolios remain in the possession of the Custodian after the date of termination hereof with respect to such Terminating Fund owing to failure of the Terminating Fund to appoint a successor custodian, the Custodian shall be entitled to compensation for its services in accordance with the fee schedule most recently in effect, for such period as the Custodian retains possession of such securities and other assets, and the provisions of this Agreement relating to the duties and obligations of the Custodian and the Terminating Fund shall remain in full force and effect. In the event of the appointment of a successor custodian, it is agreed that the cash, securities and other property owned by a Terminating Fund and held by the Custodian, any Subcustodian or nominee shall be delivered to the successor custodian; and the Custodian agrees to cooperate with such Terminating Fund in the execution of documents and performance of other actions necessary or desirable in order to substitute the successor custodian for the Custodian under this Agreement. Section 7.02. Termination as to One or More Portfolios. This Agreement may be terminated as to one or more of a Fund's Portfolios (but less than all of its Portfolios) by delivery of an amended Appendix "A" deleting such Portfolios pursuant to Section 9.05(b) hereof, in which case termination as to such deleted Portfolios shall take effect thirty (30) days after the date of such delivery. The execution and delivery of an amended Appendix "A" which deletes one or more Portfolios shall constitute a termination of this Agreement only with respect to such deleted Portfolio(s), shall be governed by the preceding provisions of Section 7.01 as to the identification of a successor custodian and the delivery of cash, securities and other assets of the Portfolio(s) so deleted, and shall not affect the obligations of the Custodian and any Fund hereunder with respect to the other Portfolios set forth in Appendix "A," as amended from time to time. ARTICLE VIII DEFINED TERMS The following terms are defined in the following sections: Term Section Account 2.22 ADRs 2.06 Additional Custodian 2.23(a) Authorized Person(s) 3.02 Banking Institution 2.12(a) Business Day Appendix "C" Bank Accounts 2.21 Distribution Account 2.16 Domestic Subcustodian 4.01 Foreign Subcustodian 4.02(a) Fund Preamble Institutional Client 2.03 Interim Subcustodian 4.02(b) Overdraft 2.28 Overdraft Notice 2.28 Person 5.01(b) Portfolio Preamble Procedural Agreement 2.10 Proper Instructions 3.01(a) SEC 2.22 Securities System 2.22 Shares 2.16 Special Instructions 3.01(b) Special Subcustodian 4.03 Subcustodian Article IV Terminating Fund 7.01 1940 Act Preamble ARTICLE IX MISCELLANEOUS Section 9.01. Execution of Documents, Etc. (a) Actions by each Fund. Upon request, each Fund shall execute and deliver to the Custodian such proxies, powers of attorney or other instruments as may be reasonable and necessary or desirable in connection with the performance by the Custodian or any Subcustodian of their respective obligations to such Fund under this Agreement or any applicable subcustodian agreement with respect to such Fund, provided that the exercise by the Custodian or any Subcustodian of any such rights shall in all events be in compliance with the terms of this Agreement. (b) Actions by Custodian. Upon receipt of Proper Instructions, the Custodian shall execute and deliver to each applicable Fund or to such other parties as such Fund(s) may designate in such Proper Instructions, all such documents, instruments or agreements as may be reasonable and necessary or desirable in order to effectuate any of the transactions contemplated hereby. Section 9.02. Representative Capacity; Nonrecourse Obligations. A COPY OF THE DECLARATION OF TRUST OR OTHER ORGANIZATIONAL DOCUMENT OF EACH FUND IS ON FILE WITH THE SECRETARY OF THE STATE OF THE FUND'S FORMATION, AND NOTICE IS HEREBY GIVEN THAT THIS AGREEMENT IS NOT EXECUTED ON BEHALF OF THE TRUSTEES OF ANY FUND AS INDIVIDUALS, AND THE OBLIGATIONS OF THIS AGREEMENT ARE NOT BINDING UPON ANY OF THE TRUSTEES, OFFICERS, SHAREHOLDERS OR PARTNERS OF ANY FUND INDIVIDUALLY, BUT ARE BINDING ONLY UPON THE ASSETS AND PROPERTY OF EACH FUND'S RESPECTIVE PORTFOLIOS. THE CUSTODIAN AGREES THAT NO SHAREHOLDER, TRUSTEE, OFFICER OR PARTNER OF ANY FUND MAY BE HELD PERSONALLY LIABLE OR RESPONSIBLE FOR ANY OBLIGATIONS OF ANY FUND ARISING OUT OF THIS AGREEMENT. Section 9.03. Several Obligations of the Funds and the Portfolios. WITH RESPECT TO ANY OBLIGATIONS OF A FUND ON BEHALF OF ANY OF ITS PORTFOLIOS ARISING OUT OF THIS AGREEMENT, INCLUDING, WITHOUT LIMITATION, THE OBLIGATIONS ARISING UNDER SECTIONS 2.28, 5.03, 5.05 and ARTICLE VI HEREOF, THE CUSTODIAN SHALL LOOK FOR PAYMENT OR SATISFACTION OF ANY OBLIGATION SOLELY TO THE ASSETS AND PROPERTY OF THE PORTFOLIO TO WHICH SUCH OBLIGATION RELATES AS THOUGH EACH FUND HAD SEPARATELY CONTRACTED WITH THE CUSTODIAN BY SEPARATE WRITTEN INSTRUMENT WITH RESPECT TO EACH OF ITS PORTFOLIOS. Section 9.04. Representations and Warranties. (a) Representations and Warranties of Each Fund. Each Fund hereby severally and not jointly represents and warrants that each of the following shall be true, correct and complete with respect to each Fund at all times during the term of this Agreement: (i) the Fund is duly organized under the laws of its jurisdiction of organization and is registered as an open-end management investment company under the 1940 Act; and (ii) the execution, delivery and performance by the Fund of this Agreement are (w) within its power, (x) have been duly authorized by all necessary action, and (y) will not (A) contribute to or result in a breach of or default under or conflict with any existing law, order, regulation or ruling of any governmental or regulatory agency or authority, or (B) violate any provision of the Fund's corporate charter, Declaration of Trust or other organizational document, or bylaws, or any amendment thereof or any provision of its most recent Prospectus or Statement of Additional Information. (b) Representations and Warranties of the Custodian. The Custodian hereby represents and warrants to each Fund that each of the following shall be true, correct and complete at all times during the term of this Agreement: (i) the Custodian is duly organized under the laws of its jurisdiction of organization and qualifies to act as a custodian to open-end management investment companies under the provisions of the 1940 Act; and (ii) the execution, delivery and performance by the Custodian of this Agreement are (w) within its power, (x) have been duly authorized by all necessary action, and (y) will not (A) contribute to or result in a breach of or default under or conflict with any existing law, order, regulation or ruling of any governmental or regulatory agency or authority, or (B) violate any provision of the Custodian's corporate charter, or other organizational document, or bylaws, or any amendment thereof. Section 9.05. Entire Agreement. This Agreement constitutes the entire understanding and agreement of the Fund, on the one hand, and the Custodian, on the other, with respect to the subject matter hereof and accordingly, supersedes as of the effective date of this Agreement any custodian agreement heretofore in effect between each Fund and the Custodian. Section 9.06. Waivers and Amendments. No provision of this Agreement may be waived, amended or terminated except by a statement in writing signed by the party against which enforcement of such waiver, amendment or termination is sought; provided, however: (a) Appendix "A" listing the Portfolios of each Fund for which the Custodian serves as custodian may be amended from time to time to add one or more Portfolios for one or more Funds, by each applicable Fund's execution and delivery to the Custodian of an amended Appendix "A", and the execution of such amended Appendix by the Custodian, in which case such amendment shall take effect immediately upon execution by the Custodian; (b) Appendix "A" may be amended from time to time to delete one or more Portfolios (but less than all of the Portfolios) of one or more of the Funds, by each applicable Fund's execution and delivery to the Custodian of an amended Appendix "A", in which case such amendment shall take effect thirty (30) days after such delivery, unless otherwise agreed by the Custodian and each applicable Fund in writing; (c) Appendix "B" listing Foreign Subcustodians, Special Subcustodians and Additional Custodians approved by any Fund may be amended from time to time to add or delete one or more Foreign Subcustodians, Special Subcustodians or Additional Custodians for a Fund or Funds by each applicable Fund's execution and delivery to the Custodian of an amended Appendix "B", in which case such amendment shall take effect immediately upon execution by the Custodian; and (d) Appendix "C" setting forth the procedures relating to the Custodian's security interest with respect to each Fund may be amended only by an instrument in writing executed by each applicable Fund and the Custodian. Section 9.07. Interpretation. In connection with the operation of this Agreement, the Custodian and any Fund may agree in writing from time to time on such provisions interpretative of or in addition to the provisions of this Agreement with respect to such Fund as may in their joint opinion be consistent with the general tenor of this Agreement. No interpretative or additional provisions made as provided in the preceding sentence shall be deemed to be an amendment of this Agreement or affect any other Fund. Section 9.08. Captions. Headings contained in this Agreement, which are included as convenient references only, shall have no bearing upon the interpretation of the terms of the Agreement or the obligations of the parties hereto. Section 9.09. Governing Law. Insofar as any question or dispute may arise in connection with the custodianship of foreign securities pursuant to an agreement with a Foreign Subcustodian that is governed by the laws of the State of New York, the provisions of this Agreement shall be construed in accordance with and governed by the laws of the State of New York, provided that in all other instances this Agreement shall be construed in accordance with and governed by the laws of the Commonwealth of Massachusetts, in each case without giving effect to principles of conflicts of law. Section 9.10. Notices. Except in the case of Proper Instructions or Special Instructions, notices and other writings contemplated by this Agreement shall be delivered by hand or by facsimile transmission (provided that in the case of delivery by facsimile transmission, notice shall also be mailed postage prepaid to the parties at the following addresses: (a) If to any Fund: c/o Fidelity Management & Research Company 82 Devonshire Street Boston, Massachusetts 02109 Attn: Treasurer of the Fidelity Funds Telephone: (617) 563-7000 Telefax: (617) 476-4195 (b) If to the Custodian: Brown Brothers Harriman & Company 40 Water Street Boston, Massachusetts 02109 Attn: W. Casey Gildea, Assistant Manager Telephone: (617) 772-1330 Telefax: (617) 772-2263 or to such other address as a Fund or the Custodian may have designated in writing to the other. Section 9.11. Assignment. This Agreement shall be binding on and shall inure to the benefit of each Fund severally and the Custodian and their respective successors and assigns, provided that, subject to the provisions of Section 7.01 hereof, neither the Custodian nor any Fund may assign this Agreement or any of its rights or obligations hereunder without the prior written consent of the other party. Section 9.12. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original. With respect to each Fund, this Agreement shall become effective when one or more counterparts have been signed and delivered by such Fund and the Custodian. Section 9.13. Confidentiality; Survival of Obligations. The parties hereto agree that each shall treat confidentially the terms and conditions of this Agreement and all information provided by each party to the other regarding its business and operations. All confidential information provided by a party hereto shall be used by any other party hereto solely for the purpose of rendering services pursuant to this Agreement and, except as may be required in carrying out this Agreement, shall not be disclosed to any third party without the prior consent of such providing party. The foregoing shall not be applicable to any information that is publicly available when provided or thereafter becomes publicly available other than through a breach of this Agreement, or that is required to be disclosed by any bank examiner of the Custodian or any Subcustodian, any auditor of the parties hereto, by judicial or administrative process or otherwise by applicable law or regulation. The provisions of this Section 9.13 and Sections 9.01, 9.02, 9.03, 9.09, Section 2.28, Section 3.04, Section 7.01, Article V and Article VI hereof and any other rights or obligations incurred or accrued by any party hereto prior to termination of this Agreement shall survive any termination of this Agreement. IN WITNESS WHEREOF, each of the parties has caused this Agreement to be executed in its name and behalf on the day and year first above written. Each of the Investment Companies Listed on Brown Brothers Harriman & Company Appendix "A" Attached Hereto, on Behalf of each of Their Respective Portfolios [Signature Lines Omitted] Exhibit 8(p) Form of Appendix "B" To Custodian Agreement Between Brown Brothers Harriman & Co. and Each of the Investment Companies Listed on Appendix "A" thereto Dated as of The following is a list of Additional Custodians, Special Subcustodians and Foreign Subcustodians under the Custodian Agreement dated as of September 1, 1994 (the "Custodian Agreement"): A. Additional Custodians CUSTODIAN PURPOSE Bank of New York FICASH FITERM B. Special Subcustodians: SUBCUSTODIAN PURPOSE Bank of New York FICASH C. Foreign Subcustodians: COUNTRY FOREIGN SUBCUSTODIAN DEPOSITORY Argentina Citibank, N.A., Buenos Aires Caja de Valores, S.A.; (Citibank, N.A., New York Agt. 7/16/81 Central de Registracion y New York Agreement Amendment 8/31/90) Liquidacion de Instrumentos de Endeudamiento Publico (CRYL) First National Bank of Boston, Buenos Aires (First Nat. Bank of Boston Agreement 1/15/88 Omnibus Amendment 2/22/94) Australia National Australia Bank Ltd., Melbourne Austraclear Limited; (National Australia Bank Agt. 5/1/85 Reserve Bank Information and Agreement Amendment 2/13/92 Transfer System (RITS) Omnibus Amendment 11/22/93) Austria Creditanstalt-Bankverein, Vienna Oesterreichische Kontrollbank (Creditanstalt Bankverein Agreement 12/18/89 Aktiengesellschaft (OEKB) Omnibus Amendment 1/17/94) Bahrain British Bank of the Middle East, Manama None Bangladesh Standard Chartered Bank, Dhaka None (Standard Chartered Bank Agreement 2/18/92) Belgium Banque Bruxelles Lambert, Brussels Caisse Interprofessionnelle de Depot (Banque Bruxelles Lambert Agreement 11/15/90 et Virements de Titres (CIK) Omnibus Amendment 3/1/94) Banque Nationale de Belgique (BNB) Bostwana Barclays Bank of Bostwana Ltd., Gaborone None (Barclays Bank Agreement 10/5/94) Brazil First National Bank of Boston, Sao Paulo Sao Paulo Stock Exchange (First National Bank of Boston Agreement 1/5/88 (BOVESPA), Sistema Especial de Omnibus Amendment 2/22/94) Liquidacao e Custodia (SELIC); Rio de Janeiro Exchange (BVRJ) Canada Canadian Imperial Bank of Commerce, Toronto Canadian Depository for Securities, (Canadian Imperial Bank of Commerce Ltd., (CDS) Agreement 9/9/88 Omnibus Amendment 12/1/93) Royal Bank of Canada, Toronto Bank of Canada Proposed Agreement Chile Citibank, N.A., Santiago None (Citibank N.A., New York Agreement 7/16/81 New York Agreement Amendment 8/31/90) China-Shanghai Standard Chartered Bank, Shanghai Shanghai Securities Central Clearing (Standard Chartered Bank Agreement 2/18/92) & Registration Corporation (SSCCRC) China-Shenzhen Standard Chartered Bank, Shenzhen Shenzhen Securities Registration (Standard Chartered Bank Agreement 2/18/92) Corp. Ltd., (SSRC) Colombia Cititrust Colombia , S.A., Sociedad Fiduciaria, Bogota None (Citibank N.A., New York Agreement 7/16/81 New York Agreement Amendment 8/31/90 Citibank N.A. Subsidiary Amendment 10/19/95 Citibank N.A./Cititrust Colombia Agreement 12/2/91) Czech Republic Ceskoslovenska Obchodni Banka, S.A., Prague Stredisko Cennych Papiru (SCP) (Ceskoslovenska Obchodni Banka Agreement 2/28/94) Czech National Bank Denmark Den Danske Bank, Copenhagen Vaerdipapircentralen - VP Center (Den Danske Bank Agreement 1/1/89 Omnibus Amendment 12/1/93) Ecuador Citibank, N.A., Quito None (Citibank, N.A. New York Agreement 7/16/81 New York Agreement Amendment 8/31/90 Citibank, Quito Side Letter 7/3/95) Egypt Citibank, N.A., Cairo Misr for Clearing, Settlement (Citibank, N.A. New York Agreement 7/16/81 and Depository New York Agreement Amendment 8/31/90) Finland Merita Bank Ltd., Helsinki Central Share Register of Finland Cooperative (CSR) Helsinki Money Market Center, Ltd. (HMMC) Finnish Central Securities Depository Ltd. France Banque Paribas, Paris SICOVAM Agreement 4/2/93) Banque de France Germany Dresdner Bank AG, Frankfurt Deutscher Kassenverein AG (DKV) (Dresdner Bank Agreement 10/6/95) Ghana Barclays Bank of Ghana Ltd., Accra None (Barclays Bank Agreement 10/5/94) Greece Citibank, N.A., Athens Apothetirion Titlon A.E. (Citibank N.A., New York Agreement 7/16/81 New York Agreement Amendment 8/31/90) Hong Kong The Hongkong & Shanghai Banking Hong Kong Securities Clearing Co. Corp., Ltd., Hong Kong Ltd. (HKSCC); (Hongkong & Shanghai Banking Corp. Agt. 4/19/91 Central Clearing and Omnibus Supplement 12/29/93) Settlement System (CCASS) Hungary Citibank Budapest, Rt. Central Depository and Clearing (Citibank N.A., New York Agreement 7/16/81 House (Budapest) Ltd., New York Agreement Amendment 8/31/90 (KELER Ltd.) Citibank N.A. Subsidiary Amendment 10/19/95 Citibank N.A./Citibank Budapest Agmt. 1/24/92 (amended 6/23/92 and 9/29/92)) India Citibank, N.A., Mumbai National Securities Depository Limted (Citibank N.A., New York Agreement 7/16/81 New York Agreement Amendment 8/31/90 Citibank, Mumbai Amendment 11/17/93) Standard Chartered Bank, Mumbai (Standard Chartered Bank Agreement 2/18/92 SCB, Mumbai Annexure and Side Letter 7/18/94) Indonesia Citibank, N.A., Jakarta None (Citibank N.A., New York Agreement 7/16/81 New York Agreement Amendment 8/31/90) Ireland Allied Irish Banks, plc., Dublin Gilt Settlement Office (GSO) (Allied Irish Banks Agreement 1/10/89 Omnibus Amendment 4/8/94) CREST Israel Bank Hapoalim, B.M. Tel-Aviv Stock Exchange (Bank Hapoalim Agreement 8/27/92) (TASE) Clearinghouse Ltd. Italy Banca Commerciale Italiana, Milan Monte Titoli S.p.A. (Banca Commerciale Italiana Agreement 5/8/89 Agreement Amendment 10/8/93 Banca D'Italia Omnibus Amendment 12/14/93) Japan Sumitomo Trust & Banking Co., Tokyo Japan Securities Depository Center (Sumitomo Trust & Banking Agreement 7/17/92 (JASDEC) Omnibus Amendment 1/13/94); Bank of Japan Jordan Arab Bank, plc, Amman None (Arab Bank Agreement 4/5/95 Kenya Barclays Bank of Kenya Ltd., Nairobi None (Barclays Bank Agreement 10/5/94) Lebanon British Bank of the Middle East, Beirut Midclear Malaysia Hongkong Bank Malaysia Berhad Malaysian Central Depository Sdn. (Hongkong & Shanghai Banking Corp. Agt. 4/19/91 Bhd. (MCD) Omnibus Supplement 12/29/93 Malaysia Subsidiary Supplement 5/23/94) Bank Negara Malaysia Mauritius Hongkong & Shanghai Banking Corp., Ltd., Central Depository & Settlement Co., Port Louis Ltd. Mexico Citibank Mexico, S.A., Mexico City Institucion para el Deposito de (Citibank N.A., New York Agreement 7/16/81 Valores- S.D. INDEVAL, S.A. de New York Agreement Amendment 8/31/90 C.V. Citibank, Mexico, S.A. Amendment 2/7/95) Banco de Mexico Morocco Banque Marocaine du Commerce Exterieur, None Casablanca (BMCE Agreement 7/6/94) Namibia Standard Bank Namibia Ltd., Windhoek None Netherlands ABN-AMRO, Bank N. V., Amsterdam Nederlands Centraal Instituut voor Giraal Effektenverkeer BV (NECIGEF)/KAS Associatie N.V. (ABN-AMRO Agreement 12/19/88) (KAS) De Nederlandsche Bank (DNB)New New Zealand National Australia Bank Ltd., Melbourne Reserve Bank of New Zealand (RBNZ) (National Australia Bank Agreement 5/1/85 Agreement Amendment 2/13/92 New Zealand Securities Omnibus Amendment 11/22/93 Depository Limited (NZCDS) New Zealand Addendum 3/7/89) Norway Den norske Bank ASA, Oslo Verdipapirsentralen (VPS) (Den norske Bank Agreement 11/16/94) Oman British Bank of the Middle East, Muscat Muscat Securities Market Pakistan Standard Chartered Bank, Karachi None (Standard Chartered Bank Agreement 2/18/92) Peru Citibank, N.A., Lima Caja de Valores (CAVAL) (Citibank N.A., New York Agreement 7/16/81 New York Agreement Amendment 8/31/90) Philippines Citibank, N.A., Manila The Philippines Central Depository, (Citibank N.A., New York Agreement 7/16/81 Inc. New York Agreement Amendment 8/31/90) Poland Citibank Poland, S.A. National Depository of Securities (Citibank N.A., New York Agreement 7/16/81 New York Agreement Amendment 8/31/90 National Bank of Poland Citibank Subsidiary Amendment 10/19/95 Citibank, N.A./Citibank Poland S.A. Agt. 11/6/92) Bank Polska Kasa Opieki S.A., Warsaw Portugal Banco Espirito Santo e Comercial Central de Valores Mobiliaros de Lisboa, S.A., Lisbon (Interbolsa) (BESCL Agreement 4/26/89 Omnibus Amendment 2/23/94) Singapore Hongkong & Shanghai Banking Central Depository Pte Ltd. (CDP) Corp., Ltd., Singapore (Hongkong & Shanghai Banking Corp. Agt. 4/19/91 Omnibus Supplement 12/29/93) Slovak Republic Ceskoslovenska Obchodna Banka, S.A., Bratislava Stredisko Cennych Papeirov (SCP) (Ceskoslovenska Obchodna Banka Agmt. 10/12/94) National Bank of Slovakia South Africa First National Bank of Southern Africa Ltd., The Central Depository (Pty) Ltd. Johannesburg (CD) (First National Bank of Southern Africa Agmt. 8/7/91) South Korea Citibank, N.A., Seoul Korean Securities Depository (KSD) (Citibank N.A., New York Agreement 7/16/81 New York Agreement Amendment 8/31/90 Citibank, Seoul Agreement Supplement 10/28/94) Spain Banco Santander S.A., Madrid Servicio de Compensacion y (Banco Santander Agreement 12/14/88) Liquidacion de Valores (SCLV) Banco de Espana Sri Lanka Hongkong & Shanghai Banking Corp. Ltd., Central Depository System (Pvt) Colombo Limited (CDS) (Hongkong & Shanghai Banking Corp. Agt. 4/19/91 Omnibus Supplement 12/29/93) Swaziland Barclays Bank of Swaziland Ltd., Mbabne None (Barclays Bank Agreement 10/5/94) Sweden Skandinaviska Enskilda Banken, Stockholm Vardepappercentralen VPC AB (Skandinaviska Enskilda Banken Agreement 2/20/89 Omnibus Amendment 12/3/93) Switzerland Swiss Bank Corporation, Basel Schweizerische Effekten - Giro A.G. (Swiss Bank Corporation Agreement 3/1/94) (SEGA) Taiwan Standard Chartered Bank, Taipei Taiwan Securities Central Depository (Standard Chartered Bank Agmt. 2/18/92) Co. Ltd. (TSCD) Thailand Hongkong & Shanghai Banking Corp. Ltd., Thailand Securities Depository Bangkok Company (TSD) (Hongkong & Shanghai Banking Corp. Agmt. 4/19/91 Omnibus Amendment 12/29/93) Transnational Cedel Bank Societe Anonyme, Luxembourg Euroclear Clearance System Societe Cooperative, Belgium Turkey Citibank, N.A., Istanbul Takas ve Saklama Bankasi A.S. (TvS) (Citibank N.A., New York Agmt. 7/16/81 New York Agmt. Amendment 8/31/90) Central Bank of Turkey (CBT) United Kingdom Lloyds Bank PLC, London Central Gilts Office (CGO); CREST; Central Money Markets Office (CMO) Uruguay First National Bank of Boston, Montevideo None Venezuela Citibank, N.A., Caracas None (Citibank N.A., New York Agreement 7/16/81 New York Agreement Amendment 8/31/90) Zambia Stanbic Bank Zambia Ltd., Lusaka Lusaka Central Depository Zimbabwe Stanbic Bank Zimbabwe Ltd., Harare None Each of the Investment Companies Listed on Appendix "A" to the Custodian Agreement, on Behalf of Each of Their Respective Portfolios [Signature Lines Omitted] Exhibit 8(p) Form of Appendix "C" to the Custodian Agreement Between Each of the Investment Companies Listed on Appendix "A" Thereto And BROWN BROTHERS HARRIMAN & COMPANY Dated as of _______ PROCEDURES RELATING TO CUSTODIAN'S SECURITY INTEREST As security for any Overdrafts (as defined in the Custodian Agreement) of any Portfolio, the applicable Fund, on behalf of such Portfolio, shall pledge, assign and grant to the Custodian a security interest in Collateral (as hereinafter defined), under the terms, circumstances and conditions set forth in this Appendix "C". Section 1. Defined Terms. As used in this Appendix "C" the following terms shall have the following respective meanings: (a) "Business Day" shall mean any day that is not a Saturday, a Sunday or a day on which the Custodian is closed for business. (b) "Collateral" shall mean, with respect to any Portfolio, securities held by the Custodian on behalf of the Portfolio having a fair market value (as determined in accordance with the procedures set forth in the prospectus for the Portfolio) equal to the aggregate of all Overdraft Obligations of such Portfolio: (i) identified in any Pledge Certificate executed on behalf of such Portfolio; or (ii) designated by the Custodian for such Portfolio pursuant to Section 3 of this Appendix C. Such securities shall consist of marketable securities held by the Custodian on behalf of such Portfolio or, if no such marketable securities are held by the Custodian on behalf of such Portfolio, such other securities designated by the applicable Fund in the applicable Pledge Certificate or by the Custodian pursuant to Section 3 of this Appendix C. (c) "Overdraft Obligations" shall mean, with respect to any Portfolio, the amount of any outstanding Overdraft(s) provided by the Custodian to such Portfolio together with all accrued interest thereon. (d) "Pledge Certificate" shall mean a Pledge Certificate in the form attached to this Appendix "C" as Schedule 1 executed by a duly authorized officer of the applicable Fund and delivered by such Fund to the Custodian by facsimile transmission or in such other manner as the applicable Fund and the Custodian may agree in writing. (e) "Release Certificate" shall mean a Release Certificate in the form attached to this Appendix "C" as Schedule 2 executed by a duly authorized officer of the Custodian and delivered by the Custodian to the applicable Fund by facsimile transmission or in such other manner as such Fund and the Custodian may agree in writing. (f) "Written Notice" shall mean a written notice executed by a duly authorized officer of the party delivering the notice and delivered by facsimile transmission or in such other manner as the applicable Fund and the Custodian shall agree in writing. Section 2. Pledge of Collateral. To the extent that any Overdraft Obligations of a Portfolio are not satisfied by the close of business on the first Business Day following the Business Day on which the applicable Fund receives Written Notice requesting security for such Overdraft Obligation and stating the amount of such Overdraft Obligation, the applicable Fund, on behalf of such Portfolio, shall pledge, assign and grant to the Custodian a first priority security interest, by delivering to the Custodian, a Pledge Certificate executed by such Fund on behalf of such Portfolio describing the applicable Collateral. Such Written Notice may, in the discretion of the Custodian, be included within or accompany the Overdraft Notice relating to the applicable Overdraft Obligations. Section 3. Failure to Pledge Collateral. In the event that the applicable Fund shall fail: (a) to pay, on behalf of the applicable Portfolio, the Overdraft Obligation described in such Written Notice; (b) to deliver to the Custodian a Pledge Certificate pursuant to Section 2; or (c) to identify substitute securities pursuant to Section 6 upon the sale or maturity of any securities identified as Collateral, the Custodian may, by Written Notice to the applicable Fund specify Collateral which shall secure the applicable Overdraft Obligation. Such Fund, on behalf of any applicable Portfolio, hereby pledges, assigns and grants to the Custodian a first priority security interest in any and all Collateral specified in such Written Notice; provided that such pledge, assignment and grant of security shall be deemed to be effective only upon receipt by the applicable Fund of such Written Notice. Section 4. Delivery of Additional Collateral. If at any time the Custodian shall notify a Fund by Written Notice that the fair market value of the Collateral securing any Overdraft Obligation of one of such Fund's Portfolios is less than the amount of such Overdraft Obligation, such Fund, on behalf of the applicable Portfolio, shall deliver to the Custodian, within one (1) Business Day following the Fund's receipt of such Written Notice, an additional Pledge Certificate describing additional Collateral. If such Fund shall fail to deliver such additional Pledge Certificate, the Custodian may specify Collateral which shall secure the unsecured amount of the applicable Overdraft Obligation in accordance with Section 3 of this Appendix C. Section 5. Release of Collateral. Upon payment by a Fund, on behalf of one of its Portfolios, of any Overdraft Obligation secured by the pledge of Collateral, the Custodian shall promptly deliver to such Fund a Release Certificate pursuant to which the Custodian shall release Collateral from the lien under the applicable Pledge Certificate or Written Notice pursuant to Section 3 having a fair market value equal to the amount paid by such Fund on account of such Overdraft Obligation. In addition, if at any time a Fund shall notify the Custodian by Written Notice that such Fund desires that specified Collateral be released and: (a) that the fair market value of the Collateral securing any Overdraft Obligation shall exceed the amount of such Overdraft Obligation; or (b) that the Fund has delivered a Pledge Certificate substituting Collateral for such Overdraft Obligation, the Custodian shall deliver to such Fund, within one (1) Business Day following the Custodian's receipt of such Written Notice, a Release Certificate relating to the Collateral specified in such Written Notice. Section 6. Substitution of Collateral. A Fund may substitute securities for any securities identified as Collateral by delivery to the Custodian of a Pledge Certificate executed by such Fund on behalf of the applicable Portfolio, indicating the securities pledged as Collateral. Section 7. Security for Individual Portfolios' Overdraft Obligations. The pledge of Collateral by a Fund on behalf of any of its individual Portfolios shall secure only the Overdraft Obligations of such Portfolio. In no event shall the pledge of Collateral by one of a Fund's Portfolios be deemed or considered to be security for the Overdraft Obligations of any other Portfolio of such Fund or of any other Fund. Section 8. Custodian's Remedies. Upon (a) a Fund's failure to pay any Overdraft Obligation of an applicable Portfolio within thirty (30) days after receipt by such Fund of a Written Notice demanding security therefore, and (b) one (1) Business Day's prior Written Notice to such Fund, the Custodian may elect to enforce its security interest in the Collateral securing such Overdraft Obligation, by taking title to (at the then prevailing fair market value), or selling in a commercially reasonable manner, so much of the Collateral as shall be required to pay such Overdraft Obligation in full. Notwithstanding the provisions of any applicable law, including, without limitation, the Uniform Commercial Code, the remedy set forth in the preceding sentence shall be the only right or remedy to which the Custodian is entitled with respect to the pledge and security interest granted pursuant to any Pledge Certificate or Section 3. Without limiting the foregoing, the Custodian hereby waives and relinquishes all contractual and common law rights of set off to which it may now or hereafter be or become entitled with respect to any obligations of any Fund to the Custodian arising under this Appendix "C" to the Agreement. IN WITNESS WHEREOF, each of the parties has caused this Appendix to be executed in its name and behalf on the day and year first above written. Each of the Investment Companies Listed on BROWN BROTHERS HARRIMAN & Schedule "A" to the Custodian Agreement, on COMPANY Behalf of Each of Their Respective Portfolios [Signature lines omitted] SCHEDULE 1 TO APPENDIX "C" PLEDGE CERTIFICATE This Pledge Certificate is delivered pursuant to the Custodian Agreement dated as of [ ] (the "Agreement"), between [ ] (the "Fund") and [ ] (the "Custodian"). Capitalized terms used herein without definition shall have the respective meanings ascribed to them in the Agreement. Pursuant to [Section 2 or Section 4] of Appendix "C" attached to the Agreement, the Fund, on behalf of [ ] (the "Portfolio"), hereby pledges, assigns and grants to the Custodian a first priority security interest in the securities listed on Exhibit "A" attached to this Pledge Certificate (collectively, the "Pledged Securities"). Upon delivery of this Pledge Certificate, the Pledged Securities shall constitute Collateral, and shall secure all Overdraft Obligations of the Portfolio described in that certain Written Notice dated , 19 , delivered by the Custodian to the Fund. The pledge, assignment and grant of security in the Pledged Securities hereunder shall be subject in all respect to the terms and conditions of the Agreement, including, without limitation, Sections 7 and 8 of Appendix "C" attached thereto. IN WITNESS WHEREOF, the Fund has caused this Pledge Certificate to be executed in its name, on behalf of the Portfolio this day of 19 . [FUND], on Behalf of [Portfolio] By: ___________________ Name: ___________________ Title: ___________________ EXHIBIT "A" TO PLEDGE CERTIFICATE Type of Certificate/CUSIP Number of Issuer Security Numbers Shares SCHEDULE 2 TO APPENDIX "C" RELEASE CERTIFICATE This Release Certificate is delivered pursuant to the Custodian Agreement dated as of [ ] (the "Agreement"), between [ ] (the "Fund") and [ ] (the "Custodian"). Capitalized terms used herein without definition shall have the respective meanings ascribed to them in the Agreement. Pursuant to Section 5 of Appendix "C" attached to the Agreement, the Custodian hereby releases the securities listed on Exhibit "A" attached to this Release Certificate from the lien under the [Pledge Certificate dated ___________, 19 or the Written Notice delivered pursuant to Section 3 of Appendix "C" dated _________, 19 ]. IN WITNESS WHEREOF, the Custodian has caused this Release Certificate to be executed in its name and on its behalf this day of 19 . BROWN BROTHERS HARRIMAN & COMPANY By: _____________________ Name: _____________________ Title: _____________________ EXHIBIT "A" TO RELEASE CERTIFICATE Type of Certificate/CUSIP Number of Issuer Security Numbers Shares EX-99.B11 12 Exhibit 11(a) CONSENT OF INDEPENDENT ACCOUNTANTS We hereby consent to the incorporation by reference into the Prospectus and Statement of Additional Information in Post-Effective Amendment No. 64 to the Registration Statement on Form N-1A of Fidelity Select Portfolios, of our report dated April 13, 1998, on the financial statements and financial highlights included in the February 28, 1998 Annual Report to Shareholders of Fidelity Select Portfolios. We further consent to the references to our Firm under the headings "Financial Highlights" in the Prospectus and "Auditor" in the Statement of Additional Information. /s/Price Waterhouse LLP Price Waterhouse LLP Boston, Massachusetts April 24, 1998 EX-99.B11 13 Exhibit 11(b) CONSENT OF INDEPENDENT ACCOUNTANTS We hereby consent to the reference to our Firm under the heading "Auditor" in the Statement of Additional Information of Fidelity Select Portfolios: Medical Equipment and Systems Portfolio which is included in Post-Effective Amendment No. 64 to the Registration Statement on Form N-1A. /s/Price Waterhouse LLP Price Waterhouse LLP Boston, Massachusetts April 24, 1998 EX-27.1 14
6 0000320351 Fidelity Select Portfolios 1 Select-Energy 1,000 YEAR FEB-28-1998 FEB-28-1998 136,434 144,486 3,598 1 0 148,085 0 0 1,062 1,062 0 124,261 6,936 9,538 431 0 14,279 0 8,052 147,023 3,058 768 0 2,927 899 35,229 1,070 37,198 0 711 31,013 0 5,967 10,079 1,510 (56,241) 429 16,134 0 0 1,137 0 3,015 191,263 21.310 .110 3.930 .090 4.090 0 21.200 158 0 0 EX-27.2 15
6 0000320351 Fidelity Select Portfolios 2 Select-Precious Metals 1,000 YEAR FEB-28-1998 FEB-28-1998 188,738 160,801 8,378 46 0 169,225 332 0 2,933 3,265 0 265,453 16,149 16,611 (1,340) 0 (70,219) 0 (27,934) 165,960 2,412 505 0 3,429 (512) (66,607) (65,517) (132,636) 0 0 0 0 30,945 31,407 0 (159,626) 0 (2,037) 45 0 1,161 1 3,543 194,729 19.600 (.040) (9.420) 0 0 0 10.280 182 0 0 EX-27.3 16
6 0000320351 Fidelity Select Portfolios 3 Select-Technology 1,000 YEAR FEB-28-1998 FEB-28-1998 602,009 682,612 31,120 0 0 713,732 5,203 0 16,605 21,808 0 643,664 13,023 8,292 0 0 (32,341) 0 80,601 691,924 1,096 3,619 0 7,185 (2,470) 56,871 69,437 123,838 0 0 142,001 0 9,534 7,726 2,923 213,480 0 88,009 0 0 3,294 1 7,598 552,208 57.700 (.250) 11.290 0 15.690 0 53.130 138 0 0 EX-27.4 17
6 0000320351 Fidelity Select Portfolios 4 Select-Health Care 1,000 YEAR FEB-28-1998 FEB-28-1998 1,839,706 2,314,253 23,509 0 0 2,337,762 54,949 0 58,794 113,743 0 1,647,004 19,536 13,398 2,734 0 99,735 0 474,546 2,224,019 15,685 8,071 0 18,783 4,973 304,829 201,090 510,892 0 3,400 285,151 0 10,762 7,540 2,917 851,465 1,993 129,963 0 0 9,512 0 19,080 1,590,815 102.450 .330 31.940 .250 20.730 0 113.840 120 0 0 EX-27.5 18
6 0000320351 Fidelity Select Portfolios 5 Select-Utilities Growth 1,000 YEAR FEB-28-1998 FEB-28-1998 347,589 430,466 3,148 338 0 433,952 11,001 0 21,024 32,025 0 304,047 7,513 5,587 677 0 14,326 0 82,877 401,927 5,421 1,186 0 3,567 3,040 52,836 34,221 90,097 0 3,325 43,053 0 4,623 3,647 950 145,083 1,654 7,624 0 0 1,640 0 3,634 273,512 45.970 .540 14.830 .580 7.300 0 53.500 133 0 0 EX-27.6 19
6 0000320351 Fidelity Select Portfolios 6 Select-Financial Services 1,000 YEAR FEB-28-1998 FEB-28-1998 475,992 604,834 4,417 0 0 609,251 1,173 0 3,170 4,343 0 402,172 5,857 5,142 1,379 0 72,515 0 128,842 604,908 7,329 2,361 0 6,056 3,634 108,047 47,345 159,026 0 3,089 50,526 0 5,333 5,222 605 178,483 1,356 24,213 0 0 2,800 5 6,123 468,508 82.940 .700 30.650 .640 10.510 0 103.280 131 0 0 EX-27.7 20
6 0000320351 Fidelity Select Portfolios 7 Select-Leisure 1,000 YEAR FEB-28-1998 FEB-28-1998 221,792 257,601 2,757 0 0 260,358 0 0 3,159 3,159 0 209,635 4,128 2,052 0 0 11,755 0 35,809 257,199 511 812 0 1,976 (653) 27,572 29,427 56,346 0 0 19,896 0 3,894 2,192 375 159,065 377 7,619 0 0 853 0 2,048 142,093 47.830 (.250) 21.100 0 6.460 0 62.300 144 0 0 EX-27.8 21
6 0000320351 Fidelity Select Portfolios 8 Select-Defense and Aerospace 1,000 YEAR FEB-28-1998 FEB-28-1998 91,673 102,430 1,593 0 0 104,023 1,341 0 877 2,218 0 84,867 2,710 2,377 0 0 6,181 0 10,757 101,805 273 276 0 1,091 (542) 10,620 9,171 19,249 0 0 4,692 0 4,924 4,741 150 33,002 0 2,737 0 0 381 0 1,129 63,942 28.940 (.290) 11.840 0 3.040 0 37.570 177 0 0 EX-27.9 22
6 0000320351 Fidelity Select Portfolios 9 Select-Brokerage and Investment Management 1,000 YEAR FEB-28-1998 FEB-28-1998 523,473 671,828 24,307 0 0 696,135 16,779 0 3,289 20,068 0 512,598 16,996 17,811 676 0 14,435 0 148,358 676,067 5,422 2,013 0 5,382 2,053 24,238 128,112 154,403 0 1,439 10,010 0 26,765 27,901 322 217,280 162 639 0 0 2,494 3 5,552 416,385 25.760 .160 14.460 .090 .610 0 39.780 133 0 0 EX-27.10 23
6 0000320351 Fidelity Select Portfolios 10 Select-Chemicals 1,000 YEAR FEB-28-1998 FEB-28-1998 60,645 74,039 741 0 0 74,780 0 0 5,431 5,431 0 51,259 1,511 2,620 0 0 4,697 0 13,393 69,349 1,010 342 0 1,392 (40) 11,437 2,763 14,160 0 0 6,539 0 707 1,966 150 (42,060) 584 9,468 0 0 497 0 1,401 83,413 42.530 (.020) 7.880 0 4.540 0 45.900 168 0 0 EX-27.11 24
6 0000320351 Fidelity Select Portfolios 11 Select-Computer 1,000 YEAR FEB-28-1998 FEB-28-1998 736,040 832,617 8,381 1 0 840,999 0 0 55,534 55,534 0 727,677 19,119 12,524 0 0 (38,789) 0 96,577 785,465 697 3,748 0 8,821 (4,376) 89,255 22,246 107,125 0 0 167,332 0 17,046 15,240 4,789 181,178 0 73,703 0 0 3,921 0 9,241 657,986 48.250 (.320) 6.420 0 13.390 0 41.080 140 0 0 EX-27.12 25
6 0000320351 Fidelity Select Portfolios 12 Select-Electronics 1,000 YEAR FEB-28-1998 FEB-28-1998 2,374,339 2,633,473 146,134 573 0 2,780,180 55,537 0 55,893 111,430 0 2,565,018 76,270 45,957 0 0 (155,399) 0 259,131 2,668,750 2,695 13,783 0 26,568 (10,090) 286,757 113,930 390,597 0 0 569,434 0 75,773 63,315 17,855 924,733 0 183,500 0 0 14,147 3 28,067 2,374,587 37.950 (.170) 7.320 0 10.200 0 34.990 118 0 0 EX-27.13 26
6 0000320351 Fidelity Select Portfolios 13 Select-Food and Agriculture 1,000 YEAR FEB-28-1998 FEB-28-1998 223,904 262,300 3,920 0 0 266,220 5,054 0 10,599 15,653 0 192,819 5,133 5,017 368 0 18,984 0 38,396 250,567 4,381 1,063 0 3,649 1,795 33,787 14,340 49,922 0 2,133 27,599 0 4,610 5,169 675 27,144 1,615 30,116 0 0 1,473 0 3,677 246,984 44.530 .330 9.220 .370 4.950 0 48.810 149 0 0 EX-27.14 27
6 0000320351 Fidelity Select Portfolios 14 Select-Software and Computers 1,000 YEAR FEB-28-1998 FEB-28-1998 398,573 510,702 4,089 0 0 514,791 6,082 0 5,342 11,424 0 383,218 11,373 10,100 0 0 8,019 0 112,130 503,367 314 2,361 0 6,193 (3,518) 56,333 76,776 129,591 0 0 67,011 0 6,972 7,437 1,737 113,668 0 35,456 0 0 2,594 0 6,258 434,939 38.580 (.330) 12.570 0 6.610 0 44.260 144 0 0 EX-27.15 28
6 0000320351 Fidelity Select Portfolios 15 Select-Telecommunication 1,000 YEAR FEB-28-1998 FEB-28-1998 612,427 713,380 9,279 318 0 722,977 12,330 0 67,198 79,528 0 503,574 12,057 9,296 0 0 38,929 0 100,946 643,449 2,101 1,808 0 6,117 (2,208) 89,770 75,630 163,192 0 0 57,661 0 8,067 6,573 1,267 254,914 0 16,538 0 0 2,473 5 6,239 413,444 41.800 (.250) 18.200 0 6.440 0 53.370 151 0 0 EX-27.16 29
6 0000320351 Fidelity Select Portfolios 16 Select-Money Market 1,000 YEAR FEB-28-1998 FEB-28-1998 631,702 631,702 44,483 0 0 676,185 9,741 0 81,525 91,266 0 584,925 584,907 848,150 0 0 (6) 0 0 584,919 0 46,435 0 4,593 41,842 (6) 0 41,836 0 41,842 0 0 7,445,370 7,747,295 38,682 (263,249) 0 13 0 0 1,715 0 4,597 816,300 1.000 .051 0 .051 0 0 1.000 56 0 0 EX-27.17 30
6 0000320351 Fidelity Select Portfolios 17 Select-Air Transportation 1,000 YEAR FEB-28-1998 FEB-28-1998 168,268 183,356 2,539 428 0 186,323 1,644 0 3,494 5,138 0 161,980 6,745 2,029 0 0 4,118 0 15,087 181,185 346 295 0 1,170 (529) 13,099 17,664 30,234 0 0 3,545 0 13,783 9,221 154 145,228 0 (4,907) 0 (1,597) 378 6 1,209 62,668 17.720 (.190) 10.590 0 1.430 0 26.860 193 0 0 EX-27.18 31
6 0000320351 Fidelity Select Portfolios 18 Select-American Gold 1,000 YEAR FEB-28-1998 FEB-28-1998 248,353 210,962 12,031 0 0 222,993 1,703 0 1,622 3,325 0 304,961 14,477 15,178 (2,671) 0 (45,235) 0 (37,387) 219,668 1,628 628 0 4,135 (1,879) (42,332) (126,678) (170,889) 0 0 17,386 0 26,656 28,112 755 (208,435) (3,491) 17,274 0 0 1,664 1 4,346 279,513 28.210 (.130) (11.780) 0 1.290 0 15.170 155 0 0 EX-27.19 32
6 0000320351 Fidelity Select Portfolios 19 Select-Biotechnology 1,000 YEAR FEB-28-1998 FEB-28-1998 581,278 613,863 29,234 517 0 643,614 41,582 0 22,490 64,072 0 480,071 16,786 19,712 0 0 66,886 0 32,585 579,542 1,211 2,650 0 8,510 (4,649) 136,618 (59,882) 72,087 0 0 74,817 0 10,542 15,773 2,305 (95,360) 0 46,923 0 0 3,442 0 8,608 577,383 34.240 (.270) 5.200 0 4.710 0 34.520 149 0 0 EX-27.20 33
6 0000320351 Fidelity Select Portfolios 20 Select Energy Services 1,000 YEAR FEB-28-1998 FEB-28-1998 890,659 913,662 21,676 0 0 935,338 0 0 16,336 16,336 0 768,009 32,795 21,486 0 0 127,990 0 23,003 919,002 3,358 5,054 0 11,776 (3,364) 157,396 12,574 166,606 0 0 52,135 0 81,787 72,645 2,167 479,498 0 72,633 0 0 5,736 0 12,036 964,058 20.460 (.100) 9.360 0 1.850 0 28.020 125 0 0 EX-22.27 34 [ARTICLE] 6 [CIK] 0000320351 [NAME] Fidelity Select Portfolios [SERIES] [NUMBER] 22 [NAME] Select-Insurance [MULTIPLIER] 1,000
[PERIOD-TYPE] YEAR [FISCAL-YEAR-END] FEB-28-1998 [PERIOD-END] FEB-28-1998 [INVESTMENTS-AT-COST] 107,099 [INVESTMENTS-AT-VALUE] 126,968 [RECEIVABLES] 1,267 [ASSETS-OTHER] 0 [OTHER-ITEMS-ASSETS] 0 [TOTAL-ASSETS] 128,235 [PAYABLE-FOR-SECURITIES] 2,511 [SENIOR-LONG-TERM-DEBT] 0 [OTHER-ITEMS-LIABILITIES] 573 [TOTAL-LIABILITIES] 3,084 [SENIOR-EQUITY] 0 [PAID-IN-CAPITAL-COMMON] 87,211 [SHARES-COMMON-STOCK] 2,973 [SHARES-COMMON-PRIOR] 1,299 [ACCUMULATED-NII-CURRENT] 27 [OVERDISTRIBUTION-NII] 0 [ACCUMULATED-NET-GAINS] 18,043 [OVERDISTRIBUTION-GAINS] 0 [ACCUM-APPREC-OR-DEPREC] 19,870 [NET-ASSETS] 125,151 [DIVIDEND-INCOME] 1,168 [INTEREST-INCOME] 439 [OTHER-INCOME] 0 [EXPENSES-NET] 1,582 [NET-INVESTMENT-INCOME] 25 [REALIZED-GAINS-CURRENT] 23,085 [APPREC-INCREASE-CURRENT] 14,487 [NET-CHANGE-FROM-OPS] 37,597 [EQUALIZATION] 0 [DISTRIBUTIONS-OF-INCOME] 0 [DISTRIBUTIONS-OF-GAINS] 6,676 [DISTRIBUTIONS-OTHER] 0 [NUMBER-OF-SHARES-SOLD] 6,761 [NUMBER-OF-SHARES-REDEEMED] 5,273 [SHARES-REINVESTED] 186 [NET-CHANGE-IN-ASSETS] 82,784 [ACCUMULATED-NII-PRIOR] 6 [ACCUMULATED-GAINS-PRIOR] 4,125 [OVERDISTRIB-NII-PRIOR] 0 [OVERDIST-NET-GAINS-PRIOR] 0 [GROSS-ADVISORY-FEES] 657 [INTEREST-EXPENSE] 0 [GROSS-EXPENSE] 1,605 [AVERAGE-NET-ASSETS] 110,448 [PER-SHARE-NAV-BEGIN] 32.620 [PER-SHARE-NII] .010 [PER-SHARE-GAIN-APPREC] 12.930 [PER-SHARE-DIVIDEND] 0 [PER-SHARE-DISTRIBUTIONS] 3.540 [RETURNS-OF-CAPITAL] 0 [PER-SHARE-NAV-END] 42.100 [EXPENSE-RATIO] 145 [AVG-DEBT-OUTSTANDING] 0 [AVG-DEBT-PER-SHARE] 0
EX-27.23 35
6 0000320351 Fidelity Select Portfolios 23 Select-Retailing 1,000 YEAR FEB-28-1998 FEB-28-1998 170,697 192,046 1,928 0 0 193,974 56 0 1,057 1,113 0 168,882 3,854 1,785 0 0 2,630 0 21,349 192,861 669 687 0 2,375 (1,019) 6,177 16,638 21,796 0 0 3,631 0 17,451 15,477 95 133,512 0 5,434 0 0 911 40 2,488 152,877 33.250 (.270) 17.140 0 .510 0 50.040 163 0 0 EX-27.24 36
6 0000320351 Fidelity Select Portfolios 24 Select-Home Finance 1,000 YEAR FEB-28-1998 FEB-28-1998 1,252,878 1,661,722 35,546 527 0 1,697,795 18,293 0 10,892 29,185 0 1,176,528 31,269 25,583 4,200 0 79,037 0 408,845 1,668,610 21,374 3,416 0 15,863 8,927 177,748 165,003 351,678 0 7,531 153,895 0 24,323 22,121 3,484 491,782 4,942 85,912 0 0 7,972 3 16,178 1,334,725 46.000 .330 13.100 .290 5.840 0 53.360 121 0 0 EX-27.26 37
6 0000320351 Fidelity Select Portfolios 26 Select-Automotive 1,000 YEAR FEB-28-1998 FEB-28-1998 29,978 32,638 124 0 0 32,762 0 0 273 273 0 22,699 1,181 3,402 53 0 7,077 0 2,660 32,489 785 295 0 971 109 12,457 (2,221) 10,345 0 203 7,055 0 1,443 3,959 295 (53,858) 226 3,052 0 0 369 0 995 62,232 25.380 .050 5.210 .080 3.090 0 27.500 160 0 0 EX-27.27 38
6 0000320351 Fidelity Select Portfolios 27 Select-Multimedia 1,000 YEAR FEB-28-1998 FEB-28-1998 105,189 116,129 1,745 0 0 117,874 0 0 2,389 2,389 0 94,582 3,439 2,174 (2) 0 9,965 0 10,940 115,485 393 273 0 1,012 (346) 11,157 11,001 21,812 0 0 2,765 0 4,034 2,870 101 61,314 1,484 1,696 0 0 356 1 1,031 59,057 24.910 (.170) 10.300 0 1.520 0 33.580 175 0 0 EX-27.28 39
6 0000320351 Fidelity Select Portfolios 28 Select-Industrial Equipment 1,000 YEAR FEB-28-1998 FEB-28-1998 40,464 49,918 1,707 0 0 51,625 838 0 359 1,197 0 37,904 1,946 4,033 0 0 3,070 0 9,454 50,428 494 276 0 960 (190) 9,532 4,204 13,546 0 60 11,694 0 934 3,519 498 (52,455) 126 11,583 0 0 358 0 1,002 60,132 25.510 (.080) 5.730 .020 5.260 0 25.910 167 0 0 EX-27.30 40
6 0000320351 Fidelity Select Portfolios 30 Select-Medical Delivery 1,000 YEAR FEB-28-1998 FEB-28-1998 131,388 155,335 2,133 0 0 157,468 0 0 1,926 1,926 0 118,740 5,493 6,801 0 0 12,855 0 23,947 155,542 260 775 0 2,438 (1,403) 30,147 (1,649) 27,095 0 0 27,697 0 4,090 6,483 1,085 (36,842) 0 23,679 0 0 949 0 2,491 159,146 28.290 (.240) 5.450 0 5.230 0 28.320 157 0 0 EX-27.31 41
6 0000320351 Fidelity Select Portfolios 31 Select-Construction and Housing 1,000 YEAR FEB-28-1998 FEB-28-1998 51,857 57,495 1,927 33 0 59,455 645 0 1,326 1,971 0 50,153 2,243 1,390 0 0 1,693 0 5,638 57,484 211 134 0 630 (285) 3,768 4,728 8,211 0 23 4,420 0 4,140 3,511 223 26,903 68 8,692 0 0 156 0 659 25,963 22.000 (.250) 7.670 .020 3.870 0 25.630 250 0 0 EX-27.32 42
6 0000320351 Fidelity Select Portfolios 32 Select-Industrial Materials 1,000 YEAR FEB-28-1998 FEB-28-1998 20,740 22,932 224 0 0 23,156 258 0 316 574 0 19,557 903 2,403 0 0 833 0 2,192 22,582 340 117 0 582 (125) 3,018 (1,211) 1,682 0 37 4,305 0 605 2,286 181 (43,880) 68 4,897 0 0 178 0 594 29,945 27.660 (.110) 1.430 .030 4.000 0 25.000 198 0 0 EX-27.33 43
6 0000320351 Fidelity Select Portfolios 33 Select-Paper and Forest Products 1,000 YEAR FEB-28-1998 FEB-28-1998 30,105 31,374 13,399 0 0 44,773 2,713 0 10,676 13,389 0 29,148 1,385 901 31 0 936 0 1,269 31,384 298 101 0 521 (122) 2,538 1,291 3,707 0 32 1,593 0 3,117 2,709 76 11,901 0 938 46 0 145 0 528 24,210 21.630 (.120) 3.130 .040 2.070 0 22.660 218 0 0 EX-27.34 44
6 0000320351 Fidelity Select Portfolios 34 Select-Regional Banks 1,000 YEAR FEB-28-1998 FEB-28-1998 930,158 1,346,992 18,941 1 0 1,365,934 5,939 0 21,099 27,038 0 891,744 31,008 25,528 3,806 0 26,512 0 416,834 1,338,896 19,823 4,187 0 12,886 11,124 58,723 242,817 312,664 0 7,980 35,012 0 29,339 24,927 1,068 500,944 2,586 12,046 0 0 6,189 0 12,976 1,035,577 32.820 .400 11.410 .280 1.230 0 43.180 125 0 0 EX-27.36 45
6 0000320351 Fidelity Select Portfolios 36 Select-Transportation 1,000 YEAR FEB-28-1998 FEB-28-1998 59,415 66,723 223 0 0 66,946 128 0 2,536 2,664 0 51,571 2,269 400 0 0 5,403 0 7,308 64,282 549 298 0 883 (36) 10,299 7,061 17,324 0 0 4,986 0 6,004 4,318 183 55,391 0 562 0 0 341 1 904 57,352 22.230 (.020) 8.850 0 2.800 0 28.340 158 0 0 EX-27.37 46
6 0000320351 Fidelity Select Portfolios 37 Select-Environmental 1,000 YEAR FEB-28-1998 FEB-28-1998 23,235 24,900 428 0 0 25,328 0 0 145 145 0 23,873 1,530 2,242 0 0 (355) 0 1,665 25,183 264 119 0 617 (234) 491 2,817 3,074 0 0 0 0 1,184 1,896 0 (7,342) 0 (847) 0 (48) 165 1 620 27,800 14.500 (.130) 2.070 0 0 0 16.460 223 0 0 EX-27.38 47
6 0000320351 Fidelity Select Portfolios 38 Select-Consumer Products 1,000 YEAR FEB-28-1998 FEB-28-1998 65,826 72,042 547 288 0 72,877 462 0 263 725 0 62,900 2,642 890 0 0 3,036 0 6,216 72,152 190 94 0 523 (239) 5,218 4,912 9,891 0 0 1,877 0 3,008 1,331 75 53,760 0 (20) 0 0 161 0 532 26,528 20.660 (.220) 8.340 0 1.520 0 27.310 201 0 0 EX-27.39 48
6 0000320351 Fidelity Select Portfolios 39 Select-Developing Communication 1,000 YEAR FEB-28-1998 FEB-28-1998 206,032 232,604 13,235 2 0 245,841 5,815 0 1,670 7,485 0 212,551 11,837 11,200 0 0 (763) 0 26,568 238,356 420 1,323 0 3,696 (1,953) 43,721 15,847 57,615 0 0 39,987 0 8,749 10,392 2,281 17,996 0 (2,544) 0 0 1,421 1 3,834 238,742 19.680 (.180) 4.950 0 4.350 0 20.140 161 0 0 EX-27.40 49
6 0000320351 Fidelity Select Portfolios 40 Select-Natural Gas 1,000 YEAR FEB-28-1998 FEB-28-1998 56,069 58,630 1,823 0 0 60,453 0 0 587 587 0 57,216 4,529 6,523 298 0 (209) 0 2,561 59,866 761 398 0 1,466 (307) 1,120 5,429 6,242 0 0 2,086 0 8,021 10,190 175 (21,700) 169 4,804 0 0 489 0 1,497 82,337 12.500 (.050) 1.060 0 .360 0 13.220 182 0 0 EX-27.41 50
6 0000320351 Fidelity Select Portfolios 41 Select-Cyclical Industries 1,000 YEAR FEB-28-1998 FEB-28-1998 3,726 4,196 11 0 0 4,207 141 0 102 243 0 3,345 329 0 0 0 151 0 469 3,965 43 13 0 89 (33) 329 469 765 0 0 145 0 909 593 13 3,965 0 0 0 0 21 0 184 3,572 10.000 (.110) 2.590 0 .460 0 12.070 250 0 0 EX-27.42 51
6 0000320351 Fidelity Select Portfolios 42 Select-Natural Resources 1,000 YEAR FEB-28-1998 FEB-28-1998 7,278 7,044 1,167 0 0 8,211 6 0 685 691 0 7,671 719 0 (1) 0 84 0 (234) 7,520 74 30 0 159 (55) 327 (234) 38 0 0 189 0 1,783 1,083 19 7,520 0 0 0 0 38 0 243 6,441 10.000 (.090) .760 0 .260 0 10.460 250 0 0 EX-27.43 52
6 0000320351 Fidelity Select Portfolios 43 Select-Business Services and Outsourcing 1,000 YEAR FEB-28-1998 FEB-28-1998 16,242 16,868 2,055 20 0 18,943 2,954 0 74 3,028 0 15,275 1,461 0 0 0 14 0 626 15,915 4 5 0 11 (2) 17 626 641 0 0 0 0 1,471 10 0 15,915 0 0 0 0 3 0 35 7,101 10.000 0 .890 0 0 0 10.890 250 0 0 -----END PRIVACY-ENHANCED MESSAGE-----