0000035348-95-000006.txt : 19950815
0000035348-95-000006.hdr.sgml : 19950815
ACCESSION NUMBER: 0000035348-95-000006
CONFORMED SUBMISSION TYPE: N-30D
PUBLIC DOCUMENT COUNT: 1
CONFORMED PERIOD OF REPORT: 19950630
FILED AS OF DATE: 19950814
SROS: NONE
FILER:
COMPANY DATA:
COMPANY CONFORMED NAME: FIDELITY HASTINGS STREET TRUST
CENTRAL INDEX KEY: 0000035348
STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000]
IRS NUMBER: 046026953
STATE OF INCORPORATION: MA
FISCAL YEAR END: 0630
FILING VALUES:
FORM TYPE: N-30D
SEC ACT: 1940 Act
SEC FILE NUMBER: 811-00215
FILM NUMBER: 95562379
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: MAIL ZONE ZH-1
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-30D
1
(2_FIDELITY_LOGOS)
FIDELITY
FUND
ANNUAL REPORT
JUNE 30, 1995
CONTENTS
PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.
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 past six
months.
INVESTMENTS 10 A complete list of the fund's
investments with their market
values.
FINANCIAL STATEMENTS 24 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.
NOTES 28 Notes to the financial statements.
REPORT OF INDEPENDENT 32 The auditors' opinion.
ACCOUNTANTS
DISTRIBUTIONS 33
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL
INFORMA-
TION 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.
MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED
BY, ANY DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC, THE
FEDERAL RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO
INVESTMENT RISK, INCLUDING THE POSSIBLE LOSS OF PRINCIPAL.
NEITHER THE FUND NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK.
FOR MORE INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND EXPENSES,
CALL
1-800-544-8888 FOR A FREE PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST
OR SEND MONEY.
PRESIDENT'S MESSAGE
DEAR SHAREHOLDER:
Although there have been positive market indications so far in 1995, no one
can predict what lies ahead for investors. Last year, stocks posted
below-average returns and bonds had one of the worst years in history. This
downturn followed a period in which the investing environment was generally
very positive.
These market ups and downs are a normal part of investing, and there are
some basic principles that are helpful for investors to remember in
different types of markets.
If you can leave your money invested over the long term, you can avoid the
results of the volatility that generally accompanies the stock market in
the short term, as we witnessed last year. You also can help to manage some
of the risks of investing through diversification. A stock fund is already
diversified because it invests in many issues. You can diversify even
further by placing some of your money in several different types of stock
funds or in other investment categories, such as bonds.
If you have a short investment time horizon, you might want to consider
moving some of your investment into a money market fund, which seeks income
and a stable share price by investing in high-quality, short-term
investments. Of course, there is no assurance that a money market fund will
achieve its goal, and it is important to remember that money market funds
are not insured or guaranteed by any agency of the U.S. government.
Finally, no matter what your investment horizon or portfolio diversity, it
makes good sense to follow a regular investment plan - investing a certain
amount of money at the same time each month or quarter - and to review your
portfolio periodically. A periodic investment plan will not, of course,
assure a profit or protect against a loss.
If you have any questions, please call us at 1-800-544-8888. We stand ready
to provide the information you need to make the investments that are right
for you.
Best regards,
Edward C. Johnson 3d
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 JUNE 30, 1995 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
Fidelity Fund 21.09% 74.10% 261.71%
S&P 500(registered trademark) 26.07% 76.98% 293.40%
Average Growth & Income Fund 19.74% 69.84% 227.71%
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, one, five, or 10 years. For example, if
you invested $1,000 in a fund that had a 5% return over the past year, the
value of your investment would be $1,050. You can compare the fund's
returns to the performance of the Standard & Poor's Composite Index of 500
Stocks - a common proxy for the U.S. stock market. To measure how the
fund's performance stacked up against its peers, you can compare it to the
average growth & income fund, which reflects the performance of 374 growth
& income funds with similar objectives tracked by Lipper Analytical
Services over the past 12 months. Both benchmarks include reinvested
dividends and capital gains, if any.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JUNE 30, 1995 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
Fidelity Fund 21.09% 11.73% 13.72%
S&P 500(registered trademark) 26.07% 12.09% 14.68%
Average Growth & Income Fund 19.74% 11.06% 12.47%
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) Standard & Poor's
06/30/85 10000.00 10000.00
07/31/85 10072.29 9985.00
08/31/85 10048.19 9900.13
09/30/85 9714.46 9590.25
10/31/85 10139.73 10033.32
11/30/85 10692.59 10721.61
12/31/85 11171.26 11240.54
01/31/86 11455.49 11303.48
02/28/86 12495.39 12148.98
03/31/86 13120.13 12826.90
04/30/86 12953.35 12681.95
05/31/86 13405.05 13356.63
06/30/86 13575.15 13582.36
07/31/86 12812.03 12823.10
08/31/86 13547.14 13774.58
09/30/86 12632.26 12635.42
10/31/86 13203.57 13364.49
11/30/86 13295.26 13689.24
12/31/86 12932.17 13340.17
01/31/87 14430.85 15137.09
02/28/87 15289.74 15735.00
03/31/87 15708.69 16189.74
04/30/87 15612.26 16045.65
05/31/87 15664.86 16185.25
06/30/87 16148.62 17002.61
07/31/87 17119.30 17864.64
08/31/87 17401.68 18530.99
09/30/87 17270.87 18125.16
10/31/87 13008.65 14221.00
11/30/87 12351.55 13049.19
12/31/87 13356.19 14042.23
01/31/88 13690.58 14633.41
02/29/88 14575.75 15315.33
03/31/88 14308.19 14842.09
04/30/88 14526.33 15006.83
05/31/88 14595.74 15137.39
06/30/88 15423.55 15832.20
07/31/88 15273.61 15772.04
08/31/88 14853.79 15235.79
09/30/88 15366.31 15884.83
10/31/88 15688.75 16326.43
11/30/88 15487.23 16092.96
12/31/88 15740.05 16374.59
01/31/89 16607.69 17573.21
02/28/89 16281.05 17135.64
03/31/89 16680.06 17534.90
04/30/89 17564.45 18444.96
05/31/89 18428.28 19191.98
06/30/89 18365.00 19082.58
07/31/89 19793.62 20805.74
08/31/89 20280.17 21213.53
09/30/89 20250.60 21126.56
10/31/89 19573.50 20636.42
11/30/89 19854.76 21057.41
12/31/89 20273.38 21562.78
01/31/90 19187.91 20115.92
02/28/90 19583.66 20375.42
03/31/90 19969.03 20915.36
04/30/90 19456.71 20392.48
05/31/90 20902.58 22380.75
06/30/90 20776.38 22228.56
07/31/90 20581.56 22157.43
08/31/90 19103.27 20154.40
09/30/90 18248.24 19172.88
10/31/90 18052.02 19090.43
11/30/90 18848.43 20323.68
12/31/90 19240.06 20890.71
01/31/91 20480.21 21801.54
02/28/91 21826.66 23360.35
03/31/91 22324.87 23925.67
04/30/91 22348.64 23983.09
05/31/91 23477.96 25019.16
06/30/91 22177.45 23873.28
07/31/91 23170.30 24985.78
08/31/91 23553.08 25577.94
09/30/91 23349.80 25150.79
10/31/91 23578.48 25487.81
11/30/91 22158.24 24460.65
12/31/91 23885.77 27258.95
01/31/92 24261.01 26751.94
02/29/92 24946.78 27099.71
03/31/92 24191.77 26571.27
04/30/92 24361.03 27352.46
05/31/92 24582.38 27486.49
06/30/92 24244.80 27076.94
07/31/92 24768.17 28184.39
08/31/92 24257.89 27606.61
09/30/92 24505.61 27932.36
10/31/92 24807.98 28030.13
11/30/92 25360.15 28985.95
12/31/92 25906.61 29342.48
01/31/93 26590.52 29588.96
02/28/93 26821.65 29991.37
03/31/93 27618.32 30624.19
04/30/93 27618.32 29883.08
05/31/93 28294.63 30683.95
06/30/93 28338.00 30772.93
07/31/93 28365.75 30649.84
08/31/93 29685.96 31811.47
09/30/93 29957.37 31566.52
10/31/93 30452.66 32219.95
11/30/93 29642.19 31913.86
12/31/93 30663.50 32300.02
01/31/94 31968.32 33398.22
02/28/94 31331.82 32493.12
03/31/94 29906.91 31076.42
04/30/94 30610.22 31474.20
05/31/94 30578.25 31990.38
06/30/94 29871.53 31206.62
07/31/94 30850.66 32230.19
08/31/94 32192.61 33551.63
09/30/94 31516.28 32729.61
10/31/94 32193.32 33466.03
11/30/94 31059.28 32247.20
12/31/94 31454.85 32725.42
01/31/95 31403.78 33573.99
02/28/95 32476.11 34882.37
03/31/95 33653.37 35911.75
04/30/95 34474.61 36969.35
05/31/95 35056.31 38447.02
06/30/95 36170.95 39340.14
$10,000 OVER 10 YEARS: Let's say
you invested $10,000 in Fidelity Fund on June 30, 1985. As the chart shows,
by June 30, 1995, the value of your investment would have grown to $36,171
- a 261.71% increase on your initial investment. For comparison, look at
how the S&P 500 did over the same period. With dividends reinvested, the
same investment would have grown to $39,340 - a 293.40% 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
MARKET RECAP
Strong corporate earnings and a
favorable interest rate
environment helped the U.S.
stock market post strong returns
for the 12 months ended June 30,
1995. The Standard & Poor's
Composite Index of 500 Stocks
finished the 12-month period with
a total return of 26.07% - well
above its historical annual
average of roughly 12%. With
inflation posing little threat,
interest rates fell during the first
half of 1995. Large-capitalization
stocks led the somewhat narrow
market rally. While consumer
nondurable and financial stocks
generally performed well,
technology companies - whose
goods and services benefited
from both corporate and
consumer demand - posted the
strongest earnings growth and
stock price gains. In February, the
Dow Jones Industrial Average
closed above 4000 for the first
time, and continued hitting record
highs before closing the period at
4556.10. Returns from foreign
markets were varied, as investors
brought capital back to the U.S.
Emerging foreign markets
rebounded somewhat from
Mexico's devaluation of the peso
in December 1994. The Morgan
Stanley Emerging Markets Free
Index was down 0.02% for the 12
months ended June 30. The
Morgan Stanley EAFE (Europe,
Australia, Far East) Index
returned 1.65% for the year
ended June 30. European
markets have fared well through
the first half of 1995 - after a
difficult year in 1994 - while the
Japanese market has continued
to struggle.
An interview with Beth Terrana, Portfolio Manager of Fidelity Fund
Q. BETH, HOW DID THE FUND DO OVER THE PAST YEAR?
A. For the 12 months ended June 30, 1995, the fund had a total return of
21.09%. That outpaced the average growth and income fund, which returned
19.74% during the same period, according to Lipper Analytical Services.
Q. IT'S BEEN A STRONG PAST 12 MONTHS FOR THE STOCK MARKET. WHAT,
SPECIFICALLY, DROVE THE FUND'S PERFORMANCE?
A. I would say that how the fund's investments broke down by sector or
industry wasn't nearly as important to its performance as was a core group
of stocks that were among the fund's largest investments through much of
the year. It was these top 10 or 20 stocks that really drove performance.
Several - such as British Petroleum, Scott Paper, and chemicals and
plastics producer Hercules - were successful corporate restructuring
stories. Other stocks, such as Philip Morris, were extremely cheap when I
bought them, and have since risen in price to more closely reflect their
growth rates. Yet another, American Cyanamid, benefited from a takeover -
in this case by American Home Products.
Q. DURING THE PAST SIX MONTHS, TECHNOLOGY FAR AND AWAY HAS BEEN THE
MARKET'S STRONGEST PERFORMING SECTOR. HAS THE FUND CAPITALIZED?
A. It has. The fund had a 12.1% investment in technology stocks on June 30.
In fact, IBM and Intel were the two largest positive contributors to the
fund's performance over the past six months. I've talked about IBM before;
the company continued to benefit from effective cost cutting and is
generating a very strong cash flow. As for Intel, worldwide demand for
computer chips shows no signs of slowing, and the company's earnings have
exceeded most analysts' expectations. The overall technology story is
simple: businesses worldwide are embracing technology as the most effective
means to improve corporate productivity, which has led to rapid earnings
growth for companies that provide technological goods and services.
Actually, productivity improvement has become a central investing theme for
the fund.
Q. HOW SO?
A. In order to thrive in the competitive global economy, businesses have to
become the low-cost producers within their given industries. The way to do
that is to improve productivity by roughly 5% to 8% a year, year in and
year out. Many companies have completed the first step - cutting costs,
mainly by downsizing their workforces. But at some point, you have to make
your existing workforce substantially more productive, and technology does
that for you. So many U.S. companies have realized this that our country
has become the world's low-cost producer of goods and services. That makes
U.S. manufacturers well positioned to benefit from a global economic
recovery.
Q. DOES THIS THEME PLAY OUT IN OTHER SECTORS OF THE FUND BESIDES
TECHNOLOGY?
A. Yes. I've maintained a substantial investment in traditional cyclical
stocks - those that generally benefit from strong economic activity. These
companies have taken the steps I just described, and I believe they're
primed for strong earnings growth over the next few years. Examples include
heavy equipment manufacturer Caterpillar, farm equipment producer Deere,
and railroads such as Burlington Northern and CSX.
Q. BETH, WHAT WAS YOUR BIGGEST INVESTING REGRET OVER THE PAST YEAR?
A. That I didn't increase the fund's investments in financial stocks,
namely banks, sooner. Last fall, I felt that bank stocks weren't cheap and
that, in an environment of higher interest rates, banks would have a
tougher time growing earnings. That's why the fund's investments in the
financial sector totaled just 3.1% six months ago. As it turned out, banks
were able to grow earnings through effective cost cutting and industry
consolidation, and the stocks rallied. I have since increased the fund's
stake in this sector to 14.0% through purchases of stocks such as Citicorp,
Chemical Banking, Chase Manhattan and First Chicago. Because they've
cleaned up their balance sheets, many banks are generating a lot of excess
cash. They've been using this excess capital to buy back their own stocks,
which obviously enhances shareholder value. Because of the steps banks have
taken to improve their fiscal health, I believe they may have the ability
to sustain solid earnings growth even in the event of a short-term downturn
in the economy.
Q. WHAT'S YOUR OUTLOOK FOR THE REST
OF 1995?
A. One thing that has helped the stock market recently is large inflows of
cash. Corporations continue to buy back their own stocks and individual
investors continue to pour money into the market. These supply/demand
characteristics for stocks should remain positive. However, where the
market goes from here will depend heavily on the direction of the economy
and interest rates, and those are tough things to predict. I'll continue to
focus on my core themes, and try to find new ways that the fund can profit
from this theme of improving productivity. As always, I'll emphasize those
companies with attractive stock valuations and solid prospects for earnings
growth.
FUND FACTS
GOAL: to increase the value
of the fund's shares over the
long term by investing mainly
in equity securities with good
prospects for growth and
current income
START DATE: April 30, 1930
SIZE: as of June 30, 1995,
more than $2.4 billion
MANAGER: Beth Terrana,
since August 1993; manager,
Fidelity Equity-Income Fund,
Fidelity Advisor Equity
Portfolio Income, VIP:
Equity-Income Portfolio,
1990-1993; Fidelity Growth &
Income Portfolio, 1985-1990;
joined Fidelity in 1983
(checkmark)
BETH TERRANA ON THE FUND'S
"FARM THEME:"
"I've positioned a portion of the
fund to capitalize on what I
believe is a favorable outlook
for U.S. companies that export
food and farm-related
products. Often, when people
think of selling U.S. goods in
emerging markets in Asia and
Latin America, they think of
products like Coke, Pepsi and
Marlboro cigarettes. But not
many people talk about the
inclusion of chicken and beef in
the diet of people who live in
these countries, and their efforts
to upgrade their agricultural
capabilities.
"This theme has led the fund to
invest in beef and pork
producer IBP, fertilizer
manufacturers such as Potash
Corporation of Saskatchewan
and Agrium, and farm
equipment manufacturer
Deere, among others. Not only
are U.S. companies providing
food for people in these
countries, they're helping them
help themselves."
INVESTMENT CHANGES
TOP TEN STOCKS AS OF JUNE 30, 1995
% OF FUND'S % OF FUND'S INVESTMENTS
INVESTMENTS IN THESE STOCKS
6 MONTHS AGO
Philip Morris Companies, Inc. 2.4 1.6
Hercules, Inc. 1.8 1.8
British Petroleum PLC ADR 1.8 2.6
Intel Corp. 1.5 0.0
Federal National Mortgage
Association 1.4 0.8
Viacom, Inc. Class B (non-vtg.) 1.4 0.9
International Business Machines 1.3 2.2
Corp.
Mobil Corp. 1.3 1.3
Tyco International Ltd. 1.3 1.2
Scott Paper Co. 1.2 1.6
TOP FIVE MARKET SECTORS AS OF JUNE 30, 1995
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE SECTORS
6 MONTHS AGO
Finance 14.0 3.1
Technology 12.1 9.9
Basic Industries 8.1 7.0
Media & Leisure 8.1 5.2
Nondurables 6.6 5.5
ASSET ALLOCATION
AS OF JUNE 30, 1995* AS OF DECEMBER 31, 1994**
Row: 1, Col: 1, Value: 4.5
Row: 1, Col: 2, Value: 3.9
Row: 1, Col: 3, Value: 41.6
Row: 1, Col: 4, Value: 50.0
Stocks 76.8%
Bonds 9.4%
Short-term
investments 13.8%
FOREIGN
INVESTMENTS 8.1%
Stocks 91.6%
Bonds 3.9%
Short-term
investments 4.5%
FOREIGN
INVESTMENTS 8.4%
Row: 1, Col: 1, Value: 13.8
Row: 1, Col: 2, Value: 9.4
Row: 1, Col: 3, Value: 26.8
Row: 1, Col: 4, Value: 50.0
*
**
INVESTMENTS JUNE 30, 1995
Showing Percentage of Total Value of Investment in Securities
COMMON STOCKS - 89.1%
SHARES VALUE (NOTE 1)
(000S)
AEROSPACE & DEFENSE - 4.4%
AEROSPACE & DEFENSE - 3.1%
Alliant Techsystems, Inc. (a) 264,300 $ 11,035
Boeing Co. 249,800 15,644
General Motors Corp. Class H 260,500 10,290
Lockheed Martin Corp. 172,074 10,862
Northrop Corp. 64,700 3,372
Precision Castparts Corp. 213,500 7,499
Rockwell International Corp. 287,300 13,144
Thiokol Corp. 79,300 2,399
74,245
DEFENSE ELECTRONICS - 0.7%
Loral Corp. 112,900 5,843
Raytheon Co. 154,400 11,985
17,828
SHIP BUILDING & REPAIR - 0.6%
General Dynamics Corp. 336,100 14,914
TOTAL AEROSPACE & DEFENSE 106,987
BASIC INDUSTRIES - 8.0%
CHEMICALS & PLASTICS - 5.7%
Agrium, Inc. (a) 324,900 11,008
du Pont (E.I.) de Nemours & Co. 243,700 16,754
First Mississippi Corp. 94,600 3,228
Grace (W.R.) & Co. 377,300 23,157
Hercules, Inc. 905,800 44,158
Potash Corp. of Saskatchewan 471,700 26,377
Raychem Corp. 380,200 14,590
139,272
IRON & STEEL - 0.1%
Nucor Corp. 28,900 1,546
METALS & MINING - 0.3%
Freeport-McMoRan, Inc. 398,800 7,029
PACKAGING & CONTAINERS - 0.7%
Corning, Inc. 481,900 15,782
PAPER & FOREST PRODUCTS - 1.2%
Scott Paper Co. 604,500 29,923
TOTAL BASIC INDUSTRIES 193,552
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
CONGLOMERATES - 3.2%
Allied-Signal, Inc. 359,200 $ 15,984
Crane Co. 200,000 7,250
Mark IV Industries, Inc. 276,150 5,937
Tyco International Ltd. 573,308 30,960
United Technologies Corp. 228,600 17,859
77,990
CONSTRUCTION & REAL ESTATE - 2.3%
BUILDING MATERIALS - 0.4%
Armstrong World Industries, Inc. 165,400 8,291
REAL ESTATE INVESTMENT TRUSTS - 1.9%
Camden Property Trust 189,100 4,137
Duke Realty Investors, Inc. 168,500 4,760
Equity Residential Property Trust 280,000 7,804
Highwoods Properties, Inc. 30,900 788
Home Properties of NY 75,900 1,338
Innkeepers USA Trust 75,900 674
Kimco Realty Corp. 160,500 6,099
RFS Hotel Investors, Inc. 404,100 6,162
Shurgard Storage Centers, Inc. 105,800 2,433
Starwood Lodging Trust 29,200 672
Storage USA, Inc. 224,900 6,382
Storage Equities, Inc. 183,100 2,998
Summit Property Trust 118,300 2,041
46,288
TOTAL CONSTRUCTION & REAL ESTATE 54,579
DURABLES - 2.6%
AUTOS, TIRES, & ACCESSORIES - 1.0%
Chrysler Corp. 73,200 3,504
Dana Corp. 100,000 2,863
Echlin, Inc. 217,500 7,558
Magna International, Inc. Class A 210,600 9,341
23,266
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
DURABLES - CONTINUED
CONSUMER ELECTRONICS - 1.0%
Black & Decker Corp. 375,800 $ 11,602
Sunbeam-Oster, Inc. 348,100 4,830
Whirlpool Corp. 156,700 8,619
25,051
HOME FURNISHINGS - 0.0%
Ethan Allen Interiors, Inc. (a) 37,500 666
TEXTILES & APPAREL - 0.6%
Cygne Designs, Inc. (a) 337,500 1,983
Mohawk Industries, Inc. (a) 109,000 1,607
Warnaco Group, Inc. Class A 525,100 10,502
14,092
TOTAL DURABLES 63,075
ENERGY - 5.6%
ENERGY SERVICES - 1.4%
ENSCO International, Inc. (a) 245,625 3,899
Marine Drilling Cos., Inc. (a) 187,700 739
Nabors Industries, Inc. (a) 669,920 5,528
Schlumberger Ltd. 337,000 20,936
Wilrig AS (a) 231,700 2,371
33,473
OIL & GAS - 4.2%
British Petroleum PLC ADR 515,188 44,112
Canada Occidental Petroleum Ltd. 205,900 6,395
Mobil Corp. 326,800 31,373
Renaissance Energy Ltd. (a) 119,500 2,471
Total SA:
Class B 134,442 8,108
sponsored ADR 320,000 9,680
102,139
TOTAL ENERGY 135,612
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
FINANCE - 13.8%
BANKS - 7.6%
Bank of Boston Corp. 231,000 $ 8,663
BankAmerica Corp. 359,100 18,898
Bankers Trust New York Corp. 239,600 14,855
BayBanks, Inc. 23,900 1,894
Chase Manhattan Corp. 311,200 14,626
Chemical Banking Corp. 506,900 23,951
Citicorp 403,800 23,370
First Bank System, Inc. 390,300 16,002
First Chicago Corp. 335,400 20,082
First Fidelity Bancorporation 95,900 5,658
First Tennessee National Corp. 95,300 4,420
Integra Financial Corp. 33,700 1,639
Norwest Corp. 199,800 5,744
Republic New York Corp. 157,700 8,831
Shawmut National Corp. 446,800 14,242
182,875
CREDIT & OTHER FINANCE - 1.5%
American Express Co. 522,364 18,348
Beneficial Corp. 124,400 5,474
Countrywide Credit Industries, Inc. 548,500 11,518
35,340
FEDERAL SPONSORED CREDIT - 1.7%
Federal Home Loan Mortgage Corporation 115,400 7,934
Federal National Mortgage Association 354,700 33,475
41,409
INSURANCE - 2.0%
AFLAC, Inc. 110,500 4,834
American International Group, Inc. 134,800 15,367
American Reinsurance Corp. 143,000 5,326
General Re Corp. 82,700 11,071
Reliastar Financial Corp. 311,000 11,897
48,495
SAVINGS & LOANS - 0.2%
Charter One Financial Corp. 199,300 4,883
SECURITIES INDUSTRY - 0.8%
Merrill Lynch & Co., Inc. 385,200 20,223
TOTAL FINANCE 333,225
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
HEALTH - 6.0%
DRUGS & PHARMACEUTICALS - 0.3%
SmithKline Beecham PLC ADR 184,500 $ 8,349
MEDICAL EQUIPMENT & SUPPLIES - 4.5%
Acuson Corp. (a) 126,700 1,536
Baxter International, Inc. 657,700 23,924
Johnson & Johnson 225,200 15,229
Medtronic, Inc. 30,900 2,383
Millipore Corp. 136,800 9,234
Nellcor, Inc. (a) 319,900 14,396
Pall Corp. 550,800 12,255
Puritan Bennett Corp. 170,800 6,597
St. Jude Medical, Inc. 287,000 14,386
Spacelabs Medical, Inc. (a) 124,900 3,169
Sunrise Medical, Inc. (a) 154,400 4,806
107,915
MEDICAL FACILITIES MANAGEMENT - 1.2%
Apria Healthcare Group, Inc. 354,200 10,006
Columbia/HCA Healthcare Corp. 317,175 13,718
Community Health Systems, Inc. (a) 134,000 4,539
Lincare Holdings, Inc. (a) 35,800 951
29,214
TOTAL HEALTH 145,478
HOLDING COMPANIES - 0.2%
U.S. Industries, Inc. (a) 322,600 4,395
INDUSTRIAL MACHINERY & EQUIPMENT - 5.9%
ELECTRICAL EQUIPMENT - 1.5%
Charter Power Systems, Inc. 87,700 2,105
Emerson Electric Co. 190,700 13,635
General Electric Co. 198,700 11,201
Philips Electronics NV 78,100 3,339
Philips Electronics NV (Bearer) 149,500 6,337
36,617
INDUSTRIAL MACHINERY & EQUIPMENT - 2.9%
Caterpillar, Inc. 415,500 26,695
Deere & Co. 286,800 24,557
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
INDUSTRIAL MACHINERY & EQUIPMENT - CONTINUED
INDUSTRIAL MACHINERY & EQUIPMENT - CONTINUED
Dover Corp. 21,300 $ 1,550
Greenfield Industries, Inc. 284,500 8,251
Imo Industries, Inc. (a) 86,600 779
Ingersoll-Rand Co. 176,600 6,755
McDermott (J. Ray) SA 108,100 2,392
70,979
POLLUTION CONTROL - 1.5%
Browning-Ferris Industries, Inc. 207,300 7,489
Safety Kleen Corp. 251,000 4,047
Sanifill, Inc. (a) 89,300 2,802
WMX Technologies, Inc. 547,400 15,533
Western Waste Industries, Inc. (a) 250,400 5,039
34,910
TOTAL INDUSTRIAL MACHINERY & EQUIPMENT 142,506
MEDIA & LEISURE - 6.0%
BROADCASTING - 2.1%
Capital Cities/ABC, Inc. 79,900 8,380
Lin Television Corp. (a) 196,100 6,594
Sinclair Broadcast Group, Inc. Class A (a) 57,700 1,616
Viacom, Inc. (a):
Class B (warrants) 194,500 717
Class B (non-vtg.) 705,493 32,716
50,023
LEISURE DURABLES & TOYS - 0.3%
Hasbro, Inc. 207,600 6,591
LODGING & GAMING - 2.2%
Circus Circus Enterprises, Inc. (a) 292,400 10,307
Host Marriott Corp. (a) 751,100 7,980
La Quinta Motor Inns, Inc. 503,913 13,606
Marriott International, Inc. 403,000 14,458
Primadonna Resorts, Inc. (a) 93,100 2,234
Red Lion Inns LP 169,200 3,744
52,329
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
MEDIA & LEISURE - CONTINUED
PUBLISHING - 1.4%
Meredith Corp. 492,300 $ 12,492
Nelson Thomas, Inc. 21,200 408
News Corp. Ltd.:
ADR 537,300 12,157
(vtg.) (Pfd. Reg.) sponsored ADR 40,600 812
Times Mirror Co. Class A 390,700 9,328
35,197
RESTAURANTS - 0.0%
Darden Restaurants, Inc. (a) 20,900 227
TOTAL MEDIA & LEISURE 144,367
NONDURABLES - 6.4%
AGRICULTURE - 0.4%
DEKALB Genetics Corp. Class B 99,000 4,356
Pioneer Hi-Bred International, Inc. 114,700 4,817
9,173
FOODS - 1.5%
ConAgra, Inc. 412,800 14,396
IBP, Inc. 384,750 16,737
RalCorp Holdings, Inc. (a) 225,300 5,154
Tyson Foods, Inc. 39,700 918
37,205
HOUSEHOLD PRODUCTS - 2.1%
Avon Products, Inc. 246,300 16,502
Colgate-Palmolive Co. 223,400 16,336
First Brands Corp. 231,700 9,934
Tambrands, Inc. 152,700 6,528
49,300
TOBACCO - 2.4%
Philip Morris Companies, Inc. 795,300 59,151
TOTAL NONDURABLES 154,829
RETAIL & WHOLESALE - 3.4%
APPAREL STORES - 0.8%
Norton McNaughton, Inc. (a) 235,700 3,653
Talbots, Inc. 393,700 15,650
19,303
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
RETAIL & WHOLESALE - CONTINUED
DRUG STORES - 0.5%
Revco (D.S.), Inc. (a) 135,500 $ 3,252
Walgreen Co. 186,300 9,338
12,590
GENERAL MERCHANDISE STORES - 1.5%
Consolidated Stores Corp. (a) 769,500 16,063
Dayton Hudson Corp. 64,800 4,649
Lechters, Inc. (a) 519,400 8,051
Price/Costco, Inc. (a) 134,500 2,186
Woolworth Corp. 446,300 6,750
37,699
RETAIL & WHOLESALE, MISCELLANEOUS - 0.6%
Global Direct Mail Corp. 22,500 444
Lowe's Companies, Inc. 239,800 7,164
Williams-Sonoma, Inc. (a) 264,800 5,826
13,434
TOTAL RETAIL & WHOLESALE 83,026
SERVICES - 1.5%
ADVERTISING - 0.7%
Omnicom Group, Inc. 294,100 17,830
SERVICES - 0.8%
ADT Ltd. (a) 523,300 6,148
Block (H & R), Inc. 48,800 2,007
Comdata Holdings Corp. (a) 35,200 534
Norrell Corp. GA 297,700 5,656
Regis Corp. (a) 128,500 2,474
Supercuts, Inc. (a) 278,700 2,195
19,014
TOTAL SERVICES 36,844
TECHNOLOGY - 11.2%
COMMUNICATIONS EQUIPMENT - 1.1%
DSC Communications Corp. (a) 307,100 14,280
Nokia Corp. AB sponsored ADR 204,500 12,193
26,473
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
TECHNOLOGY - CONTINUED
COMPUTER SERVICES & SOFTWARE - 1.5%
Automatic Data Processing, Inc. 155,800 $ 9,796
Chipcom Corp. (a) 96,700 2,297
Landmark Graphics Corp. (a) 74,000 1,887
Microsoft Corp. (a) 109,900 9,932
Novell, Inc. (a) 634,300 12,646
Shared Medical Systems Corp. 12,700 510
37,068
COMPUTERS & OFFICE EQUIPMENT - 5.1%
Apple Computer, Inc. 79,900 3,710
Compaq Computer Corp. (a) 577,900 26,223
Hewlett-Packard Co. 235,500 17,545
International Business Machines Corp. 330,300 31,709
Pitney Bowes, Inc. 203,700 7,817
Silicon Graphics, Inc. (a) 143,500 5,722
Sun Microsystems, Inc. (a) 318,750 15,459
Xerox Corp. 137,400 16,110
124,295
ELECTRONIC INSTRUMENTS - 0.2%
Perkin-Elmer Corp. 116,700 4,143
ELECTRONICS - 3.0%
AMP, Inc. 250,300 10,575
Analog Devices, Inc. (a) 250,000 8,500
Avnet, Inc. 55,700 2,694
Intel Corp. 581,600 36,823
Kemet Corp. (a) 41,800 2,195
Thomas & Betts Corp. 178,300 12,191
72,978
PHOTOGRAPHIC EQUIPMENT - 0.3%
Eastman Kodak Co. 111,700 6,772
TOTAL TECHNOLOGY 271,729
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
TRANSPORTATION - 4.7%
AIR TRANSPORTATION - 1.0%
AMR Corp. (a) 170,200 $ 12,701
Atlantic Southeast Airlines, Inc. 78,700 2,371
Comair Holdings, Inc. 36,200 1,371
Delta Air Lines, Inc. 75,900 5,598
Southwest Airlines Co. 63,800 1,523
23,564
RAILROADS - 2.7%
Burlington Northern, Inc. 418,400 26,516
CSX Corp. 258,900 19,450
Illinois Central Corp., Series A 344,500 11,885
Southern Pacific Rail Corp. (a) 593,200 9,343
67,194
TRUCKING & FREIGHT - 1.0%
Air Express International Corp. 10,000 235
Fritz Companies, Inc. (a) 249,328 14,632
Hunt (J.B.) Transport Services Inc. 327,700 6,022
Roadway Services, Inc. 62,700 2,963
23,852
TOTAL TRANSPORTATION 114,610
UTILITIES - 3.9%
CELLULAR - 1.0%
AirTouch Communications, Inc. (a) 354,900 10,115
Vodafone Group PLC sponsored ADR 343,100 12,995
23,110
TELEPHONE SERVICES - 2.9%
Ameritech Corp. 551,300 24,257
BellSouth Corp. 262,800 16,688
SBC Communications, Inc. 621,900 29,618
70,563
TOTAL UTILITIES 93,673
TOTAL COMMON STOCKS
(Cost $1,901,757) 2,156,477
PREFERRED STOCKS - 2.5%
SHARES VALUE (NOTE 1)
(000S)
CONVERTIBLE PREFERRED STOCKS - 1.9%
DURABLES - 0.3%
AUTOS, TIRES, & ACCESSORIES - 0.3%
Chrysler Corp., Series A, $4.625 (c) 55,900 $ 7,463
ENERGY - 0.5%
ENERGY SERVICES - 0.2%
Noble Drilling Corp. $1.50 176,000 4,180
OIL & GAS - 0.3%
Unocal Corp. $3.50 (c) 167,500 9,045
TOTAL ENERGY 13,225
FINANCE - 0.2%
BANKS - 0.2%
First Bank System, Inc. Series 1991 A $3.5625 19,900 1,393
Norwest Corp., Series B, $3.50 39,800 3,164
4,557
TECHNOLOGY - 0.9%
COMPUTER SERVICES & SOFTWARE - 0.9%
Ceridian Corp. 3 1/2% 247,800 20,691
ELECTRONICS - 0.0%
Comptronix Corp. Series A 6% 23,600 62
TOTAL TECHNOLOGY 20,753
TOTAL CONVERTIBLE PREFERRED STOCKS 45,998
NONCONVERTIBLE PREFERRED STOCKS - 0.6%
MEDIA & LEISURE - 0.6%
PUBLISHING - 0.6%
News Corp. Ltd. (ltd. vtg.) 2,972,500 14,674
TOTAL PREFERRED STOCKS
(Cost $54,652) 60,672
CORPORATE BONDS - 2.8%
MOODY'S RATINGS PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) (B) AMOUNT (000S) (000S)
CONVERTIBLE BONDS - 1.2%
BASIC INDUSTRIES - 0.1%
IRON & STEEL - 0.1%
Trimas Corp. 5%, 8/1/03 Ba3 $ 2,430 $ 2,685
CONSTRUCTION & REAL ESTATE - 0.0%
REAL ESTATE INVESTMENT TRUSTS - 0.0%
Liberty Property 8%, 7/1/01 - 314 308
ENERGY - 0.2%
INDEPENDENT POWER - 0.2%
Thermo Electron Corp.:
senior deb. 4 5/8%, 8/1/97 (c) Ba1 1,290 2,412
5% 4/15/01 Ba1 1,920 2,602
5,014
FINANCE - 0.0%
BANKS - 0.0%
Bank of New York Co., Inc. 7 1/2%, 8/15/01 A3 280 580
HEALTH - 0.3%
MEDICAL FACILITIES MANAGEMENT - 0.3%
Integrated Health Services, Inc.:
5 3/4%, 1/1/01 - 3,180 3,331
6%, 1/1/03 B2 2,900 3,067
6,398
INDUSTRIAL MACHINERY & EQUIPMENT - 0.1%
POLLUTION CONTROL - 0.1%
Laidlaw, Inc. 6%, 1/15/99 Baa2 3,000 3,270
MEDIA & LEISURE - 0.2%
LODGING & GAMING - 0.2%
Prime Hospitality Corp. 7%, 4/15/02 B2 5,570 5,709
CORPORATE BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) (B) AMOUNT (000S) (000S)
CONVERTIBLE BONDS - CONTINUED
RETAIL & WHOLESALE - 0.1%
GENERAL MERCHANDISE STORES - 0.1%
Lechters, Inc. 5%, 9/27/01 - $ 1,640 $ 1,312
TRANSPORTATION - 0.2%
TRUCKING & FREIGHT - 0.2%
Air Express International Corp. 6%, 1/15/03 B1 3,240 3,661
TOTAL CONVERTIBLE BONDS 28,937
NONCONVERTIBLE BONDS - 1.6%
AEROSPACE & DEFENSE - 0.1%
DEFENSE ELECTRONICS - 0.1%
Tracor, Inc. 10 7/8%, 8/15/01 B2 1,500 1,537
MEDIA & LEISURE - 1.3%
BROADCASTING - 1.1%
Viacom, Inc. 8%, 7/7/06 B1 28,430 27,648
LODGING & GAMING - 0.2%
Red Roof Inns, Inc. 9 5/8%, 12/15/03 B3 4,000 3,820
TOTAL MEDIA & LEISURE 31,468
NONDURABLES - 0.2%
BEVERAGES - 0.2%
Canandaigua Wine, Inc. 8 3/4%, 12/15/03 B1 5,000 4,900
TOTAL NONCONVERTIBLE BONDS 37,905
TOTAL CORPORATE BONDS
(Cost $64,784) 66,842
U.S. TREASURY OBLIGATIONS - 1.1%
11 5/8%, 11/15/04 Aaa 3,260 4,481
5 3/4%, 8/15/03 Aaa 23,550 22,833
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $24,624) 27,314
REPURCHASE AGREEMENTS - 4.5%
MATURITY VALUE (NOTE 1)
AMOUNT (000S)
(000S)
Investments in repurchase agreements
(U.S. Treasury obligations), in a joint
trading account at 6.15%, dated
6/30/95 due 7/3/95 $ 110,124 $ 110,068
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $2,155,885) $ 2,421,373
LEGEND
1. Non-income producing
2. Standard & Poor's Corporation credit ratings are used in the absence of
a rating by Moody's Investors Service, Inc.
3. 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 $18,920,000 or 0.8% of net
assets.
INCOME TAX INFORMATION
At June 30, 1995, the aggregate cost of investment securities for income
tax purposes was $2,162,359,000. Net unrealized appreciation aggregated
$259,014,000, of which $282,863,000 related to appreciated investment
securities and $23,849,000 related to depreciated investment securities.
The fund hereby designates $3,011,000 as a capital gain dividend for the
purpose of the dividend paid deduction.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
AMOUNTS IN THOUSANDS (EXCEPT PER SHARE AMOUNTS) JUNE 30, 1995
ASSETS
Investment in securities, at value (including repurchase $ 2,421,373
agreements of $110,068) (cost $2,155,885) - See
accompanying schedule
Receivable for investments sold 71,004
Receivable for fund shares sold 3,907
Dividends receivable 5,240
Interest receivable 2,396
Other receivables 287
TOTAL ASSETS 2,504,207
LIABILITIES
Payable for investments purchased $ 58,512
Payable for fund shares redeemed 2,728
Accrued management fee 798
Other payables and accrued expenses 737
Payable for collateral on closed security loans 12,462
Collateral on open security loans, at value 24,498
TOTAL LIABILITIES 99,735
NET ASSETS $ 2,404,472
Net Assets consist of:
Paid in capital $ 2,068,257
Undistributed net investment income 3,624
Accumulated undistributed net realized gain (loss) on 67,099
investments and foreign currency transactions
Net unrealized appreciation (depreciation) on 265,492
investments and assets and liabilities in foreign
currencies
NET ASSETS, for 114,280 shares outstanding $ 2,404,472
NET ASSET VALUE, offering price and redemption price per $21.04
share ($2,404,472 (divided by) 114,280 shares)
STATEMENT OF OPERATIONS
AMOUNTS IN THOUSANDS YEAR ENDED JUNE 30, 1995
INVESTMENT INCOME $ 35,541
Dividends
Interest (including income on securities loaned of $256) 19,168
TOTAL INCOME 54,709
EXPENSES
Management fee $ 7,926
Transfer agent fees 3,822
Accounting and security lending fees 725
Non-interested trustees' compensation 32
Custodian fees and expenses 86
Registration fees 145
Audit 55
Legal 17
Total expenses before reductions 12,808
Expense reductions (453) 12,355
NET INVESTMENT INCOME 42,354
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investment securities 72,446
Foreign currency transactions (1,689) 70,757
Change in net unrealized appreciation (depreciation) on:
Investment securities 272,210
Assets and liabilities in foreign currencies 818 273,028
NET GAIN (LOSS) 343,785
NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ 386,139
FROM OPERATIONS
STATEMENT OF CHANGES IN NET ASSETS
AMOUNTS IN THOUSANDS YEAR ENDED YEAR ENDED
JUNE 30, JUNE 30,
1995 1994
INCREASE (DECREASE) IN NET ASSETS
Operations $ 42,354 $ 28,625
Net investment income
Net realized gain (loss) 70,757 169,754
Change in net unrealized appreciation (depreciation) 273,028 (125,465)
NET INCREASE (DECREASE) IN NET ASSETS 386,139 72,914
RESULTING FROM OPERATIONS
Distributions to shareholders (37,407) (24,519)
From net investment income
From net realized gain (80,847) (186,096)
TOTAL DISTRIBUTIONS (118,254) (210,615)
Share transactions 997,742 505,119
Net proceeds from sales of shares
Reinvestment of distributions 101,857 178,614
Cost of shares redeemed (555,067) (393,459)
NET INCREASE (DECREASE) IN NET ASSETS 544,532 290,274
RESULTING FROM SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) IN NET ASSETS 812,417 152,573
NET ASSETS
Beginning of period 1,592,055 1,439,482
End of period (including undistributed net investment $ 2,404,472 $ 1,592,055
income of $3,624 and $763, respectively)
OTHER INFORMATION
Shares
Sold 52,253 25,794
Issued in reinvestment of distributions 5,464 9,338
Redeemed (28,996) (20,074)
Net increase (decrease) 28,721 15,058
FINANCIAL HIGHLIGHTS
YEARS ENDED JUNE SIX MONTHS YEARS ENDED DECEMBER 31,
30, ENDED
JUNE 30,
1995 1994 F 1993 1992 D 1991 1990
SELECTED PER-SHARE DATA
Net asset value, $ 18.61 $ 20.42 $ 18.94 $ 18.46 $ 16.29 $ 17.93
beginning of period
Income from Investment
Operations
Net investment .38 .27 .29 E .45 .53 .70 E
income
Net realized and 3.35 .79 1.48 1.09 3.29 (1.60)
unrealized gain
(loss)
Total from investment 3.73 1.06 1.77 1.54 3.82 (.90)
operations
Less Distributions (.36) (.31) (.22) (.48) (.50) (.74)
From net investment
income
From net realized gain (.94) (2.56) (.07) (.58) (1.15) -
Total distributions (1.30) (2.87) (.29) (1.06) (1.65) (.74)
Net asset value, end of $ 21.04 $ 18.61 $ 20.42 $ 18.94 $ 18.46 $ 16.29
period
TOTAL RETURN B, C 21.09% 5.41 9.39% 8.46 24.15 (5.10)%
% % %
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of $ 2,404 $ 1,592 $ 1,439 $ 1,354 $ 1,320 $ 1,064
period (in millions)
Ratio of expenses to .64% .65 .66% A .67 .68 .66%
average net assets % % %
Ratio of expenses to .66% .68 .66% A .67 .68 .66%
average net assets % % %
before expense
reductions
Ratio of net investment 2.18% 1.85 2.94% A, 2.37 2.84 4.04%
income to average net % E % % E
assets
Portfolio turnover rate 157% 207 261% A 151 267 259%
% % %
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN (SEE NOTE 6 OF NOTES TO FINANCIAL
STATEMENTS).
D AS OF JANUARY 1, 1992 THE FUND DISCONTINUED THE USE OF EQUALIZATION
ACCOUNTING.
E INVESTMENT INCOME PER SHARE REFLECTS A SPECIAL DIVIDEND WHICH AMOUNTED TO
$.06 PER SHARE.
F 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, NET INVESTMENT INCOME PER SHARE MAY REFLECT CERTAIN
RECLASSIFICATIONS RELATED TO BOOK TO TAX DIFFERENCES.
NOTES TO FINANCIAL STATEMENTS
For the period ended June 30, 1995
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. 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 (including restricted 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
of their purchase date 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 and other assets and liabilities denominated in a
foreign currency are translated into U.S. dollars at the prevailing rates
of exchange at period end.
Purchases and sales of securities, income receipts, and expense payments
are translated into U.S. dollars at the prevailing exchange rate on the
respective dates of the transactions.
Net realized gains and losses on foreign currency transactions represent
net gains and losses from sales and maturities of forward currency
contracts, disposition of foreign currencies, currency gains and losses
realized between the trade and settlement dates on securities transactions,
and the difference between the amount of net investment income accrued and
the U.S. dollar amount actually received. The effects of changes in foreign
currency exchange rates on investments in securities are included with the
net realized and unrealized gain or loss on investment securities.
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 substantially 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. Investment income
is recorded net of foreign taxes withheld where recovery of such taxes is
uncertain.
1. SIGNIFICANT ACCOUNTING
POLICIES - CONTINUED
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.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences, which may result in distribution
reclassifications, 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 basis differences relating to shareholder
distributions will result in reclassifications to paid in capital and may
affect the per-share allocation between net investment income and realized
and unrealized gain (loss). Undistributed net investment income (loss) and
accumulated undistributed net realized gain (loss) on investments may
include temporary book and tax basis differences which will reverse in a
subsequent period. Any taxable income or gain remaining at fiscal year end
is distributed in the following year.
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.
FORWARD FOREIGN CURRENCY CONTRACTS. The fund may use foreign currency
contracts to facilitate transactions in foreign securities and to manage
the fund's currency exposure. Contracts to buy generally are used to
acquire exposure to foreign currencies, while contracts to sell are used to
hedge the fund's investments against currency fluctuations. Also, a
contract to buy or sell can offset a previous contract. Losses may arise
from changes in the value of the foreign currency or if the counterparties
do not perform under the contracts' terms.
The U.S. dollar value of forward foreign currency contracts is determined
using forward currency exchange rates supplied by a quotation service.
Purchases and sales of forward foreign currency contracts having the same
settlement date and broker are offset and any realized gain (loss) is
recognized on the date of offset; otherwise, gain (loss) is recognized on
settlement date.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission(the SEC), the fund, along with other
affiliated entities of Fidelity Management & Research Company (FMR), may
transfer uninvested cash balances into one or more joint trading accounts.
These balances are invested in one or more
2. OPERATING POLICIES -
CONTINUED
JOINT TRADING ACCOUNT - CONTINUED
repurchase agreements that mature in 60 days or less from the date of
purchase, and are collateralized by U.S. Treasury or Federal Agency
obligations.
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. FMR, the fund's
investment adviser, is responsible for determining that the value of these
underlying securities remains at least equal to the resale price.
3. PURCHASES AND SALES OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $3,335,789,000 and $2,764,139,000, respectively, of which U.S.
government and government agency obligations aggregated $159,872,000 and
$142,128,000, 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 and is based on
the monthly average net assets of all the mutual funds advised by FMR. The
rates ranged from .2850% to .5200% for the period July 1, 1994 to July 31,
1994 and .2700% to .5200% for the period August 1, 1994 to June 30, 1995.
In the event that these rates were lower than the contractual rates in
effect during those periods, FMR voluntarily implemented the above rates,
as they resulted in the same or a lower management fee. The annual
individual fund fee rate is .09%. For the period, the management fee was
equivalent to an annual rate of .41% 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 $21,000 for the
period.
TRANSFER AGENT FEES. Fidelity Service Co. (FSC), an affiliate of FMR, is
the fund's transfer, dividend disbursing and shareholder servicing agent.
During the period July 1,1994 to December 31, 1994, FSC received fees based
on the type, size, number of accounts and the number of transactions made
by shareholders. Effective January 1, 1995, the Board of Trustees approved
a revised transfer agent contract pursuant to which FSC
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
TRANSFER AGENT FEES - CONTINUED
receives account fees and asset-based fees that vary according to account
size and type of account. 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
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 $1,670,000 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 $23,968,000 and
$24,498,000, 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
$453,000 under this arrangement.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees of Fidelity Hastings Street Trust and the Shareholders
of Fidelity Fund:
We have audited the accompanying statement of assets and liabilities of
Fidelity Hastings Street Trust: Fidelity Fund, including the schedule of
portfolio investments, as of June 30, 1995, and the related statement of
operations for the year then ended, the statement of changes in net assets
for each of the two years in the period then ended and the financial
highlights for the two years then ended, the six month period ended June
30, 1993 and for each of the three years in the period ended December 31,
1992. These financial statements and financial highlights are the
responsibility of the fund's management. Our responsibility is to express
an opinion on these financial statements and financial highlights based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of June 30, 1995 by correspondence with the custodian
and brokers. An audit also includes assessing the accounting principles
used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position
of Fidelity Hastings Street Trust: Fidelity Fund as of June 30, 1995, the
results of its operations for the year then ended, the changes in its net
assets for each of the two years in the period then ended, and the
financial highlights for the two years then ended, the six month period
ended June 30, 1993 and for each of the three years in the period ended
December 31, 1992, in conformity with generally accepted accounting
principles.
COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
August 3, 1995
DISTRIBUTIONS
The Board of Trustees of Fidelity Fund voted to pay on August 7, 1995, to
shareholders of record at the opening of business on August 4, 1995, a
distribution of $.58 derived from capital gains realized from sales of
portfolio securities.
A total of 30% of the dividends distributed during the fiscal year
qualifies for the dividends-received deductions for corporate shareholders.
The fund will notify shareholders in January 1996 of the applicable
percentage for use in preparing 1995 income tax returns.
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)(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)(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.
TO WRITE FIDELITY
If more than one address is listed, 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.
(LETTER_GRAPHIC)(LETTER_GRAPHIC)MAKING CHANGES
TO YOUR ACCOUNT
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
(LETTER_GRAPHIC)(LETTER_GRAPHIC)FOR NON-RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
OVERNIGHT EXPRESS
Fidelity Investments
100 Crosby Parkway - KP2C
Covington, KY 41015-4399
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions - CP6I
400 East Las Colinas Blvd.
Irving, TX 75309-5517
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 193
Boston, MA 02210-0193
(LETTER_GRAPHIC)(LETTER_GRAPHIC)FOR RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions - CP6R
400 East Las Colinas Blvd.
Irving, TX 75309-5517
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 East 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
6300 Canoga Avenue
Woodland Hills, 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
90 Alhambra Plaza
Coral Gables, FL
4090 N. Ocean Boulevard
Ft. Lauderdale, FL
4001 Tamiami Trail, North
Naples, FL
1907 West State Road 434
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
7401 Wisconsin Avenue
Bethesda, MD
1 West Pennsylvania Ave.
Towson, MD
MASSACHUSETTS
470 Boylston Street
Boston, MA
21 Congress Street
Boston, MA
25 State Street
Boston, MA
300 Granite Street
Braintree, MA
44 Mall Road
Burlington, MA
416 Belmont Street
Worcester, MA
MICHIGAN
280 North Woodward Ave.
Birmingham, MI
26955 Northwestern Hwy.
Southfield, MI
MINNESOTA
7600 France Avenue South
Edina, MN
MISSOURI
700 West 47th Street
Kansas City, MO
8885 Ladue Road
Ladue, 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
1271 Avenue of the
Americas
New York, NY
71 Broadway
New York, NY
350 Park Avenue
New York, NY
10 Bank Street
White Plains, NY
NORTH CAROLINA
4611 Sharon Road
Charlotte, NC
2200 West Main Street
Durham, NC
OHIO
600 Vine Street
Cincinnati, OH
28699 Chagrin Boulevard
Woodmere Village, OH
1903 East Ninth Street
Cleveland, 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
2701 Drexel Drive
Houston, TX
1010 Lamar Street
Houston, TX
400 East Las Colinas Blvd.
Irving, TX
14100 San Pedro
San Antonio, TX
UTAH
215 South State 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
INVESTMENT SUB-ADVISERS
Fidelity Management & Research
(U.K.) Inc., London, England
Fidelity Management & Research
(Far East) Inc., Tokyo, Japan
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
William J. Hayes, Vice President
Beth Terrana, Vice President
Arthur S. Loring, Secretary
Stephen P. Jonas, Treasurer
Robert H. Morrison, Manager,
Security Transactions
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
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
The Chase Manhattan Bank, N.A.
New York, NY
FIDELITY'S GROWTH FUNDS
Blue Chip Growth Fund
Capital Appreciation Fund
Contrafund
Disciplined Equity Fund
Dividend Growth Fund
Emerging Growth Fund
Export Fund
Fidelity Fifty
Growth Company Fund
Low-Priced Stock Fund
Magellan(registered trademark) Fund
Mid-Cap Stock Fund
New Millennium(trademark) Fund
OTC Portfolio
Retirement Growth Fund
Small Cap Growth 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)
(registered trademark)
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE
(2_FIDELITY_LOGOS)
FIDELITY FIFTY
ANNUAL REPORT
JUNE 30, 1995
CONTENTS
PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.
PERFORMANCE 4 How the fund has done over time.
FUND TALK 6 The manager's review of fund
performance, strategy and outlook.
INVESTMENT CHANGES 10 A summary of major shifts in the
fund's investments over the past six
months.
INVESTMENTS 11 A complete list of the fund's
investments with their market
values.
FINANCIAL STATEMENTS 17 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.
NOTES 21 Notes to the financial statements.
REPORT OF INDEPENDENT 26 The auditors' opinion.
ACCOUNTANTS
DISTRIBUTIONS 27
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL
INFORMA-
TION 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.
MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED
BY, ANY DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC, THE
FEDERAL RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO
INVESTMENT RISK, INCLUDING THE POSSIBLE LOSS OF PRINCIPAL.
NEITHER THE FUND NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK.
FOR MORE INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND EXPENSES,
CALL
1-800-544-8888 FOR A FREE PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST
OR SEND MONEY.
PRESIDENT'S MESSAGE
DEAR SHAREHOLDER:
Although there have been positive market indications so far in 1995, no one
can predict what lies ahead for investors. Last year, stocks posted
below-average returns and bonds had one of the worst years in history. This
downturn followed a period in which the investing environment was generally
very positive.
These market ups and downs are a normal part of investing, and there are
some basic principles that are helpful for investors to remember in
different types of markets.
If you can leave your money invested over the long term, you can avoid the
results of the volatility that generally accompanies the stock market in
the short term, as we witnessed last year. You also can help to manage some
of the risks of investing through diversification. A stock fund is already
diversified because it invests in many issues. You can diversify even
further by placing some of your money in several different types of stock
funds or in other investment categories, such as bonds.
If you have a short investment time horizon, you might want to consider
moving some of your investment into a money market fund, which seeks income
and a stable share price by investing in high-quality, short-term
investments. Of course, there is no assurance that a money market fund will
achieve its goal, and it is important to remember that money market funds
are not insured or guaranteed by any agency of the U.S. government.
Finally, no matter what your investment horizon or portfolio diversity, it
makes good sense to follow a regular investment plan - investing a certain
amount of money at the same time each month or quarter - and to review your
portfolio periodically. A periodic investment plan will not, of course,
assure a profit or protect against a loss.
If you have any questions, please call us at 1-800-544-8888. We stand ready
to provide the information you need to make the investments that are right
for you.
Best regards,
Edward C. Johnson 3d
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 securities that have grown in value). Fidelity
Fifty had a 3% sales charge, which was waived beginning January 1, 1995
through December 31, 1996.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED JUNE 30, 1995 PAST 1 LIFE OF
YEAR FUND
Fidelity Fifty 30.26% 32.60%
Fidelity Fifty (incl. 3% sales charge) 26.36% 28.62%
S&P 500(registered trademark) 26.07% 24.62%
Average Capital Appreciation Fund 22.17% n/a
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, one year, or since the fund began on
September 17, 1993. For example, if you invested $1,000 in a fund that had
a 5% return, over the past year, the value of your investment would be
$1,050. You can compare the fund's returns to the performance of the
Standard & Poor's Composite Index of 500 Stocks - a common proxy for the
U.S. stock market. To measure how the fund's performance stacked up against
its peers, you can compare it to the average capital appreciation fund,
which reflects the performance of over 145 capital appreciation funds with
similar objectives tracked by Lipper Analytical Services over the past 12
months. Both benchmarks include reinvested dividends and capital gains, if
any, and exclude the effects of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JUNE 30, 1995 PAST 1 LIFE OF
YEAR FUND
Fidelity Fifty 30.26% 17.12%
Fidelity Fifty (incl. 3% sales charge) 26.36% 15.14%
S&P 500(registered trademark) 26.07% 13.12%
Average Capital Appreciation Fund 22.17% n/a
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 LIFE OF FUND
Fidelity Fifty Standard & Poor's
09/17/93 9700.00 10000.00
09/30/93 9971.60 9999.89
10/31/93 10369.30 10206.89
11/30/93 10204.40 10109.92
12/31/93 10272.24 10232.25
01/31/94 10660.60 10580.15
02/28/94 10505.25 10293.43
03/31/94 9990.67 9844.63
04/30/94 10116.89 9970.64
05/31/94 10126.60 10134.16
06/30/94 9874.16 9885.88
07/31/94 10262.53 10210.13
08/31/94 10796.53 10628.75
09/30/94 10767.40 10368.34
10/31/94 10990.71 10601.63
11/30/94 10495.55 10215.52
12/31/94 10682.65 10367.02
01/31/95 10623.74 10635.83
02/28/95 11065.57 11050.31
03/31/95 11536.87 11376.41
04/30/95 11860.88 11711.44
05/31/95 12302.72 12179.55
06/30/95 12862.38 12462.48
$10,000 OVER LIFE OF FUND: Let's say you invested $10,000 in Fidelity
Fifty on September 17, 1993, and paid a 3% sales charge. As the chart
shows, by June 30, 1995, the value of your investment would have grown to
$12,862 - a 28.62% increase on your initial investment. For comparison,
look at how the S&P 500 did over the same period. With dividends
reinvested, the same $10,000 investment would have grown to $12,462 - a
24.62% 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
MARKET RECAP
Strong corporate earnings and a
favorable interest rate
environment helped the U.S.
stock market post strong returns
for the 12 months ended June 30,
1995. The Standard & Poor's
Composite Index of 500 Stocks
finished the 12-month period with
a total return of 26.07% - well
above its historical annual
average of roughly 12%. With
inflation posing little threat,
interest rates fell during the first
half of 1995. Large-capitalization
stocks led the somewhat narrow
market rally. While consumer
nondurable and financial stocks
generally performed well,
technology companies - whose
goods and services benefited
from both corporate and
consumer demand - posted the
strongest earnings growth and
stock price gains. In February, the
Dow Jones Industrial Average
closed above 4000 for the first
time, and continued hitting record
highs before closing the period at
4556.10. Returns from foreign
markets were varied, as investors
brought capital back to the U.S.
Emerging foreign markets
rebounded somewhat from
Mexico's devaluation of the peso
in December 1994. The Morgan
Stanley Emerging Markets Free
Index was down 0.02% for the 12
months ended June 30. The
Morgan Stanley EAFE (Europe,
Australia, Far East) Index
returned 1.65% for the year
ended June 30. European
markets have fared well through
the first half of 1995 - after a
difficult year in 1994 - while the
Japanese market has continued
to struggle.
An interview with Scott Stewart, Portfolio Manager of Fidelity Fifty
Q. HOW HAS THE FUND PERFORMED, SCOTT?
A. I'm pleased to say that the fund has done very well. Fidelity Fifty was
designed to add long-term value over its peers and the Standard & Poor's
Composite Index of 500 Stocks rather than focus on any particular year.
Having said that, over the past 12 months, the fund finished ahead of both
the S&P 500 and its peer group. For the 12 months ended June 30, 1995, the
fund had a total return of 30.26%, compared to the total return of 22.17%
for the average capital appreciation fund tracked by Lipper Analytical
Services. Over the same 12 months, the S&P 500 had a total return of 26.07%
Q. WHAT HELPED THE FUND DO SO WELL?
A. There were several key reasons behind the portfolio's strong
performance. The primary source was individual stock selection. Basically,
I've found that the stocks in the fund outperformed other stocks within
their own industries and capitalization size range. The successful stock
picking was a direct result of the strength of Fidelity's fundamental
research. Secondary reasons included my discipline in striving to keep the
portfolio relatively fully invested, and the portfolio's overweighting
-relative to the S&P 500 - in technology stocks.
Q. THE FUND'S SIZE HAS MORE THAN DOUBLED OVER THE PAST SIX MONTHS. HOW DO
YOU MANAGE THE NEW ASSETS AS THEY COME IN?
A. I use stock market futures to temporarily invest the new assets that are
coming into the portfolio. I am always looking to buy stocks, but cash can
come in faster than I can spend it. Buying the futures can ensure the
portfolio will be fully invested in the stock market. Once the combination
of cash and futures reaches a certain level, I sell the futures and buy a
list of stocks. At the same time, I maintain a small position in cash and
short-term investments because they help temper the portfolio's relatively
high beta. Beta is a measure of a stock's - or a fund's - historical
sensitivity in relation to the rest of the market. A fund with a higher
beta likely will rise and fall more rapidly than the rest of the market. If
I kept 100% of the fund invested in stocks, the fund probably would have an
even higher beta.
Q. LET'S GET BACK TO TECHNOLOGY . . .
A. Technology investments - 24.0% of the fund at the end of the period -
have been among the best performers both in the fund and the market as a
whole. The fund benefited from having a heavier weighting in this sector
than the S&P 500. Its investments were diversified within the sector,
including such areas as computers, networking and telecommunications. As I
said in the last report, I'm not making a bet on the technology sector, I'm
just finding many attractive stocks that happen to be in the technology
area. Earnings in these companies have been driven by both corporate and
consumer demand. Of course, it's important to note that, historically,
technology stocks have tended to be more volatile than the market as a
whole.
Q. WHAT ARE SOME TECHNOLOGY INVESTMENTS THAT HAVE DONE WELL FOR THE FUND?
A. Two of the top performers over the past six months have been Applied
Materials and Credence Systems, both producers of semiconductor
manufacturing and testing equipment. The semiconductor business is
experiencing tremendous growth, and these companies should be a secondary
beneficiary of this growth boom. Tellabs also did well. It's a
manufacturing company that supplies switching equipment to the
telecommunications industry. Many cellular equipment company stocks have
soared over the past month or so; Tellabs is one of the leading suppliers
of products that can help telephone companies upgrade their cellular
networks for greater reliability and cost savings. The fund's investments
in Compaq and IBM, both computer companies, and in Oracle, a database
company that the fund no longer holds, also were positive contributors to
performance.
Q. WERE THERE INVESTMENTS OUTSIDE OF TECHNOLOGY THAT HELPED THE FUND?
A. Certainly. A stock that I sold before the end of the period to take
profits, American Home Products, a drug and pharmaceutical company, did
well, as did Clark Equipment. Clark is an industrial equipment manufacturer
that was taken over by Ingersoll-Rand; the fund benefited from holding
Clark stock when the company was acquired. And the fund profited from its
holdings in PepsiCo, one of the many large capitalization consumer
nondurable stocks that did well during the period. Many investors have
favored these investments because they are perceived to be
recession-resistant; demand for these products doesn't vary much,
regardless of the economic climate. Over the past six months, data has
indicated that the U.S. economy has slowed down, hence the attraction of
stocks like PepsiCo. In addition, PepsiCo has exhibited strong earnings in
most of its businesses.
Q. WHAT WERE SOME INVESTMENTS THAT DETRACTED FROM THE FUND'S PERFORMANCE?
A. Nucor, a steel company, was one. I bought the stock at a time when steel
prices were strengthening, and because the company offered a competitive
cost structure. Even though the company had a backlog of orders, its stock
price was hurt when steel prices began to drop after Mexican suppliers
implemented aggressive pricing policies. Another one, Data General, a
computer company, stumbled a bit as it was trying to restructure. And
Michaels Stores, a home decorations and crafts specialty retailer, decided
to cut prices, hurting short-term earnings prospects. By the end of the
period, the fund had no investments in any of these stocks.
Q. ONE OF THE FUND'S TOP 10 INVESTMENTS IS VODAFONE, A BRITISH COMPANY.
WHAT SORT OF STRATEGY DO YOU PURSUE WHEN DECIDING WHETHER TO MAKE AN
INVESTMENT IN AN OVERSEAS COMPANY?
A. I invest abroad in the same way I invest in the U.S. - company by
company. At times, foreign companies can offer better investment
opportunities than U.S. firms. For example, while most telephone companies'
stock prices have run up over the past few years, I believe there remains
substantial upside for Vodafone stock, primarily due to its exposure to
overseas cellular phone growth. I do recognize that foreign stocks can
increase risk in the portfolio. For example, there can be additional
currency risk in buying Vodafone compared to a U.S. company. When I
consider purchasing a foreign stock, I evaluate this risk and may make the
stock a smaller holding within the fund. In that sense, it's the same as
reviewing the risks presented by a high-priced stock or one that is not
easily traded. In addition, it's important to recognize that many U.S.
companies are exposed to currency risk, because they sell or have
operations overseas. Finally, foreign holdings also can improve the
portfolio's diversification.
Q. WHAT'S YOUR OUTLOOK FOR THE NEXT SIX MONTHS?
A. The market rally we've seen since the beginning of the year has been led
mainly by the larger capitalization companies. It is generally hoped that
mid-cap and smaller company stocks, as well as foreign markets, will follow
suit and perform well. For that to happen, particularly with small-cap
stocks, we'll need to see signs of a rebound in the economy. If the Federal
Reserve Board continues to drop short-term interest rates, which it did
just after the end of the period, that could help the economy and smaller
stocks. If short-term interest rates come down further, we could continue
to see strength in the market. However, with this portfolio I don't try to
predict the direction of the market. My goal will be to stay as fully
invested as possible and to choose my investments stock by stock.
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 June 30, 1995,
more than $128 million
MANAGER: Scott Stewart,
since September 1993;
founder and head of
Fidelity's Structured Equity
Group since 1987, when he
joined Fidelity
(checkmark)
SCOTT STEWART ON PICKING
STOCKS FOR A GROWING FUND:
"As the assets in the fund
grow, I'm faced with a
challenge because I only can
invest in a limited number of
names. If I were managing a
fund without that kind of
structure, it would be easy to
use the new assets to buy a
new stock instead of asking
myself whether I want to put
more money into stocks that
are already in the fund. As it
is, the fund's investment
objective provides important
discipline, because if I'm not
willing to put more money into
the stocks in the fund, then I
need to seriously consider
selling them. I have to make
sure I believe that every stock
in the fund is a good one.
"When new money comes
into the fund, I look through
the portfolio to see which
positions I'd like to increase.
I'm always trying to spend
down the fund's growing cash
position. I go through the
stocks, and if a company's
earnings forecasts have
increased, if the stock price
has dropped, or if there has
been a positive new
development, it's an easy
decision to increase the
weight of that stock in the
fund. If I don't feel compelled
to make a purchase with the
new assets on a given day,
then I use equity index futures
contracts to track the broad
performance of the market,
start selling stocks, and look
for new investments as
replacements."
INVESTMENT CHANGES
TOP TEN STOCKS AS OF JUNE 30, 1995
% OF FUND'S
% OF FUND'S INVESTMENTS
INVESTMENTS IN THESE STOCKS
6 MONTHS AGO
Compaq Computer Corp. 2.3 0.0
DSC Communications Corp. 2.2 1.7
Merck & Co., Inc. 2.2 0.0
Kellogg Co. 2.1 0.0
Philip Morris Companies, Inc. 2.1 0.0
Wal-Mart Stores, Inc. 2.1 0.0
Vodafone Group PLC sponsored ADR 2.1 1.6
Applied Materials, Inc. 2.0 0.0
Masco Corp. 2.0 0.0
International Business Machines Corp. 1.9 1.6
TOP FIVE MARKET SECTORS AS OF JUNE 30, 1995
% OF FUND'S
% OF FUND'S INVESTMENTS
INVESTMENTS IN THESE SECTORS
6 MONTHS AGO
Technology 24.0 21.1
Nondurables 8.5 0.0
Health 6.8 8.8
Finance 6.1 3.3
Durables 5.0 3.3
ASSET ALLOCATION
AS OF JUNE 30, 1995 AS OF DECEMBER 31, 1994
Row: 1, Col: 1, Value: 5.8
Row: 1, Col: 2, Value: 50.0
Row: 1, Col: 3, Value: 44.2
Row: 1, Col: 1, Value: 8.800000000000001
Row: 1, Col: 2, Value: 41.2
Row: 1, Col: 3, Value: 50.0
Stocks and
equity futures 94.2%
Short-term
investments 5.8%
Stocks and
equity futures 91.2%
Short-term
investments 8.8%
INVESTMENTS JUNE 30, 1995
Showing Percentage of Total Value of Investment in Securities
COMMON STOCKS - 78.6%
SHARES VALUE (NOTE 1)
(000S)
BASIC INDUSTRIES - 3.6%
CHEMICALS & PLASTICS - 3.6%
Agrium, Inc. 45,000 $ 1,524,590
Hanna (M.A.) Co. 44,300 1,151,800
Hercules, Inc. 40,600 1,979,250
4,655,640
CONSTRUCTION & REAL ESTATE - 2.5%
BUILDING MATERIALS - 2.0%
Masco Corp. 93,000 2,511,000
CONSTRUCTION - 0.5%
Kaufman & Broad Home Corp. 48,000 696,000
TOTAL CONSTRUCTION & REAL ESTATE 3,207,000
DURABLES - 5.0%
AUTOS, TIRES, & ACCESSORIES - 3.5%
Allen Group, Inc. (The) 33,000 977,625
Echlin, Inc. 35,000 1,216,250
General Motors Corp. 49,200 2,306,250
4,500,125
HOME FURNISHINGS - 1.5%
Heilig-Meyers Co. 75,000 1,912,500
TOTAL DURABLES 6,412,625
ENERGY - 4.0%
ENERGY SERVICES - 0.7%
BJ Services Co. (a) 35,876 816,179
BJ Services Co. (warrants) (a) 6,960 29,580
845,759
OIL & GAS - 3.3%
Amerada Hess Corp. 36,500 1,783,938
Atlantic Richfield Co. 22,600 2,480,350
4,264,288
TOTAL ENERGY 5,110,047
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
FINANCE - 6.1%
BANKS - 3.2%
Banc One Corp. 74,100 $ 2,389,725
Fleet Financial Group, Inc. 47,700 1,770,863
4,160,588
INSURANCE - 1.2%
TIG Holdings, Inc. 64,900 1,492,700
SAVINGS & LOANS - 0.4%
New York Bancorp, Inc. 24,100 478,988
SECURITIES INDUSTRY - 1.3%
Merrill Lynch & Co., Inc. 32,000 1,680,000
TOTAL FINANCE 7,812,276
HEALTH - 6.8%
DRUGS & PHARMACEUTICALS - 4.3%
Bristol-Myers Squibb Co. 20,500 1,396,563
Immunex Corp. (a) 107,300 1,394,900
Merck & Co., Inc. 56,800 2,783,200
5,574,663
MEDICAL EQUIPMENT & SUPPLIES - 1.2%
Cardinal Health, Inc. 32,600 1,540,350
MEDICAL FACILITIES MANAGEMENT - 1.3%
Apria Healthcare Group, Inc. 60,600 1,711,950
TOTAL HEALTH 8,826,963
INDUSTRIAL MACHINERY & EQUIPMENT - 2.6%
Case Corp. 47,300 1,407,175
Ingersoll-Rand Co. 49,900 1,908,675
3,315,850
MEDIA & LEISURE - 4.2%
BROADCASTING - 1.9%
Heritage Media Corp. Class A (a) 39,500 1,140,563
Viacom, Inc. Class A (a) 27,000 1,255,500
2,396,063
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
MEDIA & LEISURE - CONTINUED
LEISURE DURABLES & TOYS - 1.1%
Mattel, Inc. 55,600 $ 1,445,600
PUBLISHING - 1.2%
News Corp. Ltd. (vtg.) pfd. sponsored ADR 79,600 1,592,000
TOTAL MEDIA & LEISURE 5,433,663
NONDURABLES - 8.5%
AGRICULTURE - 1.4%
Pioneer Hi-Bred International, Inc. 42,900 1,801,800
BEVERAGES - 1.5%
PepsiCo, Inc. 42,000 1,916,250
FOODS - 2.1%
Kellogg Co. 37,600 2,683,700
HOUSEHOLD PRODUCTS - 1.4%
Tambrands, Inc. 43,000 1,838,250
TOBACCO - 2.1%
Philip Morris Companies, Inc. 36,000 2,677,500
TOTAL NONDURABLES 10,917,500
RETAIL & WHOLESALE - 3.0%
DRUG STORES - 0.9%
Revco (D.S.), Inc. (a) 47,400 1,137,600
GENERAL MERCHANDISE STORES - 2.1%
Wal-Mart Stores, Inc. 99,800 2,669,650
TOTAL RETAIL & WHOLESALE 3,807,250
SERVICES - 0.4%
ADT Ltd. (a) 42,300 497,025
TECHNOLOGY - 24.0%
COMMUNICATIONS EQUIPMENT - 7.2%
ADC Telecommunications, Inc. 49,400 1,766,050
DSC Communications Corp. (a) 61,300 2,850,450
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
TECHNOLOGY - CONTINUED
COMMUNICATIONS EQUIPMENT - CONTINUED
Northern Telecom Ltd. 37,700 $ 1,366,539
Tellabs, Inc. 40,900 1,968,313
3Com Corp. (a) 19,200 1,286,400
9,237,752
COMPUTER SERVICES & SOFTWARE - 2.9%
America Online, Inc. 37,000 1,628,000
Novell, Inc. (a) 104,000 2,073,500
3,701,500
COMPUTERS & OFFICE EQUIPMENT - 6.0%
ADAPTEC, Inc. (a) 20,700 765,900
Compaq Computer Corp. 65,000 2,949,375
Digital Equipment Corp. (a) 36,000 1,467,000
International Business Machines Corp. 25,900 2,486,400
7,668,675
ELECTRONIC INSTRUMENTS - 3.1%
Applied Materials, Inc. (a) 29,200 2,529,450
Credence Systems Corp. 48,100 1,455,025
3,984,475
ELECTRONICS - 4.8%
Avnet, Inc. 43,400 2,099,475
Micron Technology, Inc. 41,000 2,249,875
Vishay Intertechnology, Inc. 51,000 1,842,375
6,191,725
TOTAL TECHNOLOGY 30,784,127
TRANSPORTATION - 3.1%
AIR TRANSPORTATION - 1.7%
Delta Air Lines, Inc. 30,000 2,213,076
TRUCKING & FREIGHT - 1.4%
Hunt (J.B.) Transport Services, Inc. 96,600 1,775,025
TOTAL TRANSPORTATION 3,988,101
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
UTILITIES - 4.8%
CELLULAR - 2.1%
Vodafone Group PLC sponsored ADR 70,400 $ 2,666,400
TELEPHONE SERVICES - 2.7%
Tele Danmark AS Class B ADR 50,000 1,400,000
WorldCom, Inc. 77,800 2,100,600
3,500,600
TOTAL UTILITIES 6,167,000
TOTAL COMMON STOCKS
(Cost $91,644,547) 100,935,067
U.S. TREASURY OBLIGATIONS - 0.9%
PRINCIPAL
AMOUNT
U.S. Treasury Bills, yield at date of purchase
5.61% - 5.90%, 7/6/95 - 8/31/95 (b)
(Cost $1,176,328) $ 1,180,000 1,177,003
REPURCHASE AGREEMENTS - 20.5%
MATURITY
AMOUNT
Investments in repurchase agreements
(U.S. Treasury obligations), in a joint
trading account at 6.15%, dated
6/30/95 due 7/3/95 $ 26,258,451 26,245,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $119,065,875) $ 128,357,070
FUTURES CONTRACTS
EXPIRATION UNDERLYING FACE UNREALIZED
DATE AMOUNT AT VALUE GAIN/(LOSS)
PURCHASED
50 S&P 500 Stock Index Futures Sept. 1995 $ 13,678,750 $ 134,350
64 Midcap 400 Stock Index Futures Sept. 1995 6,385,600 73,720
$ 208,070
THE FACE VALUE OF FUTURES PURCHASED AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 15.6%
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 $1,177,003.
INCOME TAX INFORMATION
At June 30, 1995, the aggregate cost of investment securities for income
tax purposes was $119,082,973. Net unrealized appreciation aggregated
$9,274,097, of which $10,080,040 related to appreciated investment
securities and $805,943 related to depreciated investment securities.
The fund hereby designates $809,000 as a capital gain dividend for the
purpose of the dividend paid deduction.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
AMOUNTS IN THOUSANDS JUNE 30, 1995
ASSETS
Investment in securities, at value (including repurchase $ 128,357,070
agreements of $26,245,000) (cost $119,065,875) -
See accompanying schedule
Cash 264
Receivable for investments sold 4,128,715
Receivable for fund shares sold 1,877,522
Dividends receivable 156,107
TOTAL ASSETS 134,519,678
LIABILITIES
Payable for investments purchased $ 5,386,391
Payable for fund shares redeemed 408,923
Accrued management fee 59,983
Payable for daily variation on futures contracts 22,358
Other payables and accrued expenses 70,333
TOTAL LIABILITIES 5,947,988
NET ASSETS $ 128,571,690
Net Assets consist of:
Paid in capital $ 110,837,311
Undistributed net investment income 675,298
Accumulated undistributed net realized gain (loss) on 7,559,774
investments and foreign currency transactions
Net unrealized appreciation (depreciation) on 9,499,307
investments and assets and liabilities in foreign
currencies
NET ASSETS, for 9,816,367 shares outstanding $ 128,571,690
NET ASSET VALUE, offering price and redemption price $13.10
per share ($128,571,690 (divided by) 9,816,367 shares)
STATEMENT OF OPERATIONS
AMOUNTS IN THOUSANDS YEAR ENDED JUNE 30, 1995
INVESTMENT INCOME $ 777,846
Dividends
Interest 808,395
TOTAL INCOME 1,586,241
EXPENSES
Management fee $ 417,604
Basic fee
Performance adjustment 19,225
Transfer agent fees 235,641
Accounting fees and expenses 47,985
Non-interested trustees' compensation 305
Custodian fees and expenses 17,985
Registration fees 56,040
Audit 28,408
Legal 314
Miscellaneous 768
Total expenses before reductions 824,275
Expense reductions (14,845) 809,430
NET INVESTMENT INCOME 776,811
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investment securities 6,977,830
Futures contracts 1,572,926 8,550,756
Change in net unrealized appreciation (depreciation) on:
Investment securities 10,247,649
Assets and liabilities in foreign currencies 42
Futures contracts 348,490 10,596,181
NET GAIN (LOSS) 19,146,937
NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ 19,923,748
FROM OPERATIONS
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SEPTEMBER 17,
JUNE 30, 1993
1995 (COMMENCEMENT OF
OPERATIONS) TO
JUNE 30, 1994
INCREASE (DECREASE) IN NET ASSETS
Operations $ 776,811 $ 80,815
Net investment income
Net realized gain (loss) 8,550,756 (485,627)
Change in net unrealized appreciation (depreciation) 10,596,181 (1,096,874)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 19,923,748 (1,501,686)
FROM OPERATIONS
Distributions to shareholders (101,513) (49,937)
From net investment income
From net realized gain (507,564) -
TOTAL DISTRIBUTIONS (609,077) (49,937)
Share transactions 134,344,421 111,532,450
Net proceeds from sales of shares
Reinvestment of distributions 601,102 49,547
Cost of shares redeemed (74,047,825) (61,671,053)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 60,897,698 49,910,944
FROM SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) IN NET ASSETS 80,212,369 48,359,321
NET ASSETS
Beginning of period 48,359,321 -
End of period (including undistributed net investment $ 128,571,690 $ 48,359,321
income of $675,298 and $30,869, respectively)
OTHER INFORMATION
Shares
Sold 11,495,589 10,572,077
Issued in reinvestment of distributions 56,495 4,652
Redeemed (6,489,573) (5,822,873)
Net increase (decrease) 5,062,511 4,753,856
FINANCIAL HIGHLIGHTS
YEAR ENDED SEPTEMBER 17,
JUNE 30, 1993
1995 (COMMENCEMENT OF
OPERATIONS) TO
JUNE 30,
1994
SELECTED PER-SHARE DATA
Net asset value, beginning of period $ 10.17 $ 10.00
Income from Investment Operations
Net investment income .08 .02
Net realized and unrealized gain (loss) 2.97 .16 D
Total from investment operations 3.05 .18
Less Distributions (.02) (.01)
From net investment income
From net realized gain (.10) -
Total distributions (.12) (.01)
Net asset value, end of period $ 13.10 $ 10.17
TOTAL RETURN B, C 30.26% 1.80%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 128,572 $ 48,359
Ratio of expenses to average net assets 1.19% 1.58% A
Ratio of expenses to average net assets before 1.22% 1.58% A
expense reductions
Ratio of net investment income to average net assets 1.15% .23% A
Portfolio turnover rate 180% 320% A
A ANNUALIZED
B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN (SEE NOTE 6 OF NOTES TO FINANCIAL
STATEMENTS).
C TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED.
D THE AMOUNT SHOWN FOR A SHARE OUTSTANDING DOES NOT CORRESPOND WITH THE
AGGREGATE NET LOSS ON INVESTMENTS FOR THE PERIOD ENDED DUE TO THE TIMING OF
SALES AND REPURCHASES OF FUND SHARES IN RELATION TO FLUCTUATING MARKET
VALUES OF THE INVESTMENTS OF THE FUND.
NOTES TO FINANCIAL STATEMENTS
For the period ended June 30, 1995
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 of their purchase date 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 and other assets and
liabilities denominated in a foreign currency are translated into U.S.
dollars at the prevailing rates of exchange at period end. Purchases and
sales of securities, income receipts, and expense payments are translated
into U.S. dollars at the prevailing exchange rate on the respective dates
of the transactions.
Net realized gains and losses on foreign currency transactions represent
net gains and losses from sales and maturities of forward currency
contracts, disposition of foreign currencies, currency gains and losses
realized between the trade and settlement dates on securities transactions,
and the difference between the amount of net investment income accrued and
the U.S. dollar amount actually received. The effects of changes in foreign
currency exchange rates on investments in securities are included with the
net realized and unrealized gain or loss on investment securities.
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 substantially 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 withheld where recovery of such taxes is uncertain.
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.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences, which may result in distribution
reclassifications, are primarily due to differing treatments for futures
and options transactions and losses deferred due to wash sales and excise
tax regulations. 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 basis differences relating to shareholder
distributions will result in reclassifications to paid in capital and may
affect the per-share allocation between net investment income and realized
and unrealized gain (loss). Undistributed net investment income (loss) and
accumulated undistributed net realized gain (loss) on investments and
foreign currency transactions may include temporary book and tax basis
differences which will reverse in a subsequent period. Any taxable income
or gain remaining at fiscal year end is distributed in the following year.
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.
FORWARD FOREIGN CURRENCY CONTRACTS. The fund may use foreign currency
contracts to facilitate transactions in foreign securities and to manage
the fund's currency exposure. Contracts to buy generally are used to
acquire exposure to foreign currencies, while contracts to sell are used to
hedge the fund's investments against currency fluctuations. Also, a
contract to buy or sell can offset a previous contract. Losses may arise
from changes in the value of the foreign currency or if the counterparties
do not perform under the contracts' terms.
The U.S. dollar value of forward foreign currency contracts is determined
using forward currency exchange rates supplied by a quotation service.
Purchases and sales of forward foreign currency contracts having the same
settlement date and broker are offset and any realized gain (loss) is
recognized on the date of offset; otherwise, gain (loss) is recognized on
settlement date.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the fund, along with other affiliated
entities of Fidelity Management & Research Company (FMR), may transfer
uninvested cash balances into one or more joint trading accounts. These
balances are invested in one or more repurchase agreements that mature in
60 days or less from the date of purchase, and are collateralized by U.S.
Treasury or Federal Agency obligations.
REPURCHASE AGREEMENTS. The fund, through its custodian, receives delivery
of the underlying securities, whose market
2. OPERATING POLICIES - CONTINUED
REPURCHASE AGREEMENTS - CONTINUED
value is required to be at least 102% of the resale price at the time of
purchase. FMR, the fund's investment adviser, is responsible for
determining that the value of these underlying securities remains at least
equal to the resale price.
FUTURES CONTRACTS AND OPTIONS. The fund may use futures and options
contracts to manage its exposure to the stock market and to fluctuations in
interest rates. Buying futures, writing puts, and buying calls tend to
increase the fund's exposure to the underlying instrument. Selling futures,
buying puts, and writing calls tend to decrease the fund's exposure to the
underlying instrument, or hedge other fund investments. Futures contracts
involve, to varying degrees, risk of loss in excess of the futures
variation margin reflected in the Statement of Assets and Liabilities. The
underlying face amount at value is shown in the schedule of investments
under the caption "Futures Contracts." This amount reflects each contract's
exposure to the underlying instrument at period end. Losses may arise from
changes in the value of the underlying instruments, if there is an illiquid
secondary market for the contracts, or if the counterparties do not perform
under the contracts' terms.
Futures contracts are valued at the settlement price established each day
by the board of trade or exchange on which they are traded. Exchange-traded
options 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. JOINT TRADING ACCOUNT.
At the end of the period, the fund had 20% or more of its total investments
in repurchase agreements through a joint trading account. These repurchase
agreements were with entities whose creditworthiness has been reviewed and
found satisfactory by FMR. The repurchase agreements were dated June 30,
1995 and due July 3, 1995. The maturity values of the joint trading account
investments were $26,258,451 at 6.15%. The investments in repurchase
agreements through the joint trading account are summarized as follows:
SUMMARY OF JOINT TRADING
Number of dealers or banks 22
Maximum amount with one dealer or bank 17.1%
Aggregate principal amount of agreements $15,088,144,000
Aggregate maturity amount of agreements $15,095,872,000
Aggregate market value of collateral $15,428,420,000
Coupon rates of collateral 0.0% to 13 3/4%
Maturity dates of collateral 7/31/95 to 2/15/25
4. PURCHASES AND SALES OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $141,396,475 and $99,820,871, respectively.
The market value of futures contracts opened and closed during the period
amounted to $81,671,675 and $67,311,666, respectively.
5. 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 and is based on
the monthly average net assets of all the mutual funds advised by FMR. The
rates ranged from .2850% to .5200% for the period July 1, 1994 to July 31,
1994 and .2700% to .5200% for the period August 1, 1994 to June 30, 1995.
In the event that these rates were lower than the contractual rates in
effect during those periods, FMR voluntarily implemented the above rates,
as they resulted in the same or a lower management fee. The annual
individual fund fee rate is .30%. The basic fee is subject to a performance
adjustment (up to a maximum of (plus/minus) .20%) based on the fund's
investment performance as compared to the appropriate index over a
specified period of time. The fund's performance adjustment took effect in
September 1994. For the period, the management fee was equivalent to an
annual rate of .64% of average net assets after the performance adjustment.
SALES LOAD. For the period, Fidelity Distributors Corporation (FDC), an
affiliate of FMR and the general distributor of the fund, received sales
charges of $60,600 on sales of shares of the fund. Beginning January 1,
1995 through December 31, 1996, FDC has voluntarily waived the sales charge
(3% of the offering price) on sales of shares.
TRANSFER AGENT FEES. Fidelity Service Co. (FSC), an affiliate of FMR, is
the fund's transfer, dividend disbursing and shareholder servicing agent.
During the period July 1, 1994 to December 31, 1994, FSC received fees
based on the type, size, number of accounts and the number of transactions
made by shareholders. Effective January 1, 1995, the Board of Trustees
approved a revised transfer agent contract pursuant to which FSC receives
account fees and asset-based fees that vary according to account size and
type of account. FSC pays for typesetting, printing and mailing of all
shareholder reports, except proxy statements.
ACCOUNTING FEES. 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 $57,628 for the period.
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
$14,845 under this arrangement.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees of Fidelity Hastings Street Trust and the Shareholders of
Fidelity Fifty:
We have audited the accompanying statement of assets and liabilities of
Fidelity Hastings Street Trust: Fidelity Fifty, including the schedule of
portfolio investments, as of June 30, 1995, and the related statement of
operations for the year then ended, the statement of changes in net assets
and the financial highlights for the year then ended and for the period
September 17, 1993 (commencement of operations) to June 30, 1994. These
financial statements and financial highlights are the responsibility of the
fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of June 30, 1995 by correspondence with the custodian
and brokers. An audit also includes assessing the accounting principles
used and significant estimates made by management,
as well as evaluating the overall financial statement presentation. We
believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position
of Fidelity Hastings Street Trust: Fidelity Fifty as of June 30,1995, the
results of its operations for the year then ended, the changes in its net
assets and the financial highlights for the year then ended and for the
period September 17, 1993 (commencement of operations) to June 30, 1994, in
conformity with generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
August 3, 1995
DISTRIBUTIONS
The Board of Trustees of Fidelity Fifty voted to pay on August 7, 1995, to
shareholders of record at the opening of business on August 4, 1995, a
distribution of $.69 derived from capital gains realized from sales of
portfolio securities and a dividend of $.06 from net investment income.
A total of 0.91% of the dividends distributed during the fiscal year was
derived from interest on U.S. Government securities which is generally
exempt from state income tax.
A total of 100% of the dividends distributed during the fiscal year
qualifies for the dividends-received deductions for corporate shareholders.
The fund will notify shareholders in January 1996 of these percentages for
use in preparing 1995 income tax returns.
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)(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)(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.
TO WRITE FIDELITY
If more than one address is listed, 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.
(LETTER_GRAPHIC)(LETTER_GRAPHIC)MAKING CHANGES
TO YOUR ACCOUNT
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
(LETTER_GRAPHIC)(LETTER_GRAPHIC)FOR NON-RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
OVERNIGHT EXPRESS
Fidelity Investments
100 Crosby Parkway - KP2C
Covington, KY 41015-4399
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions - CP6I
400 East Las Colinas Blvd.
Irving, TX 75309-5517
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 193
Boston, MA 02210-0193
(LETTER_GRAPHIC)(LETTER_GRAPHIC)FOR RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions - CP6R
400 East Las Colinas Blvd.
Irving, TX 75309-5517
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 East 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
6300 Canoga Avenue
Woodland Hills, 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
90 Alhambra Plaza
Coral Gables, FL
4090 N. Ocean Boulevard
Ft. Lauderdale, FL
4001 Tamiami Trail, North
Naples, FL
1907 West State Road 434
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
7401 Wisconsin Avenue
Bethesda, MD
1 West Pennsylvania Ave.
Towson, MD
MASSACHUSETTS
470 Boylston Street
Boston, MA
21 Congress Street
Boston, MA
25 State Street
Boston, MA
300 Granite Street
Braintree, MA
44 Mall Road
Burlington, MA
416 Belmont Street
Worcester, MA
MICHIGAN
280 North Woodward Ave.
Birmingham, MI
26955 Northwestern Hwy.
Southfield, MI
MINNESOTA
7600 France Avenue South
Edina, MN
MISSOURI
700 West 47th Street
Kansas City, MO
8885 Ladue Road
Ladue, 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
1271 Avenue of the
Americas
New York, NY
71 Broadway
New York, NY
350 Park Avenue
New York, NY
10 Bank Street
White Plains, NY
NORTH CAROLINA
4611 Sharon Road
Charlotte, NC
2200 West Main Street
Durham, NC
OHIO
600 Vine Street
Cincinnati, OH
28699 Chagrin Boulevard
Woodmere Village, OH
1903 East Ninth Street
Cleveland, 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
2701 Drexel Drive
Houston, TX
1010 Lamar Street
Houston, TX
400 East Las Colinas Blvd.
Irving, TX
14100 San Pedro
San Antonio, TX
UTAH
215 South State 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
William J. Hayes, Vice President
Arthur S. Loring, Secretary
Stephen P. Jonas, Treasurer
Robert H. Morrison, Manager,
Security Transactions
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
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'S GROWTH FUNDS
Blue Chip Growth Fund
Capital Appreciation Fund
Contrafund
Disciplined Equity Fund
Dividend Growth Fund
Emerging Growth Fund
Export Fund
Fidelity Fifty
Growth Company Fund
Low-Priced Stock Fund
Magellan(registered trademark) Fund
Mid-Cap Stock Fund
New Millennium(trademark) Fund
OTC Portfolio
Retirement Growth Fund
Small Cap Growth 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)
(registered trademark)
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE