-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, frJTGCtZqtfR6MAaaz/TjR3kWtRFsXyOiSnnrRHQydbbOYRpRT+Dss+FU3K/3lLE bxOvmwf1oMh9dhJObVxwMQ== 0000035348-94-000002.txt : 19940308 0000035348-94-000002.hdr.sgml : 19940308 ACCESSION NUMBER: 0000035348-94-000002 CONFORMED SUBMISSION TYPE: N-30B-2 PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19931231 FILED AS OF DATE: 19940307 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIDELITY HASTINGS STREET TRUST CENTRAL INDEX KEY: 0000035348 STANDARD INDUSTRIAL CLASSIFICATION: 0000 IRS NUMBER: 046026953 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30B-2 SEC ACT: 40 SEC FILE NUMBER: 811-00215 FILM NUMBER: 94514860 BUSINESS ADDRESS: STREET 1: 82 DEVONSHIRE ST CITY: BOSTON STATE: MA ZIP: 02109 BUSINESS PHONE: 6173300814 MAIL ADDRESS: STREET 1: 82 DEVONSHIRE STREET STREET 2: MAILZONE ZZ2 CITY: BOSTON STATE: MA ZIP: 02109 FORMER COMPANY: FORMER CONFORMED NAME: FIDELITY FUND DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: FIDELITY FUND INC DATE OF NAME CHANGE: 19851205 N-30B-2 1 (2_FIDELITY_LOGOS) FIDELITY FIFTY SEMIANNUAL REPORT DECEMBER 31, 1993 CONTENTS PRESIDENT'S MESSAGE 3 Ned Johnson on minimizing taxes. PERFORMANCE 4 How the fund has done over time. FUND TALK 5 The manager's review of fund performance, strategy, and outlook. INVESTMENT SUMMARY 9 A summary of the fund's investments. INVESTMENTS 10 A complete list of the fund's investments with their market value. FINANCIAL STATEMENTS 15 Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. NOTES 19 Footnotes to the financial statements. THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR THE GENERAL INFORMATION OF THE SHAREHOLDERS OF THE FUND. THIS REPORT IS NOT AUTHORIZED FOR DISTRIBUTION TO PROSPECTIVE INVESTORS IN THE FUND UNLESS PRECEDED OR ACCOMPANIED BY AN EFFECTIVE PROSPECTUS. NEITHER THE FUND NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK, AND FUND SHARES ARE NOT BACKED OR GUARANTEED BY ANY BANK OR INSURED BY THE FDIC. PRESIDENT'S MESSAGE DEAR SHAREHOLDER: Once the new year begins, many people start reviewing their finances and calculating their tax bills. No one wants to pay more taxes than they have to. But a recent survey of 500 U.S. households, conducted by Fidelity and Yankelovich Partners, showed that few people have taken steps to reduce their taxes under the new legislation. Many were not even aware that the new tax laws were retroactive to January 1993. Whether or not you're someone whose tax bill will increase as a result of these changes, it may make sense to consider ways to keep more of what you earn. First, if your employer offers a 401(k) or 403(b) retirement savings plan, consider enrolling. These plans are set up so you can make regular contributions - before taxes - to a retirement savings plan. They offer a disciplined savings strategy, the ability to accumulate earnings tax-deferred, and immediate tax savings. For example, if you earn $40,000 a year and contribute 7% of your salary to your 401(k) plan, your annual contribution is $2,800. That reduces your taxable income to $37,200 and, if you're in the 28% tax bracket, saves you $784 in federal taxes. In addition, you pay no taxes on any earnings until withdrawal. It may be a good idea to contact your benefits office as soon as possible to find out when you can enroll or increase your contribution. Most employers allow employees to make changes only a few times each year. Second, consider an IRA. Many people are eligible to make an IRA contribution (up to $2,000) that is fully tax deductible. That includes people who are not covered by company pension plans, or those within certain income brackets. Even if you don't qualify for a fully deductible contribution, any IRA earnings will grow tax-deferred until withdrawal. Third, consider tax-free investments like municipal bonds and municipal bond funds. Often these can provide higher after-tax yields than comparable taxable investments. For example, if you're in the new 36% federal income tax bracket and invest $10,000 in a taxable investment yielding 7%, you'll pay $252 in federal taxes and receive $448 in income. That same $10,000 invested in a tax-free bond fund yielding 5.5% would allow you to keep $550 in income. These are three investment strategies that could help lower your tax bill in 1994. If you're interested in learning more, please call us at 1-800-544-8888 or visit a Fidelity Investor Center. Wishing you a prosperous new year, Edward C. Johnson 3d, Chairman PERFORMANCE: THE BOTTOM LINE There are several ways to evaluate a fund's historical performance. You can look at the total percentage change in value, the average annual percentage change, or the growth of a hypothetical $10,000 investment. Each performance figure includes changes in a fund's share price, plus reinvestment of any dividends (or income) and capital gains (the profits the fund earns when it sells stocks that have grown in value). CUMULATIVE TOTAL RETURNS PERIOD ENDED DECEMBER 31, 1993 LIFE OF FUND Fidelity Fifty 5.90% Fidelity Fifty (including 3% sales charge) 2.72% CUMULATIVE TOTAL RETURNS reflect the fund's actual performance over a set period - in this case, since the fund began on September 17, 1993. For example, if you had invested $1,000 in a fund that had a 5% return over the past year, you would have $1,050. Once the fund has a longer record, you may want to compare it to the Standard & Poor's 500 Composite Stock Price Index - a common proxy for the U.S. stock market. You may also want to look at the performance of the average capital appreciation fund, as tracked by Lipper Analytical Services. Both benchmarks include reinvested dividends and capital gains, if any. They will appear in the fund's next report six months from now. AVERAGE ANNUAL RETURNS and the growth of a hypothetical $10,000 INVESTMENT in the fund will also appear in the next report. UNDERSTANDING PERFORMANCE How a fund did yesterday is no guarantee of how it will do tomorrow. The stock market, for example, has a history of growth in the long run and volatility in the short run. In turn, the share price and return of a fund that invests in stocks will vary. That means if you sell your shares during a market downturn, you might lose money. But if you can ride out the market's ups and downs, you may have a gain. (checkmark) FUND TALK: THE MANAGER'S OVERVIEW MARKET RECAP Low inflation, falling interest rates and a gradually improving economy boosted U.S. stocks during the 12 months ended December 31, 1993. The Standard & Poor's 500 stock index rose 10.08%, in line with the market's long-term average annual return. Some tobacco, drug and brand-name consumer products stocks began to pick up by year end, but had weak returns for the year, overall. Those losses were offset by impressive gains in other sectors, including technology, although semiconductors gave back part of their gains in the fall. Other market leaders were finance, notably securities brokers; economically-sensitive sectors like autos and steel; entertainment; heavy machinery; and precious metals. Communications stocks soared as traditional telephone utilities, cellular companies, and entertainment firms scrambled to form strategic alliances. The NASDAQ Composite Index - which tracks over-the-counter stocks - rose 14.75% for the year, but was outpaced by the Dow Jones Industrial Average - - an index of 30 blue-chip stocks - - which rose 17.04%. In mid-November, the Dow closed above 3700 for the first time and finished the year at 3754. Most international markets easily outpaced U.S. returns. The Morgan Stanley EAFE (Europe, Australia, Far East) index rose 32.56%, while the Morgan Stanley Emerging Markets Index was up 73.21% for the year. An interview with Scott Stewart, Portfolio Manager of Fidelity Fifty Q. SCOTT, HOW HAS THE FUND PERFORMED? A. The fund broke out of the gate pretty quickly, returning 5.90% from its start date on September 17, 1993 to December 31, 1993. For the fourth quarter - September 30 through year end - it returned 3.01%. By comparison, the average capital appreciation fund tracked by Lipper Analytical Services returned 1.91% for the same period. I'm encouraged by the strong start, but I would caution against expecting the fund to maintain the same pace in '94. Q. WHAT SETS FIDELITY FIFTY APART FROM OTHER CAPITAL APPRECIATION FUNDS? A. The biggest and most obvious difference is its limited number of stocks - - generally 50 to 60 companies. In that way, it's designed to look like the personal portfolio of an active investor. The fund also differs from many of its peers because of my extensive use of quantitative techniques. When choosing a stock, I first use a computer program to screen more than 7,000 names followed by Fidelity's research department, identifying the 75 to 100 that appear most attractive. At that point, I do both fundamental analysis - - a close-up "human" examination of the company's business prospects - and more quantitative research to help me narrow the list. I also use computer programs to help me systematically analyze elements of a company's make-up that might make its stock risky, critical information for a fund that invests in so few stocks. A stock's estimated level of risk helps me determine how heavily to invest. I don't play hunches and I usually avoid overriding the conclusions of the risk analysis. Q. SO WHAT DO YOU, AND THE COMPUTER, LOOK FOR IN A POTENTIAL STOCK? A. I look for companies that seem to be undergoing a change for the better in their business prospects. Companies that, for one reason or another, now have a more positive outlook, usually in terms of their balance sheets or earnings prospects. Sometimes it's a company that has done poorly and whose stock has dropped in price, but the research suddenly shows it has improved earnings potential. Other times I invest in companies that have been doing well for a while, and whose earnings forecasts are now even better. I build the portfolio using a "bottom up" approach. That simply means I focus on the merits of individual companies, rather than on industry sectors. Turnover in this fund will be high. If a company's business prospects suddenly look less attractive relative to its stock price, I'll sell it and find a replacement. With only 50 stocks, I can't afford to stick with a laggard very long. Q. WHAT SPECIFIC BETS HAVE PAID OFF SO FAR? A. There were several. Amgen was the fund's second largest investment at year end. The company has several successful drugs on the market, including one that's increasingly used in chemotherapy to treat cancer patients. Amgen's stock rose 20% from the end of September to the end of December. Health care was the fund's largest sector investment on December 31, at 13.3%. As a whole, the group had an off year in '93, due mainly to uncertainty over health-care reform. But Amgen is a good example of the type of health-care company the fund sought out; those that now have attractive products on the market or will soon have new products coming out. At 11.3%, media and leisure was the fund's second biggest sector at year end. Some media companies have improved their cost structures and may soon see better revenues. Newspaper company Times-Mirror is an example. The company has strong assets, and should see increasing revenues as advertising picks up again. The stock is up roughly 20% since the fund bought it in September. Q. TECHNOLOGY AND RETAIL WERE AMONG THE FUND'S OTHER LARGE INDUSTRY GROUPS OVER THE PAST FEW MONTHS. WHAT OPPORTUNITIES DID YOU FIND IN THESE SECTORS? A. I had to be careful picking technology stocks when the fund started in September. By that time, investors had bid up prices to levels that were quite high; and tech stocks tend to be very volatile. I think the fund's most interesting story in this sector has been IBM. We hadn't heard much about IBM since its steep plunge from its glory days on Wall Street. But in September, I felt the supply of mainframe systems like IBM produces was decreasing while demand seemed to be increasing. The company was cutting costs and looked like it was becoming less bureaucratic. Most importantly, the company appeared to be underestimating its own earnings prospects. The stock was the fund's top investment for a while, and rose more than 25% from the end of September to the end of December. Q. WHAT ABOUT RETAIL? A. Most retail stocks had a tough year but some have rebounded lately as consumer confidence has picked up. The fund's most successful retail pick was the Gap. Interestingly, every Friday my group here at Fidelity has "casual day" when we're allowed to leave our dress clothes at home. Many of us have talked about our need for more "business" casual clothes, like we can find at stores like the Gap. I think this example is part of a larger trend that fits in well with the Gap's story. I bought the stock when the fund began because I felt the Gap was well managed when retail stores were suffering. They watched their inventory levels and were poised to benefit when sales picked up, which they have. The bet paid off. The Gap's stock went from $29.50 per share at the end of September to $39.38 per share by the end of December. Q. WHAT WERE THE FUND'S LARGEST INVESTMENTS AT YEAR END? A. The fund's biggest investment on December 31 was Stanhome, a manufacturer of consumer products and business goods. Improving business prospects and a stock price that showed Stanhome was undervalued compared to its peer group made the company attractive. Stanhome's shipments of household goods are up and so is the stock: about 10% since the fund invested in it in early November. We've already discussed Amgen, the fund's second largest investment. Third was Cooper Tire, which I just bought in late December. The company should benefit as its competitors reduce their production of lower-priced tires. COR Therapeutics was next. The company has strong management and produces successful drugs for angina and angioplasty. I bought the stock in October, and it was up nearly 7% by year end. Enterra Corporation rounds out the top five. I was drawn in by rising demand for Enterra's tool rentals and pipeline equipment, along with the company's low stock price relative to its business prospects. The fund bought Enterra in November, and the stock rose roughly 5% through the end of December. Q. ANY DISAPPOINTMENTS SO FAR? A. The biggest was Fruit-of-the-Loom. Fall sales weren't as strong as I had expected. I sold the stock as the price began dropping, but it would have helped to get out earlier. As we've already discussed, poor performance from any one stock can have a significant effect on the entire fund. Q. WHAT'S YOUR OUTLOOK FOR THE FIRST SIX MONTHS OF 1994? A. There's no doubt market valuations are high by historical measures. And the market certainly could decline in the next six months if interest rates climb or corporate earnings begin to suffer. Lately, the fund has been leaning toward investing in smaller, more growth-oriented companies - those with accelerating earnings. As the economy picks up steam, I think the business prospects of these companies may tend to improve faster than those in the Standard & Poor's 500 index. My hope is, as a result, the fund will outperform the index. FUND FACTS GOAL: to increase the value of the fund's shares by investing in the stocks of 50-60 companies START DATE: September 17, 1993 SIZE: as of December 31, 1993, over $50 million MANAGER: Scott Stewart, since September 1993; manager, pension and institutional accounts, since 1987 (checkmark) SCOTT STEWART ON LIMITING RISK: "The fate of any one stock has a bigger effect on this fund than it would on a fund that holds hundreds of securities. That's why the fund plays by certain rules that aim to help keep risk in check. First, I try to make sure any given stock makes up no more than 3% of the fund's investments, and I'll further restrict stocks with risky prospects. Second, the fund will not be overweighted in any industry group by more than 10%. For example, at year end the health-care sector made up 7% of the stocks in the Standard & Poor's 500 index. That means the fund wouldn't have more than a 17% stake in health care. Third, I have liquidity requirements for stocks I buy for the fund. If a stock doesn't trade often enough, I won't invest in it. That helps ensure that I can sell a stock quickly if I have to." (bullet) The fund had a 17.1% stake in short-term investments on December 31. That may appear high, but was somewhat offset by the fund's 6% investment in S&P 500 futures contracts. These contracts allow the fund to participate in broad market moves while awaiting suitable opportunities to invest in individual companies. This also limits transaction costs incurred from managing the money coming in and out of the fund each day. INVESTMENT SUMMARY TOP TEN STOCKS AS OF DECEMBER 31, 1993 % OF FUND'S INVESTMENTS Stanhome, Inc. 2.5 Amgen, Inc. 2.4 Cooper Tire & Rubber Co. 2.2 COR Therapeutics, Inc. 2.2 Enterra Corp. 2.1 Chicago & North Western Holdings 2.1 Corp. AMR Corp. 2.0 Canadaigua Wine Co. Class A 2.0 CSX Corp. 2.0 International Business Machines Corp. 2.0 TOP FIVE INDUSTRIES AS OF DECEMBER 31, 1993 % OF FUND'S INVESTMENTS Health 13.3 Media & Leisure 11.3 Technology 10.8 Energy 8.0 Transportation 7.9 ASSET ALLOCATION AS OF DECEMBER 31, 1993 Row: 1, Col: 1, Value: 17.1 Row: 1, Col: 2, Value: 2.0 Row: 1, Col: 3, Value: 22.4 Row: 1, Col: 4, Value: 20.0 Row: 1, Col: 5, Value: 20.0 Row: 1, Col: 6, Value: 20.0 Stocks 82.4% U.S. Treasury obligations 0.5% Short-term investments 17.1% INVESTMENTS DECEMBER 31, 1993 (UNAUDITED) Showing Percentage of Total Value of Investment in Securities COMMON STOCKS - 82.4% SHARES VALUE (NOTE 1) BASIC INDUSTRIES - 4.3% CHEMICALS & PLASTICS - 4.3% Akzo NV sponsored ADR 15,400 $ 744,991 01019930 GEON 31,400 741,825 37246W10 Union Carbide Corp. 39,100 874,863 90558110 2,361,679 CONGLOMERATES - 1.5% United Technologies Corp. 13,000 806,000 91301710 CONSTRUCTION & REAL ESTATE - 3.2% BUILDING MATERIALS - 3.2% Masco Corp. 23,900 884,300 57459910 USG Corp. (a) 30,500 892,125 90329340 1,776,425 DURABLES - 4.5% AUTOS, TIRES, & ACCESSORIES - 4.5% Chrysler Corp. 14,500 772,125 17119610 Cooper Tire & Rubber Co. 48,500 1,212,500 21683110 Smith (A.O.) Corp. Class B 14,000 500,500 83186520 2,485,125 ENERGY - 8.0% ENERGY SERVICES - 5.2% BJ Services Co. (a) 50,400 970,200 05548210 Enterra Corp. (a) 56,400 1,156,200 29380510 Western Co. of North America (a) 57,700 742,888 95804340 2,869,288 INDEPENDENT POWER - 1.6% Thermo Electron Corp. 20,850 875,700 88355610 OIL & GAS - 1.2% Mobil Corp. 8,000 632,000 60705910 TOTAL ENERGY 4,376,988 COMMON STOCKS - CONTINUED SHARES VALUE (NOTE 1) FINANCE - 3.6% BANKS - 1.5% West One Bancorp 29,100 $ 829,350 95482810 INSURANCE - 1.6% St. Paul Companies, Inc. (The) 9,800 880,775 79286010 SAVINGS & LOANS - 0.5% Coast Savings Financial, Inc. (a) 18,700 266,475 19039M10 TOTAL FINANCE 1,976,600 HEALTH - 13.3% DRUGS & PHARMACEUTICALS - 6.9% Amgen, Inc. (a) 26,000 1,287,000 03116210 COR Therapeutics, Inc. (a) 78,300 1,184,288 21775310 Elan PLC ADR (a) 24,300 1,029,713 28413120 Liposome Co, Inc. (a) 33,000 297,000 53631110 3,798,001 MEDICAL EQUIPMENT & SUPPLIES - 4.9% Boston Scientific Corp. (a) 78,500 981,250 10113710 Johnson & Johnson 22,000 984,500 47816010 Medtronic, Inc. 8,600 706,275 58505510 2,672,025 MEDICAL FACILITIES MANAGEMENT - 1.5% United HealthCare Corp. 11,100 842,213 91058110 TOTAL HEALTH 7,312,239 INDUSTRIAL MACHINERY & EQUIPMENT - 1.7% Joy Technologies, Inc. Class A (a) 75,400 904,800 48120610 MEDIA & LEISURE - 11.3% BROADCASTING - 2.1% Home Shopping Network, Inc. 23,800 354,025 43735110 Time Warner, Inc. 17,500 774,375 88731510 1,128,400 LODGING & GAMING - 2.4% President Riverboat Casinos, Inc. (a) 15,200 334,400 74084810 Promus Companies, Inc. (a) 21,000 960,750 74342A10 1,295,150 COMMON STOCKS - CONTINUED SHARES VALUE (NOTE 1) MEDIA & LEISURE - CONTINUED PUBLISHING - 5.5% Gannett Co., Inc. 14,500 $ 830,125 36473010 Harcourt General, Inc. 11,300 409,625 41163G10 Meredith Corp. 26,200 1,048,000 58943310 Times Mirror Co., Series A 21,600 720,900 88736010 3,008,650 RESTAURANTS - 1.3% McDonald's Corp. 12,700 723,900 58013510 TOTAL MEDIA & LEISURE 6,156,100 NONDURABLES - 6.0% BEVERAGES - 2.0% Canadaigua Wine Co. Class A (a) 35,000 1,102,500 13721920 HOUSEHOLD PRODUCTS - 4.0% Premark International, Inc. 9,800 786,450 74045910 Stanhome, Inc. 40,700 1,378,713 85442510 2,165,163 TOTAL NONDURABLES 3,267,663 RETAIL & WHOLESALE - 3.1% APPAREL STORES - 3.1% Burlington Coat Factory Warehouse Corp. (a) 44,900 1,027,088 12157910 Gap, Inc. 16,700 657,563 36476010 1,684,651 TECHNOLOGY - 10.8% COMMUNICATIONS EQUIPMENT - 0.9% Cisco Systems, Inc. (a) 7,900 510,538 17275R10 COMPUTER SERVICES & SOFTWARE - 3.0% Equifax, Inc. 32,000 876,000 29442910 Structural Dynamics Research Corp. (a) 42,500 733,125 86355510 1,609,125 COMPUTERS & OFFICE EQUIPMENT - 5.7% Amdahl Corp. 124,000 744,000 02390510 International Business Machines Corp. 18,900 1,067,850 45920010 COMMON STOCKS - CONTINUED SHARES VALUE (NOTE 1) TECHNOLOGY - CONTINUED COMPUTERS & OFFICE EQUIPMENT - CONTINUED Sequent Computer Systems, Inc. (a) 55,600 $ 847,900 81733810 Silicon Graphics, Inc. (a) 19,000 470,250 82705610 3,130,000 ELECTRONICS - 1.2% Maxim Integrated Products, Inc. (a) 13,700 655,888 57772K10 TOTAL TECHNOLOGY 5,905,551 TRANSPORTATION - 7.9% AIR TRANSPORTATION - 3.9% AMR Corp. (a) 16,700 1,118,900 00176510 Comair Holdings, Inc. 35,000 800,625 19978910 UAL Corp. (a) 1,400 204,400 90254910 2,123,925 RAILROADS - 4.0% CSX Corp. 13,200 1,069,200 12640810 Chicago & North Western Holdings Corp. (a) 44,900 1,122,500 16715510 2,191,700 TOTAL TRANSPORTATION 4,315,625 UTILITIES - 3.2% ELECTRIC UTILITY - 1.6% Southern Co. 19,800 873,675 84258710 TELEPHONE SERVICES - 1.6% ALC Communications Corp. (a) 30,200 868,250 00157530 TOTAL UTILITIES 1,741,925 TOTAL COMMON STOCKS (Cost $43,134,267) 45,071,371 U.S. TREASURY OBLIGATIONS - 0.5% PRINCIPAL VALUE (NOTE 1) AMOUNT U.S. Treasury Bills, yields at date of purchase 2.98-3.10%, 2/10/94 (b) (Cost $ 249,204) $250,000 $ 249,204 912794H8 REPURCHASE AGREEMENTS - 17.1% MATURITY AMOUNT Investments in repurchase agreements, (U.S. Treasury obligations), in a joint trading account at 3.23% dated 12/31/93 due 1/3/94 $9,368,841 9,368,000 TOTAL INVESTMENT IN SECURITIES - 100% (Cost $52,751,471) $ 54,688,575 FUTURES CONTRACTS EXPIRATION UNDERLYING FACE UNREALIZED DATE AMOUNT AT VALUE GAIN/(LOSS) PURCHASED 14 S&P 500 Futures Contracts March 1994 $ 3,268,650 $ 6,635 THE VALUE OF FUTURES CONTRACTS PURCHASED AS A PERCENTAGE OF TOTAL INVESTMENT IN SECURITIES - 6.0% LEGEND 1. Non-income producing 2. Security pledged to cover margin requirements for futures contracts. At the period end, the value of securities pledged amounted to $249,204. INCOME TAX INFORMATION At December 31, 1993, the aggregate cost of investment securities for income tax purposes was $52,751,471. Net unrealized appreciation aggregated $1,937,104, of which $2,701,527 related to appreciated investment securities and $764,423 related to depreciated investment securities. FINANCIAL STATEMENTS STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1993 (UNAUDITED) ASSETS Investment in securities, at value (including repurchase $ 54,688,575 agreements of $9,368,000) (cost $52,751,471) (Notes 1 and 2) - See accompanying schedule Cash 561 Receivable for investments sold 3,124,317 Receivable for fund shares sold 1,182,125 Dividends receivable 48,479 TOTAL ASSETS 59,044,057 LIABILITIES Payable for investments purchased $ 2,890,704 Payable for fund shares redeemed 5,144,276 Accrued management fee 27,776 Payable for daily variation on futures contracts 19,110 Other payables and accrued expenses 61,111 TOTAL LIABILITIES 8,142,977 NET ASSETS $ 50,901,080 Net Assets consist of: Paid in capital $ 50,424,185 Distributions in excess of net investment income (103,673) Accumulated undistributed net realized gain (loss) on (1,363,171) investments Net unrealized appreciation (depreciation) on: Investment securities 1,937,104 Futures contracts 6,635 NET ASSETS, for 4,808,963 shares outstanding $ 50,901,080 NET ASSET VALUE and redemption price per share $10.58 ($50,901,080 (divided by) 4,808,963 shares) Maximum offering price per share (100/97 of $10.58) $10.91
STATEMENT OF OPERATIONS
SEPTEMBER 17, 1993 (COMMENCEMENT OF OPERATIONS) TO DECEMBER 31, 1993 (UNAUDITED) INVESTMENT INCOME $ 120,666 Dividends Interest 44,434 TOTAL INCOME 165,100 EXPENSES Management fee (Note 4) $ 64,359 Transfer agent fees (Note 4) 81,065 Accounting fees and expenses (Note 4) 13,197 Non-interested trustees' compensation 19 Custodian fees and expenses 5,399 Registration fees 48,448 Audit 6,220 Legal 10 Miscellaneous 120 TOTAL EXPENSES 218,837 NET INVESTMENT INCOME (LOSS) (53,737) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTES 1 AND 3) Net realized gain (loss) on: Investment securities (1,383,546) Futures contracts 20,375 (1,363,171) Change in net unrealized appreciation (depreciation) on: Investment securities 1,937,104 Futures contracts 6,635 1,943,739 NET GAIN (LOSS) 580,568 NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM $ 526,831 OPERATIONS
STATEMENT OF CHANGES IN NET ASSETS
SEPTEMBER 17, 1993 (COMMENCEMENT OF OPERATIONS) TO DECEMBER 31, 1993 (UNAUDITED) INCREASE (DECREASE) IN NET ASSETS Operations $ (53,737) Net investment income (loss) Net realized gain (loss) on investments (1,363,171) Change in net unrealized appreciation (depreciation) on 1,943,739 investments NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM 526,831 OPERATIONS Distributions to shareholders from net investment income (49,936) Share transactions 76,963,261 Net proceeds from sales of shares Reinvestment of distributions from net investment income 49,556 Cost of shares redeemed (26,588,632) Net increase (decrease) in net assets resulting from share transactions 50,424,185 TOTAL INCREASE (DECREASE) IN NET ASSETS 50,901,080 NET ASSETS Beginning of period - End of period (including distributions in excess of net investment $ 50,901,080 income of $103,673) OTHER INFORMATION Shares Sold 7,325,614 Issued in reinvestment of distributions from net investment income 4,653 Redeemed (2,521,304) Net increase (decrease) 4,808,963
FINANCIAL HIGHLIGHTS SEPTEMBER 17, 1993 (COMMENCEMENT OF OPERATIONS) TO DECEMBER 31, 1993 (UNAUDITED) SELECTED PER-SHARE DATA Net asset value, beginning of period $ 10.00 Income from Investment Operations Net investment income (.01) Net realized and unrealized gain (loss) on investments .60 Total from investment operations .59 Less Distributions From net investment income (.01) Net asset value, end of period $ 10.58 TOTAL RETURN (dagger) 5.90% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000 omitted) $ 50,901 Ratio of expenses to average net assets 2.10%* Ratio of net investment income to average net assets (.52)%* Portfolio turnover rate 433%* * ANNUALIZED (dagger) TOTAL RETURN DOES NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR A PERIOD OF LESS THAN ONE YEAR IS NOT ANNUALIZED. NOTES TO FINANCIAL STATEMENTS For the period ended December 31, 1993 (Unaudited) 1. SIGNIFICANT ACCOUNTING POLICIES. Fidelity Fifty (the fund) is a fund of Fidelity Hastings Street Trust (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The following summarizes the significant accounting policies of the fund: SECURITY VALUATION. Securities for which exchange quotations are readily available are valued at the last sale price, or if no sale price, at the closing bid price. Securities for which exchange quotations are not readily available (and in certain cases debt securities which trade on an exchange), are valued primarily using dealer-supplied valuations or at their fair value as determined in good faith under consistently applied procedures under the general supervision of the Board of Trustees. Short-term securities maturing within sixty days are valued at amortized cost or original cost plus accrued interest, both of which approximate current value. FOREIGN CURRENCY TRANSLATION. The accounting records of the fund are maintained in U.S. dollars. Investment securities, other assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the current exchange rate. Purchases and sales of securities, income receipts and expense payments are translated into U.S. dollars at the exchange rate on the dates of the transactions. It is not practical to identify the portion of each amount shown in the fund's Statement of Operations under the caption "Realized and Unrealized Gain (Loss) on Investments" that arises from changes in foreign currency exchange rates. Investment income includes net realized and unrealized currency gains and losses recognized between accrual and payment dates. INCOME TAXES. The fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code. By so qualifying, the fund will not be subject to income taxes to the extent that it distributes all of its taxable income for its fiscal year. The schedule of investments includes information regarding income taxes under the caption "Income Tax Information." INVESTMENT INCOME. Dividend income is recorded on the ex-dividend date, except certain dividends from foreign securities where the ex-dividend date may have passed, are recorded as soon as the fund is informed of the ex-dividend date. Interest income is accrued as earned. Dividend and interest income is recorded net of foreign taxes where recovery of such taxes is not assured. EXPENSES. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned between the funds in the trust. 1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED DISTRIBUTIONS TO SHAREHOLDERS. Distributions are recorded on the ex-dividend date. SECURITY TRANSACTIONS. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. 2. OPERATING POLICIES. REPURCHASE AGREEMENTS. The fund, through its custodian, receives delivery of the underlying securities, whose market value is required to be at least 102% of the resale price at the time of purchase. The fund's investment adviser, Fidelity Management & Research Company (FMR), is responsible for determining that the value of these underlying securities remains at least equal to the resale price. JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with other registered investment companies having management contracts with FMR, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Federal Agency obligations. FUTURES CONTRACTS AND OPTIONS. The fund may invest in futures contracts and write options. These investments involve, to varying degrees, elements of market risk and risks in excess of the amount recognized in the Statement of Assets and Liabilities. The face or contract amounts reflect the extent of the involvement the fund has in the particular classes of instruments. Risks may be caused by an imperfect correlation between movements in the price of the instruments and the price of the underlying securities and interest rates. Risks also may arise if there is an illiquid secondary market for the instruments, or due to the inability of counterparties to perform. Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded. Options traded on an exchange are valued using the last sale price or, in the absence of a sale, the last offering price. Options traded over-the-counter are valued using dealer-supplied valuations. 3. PURCHASES AND SALES OF INVESTMENTS. Purchases and sales of securities, other than short-term securities, aggregated $78,907,445 and $34,141,298, respectively, of which purchases of U.S. government and government agency obligations aggregated $248,293. There were no sales of U.S. government and government agency obligations. The market value of futures contracts opened and closed amounted to $6,047,335 and $2,785,320, respectively. 4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES. MANAGEMENT FEE. As the fund's investment adviser, FMR receives a monthly basic fee that is calculated on the basis of a group fee rate plus a fixed individual fund fee rate applied to the average net assets of the fund. The group fee rate is the weighted average of a series of rates ranging from .30% to .52% and is based on the monthly average net assets of all the mutual funds advised by FMR. The annual individual fund fee rate is .30%. The basic fee is subject to a performance adjustment (up to a maximum of + or - .20%) based on the fund's investment perform-ance as compared to the appropriate index over a specified period of time. The fund's performance adjustment will not take effect until September 1994. For the period, the management fee was equivalent to an annualized rate of .62% of average net assets. The Board of Trustees approved a new group fee rate schedule with rates ranging from .2850% to .5200%. Effective November 1, 1993, FMR has voluntarily agreed to implement this new group fee rate schedule as it results in the same or a lower management fee. SALES LOAD. For the period, Fidelity Distributors Corporation, an affiliate of FMR and the general distributor of the fund, received sales charges of $412,358 on sales of shares of the fund. TRANSFER AGENT FEE. Fidelity Service Co. (FSC), an affiliate of FMR, is the fund's transfer, dividend disbursing and shareholder servicing agent. FSC receives fees based on the type, size, number of accounts and the number of transactions made by shareholders. FSC pays for typesetting, printing and mailing of all shareholder reports, except proxy statements. ACCOUNTING FEE. FSC maintains the fund's accounting records. The fee is based on the level of average net assets for the month plus out-of-pocket expenses. BROKERAGE COMMISSIONS. The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of FMR. The commissions paid to these affiliated firms were $9,839 for the period. TO CALL FIDELITY FOR FUND INFORMATION AND QUOTES The Fidelity Telephone Connection offers you special automated telephone services for quotes and balances. The services are easy to use, confidential and quick. All you need is a Touch Tone telephone. YOUR PERSONAL IDENTIFICATION NUMBER (PIN) The first time you call one of our automated telephone services, we'll ask you to set up your Personal Identification Number (PIN). The PIN assures that only you have automated telephone access to your account information. Please have your Customer Number (T-account #) handy when you call -- you'll need it to establish your PIN. If you would ever like to change your PIN, just choose the "Change your Personal Identification Number" option when you call. If you forget your PIN, please call a Fidelity representative at 1-800- 544-6666 for assistance. (PHONE_GRAPHIC)(PHONE_GRAPHIC)MUTUAL FUND QUOTES* 1-800-544-8544 Just make a selection from this record-ed menu: PRESS 1. For quotes on funds you own. 2. For an individual fund quote. 3. For the ten most frequently requested Fidelity fund quotes. 4. For quotes on Fidelity Select Portfolios(Registered trademark). 5. To change your Personal Identification Number (PIN). 6. To speak with a Fidelity representative. (PHONE_GRAPHIC)(PHONE_GRAPHIC)MUTUAL FUND ACCOUNT BALANCES 1-800-544-7544 Just make a selection from this record- ed menu: PRESS 1. For balances on funds you own. 2. For your most recent fund activity (purchases, redemptions, and dividends). 3. To change your Personal Identification Number (PIN). 4. To speak with a Fidelity representative. * WHEN YOU CALL THE QUOTES LINE, PLEASE REMEMBER THAT A FUND'S YIELD AND RETURN WILL VARY AND, EXCEPT FOR MONEY MARKET FUNDS, SHARE PRICE WILL ALSO VARY. THIS MEANS THAT YOU MAY HAVE A GAIN OR LOSS WHEN YOU SELL YOUR SHARES. THERE IS NO ASSURANCE THAT MONEY MARKET FUNDS WILL BE ABLE TO MAINTAIN A STABLE $1 SHARE PRICE; AN INVESTMENT IN A MONEY MARKET FUND IS NOT INSURED OR GUARANTEED BY THE U.S. GOVERNMENT. TOTAL RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS, AND THE EFFECTS OF ANY SALES CHARGES. FOR MORE INFORMATION ON ANY FIDELITY FUND INCLUDING MANAGEMENT FEES AND CHARGES, CALL 1-800-544-8888 FOR A FREE PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY. TO WRITE FIDELITY Please locate the address that is closest to you. We'll give your correspondence immediate attention and send you written confirmation upon completion of your request. Please send ALL correspondence about retirement accounts to Dallas. (LETTER_GRAPHIC)MAKING CHANGES TO YOUR ACCOUNT (such as changing name, address, bank, etc.) Fidelity Investments P.O. Box 2269 Boston, MA 02107-2269 Fidelity Investments P.O. Box 660602 Dallas, TX 75266-0602 Fidelity Investments P.O. Box 30280 Salt Lake City, UT 84130-0280 (LETTER_GRAPHIC)FOR NON-RETIREMENT ACCOUNTS BUYING SHARES Fidelity Investments Additional Payments P.O. Box 2656 Boston, MA 02293-0656 Fidelity Investments Additional Payments P.O. Box 620024 Dallas, TX 75262-0024 Fidelity Investments Additional Payments P.O. Box 31455 Salt Lake City, UT 84131-0455 OVERNIGHT EXPRESS Fidelity Investments Additional Payments World Trade Center 164 Northern Avenue Boston, MA 02210 SELLING SHARES Fidelity Investments P.O. Box 193 Boston, MA 02103-0878 Fidelity Investments P.O. Box 660602 Dallas, TX 75266-0602 Fidelity Investments P.O. Box 30281 Salt Lake City, UT 84130-0281 OVERNIGHT EXPRESS Fidelity Investments Attn: Redemptions World Trade Center 164 Northern Avenue Boston, MA 02210 GENERAL CORRESPONDENCE Fidelity Investments P.O. Box 193 Boston, MA 02101-0193 Fidelity Investments P.O. Box 660602 Dallas, TX 75266-0602 (LETTER_GRAPHIC)FOR RETIREMENT ACCOUNTS BUYING SHARES Fidelity Investments P.O. Box 620024 Dallas, TX 75262-0024 SELLING SHARES Fidelity Investments P.O. Box 660602 Dallas, TX 75266-0602 GENERAL CORRESPONDENCE Fidelity Investments P.O. Box 660602 Dallas, TX 75266-0602 INVESTMENT ADVISER Fidelity Management & Research Company Boston, MA OFFICERS Edward C. Johnson 3d, President J. Gary Burkhead, Senior Vice President Gary L. French, Treasurer John H. Costello, Assistant Treasurer Arthur S. Loring, Secretary Robert H. Morrison, Manager, Security Transactions BOARD OF TRUSTEES J. Gary Burkhead Ralph F. Cox* Phyllis Burke Davis* Richard J. Flynn* Edward C. Johnson 3d E. Bradley Jones* Donald J. Kirk* Peter S. Lynch Edward H. Malone* Marvin L. Mann * Gerald C. McDonough* Thomas R. Williams* GENERAL DISTRIBUTOR Fidelity Distributors Corporation Boston, MA TRANSFER AND SHAREHOLDER SERVICING AGENT Fidelity Service Co. Boston, MA CUSTODIAN Brown Brothers Harriman & Co. Boston, MA FIDELITY GROWTH FUNDS Blue Chip Growth Fund Capital Appreciation Fund Contrafund Disciplined Equity Fund Dividend Growth Fund Emerging Growth Fund Fidelity Fifty Growth Company Fund Low-Priced Stock Fund Magellan(Registered trademark) Fund New Millennium Fund OTC Portfolio Retirement Growth Fund Small Cap Stock Fund Stock Selector Trend Fund Value Fund THE FIDELITY TELEPHONE CONNECTION MUTUAL FUND 24-HOUR SERVICE Account Balances 1-800-544-7544 Exchanges/Redemptions 1-800-544-7777 Mutual Fund Quotes 1-800-544-8544 Account Assistance 1-800-544-6666 Product Information 1-800-544-8888 Retirement Accounts 1-800-544-4774 (8 a.m. - 9 p.m.) TDD Service 1-800-544-0118 for the deaf and hearing impaired (9 a.m. - 9 p.m. Eastern time) * INDEPENDENT TRUSTEES AUTOMATED LINES FOR QUICKEST SERVICE -----END PRIVACY-ENHANCED MESSAGE-----