-----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, GoU4sKvmlFz9gRSFHtrd7TvMgC2i+4eCzq0Q6jcYa8MU8O3V2T4LmpVO4/hUEZ1O uOCweN7Fkcq8vBkWXb55cg== 0000320351-99-000009.txt : 19990429 0000320351-99-000009.hdr.sgml : 19990429 ACCESSION NUMBER: 0000320351-99-000009 CONFORMED SUBMISSION TYPE: 485BPOS PUBLIC DOCUMENT COUNT: 48 FILED AS OF DATE: 19990428 EFFECTIVENESS DATE: 19990429 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: 99602645 FILING VALUES: FORM TYPE: 485BPOS SEC ACT: SEC FILE NUMBER: 811-03114 FILM NUMBER: 99602646 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. 66 [X] and REGISTRATION STATEMENT (No. 811-3114) UNDER THE INVESTMENT COMPANY ACT OF 1940 [X] Amendment No. 66 [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 29, 1999) 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. Like securities of all mutual funds, these securities have not been approved or disapproved by the Securities and Exchange Commission, and the Securities and Exchange Commission has not determined if this prospectus is accurate or complete. Any representation to the contrary is a criminal offense. FIDELITY SELECT PORTFOLIOS(REGISTERED TRADEMARK)
FUND TRADING NUMBER SYMBOL AIR TRANSPORTATION PORTFOLIO 034 FSAIX 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 FCYCF DEFENSE AND AEROSPACE PORTFOLIO 067 FSDAX DEVELOPING COMMUNICATIONS PORTFOLIO 518 FSDCX ELECTRONICS PORTFOLIO 008 FSELX ENERGY PORTFOLIO 060 FSENX ENERGY SERVICE PORTFOLIO 043 FSESX ENVIRONMENTAL SERVICES PORTFOLIO 516 FSLEX FINANCIAL SERVICES PORTFOLIO 066 FIDSX FOOD AND AGRICULTURE PORTFOLIO 009 FDFAX GOLD PORTFOLIO 041 FSAGX HEALTH CARE PORTFOLIO 063 FSPHX HOME FINANCE PORTFOLIO 098 FSVLX INDUSTRIAL EQUIPMENT PORTFOLIO 510 FSCGX INDUSTRIAL MATERIALS PORTFOLIO 509 FSDPX INSURANCE PORTFOLIO 045 FSPCX LEISURE PORTFOLIO 062 FDLSX MEDICAL DELIVERY PORTFOLIO 505 FSHCX MEDICAL EQUIPMENT AND SYSTEMS PORTFOLIO 354 FSMEX MULTIMEDIA PORTFOLIO 503 FBMPX NATURAL GAS PORTFOLIO 513 FSNGX NATURAL RESOURCES PORTFOLIO 514 FNATF 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 FSLXX
PROSPECTUS APRIL 29, 1999 (FIDELITY_LOGO_GRAPHIC)(REGISTERED TRADEMARK) 82 DEVONSHIRE STREET, BOSTON, MA 02109 CONTENTS FUND SUMMARY 3 INVESTMENT SUMMARY 17 PERFORMANCE 42 FEE TABLE FUND BASICS 60 INVESTMENT DETAILS 73 VALUING SHARES SHAREHOLDER INFORMATION 73 BUYING AND SELLING SHARES 81 EXCHANGING SHARES 81 ACCOUNT FEATURES AND POLICIES 84 DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS 84 TAX CONSEQUENCES FUND SERVICES 85 FUND MANAGEMENT 88 FUND DISTRIBUTION APPENDIX 89 FINANCIAL HIGHLIGHTS FUND SUMMARY INVESTMENT SUMMARY THE STOCK FUNDS INVESTMENT OBJECTIVE AIR TRANSPORTATION PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES Fidelity Management & Research Company (FMR)'s principal investment strategies include: (small solid bullet) Investing primarily in common stocks. (small solid bullet) Investing at least 80% of assets in securities of companies principally engaged in the regional, national, and international movement of passengers, mail, and freight via aircraft. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently than the U.S. market. (small solid bullet) AIR TRANSPORTATION INDUSTRY CONCENTRATION. The air transportation industry can be significantly affected by competition within the industry, domestic and foreign economies, government regulation, and the price of fuel. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently than the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. INVESTMENT OBJECTIVE AUTOMOTIVE PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Investing primarily in common stocks. (small solid bullet) Investing at least 80% of assets in securities of companies principally engaged in the manufacture, marketing or sale of automobiles, trucks, specialty vehicles, parts, tires, and related services. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently than the U.S. market. (small solid bullet) AUTOMOTIVE INDUSTRY CONCENTRATION. The automotive industry is highly cyclical and can be significantly affected by labor relations and fluctuating component prices. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently than the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. INVESTMENT OBJECTIVE BIOTECHNOLOGY PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Investing primarily in common stocks. (small solid bullet) Investing at least 80% of assets in securities of companies principally engaged in the research, development, and manufacture of various biotechnological products, services, and processes. (small solid bullet) Potentially investing in securities of companies that distribute biotechnological and biomedical products and companies that benefit significantly from scientific and technological advances in biotechnology. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently than the U.S. market. (small solid bullet) BIOTECHNOLOGY INDUSTRY CONCENTRATION. The biotechnology industry can be significantly affected by patent considerations, intense competition, rapid technological change and obsolescence, and government regulation. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently than the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. INVESTMENT OBJECTIVE BROKERAGE AND INVESTMENT MANAGEMENT PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Investing primarily in common stocks. (small solid bullet) Investing at least 80% of assets in securities of companies principally engaged in stock brokerage, commodity brokerage, investment banking, tax-advantaged investment or investment sales, investment management, or related investment advisory services. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently than the U.S. market. (small solid bullet) BROKERAGE AND INVESTMENT MANAGEMENT INDUSTRY CONCENTRATION. The brokerage and investment management industry can be significantly affected by stock and bond market activity, changes in regulations, brokerage commission structure, and a competitive environment combined with the high operating leverage inherent in companies in this industry. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently than the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. INVESTMENT OBJECTIVE BUSINESS SERVICES AND OUTSOURCING PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Investing primarily in common stocks. (small solid bullet) Investing at least 80% of assets in securities of companies principally engaged in providing business-related services to companies and other organizations. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently than the U.S. market. (small solid bullet) BUSINESS SERVICES AND OUTSOURCING INDUSTRY CONCENTRATION. The business services and outsourcing industry is subject to continued demand for such services and can be significantly affected by competitive pressures, such as technological developments, fixed-rate pricing, and the ability to attract and retain skilled employees. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently than the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. INVESTMENT OBJECTIVE CHEMICALS PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Investing primarily in common stocks. (small solid bullet) Investing at least 80% of assets in securities of companies principally engaged in the research, development, manufacture or marketing of products or services related to the chemical process industries. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently than the U.S. market. (small solid bullet) CHEMICAL INDUSTRY CONCENTRATION. The chemical industry can be significantly affected by intense competition, product obsolescence, and government regulation and can be subject to risks associated with the production, handling and disposal of hazardous components. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently than the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. INVESTMENT OBJECTIVE COMPUTERS PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Investing primarily in common stocks. (small solid bullet) Investing at least 80% of assets in securities of companies principally engaged in research, design, development, manufacture or distribution of products, processes or services that relate to currently available or experimental hardware technology within the computer industry. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently than the U.S. market. (small solid bullet) COMPUTER INDUSTRY CONCENTRATION. The computer industry can be significantly affected by competitive pressures, changing domestic and international demand, research and development costs, and product obsolescence. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently than the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. INVESTMENT OBJECTIVE CONSTRUCTION AND HOUSING PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Investing primarily in common stocks. (small solid bullet) Investing at least 80% of assets in securities of companies principally engaged in the design and construction of residential, commercial, industrial and public works facilities, as well as companies engaged in the manufacture, supply, distribution or sale of products or services to these construction industries. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently than the U.S. market. (small solid bullet) CONSTRUCTION AND HOUSING INDUSTRY CONCENTRATION. The construction and housing industry can be significantly affected by changes in government spending, interest rates, consumer confidence and spending, taxation, demographic patterns, housing starts and the level of new and existing home sales. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently than the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. INVESTMENT OBJECTIVE CONSUMER INDUSTRIES PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Investing primarily in common stocks. (small solid bullet) Investing at least 80% of assets in securities of companies principally engaged in the manufacture and distribution of goods to consumers both domestically and internationally. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently than the U.S. market. (small solid bullet) CONSUMER INDUSTRY CONCENTRATION. The consumer industries can be significantly affected by the performance of the overall economy, interest rates, competition, consumer confidence and spending, and changes in demographics and consumer tastes. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently than the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. INVESTMENT OBJECTIVE CYCLICAL INDUSTRIES PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Investing primarily in common stocks. (small solid bullet) Investing at least 80% of assets in securities of companies principally engaged in the research, development, manufacture, distribution, supply, or sale of materials, equipment, products or services related to cyclical industries. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently than the U.S. market. (small solid bullet) CYCLICAL INDUSTRY CONCENTRATION. Cyclical industries can be significantly affected by general economic trends, changes in consumer sentiment and spending, commodity prices, legislation, government regulation and spending, import controls, and worldwide competition, and can be subject to liability for environmental damage, depletion of resources, and mandated expenditures for safety and pollution control. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently than the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. INVESTMENT OBJECTIVE DEFENSE AND AEROSPACE PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Investing primarily in common stocks. (small solid bullet) Investing at least 80% of assets in securities of companies principally engaged in the research, manufacture or sale of products or services related to the defense or aerospace industries. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently than the U.S. market. (small solid bullet) DEFENSE AND AEROSPACE INDUSTRY CONCENTRATION. The defense and aerospace industry can be significantly affected by government defense and aerospace regulation and spending policies. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently than the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. INVESTMENT OBJECTIVE DEVELOPING COMMUNICATIONS PORTFOLIO seeks capital appreciation. The fund is subject to the following principal investment risks: PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Investing primarily in common stocks. (small solid bullet) Investing at least 80% of assets in securities of companies principally engaged in the development, manufacture or sale of emerging communications services or equipment. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently than the U.S. market. (small solid bullet) DEVELOPING COMMUNICATIONS INDUSTRY CONCENTRATION. The developing communications industry can be significantly affected by failure to obtain, or delays in obtaining, financing or regulatory approval, intense competition, product compatibility, consumer preferences, and rapid obsolescence. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently than the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. INVESTMENT OBJECTIVE ELECTRONICS PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Investing primarily in common stocks. (small solid bullet) Investing at least 80% of assets in securities of companies principally engaged in the design, manufacture, or sale of electronic components; equipment vendors to electronic component manufacturers; electronic component distributors; and electronic instruments and electronic systems vendors. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently than the U.S. market. (small solid bullet) ELECTRONICS INDUSTRY CONCENTRATION. The electronics industry can be significantly affected by rapid obsolescence, intense competition and global demand. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently than the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. INVESTMENT OBJECTIVE ENERGY PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Investing primarily in common stocks. (small solid bullet) Investing at least 80% of assets in securities of companies principally engaged in the energy field, including the conventional areas of oil, gas, electricity and coal, and newer sources of energy such as nuclear, geothermal, oil shale, and solar power. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently than the U.S. market. (small solid bullet) ENERGY INDUSTRY CONCENTRATION. The energy industry can be significantly affected by fluctuations in price and supply of energy fuels, energy conservation, the success of exploration projects, and tax and other government regulations. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently than the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. INVESTMENT OBJECTIVE ENERGY SERVICE PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Investing primarily in common stocks. (small solid bullet) Investing at least 80% of assets in securities of companies principally engaged in the energy service field, including those that provide services and equipment to the conventional areas of oil, gas, electricity and coal, and newer sources of energy such as nuclear, geothermal, oil shale, and solar power. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently than the U.S. market. (small solid bullet) ENERGY SERVICE INDUSTRY CONCENTRATION. The energy service industry can be significantly affected by the supply of and demand for specific products or services, the supply of and demand for oil and gas, the price of oil and gas, exploration and production spending, government regulation, world events, and economic conditions. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently than the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. INVESTMENT OBJECTIVE ENVIRONMENTAL SERVICES PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Investing primarily in common stocks. (small solid bullet) Investing at least 80% of assets in securities of companies principally engaged in the research, development, manufacture or distribution of products, processes or services related to waste management or pollution control. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently than the U.S. market. (small solid bullet) ENVIRONMENTAL SERVICES INDUSTRY CONCENTRATION. The environmental services industry can be significantly affected by intense competition and legislation resulting in more strict government regulations and enforcement policies and specific expenditures for cleanup efforts, and can be subject to risks associated with hazardous materials. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently than the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. INVESTMENT OBJECTIVE FINANCIAL SERVICES PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Investing primarily in common stocks. (small solid bullet) Investing at least 80% of assets in securities of companies principally engaged in providing financial services to consumers and industry. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently than the U.S. market. (small solid bullet) FINANCIAL SERVICES INDUSTRY CONCENTRATION. The financial services industries are subject to extensive government regulation and relatively rapid change due to increasingly blurred distinctions between service segments, and can be significantly affected by availability and cost of capital funds, changes in interest rates, and price competition. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently than the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. INVESTMENT OBJECTIVE FOOD AND AGRICULTURE PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Investing primarily in common stocks. (small solid bullet) Investing at least 80% of assets in securities of companies principally engaged in the manufacture, sale, or distribution of food and beverage products, agricultural products, and products related to the development of new food technologies. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently than the U.S. market. (small solid bullet) FOOD AND AGRICULTURE INDUSTRY CONCENTRATION. The food and agriculture industry can be significantly affected by demographic and product trends, food fads, marketing campaigns, environmental factors and government regulation. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently than the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. INVESTMENT OBJECTIVE GOLD PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Investing primarily in common stocks and in certain precious metals. (small solid bullet) Investing primarily in companies engaged in exploration, mining, processing, or dealing in gold, or to a lesser degree, in silver, platinum, diamonds, or other precious metals and minerals. (small solid bullet) Investing at least 80% of assets in securities of companies principally engaged in gold-related activities, and in gold bullion or coins. (small solid bullet) Potentially investing in other precious metals, securities indexed to the price of precious metals, and securities of companies that manufacture and distribute precious metal and minerals products (such as jewelry, watches, and metal foil and leaf) and companies that invest in other companies engaged in gold and other precious metal and mineral-related activities. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently than the U.S. market. (small solid bullet) GOLD INDUSTRY CONCENTRATION. The gold industry can be significantly affected by international monetary and political developments such as currency devaluations or revaluations, central bank movements, economic and social conditions within a country, trade imbalances, or trade or currency restrictions between countries. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently than the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. INVESTMENT OBJECTIVE HEALTH CARE PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Investing primarily in common stocks. (small solid bullet) Investing at least 80% of assets in securities of companies principally engaged in the design, manufacture, or sale of products or services used for or in connection with health care or medicine. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently than the U.S. market. (small solid bullet) HEALTH CARE INDUSTRY CONCENTRATION. The health care industries are subject to government regulation and government approval of products and services, which could have a significant effect on price and availability, and can be significantly affected by rapid obsolescence. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently than the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. INVESTMENT OBJECTIVE HOME FINANCE PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Investing primarily in common stocks. (small solid bullet) Investing at least 80% of assets in securities of companies principally engaged in investing in real estate, usually through mortgages and other consumer-related loans. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently than the U.S. market. (small solid bullet) HOME FINANCE INDUSTRY CONCENTRATION. The home finance industry can be significantly affected by regulatory changes, interest rate movements, home mortgage demand, refinancing activity, and residential delinquency trends. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently than the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. INVESTMENT OBJECTIVE INDUSTRIAL EQUIPMENT PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Investing primarily in common stocks. (small solid bullet) Investing at least 80% of assets in securities of companies principally engaged in the manufacture, distribution, or service of products and equipment for the industrial sector, including integrated producers of capital equipment, parts suppliers, and subcontractors. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently than the U.S. market. (small solid bullet) INDUSTRIAL EQUIPMENT INDUSTRY CONCENTRATION. The industrial equipment industry can be significantly affected by overall capital spending levels, economic cycles, technical obsolescence, labor relations, and government regulations. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently than the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. INVESTMENT OBJECTIVE INDUSTRIAL MATERIALS PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Investing primarily in common stocks. (small solid bullet) Investing at least 80% of assets in securities of companies principally engaged in the manufacture, mining, processing, or distribution of raw materials and intermediate goods used in the industrial sector. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently than the U.S. market. (small solid bullet) INDUSTRIAL MATERIALS INDUSTRY CONCENTRATION. The industrial materials industry can be significantly affected by the level and volatility of commodity prices, the exchange value of the dollar, import controls, worldwide competition, liability for environmental damage, depletion of resources, and mandated expenditures for safety and pollution control. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently than the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. INVESTMENT OBJECTIVE INSURANCE PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Investing primarily in common stocks. (small solid bullet) Investing at least 80% of assets in securities of companies principally engaged in underwriting, reinsuring, selling, distributing, or placing of property and casualty, life, or health insurance. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently than the U.S. market. (small solid bullet) INSURANCE INDUSTRY CONCENTRATION. The insurance industry is subject to extensive government regulation and can be significantly affected by interest rates, general economic conditions, and price and marketing competition. Different segments of the industry can be significantly affected by natural disasters, mortality and morbidity rates, and environmental clean-up. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently than the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. INVESTMENT OBJECTIVE LEISURE PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Investing primarily in common stocks. (small solid bullet) Investing at least 80% of assets in securities of companies principally engaged in the design, production, or distribution of goods or services in the leisure industries. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently than the U.S. market. (small solid bullet) LEISURE INDUSTRY CONCENTRATION. The leisure industry can be significantly affected by changing consumer tastes, intense competition, technological developments and government regulation. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently than the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. INVESTMENT OBJECTIVE MEDICAL DELIVERY PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Investing primarily in common stocks. (small solid bullet) Investing at least 80% of assets in securities of companies principally engaged in the ownership or management of hospitals, nursing homes, health maintenance organizations, and other companies specializing in the delivery of health care services. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently than the U.S. market. (small solid bullet) MEDICAL DELIVERY INDUSTRY CONCENTRATION. The medical delivery industry is subject to extensive government regulation and can be significantly affected by government reimbursement for medical expenses, rising costs of medical products and services, a shift away from traditional health insurance, and an increased emphasis on outpatient services. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently than the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. INVESTMENT OBJECTIVE MEDICAL EQUIPMENT AND SYSTEMS PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Investing primarily in common stocks. (small solid bullet) Investing at least 80% of assets in securities of companies principally engaged in research, development, manufacture, distribution, supply or sale of medical equipment and devices and related technologies. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently than the U.S. market. (small solid bullet) MEDICAL EQUIPMENT AND SYSTEMS INDUSTRY CONCENTRATION. The medical equipment and systems industry can be significantly affected by patent considerations, rapid technological change and obsolescence, government regulation, and government reimbursement for medical expenses. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently than the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. INVESTMENT OBJECTIVE MULTIMEDIA PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Investing primarily in common stocks. (small solid bullet) Investing at least 80% of assets in securities of companies principally engaged in the development, production, sale, and distribution of goods or services used in the broadcast and media industries. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently than the U.S. market. (small solid bullet) MULTIMEDIA INDUSTRY CONCENTRATION. The multimedia industry can be significantly affected by the federal deregulation of cable and broadcasting, competitive pressures and government regulation. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently than the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. INVESTMENT OBJECTIVE NATURAL GAS PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Investing primarily in common stocks. (small solid bullet) Investing at least 80% of assets in securities of companies principally engaged in the production, transmission, and distribution of natural gas, and involved in the exploration of potential natural gas sources, as well as those companies that provide services and equipment to natural gas producers, refineries, cogeneration facilities, converters, and distributors. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently than the U.S. market. (small solid bullet) NATURAL GAS INDUSTRY CONCENTRATION. The natural gas industry is subject to changes in price and supply of energy sources and can be significantly affected by events relating to international politics, energy conservation, the success of energy source exploration projects, and tax and other government regulations. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently than the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. INVESTMENT OBJECTIVE NATURAL RESOURCES PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Investing primarily in common stocks and in certain precious metals. (small solid bullet) Investing primarily in companies that own or develop natural resources, or supply goods and services to such companies. (small solid bullet) Investing at least 80% of assets in securities of companies principally engaged in owning or developing natural resources, or supplying goods and services to such companies, and in precious metals. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently than the U.S. market. (small solid bullet) NATURAL RESOURCES INDUSTRY CONCENTRATION. The natural resources industries can be significantly affected by events relating to international political and economic developments, energy conservation, the success of exploration projects, and tax and other government regulations. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently than the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. INVESTMENT OBJECTIVE PAPER AND FOREST PRODUCTS PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Investing primarily in common stocks. (small solid bullet) Investing at least 80% of assets in securities of companies principally engaged in the manufacture, research, sale, or distribution of paper products, packaging products, building materials, and other products related to the paper and forest products industry. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently than the U.S. market. (small solid bullet) PAPER AND FOREST PRODUCTS INDUSTRY CONCENTRATION. The paper and forest products industry can be significantly affected by the health of the economy, worldwide production capacity, and interest rates. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently than the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. INVESTMENT OBJECTIVE PRECIOUS METALS AND MINERALS PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Investing primarily in common stocks and in certain precious metals. (small solid bullet) Investing primarily in companies engaged in exploration, mining, processing, or dealing in gold, silver, platinum, diamonds, or other precious metals and minerals. (small solid bullet) Investing at least 80% of assets in securities of companies principally engaged in exploration, mining, processing, or dealing in gold, silver, platinum, diamonds, or other precious metals and minerals, and in precious metals. (small solid bullet) Potentially investing in securities of companies that invest in other companies engaged in gold and other precious metal and mineral-related activities. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently than the U.S. market. (small solid bullet) PRECIOUS METALS AND MINERALS INDUSTRY CONCENTRATION. The precious metals and minerals industry can be significantly affected by international political and monetary developments such as currency devaluations or revaluations, economic and social conditions within a country, trade imbalances, or trade or currency restrictions between countries. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently than the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. INVESTMENT OBJECTIVE REGIONAL BANKS PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Investing primarily in common stocks. (small solid bullet) Investing at least 80% of assets in securities of companies principally 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). (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently than the U.S. market. (small solid bullet) REGIONAL BANKS INDUSTRY CONCENTRATION. The regional banking industry can be significantly affected by legislation that would reduce the separation between commercial and investment banking businesses and could change capitalization requirements and the savings and loan industry and increase competition, and by changes in general economic conditions and interest rates. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently than the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. INVESTMENT OBJECTIVE RETAILING PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Investing primarily in common stocks (small solid bullet) Investing at least 80% of assets in securities of companies principally engaged in merchandising finished goods and services primarily to individual consumers. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently than the U.S. market. (small solid bullet) RETAIL INDUSTRY CONCENTRATION. The retail industry can be significantly affected by consumer confidence and spending, intense competition, and changing consumer tastes. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently than the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. INVESTMENT OBJECTIVE SOFTWARE AND COMPUTER SERVICES PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Investing primarily in common stocks. (small solid bullet) Investing at least 80% of assets in securities of companies principally engaged in research, design, production or distribution of products or processes that relate to software or information-based services. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently than the U.S. market. (small solid bullet) SOFTWARE AND COMPUTER SERVICES INDUSTRY CONCENTRATION. The software and computer services industry can be significantly affected by competitive pressures, which can lead to aggressive pricing and slower selling cycles. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently than the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. INVESTMENT OBJECTIVE TECHNOLOGY PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include (small solid bullet) Investing primarily in common stocks. (small solid bullet) Investing at least 80% of assets in securities of companies principally engaged in offering, using or developing products, processes or services that will provide or will benefit significantly from technological advances and improvements. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently than the U.S. market. (small solid bullet) TECHNOLOGY INDUSTRY CONCENTRATION. The technology industries can be significantly affected by obsolescence of existing technology, short product cycles, falling prices and profits, and competition from new market entrants. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently than the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. INVESTMENT OBJECTIVE TELECOMMUNICATIONS PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Investing primarily in common stocks. (small solid bullet) Investing at least 80% of assets in securities of companies principally engaged in the development, manufacture, or sale of communications services or communications equipment. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently than the U.S. market. (small solid bullet) TELECOMMUNICATIONS INDUSTRY CONCENTRATION. The telecommunications industry is subject to government regulation of rates of return and services that may be offered and can be significantly affected by intense competition. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently than the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. INVESTMENT OBJECTIVE TRANSPORTATION PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Investing primarily in common stocks. (small solid bullet) Investing at least 80% of assets in securities of companies principally engaged in providing transportation services or companies principally engaged in the design, manufacture, distribution, or sale of transportation equipment. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently than the U.S. market. (small solid bullet) TRANSPORTATION INDUSTRY CONCENTRATION. The transportation industry can be significantly affected by changes in the economy, fuel prices, labor relations, insurance costs and government regulation. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently than the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. INVESTMENT OBJECTIVE UTILITIES GROWTH PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Investing primarily in common stocks. (small solid bullet) Investing at least 80% of assets in securities of companies principally engaged in the public utilities industry and companies deriving a majority of their revenues from their public utility operations. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently than the U.S. market. (small solid bullet) UTILITIES INDUSTRY CONCENTRATION. The utilities industries can be significantly affected by government regulation, financing difficulties, supply and demand of services or fuel, and natural resource conservation. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently than the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. In addition, each stock fund (except Financial Services, Home Finance and Regional Banks) is considered non-diversified and can invest a greater portion of assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single issuer could cause greater fluctuations in share price than would occur in a more diversified fund. An investment in a stock fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. When you sell your shares of a stock fund, they could be worth more or less than what you paid for them. THE MONEY MARKET FUND INVESTMENT OBJECTIVE MONEY MARKET PORTFOLIO seeks to provide high current income, consistent with preservation of capital and liquidity. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Investing in U.S. dollar-denominated money market securities, including U.S. Government securities and repurchase agreements, and entering into reverse repurchase agreements. (small solid bullet) Investing at least 80% of assets in money market instruments. (small solid bullet) Investing more than 25% of total assets in the financial services industry. (small solid bullet) Investing in compliance with industry-standard requirements for money market funds for the quality, maturity and diversification of investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) INTEREST RATE CHANGES. Interest rate increases can cause the price of a money market security to decrease. (small solid bullet) FOREIGN EXPOSURE. Entities located in foreign countries can be affected by adverse political, regulatory, market or economic developments in those countries. (small solid bullet) FINANCIAL SERVICES EXPOSURE. Changes in government regulation and interest rates a nd economic downturns can have a significant negative affect on issuers in the financial services sector. (small solid bullet) ISSUER-SPECIFIC CHANGES. A decline in the credit quality of an issuer or the provider of credit support or a maturity-shortening structure for a security can cause the price of a money market security to decrease. An investment in the fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund. PERFORMANCE The following information illustrates the changes in the funds' performance from year to year and compares the stock funds' performance to the performance of a market index and an additional index over various periods of time. Returns are based on past results and are not an indication of future performance. Because Business Services and Outsourcing and Medical Equipment and Systems were new when this prospectus was printed, their performance history is not included. Performance history will be available for Business Services and Outsourcing and Medical Equipment and Systems after each fund has been in operation for one calendar year. YEAR-BY-YEAR RETURNS The returns in the chart do not include the effect of each fund's front-end sales charge. If the effect of the sales charge was reflected, returns would be lower than those shown.
AIR TRANSPORTATION Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 26.33% -18.18% 37.06% 6.57% 30.89% -21.74% 59.54% 1.25% 31.14% 6.42%
Percentage (%) Row: 1, Col: 1, Value: 26.33 Row: 2, Col: 1, Value: -18.18 Row: 3, Col: 1, Value: 37.06 Row: 4, Col: 1, Value: 6.57 Row: 5, Col: 1, Value: 30.89 Row: 6, Col: 1, Value: -21.74 Row: 7, Col: 1, Value: 59.54 Row: 8, Col: 1, Value: 1.25 Row: 9, Col: 1, Value: 31.14 Row: 10, Col: 1, Value: 6.42 DURING THE PERIODS SHOWN IN THE CHART FOR AIR TRANSPORTATION, THE HIGHEST RETURN FOR A QUARTER WAS 23.90 % (QUARTER ENDING MARCH 31, 1991 ) AND THE LOWEST RETURN FOR A QUARTER WAS - -26.72 % (QUARTER ENDING SEPTEMBER 30, 1998 ). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR AIR TRANSPORTATION WAS 14.8 2%.
AUTOMOTIVE Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 4.10% -6.72% 37.33% 41.61% 35.38% -12.75% 13.43% 16.07% 16.78% 4.94%
Percentage (%) Row: 1, Col: 1, Value: 4.1 Row: 2, Col: 1, Value: -6.72 Row: 3, Col: 1, Value: 37.33 Row: 4, Col: 1, Value: 41.61 Row: 5, Col: 1, Value: 35.38 Row: 6, Col: 1, Value: -12.75 Row: 7, Col: 1, Value: 13.43 Row: 8, Col: 1, Value: 16.07 Row: 9, Col: 1, Value: 16.78 Row: 10, Col: 1, Value: 4.94 DURING THE PERIODS SHOWN IN THE CHART FOR AUTOMOTIVE, THE HIGHEST RETURN FOR A QUARTER WAS 24.59 % (QUARTER ENDING MARCH 31, 1992 ) AND THE LOWEST RETURN FOR A QUARTER WAS -22.31 % (QUARTER ENDING SEPTEMBER 30, 1990 ). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR AUTOMOTIVE WAS -7.29% .
BIOTECHNOLOGY Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 43.93% 44.35% 99.05% -10.34% 0.70% -18.18% 49.10% 5.61% 15.27% 29.72%
Percentage (%) Row: 1, Col: 1, Value: 43.93 Row: 2, Col: 1, Value: 44.34999999999999 Row: 3, Col: 1, Value: 99.05 Row: 4, Col: 1, Value: -10.34 Row: 5, Col: 1, Value: 0.7000000000000001 Row: 6, Col: 1, Value: -18.18 Row: 7, Col: 1, Value: 49.1 Row: 8, Col: 1, Value: 5.609999999999999 Row: 9, Col: 1, Value: 15.27 Row: 10, Col: 1, Value: 29.72 DURING THE PERIODS SHOWN IN THE CHART FOR BIOTECHNOLOGY, THE HIGHEST RETURN FOR A QUARTER WAS 40.42 % (QUARTER ENDING MARCH 31, 1991 ) AND THE LOWEST RETURN FOR A QUARTER WAS -19.25 % (QUARTER ENDING MARCH 31, 1993 ). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR BIOTECHNOLOGY WAS 9.08 %.
BROKERAGE AND INVESTMENT MANAGEMENT Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 14.06% -16.18% 82.26% 5.12% 49.33% -17.27% 23.59% 39.66% 62.32% 5.67%
Percentage (%) Row: 1, Col: 1, Value: 14.06 Row: 2, Col: 1, Value: -16.18 Row: 3, Col: 1, Value: 82.26000000000001 Row: 4, Col: 1, Value: 5.119999999999999 Row: 5, Col: 1, Value: 49.33 Row: 6, Col: 1, Value: -17.27 Row: 7, Col: 1, Value: 23.59 Row: 8, Col: 1, Value: 39.66 Row: 9, Col: 1, Value: 62.32 Row: 10, Col: 1, Value: 5.67 DURING THE PERIODS SHOWN IN THE CHART FOR BROKERAGE AND INVESTMENT MANAGEMENT, THE HIGHEST RETURN FOR A QUARTER WAS 31.28 % (QUARTER ENDING MARCH 31, 1991 ) AND THE LOWEST RETURN FOR A QUARTER WAS -33.12 % (QUARTER ENDIN G SEPTEMBER 30, 1998 ). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR BROKERAGE AND INVESTMENT MANAGEMENT WAS 15.47% .
CHEMICALS Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 17.31% -4.13% 38.66% 8.90% 12.76% 14.78% 21.45% 21.52% 16.48% -15.90%
Percentage (%) Row: 1, Col: 1, Value: 17.31 Row: 2, Col: 1, Value: -4.13 Row: 3, Col: 1, Value: 38.66 Row: 4, Col: 1, Value: 8.9 Row: 5, Col: 1, Value: 12.76 Row: 6, Col: 1, Value: 14.78 Row: 7, Col: 1, Value: 21.45 Row: 8, Col: 1, Value: 21.52 Row: 9, Col: 1, Value: 16.48 Row: 10, Col: 1, Value: -15.9 DURING THE PERIODS SHOWN IN THE CHART FOR CHEMICALS, THE HIGHEST RETURN FOR A QUARTER WAS 17.65 % (QUARTER ENDING MARCH 31, 1991 ) AND THE LOWEST RETURN FOR A QUARTER WAS -19.95 % (QUARTER ENDING SEPTEMBER 30, 1998 ). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR CHEMICALS WAS - - 1.38% .
COMPUTERS Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 6.84% 18.41% 30.75% 21.96% 28.87% 20.45% 51.83% 31.62% 0.10% 96.37%
Percentage (%) Row: 1, Col: 1, Value: 6.84 Row: 2, Col: 1, Value: 18.41 Row: 3, Col: 1, Value: 30.75 Row: 4, Col: 1, Value: 21.96 Row: 5, Col: 1, Value: 28.87 Row: 6, Col: 1, Value: 20.45 Row: 7, Col: 1, Value: 51.83 Row: 8, Col: 1, Value: 31.62 Row: 9, Col: 1, Value: 0.1 Row: 10, Col: 1, Value: 96.36999999999999 DURING THE PERIODS SHOWN IN THE CHART FOR COMPUTERS, THE HIGHEST RETURN FOR A QUARTER WAS 39.44 % (QUARTER ENDING DECEMBER 31, 1998 ) AND THE LOWEST RETURN FOR A QUARTER WAS -27.00 % (QUARTER ENDING SEPTEMBER 30, 1990 ). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR COMPUTERS WAS 13.50% .
CONSTRUCTION AND HOUSING Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 16.60% -9.64% 41.31% 18.71% 33.61% -15.94% 28.78% 13.21% 29.83% 22.84%
Percentage (%) Row: 1, Col: 1, Value: 16.6 Row: 2, Col: 1, Value: -9.639999999999999 Row: 3, Col: 1, Value: 41.31 Row: 4, Col: 1, Value: 18.71 Row: 5, Col: 1, Value: 33.61 Row: 6, Col: 1, Value: -15.94 Row: 7, Col: 1, Value: 28.78 Row: 8, Col: 1, Value: 13.21 Row: 9, Col: 1, Value: 29.83 Row: 10, Col: 1, Value: 22.84 DURING THE PERIODS SHOWN IN THE CHART FOR CONSTRUCTION AND HOUSING, THE HIGHEST RETURN FOR A QUARTER WAS 29.68 % (QUARTER ENDING DECEMBER 31, 1998 ) AND THE LOWEST RETURN FOR A QUARTER WAS -25.81 % (QUARTER ENDING SEPTEMBER 30, 1990 ). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR CONSTRUCTION AND HOUSING WAS - 11.39% .
CONSUMER INDUSTRIES Calendar Years 1991 1992 1993 1994 1995 1996 1997 1998 38.53% 8.56% 24.67% -7.07% 28.30% 13.15% 38.06% 27.49%
Percentage (%) Row: 1, Col: 1, Value: nil Row: 2, Col: 1, Value: nil Row: 3, Col: 1, Value: 38.53 Row: 4, Col: 1, Value: 8.560000000000001 Row: 5, Col: 1, Value: 24.67 Row: 6, Col: 1, Value: -7.07 Row: 7, Col: 1, Value: 28.3 Row: 8, Col: 1, Value: 13.15 Row: 9, Col: 1, Value: 38.06 Row: 10, Col: 1, Value: 27.49 DURING THE PERIODS SHOWN IN THE CHART FOR CONSUMER INDUSTRIES, THE HIGHEST RETURN FOR A QUARTER WAS 27.07 % (QUARTER ENDING DECEMBER 31, 1998 ) AND THE LOWEST RETURN FOR A QUARTER WAS -15.37 % (QUARTER ENDING SEPTEMBER 30, 1998 ). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR CONSUMER INDUSTRIES WAS 2.51%. CYCLICAL INDUSTRIES Calendar Year 1998 8.77% Percentage (%) Row: 1, Col: 1, Value: nil 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: 0.0 Row: 8, Col: 1, Value: 0.0 Row: 9, Col: 1, Value: 0.0 Row: 10, Col: 1, Value: 8.77 DURING THE PERIOD SHOWN IN THE CHART FOR CYCLICAL INDUSTRIES, THE HIGHEST RETURN FOR A QUARTER WAS 17.39 % (QUARTER ENDING DECEMBER 31, 1998 ) AND THE LOWEST RETURN FOR A QUARTER WAS -19.87 % (QUARTER ENDING SEPTEMBER 30, 1998 ). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR CYCLICAL INDUSTRIES WAS -3.20%.
DEFENSE AND AEROSPACE Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 8.81% -4.58% 26.93% 0.00% 28.86% 1.76% 47.36% 25.03% 23.57% 4.34%
Percentage (%) Row: 1, Col: 1, Value: 8.810000000000001 Row: 2, Col: 1, Value: -4.58 Row: 3, Col: 1, Value: 26.93 Row: 4, Col: 1, Value: 0.0 Row: 5, Col: 1, Value: 28.86 Row: 6, Col: 1, Value: 1.76 Row: 7, Col: 1, Value: 47.36 Row: 8, Col: 1, Value: 25.03 Row: 9, Col: 1, Value: 23.57 Row: 10, Col: 1, Value: 4.34 DURING THE PERIODS SHOWN IN THE CHART FOR DEFENSE AND AEROSPACE, THE HIGHEST RETURN FOR A QUARTER WAS 23.08 % (QUARTER ENDING SEPTEMBER 30, 1997 ) AND THE LOWEST RETURN FOR A QUARTER WAS -18.25 % (QUARTER ENDING SEPTEMBER 30, 1998 ). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR DEFENSE AND AEROSPACE WAS -0.18 %.
DEVELOPING COMMUNICATIONS Calendar Years 1991 1992 1993 1994 1995 1996 1997 1998 61.39% 17.21% 31.77% 15.14% 17.37% 14.55% 6.04% 67.68%
Percentage (%) Row: 1, Col: 1, Value: nil Row: 2, Col: 1, Value: nil Row: 3, Col: 1, Value: 61.39 Row: 4, Col: 1, Value: 17.21 Row: 5, Col: 1, Value: 31.77 Row: 6, Col: 1, Value: 15.14 Row: 7, Col: 1, Value: 17.37 Row: 8, Col: 1, Value: 14.55 Row: 9, Col: 1, Value: 6.04 Row: 10, Col: 1, Value: 67.67999999999999 DURING THE PERIODS SHOWN IN THE CHART FOR DEVELOPING COMMUNICATIONS, THE HIGHEST RETURN FOR A QUARTER WAS 48.91 % (QUARTER ENDING DECEMBER 31, 1998 ) AND THE LOWEST RETURN FOR A QUARTER WAS -15.48 % (QUARTER ENDING MARCH 31, 1997 ). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR DEVELOPING COMMUNICATIONS WAS 25.57 %.
ELECTRONICS Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 15.67% 5.81% 35.29% 27.44% 32.08% 17.17% 68.97% 41.72% 13.72% 51.12%
Percentage (%) Row: 1, Col: 1, Value: 15.67 Row: 2, Col: 1, Value: 5.81 Row: 3, Col: 1, Value: 35.29000000000001 Row: 4, Col: 1, Value: 27.44 Row: 5, Col: 1, Value: 32.08 Row: 6, Col: 1, Value: 17.17 Row: 7, Col: 1, Value: 68.97 Row: 8, Col: 1, Value: 41.72000000000001 Row: 9, Col: 1, Value: 13.72 Row: 10, Col: 1, Value: 51.12000000000001 DURING THE PERIODS SHOWN IN THE CHART FOR ELECTRONICS, THE HIGHEST RETURN FOR A QUARTER WAS 56.77 % (QUARTER ENDING DECEMBER 31, 1998 ) AND THE LOWEST RETURN FOR A QUARTER WAS -31.76 % (QUARTER ENDING SEPTEMBER 30, 1990 ). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR ELECTRONICS WAS 5.80 %.
ENERGY Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 42.83% -4.49% 0.04% -2.39% 19.15% 0.41% 21.38% 32.47% 10.28% -14.74%
Percentage (%) Row: 1, Col: 1, Value: 42.83 Row: 2, Col: 1, Value: -4.49 Row: 3, Col: 1, Value: 0.04000000000000001 Row: 4, Col: 1, Value: -2.93 Row: 5, Col: 1, Value: 19.15 Row: 6, Col: 1, Value: 0.41 Row: 7, Col: 1, Value: 21.38 Row: 8, Col: 1, Value: 32.47 Row: 9, Col: 1, Value: 10.28 Row: 10, Col: 1, Value: -14.74 DURING THE PERIODS SHOWN IN THE CHART FOR ENERGY, THE HIGHEST RETURN FOR A QUARTER WAS 16.27 % (QUARTER ENDING MARCH 31, 1993 ) AND THE LOWEST RETURN FOR A QUARTER WAS -11.75 % (QUARTER ENDING SEPTEMBER 30, 1998 ). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR ENERGY WAS 11.07 %.
ENERGY SERVICE Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 59.44% 1.75% -23.48% 3.43% 20.96% 0.57% 40.87% 49.08% 51.87% -49.72%
Percentage (%) Row: 1, Col: 1, Value: 59.44 Row: 2, Col: 1, Value: 1.75 Row: 3, Col: 1, Value: -23.48 Row: 4, Col: 1, Value: 3.43 Row: 5, Col: 1, Value: 20.96 Row: 6, Col: 1, Value: 0.5700000000000001 Row: 7, Col: 1, Value: 40.87 Row: 8, Col: 1, Value: 49.08 Row: 9, Col: 1, Value: 51.87 Row: 10, Col: 1, Value: -49.72000000000001 DURING THE PERIODS SHOWN IN THE CHART FOR ENERGY SERVICE, THE HIGHEST RETURN FOR A QUARTER WAS 36.86 % (QUARTER ENDING SEPTEMBER 30, 1997 ) AND THE LOWEST RETURN FOR A QUARTER WAS -34.78 % (QUARTER ENDING SEPTEMBER 30, 1998 ). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR ENERGY SERVICE WAS 27.02 %.
ENVIRONMENTAL SERVICES Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 -2.48% 7.66% -1.37% -0.62% -9.55% 26.13% 15.61% 17.87% -16.96%
Percentage (%) Row: 1, Col: 1, Value: nil Row: 2, Col: 1, Value: -2.48 Row: 3, Col: 1, Value: 7.659999999999999 Row: 4, Col: 1, Value: -1.37 Row: 5, Col: 1, Value: -0.6200000000000001 Row: 6, Col: 1, Value: -9.550000000000001 Row: 7, Col: 1, Value: 26.13 Row: 8, Col: 1, Value: 15.61 Row: 9, Col: 1, Value: 17.87 Row: 10, Col: 1, Value: -16.96 DURING THE PERIODS SHOWN IN THE CHART FOR ENVIRONMENTAL SERVICES, THE HIGHEST RETURN FOR A QUARTER WAS 13.75 % (QUARTER ENDING MARCH 31, 1991 ) AND THE LOWEST RETURN FOR A QUARTER WAS -19.57 % (QUARTER ENDING SEPTEMBER 30, 1998 ). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR ENVIRONMENTAL SERVICES WAS -8.78 %.
FINANCIAL SERVICES Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 19.34% -24.33% 61.63% 42.82% 17.55% -3.65% 47.34% 32.12% 41.98% 14.13%
Percentage (%) Row: 1, Col: 1, Value: 19.34 Row: 2, Col: 1, Value: -24.33 Row: 3, Col: 1, Value: 61.63 Row: 4, Col: 1, Value: 42.82 Row: 5, Col: 1, Value: 17.55 Row: 6, Col: 1, Value: -3.65 Row: 7, Col: 1, Value: 47.34 Row: 8, Col: 1, Value: 32.12000000000001 Row: 9, Col: 1, Value: 41.98 Row: 10, Col: 1, Value: 14.13 DURING THE PERIODS SHOWN IN THE CHART FOR FINANCIAL SERVICES, THE HIGHEST RETURN FOR A QUARTER WAS 27.43 % (QUARTER ENDING MARCH 31, 1991 ) AND THE LOWEST RETURN FOR A QUARTER WAS -29.89 % (QUARTER ENDING SEPTEMBER 30, 1990 ). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR FINANCIAL SERVICES WAS 5.74 %.
FOOD AND AGRICULTURE Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 38.87% 9.33% 34.09% 6.03% 8.82% 6.09% 36.64% 13.35% 30.34% 15.69%
Percentage (%) Row: 1, Col: 1, Value: 38.87 Row: 2, Col: 1, Value: 9.33 Row: 3, Col: 1, Value: 34.09 Row: 4, Col: 1, Value: 6.03 Row: 5, Col: 1, Value: 8.82 Row: 6, Col: 1, Value: 6.09 Row: 7, Col: 1, Value: 36.64 Row: 8, Col: 1, Value: 13.35 Row: 9, Col: 1, Value: 30.34 Row: 10, Col: 1, Value: 15.69 DURING THE PERIODS SHOWN IN THE CHART FOR FOOD AND AGRICULTURE, THE HIGHEST RETURN FOR A QUARTER WAS 16.88 % (QUARTER ENDING DECEMBER 31, 1998 ) AND THE LOWEST RETURN FOR A QUARTER WAS -10.29 % (QUARTER ENDING SEPTEMBER 30, 1990 ). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR FOOD AND AGRICULTURE WAS -8.12 %.
GOLD Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 22.04% -17.20% -6.14% -3.09% 78.68% -15.46% 11.20% 19.92% -39.39% -8.64%
Percentage (%) Row: 1, Col: 1, Value: 22.04 Row: 2, Col: 1, Value: -17.2 Row: 3, Col: 1, Value: -6.14 Row: 4, Col: 1, Value: -3.09 Row: 5, Col: 1, Value: 78.67999999999999 Row: 6, Col: 1, Value: -15.46 Row: 7, Col: 1, Value: 11.2 Row: 8, Col: 1, Value: 19.92 Row: 9, Col: 1, Value: -39.39 Row: 10, Col: 1, Value: -8.639999999999999 DURING THE PERIODS SHOWN IN THE CHART FOR GOLD, THE HIGHEST RETURN FOR A QUARTER WAS 32.47 % (QUARTER ENDING JUNE 30, 1993 ) AND THE LOWEST RETURN FOR A QUARTER WAS -32.11 % (QUARTER ENDING DECEMBER 31, 1997 ). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR GOLD WAS -6.09 %.
HEALTH CARE Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 42.49% 24.32% 83.69% -17.43% 2.42% 21.46% 45.86% 15.46% 31.15% 41.28%
Percentage (%) Row: 1, Col: 1, Value: 42.49 Row: 2, Col: 1, Value: 24.32 Row: 3, Col: 1, Value: 83.69 Row: 4, Col: 1, Value: -17.43 Row: 5, Col: 1, Value: 2.42 Row: 6, Col: 1, Value: 21.46 Row: 7, Col: 1, Value: 45.86 Row: 8, Col: 1, Value: 15.46 Row: 9, Col: 1, Value: 31.15 Row: 10, Col: 1, Value: 41.28 DURING THE PERIODS SHOWN IN THE CHART FOR HEALTH CARE, THE HIGHEST RETURN FOR A QUARTER WAS 34.45 % (QUARTER ENDING MARCH 31, 1991 ) AND THE LOWEST RETURN FOR A QUARTER WAS -13.15 % (QUARTER ENDING MARCH 31, 1992 ). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR HEALTH CARE WAS 1.99 %.
HOME FINANCE Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 9.33% -15.08% 64.61% 57.85% 27.29% 2.68% 53.49% 36.88% 45.75% -14.81%
Percentage (%) Row: 1, Col: 1, Value: 9.33 Row: 2, Col: 1, Value: -15.08 Row: 3, Col: 1, Value: 64.61 Row: 4, Col: 1, Value: 57.84999999999999 Row: 5, Col: 1, Value: 27.29 Row: 6, Col: 1, Value: 2.68 Row: 7, Col: 1, Value: 53.49 Row: 8, Col: 1, Value: 36.88 Row: 9, Col: 1, Value: 45.75 Row: 10, Col: 1, Value: -14.81 DURING THE PERIODS SHOWN IN THE CHART FOR HOME FINANCE, THE HIGHEST RETURN FOR A QUARTER WAS 30.19 % (QUARTER ENDING MARCH 31, 1991 ) AND THE LOWEST RETURN FOR A QUARTER WAS -25.76 % (QUARTER ENDING SEPTEMBER 30, 1998 ). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR HOME FINANCE WAS -0.62 %.
INDUSTRIAL EQUIPMENT Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 17.95% -15.51% 26.84% 11.34% 43.33% 3.13% 27.81% 26.71% 18.55% 12.67%
Percentage (%) Row: 1, Col: 1, Value: 17.95 Row: 2, Col: 1, Value: -15.51 Row: 3, Col: 1, Value: 26.84 Row: 4, Col: 1, Value: 11.34 Row: 5, Col: 1, Value: 43.33 Row: 6, Col: 1, Value: 3.13 Row: 7, Col: 1, Value: 27.81 Row: 8, Col: 1, Value: 26.71 Row: 9, Col: 1, Value: 18.55 Row: 10, Col: 1, Value: 12.67 DURING THE PERIODS SHOWN IN THE CHART FOR INDUSTRIAL EQUIPMENT, THE HIGHEST RETURN FOR A QUARTER WAS 20.08 % (QUARTER ENDING MARCH 31, 1991 ) AND THE LOWEST RETURN FOR A QUARTER WAS -29.18 % (QUARTER ENDING SEPTEMBER 30, 1990 ). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR INDUSTRIAL EQUIPMENT WAS -1.47 %.
INDUSTRIAL MATERIALS Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 4.45% -17.17% 35.81% 12.37% 21.38% 8.19% 15.39% 14.01% 1.75% -11.02%
Percentage (%) Row: 1, Col: 1, Value: 4.45 Row: 2, Col: 1, Value: -17.17 Row: 3, Col: 1, Value: 35.81 Row: 4, Col: 1, Value: 12.37 Row: 5, Col: 1, Value: 21.38 Row: 6, Col: 1, Value: 8.19 Row: 7, Col: 1, Value: 15.39 Row: 8, Col: 1, Value: 14.01 Row: 9, Col: 1, Value: 1.75 Row: 10, Col: 1, Value: -11.02 DURING THE PERIODS SHOWN IN THE CHART FOR INDUSTRIAL MATERIALS, THE HIGHEST RETURN FOR A QUARTER WAS 12.69 % (QUARTER ENDING MARCH 31, 1991 ) AND THE LOWEST RETURN FOR A QUARTER WAS -21.26 % (QUARTER ENDING SEPTEMBER 30, 1998 ). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR INDUSTRIAL MATERIALS WAS 0.10 %.
INSURANCE Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 37.83% -9.81% 36.68% 22.50% 8.18% -0.35% 34.81% 23.71% 42.47% 20.32%
Percentage (%) Row: 1, Col: 1, Value: 37.83 Row: 2, Col: 1, Value: -9.810000000000001 Row: 3, Col: 1, Value: 36.68 Row: 4, Col: 1, Value: 22.5 Row: 5, Col: 1, Value: 8.18 Row: 6, Col: 1, Value: -0.35 Row: 7, Col: 1, Value: 34.81 Row: 8, Col: 1, Value: 23.71 Row: 9, Col: 1, Value: 42.47 Row: 10, Col: 1, Value: 20.32 DURING THE PERIODS SHOWN IN THE CHART FOR INSURANCE, THE HIGHEST RETURN FOR A QUARTER WAS 23.68 % (QUARTER ENDING MARCH 31, 1991 ) AND THE LOWEST RETURN FOR A QUARTER WAS -19.37 % (QUARTER ENDING SEPTEMBER 30, 1990 ). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR INSURANCE WAS 0.97 %.
LEISURE Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 31.21% -22.29% 32.94% 16.23% 39.55% -6.84% 26.96% 13.41% 41.29% 37.92%
Percentage (%) Row: 1, Col: 1, Value: 31.21 Row: 2, Col: 1, Value: -22.29 Row: 3, Col: 1, Value: 32.94 Row: 4, Col: 1, Value: 16.23 Row: 5, Col: 1, Value: 39.55 Row: 6, Col: 1, Value: -6.84 Row: 7, Col: 1, Value: 26.96 Row: 8, Col: 1, Value: 13.41 Row: 9, Col: 1, Value: 41.29000000000001 Row: 10, Col: 1, Value: 37.92 DURING THE PERIODS SHOWN IN THE CHART FOR LEISURE, THE HIGHEST RETURN FOR A QUARTER WAS 32.19 % (QUARTER ENDING DECEMBER 31, 1998 ) AND THE LOWEST RETURN FOR A QUARTER WAS -22.70 % (QUARTER ENDING SEPTEMBER 30, 1990 ). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR LEISURE WAS 16.40 %.
MEDICAL DELIVERY Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 58.02% 16.26% 77.83% -13.19% 5.52% 19.84% 32.18% 11.00% 20.14% -6.16%
Percentage (%) Row: 1, Col: 1, Value: 58.02 Row: 2, Col: 1, Value: 16.26 Row: 3, Col: 1, Value: 77.83 Row: 4, Col: 1, Value: -13.19 Row: 5, Col: 1, Value: 5.52 Row: 6, Col: 1, Value: 19.84 Row: 7, Col: 1, Value: 32.18 Row: 8, Col: 1, Value: 11.0 Row: 9, Col: 1, Value: 20.14 Row: 10, Col: 1, Value: -6.159999999999999 DURING THE PERIODS SHOWN IN THE CHART FOR MEDICAL DELIVERY, THE HIGHEST RETURN FOR A QUARTER WAS 41.61 % (QUARTER ENDING MARCH 31, 1991 ) AND THE LOWEST RETURN FOR A QUARTER WAS -26.26 % (QUARTER ENDING SEPTEMBER 30, 1998 ). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR MEDICAL DELIVERY WAS -21.50 %.
MULTIMEDIA Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 32.54% -26.21% 37.85% 21.50% 38.02% 4.00% 33.67% 1.07% 30.93% 35.69%
Percentage (%) Row: 1, Col: 1, Value: 32.54 Row: 2, Col: 1, Value: -26.21 Row: 3, Col: 1, Value: 37.84999999999999 Row: 4, Col: 1, Value: 21.5 Row: 5, Col: 1, Value: 38.02 Row: 6, Col: 1, Value: 4.0 Row: 7, Col: 1, Value: 33.67 Row: 8, Col: 1, Value: 1.07 Row: 9, Col: 1, Value: 30.93 Row: 10, Col: 1, Value: 35.69000000000001 DURING THE PERIODS SHOWN IN THE CHART FOR MULTIMEDIA, THE HIGHEST RETURN FOR A QUARTER WAS 27.35 % (QUARTER ENDING DECEMBER 31, 1998 ) AND THE LOWEST RETURN FOR A QUARTER WAS -24.82 % (QUARTER ENDING SEPTEMBER 30, 1990 ). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR MULTIMEDIA WAS 11.37 %.
NATURAL GAS Calendar Years 1994 1995 1996 1997 1998 -6.84% 30.38% 34.32% -8.06% -12.40%
Percentage (%) Row: 1, Col: 1, Value: nil Row: 2, Col: 1, Value: nil Row: 3, Col: 1, Value: nil Row: 4, Col: 1, Value: nil Row: 5, Col: 1, Value: nil Row: 6, Col: 1, Value: -6.84 Row: 7, Col: 1, Value: 30.38 Row: 8, Col: 1, Value: 34.32 Row: 9, Col: 1, Value: -8.060000000000001 Row: 10, Col: 1, Value: -12.4 DURING THE PERIODS SHOWN IN THE CHART FOR NATURAL GAS, THE HIGHEST RETURN FOR A QUARTER WAS 16.45 % (QUARTER ENDING SEPTEMBER 30, 1997 ) AND THE LOWEST RETURN FOR A QUARTER WAS -16.04 % (QUARTER ENDING MARCH 31, 1997 ). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR NATURAL GAS WAS 7.20 %. NATURAL RESOURCES Calendar Year 1998 -16.57% Percentage (%) Row: 1, Col: 1, Value: nil Row: 2, Col: 1, Value: nil Row: 3, Col: 1, Value: nil Row: 4, Col: 1, Value: nil Row: 5, Col: 1, Value: nil Row: 6, Col: 1, Value: nil Row: 7, Col: 1, Value: nil Row: 8, Col: 1, Value: nil Row: 9, Col: 1, Value: nil Row: 10, Col: 1, Value: -16.57 DURING THE PERIOD SHOWN IN THE CHART FOR NATURAL RESOURCES, THE HIGHEST RETURN FOR A QUARTER WAS 4.82 % (QUARTER ENDING MARCH 31, 1998 ) AND THE LOWEST RETURN FOR A QUARTER WAS -11.34 % (QUARTER ENDING SEPTEMBER 30, 1998 ). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR NATURAL RESOURCES WAS 10.51 %.
PAPER AND FOREST PRODUCTS Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 4.08% -15.11% 34.77% 12.05% 18.55% 14.14% 21.91% 7.07% 9.35% -7.89%
Percentage (%) Row: 1, Col: 1, Value: 4.08 Row: 2, Col: 1, Value: -15.11 Row: 3, Col: 1, Value: 34.77 Row: 4, Col: 1, Value: 12.05 Row: 5, Col: 1, Value: 18.55 Row: 6, Col: 1, Value: 14.14 Row: 7, Col: 1, Value: 21.91 Row: 8, Col: 1, Value: 7.07 Row: 9, Col: 1, Value: 9.350000000000001 Row: 10, Col: 1, Value: -7.89 DURING THE PERIODS SHOWN IN THE CHART FOR PAPER AND FOREST PRODUCTS, THE HIGHEST RETURN FOR A QUARTER WAS 22.74 % (QUARTER ENDING SEPTEMBER 30, 1994 ) AND THE LOWEST RETURN FOR A QUARTER WAS -21.04 % (QUARTER ENDING SEPTEMBER 30, 1998 ). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR PAPER AND FOREST PRODUCTS WAS 1.41 %.
PRECIOUS METALS AND MINERALS Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 32.16% -21.07% 1.54% -21.87% 111.62% -1.14% -3.34% 5.42% -44.89% 0.10%
Percentage (%) Row: 1, Col: 1, Value: 32.16 Row: 2, Col: 1, Value: -21.07 Row: 3, Col: 1, Value: 1.54 Row: 4, Col: 1, Value: -21.87 Row: 5, Col: 1, Value: 111.62 Row: 6, Col: 1, Value: -1.14 Row: 7, Col: 1, Value: -3.34 Row: 8, Col: 1, Value: 5.42 Row: 9, Col: 1, Value: -44.89 Row: 10, Col: 1, Value: 0.1 DURING THE PERIODS SHOWN IN THE CHART FOR PRECIOUS METALS AND MINERALS, THE HIGHEST RETURN FOR A QUARTER WAS 33.66 % (QUARTER ENDING JUNE 30, 1993 ) AND THE LOWEST RETURN FOR A QUARTER WAS -31.22 % (QUARTER ENDING DECEMBER 31, 1997 ). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR PRECIOUS METALS AND MINERALS WAS -7.09 %.
REGIONAL BANKS Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 26.65% -20.67% 65.79% 48.52% 11.17% 0.22% 46.77% 35.89% 45.56% 11.85%
Percentage (%) Row: 1, Col: 1, Value: 26.65 Row: 2, Col: 1, Value: -20.67 Row: 3, Col: 1, Value: 65.79000000000001 Row: 4, Col: 1, Value: 48.52 Row: 5, Col: 1, Value: 11.17 Row: 6, Col: 1, Value: 0.22 Row: 7, Col: 1, Value: 46.77 Row: 8, Col: 1, Value: 35.89 Row: 9, Col: 1, Value: 45.56 Row: 10, Col: 1, Value: 11.85 DURING THE PERIODS SHOWN IN THE CHART FOR REGIONAL BANKS, THE HIGHEST RETURN FOR A QUARTER WAS 22.20 % (QUARTER ENDING MARCH 31, 1991 ) AND THE LOWEST RETURN FOR A QUARTER WAS -25.20 % (QUARTER ENDING SEPTEMBER 30, 1990 ). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR REGIONAL BANKS WAS -3.13 %.
RETAILING Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 29.53% -5.03% 68.13% 22.08% 13.03% -5.01% 11.98% 20.86% 41.73% 45.76%
Percentage (%) Row: 1, Col: 1, Value: 29.53 Row: 2, Col: 1, Value: -5.03 Row: 3, Col: 1, Value: 68.13 Row: 4, Col: 1, Value: 22.08 Row: 5, Col: 1, Value: 13.03 Row: 6, Col: 1, Value: -5.01 Row: 7, Col: 1, Value: 11.98 Row: 8, Col: 1, Value: 20.86 Row: 9, Col: 1, Value: 41.73 Row: 10, Col: 1, Value: 45.76000000000001 DURING THE PERIODS SHOWN IN THE CHART FOR RETAILING, THE HIGHEST RETURN FOR A QUARTER WAS 34.78 % (QUARTER ENDING DECEMBER 31, 1998 ) AND THE LOWEST RETURN FOR A QUARTER WAS -27.05 % (QUARTER ENDING SEPTEMBER 30, 1990 ). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR RETAILING WAS 5.88 %.
SOFTWARE AND COMPUTER SERVICES Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 12.05% 0.86% 45.84% 35.54% 32.73% 0.39% 46.26% 21.77% 15.01% 45.77%
Percentage (%) Row: 1, Col: 1, Value: 12.05 Row: 2, Col: 1, Value: 0.8600000000000001 Row: 3, Col: 1, Value: 45.84 Row: 4, Col: 1, Value: 35.54 Row: 5, Col: 1, Value: 32.73 Row: 6, Col: 1, Value: 0.3900000000000001 Row: 7, Col: 1, Value: 46.26000000000001 Row: 8, Col: 1, Value: 21.77 Row: 9, Col: 1, Value: 15.01 Row: 10, Col: 1, Value: 45.77 DURING THE PERIODS SHOWN IN THE CHART FOR SOFTWARE AND COMPUTER SERVICES, THE HIGHEST RETURN FOR A QUARTER WAS 30.03 % (QUARTER ENDING MARCH 31, 1991 ) AND THE LOWEST RETURN FOR A QUARTER WAS -30.81 % (QUARTER ENDING SEPTEMBER 30, 1990 ). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR SOFTWARE AND COMPUTER SERVICES WAS 9.12 %.
TECHNOLOGY Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 16.99% 10.50% 58.97% 8.72% 28.65% 11.13% 43.81% 15.82% 10.33% 74.16%
Percentage (%) Row: 1, Col: 1, Value: 16.99 Row: 2, Col: 1, Value: 10.5 Row: 3, Col: 1, Value: 58.97 Row: 4, Col: 1, Value: 8.719999999999999 Row: 5, Col: 1, Value: 28.65 Row: 6, Col: 1, Value: 11.13 Row: 7, Col: 1, Value: 43.81 Row: 8, Col: 1, Value: 15.82 Row: 9, Col: 1, Value: 10.33 Row: 10, Col: 1, Value: 74.16 DURING THE PERIODS SHOWN IN THE CHART FOR TECHNOLOGY, THE HIGHEST RETURN FOR A QUARTER WAS 45.96 % (QUARTER ENDING DECEMBER 31, 1998 ) AND THE LOWEST RETURN FOR A QUARTER WAS -25.19 % (QUARTER ENDING SEPTEMBER 30, 1990 ). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR TECHNOLOGY WAS 18.63 %.
TELECOMMUNICATIONS Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 50.88% -16.40% 30.85% 15.32% 29.72% 4.32% 29.66% 5.40% 25.83% 41.04%
Percentage (%) Row: 1, Col: 1, Value: 50.88 Row: 2, Col: 1, Value: -16.4 Row: 3, Col: 1, Value: 30.85 Row: 4, Col: 1, Value: 15.32 Row: 5, Col: 1, Value: 29.72 Row: 6, Col: 1, Value: 4.319999999999999 Row: 7, Col: 1, Value: 29.66 Row: 8, Col: 1, Value: 5.4 Row: 9, Col: 1, Value: 25.83 Row: 10, Col: 1, Value: 41.04 DURING THE PERIODS SHOWN IN THE CHART FOR TELECOMMUNICATIONS, THE HIGHEST RETURN FOR A QUARTER WAS 30.69 % (QUARTER ENDING DECEMBER 31, 1998 ) AND THE LOWEST RETURN FOR A QUARTER WAS -21.14 % (QUARTER ENDING SEPTEMBER 30, 1990 ). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR TELECOMMUNICATIONS WAS 10.09 %.
TRANSPORTATION Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 28.49% -21.59% 54.14% 23.79% 29.32% 3.87% 15.17% 9.50% 32.13% -4.34%
Percentage (%) Row: 1, Col: 1, Value: 28.49 Row: 2, Col: 1, Value: -21.59 Row: 3, Col: 1, Value: 54.14 Row: 4, Col: 1, Value: 23.79 Row: 5, Col: 1, Value: 29.32 Row: 6, Col: 1, Value: 3.87 Row: 7, Col: 1, Value: 15.17 Row: 8, Col: 1, Value: 9.5 Row: 9, Col: 1, Value: 32.13 Row: 10, Col: 1, Value: -4.34 DURING THE PERIODS SHOWN IN THE CHART FOR TRANSPORTATION, THE HIGHEST RETURN FOR A QUARTER WAS 19.76 % (QUARTER ENDING DECEMBER 31, 1998 ) AND THE LOWEST RETURN FOR A QUARTER WAS -25.91 % (QUARTER ENDING SEPTEMBER 30, 1990 ). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR TRANSPORTATION WAS 15.57 %.
UTILITIES GROWTH Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 39.02% 0.55% 21.03% 10.59% 12.54% -7.41% 34.39% 11.37% 30.31% 43.16%
Percentage (%) Row: 1, Col: 1, Value: 39.02 Row: 2, Col: 1, Value: 0.55 Row: 3, Col: 1, Value: 21.03 Row: 4, Col: 1, Value: 10.59 Row: 5, Col: 1, Value: 12.54 Row: 6, Col: 1, Value: -7.41 Row: 7, Col: 1, Value: 34.39 Row: 8, Col: 1, Value: 11.37 Row: 9, Col: 1, Value: 30.31 Row: 10, Col: 1, Value: 43.16 DURING THE PERIODS SHOWN IN THE CHART FOR UTILITIES GROWTH, THE HIGHEST RETURN FOR A QUARTER WAS 23.01 % (QUARTER ENDING DECEMBER 31, 1998 ) AND THE LOWEST RETURN FOR A QUARTER WAS -6.17 % (QUARTER ENDING DECEMBER 31, 1993 ). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR UTILITIES GROWTH WAS 3.84 %.
MONEY MARKET Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 8.98% 7.79% 5.80% 3.52% 2.69% 3.74% 5.66% 5.06% 5.20% 5.20%
Percentage (%) Row: 1, Col: 1, Value: 8.98 Row: 2, Col: 1, Value: 7.79 Row: 3, Col: 1, Value: 5.8 Row: 4, Col: 1, Value: 3.52 Row: 5, Col: 1, Value: 2.69 Row: 6, Col: 1, Value: 3.74 Row: 7, Col: 1, Value: 5.659999999999999 Row: 8, Col: 1, Value: 5.06 Row: 9, Col: 1, Value: 5.2 Row: 10, Col: 1, Value: 5.2 DURING THE PERIODS SHOWN IN THE CHART FOR MONEY MARKET, THE HIGHEST RETURN FOR A QUARTER WAS 1.91 % (QUARTER ENDING JUNE 30, 1990 ) AND THE LOWEST RETURN FOR A QUARTER WAS 0.63 % (QUARTER ENDING DECEMBER 31, 1993 ). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR MONEY MARKET WAS 1.14 %. AVERAGE ANNUAL RETURNS The returns in the following table include the effect of each fund's 3.00% maximum applicable front-end sales charge and $7.50 exchange fee (stock funds only).
For the periods ended Past 1 year Past 5 years Past 10 years/ Life of fundA December 31, 1998 Air Transportation 3.15% 11.33% 12.95% S&P 500 28.58% 24.06% 19.21% Goldman Sachs Cyclical 4.74% N/A N/A Industries Index Automotive 1.72% 6.42% 13.31% S&P 500 28.58% 24.06% 19.21% Goldman Sachs Cyclical 4.74% N/A N/A Industries Index Biotechnology 25.75% 13.31% 21.44% S&P 500 28.58% 24.06% 19.21% Goldman Sachs Health Care Index 40.26% N/A N/A Brokerage and Investment 2.43% 18.89% 20.58% Management S&P 500 28.58% 24.06% 19.21% Goldman Sachs Financial 9.04% N/A N/A Services Index Chemicals -18.49% 9.98% 11.91% S&P 500 28.58% 24.06% 19.21% Goldman Sachs Cyclical 4.74% N/A N/A Industries Index Computers 90.41% 35.63% 28.13% S&P 500 28.58% 24.06% 19.21% Goldman Sachs Technology Index 69.16% N/A N/A Construction and Housing 19.08% 13.64% 16.17% S&P 500 28.58% 24.06% 19.21% Goldman Sachs Cyclical 4.74% N/A N/A Industries Index Consumer Industries 23.59% 18.15% 20.06%B S&P 500 28.58% 24.06% 20.83% Goldman Sachs Consumer 24.91% N/A N/A Industries Index Cyclical Industries 5.43% N/A 5.43%B S&P 500 28.58% N/A 28.58% Goldman Sachs Cyclical 4.74% N/A 4.74% Industries Index Defense and Aerospace 1.13% 18.57% 14.81% S&P 500 28.58% 24.06% 19.21% Goldman Sachs Cyclical 4.74% N/A N/A Industries Index Developing Communications 62.57% 21.69% 26.73%B S&P 500 28.58% 24.06% 20.83% Goldman Sachs Technology Index 69.16% N/A N/A Electronics 46.51% 36.14% 29.27% S&P 500 28.58% 24.06% 19.21% Goldman Sachs Technology Index 69.16% N/A N/A For the periods ended Past 1 year Past 5 years Past 10 years/ Life of fundA December 31, 1998 Energy -17.37% 8.04% 8.86% S&P 500 28.58% 24.06% 19.21% Goldman Sachs Natural -14.19% N/A N/A Resources Index Energy Service -51.30% 9.35% 9.28% S&P 500 28.58% 24.06% 19.21% Goldman Sachs Natural -14.19% N/A N/A Resources Index Environmental Services -19.53% 4.59% 2.85%B S&P 500 28.58% 24.06% 17.90% Goldman Sachs Cyclical 4.74% N/A N/A Industries Index Financial Services 10.64% 24.13% 21.86% S&P 500 28.58% 24.06% 19.21% Goldman Sachs Financial 9.04% N/A N/A Services Index Food and Agriculture 12.14% 19.16% 18.89% S&P 500 28.58% 24.06% 19.21% Goldman Sachs Consumer 24.91% N/A N/A Industries Index Gold -11.45% -9.57% -0.06% S&P 500 28.58% 24.06% 19.21% Goldman Sachs Natural -14.19% N/A N/A Resources Index Health Care 36.97% 29.74% 26.04% S&P 500 28.58% 24.06% 19.21% Goldman Sachs Health Care Index 40.26% N/A N/A Home Finance -17.43% 21.04% 23.08% S&P 500 28.58% 24.06% 19.21% Goldman Sachs Financial 9.04% N/A N/A Services Index Industrial Equipment 9.22% 16.69% 15.87% S&P 500 28.58% 24.06% 19.21% Goldman Sachs Cyclical 4.74% N/A N/A Industries Index Industrial Materials -13.76% 4.55% 7.19% S&P 500 28.58% 24.06% 19.21% Goldman Sachs Cyclical 4.74% N/A N/A Industries Index Insurance 16.64% 22.54% 20.06% S&P 500 28.58% 24.06% 19.21% Goldman Sachs Financial 9.04% N/A N/A Services Index Leisure 33.71% 20.44% 18.75% S&P 500 28.58% 24.06% 19.21% Goldman Sachs Consumer 24.91% N/A N/A Industries Index Medical Delivery -9.05% 13.96% 19.12% S&P 500 28.58% 24.06% 19.21% Goldman Sachs Health Care Index 40.26% N/A N/A For the periods ended Past 1 year Past 5 years Past 10 years/ Life of fundA December 31, 1998 Multimedia 31.55% 19.34% 18.53% S&P 500 28.58% 24.06% 19.21% Goldman Sachs Consumer 24.91% N/A N/A Industries Index Natural Gas -15.10% 4.96% 4.96%B S&P 500 28.58% 24.06% 24.06% Goldman Sachs Utilities Index 34.29% N/A N/A Natural Resources -19.15% N/A -19.15%B S&P 500 28.58% N/A 28.58% Goldman Sachs Natural -14.19% N/A -14.19% Resources Index Paper and Forest Products -10.73% 7.79% 8.69% S&P 500 28.58% 24.06% 19.21% Goldman Sachs Cyclical 4.74% N/A N/A Industries Index Precious Metals and Minerals -2.97% -11.65% -0.58% S&P 500 28.58% 24.06% 19.21% Goldman Sachs Natural -14.19% N/A N/A Resources Index Regional Banks 8.42% 25.84% 24.12% S&P 500 28.58% 24.06% 19.21% Goldman Sachs Financial 9.04% N/A N/A Services Index Retailing 41.32% 20.83% 22.08% S&P 500 28.58% 24.06% 19.21% Goldman Sachs Consumer 24.91% N/A N/A Industries Index Software and Computer Services 41.32% 23.79% 24.04% S&P 500 28.58% 24.06% 19.21% Goldman Sachs Technology Index 69.16% N/A N/A Technology 68.86% 28.10% 25.79% S&P 500 28.58% 24.06% 19.21% Goldman Sachs Technology Index 69.16% N/A N/A Telecommunications 36.74% 19.66% 19.74% S&P 500 28.58% 24.06% 19.21% Goldman Sachs Utilities Index 34.29% N/A N/A Transportation -7.28% 9.93% 14.85% S&P 500 28.58% 24.06% 19.21% Goldman Sachs Cyclical 4.74% N/A N/A Industries Index Utilities Growth 38.79% 20.18% 18.10% S&P 500 28.58% 24.06% 19.21% Goldman Sachs Utilities Index 34.29% N/A N/A Money Market 2.04% 4.33% 5.03%
A BEGINNING JANUARY 1 OF THE FIRST CALENDAR YEAR FOLLOWING THE FUND'S COMMENCEMENT OF OPERATIONS. B FROM JANUARY 1, 1990 FOR ENVIRONMENTAL SERVICES; JANUARY 1, 1991 FOR CONSUMER INDUSTRIES AND DEVELOPING COMMUNICATIONS; JANUARY 1, 1994 FOR NATURAL GAS; AND JANUARY 1, 1998 FOR CYCLICAL INDUSTRIES AND NATURAL RESOURCES. If FMR had not reimbursed certain fund expenses during these periods, each fund's returns would have been lower. Standard & Poor's 500 Index (S&P 500(registered trademark)) is a market capitalization-weighted index of common stocks. Goldman Sachs Consumer Industries Index is a market capitalization-weighted index of 300 stocks designed to measure the performance of companies in the consumer industries sector. Goldman Sachs Cyclical Industries Index is a market capitalization-weighted index of 277 stocks designed to measure the performance of companies in the cyclical industries sector. Goldman Sachs Financial Services Index is a market capitalization-weighted index of 271 stocks designed to measure the performance of companies in the financial services sector. Goldman Sachs Health Care Index is a market capitalization-weighted index of 93 stocks designed to measure the performance of companies in the health care sector. Goldman Sachs Natural Resources Index is a market capitalization-weighted index of 96 stocks designed to measure the performance of companies in the natural resources sector. Goldman Sachs Technology Index is a market capitalization-weighted index of 190 stocks designed to measure the performance of companies in the technology sector. Goldman Sachs Utilities Index is a market capitalization-weighted index of 136 stocks designed to measure the performance of companies in the utilities sector. FEE TABLE The following table describes the fees and expenses that are incurred when you buy, hold or sell shares of a fund. The annual fund operating expenses provided below for each fund do not reflect the effect of any reduction of certain expenses during the period. The annual fund operating expenses provided below for Cyclical Industries and Natural Resources do not reflect the effect of any expense reimbursements during the period. SHAREHOLDER FEES (PAID BY THE INVESTOR DIRECTLY) Maximum sales charge (load) 3.00% on purchases (as a % of offering price)A Sales charge (load) on None reinvested distributions Deferred sales charge (load) None on redemptions Redemption fee for the stock 0.75% funds (as a % of amount 0.75% redeemed) $ 7.50 on shares held 29 days or less on shares held 30 days or more for redemption amounts of up to $1,000 for redemption amounts of $1,000 or more Exchange fee for the stock funds onlyB $ 7.50 Annual account maintenance $ 12.00 fee (for accounts under $2,500) A LOWER SALES CHARGES MAY BE AVAILABLE FOR ACCOUNTS OVER $250,000. B YOU WILL NOT PAY AN EXCHANGE FEE IF YOU EXCHANGE THROUGH ANY OF FIDELITY'S AUTOMATED EXCHANGE SERVICES. ANNUAL FUND OPERATING EXPENSES (PAID FROM FUND ASSETS) AIR TRANSPORTATION Management fee 0.58% Distribution and Service None (12b-1) fee Other expenses 0.77% Total annual fund operating 1.35% expensesA AUTOMOTIVE Management fee 0.59% Distribution and Service None (12b-1) fee Other expenses 0.86% Total annual fund operating 1.45% expensesA BIOTECHNOLOGY Management fee 0.59% Distribution and Service None (12b-1) fee Other expenses 0.75% Total annual fund operating 1.34% expensesA BROKERAGE AND INVESTMENT Management fee 0.59% MANAGEMENT Distribution and Service None (12b-1) fee Other expenses 0.67% Total annual fund operating 1.26% expensesA BUSINESS SERVICES AND Management fee 0.59% OUTSOURCING Distribution and Service None (12b-1) fee Other expenses 1.07% Total annual fund operating 1.66% expensesA CHEMICALS Management fee 0.59% Distribution and Service None (12b-1) fee Other expenses 0.99% Total annual fund operating 1.58% expensesA COMPUTERS Management fee 0.60% Distribution and Service None (12b-1) fee Other expenses 0.65% Total annual fund operating 1.25% expensesA CONSTRUCTION AND HOUSING Management fee 0.59% Distribution and Service None (12b-1) fee Other expenses 0.84% Total annual fund operating 1.43% expensesA CONSUMER INDUSTRIES Management fee 0.59% Distribution and Service None (12b-1) fee Other expenses 0.75% Total annual fund operating 1.34% expensesA CYCLICAL INDUSTRIES Management fee 0.59% Distribution and Service None (12b-1) fee Other expenses 3.38% Total annual fund operating 3.97% expensesA DEFENSE AND AEROSPACE Management fee 0.58% Distribution and Service None (12b-1) fee Other expenses 0.90% Total annual fund operating 1.48% expensesA DEVELOPING COMMUNICATIONS Management fee 0.60% Distribution and Service None (12b-1) fee Other expenses 0.78% Total annual fund operating 1.38% expensesA ELECTRONICS Management fee 0.59% Distribution and Service None (12b-1) fee Other expenses 0.59% Total annual fund operating 1.18% expensesA ENERGY Management fee 0.59% Distribution and Service None (12b-1) fee Other expenses 0.87% Total annual fund operating 1.46% expensesA ENERGY SERVICE Management fee 0.59% Distribution and Service None (12b-1) fee Other expenses 0.80% Total annual fund operating 1.39% expensesA ENVIRONMENTAL SERVICES Management fee 0.59% Distribution and Service None (12b-1) fee Other expenses 1.61% Total annual fund operating 2.20% expensesA FINANCIAL SERVICES Management fee 0.59% Distribution and Service None (12b-1) fee Other expenses 0.61% Total annual fund operating 1.20% expensesA FOOD AND AGRICULTURE Management fee 0.59% Distribution and Service None (12b-1) fee Other expenses 0.72% Total annual fund operating 1.31% expensesA GOLD Management fee 0.59% Distribution and Service None (12b-1) fee Other expenses 0.98% Total annual fund operating 1.57% expensesA HEALTH CARE Management fee 0.59% Distribution and Service None (12b-1) fee Other expenses 0.48% Total annual fund operating 1.07% expensesA HOME FINANCE Management fee 0.58% Distribution and Service None (12b-1) fee Other expenses 0.61% Total annual fund operating 1.19% expensesA INDUSTRIAL EQUIPMENT Management fee 0.59% Distribution and Service None (12b-1) fee Other expenses 0.84% Total annual fund operating 1.43% expensesA INDUSTRIAL MATERIALS Management fee 0.59% Distribution and Service None (12b-1) fee Other expenses 1.48% Total annual fund operating 2.07% expensesA INSURANCE Management fee 0.59% Distribution and Service None (12b-1) fee Other expenses 0.74% Total annual fund operating 1.33% expensesA LEISURE Management fee 0.59% Distribution and Service None (12b-1) fee Other expenses 0.67% Total annual fund operating 1.26% expensesA MEDICAL DELIVERY Management fee 0.59% Distribution and Service None (12b-1) fee Other expenses 0.81% Total annual fund operating 1.40% expensesA MEDICAL EQUIPMENT AND SYSTEMS Management fee 0.60% Distribution and Service None (12b-1) fee Other expenses 1.79% Total annual fund operating 2.39% expensesA MULTIMEDIA Management fee 0.59% Distribution and Service None (12b-1) fee Other expenses 0.76% Total annual fund operating 1.35% expensesA NATURAL GAS Management fee 0.59% Distribution and Service None (12b-1) fee Other expenses 0.98% Total annual fund operating 1.57% expensesA NATURAL RESOURCES Management fee 0.59% Distribution and Service None (12b-1) fee Other expenses 2.61% Total annual fund operating 3.20% expensesA PAPER AND FOREST PRODUCTS Management fee 0.59% Distribution and Service None (12b-1) fee Other expenses 1.71% Total annual fund operating 2.30% expensesA PRECIOUS METALS AND MINERALS Management fee 0.59% Distribution and Service None (12b-1) fee Other expenses 1.19% Total annual fund operating 1.78% expensesA REGIONAL BANKS Management fee 0.59% Distribution and Service None (12b-1) fee Other expenses 0.58% Total annual fund operating 1.17% expensesA RETAILING Management fee 0.59% Distribution and Service None (12b-1) fee Other expenses 0.66% Total annual fund operating 1.25% expensesA SOFTWARE AND COMPUTER SERVICES Management fee 0.59% Distribution and Service None (12b-1) fee Other expenses 0.69% Total annual fund operating 1.28% expensesA TECHNOLOGY Management fee 0.60% Distribution and Service None (12b-1) fee Other expenses 0.64% Total annual fund operating 1.24% expensesA TELECOMMUNICATIONS Management fee 0.59% Distribution and Service None (12b-1) fee Other expenses 0.68% Total annual fund operating 1.27% expensesA TRANSPORTATION Management fee 0.58% Distribution and Service None (12b-1) fee Other expenses 1.38% Total annual fund operating 1.96% expensesA UTILITIES GROWTH Management fee 0.59% Distribution and Service None (12b-1) fee Other expenses 0.59% Total annual fund operating 1.18% expensesA MONEY MARKET Management fee 0.20% Distribution and Service None (12b-1) fee Other expenses 0.30% Total annual fund operating 0.50% expensesA A FMR HAS VOLUNTARILY AGREED TO REIMBURSE EACH FUND TO THE EXTENT THAT TOTAL OPERATING EXPENSES (EXCLUDING INTEREST, TAXES, SECURITIES LENDING FEES, BROKERAGE COMMISSIONS AND EXTRAORDINARY EXPENSES), AS A PERCENTAGE OF THEIR RESPECTIVE AVERAGE NET ASSETS, EXCEED 2.50%. THESE ARRANGEMENTS CAN BE TERMINATED BY FMR AT ANY TIME. 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, after reimbursement for Cyclical Industries and Natural Resources, would have been: Air Transportation 1.27% Automotive 1.41% Biotechnology 1.30% Brokerage and Investment 1.24% Management Business Services and 1.64% Outsourcing Chemicals 1.51% Computers 1.23% Construction and Housing 1.37% Consumer Industries 1.32% Cyclical Industries 2.49% Defense and Aerospace 1.42% Developing Communications 1.34% Electronics 1.15% Energy 1.42% Energy Service 1.35% Environmental Services 2.16% Financial Services 1.18% Food and Agriculture 1.29% Gold 1.54% Health Care 1.05% Home Finance 1.18% Industrial Equipment 1.41% Industrial Materials 2.04% Insurance 1.31% Leisure 1.24% Medical Delivery 1.37% Medical Equipment and Systems 2.38% Multimedia 1.33% Natural Gas 1.52% Natural Resources 2.47% Paper and Forest Products 2.21% Precious Metals and Minerals 1.74% Regional Banks 1.16% Retailing 1.22% Software and Computer Services 1.27% Technology 1.20% Telecommunications 1.25% Transportation 1.90% Utilities Growth 1.16% Money Market 0.49% This EXAMPLE helps you compare the cost of investing in the funds with the cost of investing in other mutual funds. Let's say, hypothetically, that each fund's annual return is 5% and that your shareholder fees and each fund's annual operating expenses are exactly as described in the fee table. This example illustrates the effect of fees and expenses, but is not meant to suggest actual or expected fees and expenses or returns, all of which may vary. For every $10,000 you invested, here's how much you would pay in total expenses if you close your account after the number of years indicated and if you leave your account open: Account open Account closed AIR TRANSPORTATION 1 year $ 433 $ 441 3 years $ 715 $ 722 5 years $ 1,017 $ 1,025 10 years $ 1,875 $ 1,883 AUTOMOTIVE 1 year $ 443 $ 451 3 years $ 745 $ 752 5 years $ 1,068 $ 1,076 10 years $ 1,983 $ 1,991 BIOTECHNOLOGY 1 year $ 432 $ 440 3 years $ 712 $ 719 5 years $ 1,012 $ 1,020 10 years $ 1,864 $ 1,872 BROKERAGE AND INVESTMENT 1 year $ 425 $ 432 MANAGEMENT 3 years $ 688 $ 695 5 years $ 971 $ 978 10 years $ 1,777 $ 1,784 BUSINESS SERVICES AND 1 year $ 464 $ 471 OUTSOURCING 3 years $ 808 $ 815 5 years $ 1,175 $ 1,183 10 years $ 2,206 $ 2,214 CHEMICALS 1 year $ 456 $ 463 3 years $ 784 $ 791 5 years $ 1,135 $ 1,142 10 years $ 2,122 $ 2,129 COMPUTERS 1 year $ 424 $ 431 3 years $ 685 $ 692 5 years $ 966 $ 973 10 years $ 1,766 $ 1,773 CONSTRUCTION AND HOUSING 1 year $ 441 $ 449 3 years $ 739 $ 746 5 years $ 1,058 $ 1,066 10 years $ 1,962 $ 1,969 CONSUMER INDUSTRIES 1 year $ 432 $ 440 3 years $ 712 $ 719 5 years $ 1,012 $ 1,020 10 years $ 1,864 $ 1,872 CYCLICAL INDUSTRIES 1 year $ 687 $ 695 3 years $ 1,473 $ 1,481 5 years $ 2,276 $ 2,283 10 years $ 4,355 $ 4,363 DEFENSE AND AEROSPACE 1 year $ 446 $ 454 3 years $ 754 $ 761 5 years $ 1,084 $ 1,091 10 years $ 2,015 $ 2,023 DEVELOPING COMMUNICATIONS 1 year $ 436 $ 444 3 years $ 724 $ 731 5 years $ 1,033 $ 1,040 10 years $ 1,908 $ 1,915 ELECTRONICS 1 year $ 417 $ 424 3 years $ 663 $ 671 5 years $ 930 $ 937 10 years $ 1,689 $ 1,696 ENERGY 1 year $ 444 $ 452 3 years $ 748 $ 755 5 years $ 1,073 $ 1,081 10 years $ 1,994 $ 2,001 ENERGY SERVICE 1 year $ 437 $ 445 3 years $ 727 $ 734 5 years $ 1,038 $ 1,045 10 years $ 1,919 $ 1,926 ENVIRONMENTAL SERVICES 1 year $ 516 $ 524 3 years $ 968 $ 975 5 years $ 1,444 $ 1,452 10 years $ 2,758 $ 2,765 FINANCIAL SERVICES 1 year $ 419 $ 426 3 years $ 670 $ 677 5 years $ 940 $ 947 10 years $ 1,711 $ 1,718 FOOD AND AGRICULTURE 1 year $ 429 $ 437 3 years $ 703 $ 710 5 years $ 997 $ 1,004 10 years $ 1,832 $ 1,839 GOLD 1 year $ 455 $ 462 3 years $ 781 $ 788 5 years $ 1,129 $ 1,137 10 years $ 2,111 $ 2,119 HEALTH CARE 1 year $ 406 $ 413 3 years $ 630 $ 638 5 years $ 872 $ 880 10 years $ 1,566 $ 1,574 HOME FINANCE 1 year $ 418 $ 425 3 years $ 667 $ 674 5 years $ 935 $ 942 10 years $ 1,700 $ 1,707 INDUSTRIAL EQUIPMENT 1 year $ 441 $ 449 3 years $ 739 $ 746 5 years $ 1,058 $ 1,066 10 years $ 1,962 $ 1,969 INDUSTRIAL MATERIALS 1 year $ 504 $ 511 3 years $ 929 $ 937 5 years $ 1,380 $ 1,388 10 years $ 2,628 $ 2,636 INSURANCE 1 year $ 431 $ 439 3 years $ 709 $ 716 5 years $ 1,007 $ 1,014 10 years $ 1,853 $ 1,861 LEISURE 1 year $ 425 $ 432 3 years $ 688 $ 695 5 years $ 971 $ 978 10 years $ 1,777 $ 1,784 MEDICAL DELIVERY 1 year $ 438 $ 446 3 years $ 730 $ 737 5 years $ 1,043 $ 1,050 10 years $ 1,929 $ 1,937 MEDICAL EQUIPMENT AND SYSTEMS 1 year $ 535 $ 542 3 years $ 1,023 $ 1,031 5 years $ 1,537 $ 1,545 10 years $ 2,944 $ 2,952 MULTIMEDIA 1 year $ 433 $ 441 3 years $ 715 $ 722 5 years $ 1,017 $ 1,025 10 years $ 1,875 $ 1,883 NATURAL GAS 1 year $ 455 $ 462 3 years $ 781 $ 788 5 years $ 1,129 $ 1,137 10 years $ 2,111 $ 2,119 NATURAL RESOURCES 1 year $ 613 $ 621 3 years $ 1,257 $ 1,264 5 years $ 1,923 $ 1,931 10 years $ 3,698 $ 3,706 PAPER AND FOREST PRODUCTS 1 year $ 526 $ 534 3 years $ 997 $ 1,004 5 years $ 1,493 $ 1,501 10 years $ 2,857 $ 2,864 PRECIOUS METALS AND MINERALS 1 year $ 475 $ 483 3 years $ 843 $ 851 5 years $ 1,236 $ 1,243 10 years $ 2,332 $ 2,339 REGIONAL BANKS 1 year $ 416 $ 423 3 years $ 660 $ 668 5 years $ 924 $ 932 10 years $ 1,678 $ 1,685 RETAILING 1 year $ 424 $ 431 3 years $ 685 $ 692 5 years $ 966 $ 973 10 years $ 1,766 $ 1,773 SOFTWARE AND COMPUTER SERVICES 1 year $ 426 $ 434 3 years $ 694 $ 701 5 years $ 981 $ 989 10 years $ 1,799 $ 1,806 TECHNOLOGY 1 year $ 423 $ 430 3 years $ 682 $ 689 5 years $ 961 $ 968 10 years $ 1,755 $ 1,762 TELECOMMUNICATIONS 1 year $ 425 $ 433 3 years $ 691 $ 699 5 years $ 976 $ 984 10 years $ 1,788 $ 1,796 TRANSPORTATION 1 year $ 493 $ 501 3 years $ 897 $ 904 5 years $ 1,326 $ 1,333 10 years $ 2,517 $ 2,524 UTILITIES GROWTH 1 year $ 417 $ 424 3 years $ 663 $ 671 5 years $ 930 $ 937 10 years $ 1,689 $ 1,696 MONEY MARKET 1 year $ 350 $ 350 3 years $ 456 $ 456 5 years $ 571 $ 571 10 years $ 909 $ 909 FUND BASICS INVESTMENT DETAILS THE STOCK FUNDS INVESTMENT OBJECTIVE Each fund seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES AIR TRANSPORTATION PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in the regional, national, and international movement of passengers, mail, and freight via aircraft. These companies may include, for example, major airlines, commuter airlines, air cargo and express delivery operators, airfreight forwarders, and companies that provide equipment or services to these companies, such as aviation service firms and manufacturers of aeronautical equipment. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. AUTOMOTIVE PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in the manufacture, marketing or sale of automobiles, trucks, specialty vehicles, parts, tires, and related services. These companies may include, for example, companies involved with the manufacture and distribution of vehicles, vehicle parts and tires (either original equipment or for the after market) and companies involved in the retail sale of vehicles, parts, or tires. They may also include companies that provide automotive-related services to manufacturers, distributors or consumers. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. BIOTECHNOLOGY PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in the research, development, and manufacture of various biotechnological products, services, and processes. These companies may include, for example, companies involved with applications and developments in such areas as human health care (e.g., cancer, infectious disease, diagnostics and therapeutics); pharmaceuticals (e.g., new drug development and production); agricultural and veterinary applications (e.g., improved seed varieties, animal growth hormones); chemicals (e.g., enzymes, toxic waste treatment); medical/surgical (e.g., epidermal growth factor, in vivo imaging/therapeutics); and industry (e.g., biochips, fermentation, enhanced mineral recovery). They may also include companies that manufacture biotechnological and biomedical products, including devices and instruments; companies that provide biotechnological processes or services; companies that provide scientific and technological advances in biotechnology; and companies involved with new or experimental technologies such as genetic engineering, hybridoma and recombinant DNA techniques and monoclonal antibodies. FMR may also invest the fund's assets in securities of companies that distribute biotechnological and biomedical products, including devices and instruments, and companies that benefit significantly from scientific and technological advances in biotechnology. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. BROKERAGE AND INVESTMENT MANAGEMENT PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in stock brokerage, commodity brokerage, investment banking, tax-advantaged investment or investment sales, investment management, or related investment advisory services. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. BUSINESS SERVICES AND OUTSOURCING PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in providing business-related services to companies and other organizations. These companies may include those that provide, for example, data processing, consulting, outsourcing, temporary employment, market research or database services, printing, advertising, computer programming, credit reporting, claims collection, mailing and photocopying, typically on a contractual or fee basis. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. CHEMICALS PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in the research, development, manufacture or marketing of products or services related to the chemical process industries. These companies may include, for example, companies involved with products such as basic and intermediate organic and inorganic chemicals, plastics, synthetic fibers, fertilizers, industrial gases, flavorings, fragrances, biological materials, catalysts, carriers, additives, and process aids. They may also include companies providing design, engineering, construction, and consulting services to companies engaged in chemical processing. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. COMPUTERS PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in research, design, development, manufacture or distribution of products, processes or services that relate to currently available or experimental hardware technology within the computer industry. These companies may include, for example, companies that provide products or services such as mainframes, minicomputers, microcomputers, peripherals, computer and office equipment wholesalers, software retailers, data or information processing, office or factory automation, robotics, artificial intelligence, computer-aided design, medical technology, engineering and manufacturing, data communications and software. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. CONSTRUCTION AND HOUSING PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in the design and construction of residential, commercial, industrial and public works facilities, as well as companies engaged in the manufacture, supply, distribution or sale of products or services to these construction industries. These companies may include, for example, companies that produce basic building materials such as cement, aggregates, gypsum, timber, and wall and floor coverings; companies that supply home furnishings; and companies that provide engineering or contracting services. They may also include companies involved in real estate development and construction financing such as homebuilders, architectural and design firms, and property managers, and companies involved in the home improvement and maintenance industry, including building material retailers and distributors, household service firms, and those companies that supply such companies. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. CONSUMER INDUSTRIES PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in the manufacture and distribution of goods to consumers both domestically and internationally. These companies may include, for example, companies that manufacture or sell durable goods such as homes, cars, boats, furniture, major appliances, and personal computers; and companies that manufacture, wholesale, or retail non-durable goods such as food, beverages, tobacco, health care products, household and personal care products, apparel, and entertainment products (e.g., books, magazines, TV, cable, movies, music, gaming, sports). They may also include companies that provide consumer services such as lodging, child care, convenience stores, and car rentals. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. CYCLICAL INDUSTRIES PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in the research, development, manufacture, distribution, supply, or sale of materials, equipment, products or services related to cyclical industries. These companies may include, for example, companies in the the automotive, chemical, construction and housing, defense and aerospace, environmental services, industrial equipment and materials, paper and forest products, and transportation industries. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. DEFENSE AND AEROSPACE PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in the research, manufacture or sale of products or services related to the defense or aerospace industries. These companies may include, for example, companies that provide the following products or services: air transport; defense electronics; aircraft or spacecraft production; missile design; 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. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. DEVELOPING COMMUNICATIONS PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in the development, manufacture or sale of emerging communications services or equipment. Emerging communications are those which derive from new technologies or new applications of existing technologies. These companies may include, for example, companies involved in cellular communications, software development, video conferencing, data processing, paging, personal communications networks, special mobile radio, facsimile, fiber optic transmission, voicemail, microwave, satellite, local and wide area networking, and other transmission electronics. FMR places less emphasis on traditional communications companies such as traditional telephone utilities and large long distance carriers. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. ELECTRONICS PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in the design, manufacture, or sale of electronic components (semiconductors, connectors, printed circuit boards and other components); equipment vendors to electronic component manufacturers; electronic component distributors; and electronic instruments and electronic systems vendors. These companies may include, for example, companies involved in all aspects of the electronics business and in new technologies or specialty areas such as defense electronics, medical electronics, consumer electronics, advanced design and manufacturing technologies (e.g., computer-aided design and computer-aided manufacturing, computer-aided engineering, and robotics), and lasers and electro-optics. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. ENERGY PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in the energy field, including the conventional areas of oil, gas, electricity and coal, and newer sources of energy such as nuclear, geothermal, oil shale, and solar power. These companies may include, for example, companies that produce, generate, refine, control, transmit, market, distribute or measure energy or energy fuels such as petro-chemicals; companies involved in providing products and services to companies in the energy field; companies involved in energy research or experimentation; and companies involved in the exploration of new sources of energy, conservation, and energy-related pollution control. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. ENERGY SERVICE PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in the energy service field, including those that provide services and equipment to the conventional areas of oil, gas, electricity and coal, and newer sources of energy such as nuclear, geothermal, oil shale, and solar power. These companies may include, for example, companies providing services and equipment for drilling processes such as offshore and onshore drilling; companies involved in production and well maintenance; companies involved in exploration engineering, data and technology; companies that provide geological and geophysical services; companies involved in energy transport; companies involved in geothermal, electric or nuclear plant design or construction; and companies with a variety of products or services including oil tool rental, underwater well services, helicopter services, energy-related capital equipment, and mining-related equipment or services. They may also include companies that provide products and services to these companies. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. ENVIRONMENTAL SERVICES PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in the research, development, manufacture or distribution of products, processes, or services related to waste management or pollution control. These companies may include, for example, companies involved in the transportation, treatment, and disposal of 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. They may also include companies that provide design, engineering, construction, and consulting services to companies engaged in waste management or pollution control. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. FINANCIAL SERVICES PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80%, of the fund's assets in securities of companies principally engaged in providing financial services to consumers and industry. These companies may include, for example, commercial banks, savings and loan associations, brokerage companies, insurance companies, real estate-related companies, leasing companies, and consumer and industrial finance companies. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. FOOD AND AGRICULTURE PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in the manufacture, sale, or distribution of food and beverage products, agricultural products, and products related to the development of new food technologies. These companies may include, for example, companies that sell products and services such as meat and poultry processing and wholesale and retail distribution and warehousing of food and food-related products, including restaurants and grocery stores; companies that manufacture and distribute products including soft drinks, packaged food products (such as cereals, pet foods, and frozen foods), health food and dietary products, wood products, tobacco, fertilizer and agricultural machinery; and companies engaged in the development of new technologies to provide, for example, improved hybrid seeds, new and safer food storage and new enzyme technologies. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. GOLD PORTFOLIO FMR normally invests the fund's assets primarily in common stocks and in certain precious metals. FMR invests the fund's assets primarily in companies engaged in exploration, mining, processing, or dealing in gold, or to a lesser degree, in silver, platinum, diamonds, or other precious metals and minerals. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in gold-related activities, and in gold bullion or coins. Gold-related activities may include exploration, mining, processing, or dealing in gold or the manufacture or distribution of gold products such as jewelry, watches and gold foil and leaf. FMR treats investments in instruments whose value is linked to the price of gold as investments in gold bullion or coins. FMR may also invest the fund's assets in other precious metals in the form of bullion, coins, securities indexed to the price of precious metals, and securities of companies that manufacture and distribute precious metal and minerals products (such as jewelry, watches, and metal foils and leaf) and companies that invest in other companies engaged in gold and other precious metal and mineral-related activities. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. HEALTH CARE PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in the design, manufacture, or sale of products or services used for or in connection with health care or medicine. These companies may include, for example, pharmaceutical companies; companies involved in biotechnology, medical diagnostic, biochemical or other health care research and development; companies involved in the operation of health care facilities; and other companies involved in the design, manufacture, or sale of health care-related products or services such as medical, dental and optical products, hardware or services. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. HOME FINANCE PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in investing in real estate, usually through mortgages and other consumer-related loans. These companies may include, for example, mortgage banking companies, real estate investment trusts, government-sponsored enterprises, consumer finance companies, savings and loan associations, savings banks, building and loan associations, cooperative banks, commercial banks, and other depository institutions. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. INDUSTRIAL EQUIPMENT PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in the manufacture, distribution, or service of products and equipment for the industrial sector, including integrated producers of capital equipment (such as general industrial machinery, farm equipment, and computers), parts suppliers, and subcontractors. These companies may include, for example, companies that provide service establishment, railroad, textile, farming, mining, oilfield, semiconductor, and telecommunications equipment; companies that manufacture products or service equipment for trucks, construction, transportation or machine tools; companies that manufacture products or service equipment for the food, clothing or sporting goods industries; cable equipment companies; and office automation companies. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. INDUSTRIAL MATERIALS PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in the manufacture, mining, processing, or distribution of raw materials and intermediate goods used in the industrial sector. These materials and goods may include, for example, chemicals, metals, textiles, wood products, cement and gypsum. These companies may include, for example, mining, processing, transportation, and distribution companies, including equipment suppliers and railroads. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. INSURANCE PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in underwriting, reinsuring, selling, distributing, or placing of property and casualty, life, or health insurance. These companies may include, for example, companies that provide a specific type of insurance, such as life or health insurance, those that offer a variety of insurance products, and those that provide insurance services such as insurance brokers, reciprocals and claims processors. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. LEISURE PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in the design, production, or distribution of goods or services in the leisure industries. These companies may include, for example, companies that provide goods or services including: television and radio broadcast or manufacture (including cable television); motion pictures and photography; recordings and musical instruments; publishing, including newspapers and magazines; sporting goods and camping and recreational equipment; sports arenas and gaming casinos; toys and games, including video and other electronic games; amusement and theme parks; travel and travel-related services; hotels and motels; leisure apparel or footwear; fast food, beverages, restaurants, and tobacco products. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. MEDICAL DELIVERY PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in the ownership or management of hospitals, nursing homes, health maintenance organizations, and other companies specializing in the delivery of health care services. These companies may include, for example, companies that operate acute care, psychiatric, teaching, or specialized treatment hospitals; companies that provide outpatient surgical, outpatient rehabilitation, or other specialized care, home health care, drug and alcohol abuse treatment, and dental care; companies that operate comprehensive health maintenance organizations and nursing homes for the elderly and disabled; companies that supply medical equipment; and companies that provide related services. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. MEDICAL EQUIPMENT AND SYSTEMS PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in research, development, manufacture, distribution, supply or sale of medical equipment and devices and related technologies. These companies may include, for example, companies involved in the design and manufacture of medical equipment and devices, drug delivery technologies, hospital equipment and supplies, medical instrumentation and medical diagnostics. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. MULTIMEDIA PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in the development, production, sale, and distribution of goods or services used in the broadcast and media industries. These companies may include, for example, advertising companies; companies that own, operate or broadcast free or pay television, radio or cable stations; theaters; film studios; publishers or sellers of newspapers, magazines, books or video products; printing, cable television and video companies and equipment providers; pay-per-view television companies; companies involved in emerging technologies for the broadcast and media industries; cellular communications companies; companies involved in the development, syndication and transmission of television, movie programming, advertising and cellular communications; companies that distribute data-based information; and other companies involved in the ownership, operation, or development of media products or services. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. NATURAL GAS PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in the production, transmission, and distribution of natural gas, and involved in the exploration of potential natural gas sources, as well as those companies that provide services and equipment to natural gas producers, refineries, cogeneration facilities, converters, and distributors. These companies may include, for example, companies involved in the production, refinement, transmission, distribution, marketing, control, or measurement of natural gas; companies involved in exploration of potential natural gas sources; companies involved in natural gas research or experimentation; companies working toward the solution of energy problems, such as energy conservation or pollution control through the use of natural gas; companies working toward technological advances in the natural gas field; and other companies providing equipment or services to the field. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. NATURAL RESOURCES PORTFOLIO FMR normally invests the fund's assets primarily in common stocks and in certain precious metals. FMR invests the fund's assets primarily in companies that own or develop natural resources, or supply goods and services to such companies. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in owning or developing natural resources, or supplying goods and services to such companies, and in precious metals. These companies may include, for example, companies involved either directly or through subsidiaries in exploring, mining, refining, processing, transporting, fabricating, dealing in, or owning natural resources. Natural resources include precious metals (e.g., gold, platinum, and silver), ferrous and nonferrous metals (e.g., iron, aluminum, and copper), strategic metals (e.g., uranium and titanium), hydrocarbons (e.g., coal, oil, and natural gases), chemicals, forest products, real estate, food, textile and tobacco products, and other basic commodities. FMR treats investments in instruments whose value is linked to the price of precious metals as investments in precious metals. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. PAPER AND FOREST PRODUCTS PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in the manufacture, research, sale, or distribution of paper products, packaging products, building materials (such as lumber and paneling products), and other products related to the paper and forest products industry. These companies may include, for example, paper production and office product companies, printers, and publishers. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. PRECIOUS METALS AND MINERALS PORTFOLIO FMR normally invests the fund's assets primarily in common stocks and in certain precious metals. FMR invests the fund's assets primarily in companies engaged in exploration, mining, processing, or dealing in gold, silver, platinum, diamonds, or other precious metals and minerals. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in exploration, mining, processing, or dealing in gold, silver, platinum, diamonds, or other precious metals and minerals, and in precious metals. These companies may include, for example, companies that manufacture and distribute precious metal and minerals products (such as jewelry, watches, and metal foils and leaf). FMR treats investments in instruments whose value is linked to the price of precious metals as investments in precious metals. FMR may also invest the fund's assets in securities of companies that invest in other companies engaged in gold and other precious metal and mineral-related activities. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. REGIONAL BANKS PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in accepting deposits and making commercial and principally non-mortgage consumer loans. These companies concentrate their operations in a specific part of the country and may include, for example, state chartered banks, savings and loan institutions, banks that are members of the Federal Reserve System, and U.S. institutions whose deposits are not insured by the federal government. In addition, these companies may offer merchant banking, consumer and commercial finance, discount brokerage, leasing and insurance. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. RETAILING PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in merchandising finished goods and services primarily to individual consumers. These companies may include, for example, general merchandise retailers; drug and department stores; suppliers of goods and services for homes and yards; specialty retailers selling a single category of merchandise such as food, apparel, jewelry, toys, electronics, computers or home improvement products; motor vehicle and marine dealers; warehouse membership clubs; mail order operations; and companies involved in alternative selling methods such as direct telephone marketing, mail order, membership warehouse clubs, computer, or video-based electronic systems. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. SOFTWARE AND COMPUTER SERVICES PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in research, design, production or distribution of products or processes that relate to software or information-based services. These companies may include, for example, companies that design products such as systems-level software (to run the basic functions of a computer) or applications software (for one type of work) for general use or use by certain industries or groups; companies that provide communications software; and companies that provide time-sharing services, computer consulting or facilities management services, and data communications services. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. TECHNOLOGY PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in offering, using or developing products, processes or services that will provide or will benefit significantly from technological advances and improvements. These companies may include, for example, companies that develop, produce or distribute products or services in the computer, semi-conductor, electronics, communications, health care, and biotechnology sectors. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. TELECOMMUNICATIONS PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in the development, manufacture, or sale of communications services or communications equipment. These companies may include, for example, companies that provide traditional local and long-distance telephone service or equipment; companies that provide cellular, paging, local and wide area product networks or equipment; companies that provide satellite, microwave and cable television or equipment; and companies involved in new technologies such as fiber optics, semiconductors, and data transmission. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. TRANSPORTATION PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in providing transportation services or companies principally engaged in the design, manufacture, distribution, or sale of transportation equipment. These companies may include, for example, companies involved in the movement of freight or people such as airline, railroad, ship, truck and bus companies; equipment manufacturers (including makers of trucks, automobiles, planes, containers, railcars or other modes of transportation and related products); parts suppliers; companies that provide leasing and maintenance for automobiles, trucks, containers, railcars and planes; and companies that sell fuel-saving devices to the transportation industry and those that sell insurance and software developed primarily for transportation companies. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. UTILITIES GROWTH PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in the public utilities industry and companies deriving a majority of their revenues from their public utility operations. These companies may include, for example, companies that manufacture, produce, generate, transmit or sell gas or electric energy; water supply, waste disposal and sewerage, and sanitary service companies; and companies involved in the communication field, including telephone, telegraph, satellite, microwave and the provision of other communication facilities for the public benefit. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. DESCRIPTION OF PRINCIPAL SECURITY TYPES EQUITY SECURITIES represent an ownership interest, or the right to acquire an ownership interest, in an issuer. Different types of equity securities provide different voting and dividend rights and priority in the event of the bankruptcy of the issuer. Equity securities include common stocks, preferred stocks, convertible securities and warrants. PRINCIPAL INVESTMENT RISKS Many factors affect each fund's performance. A fund's share price changes daily based on changes in market conditions and interest rates and in response to other economic, political or financial developments. A fund's reaction to these events will be affected by the types of the securities in which the fund invests, the financial condition, industry and economic sector, and geographic location of an issuer, and the fund's level of investment in the securities of that issuer. Because FMR concentrates each fund's investments in a particular industry or group of industries, each fund's performance is expected to be closely tied to economic and market conditions within that industry or group of industries and to be more volatile than the performance of less concentrated funds. In addition, because FMR may invest a significant percentage of the assets of each fund (except Financial Services, Home Finance and Regional Banks) in a single issuer, the fund's performance could be closely tied to the market value of that one issuer and could be more volatile than the performance of more diversified funds. When you sell your shares of a fund, they could be worth more or less than what you paid for them. The following factors may significantly affect a fund's performance: STOCK MARKET VOLATILITY. The value of equity securities fluctuates in response to issuer, political, market and economic developments. In the short term, equity prices can fluctuate dramatically in response to these developments. Different parts of the market and different types of equity securities can react differently to these developments. For example, large cap stocks can react differently than small cap stocks, and "growth" stocks can react differently than "value" stocks. Issuer, political or economic developments can affect a single issuer, issuers within an industry or economic sector or geographic region, or the market as a whole. FOREIGN EXPOSURE. Foreign securities, foreign currencies, and securities issued by U.S. entities with substantial foreign operations can involve additional risks relating to political, economic or regulatory conditions in foreign countries. These risks include fluctuations in foreign currencies; withholding or other taxes; trading, settlement, custodial and other operational risks; and the less stringent investor protection and disclosure standards of some foreign markets. All of these factors can make foreign investments, especially those in emerging markets, more volatile and potentially less liquid than U.S. investments. In addition, foreign markets can perform differently than the U.S. market. INDUSTRY CONCENTRATION. Market conditions, interest rates, and economic, regulatory or financial developments could significantly affect a single industry or a group of related industries, and the securities of companies in that industry or group of industries could react similarly to these or other developments. The AIR TRANSPORTATION industry can be significantly affected by competition within the industry, domestic and foreign economies, government regulation, and the price of fuel. Airline deregulation has substantially diminished the government's role in the air transport industry while promoting an increased level of competition. However, regulations and policies of various domestic and foreign governments can still affect the profitability of individual carriers as well as the entire industry. The AUTOMOTIVE industry can be highly cyclical and companies in the industry may suffer periodic operating losses. The industry can be significantly affected by labor relations and fluctuating component prices. While most of the major manufacturers are large, financially strong companies, many others are small and may be non-diversified in both product line and customer base. The BIOTECHNOLOGY industry can be significantly affected by patent considerations, intense competition, rapid technological change and obsolescence, and government regulation. Biotechnology companies may have persistent losses during a new product's transition from development to production, and revenue patterns may be erratic. The BROKERAGE AND INVESTMENT MANAGEMENT industry can be significantly affected by changes in regulations, brokerage commission structure, and a competitive environment combined with the high operating leverage inherent in companies in this industry. The performance of companies in this industry can be closely tied to the stock and bond markets and can suffer during market declines. Revenues often depend on overall market activity. The BUSINESS SERVICES AND OUTSOURCING industry 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. The industry can be significantly affected by competitive pressures, such as technological developments, fixed-rate pricing, and the ability to attract and retain skilled employees. The CHEMICAL industry can be significantly affected by intense competition, product obsolescence, and government regulation. As regulations are developed and enforced, chemical companies may be required to alter or cease production of a product, to pay fines, to pay for cleaning up a disposal site, or to agree to restrictions on their operations. In addition, some of the materials and processes used by these companies involve hazardous components. There are risks associated with their production, handling and disposal. The COMPUTER industry can be significantly affected by competitive pressures. For example, as product cycles shorten and manufacturing capacity increases, these companies could become increasingly subject to aggressive pricing, which hampers profitability. Profitability can also be affected by changing domestic and international demand, research and development costs, and product obsolescence. The CONSTRUCTION AND HOUSING industry can be significantly affected by changes in government spending on housing subsidies, public works and transportation facilities such as highways and airports, as well as changes in interest rates, consumer confidence and spending, taxation, demographic patterns, housing starts, and the level of new and existing home sales. The CONSUMER industries can be significantly affected by the performance of the overall economy, interest rates, competition, and consumer confidence. Success 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. The CYCLICAL industries can be significantly affected by general economic trends, including employment, economic growth and interest rates, changes in consumer sentiment and spending, commodity prices, legislation, government regulation and spending, import controls, and worldwide competition. For example, commodity price declines and unit volume reductions resulting from an over-supply of materials used in cyclical industries can adversely affect those industries. Furthermore, a company in the cyclical industries can be subject to liability for environmental damage, depletion of resources, and mandated expenditures for safety and pollution control. The DEFENSE AND AEROSPACE industry can be significantly affected by government defense and aerospace regulation and spending policies because companies involved in the defense and aerospace industry rely to a large extent on U.S. (and other) government demand for their products and services. Defense spending is currently under pressure from efforts to control the U.S. budget deficit. The DEVELOPING COMMUNICATIONS industry can be significantly affected by failure to obtain, or delays in obtaining, financing or regulatory approval, intense competition, product compatibility, consumer preferences, and rapid obsolescence. The ELECTRONICS industry can be significantly affected by rapid obsolescence, intense competition and global demand. The ENERGY industry can be significantly affected by fluctuations in price and supply of energy fuels caused by events relating to international politics, energy conservation, the success of exploration projects, and tax and other government regulations. The ENERGY SERVICE industry can be significantly affected by the supply of and demand for specific products or services, the supply of and demand for oil and gas, the price of oil and gas, exploration and production spending, government regulation, world events, and economic conditions. The ENVIRONMENTAL SERVICES industry can be significantly affected by intense competition and legislation resulting in more strict government regulations and enforcement policies for both commercial and governmental generators of waste materials as well as specific expenditures designated for remedial cleanup efforts. As regulations are developed and enforced, companies may be required to alter or cease production of a product or service or to agree to restrictions on their operations. In addition, hazardous materials involved in environmental services present significant liability risk. The FINANCIAL SERVICES industries are subject to extensive government regulation which can limit both the amounts and types of loans and other financial commitments they can make, and the interest rates and fees they can charge. Profitability 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 affect the financial services industries. Insurance companies can be subject to severe price competition. The financial services industries are currently undergoing relatively rapid change as existing distinctions between financial service segments become less clear. For 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. The FOOD AND AGRICULTURE industry can be significantly 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 federal and state government agencies. The GOLD industry can be significantly affected by international monetary and political developments such as currency devaluations or revaluations, central bank movements, economic and social conditions within a country, trade imbalances, or trade or currency restrictions between countries. The prices of gold and other precious metal mining securities can be subject to substantial fluctuations over short periods of time. Because much of the world's gold reserves are located in South Africa, the social and economic conditions there and in neighboring countries can affect gold and gold-related companies located in South Africa and worldwide. The HEALTH CARE industries are subject to government regulation and government approval of products and services, which could have a significant effect on price and availability. Furthermore, the types of products or services produced or provided by health care companies quickly can become obsolete. The HOME FINANCE industry can be significantly affected by regulatory changes, interest rate movements, home mortgage demand, refinancing activity and residential delinquency trends. The residential real estate finance industry has changed rapidly over the last decade. Regulatory changes at federally insured institutions, in response to a high failure rate, have mandated higher capital ratios and more prudent underwriting. This reduced capacity has created growth opportunities for uninsured companies and secondary market products to fill unmet demand for home finance. Change continues in the origination, packaging, selling, holding, and insuring of home finance products. The INDUSTRIAL EQUIPMENT industry can be significantly affected by overall capital spending levels, which are influenced by an individual company's profitability and broader factors such as interest rates and foreign competition. The industrial equipment industry can also be significantly affected by economic cycles, technical obsolescence, labor relations, and government regulations. The INDUSTRIAL MATERIALS industry can be significantly affected by the level and volatility of commodity prices, the exchange value of the dollar, import controls, and worldwide competition. At times, worldwide production of industrial materials has exceeded demand as a result of over-building or economic downturns, which leads to commodity price declines and unit price reductions. Companies in the industry can also be adversely affected by liability for environmental damage, depletion of resources, and mandated expenditures for safety and pollution control. The INSURANCE industry can be significantly affected by interest rates, general economic conditions, and price and marketing competition. Property and casualty insurance profits can be affected by weather catastrophes and other natural disasters. Life and health insurance profits can be affected by mortality and morbidity rates. Insurance companies can be adversely affected by inadequacy of cash reserves, the inability to collect from reinsurance carriers, liability for the coverage of environmental clean-up costs from past years, and as yet unanticipated liabilities. Also, insurance companies are subject to extensive government regulation, including the imposition of maximum rate levels, and can be adversely affected by proposed or potential tax law changes. The LEISURE industry can be significantly affected by changing consumer tastes and intense competition. The industry has reacted strongly to technological developments and to the threat of government regulation. The MEDICAL DELIVERY industry is subject to extensive government regulation, and can be significantly affected by government reimbursement for medical expenses. Federal and state governments provide a substantial percentage of revenues to health care service providers via Medicare and Medicaid. The industry can also be significantly affected by rising costs of medical products and services, a shift away from traditional health insurance toward health maintenance organizations, and increased emphasis on outpatient services. The MEDICAL EQUIPMENT AND SYSTEMS industry can be significantly affected by patent considerations, rapid technological change and obsolescence, government regulation, and government reimbursement for medical expenses. The MULTIMEDIA industry can be significantly affected by the federal deregulation of cable and broadcasting, competitive pressures, and government regulation, including regulation of the concentration of investment in AM, FM, or TV stations. The NATURAL GAS industry is subject to changes in price and supply of both conventional and alternative energy sources. Swift price and supply fluctuations may be caused by events relating to international politics, energy conservation, the success of energy source exploration projects, and tax and other domestic and foreign government regulations. The NATURAL RESOURCES industries can be significantly affected by events relating to international political and economic developments, energy conservation, the success of exploration projects, and tax and other government regulations. The PAPER AND FOREST PRODUCTS industry can be significantly affected by the health of the economy, worldwide production capacity, and interest rates, which may affect product pricing, costs and operating margins. These variables can also affect the level of industry and consumer capital spending for paper and forest products. The PRECIOUS METALS AND MINERALS industry can be significantly affected by 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. The prices of precious metal mining securities can be subject to substantial fluctuations over short periods of time. Because much of the world's gold reserves are located in South Africa, the social and economic conditions there and in neighboring countries can affect gold and gold-related companies located in South Africa and worldwide. The REGIONAL BANKINg industry can be significantly affected by legislation currently being considered that would reduce the separation between commercial and investment banking businesses and could change the laws governing capitalization and the savings and loan industry. The services offered by banks could 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 can 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 banks which face exposure to credit losses and are significantly affected by changes in interest rates. The RETAIL industry can be significantly affected by consumer spending, which is affected by general economic conditions and consumer confidence levels. The retailing industry is highly competitive, and a company's success is often tied to its ability to anticipate changing consumer tastes. The SOFTWARE AND COMPUTER SERVICES industry can be significantly affected by competitive pressures. For example, an increasing number of companies and new product offerings can lead to aggressive pricing and slower selling cycles. The TECHNOLOGY industries can be significantly affected by obsolescence of existing technology, short product cycles, falling prices and profits, and competition from new market entrants. The TELECOMMUNICATIONS industry, particularly telephone operating companies, is subject to both federal and state government regulations of rates of return and services that may be offered. Many telecommunications companies fiercely compete for market share. The TRANSPORTATION industry can be significantly affected by changes in the economy, fuel prices, labor relations, and insurance costs. The trend in the United States has been to deregulate the transportation industry, which could have a favorable long-term effect, but future government decisions may adversely affect transportation companies. The UTILITIES industries can be significantly affected by government regulation, financing difficulties, supply and demand of services or fuel, and natural resource conservation. ISSUER-SPECIFIC CHANGES. Changes in the financial condition of an issuer, changes in specific economic or political conditions that affect a particular type of security or issuer, and changes in general economic or political conditions can affect the value of an issuer's securities. The value of securities of smaller, less well-known issuers can be more volatile than that of larger issuers. Smaller issuers can have more limited product lines, markets or financial resources. In response to market, economic, political or other conditions, FMR may temporarily use a different investment strategy for defensive purposes. If FMR does so, different factors could affect a fund's performance and the fund may not achieve its investment objective. THE MONEY MARKET FUND INVESTMENT OBJECTIVE MONEY MARKET PORTFOLIO seeks to provide high current income, consistent with preservation of capital and liquidity. PRINCIPAL INVESTMENT STRATEGIES FMR invests the fund's assets in U.S. dollar-denominated money market securities of domestic and foreign issuers, including U.S. Government securities and repurchase agreements. FMR also may enter into reverse repurchase agreements for the fund. FMR invests at least 80% of the fund's assets in money market instruments. FMR will invest more than 25% of the fund's total assets in the financial services industry. In buying and selling securities for the fund, FMR complies with industry-standard requirements for money market funds regarding the quality, maturity and diversification of the fund's investments. FMR stresses maintaining a stable $1.00 share price, liquidity and income. DESCRIPTION OF PRINCIPAL SECURITY TYPES MONEY MARKET SECURITIES are high-quality, short-term se curities that pay a fixed, variable or floating interest rate. Securities are often specifically structured so that they are eligible investments for a money market fund. For example, in order to satisfy the maturity restrictions for a money market fund, some money market securities have demand or put features which have the effect of shortening the security's maturity. Taxable money market securities include bank certificates of deposit, bank acceptances, bank time deposits, notes, commercial paper and U.S. Government securities. PRINCIPAL INVESTMENT RISKS Many factors affect the fund's performance. The fund's yield will change daily based on changes in interest rates and other market conditions. Although the fund is managed to maintain a stable $1.00 share price, there is no guarantee that the fund will be able to do so. For example, a major increase in interest rates or a decrease in the credit quality of the issuer of one of the fund's investments could cause the fund's share price to decrease. While the fund will be charged premiums by a mutual insurance company for coverage of specified types of losses related to default or bankruptcy on certain securities, the fund may incur losses regardless of the insurance. The following factors may significantly affect the fund's performance: INTEREST RATE CHANGES. Money market securities have varying levels of sensitivity to changes in interest rates. In general, the price of a money market security can fall when interest rates rise and can rise when interest rates fall. Securities with longer maturities and the securities of issuers in the financial services sector can be more sensitive to interest rate changes. Short-term securities tend to react to changes in short-term interest rates. FOREIGN EXPOSURE. Issuers located in foreign countries and entities located in foreign countries that provide credit support or a maturity-shortening structure can involve increased risks. Extensive public information about the issuer or provider may not be available and unfavorable political, economic or governmental developments could affect the value of the security. FINANCIAL SERVICES EXPOSURE. Financial services companies are highly dependent on the supply of short-term financing. The value of securities of issuers in the financial services sector can be sensitive to changes in government regulation and interest rates and to economic downturns in the United States and abroad. ISSUER-SPECIFIC CHANGES. Changes in the financial condition of an issuer, changes in specific economic or political conditions that affect a particular type of issuer, and changes in general economic or political conditions can affect the credit quality or value of an issuer's securities. Entities providing credit support or a maturity-shortening structure also can be affected by these types of changes. If the structure of a security fails to function as intended, the security could decline in value. FUNDAMENTAL INVESTMENT POLICIES The policies discussed below are fundamental, that is, subject to change only by shareholder approval. AIR TRANSPORTATION PORTFOLIO invests primarily in companies engaged in the regional, national and international movement of passengers, mail, and freight via aircraft. AUTOMOTIVE PORTFOLIO invests primarily in companies engaged in the manufacture, marketing or sale of automobiles, trucks, specialty vehicles, parts, tires, and related services. BIOTECHNOLOGY PORTFOLIO invests primarily in companies engaged in the research, development, and manufacture of various biotechnological products, services and processes. BROKERAGE AND INVESTMENT MANAGEMENT PORTFOLIO invests primarily in companies engaged in stock brokerage, commodity brokerage, investment banking, tax-advantaged investment or investment sales, investment management, or related investment advisory services. BUSINESS SERVICES AND OUTSOURCING PORTFOLIO invests primarily in companies that provide business-related services to companies and other organizations. CHEMICALS PORTFOLIO invests primarily in companies engaged in the research, development, manufacture or marketing of products or services related to the chemical process industries. COMPUTERS PORTFOLIO invests primarily in companies engaged in research, design, development, manufacture or distribution of products, processes or services that relate to currently available or experimental hardware technology within the computer industry. CONSTRUCTION AND HOUSING PORTFOLIO invests primarily in companies engaged in the design and construction of residential, commercial, industrial and public works facilities, as well as companies engaged in the manufacture, supply, distribution or sale of products or services to these construction industries. CONSUMER INDUSTRIES PORTFOLIO invests primarily in companies engaged in the manufacture and distribution of goods to consumers both domestically and internationally. CYCLICAL INDUSTRIES PORTFOLIO invests primarily in companies engaged in the research, development, manufacture, distribution, supply, or sale of materials, equipment, products or services related to cyclical industries. DEFENSE AND AEROSPACE PORTFOLIO invests primarily in companies engaged in the research, manufacture or sale of products or services related to the defense or aerospace industries. DEVELOPING COMMUNICATIONS PORTFOLIO invests primarily in companies engaged in the development, manufacture or sale of emerging communications services or equipment. ELECTRONICS PORTFOLIO invests primarily in companies engaged in the design, manufacture, or sale of electronic components (semiconductors, connectors, printed circuit boards and other components); equipment vendors to electronic component manufacturers; electronic component distributors; and electronic instruments and electronic systems vendors. ENERGY PORTFOLIO invests primarily in companies in the energy field, including the conventional areas of oil, gas, electricity and coal, and newer sources of energy such as nuclear, geothermal, oil shale and solar power. ENERGY SERVICE PORTFOLIO invests primarily in companies in the energy service field, including those that provide services and equipment to the conventional areas of oil, gas, electricity and coal, and newer sources of energy such as nuclear, geothermal, oil shale and solar power. ENVIRONMENTAL SERVICES PORTFOLIO invests primarily in companies engaged in the research, development, manufacture or distribution of products, processes or services related to waste management or pollution control. FINANCIAL SERVICES PORTFOLIO invests primarily in companies that provide financial services to consumers and industry. FOOD AND AGRICULTURE PORTFOLIO invests primarily in companies engaged in the manufacture, sale, or distribution of food and beverage products, agricultural products, and products related to the development of new food technologies. GOLD PORTFOLIO invests primarily in companies engaged in exploration, mining, processing, or dealing in gold, or, to a lesser degree, in silver, platinum, diamonds, or other precious metals and minerals. HEALTH CARE PORTFOLIO invests primarily in companies engaged in the design, manufacture, or sale of products or services used for or in connection with health care or medicine. HOME FINANCE PORTFOLIO invests primarily in companies engaged in investing in real estate, usually through mortgages and other consumer-related loans. INDUSTRIAL EQUIPMENT PORTFOLIO invests primarily in companies engaged in the manufacture, distribution or service of products and equipment for the industrial sector, including integrated producers of capital equipment (such as general industrial machinery, farm equipment, and computers), parts suppliers and subcontractors. INDUSTRIAL MATERIALS PORTFOLIO invests primarily in companies engaged in the manufacture, mining, processing, or distribution of raw materials and intermediate goods used in the industrial sector. INSURANCE PORTFOLIO invests primarily in companies engaged in underwriting, reinsuring, selling, distributing, or placing of property and casualty, life, or health insurance. LEISURE PORTFOLIO invests primarily in companies engaged in the design, production, or distribution of goods or services in the leisure industries. MEDICAL DELIVERY PORTFOLIO invests primarily in companies engaged in the ownership or management of hospitals, nursing homes, health maintenance organizations, and other companies specializing in the delivery of health care services. MEDICAL EQUIPMENT AND SYSTEMS PORTFOLIO invests primarily in companies engaged in research, development, manufacture, distribution, supply or sale of medical equipment and devices and related technologies. MULTIMEDIA PORTFOLIO invests primarily in companies engaged in the development, production, sale and distribution of goods or services used in the broadcast and media industries. NATURAL GAS PORTFOLIO invests primarily in companies engaged in the production, transmission, and distribution of natural gas, and involved in the exploration of potential natural gas sources, as well as those companies that provide services and equipment to natural gas producers, refineries, cogeneration facilities, converters, and distributors. NATURAL RESOURCES PORTFOLIO invests primarily in companies that own or develop natural resources, or supply goods and services to such companies. PAPER AND FOREST PRODUCTS PORTFOLIO invests primarily in companies engaged in the manufacture, research, sale, or distribution of paper products, packaging products, building materials (such as lumber and paneling products), and other products related to the paper and forest products industry. 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. RETAILING PORTFOLIO invests primarily in companies engaged in merchandising finished goods and services primarily to individual consumers. SOFTWARE AND COMPUTER SERVICES PORTFOLIO invests primarily in companies engaged in research, design, production or distribution of products or processes that relate to software or information-based services. TECHNOLOGY PORTFOLIO invests primarily in companies which FMR believes have, or will develop, products, processes or services that will provide or will benefit significantly from technological advances and improvements. TELECOMMUNICATIONS PORTFOLIO invests primarily in companies engaged in the development, manufacture, or sale of communications services or communications equipment. TRANSPORTATION PORTFOLIO invests primarily in companies engaged in providing transportation services or companies engaged in the design, manufacture, distribution, or sale of transportation equipment. UTILITIES GROWTH PORTFOLIO invests primarily in companies in the public utilities industry and companies deriving a majority of their revenues from their public utility operations. MONEY MARKET PORTFOLIO seeks to provide high current income, consistent with preservation of capital and liquidity, by investing in a broad range of high quality money market instruments. EACH STOCK FUND seeks capital appreciation. With the exception of Business Services and Outsourcing, Cyclical Industries, Medical Equipment and Systems, and Natural Resources, each stock fund seeks to achieve its investment objective by investing primarily in equity securities, including common stocks and securities convertible into common stocks, and for Gold and Precious Metals and Minerals, in certain precious metals. For each stock fund (except Business Services and Outsourcing, Cyclical Industries, Medical Equipment and Systems, and Natural Resources), FMR does not place any emphasis on income when selecting securities, except when it believes that income may have a favorable effect on a security's market value. When FMR considers it appropriate for defensive purposes, each stock fund (except Business Services and Outsourcing, Cyclical Industries, Medical Equipment and Systems, and Natural Resources) may temporarily invest substantially in investment-grade debt securities. VALUING SHARES Each fund is open for business each day the New York Stock Exchange (NYSE) is open. Each fund's net asset value per share (NAV) is the value of a single share. Fidelity normally calculates each stock fund's NAV as of each hour, from 10:00 a.m. to the close of business of the NYSE, normally 4:00 p.m. Eastern time. On days when the NYSE closes early, Fidelity will calculate the last NAV for the stock funds as of the close of the NYSE. In addition, Fidelity will not calculate a stock fund's NAV if trading on the NYSE is restricted or as permitted by the Securities and Exchange Commission (SEC). Fidelity normally calculates the money market fund's NAV as of the close of the NYSE, normally 4:00 p.m. Eastern time. However, the money market fund's NAV may be calculated earlier if trading on the NYSE is restricted or as permitted by the SEC. Each fund's assets are valued as of these times for the purpose of computing the fund's NAV. To the extent that each fund's assets are traded in other markets on days when the NYSE is closed, the value of the fund's assets may be affected on days when the fund is not open for business. In addition, trading in some of a fund's assets may not occur on days when the fund is open for business. The money market fund's assets are valued on the basis of amortized cost. Each stock fund's assets are valued primarily on the basis of market quotations. Certain short-term securities are valued on the basis of amortized cost. If market quotations are not readily available for a security or if a security's value has been materially affected by events occurring after the close of the exchange or market on which the security is principally traded (for example, a foreign exchange or market), that security may be valued by another method that the Board of Trustees believes accurately reflects fair value. A security's valuation may differ depending on the method used for determining value. SHAREHOLDER INFORMATION BUYING AND SELLING SHARES GENERAL INFORMATION Fidelity Investments was established in 1946 to manage one of America's first mutual funds. Today, Fidelity is the largest mutual fund company in the country, and is known as an innovative provider of high-quality financial services to individuals and institutions. In addition to its mutual fund business, the company operates one of America's leading discount brokerage firms, Fidelity Brokerage Services, Inc. (FBSI). Fidelity is also a leader in providing tax-advantaged retirement plans for individuals investing on their own or through their employer. For account, product and service information, please use the following Web site and phone numbers: (small solid bullet) For information over the Internet, visit Fidelity's Web site at www.fidelity.com. (small solid bullet) For accessing account information automatically by phone, use TouchTone Xpress(registered trademark), 1-800-544-5555. (small solid bullet) For exchanges and redemptions, 1-800-544-7777. (small solid bullet) For account assistance, 1-800-544-6666. (small solid bullet) For mutual fund and retirement information, 1-800-544-8888. (small solid bullet) For brokerage information, 1-800-544-7272. (small solid bullet) TDD - Service for the Deaf and Hearing-Impaired, 1-800-544-0118 (9:00 a.m.-9:00 p.m. Eastern time). Please use the following addresses: BUYING SHARES Fidelity Investments P.O. Box 770001 Cincinnati, OH 45277-0002 OVERNIGHT EXPRESS Fidelity Investments 2300 Litton Lane - KH1A Hebron, KY 41048 SELLING SHARES Fidelity Investments P.O. Box 660602 Dallas, TX 75266-0602 OVERNIGHT EXPRESS Fidelity Investments Attn: Redemptions - CP6I 400 East Las Colinas Blvd. Irving, TX 75039-5517 You may buy or sell shares of the funds through a retirement account or an investment professional. If you invest through a retirement account or an investment professional, the procedures for buying, selling and exchanging shares of a fund and the account features and policies may differ. Additional fees may also apply to your investment in a fund, including a transaction fee if you buy or sell shares of the fund through a broker or other investment professional. Certain methods of contacting Fidelity, such as by telephone or electronically, may be unavailable or delayed (for example, during periods of unusual market activity). In addition, the level and type of service available may be restricted based on criteria established by Fidelity. The different ways to set up (register) your account with Fidelity are listed in the following table. WAYS TO SET UP YOUR ACCOUNT INDIVIDUAL OR JOINT TENANT FOR YOUR GENERAL INVESTMENT NEEDS RETIREMENT FOR TAX-ADVANTAGED RETIREMENT SAVINGS (solid bullet) TRADITIONAL INDIVIDUAL RETIREMENT ACCOUNTS (IRAS) (solid bullet) ROTH IRAS (solid bullet) ROLLOVER IRAS (solid bullet) 401(K) PLANS AND CERTAIN OTHER 401(A)-QUALIFIED PLANS (solid bullet) KEOGH PLANS (solid bullet) SIMPLE IRAS (solid bullet) SIMPLIFIED EMPLOYEE PENSION PLANS (SEP-IRAS) (solid bullet) SALARY REDUCTION SEP-IRAS (SARSEPS) (solid bullet) 403(B) CUSTODIAL ACCOUNTS (solid bullet) DEFERRED COMPENSATION PLANS (457 PLANS) GIFTS OR TRANSFERS TO A MINOR (UGMA, UTMA) TO INVEST FOR A CHILD'S EDUCATION OR OTHER FUTURE NEEDS TRUST FOR MONEY BEING INVESTED BY A TRUST BUSINESS OR ORGANIZATION FOR INVESTMENT NEEDS OF CORPORATIONS, ASSOCIATIONS, PARTNERSHIPS OR OTHER GROUPS BUYING SHARES The price to buy one share of each fund is the fund's offering price or the fund's NAV, depending on whether you pay a sales charge. If you pay a sales charge, your price will be the fund's offering price. When you buy shares of a fund at the offering price, Fidelity deducts the appropriate sales charge and invests the rest in the fund. If you qualify for a sales charge waiver, your price will be the fund's NAV. The offering price of each fund is its NAV divided by the difference between one and the applicable sales charge percentage. The maximum sales charge is 3.00% of the offering price. Your shares will be bought at the next offering price or NAV, as applicable, calculated after your investment is received in proper form. Short-term or excessive trading into and out of a fund may harm performance by disrupting portfolio management strategies and by increasing expenses. Accordingly, a fund may reject any purchase orders, including exchanges, particularly from market timers or investors who, in FMR's opinion, have a pattern of short-term or excessive trading or whose trading has been or may be disruptive to that fund. For these purposes, FMR may consider an investor's trading history in that fund or other Fidelity funds, and accounts under common ownership or control. Each fund may stop offering shares completely or may offer shares only on a limited basis, for a period of time or permanently. When you place an order to buy shares, note the following: (small solid bullet) All of your purchases must be made in U.S. dollars and checks must be drawn on U.S. banks. (small solid bullet) Fidelity does not accept cash. (small solid bullet) When making a purchase with more than one check, each check must have a value of at least $50. (small solid bullet) Fidelity reserves the right to limit the number of checks processed at one time. (small solid bullet) If your check does not clear, your purchase will be canceled and you could be liable for any losses or fees a fund or Fidelity has incurred. (small solid bullet) If you do not specify a particular stock fund, your investment will be made in the money market fund until Fidelity receives instructions in proper form from you. Certain financial institutions that have entered into sales agreements with Fidelity Distributors Corporation (FDC) may enter confirmed purchase orders on behalf of customers by phone, with payment to follow no later than the time when a fund is priced on the following business day. If payment is not received by that time, the order will be canceled and the financial institution could be held liable for resulting fees or losses. MINIMUMS TO OPEN AN ACCOUNT $2,500 For certain Fidelity retirement accountsA $500 TO ADD TO AN ACCOUNT $250 Through regular investment plans $100 MINIMUM BALANCE $2,000 For certain Fidelity retirement accountsA $500 A FIDELITY TRADITIONAL IRA, ROTH IRA, ROLLOVER IRA, SEP-IRA, AND KEOGH ACCOUNTS. There is no minimum account balance or initial or subsequent purchase minimum for investments through Fidelity Portfolio Advisory ServicesSM, a qualified state tuition program, certain Fidelity retirement accounts funded through salary deduction, or accounts opened with the proceeds of distributions from such retirement accounts. In addition, each fund may waive or lower purchase minimums in other circumstances. KEY INFORMATION PHONE 1-800-544-7777 TO OPEN AN ACCOUNT (small solid bullet) Exchange from another Fidelity fund. Call the phone number at left. TO ADD TO AN ACCOUNT (small solid bullet) Exchange from another Fidelity fund. Call the phone number at left. (small solid bullet) Use Fidelity Money Line(registered trademark) to transfer from your bank account. INTERNET WWW.FIDELITY.COM TO OPEN AN ACCOUNT (small solid bullet) Complete and sign the application. Make your check payable to the complete name of the fund. Mail to the address under "Mail" below. TO ADD TO AN ACCOUNT (small solid bullet) Exchange from another Fidelity fund. (small solid bullet) Use Fidelity Money Line to transfer from your bank account. MAIL FIDELITY INVESTMENTS TO OPEN AN ACCOUNT P.O. BOX 770001 CINCINNATI, (small solid bullet) Complete OH 45277-0002 and sign the application. Make your check payable to the complete name of the fund. Mail to the address at left. TO ADD TO AN ACCOUNT (small solid bullet) Make your check payable to the complete name of the fund. Indicate your fund account number on your check and mail to the address at left. (small solid bullet) Exchange from another Fidelity fund. Send a letter of instruction to the address at left, including your name, the funds' names, the fund account numbers, and the dollar amount or number of shares to be exchanged. IN PERSON TO OPEN AN ACCOUNT (small solid bullet) Bring your application and check to a Fidelity Investor Center. Call 1-800-544-9797 for the center nearest you. TO ADD TO AN ACCOUNT (small solid bullet) Bring your check to a Fidelity Investor Center. Call 1-800-544-9797 for the center nearest you. WIRE TO OPEN AN ACCOUNT (small solid bullet) Call 1-800-544-7777 to set up your account and to arrange a wire transaction. (small solid bullet) Wire within 24 hours to: Bankers Trust Company, Bank Routing # 021001033, Account # 00163053. (small solid bullet) Specify the complete name of the fund and include your new fund account number and your name. TO ADD TO AN ACCOUNT (small solid bullet) Wire to: Bankers Trust Company, Bank Routing # 021001033, Account # 00163053. (small solid bullet) Specify the complete name of the fund and include your fund account number and your name. AUTOMATICALLY TO OPEN AN ACCOUNT (small solid bullet) Not available. TO ADD TO AN ACCOUNT (small solid bullet) Use Fidelity Automatic Account Builder(registered trademark) or Direct Deposit. (small solid bullet) Direct Deposit is not available for Select stock funds. (small solid bullet) Use Fidelity Automatic Exchange Service to exchange from a Fidelity money market fund. SELLING SHARES The price to sell one share of the money market fund is the fund's NAV. The price to sell one share of each stock fund is the fund's NAV minus the applicable redemption fee (trading fee). Each stock fund will deduct a trading fee of $7.50 or 0.75%, depending on how long you held your shares, from the redemption amount when you sell your shares. For stock fund shares held 29 days or less, the trading fee is equal to 0.75% of the redemption amount. For stock fund shares held 30 days or more, the trading fee is equal to the lesser of $7.50 or 0.75% of the redemption amount. This fee is paid to the fund rather than Fidelity, and is designed to offset the brokerage commissions, market impact, and other costs associated with fluctuations in fund asset levels and cash flow caused by shareholder trading. If you bought shares on different days, the shares you held longest will be redeemed first for purposes of determining the trading fee. The trading fee does not apply to shares that were acquired through reinvestment of distributions. Your shares will be sold at the next NAV calculated after your order is received in proper form, minus the applicable trading fee. Certain requests must include a signature guarantee. It is designed to protect you and Fidelity from fraud. Your request must be made in writing and include a signature guarantee if any of the following situations apply: (small solid bullet) You wish to sell more than $100,000 worth of shares; (small solid bullet) Your account registration has changed within the last 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. When you place an order to sell shares, note the following: (small solid bullet) If you are selling some but not all of your shares, leave at least $2,000 worth of shares in the account to keep it open ($500 for retirement accounts), except accounts not subject to account minimums. (small solid bullet) Normally, Fidelity will process redemptions by the next business day, but Fidelity may take up to seven days to process redemptions if making immediate payment would adversely affect a fund. (small solid bullet) Redemption proceeds may be delayed until money from prior purchases sufficient to cover your redemption has been received and collected. This can take up to seven business days after a purchase. Exchange proceeds are paid from one Select fund to another Select fund or to another Fidelity equity fund in three business days. Exchange proceeds are recorded in your shareholder account when the transaction occurs. (small solid bullet) Redemptions may be suspended or payment dates postponed when the NYSE is closed (other than weekends or holidays), when trading on the NYSE is restricted, or as permitted by the SEC. (small solid bullet) Redemption proceeds may be paid in securities or other assets rather than in cash if the Board of Trustees determines it is in the best interests of a fund. (small solid bullet) You will not receive interest on amounts represented by uncashed redemption checks. (small solid bullet) Unless otherwise instructed, Fidelity will send a check to the record address. KEY INFORMATION PHONE 1-800-544-7777 (small solid bullet) Call the phone number at left to initiate a wire transaction or to request a check for your redemption. (small solid bullet) Use Fidelity Money Line to transfer to your bank account. (small solid bullet) Exchange to another Fidelity fund. Call the phone number at left. INTERNET WWW.FIDELITY.COM (small solid bullet) Exchange to another Fidelity fund. (small solid bullet) Use Fidelity Money Line to transfer to your bank account. MAIL FIDELITY INVESTMENTS INDIVIDUAL, JOINT TENANT, P.O. BOX 660602 DALLAS, TX SOLE PROPRIETORSHIP, UGMA, 75266-0602 UTMA (small solid bullet) Send a letter of instruction to the address at left, including your name, the fund's name, your fund account number, and the dollar amount or number of shares to be sold. The letter of instruction must be signed by all persons required to sign for transactions, exactly as their names appear on the account. RETIREMENT ACCOUNT (small solid bullet) The account owner should complete a retirement distribution form. Call 1-800-544-6666 to request one. TRUST (small solid bullet) Send a letter of instruction to the address at left, including the trust's name, the fund's name, the trust's fund account number, and the dollar amount or number of shares to be sold. The trustee must sign the letter of instruction indicating capacity as trustee. If the trustee's name is not in the account registration, provide a copy of the trust document certified within the last 60 days. BUSINESS OR ORGANIZATION (small solid bullet) Send a letter of instruction to the address at left, including the firm's name, the fund's name, the firm's fund account number, and the dollar amount or number of shares to be sold. At least one person authorized by corporate resolution to act on the account must sign the letter of instruction. (small solid bullet) Include a corporate resolution with corporate seal or a signature guarantee. EXECUTOR, ADMINISTRATOR, CONSERVATOR, GUARDIAN (small solid bullet) Call 1-800-544-6666 for instructions. IN PERSON INDIVIDUAL, JOINT TENANT, SOLE PROPRIETORSHIP, UGMA, UTMA (small solid bullet) Bring a letter of instruction to a Fidelity Investor Center. Call 1-800-544-9797 for the center nearest you. The letter of instruction must be signed by all persons required to sign for transactions, exactly as their names appear on the account. RETIREMENT ACCOUNT (small solid bullet) The account owner should complete a retirement distribution form. Visit a Fidelity Investor Center to request one. Call 1-800-544-9797 for the center nearest you. TRUST (small solid bullet) Bring a letter of instruction to a Fidelity Investor Center. Call 1-800-544-9797 for the center nearest you. The trustee must sign the letter of instruction indicating capacity as trustee. If the trustee's name is not in the account registration, provide a copy of the trust document certified within the last 60 days. BUSINESS OR ORGANIZATION (small solid bullet) Bring a letter of instruction to a Fidelity Investor Center. Call 1-800-544-9797 for the center nearest you. At least one person authorized by corporate resolution to act on the account must sign the letter of instruction. (small solid bullet) Include a corporate resolution with corporate seal or a signature guarantee. EXECUTOR, ADMINISTRATOR, CONSERVATOR, GUARDIAN (small solid bullet) Visit a Fidelity Investor Center for instructions. Call 1-800-544-9797 for the center nearest you. AUTOMATICALLY (small solid bullet) Use Personal Withdrawal Service to set up periodic redemptions from your stock fund account. EXCHANGING SHARES An exchange involves the redemption of all or a portion of the shares of one fund and the purchase of shares of another fund. As a shareholder, you have the privilege of exchanging shares of a fund for shares of other Fidelity funds. However, you should note the following policies and restrictions governing exchanges: (small solid bullet) The fund you are exchanging into must be available for sale in your state. (small solid bullet) You may exchange only between accounts that are registered in the same name, address, and taxpayer identification number. (small solid bullet) Before exchanging into a fund, read its prospectus. (small solid bullet) You may pay a $7.50 fee for each exchange out of the stock funds, unless you place your transaction through Fidelity's automated exchange services. (small solid bullet) Exchanges may have tax consequences for you. (small solid bullet) Although there is no limit on the number of exchanges you may make between the Select funds, the funds may enact limitations in the future. Each fund may temporarily or permanently terminate the exchange privilege of any investor who makes more than four exchanges out of the Select funds to other Fidelity funds per calendar year. Accounts under common ownership or control will be counted together for purposes of the four exchange limit. (small solid bullet) Each fund may reject exchange purchases in excess of 1% of its net assets or $1 million, whichever is less. (small solid bullet) The exchange limit may be modified for accounts held by certain institutional retirement plans to conform to plan exchange limits and Department of Labor regulations. See your plan materials for further information. (small solid bullet) Each fund may refuse exchange purchases by any person or group if, in FMR's judgment, the fund would be unable to invest the money effectively in accordance with its investment objective and policies, or would otherwise potentially be adversely affected. The funds may terminate or modify the exchange privileges in the future. Other funds may have different exchange restrictions, and may impose administrative fees of up to 1.00% and trading fees of up to 3.00% of the amount exchanged. Check each fund's prospectus for details. ACCOUNT FEATURES AND POLICIES FEATURES The following features are available to buy and sell shares of the funds. AUTOMATIC INVESTMENT AND WITHDRAWAL PROGRAMS. Fidelity offers convenient services that let you automatically transfer money into your account, between accounts or out of your account. While automatic investment programs do not guarantee a profit and will not protect you against loss in a declining market, they can be an excellent way to invest for retirement, a home, educational expenses, and other long-term financial goals. Automatic withdrawal or exchange programs can be a convenient way to provide a consistent income flow or to move money between your investments.
FIDELITY AUTOMATIC ACCOUNT BUILDER(registered trademark) TO MOVE MONEY FROM YOUR BANK ACCOUNT TO A FIDELITY FUND. MINIMUM FREQUENCY PROCEDURES $100 Monthly or quarterly (small solid bullet) To set up for a new account, complete the appropriate section on the fund application. (small solid bullet) To set up for existing accounts, call 1-800-544-6666 or visit Fidelity's Web site for an application. (small solid bullet) To make changes, call 1-800-544-6666 at least three business days prior to your next scheduled investment date. DIRECT DEPOSIT TO SEND ALL OR A PORTION OF YOUR PAYCHECK OR GOVERNMENT CHECK TO A FIDELITY FUND. MINIMUM FREQUENCY PROCEDURES $100 Every pay period (small solid bullet) Not available for Select stock funds. (small solid bullet) To set up for a new account, check the appropriate box on the fund application. (small solid bullet) To set up for an existing account, call 1-800-544-6666 or visit Fidelity's Web site for an authorization form. (small solid bullet) To make changes you will need a new authorization form. Call 1-800-544-6666 or visit Fidelity's Web site to obtain one. FIDELITY AUTOMATIC EXCHANGE SERVICE TO MOVE MONEY FROM A FIDELITY MONEY MARKET FUND TO ANOTHER FIDELITY FUND. MINIMUM FREQUENCY PROCEDURES $100 Monthly, bimonthly, (small solid bullet) To set quarterly, or annually up, call 1-800-544-6666 after both accounts are opened. (small solid bullet) To make changes, call 1-800-544-6666 at least three business days prior to your next scheduled exchange date.
PERSONAL WITHDRAWAL SERVICE TO SET UP PERIODIC REDEMPTIONS FROM YOUR STOCK FUND ACCOUNT TO YOU OR TO YOUR BANK ACCOUNT. FREQUENCY PROCEDURES Monthly (small solid bullet) To set up, call 1-800-544-6666. (small solid bullet) To make changes, call Fidelity at 1-800-544-6666 at least three business days prior to your next scheduled withdrawal date. (small solid bullet) Because of each fund's front-end sales charge, you may not want to set up a systematic withdrawal program when you are buying shares on a regular basis. OTHER FEATURES. The following other features are also available to buy and sell shares of the funds. WIRE TO PURCHASE AND SELL SHARES VIA THE FEDERAL RESERVE WIRE SYSTEM. (small solid bullet) You must sign up for the Wire feature before using it. Complete the appropriate section on the application when opening your account, or call 1-800-544-7777 to add the feature after your account is opened. Call 1-800-544-7777 before your first use to verify that this feature is set up on your account. (small solid bullet) To sell shares by wire, you must designate the U.S. commercial bank account(s) into which you wish the redemption proceeds deposited. FIDELITY MONEY LINE TO TRANSFER MONEY BETWEEN YOUR BANK ACCOUNT AND YOUR FUND ACCOUNT. (small solid bullet) You must sign up for the Money Line feature before using it. Complete the appropriate section on the application and then call 1-800-544-7777 or visit Fidelity's Web site before your first use to verify that this feature is set up on your account. (small solid bullet) Most transfers are complete within three business days of your call. (small solid bullet) Maximum purchase: $100,000 FIDELITY ON-LINE XPRESS+(registered trademark) TO MANAGE YOUR INVESTMENTS THROUGH YOUR PC. CALL 1-800-544-7272 OR VISIT FIDELITY'S WEB SITE FOR MORE INFORMATION. (small solid bullet) For account balances and holdings; (small solid bullet) To review recent account history; (small solid bullet) For mutual fund and brokerage trading; and (small solid bullet) For access to research and analysis tools. FIDELITY ONLINE TRADING TO ACCESS AND MANAGE YOUR ACCOUNT OVER THE INTERNET AT FIDELITY'S WEB SITE. (small solid bullet) For account balances and holdings; (small solid bullet) To review recent account history; (small solid bullet) To obtain quotes; (small solid bullet) For mutual fund and brokerage trading; and (small solid bullet) To access third-party research on companies, stocks, mutual funds and the market. TOUCHTONE XPRESS(registered trademark) TO ACCESS AND MANAGE YOUR ACCOUNT AUTOMATICALLY BY PHONE. CALL 1-800-544-5555. (small solid bullet) For account balances and holdings; (small solid bullet) For mutual fund and brokerage trading; (small solid bullet) To obtain quotes; (small solid bullet) To review orders and mutual fund activity; and (small solid bullet) To change your personal identification number (PIN). POLICIES The following policies apply to you as a shareholder. STATEMENTS AND REPORTS that Fidelity sends to you include the following: (small solid bullet) Confirmation statements (after transactions affecting your account balance except reinvestment of distributions in the fund or another fund and certain transactions through automatic investment or withdrawal programs). (small solid bullet) Monthly or quarterly account statements (detailing account balances and all transactions completed during the prior month or quarter). (small solid bullet) Financial reports (every six months). To reduce expenses, only one copy of most financial reports and prospectuses will be mailed to your household, even if you have more than one account in a fund. Call Fidelity at 1-800-544-8544 if you need additional copies of financial reports or prospectuses. Electronic copies of most financial reports and prospectuses are available at Fidelity's Web site. To participate in Fidelity's electronic delivery program, call Fidelity or visit Fidelity's Web site for more information. You may initiate many TRANSACTIONS BY TELEPHONE OR ELECTRONICALLY. Fidelity will not be responsible for any losses resulting from unauthorized transactions if it follows reasonable security procedures designed to verify the identity of the investor. Fidelity will request personalized security codes or other information, and may also record calls. For transactions conducted through the Internet, Fidelity recommends the use of an Internet browser with 128-bit encryption. You should verify the accuracy of your confirmation statements immediately after you receive them. If you do not want the ability to sell and exchange by telephone, call Fidelity for instructions. When you sign your ACCOUNT APPLICATION, you will be asked to certify that your social security or taxpayer identification number is correct and that you are not subject to 31% backup withholding for failing to report income to the IRS. If you violate IRS regulations, the IRS can require a fund to withhold 31% of your taxable distributions and redemptions. Fidelity may deduct an ANNUAL MAINTENANCE FEE of $12.00 from accounts with a value of less than $2,500 (including any amount paid as a sales charge), subject to an annual maximum charge of $24.00 per shareholder. It is expected that accounts will be valued on the second Friday in November of each year. Accounts opened after September 30 will not be subject to the fee for that year. The fee, which is payable to Fidelity, is designed to offset in part the relatively higher costs of servicing smaller accounts. This fee will not be deducted from Fidelity brokerage accounts, retirement accounts (except non-prototype retirement accounts), accounts using regular investment plans, or if total assets with Fidelity exceed $30,000. Eligibility for the $30,000 waiver is determined by aggregating accounts with Fidelity maintained by Fidelity Service Company, Inc. or FBSI which are registered under the same social security number or which list the same social security number for the custodian of a Uniform Gifts/Transfers to Minors Act account. If your ACCOUNT BALANCE falls below $2,000 (except accounts not subject to account minimums), you will be given 30 days' notice to reestablish the minimum balance. If you do not increase your balance, Fidelity may close your account and send the proceeds to you. Your shares will be sold at the NAV, minus the applicable trading fee for the stock funds, on the day your account is closed. Fidelity may charge a FEE FOR CERTAIN SERVICES, such as providing historical account documents . DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS Each fund earns dividends, interest and other income from its investments, and distributes this income (less expenses) to shareholders as dividends. Each fund also realizes capital gains from its investments, and distributes these gains (less any losses) to shareholders as capital gains distributions. Each stock fund normally pays dividends and capital gains distributions in April and December. Distributions you receive from the money market fund consist primarily of dividends. The money market fund normally declares dividends daily and pays them monthly. EARNING DIVIDENDS For the money market fund, shares begin to earn dividends on the first business day following the day of purchase. For the money market fund, shares earn dividends until, but not including, the next business day following the day of redemption. When you exchange from a stock fund to the money market fund, you will earn dividends the next business day. When you exchange from the money market fund to a stock fund, you will earn dividends until, but not including, the next business day following the day of redemption. Exchange proceeds are paid from one Select fund to another or from a Select fund to a Fidelity equity fund in three business days. As a result, the delay in paying exchange proceeds when exchanging between the money market fund and a stock fund or a Fidelity equity fund could result in a lower or more volatile money market fund yield. DISTRIBUTION OPTIONS When you open an account, specify on your application how you want to receive your distributions. The following options may be available for each fund's distributions: 1. REINVESTMENT OPTION. Your dividends and capital gains 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 gains distributions will be automatically reinvested in additional shares of the fund. Your dividends will be paid in cash. 3. CASH OPTION. Your dividends and capital gains distributions will be paid in cash. 4. DIRECTED DIVIDENDS(registered trademark) OPTION. Your dividends will be automatically invested in shares of another identically registered Fidelity fund. Your capital gains distributions will be automatically invested in shares of another identically registered Fidelity fund, automatically reinvested in additional shares of the fund, or paid in cash. Not all distribution options are available for every account. If the option you prefer is not listed on your account application, or if you want to change your current option, call Fidelity. If you elect to receive distributions paid in cash by check and the U.S. Postal Service does not deliver your checks, your distribution option may be converted to the Reinvestment Option. You will not receive interest on amounts represented by uncashed distribution checks. TAX CONSEQUENCES As with any investment, your investment in a fund could have tax consequences for you. If you are not investing through a tax-advantaged retirement account, you should consider these tax consequences. TAXES ON DISTRIBUTIONS. Distributions you receive from each fund are subject to federal income tax, and may also be subject to state or local taxes. For federal tax purposes, each fund's dividends and distributions of short-term capital gains are taxable to you as ordinary income. Each fund's distributions of long-term capital gains are taxable to you generally as capital gains. If you buy shares when a fund has realized but not yet distributed income (stock funds only) or capital gains, you will be "buying a dividend" by paying the full price for the shares and then receiving a portion of the price back in the form of a taxable distribution. Any taxable distributions you receive from a fund will normally be taxable to you when you receive them, regardless of your distribution option. For the money market fund, if you elect to receive distributions in cash or to invest distributions automatically in shares of another Fidelity fund, you will receive certain December distributions in January, but those distributions will be taxable as if you received them on December 31. TAXES ON TRANSACTIONS. Your stock fund redemptions, including exchanges, may result in a capital gain or loss for federal tax purposes. A capital gain or loss on your investment in a fund is the difference between the cost of your shares and the price you receive when you sell them. FUND SERVICES FUND MANAGEMENT Each fund is a mutual fund, an investment that pools shareholders' money and invests it toward a specified goal. FMR is each fund's manager. As of April 30, 1998, FMR had approximately $5 2 9 billion in discretionary assets under management. As the manager, FMR is responsible for choosing the funds' investments and handling their business affairs. Affiliates assist FMR with foreign investments: (small solid bullet) Fidelity Management & Research (U.K.) Inc. (FMR U.K.), in London, England, serves as a sub-adviser for each stock fund. FMR U.K. was organized in 1986 to provide investment research and advice to FMR. Currently, FMR U.K. provides investment research and advice on issuers based outside the United States and may also provide investment advisory services for each stock fund. (small solid bullet) Fidelity Management & Research Far East Inc. (FMR Far East), in Tokyo, Japan, serves as sub-adviser for each stock fund. FMR Far East was organized in 1986 to provide investment research and advice to FMR. Currently, FMR Far East provides investment research and advice on issuers based outside the United States and may also provide investment advisory services for each stock fund. Fidelity Investments Money Management, Inc. (FIMM), in Merrimack, New Hampshire, serves as sub-adviser for the money market fund. FIMM is primarily responsible for choosing investments for the money market fund. FIMM is an affiliate of FMR. As of May 1, 1998, F IMM had approximately $ 99 billion in discretionary assets under management. A fund could be adversely affected if the computer systems used by FMR and other service providers do not properly process and calculate date-related information from and after January 1, 2000. FMR has advised each fund that it is actively working on necessary changes to its computer systems and expects that its systems, and those of other major service providers, will be modified prior to January 1, 2000. However, there can be no assurance that there will be no adverse impact on a fund. 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 his bachelor of arts degree from Tufts University. James Catudal is manager of Energy Service, which he has managed since January 1998. Mr. Catudal joined Fidelity in 1997 as a research analyst. Previously, he was an equity analyst with State Street Research & Management. He received an MBA from the Amos Tuck School at Dartmouth College in 1995. Douglas Chase is manager of Consumer Industries, which he has managed since August 1997. He also manages other Fidelity funds. Mr. Chase joined Fidelity as an equity analyst in 1993 after receiving his MBA from the University of Michigan. Tim Cohen is manager of Insurance, which he has managed since February 1999. Mr. Cohen Joined Fidelity as an analyst in 1996, after receiving an MBA from The Wharton School at the University of Pennsylvania. Previously, he was a senior associate in the business assurance group at Coopers & Lybrand (now PricewaterhouseCoopers LLP), Boston, from 1991 to 1994. George Domolky is manager of Precious Metals and Minerals and Gold, both of which he has managed since February 1997. Previously, he managed Canada from 1987 to 1996 as well as other Fidelity funds. Mr. Domolky joined Fidelity in 1981, and has worked as an analyst and manager. 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. Noah Eccles is manager of Paper and Forest Products, which he has managed since January 1999. Previously, he worked as an analyst. Mr. Eccles joined Fidelity as a research associate in 1997, after receiving a bachelor of arts degree in economics from Trinity College in 1992 and an MBA from The Wharton School at the University of Pennsylvania in 1997. 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. Jeffrey Feingold is manager of Defense and Aerospace, which he has managed since November 1998. Mr. Feingold joined Fidelity in 1997 and has worked as an equity analyst following the apparel, textile and footwear industries. Subra Ghose is manager of Environmental Services, which he has managed since October 1998. Since joining Fidelity in 1995, Mr. Ghose has worked as an analyst following the electric and gas utilities industries. Prior to this, Mr. Ghose received a bachelor of science degree in computer science from Birla Institute of Technology, India, in 1991, and an MBA from Northeastern University in 1996. Matthew Grech is manager of Electronics, which he has managed since June 1998. Mr. Grech joined Fidelity in 1996 as an equity analyst, after receiving his MBA from the University of Chicago. Previously, he was a mutual fund accountant for Franklin/Templeton, in California, from 1993 to 1994. Albert Grosman is manager of Automotive, which he has managed since December 1997. Mr. Grosman joined Fidelity in 1996 as an analyst. He received his MBA from Columbia University in 1997. From 1993 to 1995, Mr. Grosman managed investment portfolios on a discretionary basis in Toronto, Canada. Peter Hirsch is manager of Industrial Materials, which he has managed since September 1998. Mr. Hirsch joined Fidelity in 1995 as a portfolio analyst. He received his Masters in Public and Private Management (MPPM) at Yale School of Management in 1994 and began his career as an associate at CS First Boston in New York. Brian Hogan is manager of Construction and Housing, which he has managed since April 1999. Since joining Fidelity in 1994, Mr. Hogan has worked as a fixed income analyst, research analyst and manager. Previously, he worked as an analyst for Conseco Capital Management from 1993 to 1994. Andrew Kaplan is manager of Developing Communications and Technology, which he has managed since April 1998 and July 1998, respectively. Previously, he managed another Fidelity fund. Mr. Kaplan joined Fidelity as an analyst in 1995. Before that, 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. Rajiv Kaul is manager of Biotechnology, which he has managed since June 1998. Since joining Fidelity in 1996, Mr. Kaul has worked as a research associate and equity analyst. He received a bachelor of arts degree in government from Harvard College in 1995. Yolanda McGettigan is manager of Regional Banks, which she has managed since April 1999. 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 April 1998. Since joining Fidelity in 1995, Ms. Nelson has worked as a research associate, analyst and manager. Previously, she was an analyst with Grandview Partners, L.P., in Boston, from 1991 to 1994. 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. Ted Orenstein is manager of Brokerage and Investment Management, which he has managed since January 1999. Mr. Orenstein joined Fidelity as an analyst in May 1998, after receiving a bachelor's degree in business administration from Babson College in 1994 and an MBA from The Wharton School at the University of Pennsylvania in 1998. 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. 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. 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. Peter Saperstone is manager of Telecommunications, which he has managed since October 1998. Mr. Saperstone joined Fidelity in 1995 and has worked as an analyst and manager. 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 Portfolio, which he has managed since February 1998. Mr. Tarlowe joined Fidelity in 1994 as an analyst, after receiving a bachelor of business administration degree in finance from the University of Michigan. Michael Tempero is manager of Computers, which he has managed since January 1997. He also manages another Fidelity fund. Mr. Tempero joined Fidelity as an analyst in 1993, after receiving his MBA from the University of Chicago. Victor Thay is manager of Natural Gas and Home Finance , which he has managed since December 1997 and March 1999, respectively . 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 from 1993 to 1996. Mr. Wolf received a bachelor of science degree in economics from the University of Pennsylvania in 1992. Dylan Yolles is manager of Chemicals, which he has managed since January 1999. Mr. Yolles joined Fidelity in 1997 as an equity analyst, after receiving a bachelor of arts degree in 1991 and an MBA in 1997, both from Stanford University. Jonathan Zang is manager of Utilities Growth, which he has managed since July 1998. Mr. Zang joined Fidelity in 1997 as an equity analyst, after receiving his MBA from the University of Chicago in 1997. Previously, he was an investment officer with Hawaiian Trust Company, in Honolulu, from 1992 to 1995. Chris Zepf is Manager of Transportation and Air Transportation, which he has managed since September 1998 and October 1998, respectively. Mr. Zepf joined Fidelity in 1997 and has worked as an analyst and manager. Fidelity investment personnel may invest in securities for their own investment accounts pursuant to a code of ethics that establishes procedures for personal investing and restricts certain transactions. Each fund pays a management fee to FMR. The management fee is calculated and paid to FMR every month. For the stock funds, the fee is calculated by adding a group fee rate to an individual fund fee rate, dividing by twelve, and multiplying the result by the fund's average net assets throughout the month. For the money market fund, the fee is calculated by adding a group fee rate to an individual fund fee rate, dividing by twelve and multiplying the result by the fund's average net assets throughout the month, and then adding an income-based fee. The income-based fee is 6% of the fund's monthly gross income in excess of an annualized 5% yield, but it cannot rise above an annual rate of 0.24% of the fund's average net assets throughout that month. The group fee rate is based on the average net assets of all the mutual funds advised by FMR. This rate cannot rise above 0.52% for each stock fund or 0.37% for the money market fund, and it drops as total assets under management increase. For February 1999, the group fee rate wa s 0.2843 % for each stock fund and the group fee rate was 0.1312 % for the money market fund. The individual fund fee rate is 0.30% for each stock fund and 0.03% for the money market fund. The total management fee for the fiscal year ended February 28, 1999 for each fund, as a percentage of each fund's average net assets, is shown in the table below. Fund Management Fees Air Transportation 0.58% Automotive 0.59% Biotechnology 0.59% Brokerage and Investment 0.59% Management Business Services and 0.59% Outsourcing Chemicals 0.59% Computers 0.60% Construction and Housing 0.59% Consumer Industries 0.59% Cyclical Industries 0.59% Defense and Aerospace 0.58% Developing Communications 0.60% Electronics 0.59% Energy 0.59% Energy Service 0.59% Environmental Services 0.59% Financial Services 0.59% Food and Agriculture 0.59% Gold 0.59% Health Care 0.59% Home Finance 0.58% Industrial Equipment 0.59% Industrial Materials 0.59% Insurance 0.59% Leisure 0.59% Medical Delivery 0.59% Medical Equipment and SystemsA 0.60% Multimedia 0.59% Fund Management Fees Natural Gas 0.59% Natural Resources 0.59% Paper and Forest Products 0.59% Precious Metals and Minerals 0.59% Regional Banks 0.59% Retailing 0.59% Software and Computer Services 0.59% Technology 0.60% Telecommunications 0.59% Transportation 0.58% Utilities Growth 0.59% Money Market 0.20% A ANNUALIZED FMR pays FIMM, FMR U.K. and FMR Far East for providing assistance with investment advisory services. FMR may, from time to time, agree to reimburse the funds for management fees and other expenses above a specified limit. FMR retains the ability to be repaid by a fund if expenses fall below the specified limit prior to the end of the fiscal year. Reimbursement arrangements, which may be terminated by FMR at any time, can decrease a fund's expenses and boost its performance. As of February 28, 1999, approximately 38.73% of Cyclical Industries' total outstanding shares were held by an FMR affiliate. FUND DISTRIBUTION FDC distributes each fund's shares. You may pay a sales charge when you buy your shares. FDC collects the sales charge. Each fund's sales charge may be reduced if you buy directly through Fidelity or through prototype or prototype-like retirement plans sponsored by FMR or FMR Corp. The amount you invest, plus the value of your account, must fall within the ranges shown below. Purchases made with assistance or intervention from a financial intermediary are not eligible for a sales charge reduction. Sales Charge Ranges As a % of offering price As an approximate % of net amount invested $0 - 249,999 3.00% 3.09% $250,000 - 499,999 2.00% 2.04% $500,000 - 999,999 1.00% 1.01% $1,000,000 or more none none FDC may pay a portion of sales charge proceeds to securities dealers who have sold a fund's shares, or to others, including banks and other financial institutions (qualified recipients), under special arrangements in connection with FDC's sales activities. The sales charge paid to qualified recipients is 1.50% of a fund's offering price. The sales charge will also be reduced by the percentage of any sales charge you previously paid on investments in other Fidelity funds or by the percentage of any sales charge you would have paid if the reductions in the table above had not existed. These sales charge credits only apply to purchases made in one of the ways listed below, and only if you continuously owned Fidelity fund shares, maintained a Fidelity brokerage core account, or participated in The CORPORATEplan for Retirement Program. 1. By exchange from another Fidelity fund. 2. With proceeds from a transaction in a Fidelity brokerage core account, including any free credit balance, core money market fund, or margin availability, to the extent such proceeds were derived from redemption proceeds from another Fidelity fund. 3. As a participant in The CORPORATEplan for Retirement Program when shares are bought through plan-qualified loan repayments, and for exchanges into and out of the Managed Income Portfolio. A fund's sales charge will not apply: 1. If you buy shares as part of an employee benefit plan having more than 200 eligible employees or a minimum of $3 million in plan assets invested in Fidelity mutual funds. 2. To shares in a Fidelity account bought with the proceeds of a distribution from an employee benefit plan, provided that at the time of the distribution, the employer or its affiliate maintained a plan that both qualified for waiver (1) above and had at least some of its assets invested in Fidelity-managed products. (Distributions transferred to an IRA account must be transferred within 60 days from the date of the distribution. All other distributions must be transferred directly into a Fidelity account). 3. If you are a charitable organization (as defined for purposes of Section 501(c)(3) of the Internal Revenue Code) investing $100,000 or more. 4. If you buy shares for a charitable remainder trust or life income pool established for the benefit of a charitable organization (as defined for purposes of Section 501(c)(3) of the Internal Revenue Code). 5. If you are an investor participating in the Fidelity Trust Portfolios program. 6. To shares bought by a mutual fund or a qualified state tuition program for which FMR or an affiliate serves as investment manager. 7. To shares bought through Portfolio Advisory Services or Fidelity Charitable Advisory Services. 8. If you are a current or former trustee or officer of a Fidelity fund or a current or retired officer, director, or regular employee of FMR Corp. or Fidelity International Limited or their direct or indirect subsidiaries (a Fidelity trustee or employee), the spouse of a Fidelity trustee or employee, a Fidelity trustee or employee acting as custodian for a minor child, or a person acting as trustee of a trust for the sole benefit of the minor child of a Fidelity trustee or employee. 9. If you are a bank trust officer, registered representative, or other employee of a qualified recipient, as defined on page . More detailed information about waivers (1), (2) and (5) is contained in the Statement of Additional Information (SAI). A representative of your plan or organization should call Fidelity for more information. To qualify for a sales charge reduction or waiver, you must notify Fidelity in advance of your purchase. To receive sales concessions and waivers, qualified recipients must sign the appropriate agreement with FDC in advance. FMR may allocate brokerage transactions in a manner that takes into account the sale of shares of a fund, provided that the fund receives brokerage services and commission rates comparable to those of other broker-dealers. No dealer, sales representative, or any other person has been authorized to give any information or to make any representations, other than those contained in this Prospectus and in the related SAI, in connection with the offer contained in this Prospectus. If given or made, such other information or representations must not be relied upon as having been authorized by the funds or FDC. This Prospectus and the related SAI do not constitute an offer by the funds or by FDC to sell shares of the funds or to buy shares of the funds to any person to whom it is unlawful to make such offer. APPENDIX FINANCIAL HIGHLIGHTS The financial highlights table is intended to help you understand each fund's financial history for the past 5 years (past 2 years for Business Services and Outsourcing, Cyclical Industries and Natural Resources, and past year for Medical Equipment and Systems). Certain information reflects financial results for a single fund share. Total returns for each period include the reinvestment of all dividends and distributions. This information has been audited by PricewaterhouseCoopers LLP , independent accountants, whose report, along with each fund's financial highlights and financial statements, are included in the funds' Annual Report. A free copy of the Annual Report is available upon request.
AIR TRANSPORTATION Years ended February 28, 1999 1998 1997 1996 F 1995 SELECTED PER-SHARE DATA Net asset value, beginning of $ 26.86 $ 17.72 $ 21.11 $ 13.93 $ 17.12 period Income from Investment Operations Net investment income (loss) (.14) (.19) (.22) (.01) (.18) C Net realized and unrealized 1.06 10.59 (3.12) 7.47 (2.01) gain (loss) Total from investment .92 10.40 (3.34) 7.46 (2.19) operations Less Distributions From net realized gain (.21) (1.43) (.07) (.46) (.92) In excess of net realized - - (.20) - (.17) gain Total distributions (.21) (1.43) (.27) (.46) (1.09) Redemption fees added to paid .19 .17 .22 .18 .09 in capital Net asset value, end of period $ 27.76 $ 26.86 $ 17.72 $ 21.11 $ 13.93 TOTAL RETURN A, B 4.11% 61.10% (15.06)% 54.91% (12.45)% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 65,949 $ 181,185 $ 35,958 $ 75,359 $ 18,633 (000 omitted) Ratio of expenses to average 1.35% 1.93% 1.89% 1.47% 2.50% D net assets Ratio of expenses to average 1.27% E 1.87% E 1.80% E 1.41% E 2.50% net assets after expense reductions Ratio of net investment (.50)% (.84)% (1.10)% (.07)% (1.31)% income (loss) to average net assets Portfolio turnover rate 260% 294% 469% 504% 200%
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES, OR EXPENSES WERE LIMITED IN ACCORDANCE WITH A STATE EXPENSE LIMITATION. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD HAVE BEEN HIGHER. E FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. F FOR THE YEAR ENDED FEBRUARY 29.
AUTOMOTIVE Years ended February 28, 1999 1998 1997 1996 E 1995 SELECTED PER-SHARE DATA Net asset value, beginning of $ 27.50 $ 25.38 $ 21.85 $ 19.84 $ 25.48 period Income from Investment Operations Net investment income C .03 .05 .13 .03 .08 Net realized and unrealized (2.09) 5.21 4.28 1.95 (3.46) gain (loss) Total from investment (2.06) 5.26 4.41 1.98 (3.38) operations Less Distributions From net investment income (.01) (.08) (.17) - (.05) From net realized gain (2.17) (3.09) (.75) - (2.26) Total distributions (2.18) (3.17) (.92) - (2.31) Redemption fees added to paid .02 .03 .04 .03 .05 in capital Net asset value, end of period $ 23.28 $ 27.50 $ 25.38 $ 21.85 $ 19.84 TOTAL RETURN A, B (8.52)% 22.78% 20.60% 10.13% (12.59)% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 64,541 $ 32,489 $ 86,347 $ 55,753 $ 60,075 (000 omitted) Ratio of expenses to average 1.45% 1.60% 1.56% 1.81% 1.82% net assets Ratio of expenses to average 1.41% D 1.56% D 1.52% D 1.80% D 1.80% D net assets after expense reductions Ratio of net investment .11% .17% .54% .13% .34% income to average net assets Portfolio turnover rate 96% 153% 175% 61% 63% A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. E FOR THE YEAR ENDED FEBRUARY 29.
BIOTECHNOLOGY Years ended February 28, 1999 1998 1997 1996 F 1995 SELECTED PER-SHARE DATA Net asset value, beginning of $ 34.52 $ 34.24 $ 36.60 $ 25.30 $ 27.61 period Income from Investment Operations Net investment income (loss) (.26) (.27) (.20) .11 (.06) C Net realized and unrealized 9.15 5.20 1.89 11.21 (2.26) gain (loss) Total from investment 8.89 4.93 1.69 11.32 (2.32) operations Less Distributions From net investment income - - (.03) (.07) - From net realized gain (2.09) (4.71) (4.06) - - Total distributions (2.09) (4.71) (4.09) (.07) - Redemption fees added to paid .03 .06 .04 .05 .01 in capital Net asset value, end of period $ 41.35 $ 34.52 $ 34.24 $ 36.60 $ 25.30 TOTAL RETURN A, B 27.13% 16.11% 5.85% 44.97% (8.37)% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 741,530 $ 579,542 $ 674,902 $ 1,096,864 $ 448,197 (000 omitted) Ratio of expenses to average 1.34% 1.49% 1.57% 1.44% D 1.59% net assets Ratio of expenses to average 1.30% E 1.47% E 1.56% E 1.43% E 1.59% net assets after expense reductions Ratio of net investment (.75)% (.81)% (.59)% .35% (.27)% income (loss) to average net assets Portfolio turnover rate 86% 162% 41% 67% 77% A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD HAVE BEEN HIGHER. E FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. F FOR THE YEAR ENDED FEBRUARY 29.
BROKERAGE AND INVESTMENT MANAGEMENT Years ended February 28, 1999 1998 1997 1996 F 1995 SELECTED PER-SHARE DATA Net asset value, beginning of $ 39.78 $ 25.76 $ 18.49 $ 15.51 $ 17.75 period Income from Investment Operations Net investment income (loss) .10 .16 .08 .09 (.03) C Net realized and unrealized 1.72 14.46 7.80 4.29 (2.25) gain (loss) Total from investment 1.82 14.62 7.88 4.38 (2.28) operations Less Distributions From net investment income (.01) (.09) (.06) (.04) - From net realized gain (.52) (.61) (.65) (1.09) - In excess of net realized - - - (.35) - gain Total distributions (.53) (.70) (.71) (1.48) - Redemption fees added to paid .09 .10 .10 .08 .04 in capital Net asset value, end of period $ 41.16 $ 39.78 $ 25.76 $ 18.49 $ 15.51 TOTAL RETURN A, B 4.76% 57.56% 44.27% 29.85% (12.62)% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 482,525 $ 676,067 $ 458,787 $ 38,382 $ 27,346 (000 omitted) Ratio of expenses to average 1.26% 1.33% 1.94% 1.64% D 2.54% D net assets Ratio of expenses to average 1.24% E 1.29% E 1.93% E 1.61% E 2.54% net assets after expense reductions Ratio of net investment .26% .49% .37% .50% (.20)% income (loss) to average net assets Portfolio turnover rate 59% 100% 16% 166% 139% A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE . C NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES, OR EXPENSES WERE LIMITED IN ACCORDANCE WITH A STATE EXPENSE LIMITATION. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD HAVE BEEN HIGHER. E FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. F FOR THE YEAR ENDED FEBRUARY 29.
BUSINESS SERVICES AND OUTSOURCING Years ended February 28, 1999 1998E SELECTED PER-SHARE DATA Net asset value, beginning of $ 10.89 $ 10.00 period Income from Investment Operations Net investment income (loss) (.11) - D Net realized and unrealized 2.92 .89 gain (loss) Total from investment 2.81 .89 operations Less Distributions From net realized gain (.16) - Redemption fees added to paid .03 - in capital Net asset value, end of period $ 13.57 $ 10.89 TOTAL RETURN B, C 26.23% 8.90% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 64,123 $ 15,915 (000 omitted) Ratio of expenses to average 1.66% 2.50% A, F net assets Ratio of expenses to average 1.64% G 2.50% A net assets after expense reductions Ratio of net investment (.91)% (.49)% A income (loss) to average net assets Portfolio turnover rate 115% 36% A A ANNUALIZED B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. C TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. D NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. E FOR THE PERIOD FEBRUARY 4, 1998 (COMMENCEMENT OF OPERATIONS) TO FEBRUARY 28, 1998. F FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD HAVE BEEN HIGHER. G FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES.
CHEMICALS Years ended February 28, 1999 1998 1997 1996 E 1995 SELECTED PER-SHARE DATA Net asset value, beginning of $ 45.90 $ 42.53 $ 39.53 $ 33.91 $ 31.66 period Income from Investment Operations Net investment income (loss) .17 (.02) .28 .01 .36 C Net realized and unrealized (10.77) 7.88 5.49 8.89 2.65 gain (loss) Total from investment (10.60) 7.86 5.77 8.90 3.01 operations Less Distributions From net investment income (.05) - (.12) (.08) (.22) From net realized gain (3.52) (4.54) (2.74) (3.22) (.60) In excess of net realized (0.68) - - - - gain Total distributions (4.25) (4.54) (2.86) (3.30) (.82) Redemption fees added to paid .05 .05 .09 .02 .06 in capital Net asset value, end of period $ 31.10 $ 45.90 $ 42.53 $ 39.53 $ 33.91 TOTAL RETURN A, B (23.66)% 19.47% 15.06% 27.48% 9.90% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 31,862 $ 69,349 $ 111,409 $ 89,230 $ 97,511 (000 omitted) Ratio of expenses to average 1.58% 1.68% 1.83% 1.99% 1.52% net assets Ratio of expenses to average 1.51% D 1.67% D 1.81% D 1.97% D 1.51% D net assets after expense reductions Ratio of net investment .44% (.05)% .67% .04% 1.07% income (loss) to average net assets Portfolio turnover rate 141% 31% 207% 87% 106% A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. E FOR THE YEAR ENDED FEBRUARY 29.
COMPUTERS Years ended February 28, 1999 1998 1997 1996 E 1995 SELECTED PER-SHARE DATA Net asset value, beginning of $ 41.08 $ 48.25 $ 41.03 $ 30.67 $ 27.02 period Income from Investment Operations Net investment income (loss) (.29) (.32) (.36) (.23) (.31) C Net realized and unrealized 27.39 6.42 9.94 16.10 3.68 gain (loss) Total from investment 27.10 6.10 9.58 15.87 3.37 operations Less Distributions From net realized gain - (10.64) (2.47) (5.61) - In excess of net realized - (2.75) - - - gain Total distributions - (13.39) (2.47) (5.61) - Redemption fees added to paid .19 .12 .11 .10 .28 in capital Net asset value, end of period $ 68.37 $ 41.08 $ 48.25 $ 41.03 $ 30.67 TOTAL RETURN A, B 66.43% 20.33% 23.97% 52.79% 13.51% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 1,831,435 $ 785,465 $ 604,286 $ 527,337 $ 215,014 (000 omitted) Ratio of expenses to average 1.25% 1.40% 1.48% 1.40% 1.71% net assets Ratio of expenses to average 1.23% D 1.34% D 1.44% D 1.38% D 1.69% D net assets after expense reductions Ratio of net investment (.54)% (.67)% (.83)% (.56)% (1.12)% income (loss) to average net assets Portfolio turnover rate 133% 333% 255% 129% 189% A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. E FOR THE YEAR ENDED FEBRUARY 29.
CONSTRUCTION AND HOUSING Years ended February 28, 1999 1998 1997 1996 F 1995 SELECTED PER-SHARE DATA Net asset value, beginning of $ 25.63 $ 22.00 $ 19.56 $ 16.79 $ 19.82 period Income from Investment Operations Net investment income (loss) (.06) (.25) .06 .07 (.02) C Net realized and unrealized (.53) 7.67 3.38 3.55 (2.50) gain (loss) Total from investment (.59) 7.42 3.44 3.62 (2.52) operations Less Distributions From net investment income - (.02) (.02) (.07) - From net realized gain (.06) (3.87) (1.03) (.81) (.52) Total distributions (.06) (3.89) (1.05) (.88) (.52) Redemption fees added to paid .04 .10 .05 .03 .01 in capital Net asset value, end of period $ 25.02 $ 25.63 $ 22.00 $ 19.56 $ 16.79 TOTAL RETURN A, B (2.16)% 40.04% 18.64% 21.77% (12.54)% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 51,652 $ 57,484 $ 30,581 $ 42,668 $ 16,863 (000 omitted) Ratio of expenses to average 1.43% 2.50% D 1.41% 1.43% 1.76% net assets Ratio of expenses to average 1.37% E 2.43% E 1.35% E 1.40% E 1.74% E net assets after expense reductions Ratio of net investment (.23)% (1.10)% .27% .39% (.11)% income (loss) to average net assets Portfolio turnover rate 226% 404% 270% 139% 45% A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSED DURING THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD HAVE BEEN HIGHER. E FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. F FOR THE YEAR ENDED FEBRUARY 29.
CONSUMER INDUSTRIES Years ended February 28, 1999 1998 1997 1996 F 1995 SELECTED PER-SHARE DATA Net asset value, beginning of $ 27.31 $ 20.66 $ 17.84 $ 13.91 $ 15.24 period Income from Investment Operations Net investment income (loss) (.04) (.22) (.22) .08 (.15) C Net realized and unrealized 5.41 8.34 2.93 3.97 (.60) gain (loss) Total from investment 5.37 8.12 2.71 4.05 (.75) operations Less Distributions From net investment income - - - (.02) - From net realized gain (.90) (1.52) - (.01) (.60) In excess of net realized - - - (.20) - gain Total distributions (.90) (1.52) - (.23) (.60) Redemption fees added to paid .03 .05 .11 .11 .02 in capital Net asset value, end of period $ 31.81 $ 27.31 $ 20.66 $ 17.84 $ 13.91 TOTAL RETURN A, B 20.18% 40.36% 15.81% 30.01% (4.59)% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 82,244 $ 72,152 $ 18,392 $ 22,362 $ 20,501 (000 omitted) Ratio of expenses to average 1.34% 2.01% 2.49% 1.53% D 2.49% D net assets Ratio of expenses to average 1.32% E 1.97% E 2.44% E 1.48% E 2.49% net assets after expense reductions Ratio of net investment (.15)% (.90)% (1.13)% .46% (1.08)% income (loss) to average net assets Portfolio turnover rate 150% 199% 340% 601% 190%
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES, OR EXPENSES WERE LIMITED IN ACCORDANCE WITH A STATE EXPENSE LIMITATION. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD HAVE BEEN HIGHER. E FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. F FOR THE YEAR ENDED FEBRUARY 29. CYCLICAL INDUSTRIES Years ended February 28, 1999 1998 F SELECTED PER-SHARE DATA Net asset value, beginning of $ 12.07 $ 10.00 period Income from Investment Operations Net investment income (loss) (.13) (.11) D Net realized and unrealized (.49) 2.59 gain (loss) Total from investment (.62) 2.48 operations Less Distributions From net realized gain (.09) (.46) Redemption fees added to .03 .05 paid in capital Net asset value, end of $ 11.39 $ 12.07 period TOTAL RETURN B, C (4.96)% 25.77% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 3,087 $ 3,965 (000 omitted) Ratio of expenses to average 2.50% E 2.50% A, E net assets Ratio of expenses to average 2.49% G 2.50% A net assets after expense reductions Ratio of net investment (1.09)% (.93)% A income (loss) to average net assets Portfolio turnover rate 103% 140% A A ANNUALIZED B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. C TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. D NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. E FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD HAVE BEEN HIGHER. F FOR THE PERIOD MARCH 3, 1997 (COMMENCEMENT OF OPERATIONS) TO FEBRUARY 28, 1998. 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.
DEFENSE AND AEROSPACE Years ended February 28, 1999 1998 1997 1996 F 1995 SELECTED PER-SHARE DATA Net asset value, beginning of $ 37.57 $ 28.94 $ 26.97 $ 19.64 $ 19.14 period Income from Investment Operations Net investment income (loss) (.19) (.29) (.11) (.05) (.06) D Net realized and unrealized (3.61) 11.84 4.18 9.09 .70 gain (loss) Total from investment (3.80) 11.55 4.07 9.04 .64 operations Less Distributions From net realized gain - (3.04) (2.17) (1.82) (.27) Redemption fees added to paid .08 .12 .07 .11 .13 in capital Net asset value, end of period $ 33.85 $ 37.57 $ 28.94 $ 26.97 $ 19.64 TOTAL RETURN A, B (9.90)% 42.68% 15.87% 47.40% 4.13% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 28,497 $ 101,805 $ 68,803 $ 26,648 $ 4,985 (000 omitted) Ratio of expenses to average 1.48% 1.77% 1.84% 1.77% C 2.49% C net assets Ratio of expenses to average 1.42% E 1.71% E 1.81% E 1.75% E 2.49% net assets after expense reductions Ratio of net investment (.53)% (.85)% (.39)% (.20)% (.32)% income (loss) to average net assets Portfolio turnover rate 221% 311% 219% 267% 146% A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C 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. D NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. E FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. F FOR THE YEAR ENDED FEBRUARY 29.
DEVELOPING COMMUNICATIONS Years ended February 28, 1999 1998 1997 1996 E 1995 SELECTED PER-SHARE DATA Net asset value, beginning of $ 20.14 $ 19.68 $ 19.42 $ 20.40 $ 19.65 period Income from Investment Operations Net investment income (loss) (.16) (.18) (.18) (.17) (.16) C Net realized and unrealized 12.72 4.95 .42 4.17 2.55 gain (loss) Total from investment 12.56 4.77 .24 4.00 2.39 operations Less Distributions From net realized gain (.07) (4.35) - (5.00) (1.67) Redemption fees added to paid .09 .04 .02 .02 .03 in capital Net asset value, end of period $ 32.72 $ 20.14 $ 19.68 $ 19.42 $ 20.40 TOTAL RETURN A, B 63.01% 28.17% 1.34% 21.84% 13.63% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 612,061 $ 238,356 $ 220,360 $ 333,185 $ 254,426 (000 omitted) Ratio of expenses to average 1.38% 1.61% 1.64% 1.53% 1.58% net assets Ratio of expenses to average 1.34% D 1.55% D 1.62% D 1.51% D 1.56% D net assets after expense reductions Ratio of net investment (.64)% (.82)% (.86)% (.78)% (.83)% income (loss) to average net assets Portfolio turnover rate 299% 383% 202% 249% 266% A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. E FOR THE YEAR ENDED FEBRUARY 29.
ELECTRONICS Years ended February 28, 1999 1998 1997 1996 E 1995 SELECTED PER-SHARE DATA Net asset value, beginning of $ 34.99 $ 37.95 $ 28.18 $ 19.80 $ 17.67 period Income from Investment Operations Net investment income (loss) (.23) (.17) (.17) (.08) (.18) C Net realized and unrealized 12.53 7.32 9.80 13.51 2.11 gain (loss) Total from investment 12.30 7.15 9.63 13.43 1.93 operations Less Distributions From net realized gain - (7.60) - (5.25) - In excess of net realized - (2.60) - - - gain Total distributions - (10.20) - (5.25) - Redemption fees added to paid .05 .09 .14 .20 .20 in capital Net asset value, end of period $ 47.34 $ 34.99 $ 37.95 $ 28.18 $ 19.80 TOTAL RETURN A, B 35.30% 24.15% 34.67% 72.75% 12.05% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 2,885,548 $ 2,668,750 $ 1,744,017 $ 1,133,362 $ 216,433 (000 omitted) Ratio of expenses to average 1.18% 1.18% 1.33% 1.25% 1.72% net assets Ratio of expenses to average 1.15% D 1.12% D 1.29% D 1.22% D 1.71% D net assets after expense reductions Ratio of net investment (.62)% (.42)% (.54)% (.28)% (.98)% income (loss) to average net assets Portfolio turnover rate 160% 435% 341% 366% 205%
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. E FOR THE YEAR ENDED FEBRUARY 29.
ENERGY Years ended February 28, 1999 1998 1997 1996 F 1995 SELECTED PER-SHARE DATA Net asset value, beginning of $ 21.20 $ 21.31 $ 18.97 $ 16.10 $ 16.73 period Income from Investment Operations Net investment income C .13 .11 .13 .18 .07 Net realized and unrealized (4.71) 3.93 3.59 3.13 (.11) gain (loss) Total from investment (4.58) 4.04 3.72 3.31 (.04) operations Less Distributions From net investment income (.02) E (.09) (.13) (.11) (.08) From net realized gain (.40)E (4.09) (1.31) (.36) (.54) Total distributions (.42) (4.18) (1.44) (.47) (.62) Redemption fees added to paid .03 .03 .06 .03 .03 in capital Net asset value, end of period $ 16.23 $ 21.20 $ 21.31 $ 18.97 $ 16.10 TOTAL RETURN A, B (22.00)% 20.40% 20.35% 20.92% .04% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 120,004 $ 147,023 $ 203,265 $ 119,676 $ 96,023 (000 omitted) Ratio of expenses to average 1.46% 1.58% 1.57% 1.63% 1.85% net assets Ratio of expenses to average 1.42% D 1.53% D 1.55% D 1.63% 1.85% net assets after expense reductions Ratio of net investment .68% .47% .62% 1.04% .42% income to average net assets Portfolio turnover rate 138% 115% 87% 97% 106% A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. E AMOUNTS SHOWN REFLECT SOME RECLASSIFICATION RELATED TO BOOK TO TAX DIFFERENCES. F FOR THE YEAR ENDED FEBRUARY 29.
ENERGY SERVICE Years ended February 28, 1999 1998 1997 1996 F 1995 SELECTED PER-SHARE DATA Net asset value, beginning of $ 28.02 $ 20.46 $ 16.09 $ 11.97 $ 11.66 period Income from Investment Operations Net investment income (loss) (.10) (.10) (.01) .08 D .02 C Net realized and unrealized (13.26) 9.36 5.05 4.49 .67 gain (loss) Total from investment (13.36) 9.26 5.04 4.57 .69 operations Less Distributions From net investment income - - - (.04) (.01) In excess of net investment - - - - (.01) income From net realized gain (1.71) (1.85) (.79) (.48) (.35) In excess of net realized - - - - (.13) gain Total distributions (1.71) (1.85) (.79) (.52) (.50) Redemption fees added to paid .14 .15 .12 .07 .12 in capital Net asset value, end of period $ 13.09 $ 28.02 $ 20.46 $ 16.09 $ 11.97 TOTAL RETURN A, B (50.57)% 48.43% 32.26% 39.15% 7.60% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 366,896 $ 919,002 $ 439,504 $ 273,805 $ 63,794 (000 omitted) Ratio of expenses to average 1.39% 1.25% 1.47% 1.59% 1.81% net assets Ratio of expenses to average 1.35% E 1.22% E 1.45% E 1.58% E 1.79% E net assets after expense reductions Ratio of net investment (.49)% (.35)% (.07)% .60% .19% income (loss) to average net assets Portfolio turnover rate 75% 78% 167% 223% 209%
A THE TOTALS RETURN WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D INVESTMENT INCOME PER SHARE REFLECTS A SPECIAL DIVIDEND WHICH AMOUNTED TO $.02 PER SHARE. E FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. F FOR THE YEAR ENDED FEBRUARY 29.
ENVIRONMENTAL SERVICES Years ended February 28, 1999 1998 1997 1996 E 1995 SELECTED PER-SHARE DATA Net asset value, beginning of $ 16.46 $ 14.50 $ 12.42 $ 10.27 $ 11.93 period Income from Investment Operations Net investment income (loss) (.18) (.13) (.08) (.17) (.14) c Net realized and unrealized (3.50) 2.07 2.04 2.95 (1.53) gain (loss) Total from investment (3.68) 1.94 1.96 2.78 (1.67) operations Less Distributions From net realized gain - - - (.65) - In excess of net realized (.03) - (.02) - - gain Total distributions (.03) - (.02) (.65) - Redemption fees added to paid .02 .02 .14 .02 .01 in capital Net asset value, end of period $ 12.77 $ 16.46 $ 14.50 $ 12.42 $ 10.27 TOTAL RETURN A, b (22.23)% 13.52% 16.93% 27.49% (13.91)% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 15,534 $ 25,183 $ 32,525 $ 27,587 $ 31,270 (000 omitted) Ratio of expenses to average 2.20% 2.23% 2.18% 2.36% 2.04% net assets Ratio of expenses to average 2.16% d 2.22% d 2.11% d 2.32% d 2.01% d net assets after expense reductions Ratio of net investment (1.23)% (.84)% (.59)% (1.43)% (1.32)% income (loss) to average net assets Portfolio turnover rate 123% 59% 252% 138% 82% A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. E FOR THE YEAR ENDED FEBRUARY 29.
FINANCIAL SERVICES Years ended February 28, 1999 1998 1997 1996 E 1995 SELECTED PER-SHARE DATA Net asset value, beginning of $ 103.28 $ 82.94 $ 65.70 $ 48.23 $ 51.24 period Income from Investment Operations Net investment income C .56 .70 .74 1.03 .76 Net realized and unrealized 7.88 30.65 21.55 17.56 .87 gain (loss) Total from investment 8.44 31.35 22.29 18.59 1.63 operations Less Distributions From net investment income (.19) (.64) (.63) (.37) (.79) From net realized gain (10.81) (10.51) (4.56) (.91) (3.93) Total distributions (11.00) (11.15) (5.19) (1.28) (4.72) Redemption fees added to paid .10 .14 .14 .16 .08 in capital Net asset value, end of period $ 100.82 $ 103.28 $ 82.94 $ 65.70 $ 48.23 TOTAL RETURN A, B 8.42% 41.08% 35.54% 39.05% 4.72% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 547,000 $ 604,908 $ 426,424 $ 270,466 $ 153,089 (000 omitted) Ratio of expenses to average 1.20% 1.31% 1.45% 1.42% 1.56% net assets Ratio of expenses to average 1.18% D 1.29% D 1.43% D 1.41% D 1.54% D net assets after expense reductions Ratio of net investment .58% .78% 1.03% 1.78% 1.52% income to average net assets Portfolio turnover rate 60% 84% 80% 125% 107%
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. E FOR THE YEAR ENDED FEBRUARY 29.
FOOD AND AGRICULTURE Years ended February 28, 1999 1998 1997 1996 E 1995 SELECTED PER-SHARE DATA Net asset value, beginning of $ 48.81 $ 44.53 $ 42.15 $ 32.53 $ 31.49 period Income from Investment Operations Net investment income C .21 .33 .42 .37 .15 Net realized and unrealized 3.50 9.22 4.91 11.61 2.80 gain (loss) Total from investment 3.71 9.55 5.33 11.98 2.95 operations Less Distributions From net investment income (.16) (.37) (.24) (.20) (.08) From net realized gain (5.47) (4.95) (2.77) (2.20) (1.85) Total distributions (5.63) (5.32) (3.01) (2.40) (1.93) Redemption fees added to paid .03 .05 .06 .04 .02 in capital Net asset value, end of period $ 46.92 $ 48.81 $ 44.53 $ 42.15 $ 32.53 TOTAL RETURN A, B 7.83% 23.58% 13.59% 37.92% 10.14% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 206,007 $ 250,567 $ 223,423 $ 301,102 $ 197,130 (000 omitted) Ratio of expenses to average 1.31% 1.49% 1.52% 1.43% 1.70% net assets Ratio of expenses to average 1.29% D 1.48% D 1.50% D 1.42% D 1.68% D net assets after expense reductions Ratio of net investment .45% .73% 1.01% .99% .49% income to average net assets Portfolio turnover rate 68% 74% 91% 124% 126% A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. E FOR THE YEAR ENDED FEBRUARY 29.
GOLD Years ended February 28, 1999 1998 1997 1996 E 1995 SELECTED PER-SHARE DATA Net asset value, beginning of $ 15.17 $ 28.21 $ 27.11 $ 18.44 $ 22.66 period Income from Investment Operations Net investment income (loss) (.08) (.13) (.16) (.06) (.05) C Net realized and unrealized (2.43) (11.78) 1.60 8.62 (4.25) gain (loss) Total from investment (2.51) (11.91) 1.44 8.56 (4.30) operations Less Distributions From net realized gain - (1.29) (.50) - - Redemption fees added to paid .13 .16 .16 .11 .08 in capital Net asset value, end of period $ 12.79 $ 15.17 $ 28.21 $ 27.11 $ 18.44 TOTAL RETURN A, B (15.69)% (43.15)% 6.10% 47.02% (18.62)% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 179,619 $ 219,668 $ 428,103 $ 451,493 $ 278,197 (000 omitted) Ratio of expenses to average 1.57% 1.55% 1.44% 1.39% 1.41% net assets Ratio of expenses to average 1.54% D 1.48% D 1.42% D 1.39% 1.41% net assets after expense reductions Ratio of net investment (.59)% (.67)% (.59)% (.27)% (.22)% income (loss) to average net assets Portfolio turnover rate 59% 89% 63% 56% 34%
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. E FOR THE YEAR ENDED FEBRUARY 29.
HEALTH CARE Years ended February 28, 1999 1998 1997 1996 E 1995 SELECTED PER-SHARE DATA Net asset value, beginning of $ 113.84 $ 102.45 $ 100.47 $ 76.13 $ 63.31 period Income from Investment Operations Net investment income C .17 .33 .52 .95 .75 Net realized and unrealized 29.85 31.94 18.01 28.85 18.38 gain (loss) Total from investment 30.02 32.27 18.53 29.80 19.13 operations Less Distributions From net investment income (.19) (.25) (.65) (.59) (.62) From net realized gain (6.17) (20.73) (15.95) (4.92) (5.74) Total distributions (6.36) (20.98) (16.60) (5.51) (6.36) Redemption fees added to paid .10 .10 .05 .05 .05 in capital Net asset value, end of period $ 137.60 $ 113.84 $ 102.45 $ 100.47 $ 76.13 TOTAL RETURN A, B 27.20% 36.47% 20.41% 39.68% 31.24% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 3,145,825 $ 2,224,019 $ 1,372,554 $ 1,525,910 $ 943,141 (000 omitted) Ratio of expenses to average 1.07% 1.20% 1.33% 1.31% 1.39% net assets Ratio of expenses to average 1.05% D 1.18% D 1.32% D 1.30% D 1.36% D net assets after expense reductions Ratio of net investment .14% .31% .52% 1.06% 1.08% income to average net assets Portfolio turnover rate 66% 79% 59% 54% 151%
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. E FOR THE YEAR ENDED FEBRUARY 29.
HOME FINANCE Years ended February 28, 1999 1998 1997 1996 E 1995 SELECTED PER-SHARE DATA Net asset value, beginning of $ 53.36 $ 46.00 $ 33.30 $ 23.92 $ 25.03 period Income from Investment Operations Net investment income c .28 .33 .53 .53 .20 Net realized and unrealized (10.16) 13.10 14.60 9.72 2.34 gain (loss) Total from investment (9.88) 13.43 15.13 10.25 2.54 operations Less Distributions From net investment income (.07) (.29) (.32) (.19) (.12) From net realized gain (1.38) (5.84) (2.16) (.73) (3.60) Total distributions (1.45) (6.13) (2.48) (.92) (3.72) Redemption fees added to paid .06 .06 .05 .05 .07 in capital Net asset value, end of period $ 42.09 $ 53.36 $ 46.00 $ 33.30 $ 23.92 TOTAL RETURN a,b (19.12)% 32.39% 47.50% 43.24% 12.43% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 740,440 $ 1,668,610 $ 1,176,828 $ 617,035 $ 229,924 (000 omitted) Ratio of expenses to average 1.19% 1.21% 1.38% 1.35% 1.47% net assets Ratio of expenses to average 1.18% d 1.19% d 1.34% d 1.32% d 1.45% d net assets after expense reductions Ratio of net investment .57% .67% 1.41% 1.80% .80% income to average net assets Portfolio turnover rate 18% 54% 78% 81% 124% A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. E FOR THE YEAR ENDED FEBRUARY 29.
INDUSTRIAL EQUIPMENT Years ended February 28, 1999 1998 1997 1996 E 1995 SELECTED PER-SHARE DATA Net asset value, beginning of $ 25.91 $ 25.51 $ 25.11 $ 20.04 $ 20.61 period Income from Investment Operations Net investment income (loss) (.04) (.08) .06 .04 .01 C Net realized and unrealized .25 5.73 4.15 7.10 (.44) gain (loss) Total from investment .21 5.65 4.21 7.14 (.43) operations Less Distributions From net investment income - (.02) (.04) (.05) (.01) From net realized gain (.92) (5.26) (3.84) (2.05) (.16) Total distributions (.92) (5.28) (3.88) (2.10) (.17) Redemption fees added to paid .03 .03 .07 .03 .03 in capital Net asset value, end of period $ 25.23 $ 25.91 $ 25.51 $ 25.11 $ 20.04 TOTAL RETURN A, B 1.00% 25.76% 18.25% 36.86% (1.93)% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 31,573 $ 50,428 $ 102,882 $ 137,520 $ 109,968 (000 omitted) Ratio of expenses to average 1.43% 1.67% 1.51% 1.54% 1.80% net assets Ratio of expenses to average 1.41% D 1.60% D 1.44% D 1.53% D 1.78% D net assets after expense reductions Ratio of net investment (.16)% (.32)% .25% .19% .06% income (loss) to average net assets Portfolio turnover rate 84% 115% 261% 115% 131%
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. E FOR THE YEAR ENDED FEBRUARY 29.
INDUSTRIAL MATERIALS Years ended February 28, 1999 1998 1997 1996 E 1995 SELECTED PER-SHARE DATA Net asset value, beginning of $ 25.00 $ 27.66 $ 26.07 $ 23.13 $ 21.67 period Income from Investment Operations Net investment income (loss) (.12) (.11) .06 .12 .17 C Net realized and unrealized (4.60) 1.43 3.12 2.92 1.43 gain (loss) Total from investment (4.72) 1.32 3.18 3.04 1.60 operations Less Distributions From net investment income - (.03) (.06) (.15) (.18) From net realized gain - (4.00) (1.57) - - Total distributions - (4.03) (1.63) (.15) (.18) Redemption fees added to paid .04 .05 .04 .05 .04 in capital Net asset value, end of period $ 20.32 $ 25.00 $ 27.66 $ 26.07 $ 23.13 TOTAL RETURN A, B (18.72)% 6.59% 12.69% 13.38% 7.65% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 11,162 $ 22,582 $ 66,462 $ 86,338 $ 183,454 (000 omitted) Ratio of expenses to average 2.07% 1.98% 1.54% 1.64% 1.56% net assets Ratio of expenses to average 2.04% D 1.94% D 1.51% D 1.61% D 1.53% D net assets after expense reductions Ratio of net investment (.52)% (.42)% .23% .49% .77% income (loss) to average net assets Portfolio turnover rate 82% 118% 105% 138% 139%
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE . C NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. E FOR THE YEAR ENDED FEBRUARY 29.
INSURANCE Years ended February 28, 1999 1998 1997 1996 E 1995 SELECTED PER-SHARE DATA Net asset value, beginning of $ 42.10 $ 32.62 $ 26.77 $ 21.31 $ 19.41 period Income from Investment Operations Net investment income (loss) (.04) .01 .01 .06 .05 C Net realized and unrealized 4.01 12.93 7.21 6.15 1.78 gain (loss) Total from investment 3.97 12.94 7.22 6.21 1.83 operations Less Distributions From net investment income - - (.03) (.07) - From net realized gain (3.98) (3.54) (1.45) (.72) - Total distributions (3.98) (3.54) (1.48) (.79) - Redemption fees added to paid .05 .08 .11 .04 .07 in capital Net asset value, end of period $ 42.14 $ 42.10 $ 32.62 $ 26.77 $ 21.31 TOTAL RETURN A, B 9.84% 42.81% 28.28% 29.51% 9.79% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 82,879 $ 125,151 $ 42,367 $ 38,994 $ 21,838 (000 omitted) Ratio of expenses to average 1.33% 1.45% 1.82% 1.77% 2.36% net assets Ratio of expenses to average 1.31% D 1.43% D 1.77% D 1.74% D 2.34% D net assets after expense reductions Ratio of net investment (.10)% .02% .05% .26% .25% income (loss) to average net assets Portfolio turnover rate 72% 157% 142% 164% 265% A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. E FOR THE YEAR ENDED FEBRUARY 29.
LEISURE Years ended February 28, 1999 1998 1997 1996 F 1995 SELECTED PER-SHARE DATA Net asset value, beginning of $ 62.30 $ 47.83 $ 46.17 $ 40.71 $ 45.30 period Income from Investment Operations Net investment income (loss) (.27) (.25) (.06) E (.21) (.21) C Net realized and unrealized 22.78 21.10 4.47 10.97 (.48) gain (loss) Total from investment 22.51 20.85 4.41 10.76 (.69) operations Less Distributions From net realized gain (3.44) (6.46) (2.83) (5.32) (3.93) Redemption fees added to paid .07 .08 .08 .02 .03 in capital Net asset value, end of period $ 81.44 $ 62.30 $ 47.83 $ 46.17 $ 40.71 TOTAL RETURN A, B 37.54% 47.29% 10.14% 27.61% (1.07)% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 346,139 $ 257,199 $ 98,133 $ 85,013 $ 69,569 (000 omitted) Ratio of expenses to average 1.26% 1.44% 1.56% 1.64% 1.64% net assets Ratio of expenses to average 1.24% D 1.39% D 1.54% D 1.63% D 1.62% D net assets after expense reductions Ratio of net investment (.40)% (.46)% (.12)% (.46)% (.52)% income (loss) to average net assets Portfolio turnover rate 107% 209% 127% 141% 103% A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. E INVESTMENT INCOME (LOSS) PER SHARE REFLECTS A SPECIAL DIVIDEND WHICH AMOUNTED TO $.23 PER SHARE. F FOR THE YEAR ENDED FEBRUARY 29.
MEDICAL DELIVERY Years ended February 28, 1999 1998 1997 1996 E 1995 SELECTED PER-SHARE DATA Net asset value, beginning of $ 28.32 $ 28.29 $ 29.00 $ 23.18 $ 20.28 period Income from Investment Operations Net investment income (loss) (.06) F (.24) (.23) (.03) .06 C Net realized and unrealized (7.88) 5.45 2.92 7.72 3.74 gain (loss) Total from investment (7.94) 5.21 2.69 7.69 3.80 operations Less Distributions From net investment income - - - - (.06) From net realized gain (1.21) (5.23) (3.45) (1.91) (.89) In excess of net realized (.13) - - - -- gain Total distributions (1.34) (5.23) (3.45) (1.91) (.95) Redemption fees added to paid .04 .05 .05 .04 .05 in capital Net asset value, end of period $ 19.08 $ 28.32 $ 28.29 $ 29.00 $ 23.18 TOTAL RETURN A, B (29.47)% 21.97% 10.50% 34.15% 19.63% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 76,842 $ 155,542 $ 192,385 $ 295,489 $ 299,570 (000 omitted) Ratio of expenses to average 1.40% 1.57% 1.57% 1.65% 1.48% net assets Ratio of expenses to average 1.37% d 1.53% d 1.53% d 1.62% d 1.45% d net assets after expense reductions Ratio of net investment (.25)% (.88)% (.84)% (.13)% .29% income (loss) to average net assets Portfolio turnover rate 67% 109% 78% 132% 123% A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. E FOR THE YEAR ENDED FEBRUARY 29. F NET INVESTMENT INCOME (LOSS) PER SHARE REFLECTS A SPECIAL DIVIDEND FROM VENCOR, INC., WHICH AMOUNTED TO $.12 PER SHARE.
MEDICAL EQUIPMENT AND SYSTEMS Year ended February 28, 1999 F SELECTED PER-SHARE DATA Net asset value, beginning of $ 10.00 period Income from Investment Operations Net investment income (loss) (.11) D Net realized and unrealized 2.18 gain (loss) Total from investment 2.07 operations Redemption fees added to paid .03 in capital Net asset value, end of period $ 12.10 TOTAL RETURN B, C 21.00% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 28,594 (000 omitted) Ratio of expenses to average 2.39% A net assets Ratio of expenses to average 2.38% A, E net assets after expense reductions Ratio of net investment (1.21)% A income (loss) to average net assets Portfolio turnover rate 85% A A ANNUALIZED B THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIOD SHOWN. C TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. D NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. E FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. F FOR THE PERIOD APRIL 28, 1998 (COMMENCEMENT OF OPERATIONS) TO FEBRUARY 28, 1999.
MULTIMEDIA Years ended February 28, 1999 1998 1997 1996 F 1995 SELECTED PER-SHARE DATA Net asset value, beginning of $ 33.58 $ 24.91 $ 27.18 $ 22.35 $ 23.87 period Income from Investment Operations Net investment income (loss) (.19) (.17) .35 D .02 (.01) C Net realized and unrealized 11.85 10.30 (1.58) 7.00 1.67 gain (loss) Total from investment 11.66 10.13 (1.23) 7.02 1.66 operations Less Distributions From net investment income - - - (.02) - From net realized gain (2.19) (1.52) (1.07) (2.19) (3.21) Total distributions (2.19) (1.52) (1.07) (2.21) (3.21) Redemption fees added to paid .08 .06 .03 .02 .03 in capital Net asset value, end of period $ 43.13 $ 33.58 $ 24.91 $ 27.18 $ 22.35 TOTAL RETURN A, B 36.68% 42.42% (4.52)% 31.98% 9.35% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 159,730 $ 115,485 $ 54,171 $ 94,970 $ 38,157 (000 omitted) Ratio of expenses to average 1.35% 1.75% 1.60% 1.56% 2.05% net assets Ratio of expenses to average 1.33% E 1.71% E 1.56% E 1.54% E 2.03% E net assets after expense reductions Ratio of net investment (.52)% (.59)% 1.33% .08% (.07)% income (loss) to average net assets Portfolio turnover rate 109% 219% 99% 223% 107% A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE . C NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D INVESTMENT INCOME PER SHARE REFLECTS A SPECIAL DIVIDEND WHICH AMOUNTED TO $.49 PER SHARE. E FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. F FOR THE YEAR ENDED FEBRUARY 29.
NATURAL GAS Years ended February 28, 1999 1998 1997 1996 F 1995 SELECTED PER-SHARE DATA Net asset value, beginning of $ 13.22 $ 12.50 $ 11.36 $ 8.98 $ 9.48 period Income from Investment Operations Net investment income (loss) .12 E (.05) (.06) .05 .03 C Net realized and unrealized (2.68) 1.06 1.30 2.36 (.53) gain (loss) Total from investment (2.56) 1.01 1.24 2.41 (.50) operations Less Distributions From net investment income (.10) - (.01) (.05) (.02) From net realized gain - (.30) (.29) - - In excess of net realized - (.03) - - - gain Total distributions (.10) (.33) (.30) (.05) (.02) Redemption fees added to paid .03 .04 .20 .02 .02 in capital Net asset value, end of period $ 10.59 $ 13.22 $ 12.50 $ 11.36 $ 8.98 TOTAL RETURN A, B (19.17)% 8.74% 12.45% 27.10% (5.06)% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 36,828 $ 59,866 $ 81,566 $ 60,228 $ 79,894 (000 omitted) Ratio of expenses to average 1.57% 1.82% 1.70% 1.68% 1.70% net assets Ratio of expenses to average 1.52% D 1.78% D 1.66% D 1.67% D 1.66% D net assets after expense reductions Ratio of net investment .93% (.37)% (.46)% .46% .30% income (loss) to average net assets Portfolio turnover rate 107% 118% 283% 79% 177% A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. E NET INVESTMENT INCOME PER SHARE REFLECTS A SPECIAL DIVIDEND FROM TRANSCANADA PIPELINES LTD. WHICH AMOUNTED TO $.10 PER SHARE. F FOR THE YEAR ENDED FEBRUARY 29.
NATURAL RESOURCES Years ended February 28, 1999 1998 E SELECTED PER-SHARE DATA Net asset value, beginning of $ 10.46 $ 10.00 period Income from Investment Operations Net investment income (loss) (.05) (.09) d Net realized and unrealized (2.54) .76 gain (loss) Total from investment (2.59) .67 operations Less Distributions From net realized gain - (.26) Redemption fees added to paid .02 .05 in capital Net asset value, end of period $ 7.89 $ 10.46 TOTAL RETURN B, C (24.57)% 7.30% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 5,134 $ 7,520 (000 omitted) Ratio of expenses to average 2.50% F 2.50% A, F net assets Ratio of expenses to average 2.47% G 2.48% A, G net assets after expense reductions Ratio of net investment (.54)% (.86)% A income (loss) to average net assets Portfolio turnover rate 155% 165% A A ANNUALIZED B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. C TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. D NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. E FOR THE PERIOD MARCH 3, 1997 (COMMENCEMENT OF OPERATIONS) TO FEBRUARY 28, 1998. F FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD HAVE BEEN HIGHER. G FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES.
PAPER AND FOREST PRODUCTS Years ended February 28, 1999 1998 1997 1996 E 1995 SELECTED PER-SHARE DATA Net asset value, beginning of $ 22.66 $ 21.63 $ 20.78 $ 21.14 $ 19.61 period Income from Investment Operations Net investment income (loss) (.03) (.12) .01 .08 .01 C Net realized and unrealized (3.87) 3.13 2.08 1.83 2.53 gain (loss) Total from investment (3.90) 3.01 2.09 1.91 2.54 operations Less Distributions From net investment income - - (.03) (.08) - In excess of net investment - (.04) (.07) - - income From net realized gain -- (2.07) (1.25) (2.27) (1.17) In excess of net realized (.44) -- -- -- -- gain Total distributions (.44) (2.11) (1.35) (2.35) (1.17) Redemption fees added to paid .13 .13 .11 .08 .16 in capital Net asset value, end of period $ 18.45 $ 22.66 $ 21.63 $ 20.78 $ 21.14 TOTAL RETURN A, B (17.01)% 15.53% 10.87% 9.18% 14.91% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 10,247 $ 31,384 $ 19,484 $ 27,270 $ 94,219 (000 omitted) Ratio of expenses to average 2.30% 2.18% 2.19% 1.91% 1.88% net assets Ratio of expenses to average 2.21% D 2.15% D 2.16% D 1.90% D 1.87% D net assets after expense reductions Ratio of net investment (.13)% (.50)% .04% .34% .05% income (loss) to average net assets Portfolio turnover rate 338% 235% 180% 78% 209%
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. E FOR THE YEAR ENDED FEBRUARY 29.
PRECIOUS METALS AND MINERALS Years ended February 28, 1999 1998 1997 1996 E 1995 SELECTED PER-SHARE DATA Net asset value, beginning of $ 10.28 $ 19.60 $ 20.96 $ 15.27 $ 16.62 period Income from Investment Operations Net investment income (loss) (.01) (.04) (.01) .07 .17 C Net realized and unrealized (1.27) (9.42) (1.42) 5.54 (1.42) gain (loss) Total from investment (1.28) (9.46) (1.43) 5.61 (1.25) operations Less Distributions From net investment income - - (.04) (.06) (.18) In excess of net investment - - (.01) - (.05) income Total distributions - - (.05) (.06) (.23) Redemption fees added to paid .16 .14 .12 .14 .13 in capital Net asset value, end of period $ 9.16 $ 10.28 $ 19.60 $ 20.96 $ 15.27 TOTAL RETURN A, B (10.89)% (47.55)% (6.26)% 37.74% (6.86)% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 123,439 $ 165,960 $ 325,586 $ 467,196 $ 364,204 (000 omitted) Ratio of expenses to average 1.78% 1.82% 1.62% 1.52% 1.46% net assets Ratio of expenses to average 1.74% D 1.76% D 1.61% D 1.52% 1.46% net assets after expense reductions Ratio of net investment (.09)% (.26)% (.05)% .39% .99% income (loss) to average net assets Portfolio turnover rate 53% 84% 54% 53% 43% A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. E FOR THE YEAR ENDED FEBRUARY 29.
REGIONAL BANKS Years ended February 28, 1999 1998 1997 1996 E 1995 SELECTED PER-SHARE DATA Net asset value, beginning of $ 43.18 $ 32.82 $ 24.37 $ 18.01 $ 17.99 period Income from Investment Operations Net investment income C .39 .40 .37 .52 .37 Net realized and unrealized .91 11.41 9.70 6.78 .87 gain (loss) Total from investment 1.30 11.81 10.07 7.30 1.24 operations Less Distributions From net investment income (.28) (.28) (.27) (.25) (.29) From net realized gain (2.66) (1.23) (1.40) (.72) (.98) Total distributions (2.94) (1.51) (1.67) (.97) (1.27) Redemption fees added to paid .03 .06 .05 .03 .05 in capital Net asset value, end of period $ 41.57 $ 43.18 $ 32.82 $ 24.37 $ 18.01 TOTAL RETURN A, B 3.10% 36.64% 43.33% 40.94% 7.79% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 925,829 $ 1,338,896 $ 837,952 $ 315,178 $ 164,603 (000 omitted) Ratio of expenses to average 1.17% 1.25% 1.46% 1.41% 1.58% net assets Ratio of expenses to average 1.16% D 1.24% D 1.45% D 1.40% D 1.56% D net assets after expense reductions Ratio of net investment .91% 1.07% 1.36% 2.42% 1.99% income to average net assets Portfolio turnover rate 22% 25% 43% 103% 106% A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. E FOR THE YEAR ENDED FEBRUARY 29.
RETAILING Years ended February 28, 1999 1998 1997 1996 E 1995 SELECTED PER-SHARE DATA Net asset value, beginning of $ 50.04 $ 33.25 $ 27.87 $ 23.91 $ 24.91 period Income from Investment Operations Net investment income (loss) (.28) (.27) (.13) (.14) (.18) C Net realized and unrealized 18.27 17.14 5.49 4.07 (.96) gain (loss) Total from investment 17.99 16.87 5.36 3.93 (1.14) operations Less Distributions From net realized gain (.39) (.51) (.08) - - In excess of net realized (.30) -- -- - - gain Total distributions (.69) (.51) (.08) - - Redemption fees added to paid .16 .43 .10 .03 .14 in capital Net asset value, end of period $ 67.50 $ 50.04 $ 33.25 $ 27.87 $ 23.91 TOTAL RETURN A, B 36.66% 52.61% 19.59% 16.56% (4.01)% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 337,513 $ 192,861 $ 59,348 $ 44,051 $ 31,090 (000 omitted) Ratio of expenses to average 1.25% 1.63% 1.45% 1.94% 2.07% net assets Ratio of expenses to average 1.22% D 1.55% D 1.39% D 1.92% D 1.96% D net assets after expense reductions Ratio of net investment (.50)% (.67)% (.39)% (.53)% (.74)% income (loss) to average net assets Portfolio turnover rate 165% 308% 278% 235% 481%
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. E FOR THE YEAR ENDED FEBRUARY 29.
SOFTWARE AND COMPUTER SERVICES Years ended February 28, 1999 1998 1997 1996 E 1995 SELECTED PER-SHARE DATA Net asset value, beginning of $ 44.26 $ 38.58 $ 36.20 $ 29.07 $ 28.89 period Income from Investment Operations Net investment income (loss) (.39) (.33) (.25) (.19) (.26) C Net realized and unrealized 14.46 12.57 5.87 11.85 .67 gain (loss) Total from investment 14.07 12.24 5.62 11.66 .41 operations Less Distributions From net realized gain (1.32) (6.61) (3.31) (4.60) (.33) Redemption fees added to paid .08 .05 .07 .07 .10 in capital Net asset value, end of period $ 57.09 $ 44.26 $ 38.58 $ 36.20 $ 29.07 TOTAL RETURN A, B 32.57% 35.50% 16.14% 40.17% 1.97% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 690,852 $ 503,367 $ 389,699 $ 337,633 $ 236,445 (000 omitted) Ratio of expenses to average 1.28% 1.44% 1.54% 1.48% 1.52% net assets Ratio of expenses to average 1.27% D 1.42% D 1.51% D 1.47% D 1.50% D net assets after expense reductions Ratio of net investment (.82)% (.81)% (.66)% (.54)% (1.01)% income (loss) to average net assets Portfolio turnover rate 72% 145% 279% 183% 164% A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. E FOR THE YEAR ENDED FEBRUARY 29.
TECHNOLOGY Years ended February 28, 1999 1998 1997 1996 E 1995 SELECTED PER-SHARE DATA Net asset value, beginning of $ 53.13 $ 57.70 $ 54.67 $ 42.05 $ 41.83 period Income from Investment Operations Net investment income (loss) (.34) (.25) (.39) (.28) (.39) C Net realized and unrealized 29.79 11.29 6.95 20.83 1.95 gain (loss) Total from investment 29.45 11.04 6.56 20.55 1.56 operations Less Distributions From net realized gain - (12.39) (3.68) (8.05) (1.50) In excess of net realized - (3.30) - - - gain Total distributions - (15.69) (3.68) (8.05) (1.50) Redemption fees added to paid .12 .08 .15 .12 .16 in capital Net asset value, end of period $ 82.70 $ 53.13 $ 57.70 $ 54.67 $ 42.05 TOTAL RETURN A, B 55.66% 24.92% 12.64% 50.71% 4.61% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 1,367,148 $ 691,924 $ 478,444 $ 483,026 $ 229,761 (000 omitted) Ratio of expenses to average 1.24% 1.38% 1.49% 1.40% 1.57% net assets Ratio of expenses to average 1.20% D 1.30% D 1.44% D 1.39% D 1.56% D net assets after expense reductions Ratio of net investment (.54)% (.45)% (.72)% (.52)% (.98)% income (loss) to average net assets Portfolio turnover rate 339% 556% 549% 112% 102% A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE . C NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. E FOR THE YEAR ENDED FEBRUARY 29.
TELECOMMUNICATIONS Years ended February 28, 1999 1998 1997 1996 F 1995 SELECTED PER-SHARE DATA Net asset value, beginning of $ 53.37 $ 41.80 $ 44.87 $ 38.34 $ 37.10 period Income from Investment Operations Net investment income (loss) (.06) (.25) .12 D .51 .29 C Net realized and unrealized 11.43 18.20 2.92 9.15 2.54 gain (loss) Total from investment 11.37 17.95 3.04 9.66 2.83 operations Less Distributions From net investment income - - (.16) (.39) (.33) From net realized gain (2.96) (6.44) (5.98) (2.75) (1.27) Total distributions (2.96) (6.44) (6.14) (3.14) (1.60) Redemption fees added to paid .07 .06 .03 .01 .01 in capital Net asset value, end of period $ 61.85 $ 53.37 $ 41.80 $ 44.87 $ 38.34 TOTAL RETURN A, B 22.21% 46.52% 7.85% 25.79% 7.98% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 824,175 $ 643,449 $ 388,535 $ 468,300 $ 369,476 (000 omitted) Ratio of expenses to average 1.27% 1.51% 1.51% 1.52% 1.56% net assets Ratio of expenses to average 1.25% E 1.48% E 1.47% E 1.52% 1.55% E net assets after expense reductions Ratio of net investment (.11)% (.53)% .27% 1.17% .77% income (loss) to average net assets Portfolio turnover rate 150% 157% 175% 89% 107% A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D INVESTMENT INCOME PER SHARE REFLECTS A SPECIAL DIVIDEND WHICH AMOUNTED TO $.07 PER SHARE. E FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. F FOR THE YEAR ENDED FEBRUARY 29.
TRANSPORTATION Years ended February 28, 1999 1998 1997 1996 G 1995 SELECTED PER-SHARE DATA Net asset value, beginning of $ 28.34 $ 22.23 $ 21.92 $ 20.53 $ 21.67 period Income from Investment Operations Net investment income (loss) (.18) (.02) (.13) (.09) D (.17) C Net realized and unrealized (.58) 8.85 1.06 2.60 1.17 gain (loss) Total from investment (.76) 8.83 .93 2.51 1.00 operations Less Distributions From net realized gain (2.64) (2.80) (.71) (1.22) (2.19) Redemption fees added to paid .10 .08 .09 .10 .05 in capital Net asset value, end of period $ 25.04 $ 28.34 $ 22.23 $ 21.92 $ 20.53 TOTAL RETURN A, B (1.73)% 41.15% 4.67% 12.95% 5.90% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 19,855 $ 64,282 $ 8,890 $ 11,445 $ 12,704 (000 omitted) Ratio of expenses to average 1.96% 1.58% 2.50% E 2.47% E 2.37% net assets Ratio of expenses to average 1.90% F 1.54% F 2.48% F 2.44% F 2.36% F net assets after expense reductions Ratio of net investment (.68)% (.06)% (.58)% (.43)% (.83)% income (loss) to average net assets Portfolio turnover rate 182% 210% 148% 175% 178% A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D INVESTMENT INCOME PER SHARE REFLECTS A SPECIAL DIVIDEND WHICH AMOUNTED TO $.05 PER SHARE. E 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 FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. G FOR THE YEAR ENDED FEBRUARY 29.
UTILITIES GROWTH Years ended February 28, 1999 1998 1997 1996 E 1995 SELECTED PER-SHARE DATA Net asset value, beginning of $ 53.50 $ 45.97 $ 43.03 $ 34.88 $ 36.61 period Income from Investment Operations Net investment income C .44 .54 .73 1.10 1.13 Net realized and unrealized 15.77 14.83 6.41 7.86 (1.17) gain (loss) Total from investment 16.21 15.37 7.14 8.96 (.04) operations Less Distributions From net investment income (.25) (.58) (.70) (.84) (1.05) From net realized gain (7.93) (7.30) (3.54) - (.67) Total distributions (8.18) (7.88) (4.24) (.84) (1.72) Redemption fees added to paid .05 .04 .04 .03 .03 in capital Net asset value, end of period $ 61.58 $ 53.50 $ 45.97 $ 43.03 $ 34.88 TOTAL RETURN A, B 32.17% 36.20% 18.13% 25.82% .21% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 507,841 $ 401,927 $ 256,844 $ 266,768 $ 237,635 (000 omitted) Ratio of expenses to average 1.18% 1.33% 1.47% 1.39% 1.43% net assets Ratio of expenses to average 1.16% D 1.30% D 1.46% D 1.38% D 1.42% D net assets after expense reductions Ratio of net investment .77% 1.11% 1.73% 2.76% 3.24% income to average net assets Portfolio turnover rate 113% 78% 31% 65% 24% A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE . C NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. E FOR THE YEAR ENDED FEBRUARY 29.
MONEY MARKET Years ended February 28, 1999 1998 1997 1996C 1995 SELECTED PER-SHARE DATA Net asset value, beginning of $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 period Income from Investment .050 .051 .049 .054 .042 Operations Net interest income Less Distributions From net interest income (.050) (.051) (.049) (.054) (.042) Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 TOTAL RETURN A 5.08% 5.26% 5.02% 5.56% 4.28% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 1,126,174 $ 584,919 $ 848,168 $ 610,821 $ 573,144 (000 omitted) Ratio of expenses to average .50% .56% .56% .59% .65% net assets Ratio of expenses to average .49% B .56% .56% .59% .65% net assets after expense reductions Ratio of net interest income 5.03% 5.13% 4.92% 5.39% 4.19% to average net assets
A TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. 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 YEAR ENDED FEBRUARY 29. You can obtain additional information about the funds. The funds' SAI includes more detailed information about each fund and its investments. The SAI is incorporated herein by reference (legally forms a part of the prospectus). Each fund's annual and semi-annual reports include a discussion of the fund's holdings and recent market conditions and the fund's investment strategies that affected performance. For a free copy of any of these documents or to request other information or ask questions about a fund, call Fidelity at 1-800-544-8544 or visit Fidelity's Web site at www.fidelity.com. The SAI, the funds' annual and semi-annual reports and other related materials are available on the SEC's Internet Web site (http://www.sec.gov). You can obtain copies of this information upon paying a duplicating fee, by writing the Public Reference Section of the SEC, Washington, D.C. 20549-6009. You can also review and copy information about the funds, including the funds' SAI, at the SEC's Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the SEC's Public Reference Room. INVESTMENT COMPANY ACT OF 1940, FILE NUMBER 811-3114 Select Portfolios, Fidelity Investments & (Pyramid) Design, Fidelity, Fidelity Investments, TouchTone Xpress, Fidelity Money Line, Fidelity Automatic Account Builder, Fidelity On-Line Xpress+, and Directed Dividends are registered trademarks of FMR Corp. Portfolio Advisory Services is a service mark of FMR Corp. The third party marks appearing above are the marks of their respective owners. 1.701898.101 SEL-pro-0499 FIDELITY SELECT PORTFOLIOS(registered trademark) STATEMENT OF ADDITIONAL INFORMATION APRIL 29, 1999 This Statement of Additional Information (SAI) is not a prospectus. Portions of the funds' Annual Report are incorporated herein. The Annual Report is supplied with this SAI. To obtain a free additional copy of the Prospectus, dated April 29, 1999, or an Annual Report, please call Fidelity(registered trademark) at 1-800-544-8544 or visit Fidelity's Web site at www.fidelity.com. TABLE OF CONTENTS PAGE Investment Policies and 94 Limitations Portfolio Transactions 103 Valuation 115 Performance 116 Additional Purchase, Exchange 214 and Redemption Information Distributions and Taxes 214 Trustees and Officers 215 Control of Investment Advisers 225 Management Contracts 225 Distribution Services 240 Transfer and Service Agent 250 Agreements Description of the Trust 253 Financial Statements 254 Appendix 254 SEL-ptb-0499 1.474722.101 (fidelity_logo_graphic)(registered trademark) 82 Devonshire Street, Boston, MA 02109 INVESTMENT POLICIES AND LIMITATIONS The following policies and limitations supplement those set forth in the Prospectus. Unless otherwise noted, whenever an investment policy or limitation states a maximum percentage of a fund's assets that may be invested in any security or other asset, or sets forth a policy regarding quality standards, such standard or percentage limitation will be determined immediately after and as a result of the fund's acquisition of such security or other asset. Accordingly, any subsequent change in values, net assets, or other circumstances will not be considered when determining whether the investment complies with the fund's investment policies and limitations. A fund's fundamental investment policies and limitations cannot be changed without approval by a "majority of the outstanding voting securities" (as defined in the Investment Company Act of 1940 (the 1940 Act)) of the fund. However, except for the fundamental investment limitations listed below, the investment policies and limitations described in this SAI are not fundamental and may be changed without shareholder approval. INVESTMENT LIMITATIONS OF EACH STOCK FUND (EXCEPT BUSINESS SERVICES AND OUTSOURCING PORTFOLIO, CYCLICAL INDUSTRIES PORTFOLIO, MEDICAL EQUIPMENT AND SYSTEMS PORTFOLIO, AND NATURAL RESOURCES PORTFOLIO) THE FOLLOWING ARE THE FUNDS' FUNDAMENTAL INVESTMENT LIMITATIONS SET FORTH IN THEIR ENTIRETY. A FUND MAY NOT: (1) issue senior securities, except in connection with the insurance program established by the fund pursuant to an exemptive order issued by the Securities and Exchange Commission or as otherwise permitted under the Investment Company Act of 1940; (2) borrow money, except that a fund may borrow money for temporary or emergency purposes (not for leveraging or investment) in an amount not exceeding 33 1/3% of its total assets (including the amount borrowed) less liabilities (other than borrowings). Any borrowings that come to exceed this amount will be reduced within three days (not including Sundays and holidays) to the extent necessary to comply with the 33 1/3% limitation; (3) underwrite securities issued by others, except to the extent that a fund may be considered an underwriter within the meaning of the Securities Act of 1933 in the disposition of restricted securities; (4) purchase or sell the securities of any issuer, if, as a result of such purchase or sale, less than 25% of the assets of the fund would be invested in the securities of issuers principally engaged in the business activities having the specific characteristics denoted by the fund; (5) purchase or sell real estate unless acquired as a result of ownership of securities or other instruments (but this shall not prevent a fund from investing in securities or other instruments backed by real estate or securities of companies engaged in the real estate business); (6) purchase or sell physical commodities unless acquired as a result of ownership of securities or other instruments (but this shall not prevent a fund from purchasing or selling options and futures contracts or from investing in securities or other instruments backed by physical commodities). This limitation does not apply to Precious Metals and Minerals Portfolio or to Gold Portfolio (see below); or (7) lend any security or make any other loan if, as a result, more than 33 1/3% of its total assets would be lent to other parties, but this limitation does not apply to purchases of debt securities or to repurchase agreements. (8) The fund may, notwithstanding any other fundamental investment policy or limitation, invest all of its assets in the securities of a single open-end management investment company with substantially the same fundamental investment objectives, policies, and limitations as the fund. ADDITIONAL FUNDAMENTAL INVESTMENT LIMITATIONS OF CERTAIN OF THE STOCK FUNDS. GOLD PORTFOLIO 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 the fund's total assets, purchase the securities of any issuer (other than securities issued or guaranteed by the U.S. Government or any of its agencies or instrumentalities, or securities of other investment companies) if, as a result, (a) more than 5% of the fund's total assets would be invested in the securities of that issuer, or (b) the fund would hold more than 10% of the outstanding voting securities of that issuer. THE FOLLOWING ARE NON-FUNDAMENTAL LIMITATIONS FOR EACH STOCK FUND (EXCEPT BUSINESS SERVICES AND OUTSOURCING PORTFOLIO, CYCLICAL INDUSTRIES PORTFOLIO, MEDICAL EQUIPMENT AND SYSTEMS PORTFOLIO, AND NATURAL RESOURCES PORTFOLIO), WHICH MAY BE CHANGED WITHOUT SHAREHOLDER APPROVAL. (i) For each fund (except Home Finance, Financial Services, and Regional Banks), 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 (4), FMR considers an issuer to be principally engaged in a business activity if (i) at least 50% of an issuer's assets, income, sales or profits are committed to, or derived from, the business activity, or (ii) a third party has given the issuer an industry or sector classification consistent with the designated business activity. For each of Brokerage and Investment Management and Financial Services, an issuer that derives more than 15% of revenues or profits from brokerage or investment management activities is considered to be principally engaged in the business activities identified for the fund. For purposes of limitations (1) and (2) for Gold Portfolio and Precious Metals and Minerals Portfolio, FMR currently intends to treat investments in securities whose redemption value is indexed to the price of gold or other precious metals as investments in precious metals. For 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 a 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 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 203. INVESTMENT LIMITATIONS OF BUSINESS SERVICES AND OUTSOURCING PORTFOLIO, CYCLICAL INDUSTRIES PORTFOLIO, MEDICAL EQUIPMENT AND SYSTEMS PORTFOLIO, AND NATURAL RESOURCES PORTFOLIO THE FOLLOWING ARE THE FUNDS' FUNDAMENTAL INVESTMENT LIMITATIONS SET FORTH IN THEIR ENTIRETY. A FUND MAY NOT: (1) issue senior securities, except in connection with the insurance program established by the fund pursuant to an exemptive order issued by the Securities and Exchange Commission or as otherwise permitted under the Investment Company Act of 1940; (2) borrow money, except that the fund may borrow money for temporary or emergency purposes (not for leveraging or investment) in an amount not exceeding 33 1/3% of its total assets (including the amount borrowed) less liabilities (other than borrowings). Any borrowings that come to exceed this amount will be reduced within three days (not including Sundays and holidays) to the extent necessary to comply with the 33 1/3% limitation; (3) underwrite securities issued by others, except to the extent that the fund may be considered an underwriter within the meaning of the Securities Act of 1933 in the disposition of restricted securities; (4) purchase the securities of any issuer if, as a result, less than 25% of the fund's total assets would be invested in the securities of issuers principally engaged in the business activities having the specific characteristics denoted by the fund; (5) purchase or sell real estate unless acquired as a result of ownership of securities or other instruments (but this shall not prevent the fund from investing in securities or other instruments backed by real estate or securities of companies engaged in the real estate business); (6) purchase or sell physical commodities unless acquired as a result of ownership of securities or other instruments (but this shall not prevent the fund from purchasing or selling options and futures contracts or from investing in securities or other instruments backed by physical commodities). This limitation does not apply to Natural Resources Portfolio (see below); or (7) lend any security or make any other loan if, as a result, more than 33 1/3% of its total assets would be lent to other parties, but this limitation does not apply to purchases of debt securities or to repurchase agreements. (8) The fund may, notwithstanding any other fundamental investment policy or limitation, invest all of its assets in the securities of a single open-end management investment company managed by Fidelity Management & Research Company or an affiliate or successor with substantially the same fundamental investment objective, policies, and limitations as the fund. NATURAL RESOURCES PORTFOLIO MAY NOT: (1) purchase or sell physical commodities other than precious metals, provided that the fund may sell physical commodities acquired as a result of ownership of securities or other instruments. This limitation shall not prevent the fund from purchasing or selling options and futures contracts or from investing in securities or other instruments backed by physical commodities. THE FOLLOWING ARE NON-FUNDAMENTAL LIMITS FOR BUSINESS SERVICES AND OUTSOURCING PORTFOLIO, CYCLICAL INDUSTRIES PORTFOLIO, MEDICAL EQUIPMENT AND SYSTEMS PORTFOLIO, AND NATURAL RESOURCES PORTFOLIO, WHICH MAY BE CHANGED WITHOUT SHAREHOLDER APPROVAL. (i) For each fund, in order to qualify as a "regulated investment company" under Subchapter M of the Internal Revenue Code of 1986, as amended, the fund currently intends to comply with certain diversification limits imposed by Subchapter M. (ii) The fund does not currently intend to sell securities short, unless it owns or has the right to obtain securities equivalent in kind and amount to the securities sold short, and provided that transactions in futures contracts and options are not deemed to constitute selling securities short. (iii) The fund does not currently intend to purchase securities on margin, except that the fund may obtain such short-term credits as are necessary for the clearance of transactions, and provided that margin payments in connection with futures contracts and options on futures contracts shall not constitute purchasing securities on margin. (iv) The fund does not currently intend to hedge more than 40% of its total assets with short sales against the box under normal conditions. (v) The fund may borrow money only (a) from a bank or from a registered investment company or portfolio for which FMR or an affiliate serves as investment adviser or (b) by engaging in reverse repurchase agreements with any party (reverse repurchase agreements are treated as borrowings for purposes of fundamental investment limitation (2)). 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 (4), FMR considers an issuer to be principally engaged in a business activity if (i) at least 50% of an issuer's assets, income, sales or profits are committed to, or derived from, the business activity, or (ii) a third party has given the issuer an industry or sector classification consistent with the designated business activity. For purposes of limitation (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 a 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 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 205. INVESTMENT LIMITATIONS OF SELECT MONEY MARKET PORTFOLIO (MONEY MARKET FUND) THE FOLLOWING ARE THE FUND'S FUNDAMENTAL INVESTMENT LIMITATIONS SET FORTH IN THEIR ENTIRETY. THE FUND MAY NOT: (1) with respect to 75% of the fund's total assets, purchase the securities of any issuer (other than securities issued or guaranteed by the U.S. Government or any of its agencies or instrumentalities, or securities of other investment companies) if, as a result, (a) more than 5% of the fund's total assets would be invested in the securities of that issuer, or (b) the fund would hold more than 10% of the outstanding voting securities of that issuer. (2) issue senior securities, except in connection with the insurance program established by the fund pursuant to an exemptive order issued by the Securities and Exchange Commission or as otherwise permitted under the Investment Company Act of 1940; (3) borrow money, except that the fund may (i) borrow money for temporary or emergency purposes (not for leveraging or investment) and (ii) engage in reverse repurchase agreements for any purpose; provided that (i) and (ii) in combination do not exceed 33 1/3% of the fund's total assets (including the amount borrowed) less liabilities (other than borrowings). Any borrowings that come to exceed this amount will be reduced within three days (not including Sundays and holidays) to the extent necessary to comply with the 33 1/3% limitation; (4) underwrite securities issued by others, except to the extent that the fund may be considered an underwriter within the meaning of the Securities Act of 1933 in the disposition of restricted securities; (5) purchase the securities of any issuer (other than securities issued or guaranteed by the U.S. government or any of its agencies or instrumentalities) if, as a result, more than 25% of the fund's total assets would be invested in the securities of companies whose principal business activities are in the same industry, except that the fund will invest more than 25% of its total assets in the financial services industry; (6) purchase or sell real estate unless acquired as a result of ownership of securities or other instruments (but this shall not prevent the fund from investing in securities or other instruments backed by real estate or securities of companies engaged in the real estate business); (7) purchase or sell physical commodities unless acquired as a result of ownership of securities or other instruments; (8) lend any security or make any other loan if, as a result, more than 33 1/3% of its total assets would be lent to other parties, but this limitation does not apply to purchases of debt securities or to repurchase agreements; or (9) invest in companies for the purpose of exercising control or management. (10) In addition the fund may, notwithstanding any other fundamental investment policy or limitation, invest all of its assets in the securities of a single open-end management investment company with substantially the same fundamental investment objectives, policies, and limitations as the fund. THE FOLLOWING ARE THE FUND'S NON-FUNDAMENTAL LIMITATIONS WHICH MAY BE CHANGED WITHOUT SHAREHOLDER APPROVAL. (i) The fund does not currently intend to purchase a security (other than securities issued or guaranteed by the U.S. Government or any of its agencies or instrumentalities, or securities of other money market funds) if, as a result, more than 5% of its total assets would be invested in securities of a single issuer; provided that the fund may invest up to 25% of its total assets in the first tier securities of a single issuer for up to three business days. (ii) The fund does not currently intend to sell securities short, unless it owns or has the right to obtain securities equivalent in kind and amount to the securities sold short, and provided that transactions in futures contracts and options are not deemed to constitute selling securities short. (iii) The fund does not currently intend to purchase securities on margin, except that the fund may obtain such short-term credits as are necessary for the clearance of transactions, and provided that margin payments in connection with futures contracts and options on futures contracts shall not constitute purchasing securities on margin. (iv) The fund may borrow money only (a) from a bank or from a registered investment company or portfolio for which FMR or an affiliate serves as investment adviser or (b) by engaging in reverse repurchase agreements with any party. 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. For purposes of limitations (1) and (i), certain securities subject to guarantees (including insurance, letters of credit and demand features) are not considered securities of their issuer, but are subject to separate diversification requirements, in accordance with industry standard requirements for money market funds. With respect to limitation (v), if through a change in values, net assets, or other circumstances, the fund were in a position where more than 10% of its net assets was invested in illiquid securities, it would consider appropriate steps to protect liquidity. BROKERAGE AND INVESTMENT MANAGEMENT PORTFOLIO. The extent to which the fund may invest in a company that engages in securities-related activities is limited by federal securities laws. FINANCIAL SERVICES PORTFOLIO. The extent to which the fund may invest in a company that engages in securities - related activities is limited by federal securities laws. MULTIMEDIA PORTFOLIO. The extent to which the fund may invest in corporate broadcast licensees is limited by Federal Communications Commission regulations. The following pages contain more detailed information about types of instruments in which a fund may invest, strategies FMR may employ in pursuit of a fund's investment objective, and a summary of related risks. FMR may not buy all of these instruments or use all of these techniques unless it believes that doing so will help a fund achieve its goal. AFFILIATED BANK TRANSACTIONS. A fund may engage in transactions with financial institutions that are, or may be considered to be, "affiliated persons" of the fund under the 1940 Act. These transactions may involve repurchase agreements with custodian banks; short-term obligations of, and repurchase agreements with, the 50 largest U.S. banks (measured by deposits); municipal securities; U.S. Government securities with affiliated financial institutions that are primary dealers in these securities; short-term currency transactions; and short-term borrowings. In accordance with exemptive orders issued by the Securities and Exchange Commission (SEC), the Board of Trustees has established and periodically reviews procedures applicable to transactions involving affiliated financial institutions. ASSET-BACKED SECURITIES represent interests in pools of mortgages, loans, receivables or other assets. Payment of interest and repayment of principal may be largely dependent upon the cash flows generated by the assets backing the securities and, in certain cases, supported by letters of credit, surety bonds, or other credit enhancements. Asset-backed security values may also be affected by other factors including changes in interest rates, the availability of information concerning the pool and its structure, the creditworthiness of the servicing agent for the pool, the originator of the loans or receivables, or the entities providing the credit enhancement. In addition, these securities may be subject to prepayment risk. BORROWING. Each fund may borrow from banks or from other funds advised by FMR or its affiliates, or through reverse repurchase agreements. If a fund borrows money, its share price may be subject to greater fluctuation until the borrowing is paid off. If a fund makes additional investments while borrowings are outstanding, this may be considered a form of leverage. CASH MANAGEMENT. A fund can hold uninvested cash or can invest it in cash equivalents such as money market securities, repurchase agreements or shares of money market funds. Generally, these securities offer less potential for gains than other types of securities. CENTRAL CASH FUNDS are money market funds managed by FMR or its affiliates that seek to earn a high level of current income (free from federal income tax in the case of a municipal money market fund) while maintaining a stable $1.00 share price. The funds comply with industry-standard requirements for money market funds regarding the quality, maturity and diversification of their investments. COMMON STOCK represents an equity or ownership interest in an issuer. In the event an issuer is liquidated or declares bankruptcy, the claims of owners of bonds and preferred stock take precedence over the claims of those who own common stock. COMPANIES "PRINCIPALLY ENGAGED" IN A DESIGNATED BUSINESS ACTIVITY. For purposes of each stock fund's policy of investing at least 80% of its assets in securities of companies principally engaged in the business activities identified for the fund, FMR considers a company to be principally engaged in a designated business activity if: (i) at least 50% of a company's assets, income, sales or profits are committed to, or derived from, the business activity, or (ii) a third party has given the company an industry or sector classification consistent with the designated business activity. For each of Brokerage and Investment Management and Financial Services, an issuer that derives more than 15% of revenues or profits from brokerage or investment management activities is considered to be principally engaged in the business activities identified for the fund. 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. DEBT SECURITIES are used by issuers to borrow money. The issuer usually pays a fixed, variable or floating rate of interest, and must repay the amount borrowed at the maturity of the security. Some debt securities, such as zero coupon bonds, do not pay interest but are sold at a deep discount from their face values. Debt securities include corporate bonds, government securities, and mortgage and other asset-backed securities. DOMESTIC AND FOREIGN INVESTMENTS (MONEY MARKET FUND ONLY) include U.S. dollar-denominated time deposits, certificates of deposit, and bankers' acceptances of U.S. banks and their branches located outside of the United States, U.S. branches and agencies of foreign banks, and foreign branches of foreign banks. Domestic and foreign investments may also include U.S. dollar-denominated securities issued or guaranteed by other U.S. or foreign issuers, including U.S. and foreign corporations or other business organizations, foreign governments, foreign government agencies or instrumentalities, and U.S. and foreign financial institutions, including savings and loan institutions, insurance companies, mortgage bankers, and real estate investment trusts, as well as banks. The obligations of foreign branches of U.S. banks may be general obligations of the parent bank in addition to the issuing branch, or may be limited by the terms of a specific obligation and by governmental regulation. Payment of interest and repayment of principal on these obligations may also be affected by governmental action in the country of domicile of the branch (generally referred to as sovereign risk). In addition, evidence of ownership of portfolio securities may be held outside of the United States and a fund may be subject to the risks associated with the holding of such property overseas. Various provisions of federal law governing the establishment and operation of U.S. branches do not apply to foreign branches of U.S. banks. Obligations of U.S. branches and agencies of foreign banks may be general obligations of the parent bank in addition to the issuing branch, or may be limited by the terms of a specific obligation and by federal and state regulation, as well as by governmental action in the country in which the foreign bank has its head office. Obligations of foreign issuers involve certain additional risks. These risks may include future unfavorable political and economic developments, withholding taxes, seizures of foreign deposits, currency controls, interest limitations, or other governmental restrictions that might affect repayment of principal or payment of interest, or the ability to honor a credit commitment. Additionally, there may be less public information available about foreign entities. Foreign issuers may be subject to less governmental regulation and supervision than U.S. issuers. Foreign issuers also generally are not bound by uniform accounting, auditing, and financial reporting requirements comparable to those applicable to U.S. issuers. EXPOSURE TO FOREIGN MARKETS. Foreign securities, foreign currencies, and securities issued by U.S. entities with substantial foreign operations may involve significant risks in addition to the risks inherent in U.S. investments. Foreign investments involve risks relating to local political, economic, regulatory, or social instability, military action or unrest, or adverse diplomatic developments, and may be affected by actions of foreign governments adverse to the interests of U.S. investors. Such actions may include expropriation or nationalization of assets, confiscatory taxation, restrictions on U.S. investment or on the ability to repatriate assets or convert currency into U.S. dollars, or other government intervention. Additionally, governmental issuers of foreign debt securities may be unwilling to pay interest and repay principal when due and may require that the conditions for payment be renegotiated. There is no assurance that FMR will be able to anticipate these potential events or counter their effects. In addition, the value of securities denominated in foreign currencies and of dividends and interest paid with respect to such securities will fluctuate based on the relative strength of the U.S. dollar. It is anticipated that in most cases the best available market for foreign securities will be on an exchange or in over-the-counter (OTC) markets located outside of the United States. Foreign stock markets, while growing in volume and sophistication, are generally not as developed as those in the United States, and securities of some foreign issuers may be less liquid and more volatile than securities of comparable U.S. issuers. Foreign security trading, settlement and custodial practices (including those involving securities settlement where fund assets may be released prior to receipt of payment) are often less developed than those in U.S. markets, and may result in increased risk or substantial delays in the event of a failed trade or the insolvency of, or breach of duty by, a foreign broker-dealer, securities depository or foreign subcustodian. For example, many foreign countries are less prepared than the United States to properly process and calculate information related to dates from and after January 1, 2000. As a result, some foreign markets, brokers, banks or securities depositories could experience at least temporary disruptions, which could result in difficulty buying and selling securities in certain foreign markets and pricing foreign investments, and foreign issuers could fail to pay timely dividends, interest or principal. In addition, the costs associated with foreign investments, including withholding taxes, brokerage commissions and custodial costs, are generally higher than with U.S. investments. Foreign markets may offer less protection to investors than U.S. markets. Foreign issuers are generally not bound by uniform accounting, auditing, and financial reporting requirements and standards of practice comparable to those applicable to U.S. issuers. Adequate public information on foreign issuers may not be available, and it may be difficult to secure dividends and information regarding corporate actions on a timely basis. In general, there is less overall governmental supervision and regulation of securities exchanges, brokers, and listed companies than in the United States. OTC markets tend to be less regulated than stock exchange markets and, in certain countries, may be totally unregulated. Regulatory enforcement may be influenced by economic or political concerns, and investors may have difficulty enforcing their legal rights in foreign countries. Some foreign securities impose restrictions on transfer within the United States or to U.S. persons. Although securities subject to such transfer restrictions may be marketable abroad, they may be less liquid than foreign securities of the same class that are not subject to such restrictions. American Depositary Receipts (ADRs) as well as other "hybrid" forms of ADRs, including European Depositary Receipts (EDRs) and Global Depositary Receipts (GDRs), are certificates evidencing ownership of shares of a foreign issuer. These certificates are issued by depository banks and generally trade on an established market in the United States or elsewhere. The underlying shares are held in trust by a custodian bank or similar financial institution in the issuer's home country. The depository bank may not have physical custody of the underlying securities at all times and may charge fees for various services, including forwarding dividends and interest and corporate actions. ADRs are alternatives to directly purchasing the underlying foreign securities in their national markets and currencies. However, ADRs continue to be subject to many of the risks associated with investing directly in foreign securities. These risks include foreign exchange risk as well as the political and economic risks of the underlying issuer's country. The risks of foreign investing may be magnified for investments in emerging markets. Security prices in emerging markets can be significantly more volatile than those in more developed markets, reflecting the greater uncertainties of investing in less established markets and economies. In particular, countries with emerging markets may have relatively unstable governments, may present the risks of nationalization of businesses, restrictions on foreign ownership and prohibitions on the repatriation of assets, and may have less protection of property rights than more developed countries. The economies of countries with emerging markets may be based on only a few industries, may be highly vulnerable to changes in local or global trade conditions, and may suffer from extreme and volatile debt burdens or inflation rates. Local securities markets may trade a small number of securities and may be unable to respond effectively to increases in trading volume, potentially making prompt liquidation of holdings difficult or impossible at times. FOREIGN CURRENCY TRANSACTIONS. A stock fund may conduct foreign currency transactions on a spot (i.e., cash) or forward basis (i.e., by entering into forward contracts to purchase or sell foreign currencies). Although foreign exchange dealers generally do not charge a fee for such conversions, they do realize a profit based on the difference between the prices at which they are buying and selling various currencies. Thus, a dealer may offer to sell a foreign currency at one rate, while offering a lesser rate of exchange should the counterparty desire to resell that currency to the dealer. Forward contracts are customized transactions that require a specific amount of a currency to be delivered at a specific exchange rate on a specific date or range of dates in the future. Forward contracts are generally traded in an interbank market directly between currency traders (usually large commercial banks) and their customers. The parties to a forward contract may agree to offset or terminate the contract before its maturity, or may hold the contract to maturity and complete the contemplated currency exchange. The following discussion summarizes the principal currency management strategies involving forward contracts that could be used by a fund. A fund may also use swap agreements, indexed securities, and options and futures contracts relating to foreign currencies for the same purposes. A "settlement hedge" or "transaction hedge" is designed to protect a fund against an adverse change in foreign currency values between the date a security is purchased or sold and the date on which payment is made or received. Entering into a forward contract for the purchase or sale of the amount of foreign currency involved in an underlying security transaction for a fixed amount of U.S. dollars "locks in" the U.S. dollar price of the security. Forward contracts to purchase or sell a foreign currency may also be used by a fund in anticipation of future purchases or sales of securities denominated in foreign currency, even if the specific investments have not yet been selected by FMR. A fund may also use forward contracts to hedge against a decline in the value of existing investments denominated in foreign currency. For example, if a fund owned securities denominated in pounds sterling, it could enter into a forward contract to sell pounds sterling in return for U.S. dollars to hedge against possible declines in the pound's value. Such a hedge, sometimes referred to as a "position hedge," would tend to offset both positive and negative currency fluctuations, but would not offset changes in security values caused by other factors. A fund could also hedge the position by selling another currency expected to perform similarly to the pound sterling. This type of hedge, sometimes referred to as a "proxy hedge," could offer advantages in terms of cost, yield, or efficiency, but generally would not hedge currency exposure as effectively as a direct hedge into U.S. dollars. Proxy hedges may result in losses if the currency used to hedge does not perform similarly to the currency in which the hedged securities are denominated. A fund may enter into forward contracts to shift its investment exposure from one currency into another. This may include shifting exposure from U.S. dollars to a foreign currency, or from one foreign currency to another foreign currency. This type of strategy, sometimes known as a "cross-hedge," will tend to reduce or eliminate exposure to the currency that is sold, and increase exposure to the currency that is purchased, much as if a fund had sold a security denominated in one currency and purchased an equivalent security denominated in another. Cross-hedges protect against losses resulting from a decline in the hedged currency, but will cause a fund to assume the risk of fluctuations in the value of the currency it purchases. Successful use of currency management strategies will depend on FMR's skill in analyzing currency values. Currency management strategies may substantially change a fund's investment exposure to changes in currency exchange rates and could result in losses to a fund if currencies do not perform as FMR anticipates. For example, if a currency's value rose at a time when FMR had hedged a fund by selling that currency in exchange for dollars, a fund would not participate in the currency's appreciation. If FMR hedges currency exposure through proxy hedges, a fund could realize currency losses from both the hedge and the security position if the two currencies do not move in tandem. Similarly, if FMR increases a fund's exposure to a foreign currency and that currency's value declines, a fund will realize a loss. There is no assurance that FMR's use of currency management strategies will be advantageous to a fund or that it will hedge at appropriate times. FUNDS' RIGHTS AS SHAREHOLDERS. The funds do not intend to direct or administer the day-to-day operations of any company. A fund, however, may exercise its rights as a shareholder and may communicate its views on important matters of policy to management, the Board of Directors, and shareholders of a company when FMR determines that such matters could have a significant effect on the value of the fund's investment in the company. The activities in which a fund may engage, either individually or in conjunction with others, may include, among others, supporting or opposing proposed changes in a company's corporate structure or business activities; seeking changes in a company's directors or management; seeking changes in a company's direction or policies; seeking the sale or reorganization of the company or a portion of its assets; or supporting or opposing third-party takeover efforts. This area of corporate activity is increasingly prone to litigation and it is possible that a fund could be involved in lawsuits related to such activities. FMR will monitor such activities with a view to mitigating, to the extent possible, the risk of litigation against a fund and the risk of actual liability if a fund is involved in litigation. No guarantee can be made, however, that litigation against a fund will not be undertaken or liabilities incurred. FUTURES AND OPTIONS. The following paragraphs pertain to futures and options: Combined Positions, Correlation of Price Changes, Futures Contracts, Futures Margin Payments, Limitations on Futures and Options Transactions, Liquidity of Options and Futures Contracts, Options and Futures Relating to Foreign Currencies, OTC Options, Purchasing Put and Call Options, and Writing Put and Call Options. COMBINED POSITIONS involve purchasing and writing options in combination with each other, or in combination with futures or forward contracts, to adjust the risk and return characteristics of the overall position. For example, purchasing a put option and writing a call option on the same underlying instrument would construct a combined position whose risk and return characteristics are similar to selling a futures contract. Another possible combined position would involve writing a call option at one strike price and buying a call option at a lower price, to reduce the risk of the written call option in the event of a substantial price increase. Because combined options positions involve multiple trades, they result in higher transaction costs and may be more difficult to open and close out. CORRELATION OF PRICE CHANGES. Because there are a limited number of types of exchange-traded options and futures contracts, it is likely that the standardized contracts available will not match a fund's current or anticipated investments exactly. A fund may invest in options and futures contracts based on securities with different issuers, maturities, or other characteristics from the securities in which the fund typically invests, which involves a risk that the options or futures position will not track the performance of the fund's other investments. Options and futures prices can also diverge from the prices of their underlying instruments, even if the underlying instruments match a fund's investments well. Options and futures prices are affected by such factors as current and anticipated short-term interest rates, changes in volatility of the underlying instrument, and the time remaining until expiration of the contract, which may not affect security prices the same way. Imperfect correlation may also result from differing levels of demand in the options and futures markets and the securities markets, from structural differences in how options and futures and securities are traded, or from imposition of daily price fluctuation limits or trading halts. A fund may purchase or sell options and futures contracts with a greater or lesser value than the securities it wishes to hedge or intends to purchase in order to attempt to compensate for differences in volatility between the contract and the securities, although this may not be successful in all cases. If price changes in a fund's options or futures positions are poorly correlated with its other investments, the positions may fail to produce anticipated gains or result in losses that are not offset by gains in other investments. FUTURES CONTRACTS. In purchasing a futures contract, the buyer agrees to purchase a specified underlying instrument at a specified future date. In selling a futures contract, the seller agrees to sell a specified underlying instrument at a specified future date. The price at which the purchase and sale will take place is fixed when the buyer and seller enter into the contract. Some currently available futures contracts are based on specific securities, such as U.S. Treasury bonds or notes, and some are based on indices of securities prices, such as the Standard & Poor's 500 Index (S&P 500). Futures can be held until their delivery dates, or can be closed out before then if a liquid secondary market is available. The value of a futures contract tends to increase and decrease in tandem with the value of its underlying instrument. Therefore, purchasing futures contracts will tend to increase a fund's exposure to positive and negative price fluctuations in the underlying instrument, much as if it had purchased the underlying instrument directly. When a fund sells a futures contract, by contrast, the value of its futures position will tend to move in a direction contrary to the market. Selling futures contracts, therefore, will tend to offset both positive and negative market price changes, much as if the underlying instrument had been sold. FUTURES MARGIN PAYMENTS. The purchaser or seller of a futures contract is not required to deliver or pay for the underlying instrument unless the contract is held until the delivery date. However, both the purchaser and seller are required to deposit "initial margin" with a futures broker, known as a futures commission merchant (FCM), when the contract is entered into. Initial margin deposits are typically equal to a percentage of the contract's value. If the value of either party's position declines, that party will be required to make additional "variation margin" payments to settle the change in value on a daily basis. The party that has a gain may be entitled to receive all or a portion of this amount. Initial and variation margin payments do not constitute purchasing securities on margin for purposes of a fund's investment limitations. In the event of the bankruptcy of an FCM that holds margin on behalf of a fund, the fund may be entitled to return of margin owed to it only in proportion to the amount received by the FCM's other customers, potentially resulting in losses to the fund. LIMITATIONS ON FUTURES AND OPTIONS TRANSACTIONS. Each stock fund has filed a notice of eligibility for exclusion from the definition of the term "commodity pool operator" with the Commodity Futures Trading Commission (CFTC) and the National Futures Association, which regulate trading in the futures markets. The funds intend to comply with Rule 4.5 under the Commodity Exchange Act, which limits the extent to which the funds can commit assets to initial margin deposits and option premiums. In addition, each stock fund will not: (a) sell futures contracts, purchase put options, or write call options if, as a result, more than 25% of the fund's total assets would be hedged with futures and options under normal conditions; (b) purchase futures contracts or write put options if, as a result, the fund's total obligations upon settlement or exercise of purchased futures contracts and written put options would exceed 25% of its total assets under normal conditions; or (c) purchase call options if, as a result, the current value of option premiums for call options purchased by the fund would exceed 5% of the fund's total assets. These limitations do not apply to options attached to or acquired or traded together with their underlying securities, and do not apply to securities that incorporate features similar to options. The above limitations on the stock funds' investments in futures contracts and options, and the funds' policies regarding futures contracts and options discussed elsewhere in this SAI, may be changed as regulatory agencies permit. LIQUIDITY OF OPTIONS AND FUTURES CONTRACTS. There is no assurance a liquid secondary market will exist for any particular options or futures contract at any particular time. Options may have relatively low trading volume and liquidity if their strike prices are not close to the underlying instrument's current price. In addition, exchanges may establish daily price fluctuation limits for options and futures contracts, and may halt trading if a contract's price moves upward or downward more than the limit in a given day. On volatile trading days when the price fluctuation limit is reached or a trading halt is imposed, it may be impossible to enter into new positions or close out existing positions. If the secondary market for a contract is not liquid because of price fluctuation limits or otherwise, it could prevent prompt liquidation of unfavorable positions, and potentially could require a fund to continue to hold a position until delivery or expiration regardless of changes in its value. As a result, a fund's access to other assets held to cover its options or futures positions could also be impaired. OPTIONS AND FUTURES RELATING TO FOREIGN CURRENCIES. Currency futures contracts are similar to forward currency exchange contracts, except that they are traded on exchanges (and have margin requirements) and are standardized as to contract size and delivery date. Most currency futures contracts call for payment or delivery in U.S. dollars. The underlying instrument of a currency option may be a foreign currency, which generally is purchased or delivered in exchange for U.S. dollars, or may be a futures contract. The purchaser of a currency call obtains the right to purchase the underlying currency, and the purchaser of a currency put obtains the right to sell the underlying currency. The uses and risks of currency options and futures are similar to options and futures relating to securities or indices, as discussed above. A fund may purchase and sell currency futures and may purchase and write currency options to increase or decrease its exposure to different foreign currencies. Currency options may also be purchased or written in conjunction with each other or with currency futures or forward contracts. Currency futures and options values can be expected to correlate with exchange rates, but may not reflect other factors that affect the value of a fund's investments. A currency hedge, for example, should protect a Yen-denominated security from a decline in the Yen, but will not protect a fund against a price decline resulting from deterioration in the issuer's creditworthiness. Because the value of a fund's foreign-denominated investments changes in response to many factors other than exchange rates, it may not be possible to match the amount of currency options and futures to the value of the fund's investments exactly over time. OTC OPTIONS. Unlike exchange-traded options, which are standardized with respect to the underlying instrument, expiration date, contract size, and strike price, the terms of 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. When writing an option on a futures contract, a fund will be required to make margin payments to an FCM as described above for futures contracts. If security prices rise, a put writer would generally expect to profit, although its gain would be limited to the amount of the premium it received. If security prices remain the same over time, it is likely that the writer will also profit, because it should be able to close out the option at a lower price. If security prices fall, the put writer would expect to suffer a loss. This loss should be less than the loss from purchasing the underlying instrument directly, however, because the premium received for writing the option should mitigate the effects of the decline. Writing a call option obligates the writer to sell or deliver the option's underlying instrument, in return for the strike price, upon exercise of the option. The characteristics of writing call options are similar to those of writing put options, except that writing calls generally is a profitable strategy if prices remain the same or fall. Through receipt of the option premium, a call writer mitigates the effects of a price decline. At the same time, because a call writer must be prepared to deliver the underlying instrument in return for the strike price, even if its current value is greater, a call writer gives up some ability to participate in security price increases. ILLIQUID SECURITIES cannot be sold or disposed of in the ordinary course of business at approximately the prices at which they are valued. Difficulty in selling securities may result in a loss or may be costly to a fund. Under the supervision of the Board of Trustees, FMR determines the liquidity of a fund's investments and, through reports from FMR, the Board monitors investments in illiquid securities. In determining the liquidity of a fund's investments, FMR may consider various factors, including (1) the frequency and volume of trades and quotations, (2) the number of dealers and prospective purchasers in the marketplace, (3) dealer undertakings to make a market and (4) the nature of the security and the market in which it trades (including any demand, put or tender features, the mechanics and other requirements for transfer, any letters of credit or other credit enhancement features, any ratings, the number of holders, the method of soliciting offers, the time required to dispose of the security, and the ability to assign or offset the rights and obligations of the security). INDEXED SECURITIES are instruments whose prices are indexed to the prices of other securities, securities indices, currencies, precious metals or other commodities, or other financial indicators. Indexed securities typically, but not always, are debt securities or deposits whose value at maturity or coupon rate is determined by reference to a specific instrument or statistic. Gold-indexed securities typically provide for a maturity value that depends on the price of gold, resulting in a security whose price tends to rise and fall together with gold prices. Currency-indexed securities typically are short-term to intermediate-term debt securities whose maturity values or interest rates are determined by reference to the values of one or more specified foreign currencies, and may offer higher yields than U.S. dollar-denominated securities. Currency-indexed securities may be positively or negatively indexed; that is, their maturity value may increase when the specified currency value increases, resulting in a security that performs similarly to a foreign-denominated instrument, or their maturity value may decline when foreign currencies increase, resulting in a security whose price characteristics are similar to a put on the underlying currency. Currency-indexed securities may also have prices that depend on the values of a number of different foreign currencies relative to each other. The performance of indexed securities depends to a great extent on the performance of the security, currency, or other instrument to which they are indexed, and may also be influenced by interest rate changes in the United States and abroad. Indexed securities may be more volatile than the underlying instruments. Indexed securities are also subject to the credit risks associated with the issuer of the security, and their values may decline substantially if the issuer's creditworthiness deteriorates. Recent issuers of indexed securities have included banks, corporations, and certain U.S. Government agencies. Gold Portfolio, Natural Resources Portfolio, and Precious Metals and Minerals Portfolio may purchase securities indexed to the price of precious metals as an alternative to direct investment in precious metals. Because the value of these securities is directly linked to the price of gold or other precious metals, they involve risks and pricing characteristics similar to direct investments in precious metals. The funds will purchase precious metals-indexed securities only when FMR is satisfied with the creditworthiness of the issuers liable for payment. The securities generally will earn a nominal rate of interest while held by the funds, and may have maturities of one year or more. In addition, the securities may be subject to being put by a fund to the issuer, with payment to be received on no more than seven days' notice. The put feature would ensure the liquidity of the notes in the absence of an active secondary market. INTERFUND BORROWING AND LENDING PROGRAM. Pursuant to an exemptive order issued by the SEC, a fund may lend money to, and borrow money from, other funds advised by FMR or its affiliates. A fund will lend through the program only when the returns are higher than those available from an investment in repurchase agreements, and will borrow through the program only when the costs are equal to or lower than the cost of bank loans. Interfund loans and borrowings normally extend overnight, but can have a maximum duration of seven days. Loans may be called on one day's notice. A fund may have to borrow from a bank at a higher interest rate if an interfund loan is called or not renewed. Any delay in repayment to a lending fund could result in a lost investment opportunity or additional borrowing costs. INVESTMENT-GRADE DEBT SECURITIES. Investment-grade debt securities are medium and high-quality securities. Some may possess speculative characteristics and may be more sensitive to economic changes and to changes in the financial conditions of issuers. A debt security is considered to be investment-grade if it is rated investment-grade by Moody's Investors Service, Standard & Poor's, Duff & Phelps Credit Rating Co., or Fitch IBCA Inc., or is unrated but considered to be of equivalent quality by FMR. LOANS AND OTHER DIRECT DEBT INSTRUMENTS. Direct debt instruments are interests in amounts owed by a corporate, governmental, or other borrower to lenders or lending syndicates (loans and loan participations), to suppliers of goods or services (trade claims or other receivables), or to other parties. Direct debt instruments involve a risk of loss in case of default or insolvency of the borrower and may offer less legal protection to the purchaser in the event of fraud or misrepresentation, or there may be a requirement that a fund supply additional cash to a borrower on demand. Purchasers of loans and other forms of direct indebtedness depend primarily upon the creditworthiness of the borrower for payment of interest and repayment of principal. If scheduled interest or principal payments are not made, the value of the instrument may be adversely affected. Loans that are fully secured provide more protections than an unsecured loan in the event of failure to make scheduled interest or principal payments. However, there is no assurance that the liquidation of collateral from a secured loan would satisfy the borrower's obligation, or that the collateral could be liquidated. Indebtedness of borrowers whose creditworthiness is poor involves substantially greater risks and may be highly speculative. Borrowers that are in bankruptcy or restructuring may never pay off their indebtedness, or may pay only a small fraction of the amount owed. Direct indebtedness of developing countries also involves a risk that the governmental entities responsible for the repayment of the debt may be unable, or unwilling, to pay interest and repay principal when due. Investments in loans through direct assignment of a financial institution's interests with respect to a loan may involve additional risks. For example, if a loan is foreclosed, the purchaser could become part owner of any collateral, and would bear the costs and liabilities associated with owning and disposing of the collateral. In addition, it is conceivable that under emerging legal theories of lender liability, a purchaser could be held liable as a co-lender. Direct debt instruments may also involve a risk of insolvency of the lending bank or other intermediary. A loan is often administered by a bank or other financial institution that acts as agent for all holders. The agent administers the terms of the loan, as specified in the loan agreement. Unless, under the terms of the loan or other indebtedness, the purchaser has direct recourse against the borrower, the purchaser may have to rely on the agent to apply appropriate credit remedies against a borrower. If assets held by the agent for the benefit of a purchaser were determined to be subject to the claims of the agent's general creditors, the purchaser might incur certain costs and delays in realizing payment on the loan or loan participation and could suffer a loss of principal or interest. Direct indebtedness may include letters of credit, revolving credit facilities, or other standby financing commitments that obligate purchasers to make additional cash payments on demand. These commitments may have the effect of requiring a purchaser to increase its investment in a borrower at a time when it would not otherwise have done so, even if the borrower's condition makes it unlikely that the amount will ever be repaid. Each fund limits the amount of total assets that it will invest in any one issuer or in issuers within the same industry (see each fund's investment limitations). For purposes of these limitations, a fund generally will treat the borrower as the "issuer" of indebtedness held by the fund. In the case of loan participations where a bank or other lending institution serves as financial intermediary between a fund and the borrower, if the participation does not shift to the fund the direct debtor-creditor relationship with the borrower, SEC interpretations require a fund, in appropriate circumstances, to treat both the lending bank or other lending institution and the borrower as "issuers" for these purposes. Treating a financial intermediary as an issuer of indebtedness may restrict a fund's ability to invest in indebtedness related to a single financial intermediary, or a group of intermediaries engaged in the same industry, even if the underlying borrowers represent many different companies and industries. LOWER-QUALITY DEBT SECURITIES. Lower-quality debt securities have poor protection with respect to the payment of interest and repayment of principal, or may be in default. These securities are often considered to be speculative and involve greater risk of loss or price changes due to changes in the issuer's capacity to pay. The market prices of lower-quality debt securities may fluctuate more than those of higher-quality debt securities and may decline significantly in periods of general economic difficulty, which may follow periods of rising interest rates. The market for lower-quality debt securities may be thinner and less active than that for higher-quality debt securities, which can adversely affect the prices at which the former are sold. Adverse publicity and changing investor perceptions may affect the liquidity of lower-quality debt securities and the ability of outside pricing services to value lower-quality debt securities. Because the risk of default is higher for lower-quality debt securities, FMR's research and credit analysis are an especially important part of managing securities of this type. FMR will attempt to identify those issuers of high-yielding securities whose financial condition is adequate to meet future obligations, has improved, or is expected to improve in the future. FMR's analysis focuses on relative values based on such factors as interest or dividend coverage, asset coverage, earnings prospects, and the experience and managerial strength of the issuer. A fund may choose, at its expense or in conjunction with others, to pursue litigation or otherwise to exercise its rights as a security holder to seek to protect the interests of security holders if it determines this to be in the best interest of the fund's shareholders. MONEY MARKET INSURANCE. The money market fund participates in a mutual insurance company solely with other funds advised by FMR or its affiliates. This company provides insurance coverage for losses on certain money market instruments held by a participating fund (eligible instruments), including losses from nonpayment of principal or interest or a bankruptcy or insolvency of the issuer or credit support provider, if any. The insurance does not cover losses resulting from changes in interest rates or other market developments. The money market fund is charged an annual premium for the insurance coverage and may be subject to a special assessment of up to approximately two and one-half times the fund's annual gross premium if covered losses exceed certain levels. A participating fund may recover no more than $100 million annually, including all other claims of insured funds, and may only recover if the amount of the loss exceeds 0.30% of its eligible instruments. The money market fund may incur losses regardless of the insurance. MONEY MARKET SECURITIES are high-quality, short-term obligations. Money market securities may be structured to be, or may employ a trust or other form so that they are, eligible investments for money market funds. For example, put features can be used to modify the maturity of a security or interest rate adjustment features can be used to enhance price stability. If a structure fails to function as intended, adverse tax or investment consequences may result. Neither the Internal Revenue Service (IRS) nor any other regulatory authority has ruled definitively on certain legal issues presented by certain structured securities. Future tax or other regulatory determinations could adversely affect the value, liquidity, or tax treatment of the income received from these securities or the nature and timing of distributions made by the fund. MUNICIPAL SECURITIES are issued to raise money for a variety of public or private purposes, including general financing for state and local governments, or financing for specific projects or public facilities. They may be issued in anticipation of future revenues and may be backed by the full taxing power of a municipality, the revenues from a specific project, or the credit of a private organization. The value of some or all municipal securities may be affected by uncertainties in the municipal market related to legislation or litigation involving the taxation of municipal securities or the rights of municipal securities holders. A municipal security may be owned directly or through a participation interest. PRECIOUS METALS. Precious metals, such as gold, silver, platinum and palladium, at times have been subject to substantial price fluctuations over short periods of time and may be affected by unpredictable monetary and political policies such as currency devaluations or revaluations, economic and social conditions within a country, trade imbalances, or trade or currency restrictions between countries. The prices of gold and other precious metals, however, are less subject to local and company-specific factors than securities of individual companies. As a result, precious metals may be more or less volatile in price than securities of companies engaged in precious metals-related businesses. Investments in precious metals can present concerns such as delivery storage and maintenance, possible illiquidity, and the unavailability of accurate market valuations. Although precious metals can be purchased in any form, including bullion and coins, FMR intends to purchase only those forms of precious metals that are readily marketable and that can be stored in accordance with custody regulations applicable to mutual funds. A fund may incur higher custody and transaction costs for precious metals than for securities. Also, precious metals investments do not pay income. For a fund to qualify as a regulated investment company under current federal tax law, gains from selling precious metals may not exceed 10% of the fund's gross income for its taxable year. This tax requirement could cause a fund to hold or sell precious metals or securities when it would not otherwise do so. PREFERRED STOCK is a class of equity or ownership in an issuer that pays dividends at a specified rate and that has precedence over common stock in the payment of dividends. In the event an issuer is liquidated or declares bankruptcy, the claims of owners of bonds take precedence over the claims of those who own preferred and common stock. PUT FEATURES entitle the holder to sell a security back to the issuer or a third party at any time or at specified intervals. In exchange for this benefit, a fund may accept a lower interest rate. Securities with put features are subject to the risk that the put provider is unable to honor the put feature (purchase the security). Put providers often support their ability to buy securities on demand by obtaining letters of credit or other guarantees from other entities. Demand features, standby commitments, and tender options are types of put features. REAL ESTATE INVESTMENT TRUSTS. Equity real estate investment trusts own real estate properties, while mortgage real estate investment trusts make construction, development, and long-term mortgage loans. Their value may be affected by changes in the value of the underlying property of the trusts, the creditworthiness of the issuer, property taxes, interest rates, and tax and regulatory requirements, such as those relating to the environment. Both types of trusts are dependent upon management skill, are not diversified, and are subject to heavy cash flow dependency, defaults by borrowers, self-liquidation, and the possibility of failing to qualify for tax-free status of income under the Internal Revenue Code and failing to maintain exemption from the 1940 Act. REPURCHASE AGREEMENTS involve an agreement to purchase a security and to sell that security back to the original seller at an agreed-upon price. The resale price reflects the purchase price plus an agreed-upon incremental amount which is unrelated to the coupon rate or maturity of the purchased security. As protection against the risk that the original seller will not fulfill its obligation, the securities are held in a separate account at a bank, marked-to-market daily, and maintained at a value at least equal to the sale price plus the accrued incremental amount. The value of the security purchased may be more or less than the price at which the counterparty has agreed to purchase the security. In addition, delays or losses could result if the other party to the agreement defaults or becomes insolvent. The funds will engage in repurchase agreement transactions with parties whose creditworthiness has been reviewed and found satisfactory by FMR. RESTRICTED SECURITIES are subject to legal restrictions on their sale. Difficulty in selling securities may result in a loss or be costly to a fund. Restricted securities generally can be sold in privately negotiated transactions, pursuant to an exemption from registration under the Securities Act of 1933, or in a registered public offering. Where registration is required, the holder of a registered security may be obligated to pay all or part of the registration expense and a considerable period may elapse between the time it decides to seek registration and the time it may be permitted to sell a security under an effective registration statement. If, during such a period, adverse market conditions were to develop, the holder might obtain a less favorable price than prevailed when it decided to seek registration of the security. REVERSE REPURCHASE AGREEMENTS. In a reverse repurchase agreement, a fund sells a security to another party, such as a bank or broker-dealer, in return for cash and agrees to repurchase that security at an agreed-upon price and time. The funds will enter into reverse repurchase agreements with parties whose creditworthiness has been reviewed and found satisfactory by FMR. Such transactions may increase fluctuations in the market value of fund assets and a fund's yield and may be viewed as a form of leverage. SECURITIES OF OTHER INVESTMENT COMPANIES. including shares of closed-end investment companies, unit investment trusts, and open-end investment companies, represent interests in professionally managed portfolios that may invest in any type of instrument. Investing in other investment companies involves substantially the same risks as investing directly in the underlying instruments, but may involve additional expenses at the investment company-level, such as portfolio management fees and operating expenses. Certain types of investment companies, such as closed-end investment companies, issue a fixed number of shares that trade on a stock exchange or over-the-counter at a premium or a discount to their net asset value. Others are continuously offered at net asset value, but may also be traded in the secondary market. The extent to which a fund can invest in securities of other investment companies is limited by federal securities laws. SECURITIES LENDING. A fund may lend securities to parties such as broker-dealers or other institutions, including Fidelity Brokerage Services, Inc. (FBSI). FBSI is a member of the New York Stock Exchange 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. Because 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" are short sales of securities that a fund owns or has the right to obtain (equivalent in kind or amount to the securities sold short). If a fund enters into a short sale against the box, it will be required to set aside securities equivalent in kind and amount to the securities sold short (or securities convertible or exchangeable into such securities) and will be required to hold such securities while the short sale is outstanding. Short sales against the box could be used to protect the net asset value per share (NAV) of a money market fund in anticipation of increased interest rates, without sacrificing the current yield of the securities sold short. A money market fund will incur transaction costs in connection with opening and closing short sales against the box. A stock fund will incur transaction costs, including interest expenses, in connection with opening, maintaining, and closing short sales against the box. SOURCES OF CREDIT OR LIQUIDITY SUPPORT. Issuers may employ various forms of credit and liquidity enhancements, including letters of credit, guarantees, puts, and demand features, and insurance provided by entities such as banks and other financial institutions. FMR may rely on its evaluation of the credit or liquidity enhancement provider in determining whether to purchase a security supported by such enhancement. In evaluating the credit of a foreign bank or other foreign entities, FMR will consider whether adequate public information about the entity is available and whether the entity may be subject to unfavorable political or economic developments, currency controls, or other government restrictions that might affect its ability to honor its commitment. Changes in the credit quality of the entity providing the enhancement could affect the value of the security or a fund's share price. STRIPPED SECURITIES are the separate income or principal components of a debt security. The risks associated with stripped securities are similar to those of other money market securities, although stripped securities may be more volatile. U.S. Treasury securities that have been stripped by a Federal Reserve Bank are obligations issued by the U.S. Treasury. Privately stripped government securities are created when a dealer deposits a U.S. Treasury security or other U.S. Government security with a custodian for safekeeping. The custodian issues separate receipts for the coupon payments and the principal payment, which the dealer then sells. Because the SEC does not consider privately stripped government securities to be U.S. Government securities for purposes of Rule 2a-7, a fund must evaluate them as it would non-government securities pursuant to regulatory guidelines applicable to money market funds. SWAP AGREEMENTS can be individually negotiated and structured to include exposure to a variety of different types of investments or market factors. Depending on their structure, swap agreements may increase or decrease a fund's exposure to long- or short-term interest rates (in the United States or abroad), foreign currency values, mortgage securities, corporate borrowing rates, or other factors such as security prices or inflation rates. Swap agreements can take many different forms and are known by a variety of names. In a typical cap or floor agreement, one party agrees to make payments only under specified circumstances, usually in return for payment of a fee by the other party. For example, the buyer of an interest rate cap obtains the right to receive payments to the extent that a specified interest rate exceeds an agreed-upon level, while the seller of an interest rate floor is obligated to make payments to the extent that a specified interest rate falls below an agreed-upon level. An interest rate collar combines elements of buying a cap and selling a floor. Swap agreements will tend to shift a fund's investment exposure from one type of investment to another. For example, if the fund agreed to exchange payments in dollars for payments in foreign currency, the swap agreement would tend to decrease the fund's exposure to U.S. interest rates and increase its exposure to foreign currency and interest rates. Caps and floors have an effect similar to buying or writing options. Depending on how they are used, swap agreements may increase or decrease the overall volatility of a fund's investments and its share price 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. TEMPORARY DEFENSIVE POLICIES. When FMR considers it appropriate for defensive purposes, each stock fund (except Business Services and Outsourcing, Cyclical Industries, Medical Equipment and Systems, and Natural Resources) may temporarily invest substantially in investment-grade debt securities. Each of Business Services and Outsourcing, Cyclical Industries, Medical Equipment and Systems and Natural Resources reserves the right to invest without limitation in preferred stocks and investment-grade debt instruments for temporary, defensive purposes. VARIABLE AND FLOATING RATE SECURITIES provide for periodic adjustments in the interest rate paid on the security. Variable rate securities provide for a specified periodic adjustment in the interest rate, while floating rate securities have interest rates that change whenever there is a change in a designated benchmark rate. Some variable or floating rate securities are structured with put features that permit holders to demand payment of the unpaid principal balance plus accrued interest from the issuers or certain financial intermediaries. WARRANTS. Warrants are instruments which entitle the holder to buy an equity security at a specific price for a specific period of time. Changes in the value of a warrant do not necessarily correspond to changes in the value of its underlying security. The price of a warrant may be more volatile than the price of its underlying security, and a warrant may offer greater potential for capital appreciation as well as capital loss. Warrants do not entitle a holder to dividends or voting rights with respect to the underlying security and do not represent any rights in the assets of the issuing company. A warrant ceases to have value if it is not exercised prior to its expiration date. These factors can make warrants more speculative than other types of investments. WHEN-ISSUED AND FORWARD PURCHASE OR SALE TRANSACTIONS involve a commitment to purchase or sell specific securities at a predetermined price or yield in which payment and delivery take place after the customary settlement period for that type of security. Typically, no interest accrues to the purchaser until the security is delivered. When purchasing securities pursuant to one of these transactions, the purchaser assumes the rights and risks of ownership, including the risks of price and yield fluctuations and the risk that the security will not be issued as anticipated. Because payment for the securities is not required until the delivery date, these risks are in addition to the risks associated with a fund's investments. If a fund remains substantially fully invested at a time when a purchase is outstanding, the purchases may result in a form of leverage. When a fund has sold a security pursuant to one of these transactions, the fund does not participate in further gains or losses with respect to the security. If the other party to a delayed-delivery transaction fails to deliver or pay for the securities, a fund could miss a favorable price or yield opportunity or suffer a loss. A fund may renegotiate a when-issued or forward transaction and may sell the underlying securities before delivery, which may result in capital gains or losses for the fund. ZERO COUPON BONDS do not make interest payments; instead, they are sold at a discount from their face value and are redeemed at face value when they mature. Because zero coupon bonds do not pay current income, their prices can be more volatile than other types of fixed-income securities when interest rates change. In calculating a fund's dividend, a portion of the difference between a zero coupon bond's purchase price and its face value is considered income. PORTFOLIO TRANSACTIONS All orders for the purchase or sale of portfolio securities are placed on behalf of each fund by FMR pursuant to authority contained in the management contract. FMR is also responsible for the placement of transaction orders for other investment companies and investment accounts for which it or its affiliates act as investment adviser. In selecting broker-dealers, subject to applicable limitations of the federal securities laws, FMR considers various relevant factors, including, but not limited to: the size and type of the transaction; the nature and character of the markets for the security to be purchased or sold; the execution efficiency, settlement capability, and financial condition of the broker-dealer firm; the broker-dealer's execution services rendered on a continuing basis; the reasonableness of any commissions; and, if applicable, arrangements for payment of fund expenses. If FMR grants investment management authority to a sub-adviser (see the section entitled "Management Contracts"), that sub-adviser is authorized to place orders for the purchase and sale of portfolio securities, and will do so in accordance with the policies described above. Generally, commissions for investments traded on foreign exchanges will be higher than for investments traded on U.S. exchanges and may not be subject to negotiation. Each fund may execute portfolio transactions with broker-dealers who provide research and execution services to the fund or other investment accounts over which FMR or its affiliates exercise investment discretion. Such services may include advice concerning the value of securities; the advisability of investing in, purchasing, or selling securities; and the availability of securities or the purchasers or sellers of securities. In addition, such broker-dealers may furnish analyses and reports concerning issuers, industries, securities, economic factors and trends, portfolio strategy, and performance of investment accounts; and effect securities transactions and perform functions incidental thereto (such as clearance and settlement). The selection of such broker-dealers for transactions in equity securities is generally made by FMR (to the extent possible consistent with execution considerations) in accordance with a ranking of broker-dealers determined periodically by FMR's investment staff based upon the quality of research and execution services provided. For transactions in fixed-income securities, FMR's selection of broker-dealers is generally based on the availability of a security and its price and, to a lesser extent, on the overall quality of execution and other services, including research, provided by the broker-dealer. The receipt of research from broker-dealers that execute transactions on behalf of a fund may be useful to FMR in rendering investment management services to that fund or its other clients, and conversely, such research provided by broker-dealers who have executed transaction orders on behalf of other FMR clients may be useful to FMR in carrying out its obligations to a fund. The receipt of such research has not reduced FMR's normal independent research activities; however, it enables FMR to avoid the additional expenses that could be incurred if FMR tried to develop comparable information through its own efforts. Fixed-income securities are generally purchased from an issuer or underwriter acting as principal for the securities, on a net basis with no brokerage commission paid. However, the dealer is compensated by a difference between the security's original purchase price and the selling price, the so-called "bid-asked spread." Securities may also be purchased from underwriters at prices that include underwriting fees. Subject to applicable limitations of the federal securities laws, a fund may pay a broker-dealer commissions for agency transactions that are in excess of the amount of commissions charged by other broker-dealers in recognition of their research and execution services. In order to cause a fund to pay such higher commissions, FMR must determine in good faith that such commissions are reasonable in relation to the value of the brokerage and research services provided by such executing broker-dealers, viewed in terms of a particular transaction or FMR's overall responsibilities to that fund or its other clients. In reaching this determination, FMR will not attempt to place a specific dollar value on the brokerage and research services provided, or to determine what portion of the compensation should be related to those services. To the extent permitted by applicable law, FMR is authorized to allocate portfolio transactions in a manner that takes into account assistance received in the distribution of shares of the funds or other Fidelity funds and to use the research services of brokerage and other firms that have provided such assistance. FMR may use research services provided by and place agency transactions with National Financial Services Corporation (NFSC) and Fidelity Brokerage Services Japan LLC (FBSJ), indirect subsidiaries of FMR Corp., if the commissions are fair, reasonable, and comparable to commissions charged by non-affiliated, qualified brokerage firms for similar services. Prior to December 9, 1997, FMR used research services provided by and placed agency transactions with Fidelity Brokerage Services (FBS), an indirect subsidiary of FMR Corp. FMR may allocate brokerage transactions to broker-dealers (including affiliates of FMR) who have entered into arrangements with FMR under which the broker-dealer allocates a portion of the commissions paid by a fund toward the reduction of that fund's expenses. The transaction quality must, however, be comparable to those of other qualified broker-dealers. Section 11(a) of the Securities Exchange Act of 1934 prohibits members of national securities exchanges from executing exchange transactions for investment accounts which they or their affiliates manage, unless certain requirements are satisfied. Pursuant to such requirements, the Board of Trustees has authorized NFSC to execute portfolio transactions on national securities exchanges in accordance with approved procedures and applicable SEC rules. The Trustees of each fund periodically review FMR's performance of its responsibilities in connection with the placement of portfolio transactions on behalf of the fund and review the commissions paid by the fund over representative periods of time to determine if they are reasonable in relation to the benefits to the fund. For the fiscal periods ended February 28, 1999 and 1998, the portfolio turnover rates for the stock funds (except Medical Equipment and Systems for 1998) are presented in the table below. Variations in turnover rate may be due to a fluctuating volume of shareholder purchase and redemption orders, market conditions, or changes in FMR's investment outlook. Turnover Rates Fiscal 1999 Fiscal 1998 Air Transportation 260% 294% Automotive 96% 153% Biotechnology 86% 162% Brokerage and Investment 59% 100% Management Business Services and 115% 36%A Outsourcing Chemicals 141% 31% Computers 133% 333% Construction and Housing 226% 404% Consumer Industries 150% 199% Cyclical Industries 103% 140%A Defense and Aerospace 221% 311% Developing Communications 299% 383% Electronics 160% 435% Energy 138% 115% Energy Service 75% 78% Environmental Services 123% 59% Financial Services 60% 84% Food and Agriculture 68% 74% Gold 59% 89% Health Care 66% 79% Home Finance 18% 54% Industrial Equipment 84% 115% Industrial Materials 82% 118% Insurance 72% 157% Leisure 107% 209% Medical Delivery 67% 109% Medical Equipment and Systems 85%A N/A Multimedia 109% 219% Natural Gas 107% 118% Natural Resources 155% 165%A Paper and Forest Products 338% 235% Precious Metals and Minerals 53% 84% Regional Banks 22% 25% Retailing 165% 308% Software and Computer Services 72% 145% Technology 339% 556% Telecommunications 150% 157% Transportation 182% 210% Utilities Growth 113% 78% A Annualized The following tables show the brokerage commissions paid by the funds. Significant changes in brokerage commissions paid by a fund from year to year may result from changing asset levels throughout the year. A fund may pay both commissions and spreads in connection with the placement of portfolio transactions. For the fiscal years ended February 1999, 1998, and 1997, the money market fund paid no brokerage commissions. Of the following tables, the first shows the total amount of brokerage commissions paid by each fund to NFSC and FBS, as applicable, for the past three fiscal years. The second table shows the approximate percentage of aggregate brokerage commissions paid by a fund to NFSC 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 1999. 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 1999. Fiscal Periods Ended February Total To NFSC To FBS 28 Air Transportation 1999 $ 466,528 $ 73,991 $ 0 1998 $ 377,945 $ 70,756 $ 0 1997 $ 588,326 $ 110,395 $ 609 Automotive 1999 $ 166,706 $ 23,803 $ 0 1998 $ 220,182 $ 36,417 $ 0 1997 $ 422,985 $ 66,744 $ 23,371 Biotechnology 1999 $ 443,990 $ 31,302 $ 0 1998 $ 843,401 $ 114,067 $ 15,773 1997 $ 466,616 $ 62,674 $ 1,784 Brokerage and Investment Management 1999 $ 775,691 $ 47,015 $ 0 1998 $ 735,065 $ 86,544 $ 11,262 1997 $ 318,063 $ 61,662 $ 0 Business Services and Outsourcing 1999 $ 100,721 $ 16,127 $ 0 1998* $ 3,710 $ 45 $ 0 Chemicals 1999 $ 152,343 $ 21,237 $ 0 1998 $ 101,154 $ 12,782 $ 17,404 1997 $ 442,545 $ 71,711 $ 31,240 Computers 1999 $ 1,257,001 $ 217,026 $ 0 1998 $ 1,763,117 $ 240,381 $ 0 1997 $ 1,247,598 $ 198,215 $ 0 Construction and Housing 1999 $ 370,610 $ 51,030 $ 0 1998 $ 218,917 $ 46,802 $ 0 1997 $ 348,359 $ 63,646 $ 0 Consumer Industries 1999 $ 117,209 $ 17,657 $ 0 1998 $ 76,547 $ 15,031 $ 0 1997 $ 121,479 $ 29,979 $ 0 Cyclical Industries 1999 $ 5,884 $ 579 $ 0 1998** $ 5,529 $ 470 $ 0 Defense and Aerospace 1999 $ 163,499 $ 29,426 $ 0 1998 $ 321,753 $ 60,895 $ 0 1997 $ 170,650 $ 24,182 $ 0 Developing Communications 1999 $ 757,140 $ 91,601 $ 0 1998 $ 699,196 $ 100,909 $ 3,085 1997 $ 657,790 $ 92,344 $ 24,230 Electronics 1999 $ 3,599,050 $ 363,022 $ 0 1998 $ 8,057,183 $ 1,038,942 $ 0 1997 $ 2,768,382 $ 595,711 $ 0 Energy 1999 $ 423,125 $ 48,921 $ 0 1998 $ 481,212 $ 56,921 $ 0 1997 $ 275,437 $ 53,327 $ 0 Fiscal Periods Ended February Total To NFSC To FBS 28 Energy Service 1999 $ 1,321,362 $ 132,958 $ 0 1998 $ 1,428,931 $ 208,445 $ 0 1997 $ 971,677 $ 263,380 $ 1,026 Environmental Services 1999 $ 72,365 $ 14,545 $ 0 1998 $ 53,033 $ 4,927 $ 0 1997 $ 240,792 $ 42,243 $ 0 Financial Services 1999 $ 506,934 $ 45,514 $ 0 1998 $ 467,674 $ 58,925 $ 0 1997 $ 330,933 $ 77,580 $ 0 Food and Agriculture 1999 $ 357,895 $ 54,460 $ 0 1998 $ 271,283 $ 44,060 $ 0 1997 $ 439,321 $ 97,562 $ 0 Gold 1999 $ 607,659 $ 16,916 $ 0 1998 $ 1,178,299 $ 91,784 $ 0 1997 $ 898,281 $ 82,611 $ 0 Health Care 1999 $ 2,810,021 $ 244,159 $ 0 1998 $ 1,780,678 $ 202,696 $ 39,030 1997 $ 1,330,539 $ 208,545 $ 19,436 Home Finance 1999 $ 858,979 $ 118,062 $ 0 1998 $ 999,285 $ 222,404 $ 11,072 1997 $ 824,781 $ 201,617 $ 0 Industrial Equipment 1999 $ 66,813 $ 8,504 $ 0 1998 $ 186,022 $ 28,906 $ 0 1997 $ 372,936 $ 78,288 $ 1,152 Industrial Materials 1999 $ 25,143 $ 3,612 $ 0 1998 $ 138,995 $ 19,267 $ 0 1997 $ 281,500 $ 37,253 $ 0 Insurance 1999 $ 171,027 $ 17,412 $ 0 1998 $ 249,991 $ 41,261 $ 4,571 1997 $ 51,916 $ 12,029 $ 0 Leisure 1999 $ 364,791 $ 84,286 $ 0 1998 $ 444,121 $ 113,958 $ 0 1997 $ 234,434 $ 56,198 $ 0 Medical Delivery 1999 $ 244,378 $ 23,772 $ 0 1998 $ 294,080 $ 54,751 $ 0 1997 $ 409,668 $ 62,985 $ 0 Medical Equipment and Systems 1999*** $ 14,974 $ 3,290 $ 0 Multimedia 1999 $ 156,430 $ 41,770 $ 0 1998 $ 213,979 $ 40,201 $ 0 1997 $ 181,181 $ 19,584 $ 0 Fiscal Periods Ended February Total To NFSC To FBS 28 Natural Gas 1999 $ 155,015 $ 13,630 $ 0 1998 $ 246,019 $ 38,095 $ 0 1997 $ 591,400 $ 75,903 $ 904 Natural Resources 1999 $ 17,047 $ 2,189 $ 0 1998**** $ 23,485 $ 1,465 $ 0 Paper and Forest Products 1999 $ 140,355 $ 15,977 $ 0 1998 $ 118,872 $ 11,543 $ 0 1997 $ 104,451 $ 22,646 $ 1,146 Precious Metals and Minerals 1999 $ 413,864 $ 11,498 $ 0 1998 $ 736,052 $ 34,762 $ 0 1997 $ 655,032 $ 43,075 $ 0 Regional Banks 1999 $ 615,558 $ 16,496 $ 0 1998 $ 372,550 $ 70,122 $ 0 1997 $ 385,163 $ 86,165 $ 0 Retailing 1999 $ 587,848 $ 155,653 $ 0 1998 $ 721,512 $ 132,299 $ 0 1997 $ 1,026,572 $ 250,241 $ 0 Software and Computer Services 1999 $ 273,818 $ 38,702 $ 0 1998 $ 444,769 $ 71,604 $ 0 1997 $ 559,248 $ 86,634 $ 0 Technology 1999 $ 1,912,128 $ 323,190 $ 0 1998 $ 2,228,245 $ 349,497 $ 0 1997 $ 1,737,289 $ 339,229 $ 574 Telecommunications 1999 $ 1,198,509 $ 123,641 $ 0 1998 $ 1,091,330 $ 81,847 $ 0 1997 $ 1,288,951 $ 103,768 $ 58,688 Transportation 1999 $ 86,899 $ 12,152 $ 0 1998 $ 144,625 $ 18,070 $ 0 1997 $ 23,737 $ 4,001 $ 44 Utilities Growth 1999 $ 789,881 $ 23,956 $ 0 1998 $ 317,455 $ 29,653 $ 1,975 1997 $ 167,248 $ 23,690 $ 2,643 * Business Services and Outsourcing commenced operations on February 4, 1998. ** Cyclical Industries commenced operations on March 3, 1997. *** Medical Equipment and Systems commenced operations on April 28, 1998. **** Natural Resources commenced operations on March 3, 1997.
Fiscal Period Ended February % of Aggregate Commissions % of Aggregate Dollar Amount $ Amount of Commissions Paid 28, 1999 Paid to NFSC(dagger) of Transactions Effected To Firms that Provided through NFSC Research Services* Air TransportationA 15.85% 24.48% $ 442,411 AutomotiveA 14.28% 26.75% $ 149,860 BiotechnologyA 7.05% 26.73% $ 414,009 Brokerage and Investment 6.06% 9.39% $ 700,728 ManagementA Business Services and 16.01% 23.70% $ 89,287 OutsourcingA ChemicalsA 13.94% 21.71% $ 136,297 ComputersA 17.27% 23.05% $ 1,228,387 Construction and HousingA 13.77% 25.24% $ 340,925 Consumer IndustriesA 15.06% 20.49% $ 75,270 Cyclical IndustriesA 9.84% 16.78% $ 4,330 Defense and AerospaceA 18.00% 20.08% $ 144,207 Developing CommunicationsA 12.10% 18.76% $ 728,997 ElectronicsA 10.08% 15.04% $ 3,536,965 EnergyA 11.56% 20.31% $ 393,142 Energy ServiceA 10.06% 13.96% $ 1,224,413 Environmental ServicesA 20.10% 32.97% $ 58,839 Financial ServicesA 8.98% 15.43% $ 473,989 Food and AgricultureA 15.22% 25.36% $ 337,596 GoldA 2.78% 7.34% $ 571,922 Health CareA 8.69% 18.25% $ 2,716,085 Home FinanceA 13.75% 19.25% $ 775,148 Industrial EquipmentA 12.73% 17.61% $ 59,833 Industrial MaterialsA 14.37% 24.61% $ 19,417 InsuranceA 10.18% 16.96% $ 155,633 LeisureA 23.11% 37.50% $ 341,029 Medical DeliveryA 9.72% 17.91% $ 240,728 Medical Equipment and SystemsA 21.97% 29.67% $ 10,723 MultimediaA 26.70% 37.25% $ 139,952 Natural GasA 8.79% 15.43% $ 135,733 Natural ResourcesA 12.85% 25.12% $ 14,008 Paper and Forest ProductsA 11.39% 22.44% $ 110,406 Precious Metals and MineralsA 2.78% 6.45% $ 376,214 Regional BanksA 2.68% 4.80% $ 603,332 RetailingA 26.48% 36.45% $ 526,182 Software and Computer ServicesA 14.13% 21.79% $ 263,467 TechnologyA 16.90% 21.74% $ 1,849,609 TelecommunicationsA 10.32% 15.24% $ 1,100,051 TransportationA 13.98% 16.00% $ 74,517 Utilities GrowthA 3.04% 6.16% $ 674,254
Fiscal Period Ended February $ Amount of Brokerage 28, 1999 Transactions Involved* Air TransportationA $ 368,739,031 AutomotiveA $ 113,886,936 BiotechnologyA $ 360,645,234 Brokerage and Investment $ 742,337,817 ManagementA Business Services and $ 52,022,736 OutsourcingA ChemicalsA $ 108,247,155 ComputersA $ 1,631,682,148 Construction and HousingA $ 264,641,924 Consumer IndustriesA $ 74,099,816 Cyclical IndustriesA $ 2,981,631 Defense and AerospaceA $ 149,178,757 Developing CommunicationsA $ 739,946,207 ElectronicsA $ 3,033,778,555 EnergyA $ 280,314,569 Energy ServiceA $ 814,196,283 Environmental ServicesA $ 29,241,397 Financial ServicesA $ 592,807,308 Food and AgricultureA $ 283,642,508 GoldA $ 177,008,865 Health CareA $ 2,678,193,388 Home FinanceA $ 566,166,569 Industrial EquipmentA $ 45,615,265 Industrial MaterialsA $ 13,276,912 InsuranceA $ 146,056,202 LeisureA $ 333,386,076 Medical DeliveryA $ 123,807,682 Medical Equipment and SystemsA $ 12,833,460 MultimediaA $ 144,555,999 Natural GasA $ 78,898,705 Natural ResourcesA $ 9,544,699 Paper and Forest ProductsA $ 75,447,265 Precious Metals and MineralsA $ 128,927,976 Regional BanksA $ 705,809,048 RetailingA $ 555,755,250 Software and Computer ServicesA $ 290,036,364 TechnologyA $ 1,967,336,754 TelecommunicationsA $ 1,060,209,460 TransportationA $ 60,669,697 Utilities GrowthA $ 550,058,911
* 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 and 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 underwritings where an FMR affiliate participates as a principal underwriter, certain restrictions may apply that could, among other things, limit the amount of securities that the funds could purchase in the underwriting. From time to time the Trustees will review whether the recapture for the benefit of the funds of some portion of the brokerage commissions or similar fees paid by the funds on portfolio transactions is legally permissible and advisable. Each fund seeks to recapture soliciting broker-dealer fees on the tender of portfolio securities, but at present no other recapture arrangements are in effect. The Trustees intend to continue to review whether recapture opportunities are available and are legally permissible and, if so, to determine in the exercise of their business judgment whether it would be advisable for each fund to seek such recapture. Although the Trustees and officers of each fund are substantially the same as those of other funds managed by FMR or its affiliates, investment decisions for each fund are made independently from those of other funds managed by FMR or investment 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 investment accounts. Simultaneous transactions are inevitable when several funds and investment accounts are managed by the same investment adviser, particularly when the same security is suitable for the investment objective of more than one fund or investment account. When two or more funds are simultaneously engaged in the purchase or sale of the same security, the prices and amounts are allocated in accordance with procedures believed to be appropriate and equitable for each fund. In some cases this system could have a detrimental effect on the price or value of the security as far as each fund is concerned. In other cases, however, the ability of the funds to participate in volume transactions will produce better executions and prices for the funds. It is the current opinion of the Trustees that the desirability of retaining FMR as investment adviser to each fund outweighs any disadvantages that may be said to exist from exposure to simultaneous transactions. VALUATION Each fund's NAV is the value of a single share. The NAV of each fund is computed by adding the value of the fund's investments, cash, and other assets, subtracting its liabilities, and dividing the result by the number of shares outstanding. STOCK FUNDS. Portfolio securities are valued by various methods depending on the primary market or exchange on which they trade. Most equity securities for which the primary market is the United States are valued at last sale price or, if no sale has occurred, at the closing bid price. Most equity securities for which the primary market is outside the United States are valued using the official closing price or the last sale price in the principal market in which they are traded. If the last sale price (on the local exchange) is unavailable, the last evaluated quote or closing bid price normally is used. Securities of other open-end investment companies are valued at their respective NAVs. Fixed-income securities and other assets for which market quotations are readily available may be valued at market values determined by such securities' most recent bid prices (sales prices if the principal market is an exchange) in the principal market in which they normally are traded, as furnished by recognized dealers in such securities or assets. Or, fixed-income securities and convertible securities may be valued on the basis of information furnished by a pricing service that uses a valuation matrix which incorporates both dealer-supplied valuations and electronic data processing techniques. Use of pricing services has been approved by the Board of Trustees. A number of pricing services are available, and the funds may use various pricing services or discontinue the use of any pricing service. Futures contracts and options are valued on the basis of market quotations, if available. Independent brokers or quotation services provide prices of foreign securities in their local currency. FSC gathers all exchange rates daily at the close of the NYSE using the last quoted price on the local currency and then translates the value of foreign securities from their local currencies into U.S. dollars. Any changes in the value of forward contracts due to exchange rate fluctuations and days to maturity are included in the calculation of NAV. If an event that is expected to materially affect the value of a portfolio security occurs after the close of an exchange or market on which that security is traded, then that security will be valued in good faith by a committee appointed by the Board of Trustees. Short-term securities with remaining maturities of sixty days or less for which market quotations and information furnished by a pricing service are not readily available are valued either at amortized cost or at original cost plus accrued interest, both of which approximate current value. The procedures set forth above need not be used to determine the value of the securities owned by a fund if, in the opinion of a committee appointed by the Board of Trustees, some other method would more accurately reflect the fair value of such securities. For example, securities and other assets for which there is no readily available market value may be valued in good faith by a committee appointed by the Board of Trustees. In making a good faith determination of the value of a security, the committee may review price movements in futures contracts and American Depositary Receipts (ADRs), market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading. MONEY MARKET FUND. Portfolio securities and other assets are valued on the basis of amortized cost. This technique involves initially valuing an instrument at its cost as adjusted for amortization of premium or accretion of discount rather than its current market value. The amortized cost value of an instrument may be higher or lower than the price the fund would receive if it sold the instrument. Securities of other open-end investment companies are valued at their respective NAVs. At such intervals as they deem appropriate, the Trustees consider the extent to which NAV calculated by using market valuations would deviate from the $1.00 per share calculated using amortized cost valuation. If the Trustees believe that a deviation from the fund's amortized cost per share may result in material dilution or other unfair results to shareholders, the Trustees have agreed to take such corrective action, if any, as they deem appropriate to eliminate or reduce, to the extent reasonably practicable, the dilution or unfair results. Such corrective action could include selling portfolio instruments prior to maturity to realize capital gains or losses or to shorten average portfolio maturity; withholding dividends; redeeming shares in kind; establishing NAV by using available market quotations; and such other measures as the Trustees may deem appropriate. PERFORMANCE A fund may quote performance in various ways. All performance information supplied by the funds in advertising is historical and is not intended to indicate future returns. The share price of a stock fund, the yield of the money market fund, and return fluctuate in response to market conditions and other factors, and the value of a stock fund's shares when redeemed may be more or less than their original cost. YIELD CALCULATIONS (MONEY MARKET FUND). To compute the yield for the fund for a period, the net change in value of a hypothetical account containing one share reflects the value of additional shares purchased with dividends from the one original share and dividends declared on both the original share and any additional shares. The net change is then divided by the value of the account at the beginning of the period to obtain a base period return. This base period return is annualized to obtain a current annualized yield. The fund also may calculate an effective yield by compounding the base period return over a one-year period. In addition to the current yield, the 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 regulation. Yield information may be useful in reviewing the fund's performance and in providing a basis for comparison with other investment alternatives. However, the fund's yield fluctuates, unlike investments that pay a fixed interest rate over a stated period of time. When comparing investment alternatives, investors should also note the quality and maturity of the portfolio securities of respective investment companies they have chosen to consider. Investors should recognize that in periods of declining interest rates the fund's yield will tend to be somewhat higher than prevailing market rates, and in periods of rising interest rates the fund's yield will tend to be somewhat lower. Also, when interest rates are falling, the inflow of net new money to the fund from the continuous sale of its shares will likely be invested in instruments producing lower yields than the balance of the fund's holdings, thereby reducing the fund's current yield. In periods of rising interest rates, the opposite can be expected to occur. Yield information may be useful in reviewing the fund's performance and in providing a basis for comparison with other investment alternatives. However, the fund's yield fluctuates, unlike investments that pay a fixed interest rate over a stated period of time. When comparing investment alternatives, investors should also note the quality and maturity of the portfolio securities of respective investment companies they have chosen to consider. Investors should recognize that in periods of declining interest rates the fund's yield will tend to be somewhat higher than prevailing market rates, and in periods of rising interest rates the fund's yield will tend to be somewhat lower. Also, when interest rates are falling, the inflow of net new money to the fund from the continuous sale of its shares will likely be invested in instruments producing lower yields than the balance of the fund's holdings, thereby reducing the fund's current yield. In periods of rising interest rates, the opposite can be expected to occur. RETURN CALCULATIONS. Returns quoted in advertising reflect all aspects of a fund's return, including the effect of reinvesting dividends and capital gain distributions, and any change in a fund's NAV over a stated period. A cumulative return reflects actual performance over a stated period of time. Average annual returns are calculated by determining the growth or decline in value of a hypothetical historical investment in a fund over a stated period, and then calculating the annually compounded percentage rate that would have produced the same result if the rate of growth or decline in value had been constant over the period. For example, a cumulative return of 100% over ten years would produce an average annual return of 7.18%, which is the steady annual rate of return that would equal 100% growth on a compounded basis in ten years. Average annual returns covering periods of less than one year are calculated by determining a fund's 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 returns are a convenient means of comparing investment alternatives, investors should realize that a fund's performance is not constant over time, but changes from year to year, and that average annual returns represent averaged figures as opposed to the actual year-to-year performance of a fund. In addition to average annual returns, a fund may quote unaveraged or cumulative returns reflecting the simple change in value of an investment over a stated period. Average annual and cumulative returns may be quoted as a percentage or as a dollar amount, and may be calculated for a single investment, a series of investments, or a series of redemptions, over any time period. Returns may be broken down into their components of income and capital (including capital gains and changes in share price) in order to illustrate the relationship of these factors and their contributions to return. Returns may be quoted on a before-tax or after-tax basis and may be quoted with or without taking each fund's 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 return calculation produces a higher return figure. Returns, yields, and other performance information may be quoted numerically or in a table, graph, or similar illustration. NET ASSET VALUE. Charts and graphs using a fund's NAVs, adjusted NAVs, and benchmark indexes may be used to exhibit performance. An adjusted NAV includes any distributions paid by a fund and reflects all elements of its return. Unless otherwise indicated, a fund's adjusted NAVs are not adjusted for sales charges, if any. MOVING AVERAGES. A stock fund may illustrate performance using moving averages. A long-term moving average is the average of each week's adjusted closing NAV for a specified period. A short-term moving average is the average of each day's adjusted closing NAV for a specified period. Moving Average Activity Indicators combine adjusted closing NAVs from the last business day of each week with moving averages for a specified period to produce indicators showing when an NAV has crossed, stayed above, or stayed below its moving average. As of February 26, 1999, the 13-week and 39-week short-term moving averages are shown below.
Fund Name 13-Week Short-Term Moving 39-Week Short-Term Moving Average Average Air Transportation $ 25.92 $ 25.42 Automotive $ 24.14 $ 23.66 Biotechnology $ 39.15 $ 34.11 Brokerage and Investment $ 39.41 $ 38.48 Management Business Services and $ 13.30 $ 11.97 Outsourcing Chemicals $ 31.76 $ 32.88 Computers $ 69.31 $ 54.61 Construction and Housing $ 26.52 $ 25.27 Consumer Industries $ 30.91 $ 28.80 Cyclical Industries $ 11.55 $ 11.41 Defense and Aerospace $ 33.84 $ 33.59 Developing Communications $ 31.03 $ 24.43 Electronics $ 49.40 $ 37.80 Energy $ 17.30 $ 18.58 Energy Service $ 14.31 $ 17.69 Environmental Services $ 13.21 $ 13.81 Financial Services $ 97.52 $ 94.72 Food and Agriculture $ 47.53 $ 45.70 Gold $ 13.45 $ 12.91 Health Care $ 133.76 $ 124.71 Home Finance $ 42.37 $ 45.05 Industrial Equipment $ 25.61 $ 24.66 Industrial Materials $ 20.63 $ 21.08 Insurance $ 41.61 $ 39.91 Leisure $ 75.54 $ 66.62 Medical Delivery $ 21.19 $ 22.85 Medical Equipment and Systems $ 11.88 $ 10.96 Multimedia $ 40.36 $ 35.89 Natural Gas $ 11.07 $ 11.80 Natural Resources $ 8.43 $ 9.02 Paper and Forest Products $ 18.57 $ 18.78 Precious Metals and Minerals $ 9.70 $ 9.15 Regional Banks $ 41.32 $ 40.52 Retailing $ 63.47 $ 57.02 Software and Computer Services $ 54.48 $ 47.36 Technology $ 81.61 $ 63.92 Telecommunications $ 59.92 $ 53.88 Transportation $ 23.57 $ 22.52 Utilities Growth $ 60.10 $ 53.01
CALCULATING HISTORICAL FUND RESULTS. The following table shows performance for each fund. The money market fund's returns include the effect of the fund's 3% sales charge. For each stock fund, returns include the effect of the fund's 3% 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 returns for fiscal periods ended February 28, 1999.
Average Annual Total Returns Cumulative Total Returns Seven-Day Yield One Year Five Years Ten Years/Life of Fund One Year Five Years Air Transportation 0.92% 13.38% 12.79% 0.92% 87.35% Automotive -11.34% 4.80% 12.32% -11.34% 26.41% Biotechnology 23.25% 15.01% 21.19% 23.25% 101.27% Brokerage and Investment 1.55% 21.24% 20.21% 1.55% 162.01% Management Business Services and 22.37% N/A 30.92%* 22.37% N/A Outsourcing Chemicals -26.02% 7.34% 10.80% -26.02% 42.53 Computers 61.37% 33.09% 27.76% 61.37% 317.58% Construction and Housing -5.17% 10.91% 14.36% -5.17% 67.84% Consumer Industries 16.50% 18.63% 18.36%* 16.50% 134.96% Cyclical Industries -7.89% N/A 7.67%* -7.89% N/A Defense and Aerospace -12.68% 17.26% 14.31% -12.68% 121.70% Developing Communications 58.05% 23.24% 24.19%* 58.05% 184.27% Electronics 31.16% 33.54% 29.22% 31.16% 324.64% Energy -24.41% 5.80% 7.30% -24.41% 32.55% Energy Service -52.12% 7.09% 7.43% -52.12% 40.85% Environmental Services -24.64% 1.89% 3.62%* -24.64% 9.82% Financial Services 5.10% 23.97% 21.55% 5.10% 192.77% Food and Agriculture 4.52% 17.39% 17.91% 4.52% 122.96% Gold -18.29% -10.03% -1.56% -18.29% -41.06% Health Care 23.31% 30.02% 25.50% 23.31% 271.61% Home Finance -21.62% 19.79% 21.49% -21.62% 146.66% Industrial Equipment -2.11% 14.34% 15.21% -2.11% 95.46% Industrial Materials -21.23% 2.93% 6.81% -21.23% 15.52% Insurance 6.47% 22.64% 18.78% 6.47% 177.44% Leisure 33.34% 22.26% 18.87% 33.34% 173.15% Medical Delivery -31.66% 8.14% 15.49% -31.66% 47.91% Medical Equipment and Systems N/A N/A N/A N/A N/A Multimedia 32.51% 21.07% 18.08% 32.51% 160.12% Natural Gas -21.66% 2.95% 1.83%* -21.66% 15.62% Natural Resources -26.91% N/A -11.48%* -26.91% N/A Paper and Forest Products -19.57% 5.27% 8.51% -19.57% 29.29% Precious Metals and Minerals -13.64% -11.45% -2.04% -13.64% -45.55% Regional Banks -0.06% 24.36% 22.80% -0.06% 197.48% Retailing 32.49% 22.03% 22.15% 32.49% 170.61% Software and Computer 28.52% 23.66% 24.24% 28.52% 189.20% Services Technology 50.91% 27.34% 25.76% 50.91% 234.89% Telecommunications 18.47% 20.53% 19.05% 18.47% 154.38% Transportation -4.75% 10.98% 14.82% -4.75% 68.38% Utilities Growth 28.13% 21.06% 17.76% 28.13% 160.01% Money Market 4.76% 1.93% 4.40% 4.96% 1.93% 24.03%
Cumulative Total Returns Ten Years/Life of Fund Air Transportation 233.08% Automotive 219.47% Biotechnology 583.45% Brokerage and Investment 529.90% Management Business Services and 33.27%* Outsourcing Chemicals 178.89% Computers 1058.44% Construction and Housing 282.71% Consumer Industries 330.97%* Cyclical Industries 15.87%* Defense and Aerospace 281.02% Developing Communications 553.58%* Electronics 1198.23% Energy 102.37% Energy Service 104.77% Environmental Services 41.11%* Financial Services 603.96% Food and Agriculture 419.46% Gold -14.57% Health Care 869.08% Home Finance 600.51% Industrial Equipment 312.08% Industrial Materials 93.26% Insurance 458.86% Leisure 463.43% Medical Delivery 322.30% Medical Equipment and Systems 17.30%* Multimedia 427.14% Natural Gas 11.19%* Natural Resources -21.56%* Paper and Forest Products 126.36% Precious Metals and Minerals -18.66% Regional Banks 679.81% Retailing 639.25% Software and Computer 776.15% Services Technology 889.23% Telecommunications 471.95% Transportation 298.34% Utilities Growth 412.70% Money Market 62.29%
* 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; March 3, 1997 for Cyclical Industries and Natural Resources; February 4, 1998 for Business Services and Outsourcing; and April 28, 1998 for Medical Equipment and Systems). Note: If FMR had not reimbursed certain fund expenses during these periods, Air Transportation's, Automotive's, Biotechnology's, Brokerage and Investment Management's, Business Services and Outsourcing's, Chemicals', Computer's, Construction and Housing's, Consumer Industries', Cyclical Industries', Defense and Aerospace's, Developing Communications', Electronics', Food and Agriculture's, Home Finance's, Industrial Equipment's, Industrial Materials', Insurance's, Multimedia's, Natural Resources', Paper and Forest Product's, Regional Banks', Retailing's, Software and Computer Services', and Transportation's returns would have been lower. The following tables show the income and capital elements of each fund's cumulative return. The tables compare each fund's return to the record of the Standard & Poor's 500 (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 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 short-term fixed-income securities, common stocks represent a different type of investment from the fund. Common stocks generally offer greater growth potential than the 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 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 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, 1999 or life of fund, as applicable, assuming all distributions were reinvested. Returns are based on past results and are not an indication of future performance. Tax consequences of different investments (with the exception of foreign tax withholdings) have not been factored into the figures below. AIR TRANSPORTATION PORTFOLIO: During the 10-year period ended February 28, 1999, a hypothetical $10,000 investment in Air Transportation Portfolio would have grown to $ 33,315 , including the effect of the fund's 3.00% sales charge.
AIR TRANSPORTATION PORTFOLIO Year Ended Value of Initial $10,000 Value of Reinvested Divided Value of Reinvested Capital Total Value Investment Distributions Gain Distributions 2/28/99 $ 24,979 $ 0 $ 8,336 $ 33,315 2/28/98 24,169 0 7,829 31,998 2/28/97 15,945 0 3,917 19,862 2/29/96 18,995 0 4,388 23,383 2/28/95 12,534 0 2,561 15,095 2/28/94 15,405 0 1,837 17,242 2/28/93 12,237 0 1,240 13,477 2/29/92 12,741 0 899 13,640 2/28/91 10,681 0 521 11,202 2/28/90 9,808 0 479 10,287
AIR TRANSPORTATION PORTFOLIO INDEXES Year Ended S&P 500 DJIA Cost of Living 2/28/99 $ 55,921 $ 54,030 $ 13,528 2/28/98 46,704 48,785 13,314 2/28/97 34,595 38,595 13,125 2/29/96 27,421 30,144 12,738 2/28/95 20,357 21,531 12,410 2/28/94 18,962 20,019 12,064 2/28/93 17,502 17,124 11,768 2/29/92 15,815 16,115 11,398 2/28/91 13,633 13,768 11,086 2/28/90 11,891 12,079 10,526
Explanatory Notes: With an initial investment of $10,000 in Air Transportation Portfolio on March 1, 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 $ 15,127 . 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 $ 4,418 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, 1999, a hypothetical $10,000 investment in Automotive Portfolio would have grown to $ 31,954 , including the effect of the fund's 3.00% sales charge.
AUTOMOTIVE PORTFOLIO INDEXES Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value S&P 500 Investment Distributions Gain Distributions 2/28/99 $ 18,693 $ 1,386 $ 11,875 $ 31,954 $ 55,921 2/28/98 22,082 1,611 11,238 34,931 46,704 2/28/97 20,380 1,390 6,680 28,450 34,595 2/29/96 17,545 1,030 5,015 23,590 27,421 2/28/95 15,931 935 4,554 21,420 20,357 2/28/94 20,460 1,133 2,912 24,505 18,962 2/28/93 16,614 876 1,295 18,785 17,502 2/29/92 13,779 679 782 15,240 15,815 2/28/91 9,909 488 0 10,397 13,633 2/28/90 9,451 329 0 9,780 11,891
AUTOMOTIVE PORTFOLIO INDEXES Year Ended DJIA Cost of Living 2/28/99 $ 54,030 $ 13,528 2/28/98 48,785 13,314 2/28/97 38,595 13,125 2/29/96 30,144 12,738 2/28/95 21,531 12,410 2/28/94 20,019 12,064 2/28/93 17,124 11,768 2/29/92 16,115 11,398 2/28/91 13,768 11,086 2/28/90 12,079 10,526
Explanatory Notes: With an initial investment of $10,000 in Automotive Portfolio on March 1, 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 $ 22,309 . 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 $ 819 for dividends and $ 8,496 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, 1999, a hypothetical $10,000 investment in Biotechnology Portfolio would have grown to $ 68,352 , including the effect of the fund's 3.00% sales charge.
BIOTECHNOLOGY PORTFOLIO INDEXES Year Ended Value of Initial $10,000 Value of Reinvested Divided Value of Reinvested Capital Total Value S&P 500 Investment Distributions Gain Distributions 2/28/99 $ 37,416 $ 178 $ 30,758 $ 68,352 $ 55,921 2/28/98 31,235 149 22,380 53,764 46,704 2/28/97 30,982 148 15,175 46,305 34,595 2/29/96 33,118 119 10,509 43,746 27,421 2/28/95 22,893 18 7,264 30,175 20,357 2/28/94 24,983 20 7,927 32,930 18,962 2/28/93 20,450 16 6,489 26,955 17,502 2/29/92 29,815 24 4,354 34,193 15,815 2/28/91 22,965 0 1,203 24,168 13,633 2/28/90 13,102 0 218 13,320 11,891
BIOTECHNOLOGY PORTFOLIO INDEXES Year Ended DJIA Cost of Living 2/28/99 $ 54,030 $ 13,528 2/28/98 48,785 13,314 2/28/97 38,595 13,125 2/29/96 30,144 12,738 2/28/95 21,531 12,410 2/28/94 20,019 12,064 2/28/93 17,124 11,768 2/29/92 16,115 11,398 2/28/91 13,768 11,086 2/28/90 12,079 10,526
Explanatory Notes: With an initial investment of $10,000 in Biotechnology Portfolio on March 1, 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 $ 32,291 . 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 $ 109 for dividends and $ 16,450 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, 1999, a hypothetical $10,000 investment in Brokerage and Investment Management Portfolio would have grown to $ 62,997 , including the effect of the fund's 3.00% sales charge.
BROKERAGE AND INVESTMENT INDEXES MANAGEMENT PORTFOLIO Year Ended Value of Initial $10,000 Value of Reinvested Divided Value of Reinvested Capital Total Value S&P 500 DJIA Investment Distributions Gain Distributions 2/28/99 $ 48,103 $ 2,074 $ 12,820 $ 62,997 $ 55,921 $ 54,030 2/28/98 46,490 1,991 11,653 60,134 46,704 48,785 2/28/97 30,105 1,188 6,872 38,165 34,595 38,595 2/29/96 21,609 775 4,070 26,454 27,421 30,144 2/28/95 18,126 603 1,645 20,374 20,357 21,531 2/28/94 20,744 690 1,882 23,316 18,962 20,019 2/28/93 16,619 541 0 17,160 17,502 17,124 2/29/92 14,947 488 0 15,435 15,815 16,115 2/28/91 9,700 306 0 10,006 13,633 13,768 2/28/90 9,723 182 0 9,905 11,891 12,079
BROKERAGE AND INVESTMENT INDEXES MANAGEMENT PORTFOLIO Year Ended Cost of Living 2/28/99 $ 13,528 2/28/98 13,314 2/28/97 13,125 2/29/96 12,738 2/28/95 12,410 2/28/94 12,064 2/28/93 11,768 2/29/92 11,398 2/28/91 11,086 2/28/90 10,526
Explanatory Notes: With an initial investment of $10,000 in Brokerage and Investment Management Portfolio on March 1, 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 $ 16,945 . 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 $ 5,481 for dividends and $ 549 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. BUSINESS SERVICES AND OUTSOURCING PORTFOLIO: During the period from February 4, 1998 (commencement of operations) to February 28, 1999, a hypothetical $10,000 investment in Business Services and Outsourcing Portfolio would have grown to $ 13,335 , including the effect of the fund's 3.00% sales charge.
BUSINESS SERVICES AND INDEXES OUTSOURCING PORTFOLIO Year Ended Value of Initial $10,000 Value of Reinvested Divided Value of Reinvested Capital Total Value S&P 500 Investment Distributions Gain Distributions 2/28/99 $ 13,163 $ 0 $ 172 $ 13,335 $ 12,495 2/28/98* 10,563 0 0 10,563 10,435
BUSINESS SERVICES AND INDEXES OUTSOURCING PORTFOLIO Year Ended DJIA Cost of Living** 2/28/99 $ 11,655 $ 10,161 2/28/98* 10,524 10,019
* From February 4, 1998 (commencement of operations). ** From month-end closest to initial investment date. Explanatory Notes: With an initial investment of $10,000 in Business Services and Outsourcing Portfolio on February 4, 1998, assuming the 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 $ 10,155 . 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 $ 155 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, 1999, a hypothetical $10,000 investment in Chemicals Portfolio would have grown to $ 27,896 , including the effect of the fund's 3.00% sales charge.
CHEMICALS PORTFOLIO INDEXES Year Ended Value of Initial $10,000 Value of Reinvested Divided Value of Reinvested Capital Total Value S&P 500 Investment Distributions Gain Distributions 2/28/99 $ 13,196 $ 826 $ 13,874 $ 27,896 $ 55,921 2/28/98 19,476 1,160 15,905 36,541 46,704 2/28/97 18,046 1,067 11,474 30,587 34,595 2/29/96 16,773 914 8,895 26,582 27,421 2/28/95 14,389 736 5,728 20,853 20,357 2/28/94 13,434 555 4,986 18,975 18,962 2/28/93 12,144 375 2,829 15,348 17,502 2/29/92 13,532 246 1,385 15,163 15,815 2/28/91 10,964 123 811 11,898 13,633 2/28/90 9,577 64 458 10,099 11,891
CHEMICALS PORTFOLIO INDEXES Year Ended DJIA Cost of Living 2/28/99 $ 54,030 $ 13,528 2/28/98 48,785 13,314 2/28/97 38,595 13,125 2/29/96 30,144 12,738 2/28/95 21,531 12,410 2/28/94 20,019 12,064 2/28/93 17,124 11,768 2/29/92 16,115 11,398 2/28/91 13,768 11,086 2/28/90 12,079 10,526
Explanatory Notes: With an initial investment of $10,000 in Chemicals Portfolio on March 1, 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 $ 26,056 . 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 $ 620 for dividends and $ 10,243 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, 1999, a hypothetical $10,000 investment in Computers Portfolio would have grown to $ 115,851 , including the effect of the fund's 3.00% sales charge.
COMPUTERS PORTFOLIO INDEXES Year Ended Value of Initial $10,000 Value of Reinvested Divided Value of Reinvested Capital Total Value S&P 500 Investment Distributions Gain Distributions 2/28/99 $ 60,565 $ 1,556 $ 53,730 $ 115,851 $ 55,921 2/28/98 36,391 935 32,283 69,609 46,704 2/28/97 42,742 1,098 14,010 57,850 34,595 2/29/96 36,346 934 9,385 46,665 27,421 2/28/95 27,169 698 2,674 30,541 20,357 2/28/94 23,936 614 2,356 26,906 18,962 2/28/93 17,850 458 241 18,549 17,502 2/29/92 17,522 450 236 18,208 15,815 2/28/91 14,572 133 0 14,705 13,633 2/28/90 10,772 0 0 10,772 11,891
COMPUTERS PORTFOLIO INDEXES Year Ended DJIA Cost of Living 2/28/99 $ 54,030 $ 13,528 2/28/98 48,785 13,314 2/28/97 38,595 13,125 2/29/96 30,144 12,738 2/28/95 21,531 12,410 2/28/94 20,019 12,064 2/28/93 17,124 11,768 2/29/92 16,115 11,398 2/28/91 13,768 11,086 2/28/90 12,079 10,526
Explanatory Notes: With an initial investment of $10,000 in Computers Portfolio on March 1, 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 $ 37,815 . 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 $ 345 for dividends and $ 20,808 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, 1999, a hypothetical $10,000 investment in Construction and Housing Portfolio would have grown to $ 38,278 , including the effect of the fund's 3.00% sales charge.
CONSTRUCTION AND HOUSING PORTFOLIO Year Ended Value of Initial $10,000 Value of Reinvested Divided Value of Reinvested Capital Total Value Investment Distributions Gain Distributions 2/28/99 $ 19,877 $ 609 $ 17,792 $ 38,278 2/28/98 20,361 626 18,138 39,125 2/28/97 17,477 507 9,955 27,939 2/29/96 15,539 427 7,583 23,549 2/28/95 13,338 297 5,703 19,338 2/28/94 15,746 350 6,016 22,112 2/28/93 12,504 279 4,567 17,350 2/29/92 10,852 242 3,952 15,046 2/28/91 8,977 200 2,361 11,538 2/28/90 9,033 56 1,230 10,319
CONSTRUCTION AND HOUSING INDEXES PORTFOLIO Year Ended S&P 500 DJIA Cost of Living 2/28/99 $ 55,921 $ 54,030 $ 13,528 2/28/98 46,704 48,785 13,314 2/28/97 34,595 38,595 13,125 2/29/96 27,421 30,144 12,738 2/28/95 20,357 21,531 12,410 2/28/94 18,962 20,019 12,064 2/28/93 17,502 17,124 11,768 2/29/92 15,815 16,115 11,398 2/28/91 13,633 13,768 11,086 2/28/90 11,891 12,079 10,526
Explanatory Notes: With an initial investment of $10,000 in Construction and Housing Portfolio on March 1, 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 $ 22,001 . 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 $ 278 for dividends and $ 8,175 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, 1999, a hypothetical $10,000 investment in Consumer Industries Portfolio would have grown to $ 43,104 , including the effect of the fund's 3.00% sales charge.
CONSUMER INDUSTRIES PORTFOLIO Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value Investment Distributions Gain Distributions 2/28/99 $ 30,856 $ 232 $ 12,016 $ 43,104 2/28/98 26,491 200 9,175 35,866 2/28/97 20,040 152 5,361 25,553 2/29/96 17,305 130 4,630 22,065 2/28/95 13,493 82 3,397 16,972 2/28/94 14,783 90 2,916 17,789 2/28/93 12,581 77 1,193 13,851 2/29/92 13,512 83 241 13,836 2/28/91* 10,505 65 0 10,570
CONSUMER INDUSTRIES PORTFOLIO INDEXES Year Ended S&P 500 DJIA Cost of Living** 2/28/99 $ 43,109 $ 40,297 $ 12,664 2/28/98 36,003 36,385 12,463 2/28/97 26,669 28,785 12,286 2/29/96 21,138 22,483 11,925 2/28/95 15,693 16,058 11,617 2/28/94 14,618 14,931 11,293 2/28/93 13,492 12,772 11,016 2/29/92 12,191 12,019 10,670 2/28/91* 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 $ 16,802 . 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 $ 5,645 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, 1999, a hypothetical $10,000 investment in Cyclical Industries Portfolio would have grown to $ 11,594 , including the effect of the fund's 3.00% sales charge.
CYCLICAL INDUSTRIES PORTFOLIO Year Ended Value of Initial $10,000 Value of Reinvested Divided Value of Reinvested Capital Total Value Investment Distributions Gain Distributions 2/28/99 $ 11,048 $ 0 $ 546 $ 11,594 2/28/98* 11,708 0 492 12,200
CYCLICAL INDUSTRIES PORTFOLIO INDEXES Year Ended S&P 500 DJIA Cost of Living** 2/28/99 $ 16,071 $ 13,914 $ 10,307 2/28/98* 13,422 12,563 10,144
* From March 3, 1997 (commencement of operations). ** From month-end closest to initial investment date. Explanatory Notes: With an initial investment of $10,000 in Cyclical Industries Portfolio on March 3, 1997, assuming the 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 $ 10,537 . If distributions had not been reinvested, the amount of distributions earned from the fund over time would have been smaller, and cash payments for the period would have amounted to $ 0 for dividends and $ 534 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. DEFENSE AND AEROSPACE PORTFOLIO: During the 10-year period ended February 28, 1999, a hypothetical $10,000 investment in Defense and Aerospace Portfolio would have grown to $ 38,109 , including the effect of the fund's 3.00% sales charge.
DEFENSE AND AEROSPACE PORTFOLIO Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value Investment Distributions Gain Distributions 2/28/99 $ 27,944 $ 551 $ 9,614 $ 38,109 2/28/98 31,015 612 10,670 42,297 2/28/97 23,891 471 5,283 29,645 2/29/96 22,265 438 2,881 25,584 2/28/95 16,213 320 824 17,357 2/28/94 15,801 311 556 16,668 2/28/93 12,449 175 0 12,624 2/29/92 12,325 173 0 12,498 2/28/91 10,691 104 0 10,795 2/28/90 9,650 0 0 9,650
DEFENSE AND AEROSPACE PORTFOLIO INDEXES Year Ended S&P 500 DJIA Cost of Living 2/28/99 $ 55,921 $ 54,030 $ 13,528 2/28/98 46,704 48,785 13,314 2/28/97 34,595 38,595 13,125 2/29/96 27,421 30,144 12,738 2/28/95 20,357 21,531 12,410 2/28/94 18,962 20,019 12,064 2/28/93 17,502 17,124 11,768 2/29/92 15,815 16,115 11,398 2/28/91 13,633 13,768 11,086 2/28/90 11,891 12,079 10,526
Explanatory Notes: With an initial investment of $10,000 in Defense and Aerospace Portfolio on March 1, 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 $ 17,845 . 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 $ 231 for dividends and $ 6,538 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, 1999, a hypothetical $10,000 investment in Developing Communications Portfolio would have grown to $ 65,365 , including the effect of the fund's 3.00% sales charge.
DEVELOPING COMMUNICATIONS PORTFOLIO Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value Investment Distributions Gain Distributions 2/28/99 $ 31,738 $ 0 $ 33,627 $ 65,365 2/28/98 19,536 0 20,563 40,099 2/28/97 19,090 0 12,194 31,284 2/29/96 18,837 0 12,034 30,871 2/28/95 19,788 0 5,549 25,337 2/28/94 19,061 0 3,238 22,299 2/28/93 15,947 0 1,174 17,121 2/29/92 13,997 0 1,002 14,999 2/28/91* 10,777 0 0 10,777
DEVELOPING COMMUNICATIONS INDEXES PORTFOLIO Year Ended S&P 500 DJIA Cost of Living** 2/28/99 $ 43,109 $ 40,297 $ 12,664 2/28/98 36,003 36,385 12,463 2/28/97 26,669 28,785 12,286 2/29/96 21,138 22,483 11,925 2/28/95 15,693 16,058 11,617 2/28/94 14,618 14,931 11,293 2/28/93 13,492 12,772 11,016 2/29/92 12,191 12,019 10,670 2/28/91* 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 $ 27,901 . If distributions had not been reinvested, the amount of distributions earned from the fund over time would have been smaller, and cash payments for the period would have amounted to $ 0 for dividends and $ 12,979 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, 1999, a hypothetical $10,000 investment in Electronics Portfolio would have grown to $ 129,831 , including the effect of the fund's 3.00% sales charge.
ELECTRONICS PORTFOLIO INDEXES Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value S&P 500 Investment Distributions Gain Distributions 2/28/99 $ 67,134 $ 83 $ 62,614 $ 129,831 $ 55,921 2/28/98 49,620 62 46,279 95,961 46,704 2/28/97 53,818 67 23,412 77,297 34,595 2/29/96 39,963 49 17,385 57,397 27,421 2/28/95 28,079 34 5,113 33,226 20,357 2/28/94 25,058 31 4,563 29,652 18,962 2/28/93 20,251 25 0 20,276 17,502 2/29/92 18,535 23 0 18,558 15,815 2/28/91 14,394 18 0 14,412 13,633 2/28/90 12,267 0 0 12,267 11,891
ELECTRONICS PORTFOLIO INDEXES Year Ended DJIA Cost of Living 2/28/99 $ 54,030 $ 13,528 2/28/98 48,785 13,314 2/28/97 38,595 13,125 2/29/96 30,144 12,738 2/28/95 21,531 12,410 2/28/94 20,019 12,064 2/28/93 17,124 11,768 2/29/92 16,115 11,398 2/28/91 13,768 11,086 2/28/90 12,079 10,526
Explanatory Notes: With an initial investment of $10,000 in Electronics Portfolio on March 1, 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 $ 44,921 . 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 $ 14 for dividends and $ 25,810 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, 1999, a hypothetical $10,000 investment in Energy Portfolio would have grown to $ 20,244 , including the effect of the fund's 3.00% sales charge.
ENERGY PORTFOLIO INDEXES Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value S&P 500 Investment Distributions Gain Distributions 2/28/99 $ 11,954 $ 968 $ 7,322 $ 20,244 $ 55,921 2/28/98 15,614 1,254 9,087 25,955 46,704 2/28/97 15,695 1,163 4,699 21,557 34,595 2/29/96 13,972 922 3,019 17,913 27,421 2/28/95 11,858 692 2,263 14,813 20,357 2/28/94 12,322 614 1,871 14,807 18,962 2/28/93 11,667 555 1,277 13,499 17,502 2/29/92 10,437 271 1,142 11,850 15,815 2/28/91 11,394 155 1,230 12,779 13,633 2/28/90 12,676 51 164 12,891 11,891
ENERGY PORTFOLIO INDEXES Year Ended DJIA Cost of Living 2/28/99 $ 54,030 $ 13,528 2/28/98 48,785 13,314 2/28/97 38,595 13,125 2/29/96 30,144 12,738 2/28/95 21,531 12,410 2/28/94 20,019 12,064 2/28/93 17,124 11,768 2/29/92 16,115 11,398 2/28/91 13,768 11,086 2/28/90 12,079 10,526
Explanatory Notes: With an initial investment of $10,000 in Energy Portfolio on March 1, 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 $ 19,584 . 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 $ 832 for dividends and $ 6,570 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, 1999, a hypothetical $10,000 investment in Energy Service Portfolio would have grown to $ 20,484 , including the effect of the fund's 3.00% sales charge.
ENERGY SERVICE PORTFOLIO Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value Investment Distributions Gain Distributions 2/28/99 $ 15,734 $ 178 $ 4,572 $ 20,484 2/28/98 33,680 382 7,378 41,440 2/28/97 24,593 278 3,048 27,919 2/29/96 19,340 208 1,561 21,109 2/28/95 14,388 113 669 15,170 2/28/94 14,015 84 0 14,099 2/28/93 13,234 22 0 13,256 2/29/92 11,275 19 0 11,294 2/28/91 16,227 27 0 16,254 2/28/90 14,760 0 0 14,760
ENERGY SERVICE PORTFOLIO INDEXES Year Ended S&P 500 DJIA Cost of Living 2/28/99 $ 55,921 $ 54,030 $ 13,528 2/28/98 46,704 48,785 13,314 2/28/97 34,595 38,595 13,125 2/29/96 27,421 30,144 12,738 2/28/95 20,357 21,531 12,410 2/28/94 18,962 20,019 12,064 2/28/93 17,502 17,124 11,768 2/29/92 15,815 16,115 11,398 2/28/91 13,633 13,768 11,086 2/28/90 11,891 12,079 10,526
Explanatory Notes: With an initial investment of $10,000 in Energy Service Portfolio on March 1, 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 $ 17,503 . 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 $ 168 for dividends and $ 6,371 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, 1999, a hypothetical $10,000 investment in Environmental Services Portfolio would have grown to $ 14,118 , including the effect of the fund's 3.00% sales charge.
ENVIRONMENTAL SERVICES INDEXES PORTFOLIO Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value S&P 500 Investment Distributions Gain Distributions 2/28/99 $ 12,387 $ 11 $ 1,720 $ 14,118 $ 49,952 2/28/98 15,966 14 2,174 18,154 41,719 2/28/97 14,065 12 1,915 15,992 30,902 2/29/96 12,047 11 1,619 13,677 24,494 2/28/95 9,962 9 757 10,728 18,184 2/28/94 11,572 10 880 12,462 16,938 2/28/93 11,019 10 838 11,867 15,634 2/29/92 12,649 11 486 13,146 14,127 2/28/91 12,600 11 0 12,611 12,178 2/28/90* 10,554 9 0 10,563 10,622
ENVIRONMENTAL SERVICES INDEXES PORTFOLIO Year Ended DJIA Cost of Living** 2/28/99 $ 49,028 $ 13,255 2/28/98 44,268 13,046 2/28/97 35,022 12,861 2/29/96 27,353 12,482 2/28/95 19,537 12,160 2/28/94 18,166 11,821 2/28/93 15,539 11,531 2/29/92 14,623 11,168 2/28/91 12,493 10,862 2/28/90* 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 $ 11,545 . 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 $ 1,465 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, 1999, a hypothetical $10,000 investment in Financial Services Portfolio would have grown to $ 70,403 , including the effect of the fund's 3.00% sales charge.
FINANCIAL SERVICES PORTFOLIO Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value Investment Distributions Gain Distributions 2/28/99 $ 34,877 $ 4,098 $ 31,428 $ 70,403 2/28/98 35,728 4,075 25,131 64,934 2/28/97 28,692 2,924 14,409 46,025 2/29/96 22,728 2,010 9,220 33,958 2/28/95 16,684 1,329 6,408 24,421 2/28/94 17,726 1,080 4,514 23,320 2/28/93 18,435 1,037 1,565 21,037 2/29/92 14,457 642 88 15,187 2/28/91 9,769 327 60 10,156 2/28/90 10,302 104 63 10,469
FINANCIAL SERVICES PORTFOLIO INDEXES Year Ended S&P 500 DJIA Cost of Living 2/28/99 $ 55,921 $ 54,030 $ 13,528 2/28/98 46,704 48,785 13,314 2/28/97 34,595 38,595 13,125 2/29/96 27,421 30,144 12,738 2/28/95 20,357 21,531 12,410 2/28/94 18,962 20,019 12,064 2/28/93 17,502 17,124 11,768 2/29/92 15,815 16,115 11,398 2/28/91 13,633 13,768 11,086 2/28/90 11,891 12,079 10,526
Explanatory Notes: With an initial investment of $10,000 in Financial Services Portfolio on March 1, 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 $ 33,827 . 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 $ 1,498 for dividends and $ 14,464 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, 1999, a hypothetical $10,000 investment in Food and Agriculture Portfolio would have grown to $ 51,954 , including the effect of the fund's 3.00% sales charge.
FOOD AND AGRICULTURE PORTFOLIO Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value Investment Distributions Gain Distributions 2/28/99 $ 23,929 $ 1,661 $ 26,364 $ 51,954 2/28/98 24,893 1,557 21,731 48,181 2/28/97 22,710 1,081 15,196 38,987 2/29/96 21,496 817 12,009 34,322 2/28/95 16,590 499 7,796 24,885 2/28/94 16,060 420 6,115 22,595 2/28/93 15,738 357 4,135 20,230 2/29/92 15,417 286 3,030 18,733 2/28/91 13,760 194 1,822 15,776 2/28/90 11,210 19 1,082 12,311
FOOD AND AGRICULTURE PORTFOLIO INDEXES Year Ended S&P 500 DJIA Cost of Living 2/28/99 $ 55,921 $ 54,030 $ 13,528 2/28/98 46,704 48,785 13,314 2/28/97 34,595 38,595 13,125 2/29/96 27,421 30,144 12,738 2/28/95 20,357 21,531 12,410 2/28/94 18,962 20,019 12,064 2/28/93 17,502 17,124 11,768 2/29/92 15,815 16,115 11,398 2/28/91 13,633 13,768 11,086 2/28/90 11,891 12,079 10,526
Explanatory Notes: With an initial investment of $10,000 in Food and Agriculture Portfolio on March 1, 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 $ 31,946 . 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 $ 841 for dividends and $ 13,280 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. GOLD PORTFOLIO: During the 10-year period ended February 28, 1999, a hypothetical $10,000 investment in Gold Portfolio would have grown to $ 8,551 , including the effect of the fund's 3.00% sales charge.
GOLD PORTFOLIO INDEXES Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value S&P 500 Investment Distributions Gain Distributions 2/28/99 $ 7,932 $ 0 $ 619 $ 8,551 $ 55,921 2/28/98 9,409 0 733 10,142 46,704 2/28/97 17,496 0 343 17,839 34,595 2/29/96 16,814 0 0 16,814 27,421 2/28/95 11,437 0 0 11,437 20,357 2/28/94 14,054 0 0 14,054 18,962 2/28/93 8,776 0 0 8,776 17,502 2/29/92 8,373 0 0 8,373 15,815 2/28/91 8,441 0 0 8,441 13,633 2/28/90 11,015 0 0 11,015 11,891
GOLD PORTFOLIO INDEXES Year Ended DJIA Cost of Living 2/28/99 $ 54,030 $ 13,528 2/28/98 48,785 13,314 2/28/97 38,595 13,125 2/29/96 30,144 12,738 2/28/95 21,531 12,410 2/28/94 20,019 12,064 2/28/93 17,124 11,768 2/29/92 16,115 11,398 2/28/91 13,768 11,086 2/28/90 12,079 10,526
Explanatory Notes: With an initial investment of $10,000 in Gold Portfolio on March 1, 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 $ 11,126 . 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 $ 1,110 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, 1999, a hypothetical $10,000 investment in Health Care Portfolio would have grown to $ 96,916, including the effect of the fund's 3.00% sales charge.
HEALTH CARE PORTFOLIO INDEXES Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value S&P 500 Investment Distributions Gain Distributions 2/28/99 $ 37,241 $ 2,341 $ 57,334 $ 96,916 $ 55,921 2/28/98 30,810 1,818 43,566 76,194 46,704 2/28/97 27,728 1,484 26,620 55,832 34,595 2/29/96 27,192 1,131 18,044 46,367 27,421 2/28/95 20,604 649 11,941 33,194 20,357 2/28/94 17,135 307 7,850 25,292 18,962 2/28/93 14,228 232 6,518 20,978 17,502 2/29/92 21,516 275 6,010 27,801 15,815 2/28/91 17,700 124 2,374 20,198 13,633 2/28/90 12,011 36 230 12,277 11,891
HEALTH CARE PORTFOLIO INDEXES Year Ended DJIA Cost of Living 2/28/99 $ 54,030 $ 13,528 2/28/98 48,785 13,314 2/28/97 38,595 13,125 2/29/96 30,144 12,738 2/28/95 21,531 12,410 2/28/94 20,019 12,064 2/28/93 17,124 11,768 2/29/92 16,115 11,398 2/28/91 13,768 11,086 2/28/90 12,079 10,526
Explanatory Notes: With an initial investment of $10,000 in Health Care Portfolio on March 1, 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 $ 47,157 . 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 $ 866 for dividends and $ 20,932 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, 1999, a hypothetical $10,000 investment in Home Finance Portfolio would have grown to $ 70,058 , including the effect of the fund's 3.00% sales charge.
HOME FINANCE PORTFOLIO INDEXES Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value S&P 500 Investment Distributions Gain Distributions 2/28/99 $ 39,638 $ 3,060 $ 27,360 $ 70,058 $ 55,921 2/28/98 50,252 3,772 32,595 86,619 46,704 2/28/97 43,320 2,811 19,295 65,426 34,595 2/29/96 31,360 1,648 11,349 44,357 27,421 2/28/95 22,527 998 7,442 30,967 20,357 2/28/94 23,572 880 3,091 27,543 18,962 2/28/93 20,888 770 1,369 23,027 17,502 2/29/92 14,428 523 713 15,664 15,815 2/28/91 9,436 219 466 10,121 13,633 2/28/90 8,645 37 427 9,109 11,891
HOME FINANCE PORTFOLIO INDEXES Year Ended DJIA Cost of Living 2/28/99 $ 54,030 $ 13,528 2/28/98 48,785 13,314 2/28/97 38,595 13,125 2/29/96 30,144 12,738 2/28/95 21,531 12,410 2/28/94 20,019 12,064 2/28/93 17,124 11,768 2/29/92 16,115 11,398 2/28/91 13,768 11,086 2/28/90 12,079 10,526
Explanatory Notes: With an initial investment of $10,000 in Home Finance Portfolio on March 1, 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 $ 32,738 . 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 $ 1,253 for dividends and $ 14,955 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, 1999, a hypothetical $10,000 investment in Industrial Equipment Portfolio would have grown to $ 41,215 including the effect of the fund's 3.00% sales charge.
INDUSTRIAL EQUIPMENT PORTFOLIO Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value Investment Distributions Gain Distributions 2/28/99 $ 24,088 $ 545 $ 16,582 $ 41,215 2/28/98 24,737 560 15,511 40,808 2/28/97 24,355 523 7,573 32,451 2/29/96 23,973 468 3,002 27,443 2/28/95 19,133 329 590 20,052 2/28/94 19,677 339 430 20,446 2/28/93 14,359 238 0 14,597 2/29/92 13,662 226 0 13,888 2/28/91 11,285 76 0 11,361 2/28/90 11,275 0 0 11,275
INDUSTRIAL EQUIPMENT PORTFOLIO INDEXES Year Ended S&P 500 DJIA Cost of Living 2/28/99 $ 55,921 $ 54,030 $ 13,528 2/28/98 46,704 48,785 13,314 2/28/97 34,595 38,595 13,125 2/29/96 27,421 30,144 12,738 2/28/95 20,357 21,531 12,410 2/28/94 18,962 20,019 12,064 2/28/93 17,502 17,124 11,768 2/29/92 15,815 16,115 11,398 2/28/91 13,633 13,768 11,086 2/28/90 11,891 12,079 10,526
Explanatory Notes: With an initial investment of $10,000 in Industrial Equipment Portfolio on March 1, 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 $ 25,754 . 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 $ 306 for dividends and $ 12,068 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, 1999, a hypothetical $10,000 investment in Industrial Materials Portfolio would have grown to $ 19,333 , including the effect of the fund's 3.00% sales charge.
INDUSTRIAL MATERIALS PORTFOLIO Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value Investment Distributions Gain Distributions 2/28/99 $ 14,644 $ 846 $ 3,843 $ 19,333 2/28/98 18,016 1,042 4,728 23,786 2/28/97 19,933 1,124 1,257 22,314 2/29/96 18,787 1,014 0 19,801 2/28/95 16,669 796 0 17,465 2/28/94 15,617 607 0 16,224 2/28/93 12,568 446 0 13,014 2/29/92 11,934 364 0 12,298 2/28/91 8,965 233 0 9,198 2/28/90 9,383 0 0 9,383
INDUSTRIAL MATERIALS PORTFOLIO INDEXES Year Ended S&P 500 DJIA Cost of Living 2/28/99 $ 55,921 $ 54,030 $ 13,528 2/28/98 46,704 48,785 13,314 2/28/97 34,595 38,595 13,125 2/29/96 27,421 30,144 12,738 2/28/95 20,357 21,531 12,410 2/28/94 18,962 20,019 12,064 2/28/93 17,502 17,124 11,768 2/29/92 15,815 16,115 11,398 2/28/91 13,633 13,768 11,086 2/28/90 11,891 12,079 10,526
Explanatory Notes: With an initial investment of $10,000 in Industrial Materials Portfolio on March 1, 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 $ 15,285 . 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 $ 692 for dividends and $ 4,014 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, 1999, a hypothetical $10,000 investment in Insurance Portfolio would have grown to $ 55,893 , including the effect of the fund's 3.00% sales charge.
INSURANCE PORTFOLIO INDEXES Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value S&P 500 Investment Distributions Gain Distributions 2/28/99 $ 34,149 $ 1,142 $ 20,602 $ 55,893 $ 55,921 2/28/98 34,116 1,142 15,630 50,888 46,704 2/28/97 26,434 885 8,315 35,634 34,595 2/29/96 21,693 695 5,391 27,779 27,421 2/28/95 17,269 488 3,692 21,449 20,357 2/28/94 15,729 446 3,362 19,537 18,962 2/28/93 17,488 485 1,810 19,783 17,502 2/29/92 15,210 394 0 15,604 15,815 2/28/91 12,787 128 0 12,915 13,633 2/28/90 11,499 115 0 11,614 11,891
INSURANCE PORTFOLIO INDEXES Year Ended DJIA Cost of Living 2/28/99 $ 54,030 $ 13,528 2/28/98 48,785 13,314 2/28/97 38,595 13,125 2/29/96 30,144 12,738 2/28/95 21,531 12,410 2/28/94 20,019 12,064 2/28/93 17,124 11,768 2/29/92 16,115 11,398 2/28/91 13,768 11,086 2/28/90 12,079 10,526
Explanatory Notes: With an initial investment of $10,000 in Insurance Portfolio on March 1, 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 $ 24,828 . 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 $ 446 for dividends and $ 10,826 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, 1999, a hypothetical $10,000 investment in Leisure Portfolio would have grown to $ 56,350 , including the effect of the fund's 3.00% sales charge.
LEISURE PORTFOLIO INDEXES Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value S&P 500 Investment Distributions Gain Distributions 2/28/99 $ 30,655 $ 408 $ 25,287 $ 56,350 $ 55,921 2/28/98 23,450 313 17,208 40,971 46,704 2/28/97 18,004 240 9,572 27,816 34,595 2/29/96 17,379 232 7,645 25,256 27,421 2/28/95 15,324 204 4,263 19,791 20,357 2/28/94 17,051 228 2,727 20,006 18,962 2/28/93 13,464 179 944 14,587 17,502 2/29/92 12,026 161 843 13,030 15,815 2/28/91 9,719 130 681 10,530 13,633 2/28/90 9,677 24 678 10,379 11,891
LEISURE PORTFOLIO INDEXES Year Ended DJIA Cost of Living 2/28/99 $ 54,030 $ 13,528 2/28/98 48,785 13,314 2/28/97 38,595 13,125 2/29/96 30,144 12,738 2/28/95 21,531 12,410 2/28/94 20,019 12,064 2/28/93 17,124 11,768 2/29/92 16,115 11,398 2/28/91 13,768 11,086 2/28/90 12,079 10,526
Explanatory Notes: With an initial investment of $10,000 in Leisure Portfolio on March 1, 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 $ 24,331 . 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 $ 113 for dividends and $10,265 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, 1999, a hypothetical $10,000 investment in Medical Delivery Portfolio would have grown to $ 42,237 , including the effect of the fund's 3.00% sales charge.
MEDICAL DELIVERY PORTFOLIO Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value Investment Distributions Gain Distributions 2/28/99 $ 21,176 $ 182 $ 20,879 $ 42,237 2/28/98 31,431 271 28,181 59,883 2/28/97 31,397 272 17,426 49,095 2/29/96 32,185 279 11,966 44,430 2/28/95 25,726 222 7,171 33,119 2/28/94 22,508 98 5,079 27,685 2/28/93 16,048 71 3,621 19,740 2/29/92 24,305 108 2,974 27,387 2/28/91 18,679 81 974 19,734 2/28/90 11,731 52 253 12,036
MEDICAL DELIVERY PORTFOLIO INDEXES Year Ended S&P 500 DJIA Cost of Living 2/28/99 $ 55,921 $ 54,030 $ 13,528 2/28/98 46,704 48,785 13,314 2/28/97 34,595 38,595 13,125 2/29/96 27,421 30,144 12,738 2/28/95 20,357 21,531 12,410 2/28/94 18,962 20,019 12,064 2/28/93 17,502 17,124 11,768 2/29/92 15,815 16,115 11,398 2/28/91 13,633 13,768 11,086 2/28/90 11,891 12,079 10,526
Explanatory Notes: With an initial investment of $10,000 in Medical Delivery Portfolio on March 1, 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 $ 36,042 . 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 $ 133 for dividends and $ 18,035 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 EQUIPMENT AND SYSTEMS PORTFOLIO: During the period from April 28, 1998 (commencement of operations) to February 28, 1999, a hypothetical $10,000 investment in Medical Equipment and Systems Portfolio would have grown to $ 11,737, including the effect of the fund's 3.00% sales charge.
MEDICAL EQUIPMENT AND SYSTEMS PORTFOLIO Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value Investment Distributions Gain Distributions 2/28/99* $ 11,737 $ 0 $ 0 $ 11,737
MEDICAL EQUIPMENT AND SYSTEMS INDEXES PORTFOLIO Year Ended S&P 500 DJIA Cost of Living** 2/28/99* $ 11,554 $ 10,609 $ 10,123
* From April 28, 1998 (commencement of operations). ** From month-end closest to initial investment date. Explanatory Notes: With an initial investment of $10,000 in Medical Equipment and Systems Portfolio on April 28, 1998, assuming the 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 $ 10,000 . 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 $ 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. MONEY MARKET PORTFOLIO: During the 10-year period ended February 28, 1999, a hypothetical $10,000 investment in Money Market Portfolio would have grown to $ 16,229 , including the effect of the fund's 3.00% sales charge.
MONEY MARKET PORTFOLIO INDEXES Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value S&P 500 Investment Distributions Gain Distributions 2/28/99 $ 9,700 $ 6,529 $ 0 $ 16,229 $ 55,921 2/28/98 9,700 5,745 0 15,445 46,704 2/28/97 9,700 4,973 0 14,673 34,595 2/29/96 9,700 4,272 0 13,972 27,421 2/28/95 9,700 3,536 0 13,236 20,357 2/28/94 9,700 2,992 0 12,692 18,962 2/28/93 9,700 2,668 0 12,368 17,502 2/29/92 9,700 2,275 0 11,975 15,815 2/28/91 9,700 1,671 0 11,371 13,633 2/28/90 9,700 851 0 10,551 11,891
MONEY MARKET PORTFOLIO INDEXES Year Ended DJIA Cost of Living 2/28/99 $ 54,030 $ 13,528 2/28/98 48,785 13,314 2/28/97 38,595 13,125 2/29/96 30,144 12,738 2/28/95 21,531 12,410 2/28/94 20,019 12,064 2/28/93 17,124 11,768 2/29/92 16,115 11,398 2/28/91 13,768 11,086 2/28/90 12,079 10,526
Explanatory Notes: With an initial investment of $10,000 in Money Market Portfolio on March 1, 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 $ 16,529 . 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 $ 5,004 for dividends. The fund did not distribute any capital gains during the period. MULTIMEDIA PORTFOLIO: During the 10-year period ended February 28, 1999, a hypothetical $10,000 investment in Multimedia Portfolio would have grown to $ 52,721 , including the effect of the fund's 3.00% sales charge.
MULTIMEDIA PORTFOLIO INDEXES Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value S&P 500 Investment Distributions Gain Distributions 2/28/99 $ 28,852 $ 32 $ 23,837 $ 52,721 $ 55,921 2/28/98 22,464 25 16,084 38,573 46,704 2/28/97 16,664 18 10,401 27,083 34,595 2/29/96 18,182 20 10,163 28,365 27,421 2/28/95 14,951 0 6,542 21,493 20,357 2/28/94 15,968 0 3,687 19,655 18,962 2/28/93 12,215 0 2,359 14,574 17,502 2/29/92 10,770 0 1,913 12,683 15,815 2/28/91 8,161 0 1,450 9,611 13,633 2/28/90 8,262 0 1,467 9,729 11,891
MULTIMEDIA PORTFOLIO INDEXES Year Ended DJIA Cost of Living 2/28/99 $ 54,030 $ 13,528 2/28/98 48,785 13,314 2/28/97 38,595 13,125 2/29/96 30,144 12,738 2/28/95 21,531 12,410 2/28/94 20,019 12,064 2/28/93 17,124 11,768 2/29/92 16,115 11,398 2/28/91 13,768 11,086 2/28/90 12,079 10,526
Explanatory Notes: With an initial investment of $10,000 in Multimedia Portfolio on March 1, 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 $ 22,598 . 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 $ 9,118 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, 1999, a hypothetical $10,000 investment in Natural Gas Portfolio would have grown to $ 11,126 , including the effect of the fund's 3.00% sales charge.
NATURAL GAS PORTFOLIO INDEXES Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value S&P 500 Investment Distributions Gain Distributions 2/28/99 $ 10,272 $ 183 $ 671 $ 11,126 $ 31,830 2/28/98 12,823 103 838 13,764 26,583 2/28/97 12,125 97 436 12,658 19,691 2/29/96 11,019 78 159 11,256 15,608 2/28/95 8,711 20 125 8,856 11,587 2/28/94* 9,196 0 132 9,328 10,793
NATURAL GAS PORTFOLIO INDEXES Year Ended DJIA Cost of Living** 2/28/99 $ 30,794 $ 11,424 2/28/98 27,804 11,243 2/28/97 21,997 11,083 2/29/96 17,180 10,757 2/28/95 12,271 10,479 2/28/94* 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 $ 10,932 . 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 $ 175 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, 1999, a hypothetical $10,000 investment in Natural Gas Portfolio would have grown to $ 7,851 , including the effect of the fund's 3.00% sales charge.
NATURAL RESOURCES PORTFOLIO Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value Investment Distributions Gain Distributions 2/28/99 $ 7,653 $ 0 $ 198 $ 7,851 2/28/98* 10,146 0 262 10,408
NATURAL RESOURCES PORTFOLIO INDEXES Year Ended S&P 500 DJIA Cost of Living** 2/28/99 $ 16,071 $ 13,914 $ 10,307 2/28/98* 13,422 12,563 10,144
* From March 3, 1997 (commencement of operations). ** From month-end closest to initial investment date. Explanatory Notes: With an initial investment of $10,000 in Natural Resources Portfolio on March 3, 1997, assuming the 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, 1999, a hypothetical $10,000 investment in Paper and Forest Products Portfolio would have grown to $ 22,643 , including the effect of the fund's 3.00% sales charge.
PAPER AND FOREST PRODUCTS PORTFOLIO Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value Investment Distributions Gain Distributions 2/28/99 $ 15,052 $ 1,120 $ 6,471 $ 22,643 2/28/98 18,486 1,377 7,421 27,284 2/28/97 17,646 1,266 4,704 23,616 2/29/96 16,953 1,110 3,237 21,300 2/28/95 17,246 1,056 1,207 19,509 2/28/94 15,998 980 0 16,978 2/28/93 13,118 795 0 13,913 2/29/92 12,262 665 0 12,927 2/28/91 9,635 284 0 9,919 2/28/90 9,333 116 0 9,449
PAPER AND FOREST PRODUCTS INDEXES PORTFOLIO Year Ended S&P 500 DJIA Cost of Living 2/28/99 $ 55,921 $ 54,030 $ 13,528 2/28/98 46,704 48,785 13,314 2/28/97 34,595 38,595 13,125 2/29/96 27,421 30,144 12,738 2/28/95 20,357 21,531 12,410 2/28/94 18,962 20,019 12,064 2/28/93 17,502 17,124 11,768 2/29/92 15,815 16,115 11,398 2/28/91 13,633 13,768 11,086 2/28/90 11,891 12,079 10,526
Explanatory Notes: With an initial investment of $10,000 in Paper and Forest Products Portfolio on March 1, 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 $ 18,100 . 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 $ 767 for dividends and $ 5,874 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, 1999, a hypothetical $10,000 investment in Precious Metals and Minerals Portfolio would have grown to $ 8,142 , including the effect of the fund's 3.00% sales charge.
PRECIOUS METALS AND MINERALS PORTFOLIO Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value Investment Distributions Gain Distributions 2/28/99 $ 7,473 $ 669 $ 0 $ 8,142 2/28/98 8,387 750 0 9,137 2/28/97 15,990 1,431 0 17,421 2/29/96 17,099 1,486 0 18,585 2/28/95 12,457 1,035 0 13,492 2/28/94 13,559 927 0 14,486 2/28/93 8,044 448 0 8,492 2/29/92 8,933 319 0 9,252 2/28/91 8,909 235 0 9,144 2/28/90 11,625 143 0 11,768
PRECIOUS METALS AND MINERALS INDEXES PORTFOLIO Year Ended S&P 500 DJIA Cost of Living 2/28/99 $ 55,921 $ 54,030 $ 13,528 2/28/98 46,704 48,785 13,314 2/28/97 34,595 38,595 13,125 2/29/96 27,421 30,144 12,738 2/28/95 20,357 21,531 12,410 2/28/94 18,962 20,019 12,064 2/28/93 17,502 17,124 11,768 2/29/92 15,815 16,115 11,398 2/28/91 13,633 13,768 11,086 2/28/90 11,891 12,079 10,526
Explanatory Notes: With an initial investment of $10,000 in Precious Metals and Minerals Portfolio on March 1, 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 $ 10,977 . 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 $ 938 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, 1999, a hypothetical $10,000 investment in Regional Banks Portfolio would have grown to $ 77,988 , including the effect of the fund's 3.00% sales charge.
REGIONAL BANKS PORTFOLIO Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value Investment Distributions Gain Distributions 2/28/99 $ 39,532 $ 5,603 $ 32,853 $ 77,988 2/28/98 41,063 5,314 29,263 75,640 2/28/97 31,211 3,643 20,502 55,356 2/29/96 23,175 2,307 13,140 38,622 2/28/95 17,127 1,411 8,865 27,403 2/28/94 17,108 1,002 7,313 25,423 2/28/93 19,856 961 3,063 23,880 2/29/92 15,016 621 1,553 17,190 2/28/91 9,614 274 556 10,444 2/28/90 10,099 99 584 10,782
REGIONAL BANKS PORTFOLIO INDEXES Year Ended S&P 500 DJIA Cost of Living 2/28/99 $ 55,921 $ 54,030 $ 13,528 2/28/98 46,704 48,785 13,314 2/28/97 34,595 38,595 13,125 2/29/96 27,421 30,144 12,738 2/28/95 20,357 21,531 12,410 2/28/94 18,962 20,019 12,064 2/28/93 17,502 17,124 11,768 2/29/92 15,815 16,115 11,398 2/28/91 13,633 13,768 11,086 2/28/90 11,891 12,079 10,526
Explanatory Notes: With an initial investment of $10,000 in Regional Banks Portfolio on March 1, 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 $ 31,028 . 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 $ 1,911 for dividends and $ 12,296 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, 1999, a hypothetical $10,000 investment in Retailing Portfolio would have grown to $ 73,932 , including the effect of the fund's 3.00% sales charge.
RETAILING PORTFOLIO INDEXES Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value S&P 500 Investment Distributions Gain Distributions 2/28/99 $ 49,640 $ 604 $ 23,688 $ 73,932 $ 55,921 2/28/98 36,800 447 16,852 54,099 46,704 2/28/97 24,452 298 10,700 35,450 34,595 2/29/96 20,496 249 8,897 29,642 27,421 2/28/95 17,584 213 7,633 25,430 20,357 2/28/94 18,319 223 7,952 26,494 18,962 2/28/93 17,554 214 5,149 22,917 17,502 2/29/92 17,311 211 3,914 21,436 15,815 2/28/91 11,443 139 2,234 13,816 13,633 2/28/90 9,612 117 1,849 11,578 11,891
RETAILING PORTFOLIO INDEXES Year Ended DJIA Cost of Living 2/28/99 $ 54,030 $ 13,528 2/28/98 48,785 13,314 2/28/97 38,595 13,125 2/29/96 30,144 12,738 2/28/95 21,531 12,410 2/28/94 20,019 12,064 2/28/93 17,124 11,768 2/29/92 16,115 11,398 2/28/91 13,768 11,086 2/28/90 12,079 10,526
Explanatory Notes: With an initial investment of $10,000 in Retailing Portfolio on March 1, 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 $ 17,555 . If distributions had not been reinvested, the amount of distributions earned from the fund over time would have been smaller, and cash payments for the period would have amounted to $ 118 for dividends and $ 6,016 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, 1999, a hypothetical $10,000 investment in Software and Computer Services would have grown to $ 87,623 , including the effect of the fund's 3.00% sales charge.
SOFTWARE AND COMPUTER INDEXES SERVICES PORTFOLIO Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value S&P 500 Investment Distributions Gain Distributions 2/28/99 $ 37,620 $ 0 $ 50,003 $ 87,623 $ 55,921 2/28/98 29,166 0 36,931 66,097 46,704 2/28/97 25,423 0 23,356 48,779 34,595 2/29/96 23,855 0 18,143 41,998 27,421 2/28/95 19,156 0 10,806 29,962 20,357 2/28/94 19,038 0 10,344 29,382 18,962 2/28/93 18,201 0 3,859 22,060 17,502 2/29/92 15,361 0 3,257 18,618 15,815 2/28/91 12,422 0 717 13,139 13,633 2/28/90 9,904 0 573 10,477 11,891
SOFTWARE AND COMPUTER INDEXES SERVICES PORTFOLIO Year Ended DJIA Cost of Living 2/28/99 $ 54,030 $ 13,528 2/28/98 48,785 13,314 2/28/97 38,595 13,125 2/29/96 30,144 12,738 2/28/95 21,531 12,410 2/28/94 20,019 12,064 2/28/93 17,124 11,768 2/29/92 16,115 11,398 2/28/91 13,768 11,086 2/28/90 12,079 10,526
Explanatory Notes: With an initial investment of $10,000 in Software and Computer Services Portfolio on March 1, 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 $ 37,603 . 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 $ 17,140 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, 1999, a hypothetical $10,000 investment in Technology Portfolio would have grown to $ 98,930 , including the effect of the fund's 3.00% sales charge.
TECHNOLOGY PORTFOLIO INDEXES Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value S&P 500 Investment Distributions Gain Distributions 2/28/99 $ 45,971 $ 477 $ 52,482 $ 98,930 $ 55,921 2/28/98 29,534 306 33,717 63,557 46,704 2/28/97 32,074 333 18,470 50,877 34,595 2/29/96 30,390 315 14,461 45,166 27,421 2/28/95 23,374 243 6,352 29,969 20,357 2/28/94 23,252 241 5,155 28,648 18,962 2/28/93 19,244 111 1,770 21,125 17,502 2/29/92 19,878 114 0 19,992 15,815 2/28/91 14,647 0 0 14,647 13,633 2/28/90 11,168 0 0 11,168 11,891
TECHNOLOGY PORTFOLIO INDEXES Year Ended DJIA Cost of Living 2/28/99 $ 54,030 $ 13,528 2/28/98 48,785 13,314 2/28/97 38,595 13,125 2/29/96 30,144 12,738 2/28/95 21,531 12,410 2/28/94 20,019 12,064 2/28/93 17,124 11,768 2/29/92 16,115 11,398 2/28/91 13,768 11,086 2/28/90 12,079 10,526
Explanatory Notes: With an initial investment of $10,000 in Technology Portfolio on March 1, 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 $ 38,943 . 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 $ 161 for dividends and $ 19,661 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, 1999, a hypothetical $10,000 investment in Telecommunications Portfolio would have grown to $ 57,202 , including the effect of the fund's 3.00% sales charge.
TELECOMMUNICATIONS PORTFOLIO Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value Investment Distributions Gain Distributions 2/28/99 $ 29,510 $ 2,602 $ 25,090 $ 57,202 2/28/98 25,464 2,245 19,098 46,807 2/28/97 19,944 1,758 10,243 31,945 2/29/96 21,409 1,679 6,532 29,620 2/28/95 18,293 1,222 4,031 23,546 2/28/94 17,701 862 3,243 21,806 2/28/93 16,313 692 884 17,889 2/29/92 13,927 503 526 14,956 2/28/91 11,351 284 429 12,064 2/28/90 11,489 54 434 11,977
TELECOMMUNICATIONS PORTFOLIO INDEXES Year Ended S&P 500 DJIA Cost of Living 2/28/99 $ 55,921 $ 54,030 $ 13,528 2/28/98 46,704 48,785 13,314 2/28/97 34,595 38,595 13,125 2/29/96 27,421 30,144 12,738 2/28/95 20,357 21,531 12,410 2/28/94 18,962 20,019 12,064 2/28/93 17,502 17,124 11,768 2/29/92 15,815 16,115 11,398 2/28/91 13,633 13,768 11,086 2/28/90 11,891 12,079 10,526
Explanatory Notes: With an initial investment of $10,000 in Telecommunications Portfolio on March 1, 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 $ 28,339 . 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 $ 1,145 for dividends and $ 11,799 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, 1999, a hypothetical $10,000 investment in Transportation Portfolio would have grown to $ 39,841 , including the effect of the fund's 3.00% sales charge.
TRANSPORTATION PORTFOLIO Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value Investment Distributions Gain Distributions 2/28/99 $ 19,035 $ 77 $ 20,729 $ 39,841 2/28/98 21,544 86 18,913 40,543 2/28/97 16,899 68 11,757 28,724 2/29/96 16,663 67 10,712 27,442 2/28/95 15,607 62 8,626 24,295 2/28/94 16,473 67 6,402 22,942 2/28/93 14,200 58 3,740 17,998 2/29/92 11,760 47 2,790 14,597 2/28/91 8,575 0 2,034 10,609 2/28/90 9,381 0 1,762 11,143
TRANSPORTATION PORTFOLIO INDEXES Year Ended S&P 500 DJIA Cost of Living 2/28/99 $ 55,921 $ 54,030 $ 13,528 2/28/98 46,704 48,785 13,314 2/28/97 34,595 38,595 13,125 2/29/96 27,421 30,144 12,738 2/28/95 20,357 21,531 12,410 2/28/94 18,962 20,019 12,064 2/28/93 17,502 17,124 11,768 2/29/92 15,815 16,115 11,398 2/28/91 13,633 13,768 11,086 2/28/90 11,891 12,079 10,526
Explanatory Notes: With an initial investment of $10,000 in Transportation Portfolio on March 1, 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 $ 26,765 . 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 $ 30 for dividends and $ 11,175 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, 1999, a hypothetical $10,000 investment in Utilities Growth Portfolio would have grown to $ 51,277 , including the effect of the fund's 3.00% sales charge.
UTILITIES GROWTH PORTFOLIO Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value Investment Distributions Gain Distributions 2/28/99 $ 22,164 $ 6,947 $ 22,166 $ 51,277 2/28/98 19,256 5,860 13,681 38,797 2/28/97 16,546 4,671 7,269 28,486 2/29/96 15,488 3,945 4,680 24,113 2/28/95 12,554 2,818 3,793 19,165 2/28/94 13,177 2,341 3,606 19,124 2/28/93 14,933 2,097 1,622 18,652 2/29/92 13,162 1,292 720 15,174 2/28/91 12,716 586 231 13,533 2/28/90 11,971 327 0 12,298
UTILITIES GROWTH PORTFOLIO INDEXES Year Ended S&P 500 DJIA Cost of Living 2/28/99 $ 55,921 $ 54,030 $ 13,528 2/28/98 46,704 48,785 13,314 2/28/97 34,595 38,595 13,125 2/29/96 27,421 30,144 12,738 2/28/95 20,357 21,531 12,410 2/28/94 18,962 20,019 12,064 2/28/93 17,502 17,124 11,768 2/29/92 15,815 16,115 11,398 2/28/91 13,633 13,768 11,086 2/28/90 11,891 12,079 10,526
Explanatory Notes: With an initial investment of $10,000 in Utilities Growth Portfolio March 1, 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 $ 30,721 . 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 $ 3,232 for dividends and $ 10,024 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 return, assume reinvestment of distributions, do not take sales charges or trading fees into consideration, and are prepared without regard to tax consequences. Lipper may also rank based on yield. In addition to the mutual fund rankings, a fund's performance may be compared to stock, bond, and money market mutual fund performance indexes prepared by Lipper or other organizations. When comparing these indexes, it is important to remember the risk and return characteristics of each type of investment. For example, while stock mutual funds may offer higher potential returns, they also carry the highest degree of share price volatility. Likewise, money market funds may offer greater stability of principal, but generally do not offer the higher potential returns available from stock mutual funds. From time to time, a fund's performance may also be compared to other mutual funds tracked by financial or business publications and periodicals. For example, a fund may quote Morningstar, Inc. in its advertising materials. Morningstar, Inc. is a mutual fund rating service that rates mutual funds on the basis of risk-adjusted performance. Rankings that compare the performance of Fidelity funds to one another in appropriate categories over specific periods of time may also be quoted in advertising. A fund's performance may also be compared to that of the benchmark index representing the universe of securities in which the fund may invest. The return of the index reflects reinvestment of all dividends and capital gains paid by securities included in the index. Unlike a fund's returns, however, the index's returns do not reflect brokerage commissions, transaction fees, or other costs of investing directly in the securities included in the index. Each stock fund may compare its performance to that of the Standard & Poor's 500 Index, a market capitalization-weighted index of common stocks. Each of Consumer Industries, Food and Agriculture, Leisure, Multimedia and Retailing may compare its performance to that of the Goldman Sachs Consumer Industries Index , a market capitalization-weighted index of 300 stocks designed to measure the performance of companies in the consumer industries sector. Issues in the index include providers of consumer services and products, including producers of beverages-alcoholic and non-alcoholic, food, personal care, household products and tobacco companies. Each of Air Transportation, Automotive, Chemicals, Construction and Housing, Cyclical Industries, Defense and Aerospace, Environmental Services, Industrial Equipment, Industrial Materials, Paper and Forest Products and Transportation may compare its performance to that of the Goldman Sachs Cyclical Industries Index , a market capitalization-weighted index of 277 stocks designed to measure the performance of companies in the cyclical industries sector. Issues in the index include providers of consumer and commercial goods and services where performance is influenced by the cyclical ity of economy, such as: manufacturers of automobiles and companies involved with construction of residential and commercial properties, producers of chemicals, electrical equipment and components, and providers of environmental services. Each of Brokerage and Investment Management, Financial Services, Home Finance, Insurance and Regional Banks may compare its performance to that of the Goldman Sachs Financial Services Index , a market capitalization-weighted index of 271 stocks designed to measure the performance of companies in the financial services sector. Issues in the index include financial institutions providing banking services, brokerage firms and asset managers, insurance companies, and real estate holding and development companies. Each of Biotechnology, Health Care, Medical Delivery and Medical Equipment and Systems may compare its performance to that of the Goldman Sachs Health Care Index , a market capitalization-weighted index of 93 stocks designed to measure the performance of companies in the health care sector. Issues in the index include providers of health care related services including long-term care and hospital facilities, health care management organizations and continuing care services. Each of Energy, Energy Service, Gold, Natural Resources and Precious Metals and Minerals may compare its performance to that of the Goldman Sachs Natural Resources Index , a market capitalization-weighted index of 96 stocks designed to measure the performance of companies in the natural resources sector. Issues in the index include extractive industries including gold & precious metals mining along with other mineral mining, energy companies providing oil & gas services, and owners and operators of timber tracts and forestry services. Each of Business Services and Outsourcing, Computers, Developing Communications, Electronics, Software and Computer services and Technology may compare its performance to that of the Goldman Sachs Technology Index , a market capitalization-weighted index of 190 stocks designed to measure the performance of companies in the technology sector. Issues in the index include producers of sophisticated devices, services and software related to the fields of computers, electronics, networking and Internet services. Each of Natural Gas, Telecommunications and Utilities Growth may compare its performance to that of the Goldman Sachs Utilities Index , a market capitalization-weighted index of 136 stocks designed to measure the performance of companies in the utilities sector. Issues in the index include generators and distributors of electricity, distributors of natural gas and water, and providers of telecommunications services. A fund may be compared in advertising to Certificates of Deposit (CDs) or other investments issued by banks or other depository institutions. Mutual funds differ from bank investments in several respects. For example, a fund may offer greater liquidity or higher potential returns than CDs, a fund does not guarantee 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 indexes. Fidelity funds may use the performance of these capital markets in order to demonstrate general risk-versus-reward investment scenarios. Performance comparisons may also include the value of a hypothetical investment in any of these capital markets. The risks associated with the security types in any capital market may or may not correspond directly to those of the funds. Ibbotson calculates returns in the same method as the funds. The funds may also compare performance to that of other compilations or indexes that may be developed and made available in the future. The money market fund may compare its performance or the performance of securities in which it may invest to averages published by IBC Financial Data, Inc. of Ashland, Massachusetts. These averages assume reinvestment of distributions. IBC's MONEY FUND REPORT AVERAGES(trademark)/ALL TAXABLE, which is reported in IBC's MONEY FUND REPORT(trademark), covers over 916 taxable money market funds. In advertising materials, Fidelity may reference or discuss its products and services, which may include other Fidelity funds; retirement investing; brokerage products and services; model portfolios or allocations; saving for college or other goals; and charitable giving. In addition, Fidelity may quote or reprint financial or business publications and periodicals as they relate to current economic and political conditions, fund management, portfolio composition, investment philosophy, investment techniques, the desirability of owning a particular mutual fund, and Fidelity services and products. Fidelity may also reprint, and use as advertising and sales literature, articles from Fidelity Focus(registered trademark), a quarterly magazine provided free of charge to Fidelity fund shareholders. A fund may present its fund number, Quotron(trademark) number, and CUSIP number, and discuss or quote its current portfolio manager. VOLATILITY. A stock fund may quote various measures of volatility and benchmark correlation in advertising. In addition, the fund may compare these measures to those of other funds. Measures of volatility seek to compare a fund's historical share price fluctuations or returns to those of a benchmark. Measures of benchmark correlation indicate how valid a comparative benchmark may be. All measures of volatility and correlation are calculated using averages of historical data. MOMENTUM INDICATORS indicate price movements over specific periods of time for a stock fund. Each point on the momentum indicator represents a fund's percentage change in price movements over that period. A stock fund may advertise examples of the effects of periodic investment plans, including the principle of dollar cost averaging. In such a program, an investor invests a fixed dollar amount in a fund at periodic intervals, thereby purchasing fewer shares when prices are high and more shares when prices are low. While such a strategy does not assure a profit or guard against loss in a declining market, the investor's average cost per share can be lower than if fixed numbers of shares are purchased at the same intervals. In evaluating such a plan, investors should consider their ability to continue purchasing shares during periods of low price levels. 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, 1999, FMR advised over $ 34 billion in municipal fund assets, $ 127 billion in taxable fixed-income fund assets, $131 billion in money market fund assets, $501 billion in equity fund assets, $13 billion in international fund assets, and $32 billion in Spartan fund assets. The funds may reference the growth and variety of money market mutual funds and the adviser's innovation and participation in the industry. The equity funds under management figure represents the largest amount of equity fund assets under management by a mutual fund investment adviser in the United States, making FMR America's leading equity (stock) fund manager. FMR, its subsidiaries, and affiliates maintain a worldwide information and communications network for the purpose of researching and managing investments abroad. In addition to performance rankings, the money market fund may compare its total expense ratio to the average total expense ratio of similar funds tracked by Lipper. The fund's total expense ratio is a significant factor in comparing bond and money market investments because of its effect on yield. ADDITIONAL PURCHASE, EXCHANGE AND REDEMPTION INFORMATION Pursuant to Rule 22d-1 under the 1940 Act, FDC exercises its right to waive each fund's front-end sales charge on shares acquired through reinvestment of dividends and capital gain distributions or in connection with a fund's merger with or acquisition of any investment company or trust. In addition, FDC has chosen to waive each fund's front-end sales charge in certain instances due to sales efficiencies and competitive considerations. The sales charge will not apply: 1. to shares purchased in connection with an employee benefit plan (including the Fidelity-sponsored 403(b) and corporate IRA programs but otherwise as defined in the Employee Retirement Income Security Act) maintained by a U.S. employer and having more than 200 eligible employees, or a minimum of $3,000,000 in plan assets invested in Fidelity mutual funds, or as part of an employee benefit plan maintained by a U.S. employer that is a member of a parent-subsidiary group of corporations (within the meaning of Section 1563(a)(1) of the Internal Revenue Code, with "50%" substituted for "80%") any member of which maintains an employee benefit plan having more than 200 eligible employees, or a minimum of $3,000,000 in plan assets invested in Fidelity mutual funds, or as part of an employee benefit plan maintained by a non-U.S. employer having 200 or more eligible employees, or a minimum of $3,000,000 in assets invested in Fidelity mutual funds, the assets of which are held in a bona fide trust for the exclusive benefit of employees participating therein; 2. to shares purchased by an insurance company separate account used to fund annuity contracts purchased by employee benefit plans (including 403(b) programs, but otherwise as defined in the Employee Retirement Income Security Act), which, in the aggregate, have either more than 200 eligible employees or a minimum of $3,000,000 in assets invested in Fidelity funds; 3. to shares in a Fidelity account purchased (including purchases by exchange) with the proceeds of a distribution from an employee benefit plan provided that: (i) at the time of the distribution, the employer, or an affiliate (as described in waiver (1) above) of such employer, maintained at least one employee benefit plan that qualified for waiver (1) above and that had at least some portion of its assets invested in one or more mutual funds advised by FMR, or in one or more investment accounts or pools advised by Fidelity Management Trust Company; and (ii) either (a) the distribution is transferred from the plan to a Fidelity IRA account within 60 days from the date of the distribution or (b) the distribution is transferred directly from the plan into another Fidelity account; 4. to shares purchased by a charitable organization (as defined for purposes of Section 501(c)(3) of the Internal Revenue Code) investing $100,000 or more; 5. to shares purchased for a charitable remainder trust or life income pool established for the benefit of a charitable organization (as defined for purposes of Section 501(c)(3) of the Internal Revenue Code); 6. to shares purchased by an investor participating in the Fidelity Trust Portfolios program (these investors must make initial investments of $100,000 or more in the Trust Portfolios funds and must, during the initial six-month period, reach and maintain an aggregate balance of at least $500,000 in all accounts and subaccounts purchased through the Trust Portfolios program); 7. to shares purchased by a mutual fund or a qualified state tuition program for which FMR or an affiliate serves as investment manager; 8. to shares purchased through Portfolio Advisory Services SM or Fidelity Charitable Advisory Services; 9. to shares purchased by a current or former Trustee or officer of a Fidelity fund or a current or retired officer, director, or regular employee of FMR Corp. or Fidelity International Limited or their direct or indirect subsidiaries (a Fidelity Trustee or employee), the spouse of a Fidelity Trustee or employee, a Fidelity Trustee or employee acting as custodian for a minor child, or a person acting as trustee of a trust for the sole benefit of the minor child of a Fidelity Trustee or employee; or 10. to shares purchased by a bank trust officer, registered representative, or other employee of a qualified recipient. Qualified recipients are securities dealers or other entities, including banks and other financial institutions, who have sold the fund's shares under special arrangements in connection with FDC's sales activities. A fund's sales charge may be reduced to reflect sales charges previously paid, or that would have been paid absent a reduction for some purchases made directly with Fidelity as noted in the prospectus, in connection with investments in other Fidelity funds. This includes reductions for investments in the following prototype or prototype-like retirement plans sponsored by FMR or FMR Corp.: The Fidelity Traditional IRA, The Fidelity Roth IRA, The Fidelity Rollover IRA, The Fidelity SEP-IRA and SARSEP, The Fidelity SIMPLE IRA, The Fidelity Retirement Plan, Fidelity Defined Benefit Plan, The Fidelity Group IRA, The Fidelity 403(b) Program, The Fidelity Investments 401(a) Prototype Plan for Tax-Exempt Employers, and The CORPORATEplan for Retirement (Profit Sharing and Money Purchase Plan). On October 12, 1990, the funds changed their sales charge policy from a 2% sales charge upon purchase and a 1% deferred sales charge upon redemption, to a 3% sales charge upon purchase. If you purchased your shares prior to that date, when you redeem those shares a trading fee will be deducted and a deferred sales charge of 1% of this net redemption amount will be deducted. The deferred sales charge does not apply to exchanges between Select funds. 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. DISTRIBUTIONS AND TAXES DIVIDENDS. A portion of each fund's income may qualify for the dividends-received deduction available to corporate shareholders to the extent that the fund's income is derived from qualifying dividends. Because each fund may earn other types of income, such as interest, short-term capital gains, and non-qualifying dividends, the percentage of dividends from the fund that qualifies for the deduction generally will be less than 100%. A portion of each fund's dividends derived from certain U.S. Government securities and securities of certain other investment companies may be exempt from state and local taxation. CAPITAL GAINS DISTRIBUTIONS. Each fund's long-term capital gains distributions are federally taxable to shareholders generally as capital gains. The money market fund may distribute any net realized capital gains once a year or more often, as necessary. As of February 28, 1999, Automotive had a capital loss carryforward aggregating approximately $ 1,009,000 . This loss carryforward, all of which will expire on February 28, 2007 , is available to offset future capital gains. As of February 28 , 1999, Electronics had a capital loss carryforward aggregating approximately $102,009,000. This loss carryforward, all of which will expire on February 28 , 2007, is available to offset future capital gains. As of February 28 , 1999, Energy had a capital loss carryforward aggregating approximately $3,040,000. This loss carryforward, all of which will expire on February 28 , 2007, is available to offset future capital gains. As of February 28 , 1999, Energy Services had a capital loss carryforward aggregating approximately $85,150,000. This loss carryforward, all of which will expire on February 28 , 2007, is available to offset future capital gains. As of February 28 , 1999, Gold had a capital loss carryforward aggregating approximately $52,460,000. This loss carryforward, of which $35,849,000 and $16,611,000, will expire on February 28 , 2006 and 2007, respectively, is available to offset future capital gains. As of February 28 , 1999, Industrial Materials had a capital loss carryforward aggregating approximately $840,000. This loss carryforward, all of which will expire on February 28 , 2007, is available to offset future capital gains. As of February 28 , 1999, Medical Delivery had a capital loss carryforward aggregating approximately $10,988,000. This loss carryforward, all of which will expire on February 28 , 2007, is available to offset future capital gains. As of February 28 , 1999, Natural Gas had a capital loss carryforward aggregating approximately $3,229,000. This loss carryforward, all of which will expire on February 28 , 2007, is available to offset future capital gains. As of February 28 , 1999, Natural Resources had a capital loss carryforward aggregating approximately $563,000. This loss carryforward, all of which will expire on February 28 , 2007, is available to offset future capital gains. As of February 28 , 1999, Paper and Forest Products had a capital loss carryforward aggregating approximately $2,903,000. This loss carryforward, all of which will expire on February 28 , 2007, is available to offset future capital gains. As of February 28 , 1999, Precious Metals and Minerals had a capital loss carryforward aggregating approximately $77,793,000. This loss carryforward, of which $1,376,000, $55,694,000, and $20,723,000, will expire on February 28 , 2001, 2006, and 2007, respectively, is available to offset future capital gains. RETURNS OF CAPITAL. If a fund's distributions exceed its taxable income and capital gains realized during a taxable year, all or a portion of the distributions made in the same taxable year may be recharacterized as a return of capital to shareholders. A return of capital distribution will generally not be taxable, but will reduce each shareholder's cost basis in the fund and result in a higher reported capital gain or lower reported capital loss when those shares on which the distribution was received are sold. FOREIGN TAX CREDIT OR DEDUCTION. Foreign governments may withhold taxes on dividends and interest earned by a fund with respect to foreign securities. Foreign governments may also impose taxes on other payments or gains with respect to foreign securities. If, at the close of its fiscal year, more than 50% of a fund's total assets is invested in securities of foreign issuers, the fund may elect to pass through eligible foreign taxes paid and thereby allow shareholders to take a deduction or, if they meet certain holding period requirements with respect to fund shares, a credit on their individual tax returns. TAX STATUS OF THE FUNDS. Each fund intends to qualify each year as a "regulated investment company" under Subchapter M of the Internal Revenue Code so that it will not be liable for federal tax on income and capital gains distributed to shareholders. In order to qualify as a regulated investment company, and avoid being subject to federal income or excise taxes at the fund level, each fund intends to distribute substantially all of its net investment income and net realized capital gains within each calendar year as well as on a fiscal year basis, and intends to comply with other tax rules applicable to regulated investment companies. OTHER TAX INFORMATION. The information above is only a summary of some of the tax consequences generally affecting each fund and its shareholders, and no attempt has been made to discuss individual tax consequences. It is up to you or your tax preparer to determine whether the sale of shares of a fund resulted in a capital gain or loss or other tax consequence to you. In addition to federal income taxes, shareholders may be subject to state and local taxes on fund distributions, and shares may be subject to state and local personal property taxes. Investors should consult their tax advisers to determine whether a fund is suitable to their particular tax situation. TRUSTEES AND OFFICERS The Trustees, Members of the Advisory Board, and executive officers of the trust are listed below. The Board of Trustees governs each fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee each fund's activities, review contractual arrangements with companies that provide services to each fund, and review each fund's performance. Except as indicated, each individual has held the office shown or other offices in the same company for the last five years. All persons named as Trustees and Members of the Advisory Board also serve in similar capacities for other funds advised by FMR or its affiliates. The business address of each Trustee, Member of the Advisory Board, and officer who is an "interested person" (as defined in the 1940 Act) is 82 Devonshire Street, Boston, Massachusetts 02109, which is also the address of FMR. The business address of all the other Trustees is Fidelity Investments, P.O. Box 9235, Boston, Massachusetts 02205-9235. Those Trustees who are "interested persons" by virtue of their affiliation with either the trust or FMR are indicated by an asterisk (*). *EDWARD C. JOHNSON 3d (68), 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. ; and a Director of FDC. Abigail Johnson, Member of the Advisory Board of Fidelity Select Portfolios, is Mr. Johnson's daughter. ABIGAIL P. JOHNSON (37), Member of the Advisory Board of Fidelity Select Portfolios (1999), is Vice President of certain Equity Funds (1997), and is a Director of FMR Corp. (1994). Before assuming her current responsibilities, Ms. Johnson managed a number of Fidelity funds. Edward C. Johnson 3d, Trustee and President of the Funds, is Ms. Johnson's father. J. GARY BURKHEAD (57), 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 (65), 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 (66), 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 (55), 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 LucasVarity PLC (automotive components and diesel engines), Charles Stark Draper Laboratory (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 (71), 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 (66), 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 previously served as Director of General Re Corporation (reinsurance , 1987-1998 ), and Valuation Research Corp. (appraisals and valuations, 1993-1995). H e serves as Chairman of the Board of Directors of National Arts Stabilization Inc., Chairman of the Board of Trustees of the Greenwich Hospital Association, Director of the Yale-New Haven Health Services Corp. (1998), 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 (56), 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 (65), 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 (70), 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 (65), Trustee (1993), is Chairman of the Board, 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). *ROBERT C. POZEN (52), 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 (70), 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 (43), 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. (59), 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. JOHN T. TODD (50), 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. ERIC D. ROITER (50), Secretary (1998), is Vice President (1998) and General Counsel of FMR (1998) and Vice President and Clerk of FDC (1998). Prior to joining Fidelity, Mr. Roiter was with the law firm of Debevoise & Plimpton , as an associate (1981-1984) and as a partner (1985-1997), and served as an Assistant General Counsel of the U.S. Securities and Exchange Commission (1979-1981). Mr. Roiter was an Adjunct Member, Faculty of Law, at Columbia University Law School (1996-1997). RICHARD A. SILVER (51), 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). MATTHEW N. KARSTETTER (37), Deputy Treasurer (1998), is Deputy Treasurer of the Fidelity funds and is an employee of FMR (1998). Before joining FMR, Mr. Karstetter served as Vice President of Investment Accounting and Treasurer of IDS Mutual Funds at American Express Financial Advisors (1996-1998). Prior to 1996, Mr. Karstetter was Vice President, Mutual Fund Services at State Street Bank & Trust (1991-1996). STANLEY N. GRIFFITH (52), Assistant Vice President (1998), is Assistant Vice President of Fidelity's Fixed-Income Funds (1998) and an employee of FMR Corp. JOHN H. COSTELLO (52), Assistant Treasurer, is an employee of FMR. LEONARD M. RUSH (53), 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 (40), Assistant Treasurer (1996), is Assistant Treasurer of Fidelity's Fixed-Income Funds (1998) and an employee of FMR (1996). Prior to joining FMR, Mr. Simpson was Vice President and Fund Controller of Liberty Investment Services (1987-1995). The following table sets forth information describing the compensation of each Trustee and Member of the Advisory Board of each fund for his or her services for the fiscal year ended February 28, 1999, or calendar year ended December 31, 1998, as applicable.
Compensation Table AGGREGATE COMPENSATION FROM A Edward C. Johnson 3d** Abigail P. Johnson** J. Gary Burkhead ** Ralph F. Cox FUNDA Air TransportationB $ 0 $ 0 $ 0 $ 36 AutomotiveB $ 0 $ 0 $ 0 $ 20 BiotechnologyB $ 0 $ 0 $ 0 $ 194 Brokerage and Investment $ 0 $ 0 $ 0 $ 252 ManagementB Business Services and $ 0 $ 0 $ 0 $ 17 OutsourcingB ChemicalsB $ 0 $ 0 $ 0 $ 17 ComputersB $ 0 $ 0 $ 0 $ 316 Construction and HousingB $ 0 $ 0 $ 0 $ 28 Consumer IndustriesB $ 0 $ 0 $ 0 $ 26 Cyclical IndustriesB $ 0 $ 0 $ 0 $ 1 Defense and AerospaceB $ 0 $ 0 $ 0 $ 20 Developing CommunicationsB $ 0 $ 0 $ 0 $ 96 ElectronicsB $ 0 $ 0 $ 0 $ 761 EnergyB $ 0 $ 0 $ 0 $ 49 Energy ServiceB $ 0 $ 0 $ 0 $ 241 Environmental ServicesB $ 0 $ 0 $ 0 $ 7 Financial ServicesB $ 0 $ 0 $ 0 $ 216 Food and AgricultureB $ 0 $ 0 $ 0 $ 80 GoldB $ 0 $ 0 $ 0 $ 73 Health CareB,C,D $ 0 $ 0 $ 0 $ 843 Home FinanceB $ 0 $ 0 $ 0 $ 487 Industrial EquipmentB $ 0 $ 0 $ 0 $ 15 Industrial MaterialsB $ 0 $ 0 $ 0 $ 6 InsuranceB $ 0 $ 0 $ 0 $ 39 LeisureB $ 0 $ 0 $ 0 $ 98 Medical DeliveryB $ 0 $ 0 $ 0 $ 55 Medical Equipment and SystemsB+ $ 0 $ 0 $ 0 $ 5 MultimediaB $ 0 $ 0 $ 0 $ 44 Natural GasB $ 0 $ 0 $ 0 $ 18 Natural ResourcesB $ 0 $ 0 $ 0 $ 2 Paper and Forest ProductsB $ 0 $ 0 $ 0 $ 6 Precious Metals and MineralsB $ 0 $ 0 $ 0 $ 53 Regional BanksB $ 0 $ 0 $ 0 $ 439 RetailingB $ 0 $ 0 $ 0 $ 91 Software and Computer ServicesB $ 0 $ 0 $ 0 $ 191 TechnologyB $ 0 $ 0 $ 0 $ 240 TelecommunicationsB $ 0 $ 0 $ 0 $ 263 TransportationB $ 0 $ 0 $ 0 $ 10 Utilities GrowthB $ 0 $ 0 $ 0 $ 138 Money MarketB $ 0 $ 0 $ 0 $ 326 TOTAL COMPENSATION FROM THE $ 0 $ 0 $ 0 $ 223,500 FUND COMPLEX*,A
AGGREGATE COMPENSATION FROM A Phyllis Burke Davis Robert M. Gates E. Bradley Jones Donald J. Kirk Peter S. Lynch** FUNDA Air TransportationB $ 36 $ 36 $ 36 $ 36 $ 0 AutomotiveB $ 19 $ 20 $ 19 $ 20 $ 0 BiotechnologyB $ 191 $ 193 $ 192 $ 194 $ 0 Brokerage and Investment $ 248 $ 253 $ 251 $ 255 $ 0 ManagementB Business Services and $ 17 $ 17 $ 17 $ 18 $ 0 OutsourcingB ChemicalsB $ 17 $ 17 $ 17 $ 17 $ 0 ComputersB $ 311 $ 315 $ 313 $ 315 $ 0 Construction and HousingB $ 27 $ 28 $ 27 $ 28 $ 0 Consumer IndustriesB $ 26 $ 26 $ 26 $ 27 $ 0 Cyclical IndustriesB $ 1 $ 1 $ 1 $ 1 $ 0 Defense and AerospaceB $ 20 $ 20 $ 20 $ 20 $ 0 Developing CommunicationsB $ 94 $ 96 $ 95 $ 96 $ 0 ElectronicsB $ 751 $ 761 $ 756 $ 763 $ 0 EnergyB $ 49 $ 49 $ 49 $ 50 $ 0 Energy ServiceB $ 238 $ 242 $ 240 $ 243 $ 0 Environmental ServicesB $ 7 $ 7 $ 7 $ 7 $ 0 Financial ServicesB $ 213 $ 216 $ 214 $ 218 $ 0 Food and AgricultureB $ 79 $ 80 $ 79 $ 80 $ 0 GoldB $ 72 $ 72 $ 72 $ 73 $ 0 Health CareB,C,D $ 832 $ 842 $ 837 $ 848 $ 0 Home FinanceB $ 481 $ 488 $ 485 $ 493 $ 0 Industrial EquipmentB $ 15 $ 15 $ 15 $ 15 $ 0 Industrial MaterialsB $ 6 $ 6 $ 6 $ 6 $ 0 InsuranceB $ 38 $ 39 $ 39 $ 39 $ 0 LeisureB $ 96 $ 98 $ 97 $ 99 $ 0 Medical DeliveryB $ 54 $ 55 $ 55 $ 56 $ 0 Medical Equipment and SystemsB+ $ 5 $ 5 $ 5 $ 5 $ 0 MultimediaB $ 43 $ 44 $ 43 $ 44 $ 0 Natural GasB $ 18 $ 18 $ 18 $ 19 $ 0 Natural ResourcesB $ 2 $ 2 $ 2 $ 2 $ 0 Paper and Forest ProductsB $ 6 $ 6 $ 6 $ 6 $ 0 Precious Metals and MineralsB $ 52 $ 53 $ 53 $ 53 $ 0 Regional BanksB $ 433 $ 440 $ 437 $ 443 $ 0 RetailingB $ 90 $ 91 $ 91 $ 92 $ 0 Software and Computer ServicesB $ 188 $ 191 $ 189 $ 192 $ 0 TechnologyB $ 237 $ 240 $ 239 $ 240 $ 0 TelecommunicationsB $ 259 $ 263 $ 261 $ 265 $ 0 TransportationB $ 10 $ 10 $ 10 $ 10 $ 0 Utilities GrowthB $ 136 $ 138 $ 137 $ 138 $ 0 Money MarketB $ 322 $ 326 $ 323 $ 330 $ 0 TOTAL COMPENSATION FROM THE $ 220,500 $ 223,500 $222,000 $ 226,500 $ 0 FUND COMPLEX*,A
AGGREGATE COMPENSATION FROM A William O. McCoy Gerald C. McDonough Marvin L. Mann Robert C. Pozen ** Thomas R. Williams FUNDA Air TransportationB $ 36 $ 44 $ 36 $ 0 $ 36 AutomotiveB $ 20 $ 24 $ 20 $ 0 $ 20 BiotechnologyB $ 193 $ 237 $ 193 $ 0 $ 193 Brokerage and Investment $ 253 $ 309 $ 253 $ 0 $ 253 ManagementB Business Services and $ 17 $ 21 $ 17 $ 0 $ 17 OutsourcingB ChemicalsB $ 17 $ 21 $ 17 $ 0 $ 17 ComputersB $ 315 $ 385 $ 315 $ 0 $ 315 Construction and HousingB $ 28 $ 34 $ 28 $ 0 $ 28 Consumer IndustriesB $ 26 $ 32 $ 26 $ 0 $ 26 Cyclical IndustriesB $ 1 $ 2 $ 1 $ 0 $ 1 Defense and AerospaceB $ 20 $ 25 $ 20 $ 0 $ 20 Developing CommunicationsB $ 96 $ 117 $ 96 $ 0 $ 96 ElectronicsB $ 761 $ 931 $ 761 $ 0 $ 761 EnergyB $ 49 $ 60 $ 49 $ 0 $ 49 Energy ServiceB $ 242 $ 296 $ 242 $ 0 $ 242 Environmental ServicesB $ 7 $ 9 $ 7 $ 0 $ 7 Financial ServicesB $ 216 $ 264 $ 216 $ 0 $ 216 Food and AgricultureB $ 80 $ 98 $ 80 $ 0 $ 80 GoldB $ 72 $ 89 $ 72 $ 0 $ 72 Health CareB,C,D $ 842 $ 1,031 $ 842 $ 0 $ 842 Home FinanceB $ 488 $ 598 $ 488 $ 0 $ 488 Industrial EquipmentB $ 15 $ 18 $ 15 $ 0 $ 15 Industrial MaterialsB $ 6 $ 7 $ 6 $ 0 $ 6 InsuranceB $ 39 $ 48 $ 39 $ 0 $ 39 LeisureB $ 98 $ 120 $ 98 $ 0 $ 98 Medical DeliveryB $ 55 $ 67 $ 55 $ 0 $ 55 Medical Equipment and SystemsB+ $ 5 $ 6 $ 5 $ 0 $ 5 MultimediaB $ 44 $ 54 $ 44 $ 0 $ 44 Natural GasB $ 18 $ 23 $ 18 $ 0 $ 18 Natural ResourcesB $ 2 $ 3 $ 2 $ 0 $ 2 Paper and Forest ProductsB $ 6 $ 8 $ 6 $ 0 $ 6 Precious Metals and MineralsB $ 53 $ 65 $ 53 $ 0 $ 53 Regional BanksB $ 440 $ 539 $ 440 $ 0 $ 440 RetailingB $ 91 $ 112 $ 91 $ 0 $ 91 Software and Computer ServicesB $ 191 $ 233 $ 191 $ 0 $ 191 TechnologyB $ 240 $ 294 $ 240 $ 0 $ 240 TelecommunicationsB $ 263 $ 322 $ 263 $ 0 $ 263 TransportationB $ 10 $ 12 $ 10 $ 0 $ 10 Utilities GrowthB $ 138 $ 169 $ 138 $ 0 $ 138 Money MarketB $ 326 $ 396 $ 326 $ 0 $ 326 TOTAL COMPENSATION FROM THE $ 223,500 $ 273,500 $ 220,500 $ 0 $ 223,500 FUND COMPLEX*,A
* Information is for the calendar year ended December 31, 1998 for 237 funds in the complex. ** Interested Trustees of the funds , Ms. Johnson and Mr. Burkhead are compensated by FMR. + 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, 1998, the Trustees accrued required deferred compensation from the funds as follows: Ralph F. Cox, $75,000; Phyllis Burke Davis, $75,000; Robert M. Gates, $75,000; E. Bradley Jones, $75,000; Donald J. Kirk, $75,000; William O. McCoy, $75,000; Gerald C. McDonough, $87,500; Marvin L. Mann, $75,000; and Thomas R. Williams, $75,000. Certain of the non-interested Trustees elected voluntarily to defer a portion of their compensation as follows: Ralph F. Cox, $55,039; Marvin L. Mann, $55,039; Thomas R. Williams, $63,433; and William O. McCoy, $55,039. 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, $ 379 ; Phyllis Burke Davis, $ 379 ; Robert M. Gates, $ 379 ; E. Bradley Jones, $ 379 ; Donald J. Kirk, $ 379 ; William O. McCoy, $ 379 ; Gerald C. McDonough, $ 443 ; Marvin L. Mann, $ 379 ; and Thomas R. Williams, $ 379 . D Certain of the non-interested Trustees' aggregate compensation from a fund includes accrued voluntary deferred compensation as follows: Ralph F. Cox, $321, Health Care; William O. McCoy, $321, Health Care; Marvin L. Mann, $263, Health Care; and Thomas R. Williams, $321, Health Care. 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, 1999, approximately 15.71% and 38.73% of Natural Resources' and Cyclical Industries' total outstanding shares w ere held by an FMR affiliate. FMR Corp. is the ultimate parent company of FMR this FMR affiliate. By virtue of his ownership interest in FMR Corp., as described in the "Control of Investment Advisers" section on page 355 , 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 Natural Resources' and Cyclical Industries' 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, 1999, the following owned of record or beneficially 5% or more (up to and including 25%) of each fund's outstanding shares: Air Transportation: First Trust Corporation, Denver, CO (5.80%) Energy: Boston College, Boston, MA (5.64%) Natural Resources: FMR Capital, Boston, MA (15.71%) As of February 28, 1999, approximately 38.73 % of Cyclical Industries' total outstanding shares were held by FMR Capital, Boston, Massachusetts. A shareholder owning of record or beneficially more than 25% of a fund's outstanding shares may be considered a controlling person. That shareholder's vote could have a more significant effect on matters presented at a shareholders' meeting than votes of other shareholders. CONTROL OF INVESTMENT ADVISERS FMR Corp., organized in 1972, is the ultimate parent company of FMR, FIMM, FMR U.K. and FMR Far East. 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 Investment Company Act of 1940 (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 investment 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. MANAGEMENT CONTRACTS Each fund has entered into a management contract with FMR, pursuant to which FMR furnishes investment advisory and other services. MANAGEMENT SERVICES. Under the terms of its management contract with each fund, FMR acts as investment adviser and, subject to the supervision of the Board of Trustees, directs the investments of the fund in accordance with its investment objective, policies and limitations. FMR also provides each fund with all necessary office facilities and personnel for servicing the fund's investments, compensates all officers of each fund and all Trustees who are "interested persons" of the trust or of FMR, and all personnel of each fund or FMR performing services relating to research, statistical and investment activities. In addition, FMR or its affiliates, subject to the supervision of the Board of Trustees, provide the management and administrative services necessary for the operation of each fund. These services include providing facilities for maintaining each fund's organization; supervising relations with custodians, transfer and pricing agents, accountants, underwriters and other persons dealing with each fund; preparing all general shareholder communications and conducting shareholder relations; maintaining each fund's records and the registration of each fund's shares under federal securities laws and making necessary filings under state securities laws; developing management and shareholder services for each fund; and furnishing reports, evaluations and analyses on a variety of subjects to the Trustees. MANAGEMENT-RELATED EXPENSES. In addition to the management fee payable to FMR and the fees payable to the transfer, dividend disbursing, and shareholder servicing agent, pricing and bookkeeping agent, and 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, and an income-based component of 6% of the fund's monthly gross income in excess of an annualized 5% yield. For this purpose, gross income includes interest accrued and/or discount earned (including both original issue discount and market discount) on portfolio obligations, less amortization of premium on portfolio obligations. The maximum income-based component is an amount equal to an annual rate of 0.24% of the fund's average net assets throughout the month. The group fee rate is based on the monthly average net assets of all of the registered investment companies with which FMR has management contracts. The following is the fee schedule for the money market fund.
MONEY MARKET FUND Group Fee Rate Schedule Effective Annual Fee Rates Average Group Assets Annualized Rate Group Net Assets Effective Annual Fee Rate 0 - $3 billion .3700% $ 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 .1690 24 - 30 .1800 200 .1652 30 - 36 .1750 225 .1618 36 - 42 .1700 250 .1587 42 - 48 .1650 275 .1560 48 - 66 .1600 300 .1536 66 - 84 .1550 325 .1514 84 - 120 .1500 350 .1494 120 - 156 .1450 375 .1476 156 - 192 .1400 400 .1459 192 - 228 .1350 425 .1443 228 - 264 .1300 450 .1427 264 - 300 .1275 475 .1413 300 - 336 .1250 500 .1399 336 - 372 .1225 525 .1385 372 - 408 .1200 550 .1372 408 - 444 .1175 444 - 480 .1150 480 - 516 .1125 Over 516 .1100
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 $707 billion of group net assets - the approximate level for February 1999 - was 0.1312%, which is the weighted average of the respective fee rates for each level of group net assets up to $707 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 fund's average net assets for the month, giving a dollar amount which is the fee for that month to which the income-based component is added. 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 following is the fee schedule for the stock funds.
STOCK FUNDS Group Fee Rate SchedulE Effective Annual Fee RateS Average Group Assets Annualized Rate Group Net Assets Effective Annual Fee Rate 0 - $3 billion .5200% $ 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 $ 707 billion of group net assets - the approximate level for February 1999 - was 0.2843 %, which is the weighted average of the respective fee rates for each level of group net assets up to $ 707 billion. Each stock fund's individual fund fee rate is 0.30%. Based on the average group net assets of the funds advised by FMR for February 1999, each stock fund's annual management fee rate would be calculated as follows:
Group Fee Rate Individual Fund Fee Rate Management Fee Rate Stock Funds 0.2843% + 0.30% = 0.5843%
One-twelfth of the management fee rate is applied to each stock fund's average net assets for the month, giving a dollar amount which is the fee for that month. The following table shows the amount of management fees paid by each fund to FMR for the past three fiscal years.
Fund Fiscal Years Ended February 28 Management Fees Paid to FMR Air Transportation 1999 $ 573,138 1998 $ 378,349 1997 $ 539,940 Automotive 1999 $ 357,296 1998 $ 369,375 1997 $ 726,743 Biotechnology 1999 $ 3,390,377 1998 $ 3,442,469 1997 $ 4,324,960 Brokerage and Investment 1999 $ 4,267,725 Management 1998 $ 2,493,991 1997 $ 448,938 Business Services and 1999 $ 326,653 Outsourcing 1998* $ 2,948 Chemicals 1999 $ 276,652 1998 $ 496,851 1997 $ 745,680 Computers 1999 $ 6,013,190 1998 $ 3,921,116 1997 $ 3,309,228 Construction and Housing 1999 $ 490,439 1998 $ 155,730 1997 $ 408,988 Consumer Industries 1999 $ 457,965 1998 $ 161,119 1997 $ 154,434 Cyclical Industries 1999 $ 22,236 1998** $ 21,141 Defense and Aerospace 1999 $ 312,058 1998 $ 381,060 1997 $ 268,010 Developing Communications 1999 $ 1,854,817 1998 $ 1,420,790 1997 $ 1,856,888 Electronics 1999 $ 13,375,808 1998 $ 14,146,742 1997 $ 7,859,173 Energy 1999 $ 825,294 1998 $ 1,137,325 1997 $ 1,066,783 Energy Service 1999 $ 3,826,822 1998 $ 5,735,646 1997 $ 2,790,650 Environmental Services 1999 $ 122,145 1998 $ 165,498 1997 $ 252,081 Fund Fiscal Years Ended February 28 Management Fees Paid to FMR Financial Services 1999 $ 3,668,034 1998 $ 2,799,557 1997 $ 1,661,452 Food and Agriculture 1999 $ 1,335,082 1998 $ 1,473,308 1997 $ 1,682,437 Gold 1999 $ 1,216,228 1998 $ 1,664,398 1997 $ 2,501,556 Health Care 1999 $ 14,851,440 1998 $ 9,512,189 1997 $ 7,661,331 Home Finance 1999 $ 7,895,622 1998 $ 7,971,664 1997 $ 4,201,147 Industrial Equipment 1999 $ 249,535 1998 $ 358,194 1997 $ 560,442 Industrial Materials 1999 $ 94,263 1998 $ 178,398 1997 $ 590,927 Insurance 1999 $ 645,431 1998 $ 657,447 1997 $ 204,881 Leisure 1999 $ 1,721,162 1998 $ 853,326 1997 $ 643,761 Medical Delivery 1999 $ 909,497 1998 $ 949,169 1997 $ 1,307,251 Medical Equipment and Systems 1999*** $ 80,475 Multimedia 1999 $ 768,461 1998 $ 355,794 1997 $ 513,562 Natural Gas 1999 $ 301,788 1998 $ 489,011 1997 $ 679,330 Natural Resources 1999 $ 38,307 1998** $ 38,241 Paper and Forest Products 1999 $ 87,942 1998 $ 144,890 1997 $ 194,763 Precious Metals and Minerals 1999 $ 882,668 1998 $ 1,160,570 1997 $ 2,005,219 Regional Banks 1999 $ 7,314,180 1998 $ 6,188,500 1997 $ 2,534,699 Fund Fiscal Years Ended February 28 Management Fees Paid to FMR Retailing 1999 $ 1,658,052 1998 $ 911,425 1997 $ 1,338,783 Software and Computer Services 1999 $ 3,378,317 1998 $ 2,593,824 1997 $ 2,546,782 Technology 1999 $ 4,515,599 1998 $ 3,293,787 1997 $ 2,800,144 Telecommunications 1999 $ 4,615,660 1998 $ 2,473,329 1997 $ 2,878,937 Transportation 1999 $ 142,306 1998 $ 341,054 1997 $ 50,368 Utilities Growth 1999 $ 2,410,584 1998 $ 1,639,699 1997 $ 1,440,039 Money Market 1999 $ 1,853,858 1998 $ 1,715,272 1997 $ 1,584,080
* Business Services and Outsourcing commenced operations of February 4, 1998. ** Cyclical Industries and Natural Resources commenced operations on March 3, 1997. *** Medical Equipment and Systems commenced operations on April 28, 1998. FMR may, from time to time, voluntarily reimburse all or a portion of a fund's operating expenses (exclusive of interest, taxes, securities lending fees, brokerage commissions, and extraordinary expenses) which is subject to revision or termination. FMR retains the ability to be repaid for these expense reimbursements in the amount that expenses fall below the limit prior to the end of the fiscal year. Expense reimbursements by FMR will increase a fund's returns and yield, and repayment of the reimbursement by a fund will lower its returns and yield. During the past three fiscal periods, FMR voluntarily agreed to reimburse the funds if and to the extent that the fund's aggregate operating expenses, including management fees, were in excess of an annual rate of its average net assets. The table below shows the dollar amount of management fees incurred under each applicable 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 Aggregate Operating Expense Fiscal Years Ended February 28 Management Fee Before Limitation Reimbursement Construction and Housing 2.50% 1998 $ 155,730 Cyclical Industries 2.50% 1999 $ 22,236 1998 $ 21,141 Natural Resources 2.50% 1999 $ 38,307 1998 $ 38,241 Business Services and 2.50% 1998 $ 2,948 Outsourcing Transportation 2.50% 1997 $ 75,979
Name of Fund Amount of Management Fee Reimbursement Construction and Housing $ 9,992 Cyclical Industries $ 22,236 $ 21,141 Natural Resources $ 38,307 $ 38,241 Business Services and $ 2,948 Outsourcing Transportation $ 25,611
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 choosing investments for the fund. Prior to January 23, 1998, FMR Texas Inc. (FMR Texas) had primary responsibility for providing investment management services to the fund. On January 23, 1998, FMR Texas was merged into FIMM, which succeeded to the operations of FMR Texas. Under the terms of the sub-advisory agreement for the money market fund, FMR pays FIMM fees equal to 50% of the management fee payable to FMR under its management contract with the fund. The fees paid to FIMM are not reduced by any voluntary or mandatory expense reimbursements that may be in effect from time to time. On behalf of the money market fund, for the fiscal years ended February 28, 1998 and 1997, FMR paid FMR Texas fees of $857,636 and $792,040, respectively. On behalf of the money market fund, for the fiscal year ended February 28, 1999, FMR paid FIMM fees of $ 926,930. On behalf of the stock funds, FMR has entered into subadvisory 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, FMR may also grant FMR U.K. and FMR Far East investment management authority as well as the authority to buy and sell securities if FMR believes it would be beneficial to the funds. 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 the stock funds, 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 average net assets managed by the sub-adviser on a discretionary basis. For providing investment advice and research services, fees paid to FMR U.K. and FMR Far East on behalf of the stock funds 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 1999 1998 1997 1999 1998 1997 Air Transportation $ 2,553 $ 3,327 $ 1,385 $ 2,411 $ 3,202 $ 1,429 Automotive 6,503 4,434 16,190 5,175 4,325 14,746 Biotechnology 5,639 11,836 57,555 4,245 10,833 55,421 Brokerage and Investment 35,636 13,584 1,593 31,379 13,185 1,549 Management Business Services and 65 6* -- 48 5* -- Outsourcing Chemicals 1,562 5,873 11,460 1,516 5,590 11,730 Computers 17,784 15,517 14,494 13,154 15,486 14,124 Construction and Housing 583 6 463 525 5 439 Consumer Industries 1,246 474 190 1,024 455 189 Cyclical Industries 13 40** -- 9 40** -- Defense and Aerospace 0 1,692 928 0 1,755 853 Developing Communications 40,270 19,094 16,341 32,779 18,708 15,580 Electronics 82,887 147,596 26,600 72,615 143,650 22,356 Energy 22,599 25,414 27,154 18,894 24,716 25,283 Energy Service 40,212 51,145 26,346 35,640 49,720 25,339 Environmental Services 17 2,414 1,352 19 2,242 1,317 Financial Services 4,454 439 0 3,790 424 0 Food and Agriculture 18,053 5,707 1,856 15,039 5,521 1,799 Gold 20,125 -- -- 15,199 -- -- Health Care 97,086 96,459 140,931 78,047 95,116 132,786 Home Finance 9,249 14,065 13,987 9,829 13,533 12,464 Industrial Equipment 590 736 1,764 533 746 1,518 Industrial Materials 35 1,579 12,985 35 1,540 12,586 Insurance 917 770 153 879 746 146 Leisure 7,018 1,740 2,080 5,868 1,685 1,990 Medical Delivery 0 216 741 0 187 642 Medical Equipment and Systems 73*** -- -- 63*** -- -- Multimedia 1,632 711 3,001 1,301 694 2,963 Natural Gas 1,450 182 786 1,150 154 660 Natural Resources 1,041 559** -- 851 554** -- Paper and Forest Products 1,858 809 1,218 1,762 772 1,118 Precious Metals and Minerals 48,237 42,196 104,793 39,878 40,224 101,856 Regional Banks 3,255 6,772 2,772 3,095 6,544 2,458 Retailing 0 0 1,846 0 0 1,805 Software and Computer Services 14,881 14,371 16,414 13,002 13,791 15,288 Technology 86,248 23,941 16,385 66,343 25,181 14,600 Telecommunications 47,989 37,699 24,984 39,416 36,443 25,546 Transportation 502 571 563 474 575 539 Utilities Growth 3,104 3,855 3,110 2,777 3,672 3,012
* Business Services and Outsourcing commenced operations of February 4, 1998. ** Cyclical Industries and Natural Resources commenced operations on March 3, 1997. *** Medical Equipment and Systems commenced operations on April 28, 1998. For discretionary investment management and execution of portfolio transactions, no fees were paid to FMR U.K. and FMR Far East on behalf of the stock funds for the past three fiscal years. DISTRIBUTION SERVICES Each fund has entered into a distribution agreement with FDC, an affiliate of FMR. FDC is a broker-dealer registered under the Securities Exchange Act of 1934 and a member of the National Association of Securities Dealers, Inc. The distribution agreements call for FDC to use all reasonable efforts, consistent with its other business, to secure purchasers for shares of the 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, FDC collected, in the aggregate, $550,208 of deferred sales charges from the total value of shares redeemed by shareholders in all funds. 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, FDC collected, in the aggregate, $51,023,883 of front-end sales charges. The following table shows the sales charge revenue retained by FDC for fiscal 1997.
Fiscal Year Ended Sales Charge Revenue Deferred Sales Charge Revenue Air Transportation Feb. 28, 1997 $ 668,390 $ 1,386 Automotive Feb. 28, 1997 466,135 2,159 Biotechnology Feb. 28, 1997 1,854,442 41,551 Brokerage and Investment Feb. 28, 1997 903,649 1,311 Management Chemicals Feb. 28, 1997 579,393 6,478 Computers Feb. 28, 1997 2,540,952 5,155 Construction and Housing Feb. 28, 1997 174,919 1,261 Consumer Industries Feb. 28, 1997 169,639 682 Defense and Aerospace Feb. 28, 1997 292,571 1,408 Developing Communications Feb. 28, 1997 733,692 7,987 Electronics Feb. 28, 1997 9,021,074 9,923 Energy Feb. 28, 1997 1,029,850 14,667 Energy Service Feb. 28, 1997 4,165,989 10,974 Environmental Services Feb. 28, 1997 177,009 9,944 Financial Services Feb. 28, 1997 1,400,884 8,487 Food and Agriculture Feb. 28, 1997 1,095,115 7,683 Gold Feb. 28, 1997 1,162,696 43,678 Health Care Feb. 28, 1997 2,553,184 69,909 Home Finance Feb. 28, 1997 5,869,188 4,653 Industrial Equipment Feb. 28, 1997 252,021 2,660 Industrial Materials Feb. 28, 1997 866,268 4,072 Insurance Feb. 28, 1997 248,750 1,364 Leisure Feb. 28, 1997 282,104 14,717 Medical Delivery Feb. 28, 1997 567,463 6,016 Multimedia Feb. 28, 1997 338,283 4,261 Natural Gas Feb. 28, 1997 682,901 2,332 Paper and Forest Products Feb. 28, 1997 126,407 2,892 Precious Metals and Minerals Feb. 28, 1997 669,762 45,427 Regional Banks Feb. 28, 1997 3,497,512 3,702 Retailing Feb. 28, 1997 838,536 4,812 Software and Computer Services Feb. 28, 1997 1,921,006 5,034 Technology Feb. 28, 1997 1,543,709 36,252 Telecommunications Feb. 28, 1997 1,182,016 30,536 Transportation Feb. 28, 1997 101,332 682 Utilities Growth Feb. 28, 1997 238,618 38,523 Money Market Feb. 28, 1997 2,788,424 97,630
Sales charge revenues collected and retained by FDC for the fiscal years 1999 and 1998 are shown in the table below.
Sales Charge Revenue Deferred Sales Charge Revenue Fiscal Year Ended Amount Paid to FDC Amount Retained by FDC Amount Paid to FDC Air Transportation Feb. 28, 1999 $ 432,957 $ 423,538 $ 2,545 Feb. 28, 1998 299,325 290,774 946 Automotive Feb. 28, 1999 151,425 151,425 1,131 Feb. 28, 1998 70,085 69,822 597 Biotechnology Feb. 28, 1999 1,182,620 1,176,547 23,624 Feb. 28, 1998 1,105,374 1,099,427 31,256 Brokerage and Investment Feb. 28, 1999 4,817,568 4,806,902 5,812 Management Feb. 28, 1998 4,327,828 4,314,336 2,431 Business Services and Feb. 28, 1999 661,865 661,865 106 Outsourcing Feb. 28, 1998* 61,937 61,787 0 Chemicals Feb. 28, 1999 45,096 44,178 7,081 Feb. 28, 1998 84,712 84,544 7,955 Computers Feb. 28, 1999 9,062,985 9,053,383 5,657 Feb. 28, 1998 3,518,068 3,494,034 6,144 Construction and Housing Feb. 28, 1999 451,157 449,854 653 Feb. 28, 1998 257,572 257,391 240 Consumer Industries Feb. 28, 1999 342,823 339,350 208 Feb. 28, 1998 84,756 79,995 805 Cyclical Industries Feb. 28, 1999 16,210 16,210 0 Feb. 28, 1998** 36,552 36,552 0 Defense and Aerospace Feb. 28, 1999 127,643 125,494 824 Feb. 28, 1998 312,026 309,320 1,329 Developing Communications Feb. 28, 1999 1,740,638 1,737,968 3,177 Feb. 28, 1998 479,806 477,848 6,980 Electronics Feb. 28, 1999 7,287,169 7,252,407 10,633 Feb. 28, 1998 20,665,782 20,595,342 10,101 Energy Feb. 28, 1999 570,198 567,585 12,418 Feb. 28, 1998 600,122 592,780 14,514 Energy Service Feb. 28, 1999 3,272,526 3,265,721 9,358 Feb. 28, 1998 10,530,278 10,501,244 11,289 Environmental Services Feb. 28, 1999 29,658 28,390 7,574 Feb. 28, 1998 42,162 42,118 6,428 Financial Services Feb. 28, 1999 2,154,649 2,152,071 13,596 Feb. 28, 1998 2,098,142 2,087,581 8,343 Food and Agriculture Feb. 28, 1999 373,556 371,478 5,955 Feb. 28, 1998 682,877 665,203 5,255 Gold Feb. 28, 1999 691,742 685,928 19,578 Feb. 28, 1998 916,845 902,000 27,084 Health Care Feb. 28, 1999 10,991,959 10,970,853 58,978 Feb. 28, 1998 4,316,495 4,275,358 56,845 Home Finance Feb. 28, 1999 4,255,219 4,241,642 13,199 Feb. 28, 1998 9,770,117 9,751,663 5,349 Industrial Equipment Feb. 28, 1999 25,189 24,472 1,074 Feb. 28, 1998 60,451 60,217 2,151 Industrial Materials Feb. 28, 1999 12,710 12,337 1,065 Feb. 28, 1998 21,426 20,666 2,207 Insurance Feb. 28, 1999 351,928 351,772 1,491 Feb. 28, 1998 686,986 664,282 786 Leisure Feb. 28, 1999 956,242 946,671 10,919 Feb. 28, 1998 457,999 448,102 13,069 Sales Charge Revenue Deferred Sales Charge Revenue Fiscal Year Ended Amount Paid to FDC Amount Retained by FDC Amount Paid to FDC Medical Delivery Feb. 28, 1999 $ 324,894 $ 324,831 $ 6,973 Feb. 28, 1998 212,167 208,986 6,095 Medical Equipment and Systems Feb. 28, 1999*** 283,524 283,524 2,642 Multimedia Feb. 28, 1999 599,274 596,505 1,687 Feb. 28, 1998 304,729 289,533 739 Natural Gas Feb. 28, 1999 123,203 121,320 982 Feb. 28, 1998 288,000 286,855 2,018 Natural Resources Feb. 28, 1999 24,488 24,488 8 Feb. 28, 1998** 81,304 81,304 26 Paper and Forest Products Feb. 28, 1999 45,535 45,535 737 Feb. 28, 1998 82,389 81,018 2,161 Precious Metals and Minerals Feb. 28, 1999 418,114 414,477 18,943 Feb. 28, 1998 590,860 588,609 30,793 Regional Banks Feb. 28, 1999 3,590,683 3,579,211 8,288 Feb. 28, 1998 7,288,315 7,262,004 4,790 Retailing Feb. 28, 1999 1,568,122 1,565,474 2,870 Feb. 28, 1998 622,003 618,590 2,757 Software and Computer Services Feb. 28, 1999 1,939,605 1,925,580 4,793 Feb. 28, 1998 1,272,908 1,258,051 5,910 Technology Feb. 28, 1999 5,573,254 5,562,533 32,321 Feb. 28, 1998 2,082,341 2,072,865 22,926 Telecommunications Feb. 28, 1999 3,594,841 3,578,078 12,323 Feb. 28, 1998 1,091,356 1,084,052 16,675 Transportation Feb. 28, 1999 94,851 93,190 657 Feb. 28, 1998 168,254 167,042 925 Utilities Growth Feb. 28, 1999 1,250,178 1,246,320 21,580 Feb. 28, 1998 629,220 601,884 22,382 Money Market Feb. 28, 1999 1,708,692 1,617,903 67,970 Feb. 28, 1998 2,402,715 2,223,313 95,881
Amount Retained by FDC Air Transportation $ 2,545 946 Automotive 1,131 597 Biotechnology 23,624 31,256 Brokerage and Investment 5,812 Management 2,431 Business Services and 106 Outsourcing 0 Chemicals 7,081 7,955 Computers 5,657 6,144 Construction and Housing 653 240 Consumer Industries 208 805 Cyclical Industries 0 0 Defense and Aerospace 824 1,329 Developing Communications 3,177 6,980 Electronics 10,633 10,101 Energy 12,418 14,514 Energy Service 9,358 11,289 Environmental Services 7,574 6,428 Financial Services 13,596 8,343 Food and Agriculture 5,955 5,255 Gold 19,578 27,084 Health Care 58,978 56,845 Home Finance 13,199 5,349 Industrial Equipment 1,074 2,151 Industrial Materials 1,065 2,207 Insurance 1,491 786 Leisure 10,919 13,069 Amount Retained by FDC Medical Delivery $ 6,973 6,095 Medical Equipment and Systems 2,642 Multimedia 1,687 739 Natural Gas 982 2,018 Natural Resources 8 26 Paper and Forest Products 737 2,161 Precious Metals and Minerals 18,943 30,793 Regional Banks 8,288 4,790 Retailing 2,870 2,757 Software and Computer Services 4,793 5,910 Technology 32,321 22,926 Telecommunications 12,323 16,675 Transportation 657 925 Utilities Growth 21,580 22,382 Money Market 67,970 95,881
* Business Services and Outsourcing commenced operations on February 4, 1998. ** Cyclical Industries and Natural Resources commenced operations on March 3, 1997. *** Medical Equipment and Systems commenced operations on April 28, 1998. TRANSFER AND SERVICE AGENT AGREEMENTS Each fund has entered into a transfer agent agreement with FSC, an affiliate of FMR. Under the terms of the agreements, FSC performs transfer agency, dividend disbursing, and shareholder services for each fund. For providing transfer agency services, FSC receives an account fee and an asset-based fee each paid monthly with respect to each account in a fund. For retail accounts and certain institutional accounts, these fees are based on account size and fund type. For certain institutional retirement accounts, these fees are based on fund type. For certain other institutional retirement accounts, these fees are based on account type and fund type. The account fees are subject to increase based on postage rate changes. For the stock funds, the asset-based fees are subject to adjustment if the year-to-date total return of the S&P 500 exceeds a positive or negative 15%. FSC also collects small account fees from certain accounts with balances of less than $2,500. In addition, FSC collects a $7.50 exchange fee for each exchange out of a stock fund. In addition, FSC receives the pro rata portion of the transfer agency fees applicable to shareholder accounts in a qualified state tuition program (QSTP), as defined under the Small Business Job Protection Act of 1996, managed by FMR or an affiliate and each Fidelity Freedom Fund, a fund of funds managed by an FMR affiliate, according to the percentage of the QSTP's or 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 each stock fund's securities lending program. For providing pricing and bookkeeping services, FSC receives a monthly fee based on each fund's average daily net assets throughout the month. The annual rates for pricing and bookkeeping services for the money market fund are 0.0150% for the first $500 million of average net assets, 0.0075% of average net assets between $500 million and $10 billion, and 0.0010% of average net assets in excess of $10 billion. The fee, not including reimbursement for out-of-pocket expenses, is limited to a minimum of $40,000 per year. The annual rates for pricing and bookkeeping services for the stock funds are 0.0750% for the first $500 million of average net assets, 0.0550% of average net assets between $500 million and $3 billion, and 0.0010% of average net assets in excess of $3 billion. The fee, not including reimbursement for out-of-pocket expenses, is limited to a minimum of $60,000 per year. Pricing and bookkeeping fees, including reimbursement for out-of-pocket expenses, paid by the funds to FSC for the past three fiscal years are shown in the table below.
PRICING AND BOOKKEEPING FEES FISCAL 1999 FISCAL 1998 FISCAL 1997 Air Transportation $ 98,333 $ 73,865 $ 92,138 Automotive 67,412 65,849 120,805 Biotechnology 518,521 538,574 612,580 Brokerage and Investment 593,407 404,906 88,697 Management Business Services and 60,809 5,000* N/A Outsourcing Chemicals 62,258 83,611 123,784 Computers 746,605 578,646 520,629 Construction and Housing 80,383 60,209 76,325 Consumer Industries 75,037 61,506 60,450 Cyclical Industries 60,050 59,755** N/A Defense and Aerospace 68,157 68,287 61,443 Developing Communications 287,287 239,077 308,377 Electronics 967,497 802,315 799,758 Energy 135,861 191,416 177,681 Energy Service 545,287 680,412 445,567 Environmental Services 57,141 60,348 64,394 Financial Services 543,141 465,691 276,349 Food and Agriculture 220,104 246,634 279,388 Gold 199,332 280,044 416,410 Health Care 964,925 800,697 805,100 Home Finance 753,655 791,859 596,198 Industrial Equipment 60,400 65,050 93,288 Industrial Materials 60,350 60,356 98,357 Insurance 106,572 114,165 60,415 Leisure 279,815 143,851 107,125 Medical Delivery 150,958 161,193 215,825 Medical Equipment and Systems 50,606*** N/A N/A Multimedia 124,969 68,383 85,280 Natural Gas 60,991 82,484 113,435 Natural Resources 60,054 59,758** N/A Paper and Forest Products 60,339 60,338 60,429 Precious Metals and Minerals 145,054 195,123 333,124 Regional Banks 777,110 749,121 408,850 Retailing 268,863 153,141 222,542 Software and Computer Services 517,970 436,026 419,686 Technology 622,874 524,451 466,774 Telecommunications 625,067 410,851 479,593 Transportation 61,603 64,993 60,368 Utilities Growth 389,868 274,740 239,403 Money Market 120,261 111,447 108,892
* Business Services and Outsourcing commenced operations on February 4, 1998. ** Cyclical Industries and Natural Resources commenced operations on March 3, 1997. *** Medical Equipment and Systems commenced operations on April 28, 1998. For administering each stock fund's securities lending program, FSC receives fees based on the number and duration of individual securities loans. For the fiscal years ended February 1999, 1998, and 1997, no securities lending fees were incurred by those funds not listed below. Securities lending fees paid by the funds to FSC for the past three fiscal years are shown in the table below.
SECURITIES LENDING FEES FISCAL 1999 FISCAL 1998 FISCAL 1997 Biotechnology $ 18,000 $ 8,740 $ 9,415 Chemicals 395 4,265 770 Computers 17,470 11,975 6,265 Construction and Housing 355 298 445 Electronics 14,330 31,045 13,690 Energy 365 575 2,320 Energy Service 125 2,025 1,290 Financial Services 275 775 0 Food and Agriculture 2,160 5,870 0 Gold 435 1,255 3,065 Health Care 13,910 7,995 7,915 Medical Delivery 2,510 1,275 8,900 Regional Banks 145 2,730 3,860 Precious Metals and Minerals 285 965 710 Retailing 125 2,570 4,965 Software and Computer Services 7,605 18,840 5,940 Technology 11,065 20,865 16,005 Telecommunications 57,445 10,585 10,530 Transportation 625 3,155 0 Utilities Growth 6,915 2,530 780
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. On June 1, 1998, American Gold Portfolio changed its name from American Gold Portfolio to "Gold Portfolio." On July 18, 1996, Consumer Products Portfolio changed its name from Consumer Products Portfolio to "Consumer Industries Portfolio." On August 3, 1994, Utilities Portfolio changed its name from Utilities Portfolio to "Utilities Growth Portfolio." On April 30, 1994, Broadcast and Media Portfolio changed its name from Broadcast and Media Portfolio to "Multimedia Portfolio." Currently, there are 40 funds in Fidelity Select Portfolios: Air Transportation Portfolio, Automotive Portfolio, Biotechnology Portfolio, Brokerage and Investment Management Portfolio, Business Services and Outsourcing, Chemicals Portfolio, Computers Portfolio, Construction and Housing Portfolio, Consumer Industries Portfolio, Cyclical Industries Portfolio, Defense and Aerospace Portfolio, Developing Communications Portfolio, Electronics Portfolio, Energy Portfolio, Energy Service Portfolio, Environmental Services Portfolio, Financial Services Portfolio, Food and Agriculture Portfolio, Gold Portfolio, Health Care Portfolio, Home Finance Portfolio, Industrial Equipment Portfolio, Industrial Materials Portfolio, Insurance Portfolio, Leisure Portfolio, Medical Delivery Portfolio, Medical Equipment and Systems Portfolio, Multimedia Portfolio, Natural Gas Portfolio, Natural Resources Portfolio, Paper and Forest Products Portfolio, Precious Metals and Minerals Portfolio, Regional Banks Portfolio, Retailing Portfolio, Software and Computer Services Portfolio, Technology Portfolio, Telecommunications Portfolio, Transportation Portfolio, Utilities Growth Portfolio, and Money Market Portfolio. The Trustees are permitted to create additional funds in the trust. The assets of the trust received for the issue or sale of shares of each fund and all income, earnings, profits, and proceeds thereof, subject to the rights of creditors, are allocated to such fund, and constitute the underlying assets of such fund. The underlying assets of each fund in the trust shall be charged with the liabilities and expenses attributable to such fund. Any general expenses of the trust shall be allocated between or among any one or more of the funds. SHAREHOLDER LIABILITY. The trust is an entity commonly known as a "Massachusetts business trust." Under Massachusetts law, shareholders of such a trust may, under certain circumstances, be held personally liable for the obligations of the trust. The Declaration of Trust contains an express disclaimer of shareholder liability for the debts, liabilities, obligations, and expenses of the trust or fund. The Declaration of Trust provides that the trust shall not have any claim against shareholders except for the payment of the purchase price of shares and requires that each agreement, obligation, or instrument entered into or executed by the trust or the Trustees relating to the trust or to a fund shall include a provision limiting the obligations created thereby to the trust or to one or more funds and its or their assets. The Declaration of Trust further provides that shareholders of a fund shall not have a claim on or right to any assets belonging to any other fund. The Declaration of Trust provides for indemnification out of each fund's property of any shareholder or former shareholder held personally liable for the obligations of the fund solely by reason of his or her being or having been a shareholder and not because of his or her acts or omissions or for some other reason. The Declaration of Trust also provides that each fund shall, upon request, assume the defense of any claim made against any shareholder for any act or obligation of the fund and satisfy any judgment thereon. Thus, the risk of a shareholder incurring financial loss on account of shareholder liability is limited to circumstances in which a fund itself would be unable to meet its obligations. FMR believes that, in view of the above, the risk of personal liability to shareholders is remote. VOTING RIGHTS. Each fund's capital consists of shares of beneficial interest. As a shareholder, you are entitled to one vote for each dollar of net asset value that you own. The voting rights of shareholders can be changed only by a shareholder vote. Shares may be voted in the aggregate, by fund and by class. The shares have no preemptive or conversion rights. Shares are fully paid and nonassessable, except as set forth under the heading "Shareholder Liability" above. The trust or any of its funds may be terminated upon the sale of its assets to, or merger with, another open-end management investment company or series thereof, or upon liquidation and distribution of its assets. Generally, the merger of the trust or a fund with another entity or the sale of substantially all of the assets of the trust or a fund to another entity requires approval by a vote of shareholders of the trust or the fund. The Trustees may, however, reorganize or terminate the trust or any of its funds without prior shareholder approval. In the event of the dissolution or liquidation of the trust, shareholders of each of its funds are entitled to receive the underlying assets of such fund available for distribution. In the event of the dissolution or liquidation of a fund, shareholders of that fund are entitled to receive the underlying assets of the fund available for distribution. 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. Each custodian is responsible for the safekeeping of a fund's assets and the appointment of any subcustodian banks and clearing agencies. 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 members of the Board of Trustees may, from time to time, conduct transactions with various banks, including banks serving as custodians for certain funds advised by FMR. The Boston branch of the stock funds' custodian leases its office space from an affiliate of FMR at a lease payment which, when entered into, was consistent with prevailing market rates. Transactions that have occurred to date include mortgages and personal and general business loans. In the judgment of FMR, the terms and conditions of those transactions were not influenced by existing or potential custodial or other fund relationships. AUDITOR. PricewaterhouseCoopers LLP, 160 Federal Street, Boston, Massachusetts serves as independent accountant for each fund . The auditor examines financial statements for the funds and provides other audit, tax, and related services. FINANCIAL STATEMENTS Each fund's financial statements and financial highlights for the fiscal year ended February 28, 1999, and report of the auditor, are included in the funds' Annual Report and are incorporated herein by reference. APPENDIX Select Portfolios, Fidelity, Fidelity Investments & (Pyramid ) Design, Fidelity Focus, Fidelity Investments, and Magellan, are registered trademarks of FMR Corp. Portfolio Advisory Services is a service mark of FMR Corp. THE THIRD PARTY MARKS APPEARING ABOVE ARE THE MARKS OF THEIR RESPECTIVE OWNERS. PART C. OTHER INFORMATION Item 23. Exhibits. (a) Amended and Restated Declaration of Trust, dated May 13, 1998, is incorporated herein by reference to Exhibit a(1) of Post-Effective Amendment No. 65. (b) 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. (c) Not applicable. (d)(1) Management Contracts, dated June 1, 1998, between the Trust's Air Transportation, Automotive, Biotechnology, Brokerage and Investment Management, Chemicals, Computers, Construction and Housing, Consumer Industries, Defense and Aerospace, Developing Communications, Electronics, Energy, Energy Service, Environmental Services, Financial Services, Food and Agriculture, Gold, Health Care, Home Finance, Industrial Equipment, Industrial Materials, Insurance, Leisure, Medical Delivery, Multimedia, Natural Gas, Paper and Forest Products, Precious Metals and Minerals, Regional Banks, Retailing, Software and Computer Services, Technology, Telecommunications, Transportation, Utilities Growth, and Money Market Portfolios and Fidelity Management & Research Company, are incorporated herein by reference to Exhibits d(1)(a-jj) of Post-Effective Amendment No. 65. (2) 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. (3) 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. (4) 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. (5) 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. (6) 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. (7) 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. (8) 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. (9) 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. (10) 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. (11) Management Contract, dated December 18, 1997, between Medical Equipment and Systems Portfolio and Fidelity Management & Research Company, is incorporated herein by reference to Exhibit 5(k) of Post-Effective Amendment No. 64. (12) 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. (13) Sub-Advisory Agreement, dated 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. (14) Sub-Advisory Agreement, dated December 18, 1997, between Fidelity Management & Research (U.K.) Inc. and Fidelity Management & Research Company on behalf of Medical Equipment and Systems Portfolio, is incorporated herein by reference to Exhibit d(14) of Post-Effective Amendment No. 65. (15) Sub-Advisory Agreement, dated December 18, 1997, between Fidelity Management & Research (Far East) Inc. and Fidelity Management & Research Company on behalf of Medical Equipment and Systems Portfolio, is incorporated herein by reference to Exhibit d(15) of Post-Effective Amendment No. 65. (16) Sub-Advisory Agreement, dated June 1, 1998, between Fidelity Management & Research (U.K.) Inc. and Fidelity Management & Research Company on behalf of Gold Portfolio, is incorporated herein by reference to Exhibit d(16) of Post-Effective Amendment No. 65. (17) Sub-Advisory Agreement, dated June 1, 1998, between Fidelity Management & Research (Far East) Inc. and Fidelity Management & Research Company on behalf of Gold Portfolio, is incorporated herein by reference to Exhibit d(17) of Post-Effective Amendment No. 65. (e)(1) General Distribution Agreements, dated April 1, 1987, between the Registrant's Air Transportation, Gold (formerly 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. (2) Amendment to General Distribution Agreements, dated January 1, 1988, between the Registrant's Air Transportation, Gold (formerly 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. (3) 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. (4) 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. (5) 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. (6) 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. (7) 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. (8) 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. (9) 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. (10) 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. (11) 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 Natural Gas, Cyclical Industries, Natural Resources, Business Services and Outsourcing, and Medical Equipment and Systems and Fidelity Distributors Corporation are incorporated herein by reference to Exhibit 6(k) of Post-Effective Amendment No. 57. (12) 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. (13) 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. (14) General Distribution Agreement, between Medical Equipment and Systems Portfolio and Fidelity Distributors Corporation, is incorporated herein by reference to Exhibit 6(n) of Post-Effective No. 64. (15) Form of Bank Agency Agreement (most recently revised January, 1997), is filed herein as Exhibit e(15). (16) Form of Selling Dealer Agreement for Bank-Related Transactions (most recently revised January, 1997), is filed herein as Exhibit e(16). (f)(1) 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. (2) 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. (g)(1) Custodian Agreement and Appendix C, dated September 1, 1994, between Brown Brothers Harriman & Company and Fidelity Select Portfolios on behalf of the equity portfolios are incorporated herein by reference to Exhibit 8(a) of Fidelity Commonwealth Trust's (File No. 2-52322) Post-Effective Amendment No. 56. (2) Appendix A, dated November 19, 1998, to the Custodian Agreement, dated September 1, 1994, between Brown Brothers Harriman & Company and Fidelity Select Portfolios on behalf of the equity portfolios is incorporated herein by reference to Exhibit g(2) of Fidelity Contrafund's (File No. 2-25235) Post-Effective Amendment No. 53. (3) Appendix B, dated December 17, 1998, to the Custodian Agreement, dated September 1, 1994, between Brown Brothers Harriman & Company and Fidelity Select Portfolios on behalf of the equity portfolios is incorporated herein by reference to Exhibit g(3) of Fidelity Contrafund's (File No. 2-25235) Post-Effective Amendment No. 53. (4) 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 (File No. 33-52577) Post-Effective Amendment No. 4. (5) Appendix A, dated September 17, 1998, 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 g(2) of Fidelity Concord Street Trust's (File No. 33-15983) Post-Effective Amendment No. 31. (6) Appendix B, dated December 17, 1998, 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 g(3) of Fidelity Concord Street Trust's (File No. 33-15983) Post-Effective Amendment No. 31. (7) 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. (8) 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. (9) 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. (10) 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. (11) 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. (12) 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. (13) 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 g(13). (14) 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 g(14). (15) 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 g(15). (16) 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 g(16). (h) Not applicable. (i) Not applicable. (j) Consent of PricewaterhouseCoopers LLP, dated April 26, 1999 is filed herein as Exhibit j(1). (k) Not applicable. (l) Not applicable. (m) Not applicable. (n) Financial Data Schedules for the funds are filed herein as Exhibit 27. (o) Not applicable. Item 24. Trusts Controlled by or under Common Control with this Trust The Board of Trustees of the Trust is the same as the board of other Fidelity funds, each of which has Fidelity Management & Research Company, or an affiliate, as its investment adviser. In addition, the officers of the Trust are substantially identical to those of the other Fidelity funds. Nonetheless, the Trust takes the position that it is not under common control with other Fidelity funds because the power residing in the respective boards and officers arises as the result of an official position with the respective trusts. Item 25. 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 Trust 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 or her in connection with any claim, action, suit or proceeding in which he or she is involved by virtue of his or her service as a trustee or officer and against any amount incurred in settlement thereof. Indemnification will not be provided to a person adjudged by a court or other adjudicatory body to be liable to the Trust or its shareholders by reason of willful misfeasance, bad faith, gross negligence or reckless disregard of his or her duties (collectively, "disabling conduct"), or not to have acted in good faith in the reasonable belief that his or her action was in the best interest of the Trust. In the event of a settlement, no indemnification may be provided unless there has been a determination, as specified in the Declaration of Trust, that the officer or trustee did not engage in disabling conduct. Pursuant to Section 11 of the Distribution Agreement, the Trust 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 (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 Trust (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 Trust 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 Trust by or on behalf of the Distributor. In no case is the indemnity of the Trust in favor of the Distributor or any person indemnified to be deemed to protect the Distributor or any person against any liability to the Issuer or its security holders to which the Distributor 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. Pursuant to the agreement by which Fidelity Service Company, Inc. ("FSC") is appointed transfer agent, the Trust agrees to indemnify and hold FSC 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 Trust, including by a shareholder, which names FSC and/or the Trust as a party and is not based on and does not result from FSC's willful misfeasance, bad faith or negligence or reckless disregard of duties, and arises out of or in connection with FSC's performance under the Transfer Agency Agreement; or (2) any claim, demand, action or suit (except to the extent contributed to by FSC's willful misfeasance, bad faith or negligence or reckless disregard of its duties) which results from the negligence of the Trust, or from FSC's acting upon any instruction(s) reasonably believed by it to have been executed or communicated by any person duly authorized by the Trust, or as a result of FSC's acting in reliance upon advice reasonably believed by FSC to have been given by counsel for the Trust, or as a result of FSC'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 26. Business and Other Connections of Investment Advisers (1) FIDELITY MANAGEMENT & RESEARCH COMPANY (FMR) 82 Devonshire Street, Boston, MA 02109 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., Fidelity Investments Money Management, Inc. (FIMM), Fidelity Management & Research (U.K.) Inc. (FMR U.K.), and Fidelity Management & Research (Far East) Inc. (FMR Far East); Chairman of the Executive Committee of FMR; Director of Fidelity Investments Japan Limited (FIJ); 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. 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. Frederic G. Corneel Tax Counsel of FMR. Stephen G. Manning Assistant Treasurer of FMR, FIMM, FMR U.K., FMR Far East; Vice President and Treasurer of FMR Corp.; Treasurer of Strategic Advisers, Inc. 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., FMR Far East, and Strategic Advisers, Inc.; Secretary of FIMM; Associate General Counsel FMR Corp. David L. Glancy Vice President of FMR and of a fund 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; Vice President of FIMM. Bart A. Grenier Senior Vice President of FMR; Vice President of High-Income Funds advised by FMR. Robert J. Haber Vice President of FMR. Richard C. Habermann Senior Vice President of FMR; Vice President of funds advised by 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. Robert F. Hill Vice President of FMR; Director of Technical Research. 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 Senior Vice President of FMR and of a fund advised by FMR. Francis V. Knox Vice President of FMR; Compliance Officer of FMR U.K. and FMR Far East. 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. Neal P. Miller Vice President of FMR. Jacques Perold Vice President of FMR. Alan Radlo Vice President of FMR. Eric D. Roiter Vice President, General Counsel and Clerk of FMR and Secretary of funds advised by 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 and of funds advised by 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. Thomas Sweeney Vice President of 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 (FIJ); President and Trustee of funds advised by FMR. Robert C. Pozen President and Director of FMR U.K.; Senior Vice President and Trustee of funds advised by FMR; President and Director of FIMM, FMR, 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; Vice President and Treasurer of FMR Corp.; Treasurer of Strategic Advisers, Inc. Francis V. Knox Compliance Officer of FMR U.K. and FMR Far East; Vice President of FMR. Jay Freedman Clerk of FMR U.K., FMR Far East, FMR Corp. and Strategic Advisers, Inc.; Assistant Clerk of FMR; Secretary of FIMM; Associate General Counsel FMR Corp. Susan Englander Hislop Assistant Clerk of FMR U.K., FMR Far East and FIMM. Sarah H. Zenoble Senior Vice President and Director of Operations and Compliance. (3) FIDELITY MANAGEMENT & RESEARCH (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 (FIJ); President and Trustee of funds advised by FMR. Robert C. Pozen President and Director of FMR Far East; Senior Vice President and Trustee of funds advised by FMR; President and Director of FIMM, FMR U.K., and FMR; 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. Francis V. Knox Compliance Officer of FMR Far East and FMR U.K.; Vice President of FMR. Jay Freedman Clerk of FMR Far East, FMR U.K., FMR Corp. and Strategic Advisers, Inc.; Assistant Clerk of FMR; Secretary of FIMM; Associate General Counsel FMR Corp. Susan Englander Hislop Assistant Clerk of FMR Far East, FMR U.K. and FIMM. Stephen G. Manning Assistant Treasurer of FMR Far East, FMR, FMR U.K., and FIMM; Vice President and Treasurer of FMR Corp.; Treasurer of Strategic Advisers, Inc. Billy Wilder Vice President of FMR Far East; President and Representative Director of Fidelity Investments Japan Limited. (4) FIDELITY INVESTMENTS MONEY MANAGEMENT, INC. (FIMM) Contra Way, Merrimack, NH 03054 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 (FIJ); President and Trustee of funds advised by FMR. Robert C. Pozen President and Director of FIMM; Senior Vice President and Trustee of funds advised by FMR; President and Director of FMR, FMR U.K., and FMR Far East; Previously, General Counsel, Managing Director, and Senior Vice President of FMR Corp. Fred L. Henning Jr. Senior Vice President of FIMM; Senior Vice President of FMR and Vice President of Fixed-Income Funds advised by FMR. Boyce I. Greer Vice President of FIMM; Senior Vice President of FMR and Vice President of Money Market Funds advised by FMR. 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. Jay Freedman Secretary of FIMM; Clerk of FMR U.K., FMR Far East, FMR Corp. and Strategic Advisers, Inc.; Assistant Clerk of FMR; Secretary of FIMM; Associate General Counsel FMR Corp. Susan Englander Hislop Assistant Clerk of FIMM, FMR U.K. and FMR Far East. Stephen G. Manning Assistant Treasurer of FIMM, FMR U.K., FMR Far East, and FMR; Vice President and Treasurer of FMR Corp.; Treasurer of Strategic Advisers, Inc. Item 27. Principal Underwriters (a) Fidelity Distributors Corporation (FDC) acts as distributor for all funds advised by FMR or an affiliate. (b) Name and Principal Positions and Offices Positions and Offices Business Address* with Underwriter with Fund 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 28. 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, Fidelity Service Company, Inc. or Fidelity Investments Institutional Operations Company, Inc., 82 Devonshire Street, Boston, MA 02109, or the funds' respective custodians, The Bank of New York, 110 Washington Street, New York, NY and Brown Brothers Harriman & Co., 40 Water Street, Boston, MA. Item 29. Management Services Not applicable. Item 30. 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. 66 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 26th day of April 1999. 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 President and Trustee April 26, 1999 (dagger) Edward C. Johnson 3d (Principal Executive Officer) /s/Richard A. Silver Treasurer April 26, 1999 Richard A. Silver /s/Robert C. Pozen Trustee April 26, 1999 Robert C. Pozen /s/Ralph F. Cox Trustee April 26, 1999 * Ralph F. Cox /s/Phyllis Burke Davis Trustee April 26, 1999 * Phyllis Burke Davis /s/Robert M. Gates Trustee April 26, 1999 ** Robert M. Gates /s/E. Bradley Jones Trustee April 26, 1999 * E. Bradley Jones /s/Donald J. Kirk Trustee April 26, 1999 * Donald J. Kirk /s/Peter S. Lynch Trustee April 26, 1999 * Peter S. Lynch /s/Marvin L. Mann Trustee April 26, 1999 * Marvin L. Mann /s/William O. McCoy Trustee April 26, 1999 * William O. McCoy /s/Gerald C. McDonough Trustee April 26, 1999 * Gerald C. McDonough /s/Thomas R. Williams Trustee April 26, 1999 * 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 Fidelity Advisor Series III Portfolios Fidelity Advisor Series IV Fidelity Institutional Fidelity Advisor Series V Tax-Exempt Cash Portfolios Fidelity Advisor Series VI Fidelity Investment Trust Fidelity Advisor Series VII Fidelity Magellan Fund Fidelity Advisor Series VIII Fidelity Massachusetts Fidelity Beacon Street Trust Municipal Trust Fidelity Boston Street Trust Fidelity Money Market Trust Fidelity California Municipal Fidelity Mt. Vernon Street Trust Trust Fidelity California Municipal Fidelity Municipal Trust Trust II Fidelity Municipal Trust II Fidelity Capital Trust Fidelity New York Municipal Fidelity Charles Street Trust Trust Fidelity Commonwealth Trust Fidelity New York Municipal Fidelity Concord Street Trust Trust II Fidelity Congress Street Fund Fidelity Phillips Street Trust Fidelity Contrafund Fidelity Puritan Trust Fidelity Corporate Trust Fidelity Revere Street Trust Fidelity Court Street Trust Fidelity School Street Trust Fidelity Court Street Trust II Fidelity Securities Fund Fidelity Covington Trust Fidelity Select Portfolios Fidelity Daily Money Fund Fidelity Sterling Performance Fidelity Destiny Portfolios Portfolio, L.P. Fidelity Deutsche Mark Fidelity Summer Street Trust Performance Fidelity Trend Fund Portfolio, L.P. Fidelity U.S. Fidelity Devonshire Trust Investments-Bond Fund, L.P. Fidelity Exchange Fund Fidelity U.S. Fidelity Financial Trust Investments-Government Fidelity Fixed-Income Trust Securities Fidelity Government Fund, L.P. Securities Fund Fidelity Union Street Trust Fidelity Hastings Street Trust Fidelity Union Street Trust II Fidelity Yen Performance Portfolio, L.P. Newbury Street Trust Variable Insurance Products Fund Variable Insurance Products Fund II Variable Insurance Products Fund III 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 Fidelity Advisor Annuity Fund Securities Fund Fidelity Advisor Series I Fidelity Hastings Street Trust Fidelity Advisor Series II Fidelity Hereford Street Trust Fidelity Advisor Series III Fidelity Income Fund Fidelity Advisor Series IV Fidelity Institutional Cash Fidelity Advisor Series V Portfolios Fidelity Advisor Series VI Fidelity Institutional Fidelity Advisor Series VII Tax-Exempt Cash Portfolios Fidelity Advisor Series VIII Fidelity Institutional Trust Fidelity Beacon Street Trust Fidelity Investment Trust Fidelity Boston Street Trust Fidelity Magellan Fund Fidelity California Municipal Fidelity Massachusetts Trust Municipal Trust Fidelity California Municipal Fidelity Money Market Trust Trust II Fidelity Mt. Vernon Street Fidelity Capital Trust Trust Fidelity Charles Street Trust Fidelity Municipal Trust Fidelity Commonwealth Trust Fidelity Municipal Trust II Fidelity Congress Street Fund Fidelity New York Municipal Fidelity Contrafund Trust Fidelity Corporate Trust Fidelity New York Municipal Fidelity Court Street Trust Trust II Fidelity Court Street Trust II Fidelity Phillips Street Trust Fidelity Covington Trust Fidelity Puritan Trust Fidelity Daily Money Fund Fidelity Revere Street Trust Fidelity Daily Tax-Exempt Fund Fidelity School Street Trust Fidelity Destiny Portfolios Fidelity Securities Fund Fidelity Deutsche Mark Fidelity Select Portfolios Performance Fidelity Sterling Performance Portfolio, L.P. Portfolio, L.P. Fidelity Devonshire Trust Fidelity Summer Street Trust Fidelity Exchange Fund Fidelity Trend Fund Fidelity Financial Trust Fidelity U.S. Fidelity Fixed-Income Trust Investments-Bond Fund, L.P. Fidelity U.S. Investments-Government Securities Fund, L.P. Fidelity Union Street Trust Fidelity Union Street Trust II Fidelity Yen Performance Portfolio, L.P. 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 /s/Peter S. 3d___________ Lynch________________ Edward C. Johnson 3d Peter S. Lynch /s/J. Gary /s/William O. Burkhead_______________ McCoy______________ J. Gary Burkhead William O. McCoy /s/Ralph F. Cox /s/Gerald C. __________________ McDonough___________ Ralph F. Cox Gerald C. McDonough /s/Phyllis Burke /s/Marvin L. Davis_____________ Mann________________ Phyllis Burke Davis Marvin L. Mann /s/E. Bradley /s/Thomas R. Williams Jones________________ ____________ 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 Fidelity Advisor Annuity Fund Securities Fund Fidelity Advisor Series I Fidelity Hastings Street Trust Fidelity Advisor Series II Fidelity Hereford Street Trust Fidelity Advisor Series III Fidelity Income Fund Fidelity Advisor Series IV Fidelity Institutional Cash Fidelity Advisor Series V Portfolios Fidelity Advisor Series VI Fidelity Institutional Fidelity Advisor Series VII Tax-Exempt Cash Portfolios Fidelity Advisor Series VIII Fidelity Institutional Trust Fidelity Beacon Street Trust Fidelity Investment Trust Fidelity Boston Street Trust Fidelity Magellan Fund Fidelity California Municipal Fidelity Massachusetts Trust Municipal Trust Fidelity California Municipal Fidelity Money Market Trust Trust II Fidelity Mt. Vernon Street Fidelity Capital Trust Trust Fidelity Charles Street Trust Fidelity Municipal Trust Fidelity Commonwealth Trust Fidelity Municipal Trust II Fidelity Congress Street Fund Fidelity New York Municipal Fidelity Contrafund Trust Fidelity Corporate Trust Fidelity New York Municipal Fidelity Court Street Trust Trust II Fidelity Court Street Trust II Fidelity Phillips Street Trust Fidelity Covington Trust Fidelity Puritan Trust Fidelity Daily Money Fund Fidelity Revere Street Trust Fidelity Daily Tax-Exempt Fund Fidelity School Street Trust Fidelity Destiny Portfolios Fidelity Securities Fund Fidelity Deutsche Mark Fidelity Select Portfolios Performance Fidelity Sterling Performance Portfolio, L.P. Portfolio, L.P. Fidelity Devonshire Trust Fidelity Summer Street Trust Fidelity Exchange Fund Fidelity Trend Fund Fidelity Financial Trust Fidelity U.S. Fidelity Fixed-Income Trust Investments-Bond Fund, L.P. Fidelity U.S. Investments-Government Securities Fund, L.P. Fidelity Union Street Trust Fidelity Union Street Trust II Fidelity Yen Performance Portfolio, L.P. 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.E15 2 Exhibit e(15) 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.E16 3 Exhibit e(16) 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.G13 4 Exhibit g(13) 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 g(13) 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.G14 5 Exhibit g(14) Form of JOINT TRADING ACCOUNT CUSTODY AGREEMENT Between THE BANK OF NEW YORK and FIDELITY FUNDS Dated as of: _________ Exhibit g(14) 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 g(14) 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 g(14) 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: "(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.G15 6 Exhibit g(15) 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 g(15) 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.G16 7 Exhibit g(16) 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 G(16) 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 g(16) 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:
OUNTRY 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 g(16) 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.J1 8 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. 66 to the Registration Statement on Form N-1A of Fidelity Select Portfolios, of our report dated April 19, 1999 on the financial statements and financial highlights included in the February 28, 1999 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/PricewaterhouseCoopers LLP PricewaterhouseCoopers LLP Boston, Massachusetts April 26, 1999 EX-27.01 9
6 0000320351 Fidelity Select Portfolios 1 Select-Energy 1,000 YEAR FEB-28-1999 FEB-28-1999 134,053 119,996 1,064 0 0 121,060 123 0 933 1,056 0 145,525 7,396 6,936 826 0 (12,290) 0 (14,057) 120,004 2,451 501 0 1,991 961 (12,098) (22,109) (33,246) 0 119 2,921 0 5,996 5,669 133 (27,019) 431 14,279 0 0 825 0 2,047 140,540 21.200 .130 (4.710) .020 .400 0 16.230 146 0 0 EX-27.03 10
6 0000320351 Fidelity Select Portfolios 3 Select-Technology 1,000 YEAR FEB-28-1999 FEB-28-1999 1,166,766 1,370,162 150,288 155 0 1,520,605 94,033 0 59,424 153,457 0 1,006,590 16,532 13,023 0 0 157,162 0 203,396 1,367,148 1,000 3,972 0 9,070 (4,098) 215,486 122,794 334,182 0 0 0 0 14,223 10,714 0 675,223 0 (32,342) 0 (29,871) 4,516 0 9,408 758,647 53.130 (.340) 29.790 0 0 0 82.700 124 0 0 EX-27.04 11
6 0000320351 Fidelity Select Portfolios 4 Select-Health Care 1,000 YEAR FEB-28-1999 FEB-28-1999 2,224,425 3,155,663 12,889 0 0 3,168,552 0 0 22,727 22,727 0 2,136,274 22,861 19,536 1,027 0 77,283 0 931,241 3,145,825 19,173 10,666 0 26,361 3,478 141,017 456,695 601,190 0 3,783 121,804 0 13,702 11,362 986 921,805 2,734 99,735 0 0 14,851 0 26,967 2,518,171 113.840 .170 29.850 .190 6.170 0 137.600 107 0 0 EX-27.05 12
6 0000320351 Fidelity Select Portfolios 5 Select-Utilities Growth 1,000 YEAR FEB-28-1999 FEB-28-1999 408,429 510,884 3,924 0 0 514,808 1,572 0 5,395 6,967 0 355,427 8,247 7,513 1,646 0 48,313 0 102,455 507,841 6,570 1,295 0 4,731 3,134 98,328 19,578 121,040 0 1,845 58,304 0 5,410 5,701 1,025 105,914 677 14,326 0 0 2,411 0 4,836 408,138 53.500 .440 15.770 .250 7.930 0 61.580 118 0 0 EX-27.06 13
6 0000320351 Fidelity Select Portfolios 6 Select-Financial Services 1,000 YEAR FEB-28-1999 FEB-28-1999 412,322 550,324 2,038 0 0 552,362 0 0 5,362 5,362 0 388,432 5,425 5,857 3,680 0 16,887 0 138,001 547,000 8,664 2,337 0 7,395 3,606 21,785 9,159 34,550 0 1,163 66,118 0 3,952 5,043 659 (57,908) 1,379 72,514 0 0 3,668 0 7,501 624,849 103.280 .560 7.880 .190 10.810 0 100.820 120 0 0 EX-27.07 14
6 0000320351 Fidelity Select Portfolios 7 Select-Leisure 1,000 YEAR FEB-28-1999 FEB-28-1999 244,115 344,931 2,534 0 0 347,465 0 0 1,326 1,326 0 231,932 4,250 4,128 0 0 13,391 0 100,816 346,139 1,278 1,179 0 3,629 (1,172) 22,624 65,006 86,458 0 0 14,475 0 4,109 4,198 211 88,941 0 11,755 0 0 1,721 0 3,684 292,173 62.300 (.270) 22.780 0 3.440 0 81.440 126 0 0 EX-27.08 15
6 0000320351 Fidelity Select Portfolios 8 Select-Defense and Aerospace 1,000 YEAR FEB-28-1999 FEB-28-1999 25,672 28,101 1,051 0 0 29,152 372 0 283 655 0 23,290 842 2,710 0 0 2,778 0 2,429 28,497 305 172 0 758 (281) 3,587 (8,328) (5,022) 0 0 0 0 1,280 3,148 0 (73,308) 0 6,181 0 0 312 0 789 53,461 37.570 (.190) (3.610) 0 0 0 33.850 148 0 0 EX-27.09 16
6 0000320351 Fidelity Select Portfolios 9 Select-Brokerage and Investment Management 1,000 YEAR FEB-28-1999 FEB-28-1999 376,991 483,138 6,653 0 0 489,791 2,451 0 4,815 7,266 0 364,482 11,724 16,996 1,842 0 10,052 0 106,149 482,525 8,442 2,455 0 9,017 1,880 10,869 (42,209) (29,460) 0 202 10,471 0 21,246 26,767 249 (193,542) 676 14,435 0 0 4,268 2 9,159 728,916 39.780 .100 1.720 .010 .520 0 41.160 126 0 0 EX-27.10 17
6 0000320351 Fidelity Select Portfolios 10 Select-Chemicals 1,000 YEAR FEB-28-1999 FEB-28-1999 33,647 32,023 130 0 0 32,153 4 0 287 291 0 34,103 1,024 1,511 160 0 (776) 0 (1,625) 31,862 775 149 0 716 208 2,558 (15,018) (12,252) 0 52 4,743 0 504 1,123 132 (37,488) 0 4,697 0 0 277 0 748 47,231 45.900 .170 (10.770) .050 4.200 0 31.100 158 0 0 EX-27.11 18
6 0000320351 Fidelity Select Portfolios 11 Select-Computer 1,000 YEAR FEB-28-1999 FEB-28-1999 1,607,966 1,976,973 87,796 1 0 2,064,770 205,491 0 27,844 233,335 0 1,363,113 26,786 19,119 0 0 99,314 0 369,008 1,831,435 1,208 5,691 0 12,370 (5,471) 193,034 272,431 459,994 0 0 0 0 33,083 25,416 0 1,045,970 0 (38,789) 0 (34,413) 6,013 0 12,585 1,008,602 41.080 (.290) 27.390 0 0 0 68.370 125 0 0 EX-27.12 19
6 0000320351 Fidelity Select Portfolios 12 Select-Electronics 1,000 YEAR FEB-28-1999 FEB-28-1999 2,259,934 2,950,224 50,690 0 0 3,000,914 69,896 0 45,470 115,366 0 2,324,616 60,950 76,270 0 0 (129,350) 0 690,282 2,885,548 2,817 9,021 0 25,928 (14,090) 220,497 431,151 637,558 0 0 0 0 36,528 51,847 0 216,798 0 (155,399) 0 (145,162) 13,376 0 26,625 2,259,378 34.990 (.230) 12.530 0 0 0 47.340 118 0 0 EX-27.13 20
6 0000320351 Fidelity Select Portfolios 13 Select-Food and Agriculture 1,000 YEAR FEB-28-1999 FEB-28-1999 172,395 206,555 484 0 0 207,039 0 0 1,032 1,032 0 163,092 4,391 5,133 490 0 8,265 0 34,160 206,007 3,016 930 0 2,926 1,020 20,673 (4,236) 17,457 0 739 25,616 0 1,685 2,964 537 (44,560) 368 18,984 0 0 1,335 0 2,989 227,386 48.810 .210 3.500 .160 5.470 0 46.920 131 0 0 EX-27.14 21
6 0000320351 Fidelity Select Portfolios 14 Select-Software and Computer Services 1,000 YEAR FEB-28-1999 FEB-28-1999 477,376 699,950 6,810 0 0 706,760 0 0 15,908 15,908 0 439,147 12,101 11,373 0 0 29,131 0 222,574 690,852 533 2,025 0 7,267 (4,709) 46,870 110,444 152,605 0 0 15,509 0 10,600 10,187 315 187,485 0 8,019 0 0 3,378 0 7,309 572,634 44.260 (.390) 14.460 0 1.320 0 57.090 128 0 0 EX-27.15 22
6 0000320351 Fidelity Select Portfolios 15 Select-Telecommunication 1,000 YEAR FEB-28-1999 FEB-28-1999 631,043 817,582 57,647 1,243 0 876,472 42,383 0 9,914 52,297 0 613,533 13,326 12,057 0 0 24,099 0 186,543 824,175 4,052 4,827 0 9,753 (874) 45,835 85,597 130,558 0 0 46,023 0 15,273 14,818 814 180,726 0 38,929 0 0 4,616 0 9,943 783,072 53.370 (.060) 11.430 0 2.960 0 61.850 127 0 0 EX-27.16 23
6 0000320351 Fidelity Select Portfolios 16 Select-Money Market 1,000 YEAR FEB-28-1999 FEB-28-1999 1,096,706 1,096,706 64,142 47 0 1,160,895 9,998 0 24,723 34,721 0 1,126,174 1,126,107 584,907 0 0 0 0 0 1,126,174 0 52,463 0 4,694 47,769 55 0 47,824 0 47,769 0 0 6,779,152 6,280,934 42,982 541,255 0 (6) 0 0 1,854 0 4,704 950,014 1.000 .050 0 .050 0 0 1.000 50 0 0 EX-27.17 24
6 0000320351 Fidelity Select Portfolios 17 Select-Air Transportation 1,000 YEAR FEB-28-1999 FEB-28-1999 59,568 66,783 3,145 318 0 70,246 3,004 0 1,293 4,297 0 49,214 2,375 6,745 0 0 9,519 0 7,216 65,949 379 373 0 1,247 (495) 10,294 (7,870) 1,929 0 0 1,287 0 8,676 13,091 45 (115,236) 0 4,117 0 0 573 0 1,323 98,237 26.860 (.140) 1.060 0 .210 0 27.760 135 0 0 EX-27.18 25
6 0000320351 Fidelity Select Portfolios 18 Select-Gold 1,000 YEAR FEB-28-1999 FEB-28-1999 224,109 183,446 6,058 0 0 189,504 3,131 0 6,754 9,885 0 298,497 14,045 14,477 (36) 0 (78,177) 0 (40,665) 179,619 1,663 289 0 3,176 (1,224) (32,009) (3,278) (36,511) 0 0 0 0 29,232 29,664 0 (40,049) (2,671) (45,235) 0 0 1,216 6 3,241 206,759 15.170 (.080) (2.430) 0 0 0 12.790 157 0 0 EX-27.19 26
6 0000320351 Fidelity Select Portfolios 19 Select-Biotechnology 1,000 YEAR FEB-28-1999 FEB-28-1999 600,734 786,173 4,003 127 0 790,303 10,417 0 38,356 48,773 0 553,672 17,934 16,786 0 0 2,418 0 185,440 741,530 1,105 2,056 0 7,489 (4,328) 2,586 152,855 151,113 0 0 33,972 0 9,106 8,928 970 161,988 1 66,886 0 0 3,390 0 7,679 574,035 34.520 (.260) 9.150 0 2.090 0 41.350 134 0 0 EX-27.20 27
6 0000320351 Fidelity Select Portfolios 20 Select Energy Services 1,000 YEAR FEB-28-1999 FEB-28-1999 588,686 367,723 4,031 0 0 371,754 2,378 0 2,480 4,858 0 774,493 28,022 32,795 0 0 (186,634) 0 (220,963) 366,896 3,892 1,782 0 8,842 (3,168) (185,190) (243,967) (432,325) 0 0 54,767 0 53,434 60,037 1,830 (552,105) 0 127,991 0 0 3,827 0 9,059 653,141 28.020 (.100) (13.260) 0 1.710 0 13.090 139 0 0 EX-27.22 28
6 0000320351 Fidelity Select Portfolios 22 Select-Insurance 1,000 YEAR FEB-28-1999 FEB-28-1999 67,915 83,221 256 0 0 83,477 0 0 598 598 0 56,985 1,967 2,973 0 0 10,588 0 15,306 82,879 1,097 235 0 1,438 (106) 13,199 (4,564) 8,529 0 0 11,641 0 1,540 2,821 275 (42,271) 27 18,043 0 0 645 0 1,466 110,133 42.100 (.040) 4.010 0 3.980 0 42.140 133 0 0 EX-27.23 29
6 0000320351 Fidelity Select Portfolios 23 Select-Retailing 1,000 YEAR FEB-28-1999 FEB-28-1999 248,016 348,642 2,509 0 0 351,151 2,358 0 11,280 13,638 0 239,804 5,000 3,854 0 0 (2,917) 0 100,626 337,513 1,053 981 0 3,455 (1,421) 382 79,277 78,238 0 0 3,473 0 13,692 12,611 65 144,652 0 2,630 0 0 1,658 37 3,536 282,236 50.040 (.280) 18.270 0 .690 0 67.500 125 0 0 EX-27.24 30
6 0000320351 Fidelity Select Portfolios 24 Select-Home Finance 1,000 YEAR FEB-28-1999 FEB-28-1999 653,944 746,131 2,544 0 0 748,675 1,355 0 6,880 8,235 0 620,230 17,590 31,269 7,801 0 20,221 0 92,188 740,440 21,827 1,839 0 15,940 7,726 22,583 (316,657) (286,348) 0 2,223 43,930 0 13,209 27,681 793 (928,170) 4,200 79,037 0 0 7,896 10 16,081 1,350,224 53.360 .280 (10.160) .070 1.380 0 42.090 119 0 0 EX-27.26 31
6 0000320351 Fidelity Select Portfolios 26 Select-Automotive 1,000 YEAR FEB-28-1999 FEB-28-1999 65,885 64,760 159 0 0 64,919 0 0 378 378 0 70,211 2,773 1,181 47 0 (4,593) 0 (1,124) 64,541 701 225 0 857 69 (4,430) (3,785) (8,146) 0 41 2,674 0 3,661 2,167 98 32,052 53 7,077 0 0 357 0 877 60,575 27.500 .030 (2.090) .010 2.170 0 23.280 145 0 0 EX-27.27 32
6 0000320351 Fidelity Select Portfolios 27 Select-Multimedia 1,000 YEAR FEB-28-1999 FEB-28-1999 116,600 159,854 713 0 0 160,567 0 0 837 837 0 113,715 3,704 3,439 (17) 0 2,779 0 43,253 159,730 553 497 0 1,731 (681) 3,497 32,314 35,130 0 0 7,954 0 4,293 4,259 231 44,245 (2) 9,965 0 0 768 0 1,762 130,377 33.580 (.190) 11.850 0 2.190 0 43.130 135 0 0 EX-27.28 33
6 0000320351 Fidelity Select Portfolios 28 Select-Industrial Equipment 1,000 YEAR FEB-28-1999 FEB-28-1999 27,131 33,264 67 0 0 33,331 363 0 1,395 1,758 0 23,290 1,251 1,946 0 0 2,150 0 6,133 31,573 366 164 0 599 (69) 3,586 (3,321) 196 0 0 1,273 0 771 1,515 49 (18,855) 0 3,070 0 0 250 0 606 42,521 25.910 (.040) .250 0 .920 0 25.230 143 0 0 EX-27.30 34
6 0000320351 Fidelity Select Portfolios 30 Select-Medical Delivery 1,000 YEAR FEB-28-1999 FEB-28-1999 75,358 74,746 3,007 0 0 77,753 0 0 911 911 0 107,722 4,028 5,493 0 0 (30,269) 0 (611) 76,842 933 814 0 2,137 (390) (29,445) (24,559) (54,394) 0 0 8,213 0 6,116 7,863 283 (78,700) 0 12,855 0 0 909 0 2,182 155,480 28.320 (.060) (7.880) 0 1.340 0 19.080 140 0 0 EX-27.31 35
6 0000320351 Fidelity Select Portfolios 31 Select-Construction and Housing 1,000 YEAR FEB-28-1999 FEB-28-1999 43,909 49,490 8,560 0 0 58,050 0 0 6,398 6,398 0 45,399 2,065 2,243 0 0 673 0 5,580 51,652 639 308 0 1,142 (195) 1,244 (58) 991 0 0 145 0 5,396 5,579 5 (5,832) 0 1,693 0 0 490 5 1,188 83,128 25.630 (.060) (.530) 0 .060 0 25.020 143 0 0 EX-27.32 36
6 0000320351 Fidelity Select Portfolios 32 Select-Industrial Materials 1,000 YEAR FEB-28-1999 FEB-28-1999 10,996 11,195 31 0 0 11,226 0 0 64 64 0 13,014 549 903 0 0 (2,051) 0 199 11,162 205 40 0 329 (84) (1,209) (1,993) (3,286) 0 0 0 0 440 794 0 (11,420) 0 833 0 0 94 0 334 16,095 25.000 (.120) (4.600) 0 0 0 20.320 207 0 0 EX-27.33 37
6 0000320351 Fidelity Select Portfolios 33 Select-Paper and Forest Products 1,000 YEAR FEB-28-1999 FEB-28-1999 9,818 9,819 1,062 0 0 10,881 563 0 71 634 0 13,755 555 1,385 4 0 (3,513) 0 1 10,247 249 63 0 332 (20) (2,776) (1,268) (4,064) 0 0 318 0 1,074 1,917 13 (21,138) 31 936 0 0 88 0 345 14,998 22.660 (.030) (3.870) 0 .440 0 18.450 230 0 0 EX-27.34 38
6 0000320351 Fidelity Select Portfolios 34 Select-Regional Banks 1,000 YEAR FEB-28-1999 FEB-28-1999 615,803 908,934 23,209 0 0 932,143 0 0 6,314 6,314 0 549,096 22,272 31,008 5,986 0 77,616 0 293,131 925,829 21,687 4,139 0 14,475 11,351 135,493 (123,703) 23,141 0 7,939 74,513 0 11,696 22,324 1,892 (413,067) 3,806 26,512 0 0 7,314 0 14,615 1,247,440 43.180 .390 .910 .280 2.660 0 41.570 117 0 0 EX-27.36 39
6 0000320351 Fidelity Select Portfolios 36 Select-Transportation 1,000 YEAR FEB-28-1999 FEB-28-1999 18,601 19,861 1,040 106 0 21,007 1,051 0 101 1,152 0 13,839 793 2,269 0 0 4,755 0 1,261 19,855 215 83 0 463 (165) 6,235 (6,047) 23 0 0 2,602 0 1,117 2,690 98 (44,427) 0 5,403 0 0 142 0 477 24,371 28.340 (.180) (.580) 0 2.640 0 25.040 196 0 0 EX-27.37 40
6 0000320351 Fidelity Select Portfolios 37 Select-Environmental 1,000 YEAR FEB-28-1999 FEB-28-1999 18,320 15,610 7 0 0 15,617 0 0 83 83 0 19,113 1,217 1,530 0 0 (870) 0 (2,709) 15,534 120 73 0 450 (257) (474) (4,375) (5,106) 0 0 40 0 712 1,029 3 (9,650) 0 (355) 0 0 122 0 459 20,811 16.460 (.180) (3.500) 0 .030 0 12.770 220 0 0 EX-27.38 41
6 0000320351 Fidelity Select Portfolios 38 Select-Consumer Products 1,000 YEAR FEB-28-1999 FEB-28-1999 64,837 81,492 1,630 0 0 83,122 640 0 238 878 0 63,406 2,585 2,642 0 0 2,183 0 16,655 82,244 659 250 0 1,027 (118) 2,850 10,439 13,171 0 0 2,388 0 2,390 2,529 82 10,092 0 3,036 0 0 458 0 1,040 77,898 27.310 (.040) 5.410 0 .900 0 31.810 134 0 0 EX-27.39 42
6 0000320351 Fidelity Select Portfolios 39 Select-Developing Communication 1,000 YEAR FEB-28-1999 FEB-28-1999 479,273 603,230 19,457 0 0 622,687 7,782 0 2,844 10,626 0 455,290 18,704 11,837 0 0 32,813 0 123,958 612,061 518 1,648 0 4,163 (1,997) 53,731 97,391 149,125 0 0 820 0 21,247 14,419 39 373,705 0 (763) 0 0 1,855 0 4,294 310,527 20.140 (.160) 12.720 0 .070 0 32.720 138 0 0 EX-27.40 43
6 0000320351 Fidelity Select Portfolios 40 Select-Natural Gas 1,000 YEAR FEB-28-1999 FEB-28-1999 38,888 36,872 97 0 0 36,969 0 0 141 141 0 43,960 3,478 4,529 320 0 (5,436) 0 (2,016) 36,828 1,115 147 0 783 479 (5,303) (4,577) (9,401) 0 376 0 0 3,846 4,929 32 (23,037) 298 (209) 0 (211) 302 1 809 51,496 13.220 .120 (2.680) .100 0 0 10.590 157 0 0 EX-27.41 44
6 0000320351 Fidelity Select Portfolios 41 Select-Cyclical Industries 1,000 YEAR FEB-28-1999 FEB-28-1999 2,693 2,955 156 0 0 3,111 4 0 20 24 0 2,807 271 329 0 0 18 0 262 3,087 41 12 0 94 (41) 22 (208) (227) 0 0 30 0 265 325 2 (878) 0 151 0 0 22 0 150 3,789 12.070 (.130) (.490) 0 .090 0 11.390 250 0 0 EX-27.42 45
6 0000320351 Fidelity Select Portfolios 42 Select-Natural Resources 1,000 YEAR FEB-28-1999 FEB-28-1999 5,933 5,189 32 0 0 5,221 9 0 78 87 0 7,111 651 719 0 0 (1,233) 0 (744) 5,134 103 23 0 161 (35) (1,206) (511) (1,752) 0 0 0 0 655 724 0 (2,386) (1) 84 0 0 38 0 209 6,529 10.460 (.050) (2.540) 0 0 0 7.890 250 0 0 EX-27.43 46
6 0000320351 Fidelity Select Portfolios 43 Select-Business Sevices and Outsourcing 1,000 YEAR FEB-28-1999 FEB-28-1999 56,856 64,626 366 0 0 64,992 310 0 559 869 0 55,175 4,726 1,461 0 0 1,178 0 7,770 64,123 181 222 0 908 (505) 2,393 7,144 9,032 0 0 725 0 9,724 6,516 57 48,207 0 15 0 0 327 0 920 55,379 10.890 (.110) 2.920 0 .160 0 13.570 166 0 0 EX-27.44 47
6 0000320351 Fidelity Select Portfolios 44 Select-Medical Equipment & Systems 1,000 YEAR FEB-28-1999 FEB-28-1999 28,252 29,845 318 0 0 30,163 1,492 0 77 1,569 0 25,878 2,364 0 0 0 1,122 0 1,594 28,594 78 80 0 322 (164) 1,286 1,594 2,716 0 0 0 0 4,139 1,775 0 28,594 0 0 0 0 80 0 323 16,148 10.000 (.110) 2.180 0 0 0 12.100 239 0 0 EX-27.61 48
6 0000320351 Fidelity Select Portfolios 2 Select-Precious Metals 1,000 YEAR FEB-28-1999 FEB-28-1999 150,465 126,265 1,304 0 0 127,569 3,397 0 733 4,130 0 238,968 13,475 16,149 (37) 0 (91,282) 0 (24,210) 123,439 2,262 205 0 2,609 (142) (21,007) 3,724 (17,425) 0 0 0 0 42,224 44,898 0 (42,521) (1,340) (70,219) 0 0 883 4 2,664 150,091 10.280 (.010) (1.270) 0 0 0 9.160 178 0 0 -----END PRIVACY-ENHANCED MESSAGE-----