-----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, tnSKrF8bXqA6VqNfybOQNOnLNymobx5Ns0Lf4wKZMWxI9SYI9gOuFInxtuBBaeR3 MK7E0xXw/wguDvx3etm/YA== 0000035348-94-000003.txt : 19940315 0000035348-94-000003.hdr.sgml : 19940315 ACCESSION NUMBER: 0000035348-94-000003 CONFORMED SUBMISSION TYPE: N-30B-2 PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19931231 FILED AS OF DATE: 19940314 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: 94515860 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 FUND 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 6 The manager's review of fund performance, strategy, and outlook. INVESTMENT CHANGES 9 A summary of major shifts in the fund's investments over the last six months. INVESTMENTS 10 A complete list of the fund's investments with their market value. FINANCIAL STATEMENTS 26 Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. NOTES 30 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 PERIODS ENDED DECEMBER 31, 1993 PAST 6 PAST 1 PAST 5 PAST 10 MONTHS YEAR YEARS YEARS Fidelity Fund 8.21% 18.36% 94.81% 255.78% S&P 500(Registered trademark) 4.96% 10.08% 97.26% 302.35% Average Growth & Income 5.87% 11.55% 86.67% 239.72% Fund CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms over a set period - in this case, six months, one, five, or 10 years. 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. You can compare these figures to the performance of the Standard & Poor's 500 Composite Stock Price Index - a common proxy for the U.S. stock market. You can also compare them to the average growth & income fund, which reflects the performance of over 326 growth & income funds tracked by Lipper Analytical Services. Both benchmarks include reinvested dividends and capital gains, if any. AVERAGE ANNUAL TOTAL RETURNS PERIODS ENDED DECEMBER 31, 1993 PAST 1 PAST 5 PAST 10 YEAR YEARS YEARS Fidelity Fund 18.36% 14.27% 13.53% S&P 500(Registered trademark) 10.08% 14.55% 14.94% Average Growth & Income Fund 11.55% 13.13% 12.88% AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return and show you what would have happened if the fund had performed at a constant rate each year. $10,000 OVER 10 YEARS Fidelity (003) S&P 500 12/31/83 10000.00 10000.00 01/31/84 9686.24 9944.00 02/29/84 9212.67 9593.97 03/31/84 9317.96 9759.95 04/30/84 9364.02 9852.67 05/31/84 8847.65 9306.83 06/30/84 9027.13 9508.79 07/31/84 8960.65 9390.88 08/31/84 9798.22 10428.57 09/30/84 9815.65 10430.66 10/31/84 9929.70 10471.34 11/30/84 9849.19 10354.06 12/31/84 10153.29 10627.40 01/31/85 11119.59 11455.28 02/28/85 11044.00 11596.18 03/31/85 10922.45 11604.30 04/30/85 10756.12 11593.85 05/31/85 11407.59 12263.98 06/30/85 11602.77 12456.52 07/31/85 11686.64 12437.84 08/31/85 11658.69 12332.11 09/30/85 11271.46 11946.12 10/31/85 11764.90 12498.03 11/30/85 12406.36 13355.39 12/31/85 12961.75 14001.80 01/31/86 13291.53 14080.21 02/28/86 14498.10 15133.40 03/31/86 15222.96 15977.85 04/30/86 15029.45 15797.30 05/31/86 15553.55 16637.72 06/30/86 15750.90 16918.89 07/31/86 14865.47 15973.13 08/31/86 15718.41 17158.33 09/30/86 14656.90 15739.34 10/31/86 15319.77 16647.50 11/30/86 15426.16 17052.03 12/31/86 15004.87 16617.21 01/31/87 16743.75 18855.54 02/28/87 17740.31 19600.34 03/31/87 18226.40 20166.79 04/30/87 18114.52 19987.30 05/31/87 18175.54 20161.19 06/30/87 18736.84 21179.33 07/31/87 19863.10 22253.12 08/31/87 20190.74 23083.17 09/30/87 20038.95 22577.65 10/31/87 15093.60 17714.42 11/30/87 14331.19 16254.75 12/31/87 15496.84 17491.74 01/31/88 15884.84 18228.14 02/29/88 16911.87 19077.57 03/31/88 16601.43 18488.08 04/30/88 16854.53 18693.29 05/31/88 16935.07 18855.92 06/30/88 17895.54 19721.41 07/31/88 17721.58 19646.47 08/31/88 17234.46 18978.49 09/30/88 17829.13 19786.97 10/31/88 18203.25 20337.05 11/30/88 17969.42 20046.23 12/31/88 18262.77 20397.04 01/31/89 19269.47 21890.10 02/28/89 18890.48 21345.04 03/31/89 19353.43 21842.38 04/30/89 20379.57 22976.00 05/31/89 21381.84 23906.53 06/30/89 21308.42 23770.26 07/31/89 22966.01 25916.71 08/31/89 23530.55 26424.68 09/30/89 23496.23 26316.34 10/31/89 22710.61 25705.80 11/30/89 23036.95 26230.20 12/31/89 23522.65 26859.73 01/31/90 22263.21 25057.44 02/28/90 22722.39 25380.68 03/31/90 23169.52 26053.27 04/30/90 22575.09 25401.94 05/31/90 24252.70 27878.62 06/30/90 24106.26 27689.05 07/31/90 23880.23 27600.44 08/31/90 22165.00 25105.36 09/30/90 21172.93 23882.73 10/31/90 20945.26 23780.04 11/30/90 21869.32 25316.23 12/31/90 22323.72 26022.55 01/31/91 23762.63 27157.13 02/28/91 25324.88 29098.87 03/31/91 25902.93 29803.06 04/30/91 25930.52 29874.59 05/31/91 27240.84 31165.17 06/30/91 25731.91 29737.81 07/31/91 26883.87 31123.59 08/31/91 27328.01 31861.22 09/30/91 27092.14 31329.13 10/31/91 27357.47 31748.94 11/30/91 25709.60 30469.46 12/31/91 27714.02 33955.17 01/31/92 28149.39 33323.60 02/29/92 28945.08 33756.81 03/31/92 28069.07 33098.55 04/30/92 28265.46 34071.65 05/31/92 28522.28 34238.60 06/30/92 28130.60 33728.44 07/31/92 28737.84 35107.94 08/31/92 28145.78 34388.23 09/30/92 28433.20 34794.01 10/31/92 28784.03 34915.79 11/30/92 29424.70 36106.41 12/31/92 30058.75 36550.52 01/31/93 30852.27 36857.55 02/28/93 31120.44 37358.81 03/31/93 32044.79 38147.08 04/30/93 32044.79 37223.92 05/31/93 32829.50 38221.52 06/30/93 32879.81 38332.36 07/31/93 32912.02 38179.04 08/31/93 34443.83 39626.02 09/30/93 34758.74 39320.90 10/31/93 35333.41 40134.84 11/30/93 34393.05 39753.56 12/31/93 35578.05 40234.58 $10,000 OVER 10 YEARS: Let's say you invested $10,000 in Fidelity Fund on December 31, 1983. As the chart shows, by December 31, 1993, the value of your investment would have grown to $35,578 - a 255.78% increase on your initial investment. The same $10,000 investment in the S&P 500 (with dividends reinvested) would have grown to $40,235 - a 302.35% increase. 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 An interview with Beth Terrana, Portfolio Manager of Fidelity Fund Q. BETH, HOW HAS THE FUND PERFORMED? A. Better than its peers. Fidelity Fund's total return for the six months ended December 31, 1993 was 8.21%, compared to 5.87% for the average growth and income fund, according to Lipper Analytical Services. Over the last 12 months, the relative results were about the same: 18.36% for Fidelity Fund, compared to 11.55% for the average growth and income fund. Q. WHERE HAVE YOU FOUND WINNERS RECENTLY? A. I don't have many sector stories to tell because I choose stocks, not sectors. So the winners may not have a lot in common. British Petroleum (BP) was a large position - 2% of the fund - and it definitely boosted performance. The stock had floundered for years. Then new management arrived and undertook a dramatic restructuring - cutting costs, selling tangential assets, and focusing the company's resources on those divisions with the greatest potential for profits. Despite sinking oil prices, BP's stock has soared. The fund's natural gas stocks have not done nearly as well but I'm holding on to them. Gas prices have held up well despite the drop in oil prices. If anything, that adds to my confidence in the favorable long-term supply/demand story for natural gas. Q. WHAT CAN YOU TELL US ABOUT COLUMBIA HEALTHCARE? A. That's also a large position, more than 2% of the fund if you add in Hospital Corporation of America (HCA); the two are in the process of merging. I don't like the prospects for most hospitals, given the uncertainty surrounding health-care reform. But Columbia and HCA will be a low-cost provider, well-positioned to grow and profit in a more competitive industry. Both stocks contributed to the fund's performance. I should mention, too, that lately I've been revisiting the drug stocks, many of which suffered losses in 1993. But with all the cost-cutting and restructuring that's going on in the industry, their prospects may be brighter. Especially attractive, in my view, are companies that can generate revenues outside the drug business, including Warner-Lambert and Schering-Plough. All told, health-care stocks have risen from about 1% of the fund six months ago to more than 7% at the end of December. Q. DURING THE SAME PERIOD, YOU'VE SOLD MANY OF THE FUND'S TECHNOLOGY STOCKS. WHY? A. In retrospect, I wish I'd sold them earlier. The whole group dropped sharply in October and the fund suffered as a result. Ordinarily, I'll avoid making big bets on technology stocks, but when I took over the fund in August about 9% was in this sector. Technology stocks can be volatile, often for reasons that may not be logical or easy to understand. One exception that's currently among the fund's top holdings is Xerox - the newest restructuring story in corporate America. There's a new religion at Xerox - cost-cutting - and that, combined with hope for renewed revenue growth thanks to an exciting new product line, is cause for optimism. Q. WHAT ABOUT AUTO STOCKS? A. I own all three: Chrysler, Ford and GM. Chrysler, with its many new products and impressive earnings gains, has been the most interesting story lately. But GM has new management and a credible cost-cutting story to tell, both of which are plusses for the company's profit potential. The environment for the auto industry these days is uniquely favorable. Sales are up at each of the Big Three. And for the first time in years, U.S. companies are stealing market share from the Japanese. Goodyear Tire, another of the fund's largest holdings, has profited from many of the same trends, and from the fact that oversupply in the after market is finally drying up. Q. ANY OTHER NAMES WORTH HIGHLIGHTING? A. Philip Morris. That's another long out-of-favor stock that has begun to look like a bargain. I don't think the tobacco business is getting any worse, and it may actually be getting better. We saw an increase not long ago in cigarette prices, after several rounds of cuts. And there is evidence throughout the industry of a more rational, less costly approach to promotion and advertising. Once the company reports a couple of decent earnings quarters, I would expect to see renewed interest in the stock among investors. It's a long-term story, but one that I think has promise. Q. FOREIGN INVESTMENTS TOTALED 18.3% OF THE FUND'S INVESTMENTS AT THE END OF DECEMBER. THAT'S UP OVER 60% COMPARED TO SIX MONTHS AGO. WHAT ARE YOU BUYING? A. About 4% are foreign bonds, mainly South African government bonds. They provide the fund with some additional income but also the potential for price gains as interest rates fall and the South African currency rallies. As for stocks, besides Europe and Hong Kong, I've begun to look increasingly toward the so-called emerging markets - developing countries with rapidly expanding economies. For example, Mexico, where I own Cemex, a cement producer, and Grupo Carso, a conglomerate; and Brazil, where I own Telebras, the giant telephone utility. Q. WHAT'S YOUR OUTLOOK FOR THE COMING MONTHS? A. Guarded. I hate to sound like a broken record but the market is expensive. Of course, the market was expensive a year ago, and yet the fund produced results nearly double the average annual return enjoyed by long-term investors in the stock market. But I see a couple of compelling reasons not to count on a repeat performance in 1994. As paradoxical as it sounds, stocks benefited over the last several years from the weak economy, which kept interest rates low. Now with the economy showing signs of a sustained, albeit weak recovery, we could see interest rates begin moving in the opposite direction. At the same time, stocks were buoyed all year by a huge influx of new money into the stock market. Recently, however, that influx has slowed - all the more reason for caution going forward. FUND FACTS GOAL: to increase the value of the fund's shares over the long term by investing primarily in large, well-established companies with good prospects for growth and current income START DATE: April 30, 1930 SIZE: as of December 31, 1993, over $1.5 billion MANAGER: Beth Terrana, since August 1, 1993; manager, Fidelity Equity-Income Fund, Fidelity Advisor Equity Portfolio: Income, VIP Equity-Income Portfolio, 1990-1993; Fidelity Growth & Income Portfolio, 1985-1990 (checkmark) BETH TERRANA ON HOW THE MARKET HAS CHANGED: "A year ago, the differential between growth stocks and cyclicals was clear. Growth stocks - or stocks in companies with rapidly expanding earnings - were expensive; and cyclicals - those whose prices tend to move with changes in the economy - were cheap. So as long as you were in the right pond, you didn't have to hit all the right ducks. That's no longer the case. These days, even more than in the past, the premium is on stock-picking - identifying attractive buys across sectors, whether they're growth stocks or cyclicals." (bullet) Foreign investments totaled 18.3% of the fund's investments at the end of December, up from 11.2% six months ago. The emphasis lately has been on emerging markets, mainly Mexico but also Brazil and Argentina. (bullet) 7% of the fund's investments were bonds. They provide income that helps the fund achieve one of its goals: to match the dividend yield of the broader market. Some also have the potential to rise in price as interest rates fall and foreign currencies gain strength relative to the dollar. (bullet) The fund's cash position, nearly 20% six months ago, was 6.1% at the end of December. INVESTMENT CHANGES TOP TEN STOCKS AS OF DECEMBER 31, 1993 % OF FUND'S % OF FUND'S INVESTMENTS INVESTMENTS IN THESE STOCKS 6 MONTHS AGO General Electric Co. 2.6 0.6 British Petroleum PLC ADR 2.0 0.5 Xerox Corp. 1.9 0.0 Philip Morris Companies, Inc. 1.7 0.0 Citicorp $5.375 1.6 0.0 CSX Corp. 1.1 0.0 Columbia Healthcare Corp. 1.1 0.0 HCA - Hospital Corporation of America Class A 1.0 0.0 Murphy Oil Corp. 1.0 1.0 Goodyear Tire & Rubber Co. 0.9 0.0 TOP FIVE INDUSTRIES AS OF DECEMBER 31, 1993 % OF FUND'S % OF FUND'S INVESTMENTS INVESTMENTS IN THESE INDUSTRIES 6 MONTHS AGO Finance 11.3 6.3 Energy 10.2 13.4 Health 7.8 0.9 Durables 7.6 7.5 Media & Leisure 7.2 4.6 ASSET ALLOCATION AS OF DECEMBER 31, 1993* AS OF JUNE 30, 1993** Row: 1, Col: 1, Value: 6.1 Row: 1, Col: 2, Value: 7.0 Row: 1, Col: 3, Value: 86.90000000000001 Stocks 71.9% Bonds 8.8% Short-term Investments 19.3% Stocks 86.9% Bonds 7.0% Short-term Investments 6.1% Row: 1, Col: 1, Value: 19.3 Row: 1, Col: 2, Value: 8.800000000000001 Row: 1, Col: 3, Value: 71.90000000000001 * FOREIGN INVESTMENTS 18.3% ** FOREIGN INVESTMENTS 11.2% INVESTMENTS DECEMBER 31, 1993 (UNAUDITED) Showing Percentage of Total Value of Investment in Securities COMMON STOCKS - 80.7% SHARES VALUE (NOTE 1) (000S) AEROSPACE AND DEFENSE - 1.0% AEROSPACE AND DEFENSE - 0.2% Northrop Corp. 91,200 $ 3,409 66680710 DEFENSE ELECTRONICS - 0.8% Loral Corp. 313,400 11,831 54385910 TOTAL AEROSPACE AND DEFENSE 15,240 BASIC INDUSTRIES - 4.0% CHEMICALS AND PLASTICS - 2.4% Betz Laboratories, Inc. 32,100 1,408 08777910 GEON 16,800 397 37246W10 Hercules, Inc. 115,600 13,063 42705610 IMC Fertilizer Group, Inc. 47,300 2,146 44966910 Imperial Chemical Industries PLC ADR 175,000 8,269 45270450 OM Group, Inc. (b) 145,800 3,007 67087210 Union Carbide Corp. 384,900 8,612 90558110 Vigoro Corp. 7,600 230 92675410 37,132 IRON AND STEEL - 0.7% British Steel PLC ADR 80,000 1,480 11101530 Mannesmann AG 5,562 1,325 56311595 Mannesmann AG Ord. 22,500 5,469 56377510 Oregon Steel Mills, Inc. 109,300 2,746 68607910 11,020 METALS AND MINING - 0.9% Alcan Aluminium Ltd. 243,900 5,121 01371610 De Beers Consolidated Mines Ltd. ADR 26,700 647 24025330 Outokumpu Oy Class A (b) 100,000 1,180 69099992 Phelps Dodge Corp. 105,400 5,138 71726510 Reynolds Metals Co. 44,200 2,006 76176310 14,092 TOTAL BASIC INDUSTRIES 62,244 CONGLOMERATES - 3.9% Allied-Signal, Inc. 146,300 11,558 01951210 Brierley Investments Ltd. 366,900 283 10901410 COMMON STOCKS - CONTINUED SHARES VALUE (NOTE 1) (000S) CONGLOMERATES - CONTINUED Canadian Pacific Ltd. Ord. 495,000 $ 8,099 13644030 Dial Corp. (The) 170,700 6,892 25247010 Grupo Carso SA de CV (b) 772,600 8,432 40099594 Teledyne, Inc. 180,000 4,680 87933510 Textron, Inc. 224,400 13,071 88320310 United Technologies Corp. 120,000 7,440 91301710 60,455 CONSTRUCTION AND REAL ESTATE - 4.7% BUILDING MATERIALS - 1.5% Armstrong World Industries, Inc. 195,000 10,384 04247610 Cemex SA (b) 277,600 8,276 15299293 Lafarge Corp. 193,800 4,433 50586210 Tecumseh Products Co. 6,300 291 87889520 23,384 CONSTRUCTION - 0.9% Centex Corp. 136,600 5,737 15231210 Lennar Corp. 55,000 1,877 52605710 Pulte Corp. 88,700 3,215 74586710 Redman Industries (b) 4,000 81 75764210 Toll Brothers, Inc. (b) 190,400 3,261 88947810 14,171 REAL ESTATE INVESTMENT TRUSTS - 2.3% Burnham Pacific Properties, Inc. 103,839 1,778 12232C10 Crown American Realty Trust (SBI) 35,400 531 22818610 Developers Diversified Realty 10,225 299 25159110 Federal Realty Investment Trust 240,000 6,000 31374720 Health Care Property Investors, Inc. 167,800 4,551 42191510 Holly Residential Properties, Inc. 65,000 1,300 43602310 Kimco Realty Corporation 160,500 5,638 49446R10 McArthur/Glen Realty Corp. (b) 50,500 1,231 57918810 Merry Land & Investment Co., Inc. 188,000 3,760 59043810 Simon Properties Group, Inc. (b) 130,300 2,948 82880510 Southwestern Property Trust, Inc. 100,000 1,262 84573410 Vornado Realty Trust 86,000 2,881 92904210 Weingarten Realty Investors (SBI) 85,700 3,214 94874110 35,393 TOTAL CONSTRUCTION AND REAL ESTATE 72,948 COMMON STOCKS - CONTINUED SHARES VALUE (NOTE 1) (000S) DURABLES - 5.9% AUTOS, TIRES, AND ACCESSORIES - 3.3% Cooper Tire & Rubber Co. 227,000 $ 5,675 21683110 Dana Corp. 33,300 1,994 23581110 Federal-Mogul Corp. 36,700 1,064 31354910 General Motors Corp. 214,300 11,760 37044210 Goodyear Tire & Rubber Co. 288,900 13,217 38255010 Peugeot SA Ord. 4,900 652 71682510 Sime Darby Hong Kong Ltd. 474,000 865 82899392 Snap-on Tools Corp. 183,100 6,935 83303410 Valeo SA 23,800 5,191 91899010 Volkswagen AG (b) 16,000 4,050 92866210 51,403 CONSUMER ELECTRONICS - 0.9% Harman International Industries, Inc. (b) 29,100 837 41308610 Newell Co. 182,700 7,377 65119210 Whirlpool Corp. 90,000 5,985 96332010 14,199 HOME FURNISHINGS - 0.4% Leggett & Platt, Inc. 112,000 5,600 52466010 TEXTILES AND APPAREL - 1.3% Donnkenny, Inc. (b) 20,000 375 25800610 Jones Apparel Group, Inc. (b) 84,800 2,533 48007410 Kellwood Co. 77,800 3,122 48804410 Mohawk Industries, Inc. (b) 202,850 6,948 60819010 Oshkosh B'Gosh, Inc. 53,800 1,049 68822220 Unifi, Inc. 201,700 5,421 90467710 VF Corp. 10,000 461 91820410 Westpoint Stevens, Inc. (b) 10,100 189 96123810 20,098 TOTAL DURABLES 91,300 ENERGY - 8.7% COAL - 0.1% Pittston Co. Minerals Group 64,400 1,538 72570120 ENERGY SERVICES - 1.8% Daniel Industries, Inc. 2,400 31 23623510 Energy Service, Inc. (b) 276,500 899 29271910 COMMON STOCKS - CONTINUED SHARES VALUE (NOTE 1) (000S) ENERGY - CONTINUED ENERGY SERVICES - CONTINUED Enterra Corp. (b) 123,200 $ 2,526 29380510 Global Marine, Inc. (b) 800,000 3,300 37935240 Halliburton Co. 179,500 5,721 40621610 Marine Drilling Cos., Inc. (b) 187,700 1,079 56824020 McDermott International, Inc. 59,700 1,582 58003710 Nabors Industries, Inc. (b) 105,000 827 62956810 Offshore Pipelines, Inc. (b) 50,000 787 67626910 Reading & Bates Corp. (b) 66,800 468 75528180 Schlumberger Ltd. 144,000 8,514 80685710 Sundowner Offshore Services, Inc. (b) 155,400 2,020 86731410 27,754 OIL AND GAS - 6.8% Anadarko Petroleum Corp. 205,600 9,329 03251110 Apache Corp. 57,800 1,351 03741110 Benton Oil & Gas Co. (b) 113,700 569 08328810 British Petroleum PLC ADR 481,700 30,829 11088940 Burlington Resources, Inc. 133,600 5,661 12201410 Cabot Oil & Gas Corp. Class A 90,600 1,914 12709710 Canadian Natural Resources Ltd. (b) 390,300 5,315 13638510 Kerr-McGee Corp. 178,500 8,055 49238610 Murphy Oil Corp. 389,200 15,568 62671710 Petro-Canada 363,000 3,296 71644E10 Renaissance Energy Ltd. (b) 322,000 6,882 75966610 Royal Dutch Petroleum Co. 50,000 5,219 78025770 Total Compagnie Francaise des Petroles Class B (b) 131,944 7,193 20434510 Unocal Corp. 81,300 2,266 91528910 Western Gas Resources, Inc. 65,300 2,139 95825910 105,586 TOTAL ENERGY 134,878 FINANCE - 9.1% BANKS - 4.8% BankAmerica Corp. 240,800 11,167 06605010 Bank of New York Co., Inc. 230,500 13,139 06405710 Chemical Banking Corp. 219,100 8,791 16372210 Citicorp (b) 351,500 12,918 17303410 First Fidelity Bancorporation 110,969 5,049 32019510 COMMON STOCKS - CONTINUED SHARES VALUE (NOTE 1) (000S) FINANCE - CONTINUED BANKS - CONTINUED Grupo Financiero Bancomer SA de CV sponsored ADR, Series C (d) 91,500 $ 3,820 40048610 Mellon Bank Corp. 25,773 1,366 58550910 NationsBank Corp. 68,844 3,404 63858510 Paribas SA (Cie Financiere) (b) 64,100 5,370 73999192 Westpac Banking Corp. 2,962,100 9,288 96121410 74,312 CREDIT AND OTHER FINANCE - 2.5% American Express Co. 231,500 7,148 02581610 Argentaria Corp. Bancaria de Espana (b) 86,900 3,667 21991392 Beneficial Corp. 202,000 7,726 08172110 Dean Witter Discover & Co. 186,689 6,464 24240V10 GFC Financial Corp. 289,200 8,387 36160910 Primerica Corp. 119,200 4,634 74158910 38,026 FEDERAL SPONSORED CREDIT - 0.9% Federal Home Loan Mortgage Corporation 44,100 2,199 31340030 Federal National Mortgage Association 144,200 11,320 31358610 13,519 INSURANCE - 0.6% Allstate Corp. (b) 227,400 6,708 02000210 NWNL Companies, Inc. 62,200 1,990 62945T10 8,698 SAVINGS AND LOANS - 0.3% Commercial Federal Corp. (b) 243,500 4,840 20164710 TOTAL FINANCE 139,395 HEALTH - 7.8% DRUGS AND PHARMACEUTICALS - 3.6% Biogen, Inc. (b) 72,900 2,907 09059710 COR Therapeutics, Inc. (b) 208,100 3,147 21775310 Cell Genesys, Inc. (b) 43,500 848 15092110 Cellpro, Inc. (b) 51,300 1,783 15115610 Cephalon, Inc. (b) 122,000 1,998 15670810 Chiron Corp. (b) 54,400 4,570 17004010 Creative Biomolecules, Inc. (b) 241,600 2,507 22527010 COMMON STOCKS - CONTINUED SHARES VALUE (NOTE 1) (000S) HEALTH - CONTINUED DRUGS AND PHARMACEUTICALS - CONTINUED Cytotherapeutics, Inc. (b) 61,400 $ 752 23292310 Elan PLC ADR (b) 150,300 6,369 28413120 Immulogic Pharmaceutical Corp. (b) 102,300 1,381 45252R10 Perspective Biosystems, Inc. (b) 57,400 1,650 71527110 Pfizer, Inc. 126,200 8,708 71708110 Protein Design Labs, Inc. (b) 67,900 1,647 74369L10 Schering-Plough Corp. 131,900 9,035 80660510 Vertex Pharmaceuticals, Inc. (b) 60,000 1,110 92532F10 Warner-Lambert Co. 116,400 7,857 93448810 56,269 MEDICAL EQUIPMENT AND SUPPLIES - 0.5% McKesson Corp. 138,000 7,452 58155610 MEDICAL FACILITIES MANAGEMENT - 3.7% Columbia Healthcare Corp. 489,245 16,267 19767910 HCA - Hospital Corporation of America Class A (b) 465,300 15,878 40412010 Health Management Associates, Inc. Class A (b) 87,000 2,545 42193310 Humana, Inc. 85,000 1,498 44485910 Intergroup Healthcare Corp. (b) 26,600 1,277 45868J10 Lincare Holdings, Inc. (b) 103,800 2,582 53279110 National Medical Enterprises, Inc. 395,700 5,540 63688610 U.S. Healthcare, Inc. 208,700 12,026 91191010 57,613 TOTAL HEALTH 121,334 INDUSTRIAL MACHINERY AND EQUIPMENT - 6.4% ELECTRICAL EQUIPMENT - 4.1% Alcatel Alsthom CGE SA 76,500 10,882 01390492 General Electric Co. 387,500 40,639 36960410 Hutchison Whampoa Ltd. Ord. 1,619,000 8,066 44841510 Philips Electronics 27,500 565 71833799 Philips Gloelampen NV (NY shs.) (b) 123,600 2,549 71833750 62,701 INDUSTRIAL MACHINERY AND EQUIPMENT - 2.3% Caterpillar, Inc. 133,200 11,855 14912310 Deere & Co. 104,200 7,711 24419910 Indresco, Inc. (b) 309,400 4,796 45590510 Parker-Hannifin Corp. 50,000 1,888 70109410 COMMON STOCKS - CONTINUED SHARES VALUE (NOTE 1) (000S) INDUSTRIAL MACHINERY AND EQUIPMENT - CONTINUED INDUSTRIAL MACHINERY AND EQUIPMENT - CONTINUED TRINOVA Corp. 100,300 $ 3,147 89667810 Tenneco, Inc. 125,700 6,615 88037010 36,012 TOTAL INDUSTRIAL MACHINERY and EQUIPMENT 98,713 MEDIA AND LEISURE - 6.9% BROADCASTING - 0.8% Home Shopping Network, Inc. 185,400 2,758 43735110 Tele-Communications, Inc. Class A (b) 340,800 10,309 87924010 13,067 ENTERTAINMENT - 0.2% Carnival Cruise Lines, Inc. Class A 31,800 1,506 14365810 Royal Caribbean Cruises Ltd. 69,300 1,854 78015392 3,360 LEISURE DURABLES AND TOYS - 0.1% Swing-n-Slide Corp. (b) 63,800 829 87077510 LODGING AND GAMING - 3.1% Four Seasons Hotels, Inc. 266,100 2,617 35100E10 Hospitality Franchise Systems, Inc. (b) 39,200 2,083 44091210 Host Marriott Corp. 546,700 4,989 44107810 La Quinta Motor Inns, Inc. 336,250 11,853 50419510 Marriott International, Inc. 289,900 8,407 57190010 Mirage Resorts, Inc. (b) 453,750 10,833 60462E10 Red Lion Inns LP 169,200 4,843 75670210 Sholodge, Inc. 72,900 1,677 82503410 47,302 PUBLISHING - 1.1% American Greetings Corp. 158,500 5,389 02637510 Harcourt General, Inc. 23,900 866 41163G10 McGraw-Hill, Inc. 78,000 5,275 58064510 Times Mirror Co. 159,600 5,327 88736010 16,857 RESTAURANTS - 1.6% McDonald's Corp. 208,600 11,890 58013510 Morrison Restaurants, Inc. 501,750 13,171 61847710 25,061 TOTAL MEDIA AND LEISURE 106,476 COMMON STOCKS - CONTINUED SHARES VALUE (NOTE 1) (000S) NONDURABLES - 3.4% BEVERAGES - 0.2% Canadaigua Wine Co. (b) 37,800 $ 1,191 13721920 Coca-Cola Company (The) 43,700 1,961 19121610 3,152 FOODS - 0.6% ConAgra, Inc. 51,400 1,355 20588710 Dean Foods Co. 145,100 4,734 24236110 Tyson Foods, Inc. 119,700 2,873 90249410 8,962 HOUSEHOLD PRODUCTS - 0.8% Colgate-Palmolive Co. 10,000 624 19416210 Maybelline, Inc. 150,200 3,511 57787510 Premark International, Inc. 58,000 4,654 74045910 Procter & Gamble Co. 65,800 3,751 74271810 Stanhome, Inc. 5,500 186 85442510 12,726 TOBACCO - 1.8% Philip Morris Companies, Inc. 460,100 25,651 71815410 RJR Nabisco Holdings Corp. (b) 337,000 2,148 74960K10 27,799 TOTAL NONDURABLES 52,639 RETAIL AND WHOLESALE - 4.6% APPAREL STORES - 0.4% AnnTaylor Stores Corp. (b) 52,000 1,287 03611510 Limited, Inc. (The) 53,900 923 53271610 TJX Companies, Inc. 113,600 3,309 87254010 5,519 GENERAL MERCHANDISE STORES - 3.0% Carter Hawley Hale Stores, Inc. (b) 284,000 2,698 14622730 Dayton Hudson Corp. 159,300 10,633 23975310 Kohls Corp. (b) 63,900 3,211 50025510 Meyer (Fred), Inc. (b) 184,900 6,656 59309810 Penney (J.C.) Co., Inc. 146,700 7,684 70816010 Price/Costco, Inc. 276,100 5,315 74143W10 Sears, Roebuck & Co. 190,200 10,033 81238710 46,230 COMMON STOCKS - CONTINUED SHARES VALUE (NOTE 1) (000S) RETAIL AND WHOLESALE - CONTINUED GROCERY STORES - 0.2% Promodes SA Ord. 13,900 $ 2,614 74699692 RETAIL AND WHOLESALE, MISCELLANEOUS - 1.0% Amway Asia Pacific Ltd. (b) 2,600 92 03299H22 Body Shop International PLC (b) 352,000 1,159 09679992 Brookstone, Inc. (b) 68,100 1,073 11453710 CML Group, Inc. 49,200 1,162 12582010 Duty Free International, Inc. 38,400 763 26708410 Little Switzerland, Inc. (b) 26,700 247 53752810 Pinault Printemps SA 20,100 3,409 72199393 Redoute (LA) 5,000 862 75799492 Toys "R" Us, Inc. (b) 177,800 7,268 89233510 16,035 TRADING COMPANIES - 0.0% Li & Fung Ltd. 671,000 530 51899592 TOTAL RETAIL AND WHOLESALE 70,928 SERVICES - 2.0% LEASING AND RENTAL - 0.9% Blockbuster Entertainment Corp. 255,400 7,822 09367610 GATX Corp. 135,100 5,505 36144810 13,327 SERVICES - 1.1% ADT Ltd. (b) 268,000 2,412 00091530 Ecolab, Inc. 151,900 6,835 27886510 Robert Half International, Inc. (b) 134,800 3,539 77032310 Supercuts, Inc. (b) 311,000 4,626 86805710 17,412 TOTAL SERVICES 30,739 TECHNOLOGY - 4.9% COMMUNICATIONS EQUIPMENT - 0.6% DSC Communications Corp. (b) 65,700 4,041 23331110 Nokia AB free shares 84,400 4,194 65599992 Porta Systems Corp. 36,600 361 73564710 8,596 COMMON STOCKS - CONTINUED SHARES VALUE (NOTE 1) (000S) TECHNOLOGY - CONTINUED COMPUTER SERVICES AND SOFTWARE - 1.4% Adobe Systems, Inc. 328,500 $ 7,309 00724F10 CompUSA, Inc. (b) 24,900 498 20493210 Manugistics Group, Inc. (b) 123,000 1,199 56501110 Micrografx, Inc. (b) 206,700 1,873 59507710 Microsoft Corp. (b) 45,000 3,628 59491810 Recognition Equipment, Inc. (b) 225,000 3,375 75623110 Sterling Software, Inc. (b) 114,800 3,257 85954710 21,139 COMPUTERS AND OFFICE EQUIPMENT - 2.4% Diebold, Inc. 97,100 5,850 25365110 Hewlett-Packard Co. 14,400 1,138 42823610 Xerox Corp. 335,000 29,941 98412110 36,929 PHOTOGRAPHIC EQUIPMENT - 0.5% Eastman Kodak Co. 148,800 8,333 27746110 TOTAL TECHNOLOGY 74,997 TRANSPORTATION - 4.1% AIR TRANSPORTATION - 0.9% Atlantic Coast Airlines, Inc. (b) 12,500 101 04839610 Mesa Airlines, Inc. (b) 236,600 4,200 59048110 UAL Corp. (b) 66,500 9,709 90254910 14,010 RAILROADS - 2.8% Burlington Northern, Inc. 88,400 5,116 12189710 CSX Corp. 201,200 16,297 12640810 Conrail, Inc. 173,900 11,629 20836810 Santa Fe Pacific Corp. 410,000 9,123 80218310 Southern Pacific Rail Corp. (b) 48,400 956 84358410 43,121 TRUCKING AND FREIGHT - 0.4% TNT Freightways Corp. 209,850 5,666 87259J10 TOTAL TRANSPORTATION 62,797 COMMON STOCKS - CONTINUED SHARES VALUE (NOTE 1) (000S) UTILITIES - 3.3% CELLULAR - 0.4% Vodafone Group PLC 668,100 $ 5,857 92857T92 ELECTRIC UTILITY - 1.4% Entergy Corp. 230,000 8,280 29364F10 Philadelphia Electric Co. 196,200 5,935 71753710 Texas Utilities Co. 67,292 2,910 88284810 Veba Vereinigte Elektrizetaets & Bergwerks AG Ord. 15,600 4,685 92239110 21,810 GAS - 0.5% Coastal Corp. (The) 8,400 236 19044110 Panhandle Eastern Corp. 93,700 2,214 69846210 Williams Companies, Inc. 193,200 4,709 96945710 7,159 TELEPHONE SERVICES - 1.0% Davel Communications Group, Inc. (b) 1,000 15 23833810 Southwestern Bell Corp. 115,100 4,777 84533310 Telebras ON 18,500,000 496 95499795 Telebras PN (Pfd. Reg.) 220,000,000 7,500 95499792 U.S. West, Inc. 78,400 3,596 91288910 16,384 TOTAL UTILITIES 51,210 TOTAL COMMON STOCKS (Cost $1,151,496) 1,246,293 CONVERTIBLE PREFERRED STOCKS - 6.2% CONSTRUCTION AND REAL ESTATE - 0.1% REAL ESTATE - 0.1% Rouse Co. 30,500 1,639 77927320 DURABLES - 1.3% AUTOS, TIRES, AND ACCESSORIES - 1.3% Chrysler Corp., Series A, $4.625 (d) 77,700 11,655 17119670 Ford Motor Co. (Del.), Series A, $4.20 77,500 8,409 34537020 20,064 CONVERTIBLE PREFERRED STOCKS - CONTINUED VALUE (NOTE 1) SHARES (000S) ENERGY - 1.5% ENERGY SERVICES - 0.5% Chiles Offshore Corp. $1.50 176,000 $ 4,004 16888720 McDermott International, Inc. $2.875, Series C (d) 65,000 3,120 58003730 7,124 OIL AND GAS - 1.0% Snyder Oil $6.00 186,900 5,046 83348240 Unocal Corp. $3.50 (b)(d) 190,000 10,735 91528920 15,781 TOTAL ENERGY 22,905 FINANCE - 1.6% BANKS - 1.6% Citicorp $5.375 (d) 226,400 24,904 17303451 NONDURABLES - 0.7% TOBACCO - 0.7% RJR Nabisco Holdings Corp., Series A, depositary shares representing 1/4 share 1,570,900 10,996 74960K40 TECHNOLOGY - 0.4% COMPUTER SERVICES AND SOFTWARE - 0.4% Ceridian Corp. 116,800 5,898 15677T40 TRANSPORTATION - 0.0% TRUCKING AND FREIGHT - 0.0% TNT Ltd. 8% 168,300 251 93599293 UTILITIES - 0.6% GAS - 0.3% Enron Corp., Series J, $10.50 10,800 4,235 29356160 TELEPHONE SERVICES - 0.3% LCI International $1.25 164,500 4,730 50181320 TOTAL UTILITIES 8,965 TOTAL CONVERTIBLE PREFERRED STOCKS (Cost $91,589) 95,622 CORPORATE BONDS - 3.2% MOODY'S RATINGS (C) PRINCIPAL VALUE (NOTE 1) (UNAUDITED) AMOUNT (A) (000S) (000S) CONVERTIBLE BONDS - 1.3% CONSTRUCTION AND REAL ESTATE - 0.0% REAL ESTATE INVESTMENT TRUSTS - 0.0% Centerpoint Properties 8.22%, 1/15/04 - $ 297 $ 297 151895AA DURABLES - 0.1% TEXTILES AND APPAREL - 0.1% Interface, Inc. 8%, 9/15/13 Ba3 2,110 2,226 458665AA FINANCE - 0.6% BANKS - 0.6% Bank of New York Co., Inc. 7 1/2%, 8/15/01 Baa1 1,920 3,130 064057AK C.S. Holdings euro 4 7/8%, 11/19/02 A2 4,170 6,359 175997AC 9,489 CREDIT AND OTHER FINANCE - 0.0% CTII Overseas Finance 4 1/4%, 11/18/98 (d) - 310 329 126995AA TOTAL FINANCE 9,818 TECHNOLOGY - 0.6% COMPUTER SERVICES AND SOFTWARE - 0.2% Sterling Software, Inc. 5 3/4%, 2/1/03 B1 2,720 3,230 859547AD COMPUTERS AND OFFICE EQUIPMENT - 0.4% Media Vision Technology, Inc. 4 7/8%, 10/1/03 B3 3,660 5,124 58445HAA TOTAL TECHNOLOGY 8,354 TOTAL CONVERTIBLE BONDS 20,695 NONCONVERTIBLE BONDS - 1.9% AEROSPACE AND DEFENSE - 0.1% DEFENSE ELECTRONICS - 0.1% Trancor, Inc. 10 7/8%, 8/15/01 B2 1,500 1,571 892349AC CORPORATE BONDS - CONTINUED MOODY'S RATINGS (C) PRINCIPAL VALUE (NOTE 1) (UNAUDITED) AMOUNT (A) (000S) (000S) NONCONVERTIBLE BONDS - CONTINUED BASIC INDUSTRIES - 0.3% CHEMICALS AND PLASTICS - 0.3% IMC Fertilizer Group, Inc. 9 1/4%, 10/1/00 B3 $ 5,000 $ 5,025 449669AH DURABLES - 0.3% TEXTILES AND APPAREL - 0.3% Westpoint Stevens 9 3/8%, 12/15/05 B3 5,000 5,050 961238AB INDUSTRIAL MACHINERY AND EQUIPMENT - 0.3% Joy Technologies, Inc. 10 1/4%, 9/1/03 B1 3,600 3,753 481206AD MEDIA AND LEISURE - 0.3% LODGING AND GAMING - 0.3% Host Marriott Corp.: 9 1/8%, 12/1/00 B1 1,000 1,017 441080AD 9 7/8%, 5/1/01 B1 350 357 441080AE 10 1/2%, 5/1/06 B1 750 771 441080AH Red Roof Inns 9 5/8%, 12/15/03 (d) B3 2,000 2,035 757005AA 4,180 NONDURABLES - 0.3% BEVERAGES - 0.3% Canandaigua Wine, Inc. 8 3/4%, 12/15/03 B1 5,000 5,025 137219AB UTILITIES - 0.3% ELECTRIC UTILITY - 0.3% ESKOM 11%, 6/1/08 - ZAR 18,000 3,954 28599AAA TOTAL NONCONVERTIBLE BONDS 28,558 TOTAL CORPORATE BONDS (Cost $47,537) 49,253 FOREIGN GOVERNMENT OBLIGATIONS - 3.8% MOODY'S RATINGS (C) PRINCIPAL VALUE (NOTE 1) (UNAUDITED) AMOUNT (A) (000S) (000S) Federal Republic of Germany 6 1/2%, 7/15/03 - DEM 46,000 $ 27,883 093992AU French Government: BTAN 8 1/2%, 3/12/97 Aaa FRF 33,000 6,147 351996AS OAT 8 1/2%, 11/25/02 Aaa FRF 10,000 2,028 3517779U Republic of South Africa 12%, 2/28/05 - ZAR 49,480 11,668 760998AB Spanish Government 10.9%, 8/30/03 Aa2 ESP 1,300,000 10,711 84699AAL TOTAL FOREIGN GOVERNMENT OBLIGATIONS (Cost $57,778) 58,437 REPURCHASE AGREEMENTS - 6.1% MATURITY AMOUNT (000S) Investments in repurchase agreements, (U.S. Treasury obligations), in a joint trading account at 3.23% dated 12/31/93 due 1/3/94 $93,820 93,795 TOTAL INVESTMENT IN SECURITIES - 100% (Cost $1,442,195) $ 1,543,400 FORWARD FOREIGN CURRENCY CONTRACTS AMOUNTS IN THOUSANDS SETTLEMENT UNREALIZED DATE(S) VALUE GAIN/(LOSS) CONTRACTS TO BUY 21,833 DKK 1/19/94 $ 3,207 $ 27 93,954 FRF 1/14/94 15,851 (21) TOTAL CONTRACTS TO BUY (Payable amount $19,052) $ 19,058 $ 6 THE VALUE OF CONTRACTS TO BUY AS A PERCENTAGE OF TOTAL INVESTMENT IN SECURITIES - 1.2% CONTRACTS TO SELL 646,338 BEF 1/14/94 $ 17,800 $ 310 54,160 DEM 1/19/94 to 2/15/94 31,077 745 21,833 DKK 1/19/94 3,207 64 2,359,130 ESP 1/14/94 16,439 1,226 172,867 FRF 1/14/94 29,164 1,095 TOTAL CONTRACTS TO SELL (Receivable amount $101,127) $ 97,687 $ 3,440 THE VALUE OF CONTRACTS TO SELL AS A PERCENTAGE OF TOTAL INVESTMENT IN SECURITIES - 6.3% CURRENCY TYPE ABBREVIATIONS BEF - Belgian franc DKK - Danish Kroner FRF - French franc DEM - German Deutsche mark ESP - Spanish Peseta ZAR - South African rand LEGEND 1. Principal amount stated in United States dollars unless otherwise noted. 2. Non-income producing 3. Standard & Poor's Corporation credit ratings are used in the absence of a rating by Moody's Investors Service, Inc. 4. Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the period end, the value of these securities amounted to $56,598,000 or 3.6% of net assets. OTHER INFORMATION Distribution of investments by country, as a percentage of total value of investment in securities, is as follows: United States 81.7% United Kingdom 3.2 Germany 2.9 France 2.9 Canada 2.0 Mexico 1.3 Netherlands 1.1 Others (individually less than 1%) 4.9 TOTAL 100.0% INCOME TAX INFORMATION At December 31, 1993, the aggregate cost of investment securities for income tax purposes was $1,442,641,000. Net unrealized appreciation aggregated $100,759,000, of which $128,104,000 related to appreciated investment securities and $27,345,000 related to depreciated investment securities. FINANCIAL STATEMENTS STATEMENT OF ASSETS AND LIABILITIES
AMOUNTS IN THOUSANDS (EXCEPT PER SHARE AMOUNTS) DECEMBER 31, 1993 (UNAUDITED) ASSETS Investment in securities, at value (including repurchase $ 1,543,400 agreements of $93,795) (cost $1,442,195) (Notes 1 and 2) - See accompanying schedule Long foreign currency contracts held, at value (cost 19,058 $19,052) (Note 2) Short foreign currency contracts (Note 2) $ (97,687) Contracts held, at value Receivable for contracts held 101,127 3,440 Receivable for investments sold 38,476 Net receivable for closed foreign currency contracts 460 Receivable for fund shares sold 13,217 Dividends receivable 2,919 Interest receivable 2,215 Other receivables 894 TOTAL ASSETS 1,624,079 LIABILITIES Payable for foreign currency contracts held (Note 2) 19,052 Payable for investments purchased 38,367 Payable for fund shares redeemed 4,862 Accrued management fee 524 Other payables and accrued expenses 383 Collateral on securities loaned, at value (Note 5) 5,427 TOTAL LIABILITIES 68,615 NET ASSETS $ 1,555,464 Net Assets consist of (Note 1): Paid in capital $ 1,414,968 Distributions in excess of net investment income (748) Accumulated undistributed net realized gain (loss) on 36,593 investments Net unrealized appreciation (depreciation) on: Investment securities 101,205 Foreign currency contracts 3,446 NET ASSETS, for 80,723 shares outstanding $ 1,555,464 NET ASSET VALUE, offering price and redemption price per $19.27 share ($1,555,464 (divided by) 80,723 shares)
STATEMENT OF OPERATIONS
AMOUNTS IN THOUSANDS SIX MONTHS ENDED DECEMBER 31, 1993 (UNAUDITED) INVESTMENT INCOME $ 12,293 Dividends Interest (including security lending fees of $44) (Note 5) 5,052 TOTAL INCOME 17,345 EXPENSES Management fee (Note 4) $ 3,080 Transfer agent fees (Note 4) 1,387 Accounting and security lending fees (Note 4) 308 Non-interested trustees' compensation 4 Custodian fees and expenses 143 Registration fees 35 Audit 40 Legal 17 Miscellaneous 14 Total expenses before reductions 5,028 Expense reductions (Note 6) (204) 4,824 NET INVESTMENT INCOME 12,521 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTES 1, 2 AND 3) Net realized gain (loss) on: Investment securities 121,624 Foreign currency contracts (4,177) 117,447 Change in net unrealized appreciation (depreciation) on: Investment securities (15,656) Foreign currency contracts 2,378 (13,278) NET GAIN (LOSS) 104,169 NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM $ 116,690 OPERATIONS
STATEMENT OF CHANGES IN NET ASSETS
SIX MONTHS SIX MONTHS YEAR ENDED ENDED ENDED DECEMBER DECEMBER JUNE 30, 31, 31, 1993 1992 1993 (UNAUDITED) INCREASE (DECREASE) IN NET ASSETS Operations $ 12,521 $ 20,327 $ 31,653 Net investment income Net realized gain (loss) on investments 117,447 109,914 73,372 Change in net unrealized appreciation (13,278) (6,164) 2,968 (depreciation) on investments NET INCREASE (DECREASE) IN NET ASSETS 116,690 124,077 107,993 RESULTING FROM OPERATIONS Distributions to shareholders from: (16,555) (15,445) (33,522) Net investment income Net realized gain (179,779) (4,886) (40,532) TOTAL DISTRIBUTIONS (196,334) (20,331) (74,054) Share transactions 219,446 152,814 373,113 Net proceeds from sales of shares Reinvestment of distributions from: 12,907 11,772 24,965 Net investment income Net realized gain 154,302 4,147 34,111 Cost of shares redeemed (191,029) (187,111) (431,811) Net increase (decrease) in net assets resulting 195,626 (18,378) 378 from share transactions TOTAL INCREASE (DECREASE) IN NET ASSETS 115,982 85,368 34,317 NET ASSETS Beginning of period 1,439,482 1,354,114 1,319,797 End of period (including under (over) $ 1,555,464 $ 1,439,482 $ 1,354,114 distribution of net investment income of $(748), $16,897 and $12,015, respectively) OTHER INFORMATION Shares Sold 11,070 7,688 19,893 Issued in reinvestment of distributions from: 670 587 1,327 Net investment income Net realized gain 8,084 209 1,816 Redeemed (9,602) (9,496) (23,022) Net increase (decrease) 10,222 (1,012) 14
FINANCIAL HIGHLIGHTS SIX MONTHS SIX MONTHS YEARS ENDED DECEMBER 31, ENDED ENDED DECEMBER 31, JUNE 30, 1993 (UNAUDITED) 1993(diamond) 1992(diamond) 1991 1990 1989 1988
SELECTED PER-SHARE DATA Net asset value, beginning of period $ 20.42 $ 18.94 $ 18.46 $ 16.29 $ 17.93 $ 15.42 $ 13.58 Income from Investment Operations Net investment income .16 .29(triangle) .45 .53 .70(double dagger) .67 .55 Net realized and unrealized gain (loss) on investments 1.39 1.48 1.09 3.29 (1.60) 3.69 1.85 Total from investment operations 1.55 1.77 1.54 3.82 (.90) 4.36 2.40 Less Distributions From net investment income (.22) (.22) (.48) (.50) (.74) (.68) (.56) From net realized gain on investments (2.48) (.07) (.58) (1.15) - (1.17) - Total distributions (2.70) (.29) (1.06) (1.65) (.74) (1.85) (.56) Net asset value, end of period $ 19.27 $ 20.42 $ 18.94 $ 18.46 $ 16.29 $ 17.93 $ 15.42 TOTAL RETURN (dagger) 8.21% 9.39% 8.46% 24.15% (5.10)% 28.80% 17.85% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (in millions) $ 1,555 $ 1,439 $ 1,354 $ 1,320 $ 1,064 $ 1,087 $ 892 Ratio of expenses to average net assets .63%*# .66%* .67% .68% .66% .64% .67% Ratio of expenses to average net assets before voluntary expense .66%*# .66%* .67% .68% .66% .64% .67% limitation Ratio of net investment income to average net assets 1.64%* 2.94%*(triangle) 2.37% 2.84% 4.04%(double dagger) 3.76% 3.69% Portfolio turnover rate 235%* 261%* 151% 267% 259% 191% 175%
* ANNUALIZED (dagger) TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. (diamond) AS OF JANUARY 1, 1992, THE FUND DISCONTINUED THE USE OF EQUALIZATION ACCOUNTING. (double dagger) INVESTMENT INCOME PER SHARE REFLECTS A SPECIAL DIVIDEND WHICH AMOUNTED TO $.06 PER SHARE. (triangle) INVESTMENT INCOME PER SHARE REFLECTS A SPECIAL DIVIDEND FROM IMPERIAL CHEMICAL INDUSTRIES PLC ADR WHICH AMOUNTED TO $.06 PER SHARE. # SEE NOTE 6 OF NOTES TO FINANCIAL STATEMENTS. 29 SEMIANNUAL REPORT NOTES TO FINANCIAL STATEMENTS For the period ended December 31, 1993 (Unaudited) 1. SIGNIFICANT ACCOUNTING POLICIES. Fidelity Fund(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. On November 19, 1992, the Trustees approved a change in the fiscal year of the fund to June 30. 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. As a qualified regulated investment company under Subchapter M of the Internal Revenue Code, the fund is not 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, which includes accretion of original issue discount, is accrued as earned. Investment 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. DISTRIBUTIONS TO SHAREHOLDERS. Distributions are recorded on the ex-dividend date. 1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED DISTRIBUTIONS TO SHAREHOLDERS - CONTINUED Income and capital gain distributions are determined in accordance with income tax regulations which may differ from generally accepted accounting principles. These differences are primarily due to differing treatments for foreign currency transactions, market discount, partnerships, non-taxable dividends and losses deferred due to wash sales. The fund also utilized earnings and profits distributed to shareholders on redemption of shares as a part of the dividends paid deduction for income tax purposes. Permanent book and tax differences relating to shareholder distributions will result in reclassifications to paid in capital. 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. CHANGE IN ACCOUNTING FOR DISTRIBUTIONS TO SHAREHOLDERS. Effective July 1, 1993, the fund adopted Statement of Position 93-2: Determination, Disclosure, and Financial Statement Presentation of Income, Capital Gain, and Return of Capital Distributions by Investment Companies. As a result, the fund changed the classification of distributions to shareholders to better disclose the differences between financial statement amounts and distributions determined in accordance with income tax regulations. Accordingly, amounts as of June 30, 1993 have been reclassified to reflect an increase in paid in capital of $132,120,000, a decrease in undistributed net investment income of $13,611,000 and a decrease in accumulated net realized gain on investments of $118,509,000. 2. OPERATING POLICIES. FORWARD FOREIGN CURRENCY CONTRACTS. The fund may enter into forward foreign currency contracts. These contracts involve market risk in excess of the amount reflected in the fund's Statement of Assets and Liabilities. The face or contract amount in U.S. dollars reflects the total exposure the fund has in that particular currency contract. The U.S. dollar value of forward foreign currency contracts is determined using forward currency exchange rates supplied by a quotation service. Losses may arise due to changes in the value of the foreign currency or if the counterparty does not perform under the contract. Purchases and sales of forward foreign currency contracts having the same settlement date and broker are offset and presented net on the Statement of Assets and Liabilities. Gain (loss) on the purchase or sale of forward foreign currency contracts having the same settlement date and broker is recognized on the date of offset, otherwise gain (loss) is recognized on settlement date. 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 2. OPERATING POLICIES - CONTINUED REPURCHASE AGREEMENTS - CONTINUED 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. 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. 3. PURCHASES AND SALES OF INVESTMENTS. Purchases and sales of securities, other than short-term securities, aggregated $1,772,960,000 and $1,645,730,000, respectively, of which U.S. government and government agency obligations aggregated $49,595,000 and $108,440,000, respectively. 4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES. MANAGEMENT FEE. As the fund's investment adviser, FMR receives a monthly 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 .31% 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 .09%. For the period, the management fee was equivalent to an annualized rate of .40% of average net assets. DISTRIBUTION AND SERVICE PLAN. Pursuant to the Distribution and Service Plan (the Plan), and in accordance with Rule 12b-1 of the 1940 Act, FMR or the fund's distributor, Fidelity Distributors Corporation (FDC), an affiliate of FMR, may use their resources to pay administrative and promotional expenses related to the sale of the fund's shares. Subject to the approval of the Board of Trustees, the Plan also authorizes payments to third parties that assist in the sale of the fund's shares or render shareholder support services. FMR or FDC has informed the fund that payments made to third parties under the Plan amounted to $6,000 for the period. 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 AND SECURITY LENDING FEES. FSC maintains the fund's accounting records and administers the security lending program. The security lending 4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED ACCOUNTING AND SECURITY LENDING FEES - CONTINUED fee is based on the number and duration of lending transactions. The accounting 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 $1,009,000 for the period. 5. SECURITY LENDING. The fund loaned securities to certain brokers who paid the fund negotiated lenders' fees. These fees are included in interest income. The fund receives U.S. Treasury obligations and/or cash as collateral against the loaned securities, in an amount at least equal to 102% of the market value of the loaned securities at the inception of each loan. This collateral must be maintained at not less than 100% of the market value of the loaned securities during the period of the loan. At period end, the value of the securities loaned and the value of collateral amounted to $5,246,000 and $5,427,000, respectively. 6. EXPENSE REDUCTIONS. FMR has directed certain portfolio trades to brokers who paid a portion of the fund's expenses. For the period, the fund's expenses were reduced by $204,000 under this arrangement. 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 For quotes on funds you own. 1. For an individual fund quote. 2. For the ten most frequently requested Fidelity fund quotes. 3. For quotes on Fidelity Select Portfolios.(Registered trademark) 4. To change your Personal Identification Number (PIN). 5. To speak with a Fidelity representative. 6. (PHONE_GRAPHIC)(PHONE_GRAPHIC)MUTUAL FUND ACCOUNT BALANCES 1-800-544-7544 Just make a selection from this record- ed menu: PRESS For balances on funds you own. 1. For your most recent fund activity (purchases, redemptions, and dividends). 2. To change your Personal Identification Number (PIN). 3. To speak with a Fidelity representative. 4. * 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 TO VISIT FIDELITY For directions and hours, please call 1-800-544-9797. ARIZONA 7373 N. Scottsdale Road Scottsdale, AZ CALIFORNIA 851 Hamilton Avenue Campbell, CA 527 North Brand Boulevard Glendale, CA 19100 Von Karman Avenue Irvine, CA 10100 Santa Monica Blvd. Los Angeles, CA 811 Wilshire Boulevard Los Angeles, CA 251 University Avenue Palo Alto, CA 1760 Challenge Way Sacramento, CA 7676 Hazard Center Drive San Diego, CA 455 Market Street San Francisco, CA 1400 Civic Drive Walnut Creek, CA COLORADO 1625 Broadway Denver, CO CONNECTICUT 185 Asylum Street Hartford, CT 265 Church Street New Haven, CT 300 Atlantic Street Stamford, CT DELAWARE 222 Delaware Avenue Wilmington, DE FLORIDA 4400 N. Federal Highway Boca Raton, FL 2249 Galiano Street Coral Gables, FL 4090 N. Ocean Boulevard Ft. Lauderdale, FL 4001 Tamiami Trail, North Naples, FL 32 West Central Boulevard Orlando, FL 2401 PGA Boulevard Palm Beach Gardens, FL 8065 Beneva Road Sarasota, FL 2000 66th Street, North St. Petersburg, FL GEORGIA 3525 Piedmont Road, N.E. Atlanta, GA 1000 Abernathy Road Atlanta, GA HAWAII 700 Bishop Street Honolulu, HI ILLINOIS 215 East Erie Street Chicago, IL One North Franklin Chicago, IL 540 Lake Cook Road Deerfield, IL 1415 West 22nd Street Oak Brook, IL 1700 East Golf Road Schaumburg, IL LOUISIANA 201 St. Charles Avenue New Orleans, LA MAINE 3 Canal Plaza Portland, ME MARYLAND 1 West Pennsylvania Ave. Towson, MD 7401 Wisconsin Avenue Bethesda, MD MASSACHUSETTS 470 Boylston Street Boston, MA 21 Congress Street Boston, MA 25 State Street Boston, MA 300 Granite Street Braintree, MA 101 Cambridge Street Burlington, MA 416 Belmont Street Worcester, MA MICHIGAN 280 North Woodward Ave. Birmingham, MI 26955 Northwestern Hwy. Southfield, MI MINNESOTA 38 South Sixth Street Minneapolis, MN MISSOURI 700 West 47th Street Kansas City, MO 200 North Broadway St. Louis, MO NEW JERSEY 60B South Street Morristown, NJ 501 Route 17, South Paramus, NJ 505 Millburn Avenue Short Hills, NJ NEW YORK 1050 Franklin Avenue Garden City, NY 999 Walt Whitman Road Melville, L.I., NY 71 Broadway New York, NY 350 Park Avenue New York, NY 10 Bank Street White Plains, NY NORTH CAROLINA 2200 West Main Street Durham, NC OHIO 600 Vine Street Cincinnati, OH 1903 East Ninth Street Cleveland, OH 28699 Chagrin Boulevard Woodmere Village, OH OREGON 121 S.W. Morrison Street Portland, OR PENNSYLVANIA 1735 Market Street Philadelphia, PA 439 Fifth Avenue Pittsburgh, PA TENNESSEE 5100 Poplar Avenue Memphis, TN TEXAS 10000 Research Boulevard Austin, TX 7001 Preston Road Dallas, TX 1155 Dairy Ashford Houston, TX 1010 Lamar Street Houston, TX 2701 Drexel Drive Houston, TX 400 East Las Colinas Blvd. Irving, TX 14100 San Pedro San Antonio, TX UTAH 175 East 400 South Street Salt Lake City, UT VERMONT 199 Main Street Burlington, VT VIRGINIA 8180 Greensboro Drive McLean, VA WASHINGTON 411 108th Avenue, N.E. Bellevue, WA 1001 Fourth Avenue Seattle, WA WASHINGTON, DC 1775 K Street, N.W. Washington, DC WISCONSIN 222 East Wisconsin Avenue Milwaukee, WI 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 * Gerald C. McDonough * Thomas R. Williams * GENERAL DISTRIBUTOR Fidelity Distributors Corporation Boston, MA TRANSFER AND SHAREHOLDER SERVICING AGENT Fidelity Service Co. Boston, MA CUSTODIAN The Chase Manhattan Bank, N.A. New York, NY FIDELITY'S GROWTH AND INCOME FUNDS Balanced Fund Convertible Securities Fund Equity-Income Fund Equity-Income II Fund Fidelity Fund Global Balanced Fund Growth & Income Portfolio Market Index Fund Puritan Fund Real Estate Investment Portfolio Utilities Income 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-----