UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-1400
Fidelity Contrafund
(Exact name of registrant as specified in charter)
82 Devonshire St., Boston, Massachusetts 02109
(Address of principal executive offices) (Zip code)
Eric D. Roiter, Secretary
82 Devonshire St.
Boston, Massachusetts 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: 617-563-7000
Date of fiscal year end: | December 31 |
Date of reporting period: | June 30, 2006 |
Item 1. Reports to Stockholders
(Fidelity Investment logo)(registered trademark)
Fidelity® Advisor
New Insights
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
June 30, 2006
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | Ned Johnson's message to shareholders. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, | |
Notes | Notes to the financial statements. | |
Board Approval of Investment Advisory Contracts and Management Fees |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR Corp. or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent quarterly holdings report, semiannual report, or annual report on Fidelity's web site at http://www.advisor.fidelity.com.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Annual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
Although many securities markets made gains in early 2006, inflation concerns led to mixed results through the year's mid-point. Financial markets are always unpredictable. There are, however, a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (January 1, 2006 to June 30, 2006).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Semiannual Report
Investments - continued
Investments
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Beginning | Ending | Expenses Paid | |
Class A | |||
Actual | $ 1,000.00 | $ 1,038.40 | $ 5.76 |
HypotheticalA | $ 1,000.00 | $ 1,019.14 | $ 5.71 |
Class T | |||
Actual | $ 1,000.00 | $ 1,037.40 | $ 6.77 |
HypotheticalA | $ 1,000.00 | $ 1,018.15 | $ 6.71 |
Class B | |||
Actual | $ 1,000.00 | $ 1,034.20 | $ 9.84 |
HypotheticalA | $ 1,000.00 | $ 1,015.12 | $ 9.74 |
Class C | |||
Actual | $ 1,000.00 | $ 1,034.80 | $ 9.38 |
HypotheticalA | $ 1,000.00 | $ 1,015.57 | $ 9.30 |
Institutional Class | |||
Actual | $ 1,000.00 | $ 1,039.90 | $ 4.30 |
HypotheticalA | $ 1,000.00 | $ 1,020.58 | $ 4.26 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Annualized | |
Class A | 1.14% |
Class T | 1.34% |
Class B | 1.95% |
Class C | 1.86% |
Institutional Class | .85% |
Semiannual Report
Investment Changes
Top Ten Stocks as of June 30, 2006 | ||
% of fund's | % of fund's net assets | |
Google, Inc. Class A (sub. vtg.) | 4.1 | 4.3 |
Berkshire Hathaway, Inc. Class A | 2.5 | 1.8 |
Genentech, Inc. | 2.4 | 2.3 |
Hewlett-Packard Co. | 2.3 | 2.0 |
EnCana Corp. | 2.3 | 1.8 |
Schlumberger Ltd. (NY Shares) | 1.8 | 1.0 |
Wells Fargo & Co. | 1.6 | 1.3 |
America Movil SA de CV Series L sponsored ADR | 1.5 | 1.5 |
Roche Holding AG (participation certificate) | 1.5 | 1.3 |
Valero Energy Corp. | 1.4 | 1.7 |
21.4 | ||
Top Five Market Sectors as of June 30, 2006 | ||
% of fund's | % of fund's net assets | |
Information Technology | 19.9 | 25.4 |
Financials | 17.7 | 15.7 |
Energy | 11.3 | 9.0 |
Health Care | 9.1 | 14.5 |
Industrials | 8.9 | 5.2 |
Asset Allocation (% of fund's net assets) | |||||||
As of June 30, 2006 * | As of December 31, 2005 ** | ||||||
![]() | Stocks 92.0% | ![]() | Stocks 89.9% | ||||
![]() | Bonds 0.0% | ![]() | Bonds 0.1% | ||||
![]() | Convertible | ![]() | Convertible | ||||
![]() | Short-Term | ![]() | Short-Term | ||||
* Foreign investments | 27.3% | ** Foreign investments | 24.6% |
Semiannual Report
Investments June 30, 2006 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 92.0% | |||
Shares | Value (Note 1) (000s) | ||
CONSUMER DISCRETIONARY - 8.3% | |||
Auto Components - 0.0% | |||
Johnson Controls, Inc. | 4,400 | $ 362 | |
LKQ Corp. (a) | 8,100 | 154 | |
516 | |||
Automobiles - 0.8% | |||
General Motors Corp. (d) | 281,200 | 8,377 | |
Harley-Davidson, Inc. | 45,100 | 2,476 | |
Honda Motor Co. Ltd. | 188,000 | 5,982 | |
Hyundai Motor Co. | 6,700 | 569 | |
Renault SA | 19,100 | 2,052 | |
Toyota Motor Corp. | 727,700 | 38,055 | |
57,511 | |||
Distributors - 0.0% | |||
Li & Fung Ltd. | 849,200 | 1,717 | |
Diversified Consumer Services - 0.0% | |||
Laureate Education, Inc. (a) | 13,300 | 567 | |
Hotels, Restaurants & Leisure - 1.9% | |||
Ambassadors Group, Inc. | 14,538 | 420 | |
Aristocrat Leisure Ltd. (d) | 1,040,000 | 9,955 | |
Chipotle Mexican Grill, Inc. Class A | 114,000 | 6,948 | |
International Game Technology | 61,000 | 2,314 | |
Las Vegas Sands Corp. (a) | 327,600 | 25,507 | |
Panera Bread Co. Class A (a) | 376,364 | 25,307 | |
Penn National Gaming, Inc. (a) | 209,500 | 8,124 | |
Ruth's Chris Steak House, Inc. | 77,900 | 1,591 | |
Starbucks Corp. (a) | 689,300 | 26,028 | |
Station Casinos, Inc. | 183,900 | 12,520 | |
Tim Hortons, Inc. (d) | 128,300 | 3,304 | |
Wynn Resorts Ltd. (a) | 109,100 | 7,997 | |
130,015 | |||
Household Durables - 1.0% | |||
Fourlis Holdings SA | 500,000 | 7,100 | |
Garmin Ltd. | 143,000 | 15,078 | |
KB Home | 14,900 | 683 | |
Matsushita Electric Industrial Co. Ltd. | 474,100 | 10,018 | |
Sharp Corp. | 252,000 | 3,982 | |
Sony Corp. | 614,300 | 27,054 | |
Common Stocks - continued | |||
Shares | Value (Note 1) (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Household Durables - continued | |||
Sony Corp. sponsored ADR | 10,600 | $ 467 | |
Whirlpool Corp. | 7,700 | 636 | |
65,018 | |||
Internet & Catalog Retail - 0.1% | |||
Coldwater Creek, Inc. (a) | 41,450 | 1,109 | |
Expedia, Inc. (a) | 149,200 | 2,234 | |
Liberty Media Holding Corp. - Interactive Series A (a) | 159,900 | 2,760 | |
Submarino SA | 50,000 | 1,004 | |
VistaPrint Ltd. | 58,600 | 1,567 | |
8,674 | |||
Leisure Equipment & Products - 0.0% | |||
Aruze Corp. | 28,000 | 609 | |
Media - 1.6% | |||
CBS Corp. Class B | 19,500 | 527 | |
Focus Media Holding Ltd. ADR | 68,100 | 4,437 | |
Live Nation, Inc. (a) | 56,800 | 1,156 | |
McGraw-Hill Companies, Inc. | 77,900 | 3,913 | |
News Corp. Class B | 572,700 | 11,557 | |
NTL, Inc. | 43,531 | 1,084 | |
Seek Ltd. | 1,000,000 | 3,976 | |
Sirius Satellite Radio, Inc. (a)(d) | 751,600 | 3,570 | |
The Walt Disney Co. | 2,493,500 | 74,805 | |
The Weinstein Co. III Holdings, LLC Class A-1 (a)(g) | 2,267 | 2,267 | |
Thomson Corp. | 52,400 | 2,019 | |
109,311 | |||
Multiline Retail - 0.6% | |||
JCPenney Co., Inc. | 182,400 | 12,314 | |
Marks & Spencer Group PLC | 2,349,100 | 25,504 | |
Nordstrom, Inc. | 92,700 | 3,384 | |
41,202 | |||
Specialty Retail - 2.1% | |||
AnnTaylor Stores Corp. (a) | 152,000 | 6,594 | |
Bakers Footwear Group, Inc. (a)(d)(e) | 620,600 | 8,633 | |
Best Buy Co., Inc. | 453,650 | 24,878 | |
Casual Male Retail Group, Inc. (a) | 297,700 | 2,992 | |
Circuit City Stores, Inc. | 713,405 | 19,419 | |
Inditex SA | 49,700 | 2,097 | |
J. Crew Group, Inc. | 230,100 | 6,316 | |
Common Stocks - continued | |||
Shares | Value (Note 1) (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Specialty Retail - continued | |||
Limited Brands, Inc. | 210,400 | $ 5,384 | |
O'Reilly Automotive, Inc. (a) | 16,900 | 527 | |
Office Depot, Inc. (a) | 804,800 | 30,582 | |
Payless ShoeSource, Inc. (a) | 71,400 | 1,940 | |
Staples, Inc. | 509,300 | 12,386 | |
The Children's Place Retail Stores, Inc. (a) | 11,400 | 685 | |
TJX Companies, Inc. | 734,400 | 16,788 | |
Tractor Supply Co. (a) | 14,400 | 796 | |
Wet Seal, Inc. Class A (a) | 193,200 | 943 | |
Zumiez, Inc. (a) | 13,000 | 488 | |
141,448 | |||
Textiles, Apparel & Luxury Goods - 0.2% | |||
Burberry Group PLC | 91,700 | 729 | |
Coach, Inc. (a) | 102,000 | 3,050 | |
Luxottica Group Spa sponsored ADR | 23,400 | 635 | |
Phillips-Van Heusen Corp. | 24,800 | 946 | |
Puma AG | 9,000 | 3,499 | |
Under Armour, Inc. Class A (sub. vtg.) | 65,500 | 2,792 | |
VF Corp. | 65,400 | 4,442 | |
16,093 | |||
TOTAL CONSUMER DISCRETIONARY | 572,681 | ||
CONSUMER STAPLES - 5.4% | |||
Beverages - 2.4% | |||
Anheuser-Busch Companies, Inc. | 19,900 | 907 | |
Diageo PLC sponsored ADR | 471,100 | 31,823 | |
Hansen Natural Corp. (a) | 20,100 | 3,826 | |
InBev SA | 20,000 | 981 | |
Jones Soda Co. (a)(d) | 310,890 | 2,798 | |
PepsiCo, Inc. | 1,309,300 | 78,610 | |
The Coca-Cola Co. | 1,040,400 | 44,758 | |
163,703 | |||
Food & Staples Retailing - 0.4% | |||
Costco Wholesale Corp. | 49,400 | 2,822 | |
Safeway, Inc. | 27,800 | 723 | |
Tesco PLC | 1,296,585 | 8,010 | |
Common Stocks - continued | |||
Shares | Value (Note 1) (000s) | ||
CONSUMER STAPLES - continued | |||
Food & Staples Retailing - continued | |||
Wal-Mart de Mexico SA de CV Series V | 787,478 | $ 2,164 | |
Wal-Mart Stores, Inc. | 299,500 | 14,427 | |
28,146 | |||
Food Products - 0.8% | |||
Campbell Soup Co. | 37,600 | 1,395 | |
General Mills, Inc. | 39,100 | 2,020 | |
Groupe Danone | 118,500 | 15,060 | |
Hershey Co. | 189,100 | 10,414 | |
Kellogg Co. | 72,600 | 3,516 | |
Nestle SA (Reg.) | 52,546 | 16,505 | |
Sara Lee Corp. | 164,500 | 2,635 | |
TreeHouse Foods, Inc. (a) | 183,500 | 4,384 | |
Wm. Wrigley Jr. Co. | 80,050 | 3,631 | |
59,560 | |||
Household Products - 1.6% | |||
Colgate-Palmolive Co. | 548,500 | 32,855 | |
Procter & Gamble Co. | 1,387,067 | 77,121 | |
109,976 | |||
Personal Products - 0.2% | |||
Estee Lauder Companies, Inc. Class A | 90,300 | 3,492 | |
Herbalife Ltd. (a) | 214,800 | 8,571 | |
12,063 | |||
TOTAL CONSUMER STAPLES | 373,448 | ||
ENERGY - 11.3% | |||
Energy Equipment & Services - 3.0% | |||
Baker Hughes, Inc. | 488,900 | 40,016 | |
BJ Services Co. | 51,600 | 1,923 | |
Halliburton Co. | 200,700 | 14,894 | |
Hydril Co. (a) | 190,000 | 14,919 | |
Schlumberger Ltd. (NY Shares) | 1,870,800 | 121,808 | |
Smith International, Inc. | 62,644 | 2,786 | |
Superior Well Services, Inc. | 310,000 | 7,719 | |
204,065 | |||
Oil, Gas & Consumable Fuels - 8.3% | |||
Addax Petroleum Corp. | 116,200 | 3,107 | |
BG Group PLC sponsored ADR | 174,500 | 11,671 | |
Common Stocks - continued | |||
Shares | Value (Note 1) (000s) | ||
ENERGY - continued | |||
Oil, Gas & Consumable Fuels - continued | |||
BP PLC sponsored ADR | 273,600 | $ 19,045 | |
Cameco Corp. | 66,300 | 2,641 | |
Canadian Natural Resources Ltd. | 111,600 | 6,170 | |
Canadian Oil Sands Trust unit | 858,300 | 27,680 | |
CONSOL Energy, Inc. | 377,900 | 17,655 | |
EnCana Corp. | 2,974,800 | 156,641 | |
EOG Resources, Inc. | 242,200 | 16,794 | |
Exxon Mobil Corp. | 838,300 | 51,430 | |
Foundation Coal Holdings, Inc. | 32,100 | 1,506 | |
Goodrich Petroleum Corp. (a) | 23,730 | 674 | |
Hess Corp. | 27,900 | 1,475 | |
Highpine Oil & Gas Ltd. (a)(f) | 23,300 | 388 | |
Hugoton Royalty Trust | 2 | 0 | |
Husky Energy, Inc. | 21,300 | 1,337 | |
Imperial Oil Ltd. | 21,000 | 767 | |
Kerr-McGee Corp. | 51,800 | 3,592 | |
Murphy Oil Corp. | 347,800 | 19,428 | |
Noble Energy, Inc. | 196,500 | 9,208 | |
Occidental Petroleum Corp. | 147,100 | 15,085 | |
Peabody Energy Corp. | 309,400 | 17,249 | |
PetroChina Co. Ltd. sponsored ADR (d) | 324,800 | 35,069 | |
Petroleo Brasileiro SA Petrobras sponsored ADR | 105,500 | 9,422 | |
Sasol Ltd. sponsored ADR | 33,600 | 1,298 | |
Suncor Energy, Inc. | 152,300 | 12,325 | |
Talisman Energy, Inc. | 501,300 | 8,748 | |
Total SA sponsored ADR | 89,600 | 5,871 | |
Ultra Petroleum Corp. (a) | 191,000 | 11,321 | |
Valero Energy Corp. | 1,463,234 | 97,334 | |
Western Oil Sands, Inc. Class A (a) | 144,500 | 4,005 | |
XTO Energy, Inc. | 199,000 | 8,810 | |
577,746 | |||
TOTAL ENERGY | 781,811 | ||
FINANCIALS - 17.7% | |||
Capital Markets - 0.6% | |||
Charles Schwab Corp. | 761,000 | 12,161 | |
Goldman Sachs Group, Inc. | 151,900 | 22,850 | |
Lehman Brothers Holdings, Inc. | 32,900 | 2,143 | |
Common Stocks - continued | |||
Shares | Value (Note 1) (000s) | ||
FINANCIALS - continued | |||
Capital Markets - continued | |||
Mellon Financial Corp. | 208,800 | $ 7,189 | |
SEI Investments Co. | 5,800 | 284 | |
44,627 | |||
Commercial Banks - 4.2% | |||
Allied Irish Banks PLC | 616,500 | 14,907 | |
Anglo Irish Bank Corp. PLC | 1,753,900 | 27,372 | |
Banco Itau Holding Financeira SA sponsored ADR (non-vtg.) | 65,300 | 1,904 | |
Bank of Ireland | 230,400 | 4,139 | |
Bank of the Ozarks, Inc. | 39,100 | 1,302 | |
Center Financial Corp., California | 50,000 | 1,182 | |
Commerce Bancorp, Inc., New Jersey | 161,900 | 5,775 | |
Compass Bancshares, Inc. | 112,800 | 6,272 | |
Home Bancshares, Inc. | 8,100 | 184 | |
HSBC Holdings PLC sponsored ADR | 113,200 | 10,001 | |
M&T Bank Corp. | 340,100 | 40,105 | |
Marshall & Ilsley Corp. | 28,000 | 1,281 | |
National Australia Bank Ltd. | 131,500 | 3,436 | |
PNC Financial Services Group, Inc. | 32,700 | 2,295 | |
Preferred Bank, Los Angeles California (e) | 380,004 | 20,372 | |
PrivateBancorp, Inc. | 101,000 | 4,182 | |
Royal Bank of Scotland Group PLC | 438,000 | 14,404 | |
Shinhan Financial Group Co. Ltd. | 48,530 | 2,276 | |
Standard Chartered PLC (United Kingdom) | 163,800 | 3,999 | |
SunTrust Banks, Inc. | 52,900 | 4,034 | |
Uniao de Bancos Brasileiros SA (Unibanco) GDR | 87,700 | 5,822 | |
Wells Fargo & Co. | 1,684,800 | 113,016 | |
Zions Bancorp | 77,100 | 6,009 | |
294,269 | |||
Consumer Finance - 1.8% | |||
American Express Co. | 1,255,200 | 66,802 | |
SLM Corp. | 1,049,100 | 55,518 | |
122,320 | |||
Diversified Financial Services - 1.7% | |||
Bank of America Corp. | 1,024,100 | 49,259 | |
Citigroup, Inc. | 603,300 | 29,103 | |
JPMorgan Chase & Co. | 667,100 | 28,018 | |
Moody's Corp. | 183,600 | 9,999 | |
116,379 | |||
Common Stocks - continued | |||
Shares | Value (Note 1) (000s) | ||
FINANCIALS - continued | |||
Insurance - 8.2% | |||
Admiral Group PLC | 780,700 | $ 8,967 | |
Allstate Corp. | 865,100 | 47,347 | |
American International Group, Inc. | 557,500 | 32,920 | |
Assurant, Inc. | 199,100 | 9,636 | |
Axis Capital Holdings Ltd. | 32,400 | 927 | |
Berkshire Hathaway, Inc. Class A (a)(d) | 1,853 | 169,844 | |
Cincinnati Financial Corp. | 17,100 | 804 | |
Everest Re Group Ltd. | 159,300 | 13,791 | |
Genworth Financial, Inc. Class A (non-vtg.) | 541,400 | 18,862 | |
Lincoln National Corp. | 363,881 | 20,537 | |
Loews Corp. | 795,700 | 28,208 | |
MetLife, Inc. | 1,317,100 | 67,449 | |
MetLife, Inc. unit | 406,600 | 11,210 | |
ProAssurance Corp. (a) | 5,000 | 241 | |
Progressive Corp. | 345,500 | 8,883 | |
Prudential Financial, Inc. | 845,200 | 65,672 | |
SAFECO Corp. | 21,900 | 1,234 | |
StanCorp Financial Group, Inc. | 56,800 | 2,892 | |
The Chubb Corp. | 832,700 | 41,552 | |
The St. Paul Travelers Companies, Inc. | 21,600 | 963 | |
W.R. Berkley Corp. | 308,361 | 10,524 | |
White Mountains Insurance Group Ltd. | 8,383 | 4,083 | |
Zenith National Insurance Corp. | 61,500 | 2,440 | |
568,986 | |||
Real Estate Investment Trusts - 0.1% | |||
CBL & Associates Properties, Inc. | 17,800 | 693 | |
Equity Office Properties Trust | 20,100 | 734 | |
Equity Residential (SBI) | 400 | 18 | |
Vornado Realty Trust | 61,300 | 5,980 | |
7,425 | |||
Real Estate Management & Development - 0.2% | |||
CB Richard Ellis Group, Inc. Class A (a) | 450,400 | 11,215 | |
Mitsui Fudosan Co. Ltd. | 112,000 | 2,432 | |
13,647 | |||
Thrifts & Mortgage Finance - 0.9% | |||
Astoria Financial Corp. | 44,600 | 1,358 | |
Countrywide Financial Corp. | 90,200 | 3,435 | |
Common Stocks - continued | |||
Shares | Value (Note 1) (000s) | ||
FINANCIALS - continued | |||
Thrifts & Mortgage Finance - continued | |||
Golden West Financial Corp., Delaware | 733,200 | $ 54,403 | |
Hudson City Bancorp, Inc. | 160,200 | 2,135 | |
61,331 | |||
TOTAL FINANCIALS | 1,228,984 | ||
HEALTH CARE - 9.1% | |||
Biotechnology - 3.8% | |||
Alexion Pharmaceuticals, Inc. (a) | 152,305 | 5,501 | |
Amylin Pharmaceuticals, Inc. (a) | 206,900 | 10,215 | |
Arena Pharmaceuticals, Inc. (a) | 260,300 | 3,014 | |
Celgene Corp. (a) | 520,000 | 24,664 | |
Genentech, Inc. (a) | 2,037,900 | 166,700 | |
Genmab AS (a) | 60,400 | 1,947 | |
Gilead Sciences, Inc. (a) | 679,900 | 40,223 | |
GTx, Inc. (a) | 25,000 | 228 | |
Hutchison China Meditech Ltd. | 15 | 0 | |
MannKind Corp. (a)(d) | 290,006 | 6,180 | |
MannKind Corp. warrants 8/3/10 (a)(g) | 29,881 | 391 | |
Medarex, Inc. (a) | 431,700 | 4,149 | |
Myogen, Inc. (a) | 82,800 | 2,401 | |
Renovis, Inc. (a) | 23,400 | 358 | |
Tanox, Inc. (a) | 70,300 | 972 | |
Theravance, Inc. (a) | 30,300 | 693 | |
ViaCell, Inc. (a)(d) | 87,800 | 399 | |
268,035 | |||
Health Care Equipment & Supplies - 1.0% | |||
Becton, Dickinson & Co. | 39,300 | 2,402 | |
C.R. Bard, Inc. | 122,000 | 8,938 | |
Conceptus, Inc. (a) | 24,100 | 329 | |
DexCom, Inc. (a) | 90,800 | 1,233 | |
DJ Orthopedics, Inc. (a) | 125,500 | 4,622 | |
Gen-Probe, Inc. (a) | 61,600 | 3,325 | |
Intuitive Surgical, Inc. (a) | 17,300 | 2,041 | |
Inverness Medical Innovations, Inc. (a) | 15,000 | 423 | |
IRIS International, Inc. (a)(d) | 545,400 | 7,177 | |
Kyphon, Inc. (a) | 164,000 | 6,291 | |
NeuroMetrix, Inc. (a) | 30,500 | 929 | |
Nobel Biocare Holding AG (Switzerland) | 22,293 | 5,293 | |
Common Stocks - continued | |||
Shares | Value (Note 1) (000s) | ||
HEALTH CARE - continued | |||
Health Care Equipment & Supplies - continued | |||
Northstar Neuroscience, Inc. | 87,500 | $ 908 | |
NuVasive, Inc. (a) | 81,600 | 1,488 | |
ResMed, Inc. (a) | 259,500 | 12,184 | |
St. Jude Medical, Inc. (a) | 270,600 | 8,773 | |
Viasys Healthcare, Inc. (a) | 55,800 | 1,428 | |
67,784 | |||
Health Care Providers & Services - 0.9% | |||
Aetna, Inc. | 989,900 | 39,527 | |
American Retirement Corp. (a) | 43,100 | 1,412 | |
Health Net, Inc. (a) | 48,600 | 2,195 | |
Nighthawk Radiology Holdings, Inc. | 31,000 | 556 | |
UnitedHealth Group, Inc. | 294,100 | 13,170 | |
VCA Antech, Inc. (a) | 108,500 | 3,464 | |
Visicu, Inc. | 9,700 | 171 | |
60,495 | |||
Health Care Technology - 0.0% | |||
Vital Images, Inc. (a) | 46,100 | 1,139 | |
Life Sciences Tools & Services - 0.2% | |||
Covance, Inc. (a) | 44,800 | 2,743 | |
Exelixis, Inc. (a) | 47,700 | 479 | |
Millipore Corp. (a) | 3,500 | 220 | |
Pharmaceutical Product Development, Inc. | 31,900 | 1,120 | |
Thermo Electron Corp. (a) | 260,100 | 9,426 | |
13,988 | |||
Pharmaceuticals - 3.2% | |||
Aspreva Pharmaceuticals Corp. (a) | 267,800 | 7,268 | |
AstraZeneca PLC sponsored ADR | 272,400 | 16,295 | |
Atherogenics, Inc. (a) | 32,400 | 423 | |
Barr Pharmaceuticals, Inc. (a) | 10,300 | 491 | |
Johnson & Johnson | 361,500 | 21,661 | |
Merck & Co., Inc. | 522,600 | 19,038 | |
New River Pharmaceuticals, Inc. (a) | 22,200 | 633 | |
Novartis AG sponsored ADR | 573,300 | 30,912 | |
Roche Holding AG (participation certificate) | 631,193 | 104,347 | |
Sanofi-Aventis sponsored ADR | 308,100 | 15,004 | |
Schering-Plough Corp. | 56,700 | 1,079 | |
Common Stocks - continued | |||
Shares | Value (Note 1) (000s) | ||
HEALTH CARE - continued | |||
Pharmaceuticals - continued | |||
Sepracor, Inc. (a) | 11,900 | $ 680 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 155,848 | 4,923 | |
222,754 | |||
TOTAL HEALTH CARE | 634,195 | ||
INDUSTRIALS - 8.9% | |||
Aerospace & Defense - 0.9% | |||
Armor Holdings, Inc. (a) | 39,000 | 2,138 | |
Heico Corp. Class A | 400,000 | 9,488 | |
L-3 Communications Holdings, Inc. | 6,400 | 483 | |
Lockheed Martin Corp. | 488,600 | 35,052 | |
Northrop Grumman Corp. | 54,400 | 3,485 | |
Precision Castparts Corp. | 24,600 | 1,470 | |
The Boeing Co. | 142,900 | 11,705 | |
United Technologies Corp. | 13,900 | 882 | |
64,703 | |||
Air Freight & Logistics - 1.0% | |||
C.H. Robinson Worldwide, Inc. | 820,372 | 43,726 | |
Expeditors International of Washington, Inc. | 27,400 | 1,535 | |
FedEx Corp. | 59,400 | 6,941 | |
United Parcel Service, Inc. Class B | 214,300 | 17,643 | |
69,845 | |||
Airlines - 0.4% | |||
Republic Airways Holdings, Inc. (a) | 50,100 | 853 | |
Ryanair Holdings PLC sponsored ADR (a) | 309,300 | 16,306 | |
Southwest Airlines Co. | 577,400 | 9,452 | |
26,611 | |||
Commercial Services & Supplies - 0.8% | |||
Aramark Corp. Class B | 388,400 | 12,860 | |
Brady Corp. Class A | 111,500 | 4,108 | |
Cendant Corp. | 85,500 | 1,393 | |
Huron Consulting Group, Inc. (a) | 400,000 | 14,036 | |
Monster Worldwide, Inc. (a) | 207,400 | 8,848 | |
Robert Half International, Inc. | 309,300 | 12,991 | |
The Brink's Co. | 54,600 | 3,080 | |
57,316 | |||
Common Stocks - continued | |||
Shares | Value (Note 1) (000s) | ||
INDUSTRIALS - continued | |||
Construction & Engineering - 0.3% | |||
Jacobs Engineering Group, Inc. (a) | 237,500 | $ 18,915 | |
URS Corp. (a) | 28,000 | 1,176 | |
20,091 | |||
Electrical Equipment - 1.3% | |||
Cooper Industries Ltd. Class A | 530,600 | 49,303 | |
Energy Conversion Devices, Inc. (a) | 16,100 | 587 | |
Evergreen Solar, Inc. (a) | 452,900 | 5,879 | |
GrafTech International Ltd. (a) | 500,000 | 2,900 | |
Q-Cells AG | 114,300 | 9,615 | |
Roper Industries, Inc. | 87,100 | 4,072 | |
SolarWorld AG (d) | 188,000 | 11,801 | |
Suntech Power Holdings Co. Ltd. sponsored ADR | 121,000 | 3,418 | |
Ultralife Batteries, Inc. (a)(d) | 39,000 | 395 | |
87,970 | |||
Industrial Conglomerates - 0.6% | |||
3M Co. | 449,100 | 36,274 | |
Hutchison Whampoa Ltd. | 301,000 | 2,748 | |
Siemens AG sponsored ADR | 33,200 | 2,882 | |
41,904 | |||
Machinery - 2.4% | |||
Caterpillar, Inc. | 376,200 | 28,019 | |
Cummins, Inc. | 121,500 | 14,853 | |
Danaher Corp. | 754,377 | 48,522 | |
IDEX Corp. | 543,700 | 25,663 | |
Joy Global, Inc. | 363,757 | 18,948 | |
PACCAR, Inc. | 326,366 | 26,886 | |
162,891 | |||
Marine - 0.1% | |||
American Commercial Lines, Inc. | 123,300 | 7,429 | |
Road & Rail - 0.8% | |||
Canadian National Railway Co. | 494,700 | 21,609 | |
CSX Corp. | 10,300 | 726 | |
Heartland Express, Inc. | 182,533 | 3,266 | |
Knight Transportation, Inc. | 58,130 | 1,174 | |
Landstar System, Inc. | 112,900 | 5,332 | |
Norfolk Southern Corp. | 44,800 | 2,384 | |
Common Stocks - continued | |||
Shares | Value (Note 1) (000s) | ||
INDUSTRIALS - continued | |||
Road & Rail - continued | |||
Swift Transportation Co., Inc. (a) | 257,100 | $ 8,165 | |
Universal Truckload Services, Inc. (a) | 469,903 | 16,038 | |
58,694 | |||
Trading Companies & Distributors - 0.3% | |||
Fastenal Co. | 147,500 | 5,943 | |
Mitsui & Co. Ltd. | 1,102,000 | 15,563 | |
21,506 | |||
TOTAL INDUSTRIALS | 618,960 | ||
INFORMATION TECHNOLOGY - 19.9% | |||
Communications Equipment - 1.8% | |||
CommScope, Inc. (a) | 25,500 | 801 | |
Corning, Inc. (a) | 540,300 | 13,070 | |
ECI Telecom Ltd. (a) | 228,900 | 1,845 | |
F5 Networks, Inc. (a) | 94,700 | 5,065 | |
InterDigital Communication Corp. (a) | 42,500 | 1,484 | |
Ixia (a) | 354,600 | 3,191 | |
Nice Systems Ltd. sponsored ADR (a) | 503,500 | 14,168 | |
Nokia Corp. sponsored ADR | 1,585,100 | 32,114 | |
QUALCOMM, Inc. | 1,291,800 | 51,762 | |
TANDBERG Television ASA (a) | 55,000 | 912 | |
124,412 | |||
Computers & Peripherals - 3.8% | |||
Apple Computer, Inc. (a) | 1,218,300 | 69,589 | |
Dell, Inc. (a) | 192,400 | 4,696 | |
Hewlett-Packard Co. | 5,050,900 | 160,013 | |
Network Appliance, Inc. (a) | 713,860 | 25,199 | |
Seagate Technology | 222,900 | 5,046 | |
264,543 | |||
Electronic Equipment & Instruments - 0.9% | |||
Agilent Technologies, Inc. (a) | 1,800 | 57 | |
Amphenol Corp. Class A | 237,500 | 13,291 | |
Hon Hai Precision Industry Co. Ltd. (Foxconn) | 459,104 | 2,836 | |
Identix, Inc. (a) | 19,300 | 135 | |
Itron, Inc. (a) | 80,100 | 4,747 | |
KEMET Corp. (a) | 1,000,000 | 9,220 | |
LoJack Corp. (a) | 300,000 | 5,658 | |
Mettler-Toledo International, Inc. (a) | 72,800 | 4,409 | |
Common Stocks - continued | |||
Shares | Value (Note 1) (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Electronic Equipment & Instruments - continued | |||
Motech Industries, Inc. | 395,935 | $ 9,318 | |
National Instruments Corp. | 490,000 | 13,426 | |
Sunpower Corp. Class A | 6,200 | 174 | |
Viisage Technology, Inc. (a) | 7,300 | 111 | |
63,382 | |||
Internet Software & Services - 5.7% | |||
Akamai Technologies, Inc. (a) | 648,000 | 23,451 | |
aQuantive, Inc. (a) | 142,800 | 3,617 | |
Google, Inc. Class A (sub. vtg.) (a) | 674,400 | 282,799 | |
j2 Global Communications, Inc. (a) | 133,000 | 4,152 | |
LoopNet, Inc. (a) | 13,000 | 242 | |
NetEase.com, Inc. sponsored ADR (a)(d) | 223,000 | 4,980 | |
Tom Online, Inc. sponsored ADR (a)(d) | 52,500 | 1,013 | |
WebSideStory, Inc. (a)(d) | 446,056 | 5,442 | |
Yahoo!, Inc. (a) | 2,078,300 | 68,584 | |
394,280 | |||
IT Services - 2.1% | |||
Alliance Data Systems Corp. (a) | 298,900 | 17,581 | |
CheckFree Corp. (a)(d) | 387,200 | 19,190 | |
Cognizant Technology Solutions Corp. Class A (a) | 471,000 | 31,731 | |
First Data Corp. | 401,700 | 18,093 | |
Global Payments, Inc. | 54,300 | 2,636 | |
Infosys Technologies Ltd. sponsored ADR | 82,700 | 6,319 | |
Mastercard, Inc. Class A | 265,500 | 12,744 | |
MoneyGram International, Inc. | 29,200 | 991 | |
Paychex, Inc. | 86,900 | 3,387 | |
SRA International, Inc. Class A (a) | 201,561 | 5,368 | |
TALX Corp. | 412,500 | 9,021 | |
The BISYS Group, Inc. (a) | 46,500 | 637 | |
VeriFone Holdings, Inc. (a) | 583,800 | 17,794 | |
145,492 | |||
Office Electronics - 0.0% | |||
Canon, Inc. | 36,800 | 1,798 | |
Zebra Technologies Corp. Class A (a) | 19,600 | 670 | |
2,468 | |||
Semiconductors & Semiconductor Equipment - 4.4% | |||
Applied Materials, Inc. | 693,200 | 11,285 | |
ASML Holding NV (NY Shares) (a) | 764,800 | 15,464 | |
Broadcom Corp. Class A (a) | 676,600 | 20,332 | |
Common Stocks - continued | |||
Shares | Value (Note 1) (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Semiconductors & Semiconductor Equipment - continued | |||
FormFactor, Inc. (a) | 416,100 | $ 18,571 | |
Freescale Semiconductor, Inc. Class A (a) | 11,000 | 319 | |
Hittite Microwave Corp. | 93,100 | 3,366 | |
Lam Research Corp. (a) | 808,100 | 37,674 | |
Linear Technology Corp. | 78,900 | 2,642 | |
Marvell Technology Group Ltd. (a) | 1,900,600 | 84,254 | |
MathStar, Inc. | 10,000 | 59 | |
MEMC Electronic Materials, Inc. (a) | 326,400 | 12,240 | |
Microchip Technology, Inc. | 63,900 | 2,144 | |
Monolithic Power Systems, Inc. (a) | 86,184 | 1,020 | |
National Semiconductor Corp. | 633,800 | 15,116 | |
O2Micro International Ltd. sponsored ADR (a) | 3,000 | 23 | |
Renewable Energy Corp. AS | 191,300 | 2,736 | |
Saifun Semiconductors Ltd. | 50,000 | 1,433 | |
Samsung Electronics Co. Ltd. | 102,062 | 64,871 | |
SiRF Technology Holdings, Inc. (a) | 285,500 | 9,199 | |
Zoran Corp. (a) | 17,000 | 414 | |
303,162 | |||
Software - 1.2% | |||
Adobe Systems, Inc. (a) | 519,006 | 15,757 | |
Amdocs Ltd. (a) | 37,700 | 1,380 | |
Citrix Systems, Inc. (a) | 112,900 | 4,532 | |
ECtel Ltd. (a) | 5,649 | 25 | |
Informatica Corp. (a) | 18,000 | 237 | |
Intuit, Inc. (a) | 443,177 | 26,763 | |
JDA Software Group, Inc. (a) | 400,000 | 5,612 | |
NAVTEQ Corp. (a) | 179,530 | 8,021 | |
NDS Group PLC sponsored ADR (a) | 21,200 | 987 | |
Salesforce.com, Inc. (a) | 140,700 | 3,751 | |
SAP AG sponsored ADR | 246,800 | 12,962 | |
80,027 | |||
TOTAL INFORMATION TECHNOLOGY | 1,377,766 | ||
MATERIALS - 7.8% | |||
Chemicals - 1.2% | |||
Arkema sponsored ADR (a) | 9,210 | 356 | |
Bayer AG | 242,500 | 11,133 | |
Ecolab, Inc. | 698,800 | 28,357 | |
Lonza Group AG | 8,756 | 601 | |
Common Stocks - continued | |||
Shares | Value (Note 1) (000s) | ||
MATERIALS - continued | |||
Chemicals - continued | |||
Monsanto Co. | 142,300 | $ 11,980 | |
Praxair, Inc. | 490,200 | 26,471 | |
Wacker Chemie AG | 15,900 | 1,712 | |
80,610 | |||
Construction Materials - 0.0% | |||
Rinker Group Ltd. | 169,281 | 2,062 | |
Metals & Mining - 6.6% | |||
Agnico-Eagle Mines Ltd. | 231,700 | 7,682 | |
Alamos Gold, Inc. (a)(d) | 1,010,000 | 8,143 | |
Allegheny Technologies, Inc. | 56,400 | 3,905 | |
Anglo American PLC ADR | 1,392,900 | 28,471 | |
Aquarius Platinum Ltd. (Australia) | 598,000 | 8,777 | |
Bema Gold Corp. (a) | 2,517,400 | 12,561 | |
BHP Billiton Ltd. sponsored ADR | 1,199,500 | 51,662 | |
Companhia Vale do Rio Doce sponsored ADR | 102,000 | 2,452 | |
Eldorado Gold Corp. (a) | 608,400 | 2,954 | |
First Quantum Minerals Ltd. | 786,400 | 35,252 | |
Gabriel Resources Ltd. (a) | 725,700 | 1,879 | |
Gerdau SA sponsored ADR | 226,450 | 3,376 | |
Glamis Gold Ltd. (a) | 2,465,757 | 93,479 | |
Goldcorp, Inc. | 951,475 | 28,681 | |
IPSCO, Inc. | 129,000 | 12,350 | |
Ivanhoe Mines Ltd. (a) | 488,000 | 3,305 | |
Lihir Gold Ltd. (a) | 990,100 | 2,119 | |
Meridian Gold, Inc. (a) | 159,600 | 5,035 | |
New Gold, Inc. (a) | 466,300 | 4,152 | |
New Gold, Inc. warrants 2/23/08 (a) | 65,000 | 111 | |
Newmont Mining Corp. | 948,900 | 50,225 | |
Novagold Resources, Inc. (a) | 196,900 | 2,524 | |
Nucor Corp. | 383,200 | 20,789 | |
Oregon Steel Mills, Inc. (a) | 46,000 | 2,330 | |
POSCO sponsored ADR | 248,600 | 16,631 | |
Rio Tinto PLC (Reg.) | 853,200 | 44,731 | |
Steel Dynamics, Inc. | 82,400 | 5,417 | |
Teck Cominco Ltd. Class B (sub. vtg.) | 33,400 | 2,004 | |
US Gold Corp. (subscription receipt) (a)(g) | 112,300 | 1,128 | |
462,125 | |||
TOTAL MATERIALS | 544,797 | ||
Common Stocks - continued | |||
Shares | Value (Note 1) (000s) | ||
TELECOMMUNICATION SERVICES - 3.0% | |||
Diversified Telecommunication Services - 0.5% | |||
AT&T, Inc. | 509,100 | $ 14,199 | |
BT Group PLC sponsored ADR | 63,600 | 2,817 | |
Qwest Communications International, Inc. (a) | 1,801,900 | 14,577 | |
Telenor ASA | 190,800 | 2,307 | |
33,900 | |||
Wireless Telecommunication Services - 2.5% | |||
America Movil SA de CV Series L sponsored ADR | 3,156,400 | 104,982 | |
American Tower Corp. Class A (a) | 59,527 | 1,852 | |
China Mobile (Hong Kong) Ltd. sponsored ADR | 300,600 | 8,600 | |
Hutchison Telecommunications International Ltd. sponsored ADR (a)(d) | 147,300 | 3,522 | |
Leap Wireless International, Inc. (a) | 86,100 | 4,085 | |
NII Holdings, Inc. (a) | 951,647 | 53,654 | |
176,695 | |||
TOTAL TELECOMMUNICATION SERVICES | 210,595 | ||
UTILITIES - 0.6% | |||
Electric Utilities - 0.1% | |||
Exelon Corp. | 82,800 | 4,706 | |
FirstEnergy Corp. | 89,100 | 4,830 | |
9,536 | |||
Gas Utilities - 0.1% | |||
Southern Union Co. | 226,875 | 6,139 | |
Independent Power Producers & Energy Traders - 0.3% | |||
AES Corp. (a) | 719,600 | 13,277 | |
International Power PLC | 264,200 | 1,390 | |
TXU Corp. | 71,000 | 4,245 | |
18,912 | |||
Multi-Utilities - 0.1% | |||
National Grid PLC | 554,900 | 6,004 | |
Veolia Environnement | 26,900 | 1,391 | |
7,395 | |||
TOTAL UTILITIES | 41,982 | ||
TOTAL COMMON STOCKS (Cost $5,702,251) | 6,385,219 | ||
Convertible Preferred Stocks - 0.1% | |||
Shares | Value (Note 1) (000s) | ||
CONSUMER DISCRETIONARY - 0.1% | |||
Automobiles - 0.1% | |||
General Motors Corp. Series B, 5.25% | 310,900 | $ 5,693 | |
TOTAL CONVERTIBLE PREFERRED STOCKS (Cost $5,152) | 5,693 | ||
Money Market Funds - 9.8% | |||
Fidelity Cash Central Fund, 5.11% (b) | 598,552,930 | 598,553 | |
Fidelity Securities Lending Cash Central Fund, 5.14% (b)(c) | 81,361,352 | 81,361 | |
TOTAL MONEY MARKET FUNDS (Cost $679,914) | 679,914 | ||
TOTAL INVESTMENT PORTFOLIO - 101.9% (Cost $6,387,317) | 7,070,826 | ||
NET OTHER ASSETS - (1.9)% | (132,079) | ||
NET ASSETS - 100% | $ 6,938,747 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
(f) 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 $388,000 or 0.0% of net assets. |
(g) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $3,786,000 or 0.1% of net assets. |
Additional information on each holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
MannKind Corp. warrants 8/3/10 | 8/3/05 | $ 1 |
The Weinstein Co. III Holdings, LLC Class A-1 | 10/19/05 | $ 2,267 |
US Gold Corp. (subscription receipt) | 2/8/06 | $ 505 |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the fund from the affiliated Central funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 17,778 |
Fidelity Securities Lending Cash Central Fund | 482 |
Total | $ 18,260 |
Other Affiliated Issuers |
An affiliated company is a company in which the fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliates | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value, end of period |
Bakers Footwear Group, Inc. | $ 7,130 | $ 3,181 | $ - | $ - | $ 8,633 |
Preferred Bank, Los Angeles California | - | 19,483 | - | 39 | 20,372 |
TOTALS | $ 7,130 | $ 22,664 | $ - | $ 39 | $ 29,005 |
Other Information |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: |
United States of America | 72.7% |
Canada | 7.0% |
United Kingdom | 3.5% |
Bermuda | 2.3% |
Switzerland | 2.3% |
Netherlands Antilles | 1.8% |
Japan | 1.6% |
Mexico | 1.5% |
Korea (South) | 1.1% |
Others (individually less than 1%) | 6.2% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | June 30, 2006 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $79,918) - See accompanying schedule: Unaffiliated issuers (cost $5,678,277) | $ 6,361,907 | |
Affiliated Central Funds (cost $679,914) | 679,914 | |
Other affiliated issuers (cost $29,126) | 29,005 | |
Total Investments (cost $6,387,317) | $ 7,070,826 | |
Cash | 1 | |
Foreign currency held at value (cost $15,243) | 15,243 | |
Receivable for investments sold | 27,481 | |
Receivable for fund shares sold | 6,182 | |
Dividends receivable | 4,374 | |
Interest receivable | 3,346 | |
Prepaid expenses | 4 | |
Other receivables | 264 | |
Total assets | 7,127,721 | |
Liabilities | ||
Payable for investments purchased | $ 93,837 | |
Payable for fund shares redeemed | 5,812 | |
Accrued management fee | 3,184 | |
Distribution fees payable | 2,743 | |
Other affiliated payables | 1,428 | |
Other payables and accrued expenses | 609 | |
Collateral on securities loaned, at value | 81,361 | |
Total liabilities | 188,974 | |
Net Assets | $ 6,938,747 | |
Net Assets consist of: | ||
Paid in capital | $ 6,264,721 | |
Undistributed net investment income | 1,674 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (11,049) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 683,401 | |
Net Assets | $ 6,938,747 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | June 30, 2006 (Unaudited) | |
Calculation of Maximum Offering Price | $ 17.24 | |
Maximum offering price per share (100/94.25 of $17.24) | $ 18.29 | |
Class T: | $ 17.14 | |
Maximum offering price per share (100/96.50 of $17.14) | $ 17.76 | |
Class B: | $ 16.86 | |
Class C: | $ 16.89 | |
Institutional Class: | $ 17.40 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Amounts in thousands | Six months ended June 30, 2006 (Unaudited) | |
Investment Income | ||
Dividends (including $39 received from other affiliated issuers) | $ 24,406 | |
Interest | 92 | |
Income from affiliated Central Funds | 18,260 | |
Total income | 42,758 | |
Expenses | ||
Management fee | $ 17,029 | |
Transfer agent fees | 7,140 | |
Distribution fees | 15,241 | |
Accounting and security lending fees | 603 | |
Independent trustees' compensation | 11 | |
Custodian fees and expenses | 383 | |
Registration fees | 904 | |
Audit | 41 | |
Legal | 29 | |
Interest | 4 | |
Miscellaneous | 130 | |
Total expenses before reductions | 41,515 | |
Expense reductions | (465) | 41,050 |
Net investment income (loss) | 1,708 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of foreign taxes of $19) | (4,213) | |
Foreign currency transactions | 309 | |
Total net realized gain (loss) | (3,904) | |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of decrease in deferred foreign taxes of $11) | 132,697 | |
Assets and liabilities in foreign currencies | (108) | |
Total change in net unrealized appreciation (depreciation) | 132,589 | |
Net gain (loss) | 128,685 | |
Net increase (decrease) in net assets resulting from operations | $ 130,393 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
Amounts in thousands | Six months ended | Year ended |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $ 1,708 | $ (3,298) |
Net realized gain (loss) | (3,904) | 15,438 |
Change in net unrealized appreciation (depreciation) | 132,589 | 426,567 |
Net increase (decrease) in net assets resulting | 130,393 | 438,707 |
Distributions to shareholders from net realized gain | (14,806) | - |
Share transactions - net increase (decrease) | 2,568,102 | 2,787,029 |
Total increase (decrease) in net assets | 2,683,689 | 3,225,736 |
Net Assets | ||
Beginning of period | 4,255,058 | 1,029,322 |
End of period (including undistributed net investment income of $1,674 and accumulated net investment loss of $34, respectively) | $ 6,938,747 | $ 4,255,058 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
Six month ended | Years ended December 31, | |||
(Unaudited) | 2005 | 2004 | 2003 F | |
Selected Per-Share Data | ||||
Net asset value, beginning of period | $ 16.65 | $ 13.99 | $ 11.79 | $ 10.00 |
Income from Investment Operations | ||||
Net investment income (loss) E | .02 | .02 | (.03) | (.04) |
Net realized and unrealized gain (loss) | .62 | 2.64 | 2.24 | 1.87 |
Total from investment operations | .64 | 2.66 | 2.21 | 1.83 |
Distributions from net investment income | - | - | (.01) | (.03) |
Distributions from net realized gain | (.05) | - | - | (.01) |
Total distributions | (.05) | - | (.01) | (.04) |
Net asset value, end of period | $ 17.24 | $ 16.65 | $ 13.99 | $ 11.79 |
Total Return B, C, D | 3.84% | 19.01% | 18.76% | 18.23% |
Ratios to Average Net Assets G | ||||
Expenses before reductions | 1.14% A | 1.17% | 1.22% | 1.39% A |
Expenses net of fee waivers, if any | 1.14% A | 1.17% | 1.22% | 1.39% A |
Expenses net of all reductions | 1.13% A | 1.13% | 1.17% | 1.28% A |
Net investment income (loss) | .29% A | .13% | (.26)% | (.81)% A |
Supplemental Data | ||||
Net assets, end of period (in millions) | $ 1,683 | $ 1,019 | $ 230 | $ 37 |
Portfolio turnover rate | 82% A | 65% | 87% | 77% A |
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F For the period July 31, 2003 (commencement of operations) to December 31, 2003.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
Six months ended | Years ended December 31, | |||
(Unaudited) | 2005 | 2004 | 2003 F | |
Selected Per-Share Data | ||||
Net asset value, beginning of period | $ 16.57 | $ 13.96 | $ 11.78 | $ 10.00 |
Income from Investment Operations | ||||
Net investment income (loss) E | .01 | (.01) | (.06) | (.05) |
Net realized and unrealized gain (loss) | .61 | 2.62 | 2.25 | 1.86 |
Total from investment operations | .62 | 2.61 | 2.19 | 1.81 |
Distributions from net investment income | - | - | (.01) | (.02) |
Distributions from net realized gain | (.05) | - | - | (.01) |
Total distributions | (.05) | - | (.01) | (.03) |
Net asset value, end of period | $ 17.14 | $ 16.57 | $ 13.96 | $ 11.78 |
Total Return B, C, D | 3.74% | 18.70% | 18.60% | 18.08% |
Ratios to Average Net Assets G | ||||
Expenses before reductions | 1.34% A | 1.38% | 1.43% | 1.62% A |
Expenses net of fee waivers, if any | 1.34% A | 1.38% | 1.43% | 1.62% A |
Expenses net of all reductions | 1.32% A | 1.34% | 1.39% | 1.51% A |
Net investment income (loss) | .09% A | (.08)% | (.48)% | (1.04)% A |
Supplemental Data | ||||
Net assets, end of period (in millions) | $ 2,014 | $ 1,393 | $ 325 | $ 62 |
Portfolio turnover rate | 82% A | 65% | 87% | 77% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F For the period July 31, 2003 (commencement of operations) to December 31, 2003.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
Six months ended | Years ended December 31, | |||
(Unaudited) | 2005 | 2004 | 2003 F | |
Selected Per-Share Data | ||||
Net asset value, beginning of period | $ 16.35 | $ 13.85 | $ 11.76 | $ 10.00 |
Income from Investment Operations | ||||
Net investment income (loss) E | (.04) | (.10) | (.13) | (.07) |
Net realized and unrealized gain (loss) | .60 | 2.60 | 2.23 | 1.85 |
Total from investment operations | .56 | 2.50 | 2.10 | 1.78 |
Distributions from net investment income | - | - | (.01) | (.01) |
Distributions from net realized gain | (.05) | - | - | (.01) |
Total distributions | (.05) | - | (.01) | (.02) |
Net asset value, end of period | $ 16.86 | $ 16.35 | $ 13.85 | $ 11.76 |
Total Return B, C, D | 3.42% | 18.05% | 17.87% | 17.75% |
Ratios to Average Net Assets G | ||||
Expenses before reductions | 1.95% A | 1.98% | 2.02% | 2.19% A |
Expenses net of fee waivers, if any | 1.95% A | 1.98% | 2.02% | 2.19% A |
Expenses net of all reductions | 1.93% A | 1.94% | 1.97% | 2.08% A |
Net investment income (loss) | (.52)% A | (.68)% | (1.06)% | (1.61)% A |
Supplemental Data | ||||
Net assets, end of period (in millions) | $ 449 | $ 339 | $ 109 | $ 27 |
Portfolio turnover rate | 82% A | 65% | 87% | 77% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F For the period July 31, 2003 (commencement of operations) to December 31, 2003.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
Six months ended | Years ended December 31, | |||
(Unaudited) | 2005 | 2004 | 2003 F | |
Selected Per-Share Data | ||||
Net asset value, beginning of period | $ 16.37 | $ 13.86 | $ 11.76 | $ 10.00 |
Income from Investment Operations | ||||
Net investment income (loss) E | (.04) | (.09) | (.12) | (.07) |
Net realized and unrealized gain (loss) | .61 | 2.60 | 2.23 | 1.85 |
Total from investment operations | .57 | 2.51 | 2.11 | 1.78 |
Distributions from net investment income | - | - | (.01) | (.01) |
Distributions from net realized gain | (.05) | - | - | (.01) |
Total distributions | (.05) | - | (.01) | (.02) |
Net asset value, end of period | $ 16.89 | $ 16.37 | $ 13.86 | $ 11.76 |
Total Return B, C, D | 3.48% | 18.11% | 17.95% | 17.77% |
Ratios to Average Net Assets G | ||||
Expenses before reductions | 1.86% A | 1.89% | 1.94% | 2.14% A |
Expenses net of fee waivers, if any | 1.86% A | 1.89% | 1.94% | 2.14% A |
Expenses net of all reductions | 1.85% A | 1.85% | 1.89% | 2.03% A |
Net investment income (loss) | (.43)% A | (.59)% | (.98)% | (1.55)% A |
Supplemental Data | ||||
Net assets, end of period (in millions) | $ 1,514 | $ 1,006 | $ 246 | $ 49 |
Portfolio turnover rate | 82% A | 65% | 87% | 77% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F For the period July 31, 2003 (commencement of operations) to December 31, 2003.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
Six months ended | Years ended December 31, | |||
(Unaudited) | 2005 | 2004 | 2003 E | |
Selected Per-Share Data | ||||
Net asset value, beginning of period | $ 16.78 | $ 14.05 | $ 11.79 | $ 10.00 |
Income from Investment Operations | ||||
Net investment income (loss) D | .05 | .07 | .01 | (.02) |
Net realized and unrealized gain (loss) | .62 | 2.66 | 2.26 | 1.86 |
Total from investment operations | .67 | 2.73 | 2.27 | 1.84 |
Distributions from net investment income | - | - | (.01) | (.04) |
Distributions from net realized gain | (.05) | - | - | (.01) |
Total distributions | (.05) | - | (.01) | (.05) |
Net asset value, end of period | $ 17.40 | $ 16.78 | $ 14.05 | $ 11.79 |
Total Return B, C | 3.99% | 19.43% | 19.27% | 18.31% |
Ratios to Average Net Assets F | ||||
Expenses before reductions | .85% A | .84% | .86% | 1.07% A |
Expenses net of fee waivers, if any | .85% A | .84% | .86% | 1.07% A |
Expenses net of all reductions | .84% A | .79% | .82% | .96% A |
Net investment income (loss) | .58% A | .47% | .10% | (.49)% A |
Supplemental Data | ||||
Net assets, end of period (in millions) | $ 1,279 | $ 498 | $ 120 | $ 23 |
Portfolio turnover rate | 82% A | 65% | 87% | 77% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E For the period July 31, 2003 (commencement of operations) to December 31, 2003.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended June 30, 2006 (Unaudited)
(Amounts in thousands except ratios)
1. Significant Accounting Policies.
Fidelity Advisor New Insights Fund (the Fund) is a fund of Fidelity Contrafund (the trust) and is authorized to issue an unlimited number of shares. Effective the close of business on April 28, 2006, the Fund was closed to most new accounts. 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 Fund offers Class A, Class T, Class B, Class C, and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.
The Fund may invest in affiliated money market central funds (Money Market Central Funds), which are open-end investment companies available to investment companies and other accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued and net asset value (NAV) per share is calculated (NAV calculation) as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Investments in open-end mutual funds are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
1. Significant Accounting Policies - continued
Security Valuation - continued
When current market prices or quotations are not readily available or do not accurately reflect fair value, valuations may be determined in accordance with procedures adopted by the Board of Trustees. For example, when developments occur between the close of a market and the close of the NYSE that may materially affect the value of some or all of the securities, or when trading in a security is halted, those securities may be fair valued. Factors used in the determination of fair value may include monitoring news to identify significant market or security specific events such as changes in the value of U.S. securities markets, reviewing developments in foreign markets and evaluating the performance of ADRs, futures contracts and exchange-traded funds. Because the Fund's utilization of fair value pricing depends on market activity, the frequency with which fair value pricing is used can not be predicted and may be utilized to a significant extent. The value of securities used for NAV calculation under fair value pricing may differ from published prices for the same securities.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income is accrued as
Semiannual Report
1. Significant Accounting Policies - continued
Investment Transactions and Income - continued
earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. 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 among each Fund in the trust.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required in the accompanying financial statements. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), market discount, net operating losses, capital loss carryforwards, and losses deferred due to wash sales.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 821,135 |
Unrealized depreciation | (147,182) |
Net unrealized appreciation (depreciation) | $ 673,953 |
Cost for federal income tax purposes | $ 6,396,873 |
New Accounting Pronouncement. In July 2006, Financial Accounting Standards Board Interpretation No. 48, Accounting for Uncertainty in Income Taxes - an interpretation of FASB Statement 109 (FIN 48) was issued and is effective for fiscal years beginning after December 15, 2006. FIN 48 sets forth a threshold for financial statement recognition, measurement and disclosure of a tax position taken or expected to be taken on a tax return. Management is currently evaluating the impact, if any, the adoption of FIN 48 will have on the Fund's net assets and results of operations.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
2. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
3. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and U.S. government securities, aggregated $4,589,558 and $2,152,598, respectively.
4. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and a group fee rate that averaged ..27% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .57% of the Fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for
Semiannual Report
4. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan - continued
selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:
Distribution | Service | Paid to | Retained | |
Class A | 0% | .25% | $ 1,821 | $ 82 |
Class T | .25% | .25% | 4,542 | 340 |
Class B | .75% | .25% | 2,091 | 1,571 |
Class C | .75% | .25% | 6,787 | 4,175 |
$ 15,241 | $ 6,168 |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, 1.00% to .50% for certain purchases of Class A shares (.25% prior to February 24, 2006) and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
Retained | |
Class A | $ 1,885 |
Class T | 440 |
Class B* | 282 |
Class C* | 153 |
$ 2,760 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
4. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
shareholder reports, except proxy statements. For the period the total transfer agent fees paid by each class to FIIOC, were as follows:
Amount | % of | |
Class A | $ 1,900 | .26* |
Class T | 1,898 | .21* |
Class B | 665 | .32* |
Class C | 1,595 | .23* |
Institutional Class | 1,082 | .22* |
$ 7,140 |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Affiliated Central Funds. The Fund may invest in Money Market Central Funds which seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
The Money Market Central Funds do not pay a management fee.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $14 for the period.
5. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $4.2 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro rata portion of the line of credit, which amounts to $6 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Semiannual Report
6. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Net income from lending portfolio securities during the period amounted to $482.
7. Bank Borrowings.
The Fund is permitted to have bank borrowings for temporary or emergency purposes to fund shareholder redemptions. The Fund has established borrowing arrangements with certain banks. The interest rate on the borrowings is the bank's base rate, as revised from time to time. The average daily loan balance during the period for which loans were outstanding amounted to $27,763. The weighted average interest rate was 5.31%. At period end, there were no bank borrowings outstanding.
8. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $452 for the period. In addition, through arrangements with the Fund's custodian and each class' transfer agent, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
8. Expense Reductions - continued
the period, these credits reduced the Fund's custody expenses by $2. During the period, credits reduced each class' transfer agent expense as noted in the table below.
Transfer Agent | |
Class A | $ 3 |
Class T | 5 |
Institutional Class | 3 |
$ 11 |
9. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net realized gain | ||
Class A | $ 3,604 | $ - |
Class T | 4,694 | - |
Class B | 1,130 | - |
Class C | 3,506 | - |
Institutional Class | 1,872 | - |
Total | $ 14,806 | $ - |
Semiannual Report
11. Share Transactions.
Transactions for each class of shares were as follows:
Shares | Dollars | |||
Six months ended | Year ended | Six months ended | Year ended | |
Class A | ||||
Shares sold | 43,726 | 48,615 | $ 758,679 | $ 747,881 |
Reinvestment of distributions | 186 | - | 3,201 | - |
Shares redeemed | (7,489) | (3,868) | (128,194) | (58,730) |
Net increase (decrease) | 36,423 | 44,747 | $ 633,686 | $ 689,151 |
Class T | ||||
Shares sold | 41,187 | 65,661 | $ 711,835 | $ 990,175 |
Reinvestment of distributions | 260 | - | 4,446 | - |
Shares redeemed | (8,035) | (4,899) | (137,559) | (73,812) |
Net increase (decrease) | 33,412 | 60,762 | $ 578,722 | $ 916,363 |
Class B | ||||
Shares sold | 8,061 | 14,492 | $ 137,365 | $ 215,896 |
Reinvestment of distributions | 56 | - | 941 | - |
Shares redeemed | (2,254) | (1,584) | (38,052) | (23,549) |
Net increase (decrease) | 5,863 | 12,908 | $ 100,254 | $ 192,347 |
Class C | ||||
Shares sold | 32,227 | 46,847 | $ 549,551 | $ 703,988 |
Reinvestment of distributions | 154 | - | 2,604 | - |
Shares redeemed | (4,215) | (3,110) | (70,486) | (46,058) |
Net increase (decrease) | 28,166 | 43,737 | $ 481,669 | $ 657,930 |
Institutional Class | ||||
Shares sold | 50,637 | 22,374 | $ 891,242 | $ 349,673 |
Reinvestment of distributions | 69 | - | 1,201 | - |
Shares redeemed | (6,852) | (1,206) | (118,672) | (18,435) |
Net increase (decrease) | 43,854 | 21,168 | $ 773,771 | $ 331,238 |
Semiannual Report
Board Approval of Investment Advisory Contracts and Management Fees
Advisor New Insights Fund
On January 19, 2006, the Board of Trustees, including the Independent Trustees (together, the Board), voted to approve a general research services agreement (the Agreement) between FMR, FMR Co., Inc. (FMRC), Fidelity Investments Money Management, Inc. (FIMM), and Fidelity Research & Analysis Company (FRAC) (together, the Investment Advisers) for the fund, effective January 20, 2006, pursuant to which FRAC may provide general research and investment advisory support services to FMRC and FIMM. The Board considered that it has approved previously various sub-advisory agreements for the fund with affiliates of FMR that allow FMR to obtain research, non-discretionary advice, or discretionary portfolio management at no additional expense to the fund. The Board, assisted by the advice of fund counsel and independent Trustees' counsel, considered a broad range of information and determined that it would be beneficial for the fund to access the research and investment advisory support services supplied by FRAC at no additional expense to the fund.
The Board reached this determination in part because the new arrangement will involve no changes in (i) the contractual terms of and fees payable under the fund's management contract or sub-advisory agreements; (ii) the investment process or strategies employed in the management of the fund's assets; (iii) the nature or level of services provided under the fund's management contract or sub-advisory agreements; (iv) the day-to-day management of the fund or the persons primarily responsible for such management; or (v) the ultimate control or beneficial ownership of FMR, FMRC, or FIMM. The Board also considered that the establishment of the Agreement would not necessitate prior shareholder approval of the Agreement or result in an assignment and termination of the fund's management contract or sub-advisory agreements under the Investment Company Act of 1940.
Because the Board was approving an arrangement with FRAC under which the fund will not bear any additional management fees or expenses and under which the fund's portfolio manager would not change, it did not consider the fund's investment performance, competitiveness of management fee and total expenses, costs of services and profitability, or economies of scale to be significant factors in its decision.
In connection with its future renewal of the fund's management contract and sub-advisory agreements, the Board will consider: (i) the nature, extent, and quality of services provided to the fund, including shareholder and administrative services and investment performance; (ii) the competitiveness of the fund's management fee and total expenses; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders; and (iv) whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies.
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Based on its evaluation of all of the conclusions noted above, and after considering all material factors, the Board ultimately concluded that the fund's Agreement is fair and reasonable, and that the fund's Agreement should be approved.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Adviser
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Research & Analysis Company
(formerly Fidelity Management &
Research (Far East) Inc.)
Fidelity Investments Japan Limited
Fidelity International Investment Advisors
Fidelity International Investment
Advisors (U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Brown Brothers Harriman & Co.
Boston, MA
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
ANIF-USAN-0806
1.803541.102
(Fidelity Investment logo)(registered trademark)
Fidelity® Advisor
New Insights
Fund - Institutional Class
Semiannual Report
June 30, 2006
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | Ned Johnson's message to shareholders. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, | |
Notes | Notes to the financial statements. | |
Board Approval of Investment Advisory Contracts and Management Fees |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR Corp. or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent quarterly holdings report, semiannual report, or annual report on Fidelity's web site at http://www.advisor.fidelity.com.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Annual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
Although many securities markets made gains in early 2006, inflation concerns led to mixed results through the year's mid-point. Financial markets are always unpredictable. There are, however, a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (January 1, 2006 to June 30, 2006).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Semiannual Report
Investments - continued
Investments
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Beginning | Ending | Expenses Paid | |
Class A | |||
Actual | $ 1,000.00 | $ 1,038.40 | $ 5.76 |
HypotheticalA | $ 1,000.00 | $ 1,019.14 | $ 5.71 |
Class T | |||
Actual | $ 1,000.00 | $ 1,037.40 | $ 6.77 |
HypotheticalA | $ 1,000.00 | $ 1,018.15 | $ 6.71 |
Class B | |||
Actual | $ 1,000.00 | $ 1,034.20 | $ 9.84 |
HypotheticalA | $ 1,000.00 | $ 1,015.12 | $ 9.74 |
Class C | |||
Actual | $ 1,000.00 | $ 1,034.80 | $ 9.38 |
HypotheticalA | $ 1,000.00 | $ 1,015.57 | $ 9.30 |
Institutional Class | |||
Actual | $ 1,000.00 | $ 1,039.90 | $ 4.30 |
HypotheticalA | $ 1,000.00 | $ 1,020.58 | $ 4.26 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Annualized | |
Class A | 1.14% |
Class T | 1.34% |
Class B | 1.95% |
Class C | 1.86% |
Institutional Class | .85% |
Semiannual Report
Investment Changes
Top Ten Stocks as of June 30, 2006 | ||
% of fund's | % of fund's net assets | |
Google, Inc. Class A (sub. vtg.) | 4.1 | 4.3 |
Berkshire Hathaway, Inc. Class A | 2.5 | 1.8 |
Genentech, Inc. | 2.4 | 2.3 |
Hewlett-Packard Co. | 2.3 | 2.0 |
EnCana Corp. | 2.3 | 1.8 |
Schlumberger Ltd. (NY Shares) | 1.8 | 1.0 |
Wells Fargo & Co. | 1.6 | 1.3 |
America Movil SA de CV Series L sponsored ADR | 1.5 | 1.5 |
Roche Holding AG (participation certificate) | 1.5 | 1.3 |
Valero Energy Corp. | 1.4 | 1.7 |
21.4 | ||
Top Five Market Sectors as of June 30, 2006 | ||
% of fund's | % of fund's net assets | |
Information Technology | 19.9 | 25.4 |
Financials | 17.7 | 15.7 |
Energy | 11.3 | 9.0 |
Health Care | 9.1 | 14.5 |
Industrials | 8.9 | 5.2 |
Asset Allocation (% of fund's net assets) | |||||||
As of June 30, 2006 * | As of December 31, 2005 ** | ||||||
![]() | Stocks 92.0% | ![]() | Stocks 89.9% | ||||
![]() | Bonds 0.0% | ![]() | Bonds 0.1% | ||||
![]() | Convertible | ![]() | Convertible | ||||
![]() | Short-Term | ![]() | Short-Term | ||||
* Foreign investments | 27.3% | ** Foreign investments | 24.6% |
Semiannual Report
Investments June 30, 2006 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 92.0% | |||
Shares | Value (Note 1) (000s) | ||
CONSUMER DISCRETIONARY - 8.3% | |||
Auto Components - 0.0% | |||
Johnson Controls, Inc. | 4,400 | $ 362 | |
LKQ Corp. (a) | 8,100 | 154 | |
516 | |||
Automobiles - 0.8% | |||
General Motors Corp. (d) | 281,200 | 8,377 | |
Harley-Davidson, Inc. | 45,100 | 2,476 | |
Honda Motor Co. Ltd. | 188,000 | 5,982 | |
Hyundai Motor Co. | 6,700 | 569 | |
Renault SA | 19,100 | 2,052 | |
Toyota Motor Corp. | 727,700 | 38,055 | |
57,511 | |||
Distributors - 0.0% | |||
Li & Fung Ltd. | 849,200 | 1,717 | |
Diversified Consumer Services - 0.0% | |||
Laureate Education, Inc. (a) | 13,300 | 567 | |
Hotels, Restaurants & Leisure - 1.9% | |||
Ambassadors Group, Inc. | 14,538 | 420 | |
Aristocrat Leisure Ltd. (d) | 1,040,000 | 9,955 | |
Chipotle Mexican Grill, Inc. Class A | 114,000 | 6,948 | |
International Game Technology | 61,000 | 2,314 | |
Las Vegas Sands Corp. (a) | 327,600 | 25,507 | |
Panera Bread Co. Class A (a) | 376,364 | 25,307 | |
Penn National Gaming, Inc. (a) | 209,500 | 8,124 | |
Ruth's Chris Steak House, Inc. | 77,900 | 1,591 | |
Starbucks Corp. (a) | 689,300 | 26,028 | |
Station Casinos, Inc. | 183,900 | 12,520 | |
Tim Hortons, Inc. (d) | 128,300 | 3,304 | |
Wynn Resorts Ltd. (a) | 109,100 | 7,997 | |
130,015 | |||
Household Durables - 1.0% | |||
Fourlis Holdings SA | 500,000 | 7,100 | |
Garmin Ltd. | 143,000 | 15,078 | |
KB Home | 14,900 | 683 | |
Matsushita Electric Industrial Co. Ltd. | 474,100 | 10,018 | |
Sharp Corp. | 252,000 | 3,982 | |
Sony Corp. | 614,300 | 27,054 | |
Common Stocks - continued | |||
Shares | Value (Note 1) (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Household Durables - continued | |||
Sony Corp. sponsored ADR | 10,600 | $ 467 | |
Whirlpool Corp. | 7,700 | 636 | |
65,018 | |||
Internet & Catalog Retail - 0.1% | |||
Coldwater Creek, Inc. (a) | 41,450 | 1,109 | |
Expedia, Inc. (a) | 149,200 | 2,234 | |
Liberty Media Holding Corp. - Interactive Series A (a) | 159,900 | 2,760 | |
Submarino SA | 50,000 | 1,004 | |
VistaPrint Ltd. | 58,600 | 1,567 | |
8,674 | |||
Leisure Equipment & Products - 0.0% | |||
Aruze Corp. | 28,000 | 609 | |
Media - 1.6% | |||
CBS Corp. Class B | 19,500 | 527 | |
Focus Media Holding Ltd. ADR | 68,100 | 4,437 | |
Live Nation, Inc. (a) | 56,800 | 1,156 | |
McGraw-Hill Companies, Inc. | 77,900 | 3,913 | |
News Corp. Class B | 572,700 | 11,557 | |
NTL, Inc. | 43,531 | 1,084 | |
Seek Ltd. | 1,000,000 | 3,976 | |
Sirius Satellite Radio, Inc. (a)(d) | 751,600 | 3,570 | |
The Walt Disney Co. | 2,493,500 | 74,805 | |
The Weinstein Co. III Holdings, LLC Class A-1 (a)(g) | 2,267 | 2,267 | |
Thomson Corp. | 52,400 | 2,019 | |
109,311 | |||
Multiline Retail - 0.6% | |||
JCPenney Co., Inc. | 182,400 | 12,314 | |
Marks & Spencer Group PLC | 2,349,100 | 25,504 | |
Nordstrom, Inc. | 92,700 | 3,384 | |
41,202 | |||
Specialty Retail - 2.1% | |||
AnnTaylor Stores Corp. (a) | 152,000 | 6,594 | |
Bakers Footwear Group, Inc. (a)(d)(e) | 620,600 | 8,633 | |
Best Buy Co., Inc. | 453,650 | 24,878 | |
Casual Male Retail Group, Inc. (a) | 297,700 | 2,992 | |
Circuit City Stores, Inc. | 713,405 | 19,419 | |
Inditex SA | 49,700 | 2,097 | |
J. Crew Group, Inc. | 230,100 | 6,316 | |
Common Stocks - continued | |||
Shares | Value (Note 1) (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Specialty Retail - continued | |||
Limited Brands, Inc. | 210,400 | $ 5,384 | |
O'Reilly Automotive, Inc. (a) | 16,900 | 527 | |
Office Depot, Inc. (a) | 804,800 | 30,582 | |
Payless ShoeSource, Inc. (a) | 71,400 | 1,940 | |
Staples, Inc. | 509,300 | 12,386 | |
The Children's Place Retail Stores, Inc. (a) | 11,400 | 685 | |
TJX Companies, Inc. | 734,400 | 16,788 | |
Tractor Supply Co. (a) | 14,400 | 796 | |
Wet Seal, Inc. Class A (a) | 193,200 | 943 | |
Zumiez, Inc. (a) | 13,000 | 488 | |
141,448 | |||
Textiles, Apparel & Luxury Goods - 0.2% | |||
Burberry Group PLC | 91,700 | 729 | |
Coach, Inc. (a) | 102,000 | 3,050 | |
Luxottica Group Spa sponsored ADR | 23,400 | 635 | |
Phillips-Van Heusen Corp. | 24,800 | 946 | |
Puma AG | 9,000 | 3,499 | |
Under Armour, Inc. Class A (sub. vtg.) | 65,500 | 2,792 | |
VF Corp. | 65,400 | 4,442 | |
16,093 | |||
TOTAL CONSUMER DISCRETIONARY | 572,681 | ||
CONSUMER STAPLES - 5.4% | |||
Beverages - 2.4% | |||
Anheuser-Busch Companies, Inc. | 19,900 | 907 | |
Diageo PLC sponsored ADR | 471,100 | 31,823 | |
Hansen Natural Corp. (a) | 20,100 | 3,826 | |
InBev SA | 20,000 | 981 | |
Jones Soda Co. (a)(d) | 310,890 | 2,798 | |
PepsiCo, Inc. | 1,309,300 | 78,610 | |
The Coca-Cola Co. | 1,040,400 | 44,758 | |
163,703 | |||
Food & Staples Retailing - 0.4% | |||
Costco Wholesale Corp. | 49,400 | 2,822 | |
Safeway, Inc. | 27,800 | 723 | |
Tesco PLC | 1,296,585 | 8,010 | |
Common Stocks - continued | |||
Shares | Value (Note 1) (000s) | ||
CONSUMER STAPLES - continued | |||
Food & Staples Retailing - continued | |||
Wal-Mart de Mexico SA de CV Series V | 787,478 | $ 2,164 | |
Wal-Mart Stores, Inc. | 299,500 | 14,427 | |
28,146 | |||
Food Products - 0.8% | |||
Campbell Soup Co. | 37,600 | 1,395 | |
General Mills, Inc. | 39,100 | 2,020 | |
Groupe Danone | 118,500 | 15,060 | |
Hershey Co. | 189,100 | 10,414 | |
Kellogg Co. | 72,600 | 3,516 | |
Nestle SA (Reg.) | 52,546 | 16,505 | |
Sara Lee Corp. | 164,500 | 2,635 | |
TreeHouse Foods, Inc. (a) | 183,500 | 4,384 | |
Wm. Wrigley Jr. Co. | 80,050 | 3,631 | |
59,560 | |||
Household Products - 1.6% | |||
Colgate-Palmolive Co. | 548,500 | 32,855 | |
Procter & Gamble Co. | 1,387,067 | 77,121 | |
109,976 | |||
Personal Products - 0.2% | |||
Estee Lauder Companies, Inc. Class A | 90,300 | 3,492 | |
Herbalife Ltd. (a) | 214,800 | 8,571 | |
12,063 | |||
TOTAL CONSUMER STAPLES | 373,448 | ||
ENERGY - 11.3% | |||
Energy Equipment & Services - 3.0% | |||
Baker Hughes, Inc. | 488,900 | 40,016 | |
BJ Services Co. | 51,600 | 1,923 | |
Halliburton Co. | 200,700 | 14,894 | |
Hydril Co. (a) | 190,000 | 14,919 | |
Schlumberger Ltd. (NY Shares) | 1,870,800 | 121,808 | |
Smith International, Inc. | 62,644 | 2,786 | |
Superior Well Services, Inc. | 310,000 | 7,719 | |
204,065 | |||
Oil, Gas & Consumable Fuels - 8.3% | |||
Addax Petroleum Corp. | 116,200 | 3,107 | |
BG Group PLC sponsored ADR | 174,500 | 11,671 | |
Common Stocks - continued | |||
Shares | Value (Note 1) (000s) | ||
ENERGY - continued | |||
Oil, Gas & Consumable Fuels - continued | |||
BP PLC sponsored ADR | 273,600 | $ 19,045 | |
Cameco Corp. | 66,300 | 2,641 | |
Canadian Natural Resources Ltd. | 111,600 | 6,170 | |
Canadian Oil Sands Trust unit | 858,300 | 27,680 | |
CONSOL Energy, Inc. | 377,900 | 17,655 | |
EnCana Corp. | 2,974,800 | 156,641 | |
EOG Resources, Inc. | 242,200 | 16,794 | |
Exxon Mobil Corp. | 838,300 | 51,430 | |
Foundation Coal Holdings, Inc. | 32,100 | 1,506 | |
Goodrich Petroleum Corp. (a) | 23,730 | 674 | |
Hess Corp. | 27,900 | 1,475 | |
Highpine Oil & Gas Ltd. (a)(f) | 23,300 | 388 | |
Hugoton Royalty Trust | 2 | 0 | |
Husky Energy, Inc. | 21,300 | 1,337 | |
Imperial Oil Ltd. | 21,000 | 767 | |
Kerr-McGee Corp. | 51,800 | 3,592 | |
Murphy Oil Corp. | 347,800 | 19,428 | |
Noble Energy, Inc. | 196,500 | 9,208 | |
Occidental Petroleum Corp. | 147,100 | 15,085 | |
Peabody Energy Corp. | 309,400 | 17,249 | |
PetroChina Co. Ltd. sponsored ADR (d) | 324,800 | 35,069 | |
Petroleo Brasileiro SA Petrobras sponsored ADR | 105,500 | 9,422 | |
Sasol Ltd. sponsored ADR | 33,600 | 1,298 | |
Suncor Energy, Inc. | 152,300 | 12,325 | |
Talisman Energy, Inc. | 501,300 | 8,748 | |
Total SA sponsored ADR | 89,600 | 5,871 | |
Ultra Petroleum Corp. (a) | 191,000 | 11,321 | |
Valero Energy Corp. | 1,463,234 | 97,334 | |
Western Oil Sands, Inc. Class A (a) | 144,500 | 4,005 | |
XTO Energy, Inc. | 199,000 | 8,810 | |
577,746 | |||
TOTAL ENERGY | 781,811 | ||
FINANCIALS - 17.7% | |||
Capital Markets - 0.6% | |||
Charles Schwab Corp. | 761,000 | 12,161 | |
Goldman Sachs Group, Inc. | 151,900 | 22,850 | |
Lehman Brothers Holdings, Inc. | 32,900 | 2,143 | |
Common Stocks - continued | |||
Shares | Value (Note 1) (000s) | ||
FINANCIALS - continued | |||
Capital Markets - continued | |||
Mellon Financial Corp. | 208,800 | $ 7,189 | |
SEI Investments Co. | 5,800 | 284 | |
44,627 | |||
Commercial Banks - 4.2% | |||
Allied Irish Banks PLC | 616,500 | 14,907 | |
Anglo Irish Bank Corp. PLC | 1,753,900 | 27,372 | |
Banco Itau Holding Financeira SA sponsored ADR (non-vtg.) | 65,300 | 1,904 | |
Bank of Ireland | 230,400 | 4,139 | |
Bank of the Ozarks, Inc. | 39,100 | 1,302 | |
Center Financial Corp., California | 50,000 | 1,182 | |
Commerce Bancorp, Inc., New Jersey | 161,900 | 5,775 | |
Compass Bancshares, Inc. | 112,800 | 6,272 | |
Home Bancshares, Inc. | 8,100 | 184 | |
HSBC Holdings PLC sponsored ADR | 113,200 | 10,001 | |
M&T Bank Corp. | 340,100 | 40,105 | |
Marshall & Ilsley Corp. | 28,000 | 1,281 | |
National Australia Bank Ltd. | 131,500 | 3,436 | |
PNC Financial Services Group, Inc. | 32,700 | 2,295 | |
Preferred Bank, Los Angeles California (e) | 380,004 | 20,372 | |
PrivateBancorp, Inc. | 101,000 | 4,182 | |
Royal Bank of Scotland Group PLC | 438,000 | 14,404 | |
Shinhan Financial Group Co. Ltd. | 48,530 | 2,276 | |
Standard Chartered PLC (United Kingdom) | 163,800 | 3,999 | |
SunTrust Banks, Inc. | 52,900 | 4,034 | |
Uniao de Bancos Brasileiros SA (Unibanco) GDR | 87,700 | 5,822 | |
Wells Fargo & Co. | 1,684,800 | 113,016 | |
Zions Bancorp | 77,100 | 6,009 | |
294,269 | |||
Consumer Finance - 1.8% | |||
American Express Co. | 1,255,200 | 66,802 | |
SLM Corp. | 1,049,100 | 55,518 | |
122,320 | |||
Diversified Financial Services - 1.7% | |||
Bank of America Corp. | 1,024,100 | 49,259 | |
Citigroup, Inc. | 603,300 | 29,103 | |
JPMorgan Chase & Co. | 667,100 | 28,018 | |
Moody's Corp. | 183,600 | 9,999 | |
116,379 | |||
Common Stocks - continued | |||
Shares | Value (Note 1) (000s) | ||
FINANCIALS - continued | |||
Insurance - 8.2% | |||
Admiral Group PLC | 780,700 | $ 8,967 | |
Allstate Corp. | 865,100 | 47,347 | |
American International Group, Inc. | 557,500 | 32,920 | |
Assurant, Inc. | 199,100 | 9,636 | |
Axis Capital Holdings Ltd. | 32,400 | 927 | |
Berkshire Hathaway, Inc. Class A (a)(d) | 1,853 | 169,844 | |
Cincinnati Financial Corp. | 17,100 | 804 | |
Everest Re Group Ltd. | 159,300 | 13,791 | |
Genworth Financial, Inc. Class A (non-vtg.) | 541,400 | 18,862 | |
Lincoln National Corp. | 363,881 | 20,537 | |
Loews Corp. | 795,700 | 28,208 | |
MetLife, Inc. | 1,317,100 | 67,449 | |
MetLife, Inc. unit | 406,600 | 11,210 | |
ProAssurance Corp. (a) | 5,000 | 241 | |
Progressive Corp. | 345,500 | 8,883 | |
Prudential Financial, Inc. | 845,200 | 65,672 | |
SAFECO Corp. | 21,900 | 1,234 | |
StanCorp Financial Group, Inc. | 56,800 | 2,892 | |
The Chubb Corp. | 832,700 | 41,552 | |
The St. Paul Travelers Companies, Inc. | 21,600 | 963 | |
W.R. Berkley Corp. | 308,361 | 10,524 | |
White Mountains Insurance Group Ltd. | 8,383 | 4,083 | |
Zenith National Insurance Corp. | 61,500 | 2,440 | |
568,986 | |||
Real Estate Investment Trusts - 0.1% | |||
CBL & Associates Properties, Inc. | 17,800 | 693 | |
Equity Office Properties Trust | 20,100 | 734 | |
Equity Residential (SBI) | 400 | 18 | |
Vornado Realty Trust | 61,300 | 5,980 | |
7,425 | |||
Real Estate Management & Development - 0.2% | |||
CB Richard Ellis Group, Inc. Class A (a) | 450,400 | 11,215 | |
Mitsui Fudosan Co. Ltd. | 112,000 | 2,432 | |
13,647 | |||
Thrifts & Mortgage Finance - 0.9% | |||
Astoria Financial Corp. | 44,600 | 1,358 | |
Countrywide Financial Corp. | 90,200 | 3,435 | |
Common Stocks - continued | |||
Shares | Value (Note 1) (000s) | ||
FINANCIALS - continued | |||
Thrifts & Mortgage Finance - continued | |||
Golden West Financial Corp., Delaware | 733,200 | $ 54,403 | |
Hudson City Bancorp, Inc. | 160,200 | 2,135 | |
61,331 | |||
TOTAL FINANCIALS | 1,228,984 | ||
HEALTH CARE - 9.1% | |||
Biotechnology - 3.8% | |||
Alexion Pharmaceuticals, Inc. (a) | 152,305 | 5,501 | |
Amylin Pharmaceuticals, Inc. (a) | 206,900 | 10,215 | |
Arena Pharmaceuticals, Inc. (a) | 260,300 | 3,014 | |
Celgene Corp. (a) | 520,000 | 24,664 | |
Genentech, Inc. (a) | 2,037,900 | 166,700 | |
Genmab AS (a) | 60,400 | 1,947 | |
Gilead Sciences, Inc. (a) | 679,900 | 40,223 | |
GTx, Inc. (a) | 25,000 | 228 | |
Hutchison China Meditech Ltd. | 15 | 0 | |
MannKind Corp. (a)(d) | 290,006 | 6,180 | |
MannKind Corp. warrants 8/3/10 (a)(g) | 29,881 | 391 | |
Medarex, Inc. (a) | 431,700 | 4,149 | |
Myogen, Inc. (a) | 82,800 | 2,401 | |
Renovis, Inc. (a) | 23,400 | 358 | |
Tanox, Inc. (a) | 70,300 | 972 | |
Theravance, Inc. (a) | 30,300 | 693 | |
ViaCell, Inc. (a)(d) | 87,800 | 399 | |
268,035 | |||
Health Care Equipment & Supplies - 1.0% | |||
Becton, Dickinson & Co. | 39,300 | 2,402 | |
C.R. Bard, Inc. | 122,000 | 8,938 | |
Conceptus, Inc. (a) | 24,100 | 329 | |
DexCom, Inc. (a) | 90,800 | 1,233 | |
DJ Orthopedics, Inc. (a) | 125,500 | 4,622 | |
Gen-Probe, Inc. (a) | 61,600 | 3,325 | |
Intuitive Surgical, Inc. (a) | 17,300 | 2,041 | |
Inverness Medical Innovations, Inc. (a) | 15,000 | 423 | |
IRIS International, Inc. (a)(d) | 545,400 | 7,177 | |
Kyphon, Inc. (a) | 164,000 | 6,291 | |
NeuroMetrix, Inc. (a) | 30,500 | 929 | |
Nobel Biocare Holding AG (Switzerland) | 22,293 | 5,293 | |
Common Stocks - continued | |||
Shares | Value (Note 1) (000s) | ||
HEALTH CARE - continued | |||
Health Care Equipment & Supplies - continued | |||
Northstar Neuroscience, Inc. | 87,500 | $ 908 | |
NuVasive, Inc. (a) | 81,600 | 1,488 | |
ResMed, Inc. (a) | 259,500 | 12,184 | |
St. Jude Medical, Inc. (a) | 270,600 | 8,773 | |
Viasys Healthcare, Inc. (a) | 55,800 | 1,428 | |
67,784 | |||
Health Care Providers & Services - 0.9% | |||
Aetna, Inc. | 989,900 | 39,527 | |
American Retirement Corp. (a) | 43,100 | 1,412 | |
Health Net, Inc. (a) | 48,600 | 2,195 | |
Nighthawk Radiology Holdings, Inc. | 31,000 | 556 | |
UnitedHealth Group, Inc. | 294,100 | 13,170 | |
VCA Antech, Inc. (a) | 108,500 | 3,464 | |
Visicu, Inc. | 9,700 | 171 | |
60,495 | |||
Health Care Technology - 0.0% | |||
Vital Images, Inc. (a) | 46,100 | 1,139 | |
Life Sciences Tools & Services - 0.2% | |||
Covance, Inc. (a) | 44,800 | 2,743 | |
Exelixis, Inc. (a) | 47,700 | 479 | |
Millipore Corp. (a) | 3,500 | 220 | |
Pharmaceutical Product Development, Inc. | 31,900 | 1,120 | |
Thermo Electron Corp. (a) | 260,100 | 9,426 | |
13,988 | |||
Pharmaceuticals - 3.2% | |||
Aspreva Pharmaceuticals Corp. (a) | 267,800 | 7,268 | |
AstraZeneca PLC sponsored ADR | 272,400 | 16,295 | |
Atherogenics, Inc. (a) | 32,400 | 423 | |
Barr Pharmaceuticals, Inc. (a) | 10,300 | 491 | |
Johnson & Johnson | 361,500 | 21,661 | |
Merck & Co., Inc. | 522,600 | 19,038 | |
New River Pharmaceuticals, Inc. (a) | 22,200 | 633 | |
Novartis AG sponsored ADR | 573,300 | 30,912 | |
Roche Holding AG (participation certificate) | 631,193 | 104,347 | |
Sanofi-Aventis sponsored ADR | 308,100 | 15,004 | |
Schering-Plough Corp. | 56,700 | 1,079 | |
Common Stocks - continued | |||
Shares | Value (Note 1) (000s) | ||
HEALTH CARE - continued | |||
Pharmaceuticals - continued | |||
Sepracor, Inc. (a) | 11,900 | $ 680 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 155,848 | 4,923 | |
222,754 | |||
TOTAL HEALTH CARE | 634,195 | ||
INDUSTRIALS - 8.9% | |||
Aerospace & Defense - 0.9% | |||
Armor Holdings, Inc. (a) | 39,000 | 2,138 | |
Heico Corp. Class A | 400,000 | 9,488 | |
L-3 Communications Holdings, Inc. | 6,400 | 483 | |
Lockheed Martin Corp. | 488,600 | 35,052 | |
Northrop Grumman Corp. | 54,400 | 3,485 | |
Precision Castparts Corp. | 24,600 | 1,470 | |
The Boeing Co. | 142,900 | 11,705 | |
United Technologies Corp. | 13,900 | 882 | |
64,703 | |||
Air Freight & Logistics - 1.0% | |||
C.H. Robinson Worldwide, Inc. | 820,372 | 43,726 | |
Expeditors International of Washington, Inc. | 27,400 | 1,535 | |
FedEx Corp. | 59,400 | 6,941 | |
United Parcel Service, Inc. Class B | 214,300 | 17,643 | |
69,845 | |||
Airlines - 0.4% | |||
Republic Airways Holdings, Inc. (a) | 50,100 | 853 | |
Ryanair Holdings PLC sponsored ADR (a) | 309,300 | 16,306 | |
Southwest Airlines Co. | 577,400 | 9,452 | |
26,611 | |||
Commercial Services & Supplies - 0.8% | |||
Aramark Corp. Class B | 388,400 | 12,860 | |
Brady Corp. Class A | 111,500 | 4,108 | |
Cendant Corp. | 85,500 | 1,393 | |
Huron Consulting Group, Inc. (a) | 400,000 | 14,036 | |
Monster Worldwide, Inc. (a) | 207,400 | 8,848 | |
Robert Half International, Inc. | 309,300 | 12,991 | |
The Brink's Co. | 54,600 | 3,080 | |
57,316 | |||
Common Stocks - continued | |||
Shares | Value (Note 1) (000s) | ||
INDUSTRIALS - continued | |||
Construction & Engineering - 0.3% | |||
Jacobs Engineering Group, Inc. (a) | 237,500 | $ 18,915 | |
URS Corp. (a) | 28,000 | 1,176 | |
20,091 | |||
Electrical Equipment - 1.3% | |||
Cooper Industries Ltd. Class A | 530,600 | 49,303 | |
Energy Conversion Devices, Inc. (a) | 16,100 | 587 | |
Evergreen Solar, Inc. (a) | 452,900 | 5,879 | |
GrafTech International Ltd. (a) | 500,000 | 2,900 | |
Q-Cells AG | 114,300 | 9,615 | |
Roper Industries, Inc. | 87,100 | 4,072 | |
SolarWorld AG (d) | 188,000 | 11,801 | |
Suntech Power Holdings Co. Ltd. sponsored ADR | 121,000 | 3,418 | |
Ultralife Batteries, Inc. (a)(d) | 39,000 | 395 | |
87,970 | |||
Industrial Conglomerates - 0.6% | |||
3M Co. | 449,100 | 36,274 | |
Hutchison Whampoa Ltd. | 301,000 | 2,748 | |
Siemens AG sponsored ADR | 33,200 | 2,882 | |
41,904 | |||
Machinery - 2.4% | |||
Caterpillar, Inc. | 376,200 | 28,019 | |
Cummins, Inc. | 121,500 | 14,853 | |
Danaher Corp. | 754,377 | 48,522 | |
IDEX Corp. | 543,700 | 25,663 | |
Joy Global, Inc. | 363,757 | 18,948 | |
PACCAR, Inc. | 326,366 | 26,886 | |
162,891 | |||
Marine - 0.1% | |||
American Commercial Lines, Inc. | 123,300 | 7,429 | |
Road & Rail - 0.8% | |||
Canadian National Railway Co. | 494,700 | 21,609 | |
CSX Corp. | 10,300 | 726 | |
Heartland Express, Inc. | 182,533 | 3,266 | |
Knight Transportation, Inc. | 58,130 | 1,174 | |
Landstar System, Inc. | 112,900 | 5,332 | |
Norfolk Southern Corp. | 44,800 | 2,384 | |
Common Stocks - continued | |||
Shares | Value (Note 1) (000s) | ||
INDUSTRIALS - continued | |||
Road & Rail - continued | |||
Swift Transportation Co., Inc. (a) | 257,100 | $ 8,165 | |
Universal Truckload Services, Inc. (a) | 469,903 | 16,038 | |
58,694 | |||
Trading Companies & Distributors - 0.3% | |||
Fastenal Co. | 147,500 | 5,943 | |
Mitsui & Co. Ltd. | 1,102,000 | 15,563 | |
21,506 | |||
TOTAL INDUSTRIALS | 618,960 | ||
INFORMATION TECHNOLOGY - 19.9% | |||
Communications Equipment - 1.8% | |||
CommScope, Inc. (a) | 25,500 | 801 | |
Corning, Inc. (a) | 540,300 | 13,070 | |
ECI Telecom Ltd. (a) | 228,900 | 1,845 | |
F5 Networks, Inc. (a) | 94,700 | 5,065 | |
InterDigital Communication Corp. (a) | 42,500 | 1,484 | |
Ixia (a) | 354,600 | 3,191 | |
Nice Systems Ltd. sponsored ADR (a) | 503,500 | 14,168 | |
Nokia Corp. sponsored ADR | 1,585,100 | 32,114 | |
QUALCOMM, Inc. | 1,291,800 | 51,762 | |
TANDBERG Television ASA (a) | 55,000 | 912 | |
124,412 | |||
Computers & Peripherals - 3.8% | |||
Apple Computer, Inc. (a) | 1,218,300 | 69,589 | |
Dell, Inc. (a) | 192,400 | 4,696 | |
Hewlett-Packard Co. | 5,050,900 | 160,013 | |
Network Appliance, Inc. (a) | 713,860 | 25,199 | |
Seagate Technology | 222,900 | 5,046 | |
264,543 | |||
Electronic Equipment & Instruments - 0.9% | |||
Agilent Technologies, Inc. (a) | 1,800 | 57 | |
Amphenol Corp. Class A | 237,500 | 13,291 | |
Hon Hai Precision Industry Co. Ltd. (Foxconn) | 459,104 | 2,836 | |
Identix, Inc. (a) | 19,300 | 135 | |
Itron, Inc. (a) | 80,100 | 4,747 | |
KEMET Corp. (a) | 1,000,000 | 9,220 | |
LoJack Corp. (a) | 300,000 | 5,658 | |
Mettler-Toledo International, Inc. (a) | 72,800 | 4,409 | |
Common Stocks - continued | |||
Shares | Value (Note 1) (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Electronic Equipment & Instruments - continued | |||
Motech Industries, Inc. | 395,935 | $ 9,318 | |
National Instruments Corp. | 490,000 | 13,426 | |
Sunpower Corp. Class A | 6,200 | 174 | |
Viisage Technology, Inc. (a) | 7,300 | 111 | |
63,382 | |||
Internet Software & Services - 5.7% | |||
Akamai Technologies, Inc. (a) | 648,000 | 23,451 | |
aQuantive, Inc. (a) | 142,800 | 3,617 | |
Google, Inc. Class A (sub. vtg.) (a) | 674,400 | 282,799 | |
j2 Global Communications, Inc. (a) | 133,000 | 4,152 | |
LoopNet, Inc. (a) | 13,000 | 242 | |
NetEase.com, Inc. sponsored ADR (a)(d) | 223,000 | 4,980 | |
Tom Online, Inc. sponsored ADR (a)(d) | 52,500 | 1,013 | |
WebSideStory, Inc. (a)(d) | 446,056 | 5,442 | |
Yahoo!, Inc. (a) | 2,078,300 | 68,584 | |
394,280 | |||
IT Services - 2.1% | |||
Alliance Data Systems Corp. (a) | 298,900 | 17,581 | |
CheckFree Corp. (a)(d) | 387,200 | 19,190 | |
Cognizant Technology Solutions Corp. Class A (a) | 471,000 | 31,731 | |
First Data Corp. | 401,700 | 18,093 | |
Global Payments, Inc. | 54,300 | 2,636 | |
Infosys Technologies Ltd. sponsored ADR | 82,700 | 6,319 | |
Mastercard, Inc. Class A | 265,500 | 12,744 | |
MoneyGram International, Inc. | 29,200 | 991 | |
Paychex, Inc. | 86,900 | 3,387 | |
SRA International, Inc. Class A (a) | 201,561 | 5,368 | |
TALX Corp. | 412,500 | 9,021 | |
The BISYS Group, Inc. (a) | 46,500 | 637 | |
VeriFone Holdings, Inc. (a) | 583,800 | 17,794 | |
145,492 | |||
Office Electronics - 0.0% | |||
Canon, Inc. | 36,800 | 1,798 | |
Zebra Technologies Corp. Class A (a) | 19,600 | 670 | |
2,468 | |||
Semiconductors & Semiconductor Equipment - 4.4% | |||
Applied Materials, Inc. | 693,200 | 11,285 | |
ASML Holding NV (NY Shares) (a) | 764,800 | 15,464 | |
Broadcom Corp. Class A (a) | 676,600 | 20,332 | |
Common Stocks - continued | |||
Shares | Value (Note 1) (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Semiconductors & Semiconductor Equipment - continued | |||
FormFactor, Inc. (a) | 416,100 | $ 18,571 | |
Freescale Semiconductor, Inc. Class A (a) | 11,000 | 319 | |
Hittite Microwave Corp. | 93,100 | 3,366 | |
Lam Research Corp. (a) | 808,100 | 37,674 | |
Linear Technology Corp. | 78,900 | 2,642 | |
Marvell Technology Group Ltd. (a) | 1,900,600 | 84,254 | |
MathStar, Inc. | 10,000 | 59 | |
MEMC Electronic Materials, Inc. (a) | 326,400 | 12,240 | |
Microchip Technology, Inc. | 63,900 | 2,144 | |
Monolithic Power Systems, Inc. (a) | 86,184 | 1,020 | |
National Semiconductor Corp. | 633,800 | 15,116 | |
O2Micro International Ltd. sponsored ADR (a) | 3,000 | 23 | |
Renewable Energy Corp. AS | 191,300 | 2,736 | |
Saifun Semiconductors Ltd. | 50,000 | 1,433 | |
Samsung Electronics Co. Ltd. | 102,062 | 64,871 | |
SiRF Technology Holdings, Inc. (a) | 285,500 | 9,199 | |
Zoran Corp. (a) | 17,000 | 414 | |
303,162 | |||
Software - 1.2% | |||
Adobe Systems, Inc. (a) | 519,006 | 15,757 | |
Amdocs Ltd. (a) | 37,700 | 1,380 | |
Citrix Systems, Inc. (a) | 112,900 | 4,532 | |
ECtel Ltd. (a) | 5,649 | 25 | |
Informatica Corp. (a) | 18,000 | 237 | |
Intuit, Inc. (a) | 443,177 | 26,763 | |
JDA Software Group, Inc. (a) | 400,000 | 5,612 | |
NAVTEQ Corp. (a) | 179,530 | 8,021 | |
NDS Group PLC sponsored ADR (a) | 21,200 | 987 | |
Salesforce.com, Inc. (a) | 140,700 | 3,751 | |
SAP AG sponsored ADR | 246,800 | 12,962 | |
80,027 | |||
TOTAL INFORMATION TECHNOLOGY | 1,377,766 | ||
MATERIALS - 7.8% | |||
Chemicals - 1.2% | |||
Arkema sponsored ADR (a) | 9,210 | 356 | |
Bayer AG | 242,500 | 11,133 | |
Ecolab, Inc. | 698,800 | 28,357 | |
Lonza Group AG | 8,756 | 601 | |
Common Stocks - continued | |||
Shares | Value (Note 1) (000s) | ||
MATERIALS - continued | |||
Chemicals - continued | |||
Monsanto Co. | 142,300 | $ 11,980 | |
Praxair, Inc. | 490,200 | 26,471 | |
Wacker Chemie AG | 15,900 | 1,712 | |
80,610 | |||
Construction Materials - 0.0% | |||
Rinker Group Ltd. | 169,281 | 2,062 | |
Metals & Mining - 6.6% | |||
Agnico-Eagle Mines Ltd. | 231,700 | 7,682 | |
Alamos Gold, Inc. (a)(d) | 1,010,000 | 8,143 | |
Allegheny Technologies, Inc. | 56,400 | 3,905 | |
Anglo American PLC ADR | 1,392,900 | 28,471 | |
Aquarius Platinum Ltd. (Australia) | 598,000 | 8,777 | |
Bema Gold Corp. (a) | 2,517,400 | 12,561 | |
BHP Billiton Ltd. sponsored ADR | 1,199,500 | 51,662 | |
Companhia Vale do Rio Doce sponsored ADR | 102,000 | 2,452 | |
Eldorado Gold Corp. (a) | 608,400 | 2,954 | |
First Quantum Minerals Ltd. | 786,400 | 35,252 | |
Gabriel Resources Ltd. (a) | 725,700 | 1,879 | |
Gerdau SA sponsored ADR | 226,450 | 3,376 | |
Glamis Gold Ltd. (a) | 2,465,757 | 93,479 | |
Goldcorp, Inc. | 951,475 | 28,681 | |
IPSCO, Inc. | 129,000 | 12,350 | |
Ivanhoe Mines Ltd. (a) | 488,000 | 3,305 | |
Lihir Gold Ltd. (a) | 990,100 | 2,119 | |
Meridian Gold, Inc. (a) | 159,600 | 5,035 | |
New Gold, Inc. (a) | 466,300 | 4,152 | |
New Gold, Inc. warrants 2/23/08 (a) | 65,000 | 111 | |
Newmont Mining Corp. | 948,900 | 50,225 | |
Novagold Resources, Inc. (a) | 196,900 | 2,524 | |
Nucor Corp. | 383,200 | 20,789 | |
Oregon Steel Mills, Inc. (a) | 46,000 | 2,330 | |
POSCO sponsored ADR | 248,600 | 16,631 | |
Rio Tinto PLC (Reg.) | 853,200 | 44,731 | |
Steel Dynamics, Inc. | 82,400 | 5,417 | |
Teck Cominco Ltd. Class B (sub. vtg.) | 33,400 | 2,004 | |
US Gold Corp. (subscription receipt) (a)(g) | 112,300 | 1,128 | |
462,125 | |||
TOTAL MATERIALS | 544,797 | ||
Common Stocks - continued | |||
Shares | Value (Note 1) (000s) | ||
TELECOMMUNICATION SERVICES - 3.0% | |||
Diversified Telecommunication Services - 0.5% | |||
AT&T, Inc. | 509,100 | $ 14,199 | |
BT Group PLC sponsored ADR | 63,600 | 2,817 | |
Qwest Communications International, Inc. (a) | 1,801,900 | 14,577 | |
Telenor ASA | 190,800 | 2,307 | |
33,900 | |||
Wireless Telecommunication Services - 2.5% | |||
America Movil SA de CV Series L sponsored ADR | 3,156,400 | 104,982 | |
American Tower Corp. Class A (a) | 59,527 | 1,852 | |
China Mobile (Hong Kong) Ltd. sponsored ADR | 300,600 | 8,600 | |
Hutchison Telecommunications International Ltd. sponsored ADR (a)(d) | 147,300 | 3,522 | |
Leap Wireless International, Inc. (a) | 86,100 | 4,085 | |
NII Holdings, Inc. (a) | 951,647 | 53,654 | |
176,695 | |||
TOTAL TELECOMMUNICATION SERVICES | 210,595 | ||
UTILITIES - 0.6% | |||
Electric Utilities - 0.1% | |||
Exelon Corp. | 82,800 | 4,706 | |
FirstEnergy Corp. | 89,100 | 4,830 | |
9,536 | |||
Gas Utilities - 0.1% | |||
Southern Union Co. | 226,875 | 6,139 | |
Independent Power Producers & Energy Traders - 0.3% | |||
AES Corp. (a) | 719,600 | 13,277 | |
International Power PLC | 264,200 | 1,390 | |
TXU Corp. | 71,000 | 4,245 | |
18,912 | |||
Multi-Utilities - 0.1% | |||
National Grid PLC | 554,900 | 6,004 | |
Veolia Environnement | 26,900 | 1,391 | |
7,395 | |||
TOTAL UTILITIES | 41,982 | ||
TOTAL COMMON STOCKS (Cost $5,702,251) | 6,385,219 | ||
Convertible Preferred Stocks - 0.1% | |||
Shares | Value (Note 1) (000s) | ||
CONSUMER DISCRETIONARY - 0.1% | |||
Automobiles - 0.1% | |||
General Motors Corp. Series B, 5.25% | 310,900 | $ 5,693 | |
TOTAL CONVERTIBLE PREFERRED STOCKS (Cost $5,152) | 5,693 | ||
Money Market Funds - 9.8% | |||
Fidelity Cash Central Fund, 5.11% (b) | 598,552,930 | 598,553 | |
Fidelity Securities Lending Cash Central Fund, 5.14% (b)(c) | 81,361,352 | 81,361 | |
TOTAL MONEY MARKET FUNDS (Cost $679,914) | 679,914 | ||
TOTAL INVESTMENT PORTFOLIO - 101.9% (Cost $6,387,317) | 7,070,826 | ||
NET OTHER ASSETS - (1.9)% | (132,079) | ||
NET ASSETS - 100% | $ 6,938,747 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
(f) 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 $388,000 or 0.0% of net assets. |
(g) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $3,786,000 or 0.1% of net assets. |
Additional information on each holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
MannKind Corp. warrants 8/3/10 | 8/3/05 | $ 1 |
The Weinstein Co. III Holdings, LLC Class A-1 | 10/19/05 | $ 2,267 |
US Gold Corp. (subscription receipt) | 2/8/06 | $ 505 |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the fund from the affiliated Central funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 17,778 |
Fidelity Securities Lending Cash Central Fund | 482 |
Total | $ 18,260 |
Other Affiliated Issuers |
An affiliated company is a company in which the fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliates | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value, end of period |
Bakers Footwear Group, Inc. | $ 7,130 | $ 3,181 | $ - | $ - | $ 8,633 |
Preferred Bank, Los Angeles California | - | 19,483 | - | 39 | 20,372 |
TOTALS | $ 7,130 | $ 22,664 | $ - | $ 39 | $ 29,005 |
Other Information |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: |
United States of America | 72.7% |
Canada | 7.0% |
United Kingdom | 3.5% |
Bermuda | 2.3% |
Switzerland | 2.3% |
Netherlands Antilles | 1.8% |
Japan | 1.6% |
Mexico | 1.5% |
Korea (South) | 1.1% |
Others (individually less than 1%) | 6.2% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | June 30, 2006 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $79,918) - See accompanying schedule: Unaffiliated issuers (cost $5,678,277) | $ 6,361,907 | |
Affiliated Central Funds (cost $679,914) | 679,914 | |
Other affiliated issuers (cost $29,126) | 29,005 | |
Total Investments (cost $6,387,317) | $ 7,070,826 | |
Cash | 1 | |
Foreign currency held at value (cost $15,243) | 15,243 | |
Receivable for investments sold | 27,481 | |
Receivable for fund shares sold | 6,182 | |
Dividends receivable | 4,374 | |
Interest receivable | 3,346 | |
Prepaid expenses | 4 | |
Other receivables | 264 | |
Total assets | 7,127,721 | |
Liabilities | ||
Payable for investments purchased | $ 93,837 | |
Payable for fund shares redeemed | 5,812 | |
Accrued management fee | 3,184 | |
Distribution fees payable | 2,743 | |
Other affiliated payables | 1,428 | |
Other payables and accrued expenses | 609 | |
Collateral on securities loaned, at value | 81,361 | |
Total liabilities | 188,974 | |
Net Assets | $ 6,938,747 | |
Net Assets consist of: | ||
Paid in capital | $ 6,264,721 | |
Undistributed net investment income | 1,674 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (11,049) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 683,401 | |
Net Assets | $ 6,938,747 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | June 30, 2006 (Unaudited) | |
Calculation of Maximum Offering Price | $ 17.24 | |
Maximum offering price per share (100/94.25 of $17.24) | $ 18.29 | |
Class T: | $ 17.14 | |
Maximum offering price per share (100/96.50 of $17.14) | $ 17.76 | |
Class B: | $ 16.86 | |
Class C: | $ 16.89 | |
Institutional Class: | $ 17.40 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Amounts in thousands | Six months ended June 30, 2006 (Unaudited) | |
Investment Income | ||
Dividends (including $39 received from other affiliated issuers) | $ 24,406 | |
Interest | 92 | |
Income from affiliated Central Funds | 18,260 | |
Total income | 42,758 | |
Expenses | ||
Management fee | $ 17,029 | |
Transfer agent fees | 7,140 | |
Distribution fees | 15,241 | |
Accounting and security lending fees | 603 | |
Independent trustees' compensation | 11 | |
Custodian fees and expenses | 383 | |
Registration fees | 904 | |
Audit | 41 | |
Legal | 29 | |
Interest | 4 | |
Miscellaneous | 130 | |
Total expenses before reductions | 41,515 | |
Expense reductions | (465) | 41,050 |
Net investment income (loss) | 1,708 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of foreign taxes of $19) | (4,213) | |
Foreign currency transactions | 309 | |
Total net realized gain (loss) | (3,904) | |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of decrease in deferred foreign taxes of $11) | 132,697 | |
Assets and liabilities in foreign currencies | (108) | |
Total change in net unrealized appreciation (depreciation) | 132,589 | |
Net gain (loss) | 128,685 | |
Net increase (decrease) in net assets resulting from operations | $ 130,393 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
Amounts in thousands | Six months ended | Year ended |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $ 1,708 | $ (3,298) |
Net realized gain (loss) | (3,904) | 15,438 |
Change in net unrealized appreciation (depreciation) | 132,589 | 426,567 |
Net increase (decrease) in net assets resulting | 130,393 | 438,707 |
Distributions to shareholders from net realized gain | (14,806) | - |
Share transactions - net increase (decrease) | 2,568,102 | 2,787,029 |
Total increase (decrease) in net assets | 2,683,689 | 3,225,736 |
Net Assets | ||
Beginning of period | 4,255,058 | 1,029,322 |
End of period (including undistributed net investment income of $1,674 and accumulated net investment loss of $34, respectively) | $ 6,938,747 | $ 4,255,058 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
Six month ended | Years ended December 31, | |||
(Unaudited) | 2005 | 2004 | 2003 F | |
Selected Per-Share Data | ||||
Net asset value, beginning of period | $ 16.65 | $ 13.99 | $ 11.79 | $ 10.00 |
Income from Investment Operations | ||||
Net investment income (loss) E | .02 | .02 | (.03) | (.04) |
Net realized and unrealized gain (loss) | .62 | 2.64 | 2.24 | 1.87 |
Total from investment operations | .64 | 2.66 | 2.21 | 1.83 |
Distributions from net investment income | - | - | (.01) | (.03) |
Distributions from net realized gain | (.05) | - | - | (.01) |
Total distributions | (.05) | - | (.01) | (.04) |
Net asset value, end of period | $ 17.24 | $ 16.65 | $ 13.99 | $ 11.79 |
Total Return B, C, D | 3.84% | 19.01% | 18.76% | 18.23% |
Ratios to Average Net Assets G | ||||
Expenses before reductions | 1.14% A | 1.17% | 1.22% | 1.39% A |
Expenses net of fee waivers, if any | 1.14% A | 1.17% | 1.22% | 1.39% A |
Expenses net of all reductions | 1.13% A | 1.13% | 1.17% | 1.28% A |
Net investment income (loss) | .29% A | .13% | (.26)% | (.81)% A |
Supplemental Data | ||||
Net assets, end of period (in millions) | $ 1,683 | $ 1,019 | $ 230 | $ 37 |
Portfolio turnover rate | 82% A | 65% | 87% | 77% A |
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F For the period July 31, 2003 (commencement of operations) to December 31, 2003.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
Six months ended | Years ended December 31, | |||
(Unaudited) | 2005 | 2004 | 2003 F | |
Selected Per-Share Data | ||||
Net asset value, beginning of period | $ 16.57 | $ 13.96 | $ 11.78 | $ 10.00 |
Income from Investment Operations | ||||
Net investment income (loss) E | .01 | (.01) | (.06) | (.05) |
Net realized and unrealized gain (loss) | .61 | 2.62 | 2.25 | 1.86 |
Total from investment operations | .62 | 2.61 | 2.19 | 1.81 |
Distributions from net investment income | - | - | (.01) | (.02) |
Distributions from net realized gain | (.05) | - | - | (.01) |
Total distributions | (.05) | - | (.01) | (.03) |
Net asset value, end of period | $ 17.14 | $ 16.57 | $ 13.96 | $ 11.78 |
Total Return B, C, D | 3.74% | 18.70% | 18.60% | 18.08% |
Ratios to Average Net Assets G | ||||
Expenses before reductions | 1.34% A | 1.38% | 1.43% | 1.62% A |
Expenses net of fee waivers, if any | 1.34% A | 1.38% | 1.43% | 1.62% A |
Expenses net of all reductions | 1.32% A | 1.34% | 1.39% | 1.51% A |
Net investment income (loss) | .09% A | (.08)% | (.48)% | (1.04)% A |
Supplemental Data | ||||
Net assets, end of period (in millions) | $ 2,014 | $ 1,393 | $ 325 | $ 62 |
Portfolio turnover rate | 82% A | 65% | 87% | 77% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F For the period July 31, 2003 (commencement of operations) to December 31, 2003.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
Six months ended | Years ended December 31, | |||
(Unaudited) | 2005 | 2004 | 2003 F | |
Selected Per-Share Data | ||||
Net asset value, beginning of period | $ 16.35 | $ 13.85 | $ 11.76 | $ 10.00 |
Income from Investment Operations | ||||
Net investment income (loss) E | (.04) | (.10) | (.13) | (.07) |
Net realized and unrealized gain (loss) | .60 | 2.60 | 2.23 | 1.85 |
Total from investment operations | .56 | 2.50 | 2.10 | 1.78 |
Distributions from net investment income | - | - | (.01) | (.01) |
Distributions from net realized gain | (.05) | - | - | (.01) |
Total distributions | (.05) | - | (.01) | (.02) |
Net asset value, end of period | $ 16.86 | $ 16.35 | $ 13.85 | $ 11.76 |
Total Return B, C, D | 3.42% | 18.05% | 17.87% | 17.75% |
Ratios to Average Net Assets G | ||||
Expenses before reductions | 1.95% A | 1.98% | 2.02% | 2.19% A |
Expenses net of fee waivers, if any | 1.95% A | 1.98% | 2.02% | 2.19% A |
Expenses net of all reductions | 1.93% A | 1.94% | 1.97% | 2.08% A |
Net investment income (loss) | (.52)% A | (.68)% | (1.06)% | (1.61)% A |
Supplemental Data | ||||
Net assets, end of period (in millions) | $ 449 | $ 339 | $ 109 | $ 27 |
Portfolio turnover rate | 82% A | 65% | 87% | 77% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F For the period July 31, 2003 (commencement of operations) to December 31, 2003.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
Six months ended | Years ended December 31, | |||
(Unaudited) | 2005 | 2004 | 2003 F | |
Selected Per-Share Data | ||||
Net asset value, beginning of period | $ 16.37 | $ 13.86 | $ 11.76 | $ 10.00 |
Income from Investment Operations | ||||
Net investment income (loss) E | (.04) | (.09) | (.12) | (.07) |
Net realized and unrealized gain (loss) | .61 | 2.60 | 2.23 | 1.85 |
Total from investment operations | .57 | 2.51 | 2.11 | 1.78 |
Distributions from net investment income | - | - | (.01) | (.01) |
Distributions from net realized gain | (.05) | - | - | (.01) |
Total distributions | (.05) | - | (.01) | (.02) |
Net asset value, end of period | $ 16.89 | $ 16.37 | $ 13.86 | $ 11.76 |
Total Return B, C, D | 3.48% | 18.11% | 17.95% | 17.77% |
Ratios to Average Net Assets G | ||||
Expenses before reductions | 1.86% A | 1.89% | 1.94% | 2.14% A |
Expenses net of fee waivers, if any | 1.86% A | 1.89% | 1.94% | 2.14% A |
Expenses net of all reductions | 1.85% A | 1.85% | 1.89% | 2.03% A |
Net investment income (loss) | (.43)% A | (.59)% | (.98)% | (1.55)% A |
Supplemental Data | ||||
Net assets, end of period (in millions) | $ 1,514 | $ 1,006 | $ 246 | $ 49 |
Portfolio turnover rate | 82% A | 65% | 87% | 77% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F For the period July 31, 2003 (commencement of operations) to December 31, 2003.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
Six months ended | Years ended December 31, | |||
(Unaudited) | 2005 | 2004 | 2003 E | |
Selected Per-Share Data | ||||
Net asset value, beginning of period | $ 16.78 | $ 14.05 | $ 11.79 | $ 10.00 |
Income from Investment Operations | ||||
Net investment income (loss) D | .05 | .07 | .01 | (.02) |
Net realized and unrealized gain (loss) | .62 | 2.66 | 2.26 | 1.86 |
Total from investment operations | .67 | 2.73 | 2.27 | 1.84 |
Distributions from net investment income | - | - | (.01) | (.04) |
Distributions from net realized gain | (.05) | - | - | (.01) |
Total distributions | (.05) | - | (.01) | (.05) |
Net asset value, end of period | $ 17.40 | $ 16.78 | $ 14.05 | $ 11.79 |
Total Return B, C | 3.99% | 19.43% | 19.27% | 18.31% |
Ratios to Average Net Assets F | ||||
Expenses before reductions | .85% A | .84% | .86% | 1.07% A |
Expenses net of fee waivers, if any | .85% A | .84% | .86% | 1.07% A |
Expenses net of all reductions | .84% A | .79% | .82% | .96% A |
Net investment income (loss) | .58% A | .47% | .10% | (.49)% A |
Supplemental Data | ||||
Net assets, end of period (in millions) | $ 1,279 | $ 498 | $ 120 | $ 23 |
Portfolio turnover rate | 82% A | 65% | 87% | 77% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E For the period July 31, 2003 (commencement of operations) to December 31, 2003.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended June 30, 2006 (Unaudited)
(Amounts in thousands except ratios)
1. Significant Accounting Policies.
Fidelity Advisor New Insights Fund (the Fund) is a fund of Fidelity Contrafund (the trust) and is authorized to issue an unlimited number of shares. Effective the close of business on April 28, 2006, the Fund was closed to most new accounts. 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 Fund offers Class A, Class T, Class B, Class C, and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.
The Fund may invest in affiliated money market central funds (Money Market Central Funds), which are open-end investment companies available to investment companies and other accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued and net asset value (NAV) per share is calculated (NAV calculation) as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Investments in open-end mutual funds are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
1. Significant Accounting Policies - continued
Security Valuation - continued
When current market prices or quotations are not readily available or do not accurately reflect fair value, valuations may be determined in accordance with procedures adopted by the Board of Trustees. For example, when developments occur between the close of a market and the close of the NYSE that may materially affect the value of some or all of the securities, or when trading in a security is halted, those securities may be fair valued. Factors used in the determination of fair value may include monitoring news to identify significant market or security specific events such as changes in the value of U.S. securities markets, reviewing developments in foreign markets and evaluating the performance of ADRs, futures contracts and exchange-traded funds. Because the Fund's utilization of fair value pricing depends on market activity, the frequency with which fair value pricing is used can not be predicted and may be utilized to a significant extent. The value of securities used for NAV calculation under fair value pricing may differ from published prices for the same securities.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income is accrued as
Semiannual Report
1. Significant Accounting Policies - continued
Investment Transactions and Income - continued
earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. 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 among each Fund in the trust.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required in the accompanying financial statements. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), market discount, net operating losses, capital loss carryforwards, and losses deferred due to wash sales.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 821,135 |
Unrealized depreciation | (147,182) |
Net unrealized appreciation (depreciation) | $ 673,953 |
Cost for federal income tax purposes | $ 6,396,873 |
New Accounting Pronouncement. In July 2006, Financial Accounting Standards Board Interpretation No. 48, Accounting for Uncertainty in Income Taxes - an interpretation of FASB Statement 109 (FIN 48) was issued and is effective for fiscal years beginning after December 15, 2006. FIN 48 sets forth a threshold for financial statement recognition, measurement and disclosure of a tax position taken or expected to be taken on a tax return. Management is currently evaluating the impact, if any, the adoption of FIN 48 will have on the Fund's net assets and results of operations.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
2. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
3. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and U.S. government securities, aggregated $4,589,558 and $2,152,598, respectively.
4. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and a group fee rate that averaged ..27% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .57% of the Fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for
Semiannual Report
4. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan - continued
selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:
Distribution | Service | Paid to | Retained | |
Class A | 0% | .25% | $ 1,821 | $ 82 |
Class T | .25% | .25% | 4,542 | 340 |
Class B | .75% | .25% | 2,091 | 1,571 |
Class C | .75% | .25% | 6,787 | 4,175 |
$ 15,241 | $ 6,168 |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, 1.00% to .50% for certain purchases of Class A shares (.25% prior to February 24, 2006) and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
Retained | |
Class A | $ 1,885 |
Class T | 440 |
Class B* | 282 |
Class C* | 153 |
$ 2,760 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
4. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
shareholder reports, except proxy statements. For the period the total transfer agent fees paid by each class to FIIOC, were as follows:
Amount | % of | |
Class A | $ 1,900 | .26* |
Class T | 1,898 | .21* |
Class B | 665 | .32* |
Class C | 1,595 | .23* |
Institutional Class | 1,082 | .22* |
$ 7,140 |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Affiliated Central Funds. The Fund may invest in Money Market Central Funds which seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
The Money Market Central Funds do not pay a management fee.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $14 for the period.
5. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $4.2 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro rata portion of the line of credit, which amounts to $6 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Semiannual Report
6. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Net income from lending portfolio securities during the period amounted to $482.
7. Bank Borrowings.
The Fund is permitted to have bank borrowings for temporary or emergency purposes to fund shareholder redemptions. The Fund has established borrowing arrangements with certain banks. The interest rate on the borrowings is the bank's base rate, as revised from time to time. The average daily loan balance during the period for which loans were outstanding amounted to $27,763. The weighted average interest rate was 5.31%. At period end, there were no bank borrowings outstanding.
8. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $452 for the period. In addition, through arrangements with the Fund's custodian and each class' transfer agent, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
8. Expense Reductions - continued
the period, these credits reduced the Fund's custody expenses by $2. During the period, credits reduced each class' transfer agent expense as noted in the table below.
Transfer Agent | |
Class A | $ 3 |
Class T | 5 |
Institutional Class | 3 |
$ 11 |
9. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net realized gain | ||
Class A | $ 3,604 | $ - |
Class T | 4,694 | - |
Class B | 1,130 | - |
Class C | 3,506 | - |
Institutional Class | 1,872 | - |
Total | $ 14,806 | $ - |
Semiannual Report
11. Share Transactions.
Transactions for each class of shares were as follows:
Shares | Dollars | |||
Six months ended | Year ended | Six months ended | Year ended | |
Class A | ||||
Shares sold | 43,726 | 48,615 | $ 758,679 | $ 747,881 |
Reinvestment of distributions | 186 | - | 3,201 | - |
Shares redeemed | (7,489) | (3,868) | (128,194) | (58,730) |
Net increase (decrease) | 36,423 | 44,747 | $ 633,686 | $ 689,151 |
Class T | ||||
Shares sold | 41,187 | 65,661 | $ 711,835 | $ 990,175 |
Reinvestment of distributions | 260 | - | 4,446 | - |
Shares redeemed | (8,035) | (4,899) | (137,559) | (73,812) |
Net increase (decrease) | 33,412 | 60,762 | $ 578,722 | $ 916,363 |
Class B | ||||
Shares sold | 8,061 | 14,492 | $ 137,365 | $ 215,896 |
Reinvestment of distributions | 56 | - | 941 | - |
Shares redeemed | (2,254) | (1,584) | (38,052) | (23,549) |
Net increase (decrease) | 5,863 | 12,908 | $ 100,254 | $ 192,347 |
Class C | ||||
Shares sold | 32,227 | 46,847 | $ 549,551 | $ 703,988 |
Reinvestment of distributions | 154 | - | 2,604 | - |
Shares redeemed | (4,215) | (3,110) | (70,486) | (46,058) |
Net increase (decrease) | 28,166 | 43,737 | $ 481,669 | $ 657,930 |
Institutional Class | ||||
Shares sold | 50,637 | 22,374 | $ 891,242 | $ 349,673 |
Reinvestment of distributions | 69 | - | 1,201 | - |
Shares redeemed | (6,852) | (1,206) | (118,672) | (18,435) |
Net increase (decrease) | 43,854 | 21,168 | $ 773,771 | $ 331,238 |
Semiannual Report
Board Approval of Investment Advisory Contracts and Management Fees
Advisor New Insights Fund
On January 19, 2006, the Board of Trustees, including the Independent Trustees (together, the Board), voted to approve a general research services agreement (the Agreement) between FMR, FMR Co., Inc. (FMRC), Fidelity Investments Money Management, Inc. (FIMM), and Fidelity Research & Analysis Company (FRAC) (together, the Investment Advisers) for the fund, effective January 20, 2006, pursuant to which FRAC may provide general research and investment advisory support services to FMRC and FIMM. The Board considered that it has approved previously various sub-advisory agreements for the fund with affiliates of FMR that allow FMR to obtain research, non-discretionary advice, or discretionary portfolio management at no additional expense to the fund. The Board, assisted by the advice of fund counsel and independent Trustees' counsel, considered a broad range of information and determined that it would be beneficial for the fund to access the research and investment advisory support services supplied by FRAC at no additional expense to the fund.
The Board reached this determination in part because the new arrangement will involve no changes in (i) the contractual terms of and fees payable under the fund's management contract or sub-advisory agreements; (ii) the investment process or strategies employed in the management of the fund's assets; (iii) the nature or level of services provided under the fund's management contract or sub-advisory agreements; (iv) the day-to-day management of the fund or the persons primarily responsible for such management; or (v) the ultimate control or beneficial ownership of FMR, FMRC, or FIMM. The Board also considered that the establishment of the Agreement would not necessitate prior shareholder approval of the Agreement or result in an assignment and termination of the fund's management contract or sub-advisory agreements under the Investment Company Act of 1940.
Because the Board was approving an arrangement with FRAC under which the fund will not bear any additional management fees or expenses and under which the fund's portfolio manager would not change, it did not consider the fund's investment performance, competitiveness of management fee and total expenses, costs of services and profitability, or economies of scale to be significant factors in its decision.
In connection with its future renewal of the fund's management contract and sub-advisory agreements, the Board will consider: (i) the nature, extent, and quality of services provided to the fund, including shareholder and administrative services and investment performance; (ii) the competitiveness of the fund's management fee and total expenses; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders; and (iv) whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies.
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Based on its evaluation of all of the conclusions noted above, and after considering all material factors, the Board ultimately concluded that the fund's Agreement is fair and reasonable, and that the fund's Agreement should be approved.
Semiannual Report
Semiannual Report
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Adviser
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Research & Analysis Company
(formerly Fidelity Management &
Research (Far East) Inc.)
Fidelity Investments Japan Limited
Fidelity International Investment Advisors
Fidelity International Investment
Advisors (U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Brown Brothers Harriman & Co.
Boston, MA
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
ANIFI-USAN-0806
1.803544.102
Fidelity®
Contrafund®
Semiannual Report
June 30, 2006(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | Ned Johnson's message to shareholders. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, | |
Notes | Notes to the financial statements. | |
Report of Independent Registered Public Accounting Firm | ||
Board Approval of Investment Advisory Contracts and Management Fees |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR Corp. or an affiliated company.
Semiannual Report
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent quarterly holdings report, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com/holdings.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
Although many securities markets made gains in early 2006, inflation concerns led to mixed results through the year's mid-point. Financial markets are always unpredictable. There are, however, a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (January 1, 2006 to June 30, 2006).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Beginning | Ending | Expenses Paid | |
Actual | $ 1,000.00 | $ 1,039.50 | $ 4.55 |
Hypothetical (5% return per year before expenses) | $ 1,000.00 | $ 1,020.33 | $ 4.51 |
* Expenses are equal to the Fund's annualized expense ratio of .90%; multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes
Top Ten Stocks as of June 30, 2006 | ||
% of fund's | % of fund's net assets | |
Google, Inc. Class A (sub. vtg.) | 3.8 | 3.5 |
Genentech, Inc. | 2.4 | 2.9 |
Berkshire Hathaway, Inc. Class A | 2.3 | 2.1 |
EnCana Corp. | 2.2 | 2.6 |
Schlumberger Ltd. (NY Shares) | 1.7 | 1.0 |
Wells Fargo & Co. | 1.6 | 0.8 |
Procter & Gamble Co. | 1.6 | 1.5 |
Hewlett-Packard Co. | 1.6 | 0.7 |
America Movil SA de CV Series L sponsored ADR | 1.5 | 1.3 |
Roche Holding AG (participation certificate) | 1.4 | 1.3 |
20.1 | ||
Top Five Market Sectors as of June 30, 2006 | ||
% of fund's | % of fund's net assets | |
Financials | 18.1 | 16.6 |
Information Technology | 17.2 | 17.6 |
Energy | 11.4 | 11.7 |
Health Care | 10.0 | 14.1 |
Industrials | 8.9 | 7.8 |
Asset Allocation (% of fund's net assets) | |||||||
As of June 30, 2006 * | As of December 31, 2005 ** | ||||||
![]() | Stocks 90.4% | ![]() | Stocks 90.1% | ||||
![]() | Bonds 0.0% | ![]() | Bonds 0.2% | ||||
![]() | Convertible | ![]() | Convertible | ||||
![]() | Short-Term | ![]() | Short-Term | ||||
* Foreign | 26.5% | ** Foreign investments | 25.4% |
Semiannual Report
Investments June 30, 2006
Showing Percentage of Net Assets
Common Stocks - 90.4% | |||
Shares | Value (Note 1) (000s) | ||
CONSUMER DISCRETIONARY - 7.9% | |||
Auto Components - 0.0% | |||
LKQ Corp. (a) | 76,201 | $ 1,448 | |
Automobiles - 0.8% | |||
General Motors Corp. (d) | 1,938,800 | 57,757 | |
Harley-Davidson, Inc. | 421,000 | 23,109 | |
Honda Motor Co. Ltd. | 1,339,000 | 42,607 | |
Hyundai Motor Co. | 75,190 | 6,388 | |
Renault SA | 211,400 | 22,716 | |
Toyota Motor Corp. | 7,051,200 | 368,743 | |
521,320 | |||
Distributors - 0.0% | |||
Li & Fung Ltd. | 15,809,200 | 31,959 | |
Diversified Consumer Services - 0.0% | |||
Laureate Education, Inc. (a) | 124,806 | 5,320 | |
Hotels, Restaurants & Leisure - 1.9% | |||
Aristocrat Leisure Ltd. | 8,922,391 | 85,403 | |
Chipotle Mexican Grill, Inc. Class A (e) | 1,095,000 | 66,740 | |
International Game Technology | 991,900 | 37,633 | |
Kerzner International Ltd. (a) | 416,300 | 33,004 | |
Las Vegas Sands Corp. (a) | 3,054,000 | 237,784 | |
Panera Bread Co. Class A (a)(e) | 2,909,851 | 195,658 | |
Penn National Gaming, Inc. (a) | 1,093,969 | 42,424 | |
Starbucks Corp. (a) | 5,752,400 | 217,211 | |
Station Casinos, Inc. | 2,315,300 | 157,626 | |
Tim Hortons, Inc. (d) | 1,303,440 | 33,564 | |
William Hill PLC | 6,585,807 | 76,313 | |
Wynn Resorts Ltd. (a) | 925,062 | 67,807 | |
1,251,167 | |||
Household Durables - 0.6% | |||
Garmin Ltd. | 1,342,621 | 141,566 | |
KB Home | 389,300 | 17,849 | |
Matsushita Electric Industrial Co. Ltd. | 4,333,800 | 91,573 | |
Sharp Corp. | 2,737,000 | 43,247 | |
Sony Corp. | 1,591,100 | 70,072 | |
Whirlpool Corp. | 175,400 | 14,497 | |
378,804 | |||
Internet & Catalog Retail - 0.2% | |||
Coldwater Creek, Inc. (a) | 762,723 | 20,410 | |
Expedia, Inc. (a) | 1,296,700 | 19,412 | |
Liberty Media Holding Corp. - Interactive Series A (a) | 1,953,617 | 33,719 | |
Common Stocks - continued | |||
Shares | Value (Note 1) (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Internet & Catalog Retail - continued | |||
Submarino SA | 780,500 | $ 15,676 | |
VistaPrint Ltd. | 1,071,600 | 28,655 | |
117,872 | |||
Leisure Equipment & Products - 0.0% | |||
Aruze Corp. | 197,800 | 4,304 | |
Media - 1.6% | |||
Focus Media Holding Ltd. ADR | 633,530 | 41,281 | |
Live Nation, Inc. (a) | 614,000 | 12,501 | |
McGraw-Hill Companies, Inc. | 1,181,040 | 59,324 | |
News Corp. Class B | 5,534,000 | 111,676 | |
Sirius Satellite Radio, Inc. (a)(d) | 6,696,591 | 31,809 | |
The Walt Disney Co. | 24,101,806 | 723,054 | |
The Weinstein Co. Holdings, LLC Class A-1 (a)(g) | 41,234 | 41,234 | |
Thomson Corp. | 428,700 | 16,517 | |
1,037,396 | |||
Multiline Retail - 0.6% | |||
JCPenney Co., Inc. | 1,654,700 | 111,709 | |
Marks & Spencer Group PLC | 22,103,447 | 239,974 | |
Nordstrom, Inc. | 826,000 | 30,149 | |
Target Corp. | 524,560 | 25,635 | |
407,467 | |||
Specialty Retail - 1.9% | |||
Best Buy Co., Inc. | 4,594,450 | 251,960 | |
Circuit City Stores, Inc. | 6,333,298 | 172,392 | |
Inditex SA | 795,900 | 33,577 | |
J. Crew Group, Inc. | 2,146,700 | 58,927 | |
Limited Brands, Inc. | 1,809,100 | 46,295 | |
O'Reilly Automotive, Inc. (a) | 158,200 | 4,934 | |
Office Depot, Inc. (a) | 7,500,540 | 285,021 | |
Payless ShoeSource, Inc. (a) | 712,100 | 19,348 | |
Staples, Inc. | 6,196,700 | 150,704 | |
The Children's Place Retail Stores, Inc. (a) | 155,874 | 9,360 | |
TJX Companies, Inc. | 6,654,500 | 152,122 | |
Tractor Supply Co. (a) | 235,146 | 12,997 | |
Wet Seal, Inc. Class A (a) | 1,849,472 | 9,025 | |
1,206,662 | |||
Textiles, Apparel & Luxury Goods - 0.3% | |||
Burberry Group PLC | 3,320,994 | 26,412 | |
Common Stocks - continued | |||
Shares | Value (Note 1) (000s) | ||
CONSUMER DISCRETIONARY - continued | |||
Textiles, Apparel & Luxury Goods - continued | |||
Coach, Inc. (a) | 1,320,922 | $ 39,496 | |
Luxottica Group Spa sponsored ADR | 212,400 | 5,762 | |
Polo Ralph Lauren Corp. Class A | 210,400 | 11,551 | |
Puma AG | 88,200 | 34,291 | |
Under Armour, Inc. Class A (sub. vtg.) | 611,600 | 26,066 | |
VF Corp. | 699,600 | 47,517 | |
Wolverine World Wide, Inc. | 204,400 | 4,769 | |
195,864 | |||
TOTAL CONSUMER DISCRETIONARY | 5,159,583 | ||
CONSUMER STAPLES - 6.3% | |||
Beverages - 2.2% | |||
Anheuser-Busch Companies, Inc. | 229,700 | 10,472 | |
Diageo PLC sponsored ADR | 3,963,300 | 267,721 | |
InBev SA | 234,183 | 11,488 | |
PepsiCo, Inc. | 12,313,055 | 739,276 | |
The Coca-Cola Co. | 9,496,297 | 408,531 | |
1,437,488 | |||
Food & Staples Retailing - 0.4% | |||
Costco Wholesale Corp. | 432,900 | 24,732 | |
Safeway, Inc. | 311,800 | 8,107 | |
Tesco PLC | 11,600,813 | 71,664 | |
Wal-Mart de Mexico SA de CV Series V | 13,413,944 | 36,868 | |
Wal-Mart Stores, Inc. | 2,715,100 | 130,786 | |
272,157 | |||
Food Products - 1.1% | |||
Campbell Soup Co. | 369,300 | 13,705 | |
General Mills, Inc. | 293,800 | 15,178 | |
Groupe Danone | 1,255,360 | 159,542 | |
Hershey Co. | 3,100,800 | 170,761 | |
Kellogg Co. | 685,600 | 33,204 | |
Nestle SA (Reg.) | 473,124 | 148,613 | |
Sara Lee Corp. | 2,055,500 | 32,929 | |
TreeHouse Foods, Inc. (a) | 1,481,000 | 35,381 | |
Wm. Wrigley Jr. Co. | 2,037,350 | 92,414 | |
701,727 | |||
Common Stocks - continued | |||
Shares | Value (Note 1) (000s) | ||
CONSUMER STAPLES - continued | |||
Household Products - 2.1% | |||
Colgate-Palmolive Co. | 5,087,900 | $ 304,765 | |
Procter & Gamble Co. | 18,668,670 | 1,037,978 | |
1,342,743 | |||
Personal Products - 0.5% | |||
Avon Products, Inc. | 7,545,654 | 233,915 | |
Estee Lauder Companies, Inc. Class A | 973,100 | 37,630 | |
Herbalife Ltd. (a) | 2,032,900 | 81,113 | |
352,658 | |||
TOTAL CONSUMER STAPLES | 4,106,773 | ||
ENERGY - 11.4% | |||
Energy Equipment & Services - 2.6% | |||
Baker Hughes, Inc. | 3,395,400 | 277,913 | |
BJ Services Co. | 397,100 | 14,796 | |
Halliburton Co. | 2,059,100 | 152,806 | |
Hanover Compressor Co. (a) | 193,015 | 3,625 | |
Schlumberger Ltd. (NY Shares) | 16,651,300 | 1,084,166 | |
Smith International, Inc. | 4,122,880 | 183,344 | |
1,716,650 | |||
Oil, Gas & Consumable Fuels - 8.8% | |||
Addax Petroleum Corp. | 1,330,500 | 35,578 | |
BG Group PLC sponsored ADR | 1,175,000 | 78,584 | |
BP PLC sponsored ADR | 2,559,266 | 178,151 | |
Cameco Corp. | 857,000 | 34,140 | |
Canadian Natural Resources Ltd. | 977,400 | 54,040 | |
Canadian Oil Sands Trust unit | 8,098,800 | 261,181 | |
China Petroleum & Chemical Corp. sponsored ADR (d) | 641,100 | 36,697 | |
CONSOL Energy, Inc. | 2,723,100 | 127,223 | |
EnCana Corp. | 27,409,048 | 1,443,253 | |
EOG Resources, Inc. | 2,976,800 | 206,411 | |
Exxon Mobil Corp. | 7,718,200 | 473,512 | |
Foundation Coal Holdings, Inc. | 435,500 | 20,438 | |
Goodrich Petroleum Corp. (a) | 60,800 | 1,726 | |
Hess Corp. | 233,500 | 12,340 | |
Highpine Oil & Gas Ltd. (a)(f) | 355,200 | 5,918 | |
Hugoton Royalty Trust | 24 | 1 | |
Husky Energy, Inc. | 247,000 | 15,502 | |
Imperial Oil Ltd. | 1,011,000 | 36,933 | |
Common Stocks - continued | |||
Shares | Value (Note 1) (000s) | ||
ENERGY - continued | |||
Oil, Gas & Consumable Fuels - continued | |||
Kerr-McGee Corp. | 546,000 | $ 37,865 | |
Murphy Oil Corp. | 8,340,000 | 465,872 | |
Noble Energy, Inc. | 1,730,234 | 81,079 | |
Occidental Petroleum Corp. | 1,368,500 | 140,340 | |
Peabody Energy Corp. | 2,245,400 | 125,181 | |
PetroChina Co. Ltd. sponsored ADR (d) | 2,996,800 | 323,564 | |
Petroleo Brasileiro SA Petrobras sponsored ADR | 789,400 | 70,501 | |
Sasol Ltd. sponsored ADR | 1,290,200 | 49,853 | |
Suncor Energy, Inc. | 1,507,200 | 121,975 | |
Talisman Energy, Inc. | 7,162,400 | 124,988 | |
Total SA sponsored ADR | 1,033,962 | 67,745 | |
Ultra Petroleum Corp. (a) | 322,300 | 19,103 | |
Valero Energy Corp. | 13,692,675 | 910,837 | |
Western Oil Sands, Inc. Class A (a) | 2,131,000 | 59,064 | |
XTO Energy, Inc. | 1,845,833 | 81,715 | |
5,701,310 | |||
TOTAL ENERGY | 7,417,960 | ||
FINANCIALS - 18.1% | |||
Capital Markets - 0.9% | |||
Charles Schwab Corp. | 6,910,036 | 110,422 | |
Goldman Sachs Group, Inc. | 1,655,500 | 249,037 | |
Lehman Brothers Holdings, Inc. | 2,337,670 | 152,299 | |
Mellon Financial Corp. | 2,074,100 | 71,411 | |
SEI Investments Co. | 53,900 | 2,635 | |
585,804 | |||
Commercial Banks - 3.9% | |||
Allied Irish Banks PLC | 7,038,510 | 170,191 | |
Anglo Irish Bank Corp. PLC | 11,046,618 | 172,396 | |
Banco Itau Holding Financeira SA sponsored ADR (non-vtg.) | 961,800 | 28,046 | |
Bank of Ireland | 2,343,313 | 42,092 | |
Commerce Bancorp, Inc., New Jersey (d) | 1,275,800 | 45,508 | |
Compass Bancshares, Inc. | 1,085,473 | 60,352 | |
Home Bancshares, Inc. | 75,300 | 1,709 | |
HSBC Holdings PLC sponsored ADR | 995,107 | 87,918 | |
M&T Bank Corp. | 3,260,700 | 384,502 | |
Marshall & Ilsley Corp. | 343,200 | 15,698 | |
National Australia Bank Ltd. | 1,368,800 | 35,766 | |
PNC Financial Services Group, Inc. | 338,300 | 23,739 | |
Common Stocks - continued | |||
Shares | Value (Note 1) (000s) | ||
FINANCIALS - continued | |||
Commercial Banks - continued | |||
Royal Bank of Scotland Group PLC | 5,270,200 | $ 173,311 | |
Shinhan Financial Group Co. Ltd. | 603,290 | 28,298 | |
Standard Chartered PLC (United Kingdom) | 1,376,100 | 33,596 | |
SunTrust Banks, Inc. | 545,400 | 41,592 | |
Uniao de Bancos Brasileiros SA (Unibanco) GDR | 889,400 | 59,047 | |
Wells Fargo & Co. | 15,550,400 | 1,043,121 | |
Zions Bancorp | 686,946 | 53,541 | |
2,500,423 | |||
Consumer Finance - 1.7% | |||
American Express Co. | 11,697,150 | 622,522 | |
SLM Corp. | 9,718,700 | 514,314 | |
1,136,836 | |||
Diversified Financial Services - 1.7% | |||
Bank of America Corp. | 8,057,500 | 387,566 | |
Citigroup, Inc. | 5,930,800 | 286,102 | |
JPMorgan Chase & Co. | 6,334,100 | 266,032 | |
Moody's Corp. | 3,049,200 | 166,059 | |
1,105,759 | |||
Insurance - 8.4% | |||
ACE Ltd. | 459,100 | 23,226 | |
Admiral Group PLC | 7,685,722 | 88,276 | |
AFLAC, Inc. | 871,700 | 40,403 | |
Allstate Corp. | 7,464,500 | 408,532 | |
American International Group, Inc. | 6,837,026 | 403,726 | |
Assurant, Inc. | 3,444,550 | 166,716 | |
Axis Capital Holdings Ltd. | 2,574,400 | 73,654 | |
Berkshire Hathaway, Inc. Class A (a) | 16,084 | 1,474,243 | |
Cincinnati Financial Corp. | 303,123 | 14,250 | |
Everest Re Group Ltd. | 3,027,120 | 262,058 | |
Genworth Financial, Inc. Class A (non-vtg.) | 4,865,400 | 169,511 | |
Lincoln National Corp. | 3,138,908 | 177,160 | |
Loews Corp. | 4,864,400 | 172,443 | |
Markel Corp. (a) | 42,750 | 14,834 | |
MetLife, Inc. | 8,937,000 | 457,664 | |
MetLife, Inc. unit | 3,634,300 | 100,198 | |
Progressive Corp. | 5,673,300 | 145,861 | |
Prudential Financial, Inc. | 5,701,400 | 442,999 | |
SAFECO Corp. | 237,000 | 13,355 | |
StanCorp Financial Group, Inc. | 1,118,000 | 56,917 | |
Common Stocks - continued | |||
Shares | Value (Note 1) (000s) | ||
FINANCIALS - continued | |||
Insurance - continued | |||
The Chubb Corp. | 7,812,700 | $ 389,854 | |
The St. Paul Travelers Companies, Inc. | 1,558,900 | 69,496 | |
W.R. Berkley Corp. | 5,397,600 | 184,220 | |
White Mountains Insurance Group Ltd. | 162,850 | 79,308 | |
Zenith National Insurance Corp. | 901,900 | 35,778 | |
5,464,682 | |||
Real Estate Investment Trusts - 0.3% | |||
CBL & Associates Properties, Inc. | 1,359,094 | 52,910 | |
Equity Office Properties Trust | 779,100 | 28,445 | |
Equity Residential (SBI) | 665,700 | 29,777 | |
Vornado Realty Trust | 960,800 | 93,726 | |
204,858 | |||
Real Estate Management & Development - 0.2% | |||
CB Richard Ellis Group, Inc. Class A (a) | 4,117,670 | 102,530 | |
Mitsui Fudosan Co. Ltd. | 1,768,000 | 38,396 | |
140,926 | |||
Thrifts & Mortgage Finance - 1.0% | |||
Astoria Financial Corp. | 505,600 | 15,396 | |
Countrywide Financial Corp. | 967,400 | 36,839 | |
Golden West Financial Corp., Delaware | 7,481,180 | 555,104 | |
Hudson City Bancorp, Inc. | 1,781,000 | 23,741 | |
631,080 | |||
TOTAL FINANCIALS | 11,770,368 | ||
HEALTH CARE - 10.0% | |||
Biotechnology - 3.8% | |||
Alexion Pharmaceuticals, Inc. (a) | 228,400 | 8,250 | |
Amylin Pharmaceuticals, Inc. (a) | 2,191,764 | 108,207 | |
Arena Pharmaceuticals, Inc. (a)(e) | 2,989,583 | 34,619 | |
Celgene Corp. (a) | 4,734,750 | 224,569 | |
Genentech, Inc. (a) | 19,033,100 | 1,556,908 | |
Genmab AS (a) | 584,300 | 18,839 | |
Gilead Sciences, Inc. (a) | 5,526,001 | 326,918 | |
Hutchison China Meditech Ltd. | 441 | 2 | |
MannKind Corp. (a) | 3,043,028 | 64,847 | |
MannKind Corp. warrants 8/3/10 (a)(g) | 304,338 | 3,980 | |
Medarex, Inc. (a) | 5,647,464 | 54,272 | |
Common Stocks - continued | |||
Shares | Value (Note 1) (000s) | ||
HEALTH CARE - continued | |||
Biotechnology - continued | |||
Myogen, Inc. (a) | 817,276 | $ 23,701 | |
Renovis, Inc. (a) | 264,900 | 4,056 | |
Tanox, Inc. (a) | 1,050,790 | 14,532 | |
Theravance, Inc. (a) | 274,800 | 6,287 | |
ViaCell, Inc. (a) | 689,400 | 3,137 | |
2,453,124 | |||
Health Care Equipment & Supplies - 1.5% | |||
Alcon, Inc. | 476,000 | 46,910 | |
Becton, Dickinson & Co. | 462,600 | 28,279 | |
C.R. Bard, Inc. | 1,473,640 | 107,959 | |
Conceptus, Inc. (a) | 726,521 | 9,910 | |
DENTSPLY International, Inc. | 2,659,337 | 161,156 | |
DexCom, Inc. (a) | 894,320 | 12,145 | |
Gen-Probe, Inc. (a) | 1,838,600 | 99,248 | |
Intuitive Surgical, Inc. (a) | 454,119 | 53,572 | |
Kyphon, Inc. (a)(e) | 2,458,500 | 94,308 | |
NeuroMetrix, Inc. (a) | 312,000 | 9,504 | |
Nobel Biocare Holding AG (Switzerland) | 191,915 | 45,565 | |
Northstar Neuroscience, Inc. | 785,671 | 8,155 | |
NuVasive, Inc. (a) | 768,263 | 14,005 | |
ResMed, Inc. (a) | 2,208,100 | 103,670 | |
St. Jude Medical, Inc. (a) | 3,786,800 | 122,768 | |
Viasys Healthcare, Inc. (a) | 819,300 | 20,974 | |
938,128 | |||
Health Care Providers & Services - 1.3% | |||
Aetna, Inc. | 9,570,727 | 382,159 | |
American Retirement Corp. (a) | 311,800 | 10,218 | |
Health Net, Inc. (a) | 690,970 | 31,211 | |
Nighthawk Radiology Holdings, Inc. | 112,200 | 2,013 | |
Patterson Companies, Inc. (a) | 6,610,876 | 230,918 | |
UnitedHealth Group, Inc. | 4,004,940 | 179,341 | |
VCA Antech, Inc. (a) | 1,011,670 | 32,303 | |
Visicu, Inc. | 100,700 | 1,777 | |
869,940 | |||
Health Care Technology - 0.0% | |||
Cerner Corp. (a) | 42,400 | 1,573 | |
Vital Images, Inc. (a) | 545,501 | 13,474 | |
15,047 | |||
Common Stocks - continued | |||
Shares | Value (Note 1) (000s) | ||
HEALTH CARE - continued | |||
Life Sciences Tools & Services - 0.2% | |||
Covance, Inc. (a) | 594,900 | $ 36,420 | |
Exelixis, Inc. (a) | 1,112,900 | 11,185 | |
Pharmaceutical Product Development, Inc. | 422,400 | 14,835 | |
Thermo Electron Corp. (a) | 2,002,000 | 72,552 | |
134,992 | |||
Pharmaceuticals - 3.2% | |||
Aspreva Pharmaceuticals Corp. (a)(e) | 2,233,900 | 60,628 | |
AstraZeneca PLC sponsored ADR | 2,875,200 | 171,994 | |
Barr Pharmaceuticals, Inc. (a) | 96,000 | 4,578 | |
Johnson & Johnson | 3,468,100 | 207,809 | |
Merck & Co., Inc. | 5,792,850 | 211,034 | |
New River Pharmaceuticals, Inc. (a) | 364,400 | 10,385 | |
Novartis AG sponsored ADR | 5,436,800 | 293,152 | |
Roche Holding AG (participation certificate) | 5,526,718 | 913,660 | |
Sanofi-Aventis sponsored ADR | 3,048,111 | 148,443 | |
Schering-Plough Corp. | 529,000 | 10,067 | |
Sepracor, Inc. (a) | 124,100 | 7,091 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 1,296,837 | 40,967 | |
2,079,808 | |||
TOTAL HEALTH CARE | 6,491,039 | ||
INDUSTRIALS - 8.9% | |||
Aerospace & Defense - 0.8% | |||
Armor Holdings, Inc. (a) | 230,200 | 12,622 | |
L-3 Communications Holdings, Inc. | 11,800 | 890 | |
Lockheed Martin Corp. | 4,677,895 | 335,592 | |
Northrop Grumman Corp. | 726,700 | 46,552 | |
Precision Castparts Corp. | 257,800 | 15,406 | |
Raytheon Co. warrants 6/16/11 (a) | 132,461 | 1,676 | |
The Boeing Co. | 1,257,774 | 103,024 | |
United Technologies Corp. | 547,000 | 34,691 | |
550,453 | |||
Air Freight & Logistics - 1.2% | |||
C.H. Robinson Worldwide, Inc. (e) | 9,353,349 | 498,534 | |
Expeditors International of Washington, Inc. | 185,920 | 10,413 | |
FedEx Corp. | 638,800 | 74,650 | |
United Parcel Service, Inc. Class B | 2,326,400 | 191,533 | |
775,130 | |||
Common Stocks - continued | |||
Shares | Value (Note 1) (000s) | ||
INDUSTRIALS - continued | |||
Airlines - 0.6% | |||
Republic Airways Holdings, Inc. (a) | 973,597 | $ 16,571 | |
Ryanair Holdings PLC sponsored ADR (a) | 4,810,471 | 253,608 | |
Southwest Airlines Co. | 5,312,300 | 86,962 | |
357,141 | |||
Commercial Services & Supplies - 0.5% | |||
Aramark Corp. Class B | 2,966,800 | 98,231 | |
Brady Corp. Class A | 1,054,800 | 38,859 | |
Cendant Corp. | 817,700 | 13,320 | |
Monster Worldwide, Inc. (a) | 408,441 | 17,424 | |
Robert Half International, Inc. | 3,214,749 | 135,019 | |
The Brink's Co. | 691,200 | 38,991 | |
341,844 | |||
Construction & Engineering - 0.3% | |||
Jacobs Engineering Group, Inc. (a) | 2,288,066 | 182,222 | |
URS Corp. (a) | 397,700 | 16,703 | |
198,925 | |||
Electrical Equipment - 1.0% | |||
Cooper Industries Ltd. Class A | 4,194,447 | 389,748 | |
Evergreen Solar, Inc. (a) | 376,740 | 4,890 | |
Q-Cells AG | 1,092,800 | 91,927 | |
Roper Industries, Inc. | 709,100 | 33,150 | |
SolarWorld AG (d) | 982,000 | 61,640 | |
Suntech Power Holdings Co. Ltd. sponsored ADR | 1,772,000 | 50,059 | |
Ultralife Batteries, Inc. (a)(d) | 704,358 | 7,135 | |
638,549 | |||
Industrial Conglomerates - 0.8% | |||
3M Co. | 5,339,092 | 431,238 | |
General Electric Co. | 3,700 | 122 | |
Hutchison Whampoa Ltd. | 8,601,000 | 78,521 | |
Siemens AG sponsored ADR | 327,600 | 28,442 | |
538,323 | |||
Machinery - 2.6% | |||
Bucyrus International, Inc. Class A | 424,607 | 21,443 | |
Caterpillar, Inc. | 3,413,603 | 254,245 | |
Cummins, Inc. | 1,101,300 | 134,634 | |
Danaher Corp. | 8,978,009 | 577,466 | |
IDEX Corp. (e) | 2,673,039 | 126,167 | |
Common Stocks - continued | |||
Shares | Value (Note 1) (000s) | ||
INDUSTRIALS - continued | |||
Machinery - continued | |||
Joy Global, Inc. | 4,018,925 | $ 209,346 | |
PACCAR, Inc. | 4,082,857 | 336,346 | |
1,659,647 | |||
Marine - 0.1% | |||
American Commercial Lines, Inc. | 956,180 | 57,610 | |
Road & Rail - 0.8% | |||
Canadian National Railway Co. | 4,601,800 | 201,007 | |
CSX Corp. | 105,800 | 7,453 | |
Heartland Express, Inc. | 2,216,884 | 39,660 | |
Knight Transportation, Inc. | 1,817,326 | 36,710 | |
Landstar System, Inc. | 2,642,352 | 124,798 | |
Norfolk Southern Corp. | 652,900 | 34,747 | |
Swift Transportation Co., Inc. (a) | 2,007,966 | 63,773 | |
508,148 | |||
Trading Companies & Distributors - 0.2% | |||
Fastenal Co. | 1,589,505 | 64,041 | |
Mitsui & Co. Ltd. | 6,194,000 | 87,477 | |
151,518 | |||
TOTAL INDUSTRIALS | 5,777,288 | ||
INFORMATION TECHNOLOGY - 17.2% | |||
Communications Equipment - 1.5% | |||
CommScope, Inc. (a) | 285,200 | 8,961 | |
Corning, Inc. (a) | 4,443,000 | 107,476 | |
ECI Telecom Ltd. (a) | 2,594,100 | 20,908 | |
F5 Networks, Inc. (a) | 724,060 | 38,723 | |
Harris Corp. | 91,000 | 3,777 | |
InterDigital Communication Corp. (a) | 454,000 | 15,849 | |
Motorola, Inc. | 1,596,962 | 32,179 | |
Nice Systems Ltd. sponsored ADR (a) | 294,000 | 8,273 | |
Nokia Corp. sponsored ADR | 12,459,700 | 252,434 | |
QUALCOMM, Inc. | 12,066,200 | 483,493 | |
TANDBERG Television ASA (a) | 608,052 | 10,087 | |
982,160 | |||
Computers & Peripherals - 3.1% | |||
Apple Computer, Inc. (a) | 12,419,436 | 709,398 | |
Dell, Inc. (a) | 1,605,300 | 39,185 | |
Hewlett-Packard Co. | 31,916,300 | 1,011,108 | |
Common Stocks - continued | |||
Shares | Value (Note 1) (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Computers & Peripherals - continued | |||
Network Appliance, Inc. (a) | 5,685,039 | $ 200,682 | |
Seagate Technology | 1,372,000 | 31,062 | |
1,991,435 | |||
Electronic Equipment & Instruments - 0.8% | |||
Agilent Technologies, Inc. (a) | 299,000 | 9,436 | |
Amphenol Corp. Class A | 2,214,030 | 123,897 | |
FLIR Systems, Inc. (a) | 974,133 | 21,489 | |
Hon Hai Precision Industry Co. Ltd. (Foxconn) | 16,160,238 | 99,821 | |
Identix, Inc. (a) | 179,500 | 1,255 | |
Itron, Inc. (a) | 630,500 | 37,363 | |
Mettler-Toledo International, Inc. (a) | 1,031,900 | 62,502 | |
Motech Industries, Inc. | 3,562,972 | 83,851 | |
National Instruments Corp. | 2,063,477 | 56,539 | |
Viisage Technology, Inc. (a) | 68,300 | 1,035 | |
497,188 | |||
Internet Software & Services - 5.1% | |||
Akamai Technologies, Inc. (a) | 5,891,279 | 213,205 | |
Google, Inc. Class A (sub. vtg.) (a) | 5,820,280 | 2,440,618 | |
LoopNet, Inc. (a) | 121,300 | 2,257 | |
NetEase.com, Inc. sponsored ADR (a)(d) | 1,524,500 | 34,042 | |
Tom Online, Inc. sponsored ADR (a)(d) | 557,200 | 10,754 | |
WebSideStory, Inc. (a)(e) | 1,209,103 | 14,751 | |
Yahoo!, Inc. (a) | 18,301,570 | 603,952 | |
3,319,579 | |||
IT Services - 1.7% | |||
Alliance Data Systems Corp. (a) | 2,267,700 | 133,386 | |
CheckFree Corp. (a) | 1,630,598 | 80,812 | |
Cognizant Technology Solutions Corp. Class A (a) | 3,874,941 | 261,055 | |
First Data Corp. | 3,647,900 | 164,301 | |
Global Payments, Inc. | 151,100 | 7,336 | |
Infosys Technologies Ltd. sponsored ADR | 747,300 | 57,101 | |
Mastercard, Inc. Class A | 2,583,500 | 124,008 | |
MoneyGram International, Inc. | 513,100 | 17,420 | |
Paychex, Inc. | 1,734,700 | 67,619 | |
SRA International, Inc. Class A (a)(e) | 3,726,200 | 99,229 | |
The BISYS Group, Inc. (a) | 942,400 | 12,911 | |
VeriFone Holdings, Inc. (a) | 2,970,800 | 90,550 | |
1,115,728 | |||
Common Stocks - continued | |||
Shares | Value (Note 1) (000s) | ||
INFORMATION TECHNOLOGY - continued | |||
Office Electronics - 0.1% | |||
Canon, Inc. (d) | 445,250 | $ 21,749 | |
Zebra Technologies Corp. Class A (a) | 233,800 | 7,987 | |
29,736 | |||
Semiconductors & Semiconductor Equipment - 3.7% | |||
Applied Materials, Inc. | 1,496,000 | 24,355 | |
ASML Holding NV (NY Shares) (a) | 3,044,200 | 61,554 | |
Broadcom Corp. Class A (a) | 6,479,174 | 194,699 | |
FormFactor, Inc. (a) | 1,349,800 | 60,242 | |
Freescale Semiconductor, Inc. Class A (a) | 168,800 | 4,895 | |
Hittite Microwave Corp. | 704,791 | 25,485 | |
Lam Research Corp. (a) | 4,273,386 | 199,225 | |
Linear Technology Corp. | 826,900 | 27,693 | |
Marvell Technology Group Ltd. (a)(e) | 17,947,000 | 795,591 | |
MathStar, Inc. | 304,900 | 1,805 | |
MEMC Electronic Materials, Inc. (a) | 2,564,100 | 96,154 | |
Microchip Technology, Inc. | 727,200 | 24,398 | |
Monolithic Power Systems, Inc. (a) | 863,122 | 10,211 | |
National Semiconductor Corp. | 4,726,700 | 112,732 | |
Renewable Energy Corp. AS | 1,355,775 | 19,387 | |
Saifun Semiconductors Ltd. | 685,000 | 19,625 | |
Samsung Electronics Co. Ltd. | 1,073,849 | 682,546 | |
SiRF Technology Holdings, Inc. (a) | 1,436,618 | 46,288 | |
Zoran Corp. (a) | 159,200 | 3,875 | |
2,410,760 | |||
Software - 1.2% | |||
Adobe Systems, Inc. (a) | 6,226,120 | 189,025 | |
Amdocs Ltd. (a) | 331,200 | 12,122 | |
Citrix Systems, Inc. (a) | 1,262,411 | 50,673 | |
ECtel Ltd. (a) | 64,022 | 282 | |
Informatica Corp. (a) | 627,600 | 8,259 | |
Intuit, Inc. (a) | 4,003,190 | 241,753 | |
NAVTEQ Corp. (a) | 2,160,600 | 96,536 | |
NDS Group PLC sponsored ADR (a) | 274,400 | 12,773 | |
Salesforce.com, Inc. (a) | 1,684,200 | 44,901 | |
SAP AG sponsored ADR | 2,484,800 | 130,502 | |
786,826 | |||
TOTAL INFORMATION TECHNOLOGY | 11,133,412 | ||
Common Stocks - continued | |||
Shares | Value (Note 1) (000s) | ||
MATERIALS - 6.8% | |||
Chemicals - 1.3% | |||
Arkema sponsored ADR (a) | 84,361 | $ 3,261 | |
Bayer AG | 2,824,100 | 129,654 | |
Celanese Corp. Class A | 941,600 | 19,227 | |
Ecolab, Inc. | 6,361,929 | 258,167 | |
Lonza Group AG | 92,850 | 6,368 | |
Monsanto Co. | 1,258,700 | 105,970 | |
Praxair, Inc. | 5,589,572 | 301,837 | |
Wacker Chemie AG | 177,800 | 19,139 | |
843,623 | |||
Construction Materials - 0.0% | |||
Rinker Group Ltd. | 1,965,958 | 23,946 | |
Metals & Mining - 5.5% | |||
Agnico-Eagle Mines Ltd. | 1,419,600 | 47,066 | |
Allegheny Technologies, Inc. | 435,937 | 30,184 | |
Anglo American PLC ADR | 13,100,804 | 267,780 | |
Bema Gold Corp. (a)(e) | 24,609,400 | 122,793 | |
BHP Billiton Ltd. sponsored ADR | 10,854,030 | 467,483 | |
Companhia Vale do Rio Doce sponsored ADR | 797,318 | 19,168 | |
Compass Minerals International, Inc. | 705,900 | 17,612 | |
Eldorado Gold Corp. (a) | 9,022,400 | 43,807 | |
First Quantum Minerals Ltd. | 822,900 | 36,888 | |
Gabriel Resources Ltd. (a) | 8,498,100 | 22,001 | |
Gerdau SA sponsored ADR | 3,889,925 | 57,999 | |
Glamis Gold Ltd. (a)(e) | 11,243,516 | 426,252 | |
Goldcorp, Inc. | 10,839,078 | 326,736 | |
IPSCO, Inc. | 1,801,060 | 172,426 | |
Ivanhoe Mines Ltd. (a) | 5,199,800 | 35,215 | |
Lihir Gold Ltd. (a) | 23,175,852 | 49,603 | |
Meridian Gold, Inc. (a) | 1,261,400 | 39,798 | |
New Gold, Inc. (a)(e) | 1,416,100 | 12,610 | |
New Gold, Inc. warrants 2/23/08 (a) | 144,500 | 246 | |
Newcrest Mining Ltd. | 1,849,600 | 28,975 | |
Newmont Mining Corp. | 9,456,949 | 500,556 | |
Novagold Resources, Inc. (a) | 410,300 | 5,260 | |
Nucor Corp. | 3,405,900 | 184,770 | |
Oregon Steel Mills, Inc. (a) | 479,500 | 24,291 | |
POSCO sponsored ADR | 2,349,300 | 157,168 | |
Rio Tinto PLC (Reg.) | 7,540,709 | 395,340 | |
Shore Gold, Inc. (a) | 944,400 | 4,205 | |
Common Stocks - continued | |||
Shares | Value (Note 1) (000s) | ||
MATERIALS - continued | |||
Metals & Mining - continued | |||
Steel Dynamics, Inc. | 785,516 | $ 51,640 | |
US Gold Corp. (subscription receipt) (a)(g) | 2,083,500 | 20,933 | |
3,568,805 | |||
TOTAL MATERIALS | 4,436,374 | ||
TELECOMMUNICATION SERVICES - 3.1% | |||
Diversified Telecommunication Services - 0.5% | |||
AT&T, Inc. | 4,642,656 | 129,484 | |
BT Group PLC sponsored ADR | 677,000 | 29,984 | |
Qwest Communications International, Inc. (a) | 12,996,600 | 105,142 | |
Telenor ASA | 2,339,800 | 28,289 | |
292,899 | |||
Wireless Telecommunication Services - 2.6% | |||
America Movil SA de CV Series L sponsored ADR | 29,747,500 | 989,402 | |
American Tower Corp. Class A (a) | 1,316,650 | 40,974 | |
China Mobile (Hong Kong) Ltd. sponsored ADR | 2,717,300 | 77,742 | |
Hutchison Telecommunications International Ltd. sponsored ADR (a) | 752,500 | 17,992 | |
Leap Wireless International, Inc. (a) | 723,169 | 34,314 | |
NII Holdings, Inc. (a)(e) | 9,376,394 | 528,641 | |
1,689,065 | |||
TOTAL TELECOMMUNICATION SERVICES | 1,981,964 | ||
UTILITIES - 0.7% | |||
Electric Utilities - 0.2% | |||
Exelon Corp. | 740,100 | 42,060 | |
FirstEnergy Corp. | 869,200 | 47,119 | |
89,179 | |||
Gas Utilities - 0.1% | |||
Southern Union Co. | 2,854,630 | 77,246 | |
Independent Power Producers & Energy Traders - 0.3% | |||
AES Corp. (a) | 7,918,400 | 146,094 | |
International Power PLC | 2,878,200 | 15,145 | |
TXU Corp. | 755,600 | 45,177 | |
206,416 | |||
Common Stocks - continued | |||
Shares | Value (Note 1) (000s) | ||
UTILITIES - continued | |||
Multi-Utilities - 0.1% | |||
National Grid PLC | 5,330,800 | $ 57,679 | |
Veolia Environnement | 336,300 | 17,384 | |
75,063 | |||
TOTAL UTILITIES | 447,904 | ||
TOTAL COMMON STOCKS (Cost $45,595,709) | 58,722,665 | ||
Convertible Preferred Stocks - 0.1% | |||
CONSUMER DISCRETIONARY - 0.1% | |||
Automobiles - 0.1% | |||
General Motors Corp. Series B, 5.25% (cost $46,786) | 2,820,000 | 51,634 | |
Money Market Funds - 10.5% | |||
Fidelity Cash Central Fund, 5.11% (b) | 6,488,975,727 | 6,488,976 | |
Fidelity Securities Lending Cash Central Fund, 5.14% (b)(c) | 325,506,150 | 325,506 | |
TOTAL MONEY MARKET FUNDS (Cost $6,814,482) | 6,814,482 | ||
TOTAL INVESTMENT PORTFOLIO - 101.0% (Cost $52,456,977) | 65,588,781 | ||
NET OTHER ASSETS - (1.0)% | (668,088) | ||
NET ASSETS - 100% | $ 64,920,693 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
(f) 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 $5,918,000 or 0.0% of net assets. |
(g) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $66,147,000 or 0.1% of net assets. |
Additional information on each holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
MannKind Corp. warrants 8/3/10 | 8/3/05 | $ 8 |
The Weinstein Co. Holdings, LLC Class A-1 | 10/19/05 | $ 41,234 |
US Gold Corp. (subscription receipt) | 2/8/06 | $ 9,376 |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the fund from the affiliated Central funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 153,819 |
Fidelity Securities Lending Cash Central Fund | 4,242 |
Total | $ 158,061 |
Other Affiliated Issuers |
An affiliated company is a company in which the fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliates | Value, | Purchases | Sales Proceeds | Dividend Income | Value, end |
Altiris, Inc. | $ 44,317 | $ - | $ 49,043 | $ - | $ - |
Anadys Pharmaceuticals, Inc. | 14,939 | 588 | 8,779 | - | - |
Arena Pharmaceuticals, Inc. | 34,354 | 9,652 | - | - | 34,619 |
Aspreva Pharmaceuticals Corp. | - | 62,450 | - | - | 60,628 |
Bema Gold Corp. | 45,577 | 37,840 | - | - | 122,793 |
Blackrock Ventures, Inc. | 89,853 | 3,878 | 202,622 | - | - |
C.H. Robinson Worldwide, Inc. | 342,379 | 33,896 | 28,981 | 2,396 | 498,534 |
Chipotle Mexican Grill, Inc. Class A | - | 66,954 | 1,857 | - | 66,740 |
DENTSPLY International, Inc. | 223,556 | - | 84,662 | 434 | - |
Eagle Materials, Inc. | 65,585 | 25,706 | 95,004 | 191 | - |
Everest Re Group Ltd. | 372,110 | 17,861 | 77,488 | 847 | - |
Foxhollow Technologies, Inc. | 52,386 | - | 50,847 | - | - |
Glamis Gold Ltd. | 263,267 | 72,523 | 8,526 | - | 426,252 |
IDEX Corp. | 60,530 | 56,672 | - | 533 | 126,167 |
Intuitive Surgical, Inc. | 277,909 | 13,026 | 222,597 | - | - |
iVillage, Inc. | 31,794 | - | 33,697 | - | - |
Kyphon, Inc. | 101,181 | 6,498 | 5,996 | - | 94,308 |
Mariner Energy, Inc. | 32,788 | - | 35,643 | - | - |
Marvell Technology Group Ltd. | 1,097,866 | 27,387 | 116,927 | - | 795,591 |
Merge Technologies, Inc. | 35,964 | - | 24,868 | - | - |
New Gold, Inc. | 5,009 | 5,401 | - | - | 12,610 |
NII Holdings, Inc. | 391,001 | 60,586 | 37,200 | - | 528,641 |
Panera Bread Co. Class A | 191,119 | - | - | - | 195,658 |
Patterson Companies, Inc. | 353,807 | - | 134,775 | - | - |
Republic Airways Holdings, Inc. | 34,351 | - | 18,313 | - | - |
Resources Connection, Inc. | 69,522 | - | 69,084 | - | - |
Seattle Genetics, Inc. | 11,693 | - | 12,469 | - | - |
SRA International, Inc. Class A | 113,798 | - | - | - | 99,229 |
Ultralife Batteries, Inc. | 12,819 | - | 3,959 | - | - |
WebSideStory, Inc. | 15,418 | 6,872 | - | - | 14,751 |
Wet Seal, Inc. Class A | 18,089 | 3,476 | 12,931 | - | - |
Total | $ 4,402,981 | $ 511,266 | $ 1,336,268 | $ 4,401 | $ 3,076,521 |
Other Information |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: |
United States of America | 73.5% |
Canada | 6.1% |
United Kingdom | 3.4% |
Bermuda | 2.5% |
Switzerland | 2.3% |
Netherlands Antilles | 1.7% |
Mexico | 1.6% |
Japan | 1.4% |
Korea (South) | 1.3% |
Ireland | 1.1% |
Others (individually less than 1%) | 5.1% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amount) | June 30, 2006 | |
Assets | ||
Investment in securities, at value (including securities loaned of $321,789) - See accompanying schedule: Unaffiliated issuers (cost $43,839,577) | $ 55,697,778 | |
Affiliated Central Funds (cost $6,814,482) | 6,814,482 | |
Other affiliated issuers (cost $1,802,918) | 3,076,521 | |
Total Investments (cost $52,456,977) | $ 65,588,781 | |
Cash | 2 | |
Foreign currency held at value (cost $2,085) | 2,085 | |
Receivable for investments sold | 293,263 | |
Receivable for fund shares sold | 70,258 | |
Dividends receivable | 45,251 | |
Interest receivable | 30,514 | |
Prepaid expenses | 102 | |
Other receivables | 2,340 | |
Total assets | 66,032,596 | |
Liabilities | ||
Payable for investments purchased | $ 678,198 | |
Payable for fund shares redeemed | 58,198 | |
Accrued management fee | 37,387 | |
Other affiliated payables | 10,680 | |
Other payables and accrued expenses | 1,934 | |
Collateral on securities loaned, at value | 325,506 | |
Total liabilities | 1,111,903 | |
Net Assets | $ 64,920,693 | |
Net Assets consist of: | ||
Paid in capital | $ 46,092,393 | |
Undistributed net investment income | 169,154 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 5,527,564 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 13,131,582 | |
Net Assets, for 983,165 shares outstanding | $ 64,920,693 | |
Net Asset Value, offering price and redemption price per share ($64,920,693 ÷ 983,165 shares) | $ 66.03 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
Amounts in thousands | Six months ended June 30, 2006 | |
Investment Income | ||
Dividends (including $4,401 received from other affiliated issuers) | $ 291,596 | |
Interest | 1,984 | |
Income from affiliated Central Funds | 158,061 | |
Total income | 451,641 | |
Expenses | ||
Management fee | $ 182,652 | |
Performance adjustment | 43,466 | |
Transfer agent fees | 56,214 | |
Accounting and security lending fees | 1,340 | |
Independent trustees' compensation | 122 | |
Appreciation in deferred trustee compensation account | 60 | |
Custodian fees and expenses | 2,673 | |
Registration fees | 703 | |
Audit | 227 | |
Legal | 384 | |
Interest | 1 | |
Miscellaneous | 1,161 | |
Total expenses before reductions | 289,003 | |
Expense reductions | (4,498) | 284,505 |
Net investment income (loss) | 167,136 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of foreign taxes of $280) | 5,037,719 | |
Other affiliated issuers | 580,188 | |
Foreign currency transactions | 1,165 | |
Total net realized gain (loss) | 5,619,072 | |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of decrease in deferred foreign taxes of $234) | (3,433,073) | |
Assets and liabilities in foreign currencies | (161) | |
Total change in net unrealized appreciation (depreciation) | (3,433,234) | |
Net gain (loss) | 2,185,838 | |
Net increase (decrease) in net assets resulting from operations | $ 2,352,974 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
Amounts in thousands | Six months ended June 30, | Year ended |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $ 167,136 | $ 232,458 |
Net realized gain (loss) | 5,619,072 | 3,808,762 |
Change in net unrealized appreciation (depreciation) | (3,433,234) | 3,905,671 |
Net increase (decrease) in net assets resulting | 2,352,974 | 7,946,891 |
Distributions to shareholders from net investment income | - | (209,102) |
Distributions to shareholders from net realized gain | (1,219,235) | (880,727) |
Total distributions | (1,219,235) | (1,089,829) |
Share transactions | 8,333,651 | 14,203,241 |
Reinvestment of distributions | 1,193,080 | 1,065,991 |
Cost of shares redeemed | (5,882,505) | (6,460,467) |
Net increase (decrease) in net assets resulting from share transactions | 3,644,226 | 8,808,765 |
Total increase (decrease) in net assets | 4,777,965 | 15,665,827 |
Net Assets | ||
Beginning of period | 60,142,728 | 44,476,901 |
End of period (including undistributed net investment income of $169,154 and undistributed net investment income of $14,566, respectively) | $ 64,920,693 | $ 60,142,728 |
Other Information Shares | ||
Sold | 125,297 | 236,315 |
Issued in reinvestment of distributions | 18,168 | 16,305 |
Redeemed | (89,007) | (107,831) |
Net increase (decrease) | 54,458 | 144,789 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights
Six months ended | Years ended December 31, | |||||
2006 | 2005 | 2004 | 2003 | 2002 | 2001 | |
Selected Per-Share Data | ||||||
Net asset value, beginning of period | $ 64.76 | $ 56.74 | $ 49.35 | $ 38.60 | $ 42.77 | $ 49.18 |
Income from Investment Operations | ||||||
Net investment income (loss) E | .17 | .27 | .04 | - G | .06 | .21 |
Net realized and unrealized gain (loss) | 2.38 | 8.95 | 7.40 | 10.79 | (4.18) | (6.40) |
Total from investment operations | 2.55 | 9.22 | 7.44 | 10.79 | (4.12) | (6.19) |
Distributions from net investment income | - | (.23) | (.05) | (.04) | (.05) | (.22) |
Distributions from net realized gain | (1.28) | (.97) | - | - | - | - |
Total distributions | (1.28) | (1.20) | (.05) | (.04) | (.05) | (.22) |
Net asset value, end of period | $ 66.03 | $ 64.76 | $ 56.74 | $ 49.35 | $ 38.60 | $ 42.77 |
Total Return B, C, D | 3.95% | 16.23% | 15.07% | 27.95% | (9.63)% | (12.59)% |
Ratios to Average Net Assets F | ||||||
Expenses before reductions | .90% A | .91% | .94% | 1.00% | 1.03% | .96% |
Expenses net of fee waivers, if any | .90% A | .91% | .94% | 1.00% | 1.03% | .96% |
Expenses net of all reductions | .88% A | .88% | .92% | .98% | .99% | .91% |
Net investment income (loss) | .52% A | .46% | .08% | .01% | .14% | .49% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $ 64,921 | $ 60,143 | $ 44,477 | $ 35,933 | $ 27,586 | $ 32,159 |
Portfolio turnover rate | 78% A | 60% | 64% | 67% | 80% | 141% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the former sales charges.
E Calculated based on average shares outstanding during the period.
F Expense ratios reflect operating expenses of the fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the fund.
G Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended June 30, 2006
(Amounts in thousands except ratios)
1. Significant Accounting Policies.
Fidelity Contrafund (the Fund) is a fund of Fidelity Contrafund (the trust) and is authorized to issue an unlimited number of shares. Effective the close of business on April 28, 2006, the Fund was closed to most new accounts. 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 Fund may invest in affiliated money market central funds (Money Market Central Funds), which are open-end investment companies available to investment companies and other accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued and net asset value (NAV) per share is calculated (NAV calculation) as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Debt securities, including restricted securities, for which quotations are readily available, are valued by independent pricing services or by dealers who make markets in such securities. Pricing services consider yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices. Investments in open-end mutual funds are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or do not accurately reflect fair value, valuations may be determined in accordance with procedures adopted by the Board of Trustees. For example, when developments occur between the close of a market and the close of the NYSE that may materially affect the value of some or all of the securities, or when trading in a security is halted, those securities may be fair valued. Factors used in the determination of fair value may include monitoring news to identify significant market or security specific events such as changes in the value of U.S. securities markets, reviewing developments in foreign markets and evaluating the performance of ADRs, futures contracts and exchange-traded funds. Because the Fund's utilization of fair value pricing depends on market activity, the frequency with which fair
Semiannual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
1. Significant Accounting Policies - continued
Security Valuation - continued
value pricing is used can not be predicted and may be utilized to a significant extent. The value of securities used for NAV calculation under fair value pricing may differ from published prices for the same securities.
Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. 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 among each Fund in the trust.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees must defer receipt of a portion of, and may elect to defer receipt of an additional portion of, their annual compensation. Prior to July 1, 2006, deferred amounts were treated as though equivalent dollar amounts had been invested in a
Semiannual Report
1. Significant Accounting Policies - continued
Deferred Trustee Compensation - continued
cross-section of other Fidelity funds, and were marked-to-market. Effective July 1, 2006, deferred amounts will be directly invested in a cross-section of Fidelity funds. Deferred amounts remain in the Fund until distributed in accordance with the plan.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required in the accompanying financial statements. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
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. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to short-term capital gains, foreign currency transactions, passive foreign investment companies (PFIC), market discount, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 14,092,000 | |
Unrealized depreciation | (1,026,802) | |
Net unrealized appreciation (depreciation) | $ 13,065,198 | |
Cost for federal income tax purposes | $ 52,523,583 |
New Accounting Pronouncement. In July 2006, Financial Accounting Standards Board Interpretation No. 48, Accounting for Uncertainty in Income Taxes - an interpretation of FASB Statement 109 (FIN 48) was issued and is effective for fiscal years beginning after December 15, 2006. FIN 48 sets forth a threshold for financial statement recognition, measurement and disclosure of a tax position taken or expected to be taken on a tax return. Management is currently evaluating the impact, if any, the adoption of FIN 48 will have on the Fund's net assets and results of operations.
Semiannual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
2. Operating Policies.
Repurchase Agreements. FMR has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
3. Purchases and Sales of Investments.
Purchases and sales of securities including the Central Funds, other than short-term securities and U.S. government securities, aggregated $24,764,770 and $22,401,950, respectively.
4. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and a group fee rate that averaged ..27% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ±.20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the Fund's relative investment performance as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .70% of the Fund's average net assets.
Semiannual Report
4. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, is the Fund's transfer, dividend disbursing and shareholder servicing agent. 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 shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to an annualized rate of .17% of average net assets.
Accounting and Security Lending Fees. FSC maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Affiliated Central Funds. The Fund may invest in Money Market Central Funds which seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
The Money Market Central Funds do not pay a management fee.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $107 for the period.
5. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $4.2 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro rata portion of the line of credit, which amounts to $90 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
6. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to
Semiannual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
6. Security Lending - continued
the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from affiliated central funds. Net income from lending portfolio securities during the period amounted to $4,242.
7. Bank Borrowings.
The Fund is permitted to have bank borrowings for temporary or emergency purposes to fund shareholder redemptions. The Fund has established borrowing arrangements with certain banks. The interest rate on the borrowings is the bank's base rate, as revised from time to time. The average daily loan balance during the period for which loans were outstanding amounted to $5,924. The weighted average interest rate was 5.00%. At period end, there were no bank borrowings outstanding.
8. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $3,344 for the period. In addition, through arrangements with the Fund's custodian and transfer agent, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody and transfer agent expenses by $9 and $1,145, respectively.
9. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Contrafund and the Shareholders of Fidelity Contrafund:
In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Contrafund (a fund of Fidelity Contrafund) at June 30, 2006, and the results of its operations, the changes in its net assets and the financial highlights for the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity Contrafund's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at June 30, 2006 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
August 14, 2006
Semiannual Report
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Contrafund
On January 19, 2006, the Board of Trustees, including the Independent Trustees (together, the Board), voted to approve a general research services agreement (the Agreement) between FMR, FMR Co., Inc. (FMRC), Fidelity Investments Money Management, Inc. (FIMM), and Fidelity Research & Analysis Company (FRAC) (together, the Investment Advisers) for the fund, effective January 20, 2006, pursuant to which FRAC may provide general research and investment advisory support services to FMRC and FIMM. The Board considered that it has approved previously various sub-advisory agreements for the fund with affiliates of FMR that allow FMR to obtain research, non-discretionary advice, or discretionary portfolio management at no additional expense to the fund. The Board, assisted by the advice of fund counsel and independent Trustees' counsel, considered a broad range of information and determined that it would be beneficial for the fund to access the research and investment advisory support services supplied by FRAC at no additional expense to the fund.
The Board reached this determination in part because the new arrangement will involve no changes in (i) the contractual terms of and fees payable under the fund's management contract or sub-advisory agreements; (ii) the investment process or strategies employed in the management of the fund's assets; (iii) the nature or level of services provided under the fund's management contract or sub-advisory agreements; (iv) the day-to-day management of the fund or the persons primarily responsible for such management; or (v) the ultimate control or beneficial ownership of FMR, FMRC, or FIMM. The Board also considered that the establishment of the Agreement would not necessitate prior shareholder approval of the Agreement or result in an assignment and termination of the fund's management contract or sub-advisory agreements under the Investment Company Act of 1940.
Because the Board was approving an arrangement with FRAC under which the fund will not bear any additional management fees or expenses and under which the fund's portfolio manager would not change, it did not consider the fund's investment performance, competitiveness of management fee and total expenses, costs of services and profitability, or economies of scale to be significant factors in its decision.
In connection with its future renewal of the fund's management contract and sub-advisory agreements, the Board will consider: (i) the nature, extent, and quality of services provided to the fund, including shareholder and administrative services and investment performance; (ii) the competitiveness of the fund's management fee and total expenses; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders; and (iv) whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies.
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Based on its evaluation of all of the conclusions noted above, and after considering all material factors, the Board ultimately concluded that the fund's Agreement is fair and reasonable, and that the fund's Agreement should be approved.
Semiannual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
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Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555
Press
1 For mutual fund and brokerage trading.
2 For quotes.*
3 For account balances and holdings.
4 To review orders and mutual
fund activity.
5 To change your PIN.
*0 To speak to a Fidelity representative.
By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
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Fidelity's Web Site
www.fidelity.com
* 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.
Semiannual Report
To Visit Fidelity
For directions and hours,
please call 1-800-544-9797.
Arizona
7001 West Ray Road
Chandler, AZ
15445 N. Scottsdale Road
Scottsdale, AZ
California
815 East Birch Street
Brea, CA
1411 Chapin Avenue
Burlingame, CA
851 East Hamilton Avenue
Campbell, CA
19200 Von Karman Avenue
Irvine, CA
601 Larkspur Landing Circle
Larkspur, CA
10100 Santa Monica Blvd.
Los Angeles, CA
27101 Puerta Real
Mission Viejo, CA
73-575 El Paseo
Palm Desert, CA
251 University Avenue
Palo Alto, CA
123 South Lake Avenue
Pasadena, CA
16995 Bernardo Ctr. Drive
Rancho Bernardo, CA
1220 Roseville Parkway
Roseville, CA
1740 Arden Way
Sacramento, CA
7676 Hazard Center Drive
San Diego, CA
11943 El Camino Real
San Diego, CA
8 Montgomery Street
San Francisco, CA
3793 State Street
Santa Barbara, CA
1200 Wilshire Boulevard
Santa Monica, CA
21701 Hawthorne Boulevard
Torrance, CA
2001 North Main Street
Walnut Creek, CA
6300 Canoga Avenue
Woodland Hills, CA
Colorado
1625 Broadway
Denver, CO
9185 Westview Road
Lone Tree, CO
Connecticut
48 West Putnam Avenue
Greenwich, CT
265 Church Street
New Haven, CT
300 Atlantic Street
Stamford, CT
29 South Main Street
West Hartford, CT
Delaware
400 Delaware Avenue
Wilmington, DE
Florida
4400 N. Federal Highway
Boca Raton, FL
121 Alhambra Plaza
Coral Gables, FL
2948 N. Federal Highway
Ft. Lauderdale, FL
4671 Town Center Parkway
Jacksonville, FL
1907 West State Road 434
Longwood, FL
8880 Tamiami Trail, North
Naples, FL
3501 PGA Boulevard
Palm Beach Gardens, FL
3550 Tamiami Trail, South
Sarasota, FL
1502 N. Westshore Blvd.
Tampa, FL
2465 State Road 7
Wellington, FL
Georgia
3445 Peachtree Road, N.E.
Atlanta, GA
1000 Abernathy Road
Atlanta, GA
Illinois
One North LaSalle Street
Chicago, IL
875 North Michigan Ave.
Chicago, IL
1415 West 22nd Street
Oak Brook, IL
1572 East Golf Road
Schaumburg, IL
3232 Lake Avenue
Wilmette, IL
Indiana
4729 East 82nd Street
Indianapolis, IN
Kansas
5400 College Boulevard
Overland Park, KS
Maine
Three Canal Plaza
Portland, ME
Maryland
7315 Wisconsin Avenue
Bethesda, MD
One W. Pennsylvania Ave.
Towson, MD
Massachusetts
801 Boylston Street
Boston, MA
155 Congress Street
Boston, MA
300 Granite Street
Braintree, MA
44 Mall Road
Burlington, MA
238 Main Street
Cambridge, MA
405 Cochituate Road
Framingham, MA
416 Belmont Street
Worcester, MA
Fidelity Brokerage Services, Inc., 100 Summer St., Boston, MA 02110 Member NYSE/SIPC
Semiannual Report
Michigan
500 E. Eisenhower Pkwy.
Ann Arbor, MI
280 Old N. Woodward Ave.
Birmingham, MI
43420 Grand River Avenue
Novi, MI
29155 Northwestern Hwy.
Southfield, MI
Minnesota
7600 France Avenue South
Edina, MN
Missouri
1524 South Lindbergh Blvd.
St. Louis, MO
Nevada
2225 Village Walk Drive
Henderson, NV
New Jersey
150 Essex Street
Millburn, NJ
56 South Street
Morristown, NJ
396 Route 17, North
Paramus, NJ
3518 Route 1 North
Princeton, NJ
530 Broad Street
Shrewsbury, NJ
New York
1055 Franklin Avenue
Garden City, NY
37 West Jericho Turnpike
Huntington Station, NY
1271 Avenue of the Americas
New York, NY
980 Madison Avenue
New York, NY
61 Broadway
New York, NY
350 Park Avenue
New York, NY
200 Fifth Avenue
New York, NY
733 Third Avenue
New York, NY
11 Penn Plaza
New York, NY
2070 Broadway
New York, NY
1075 Northern Blvd.
Roslyn, NY
799 Central Park Avenue
Scarsdale, NY
North Carolina
4611 Sharon Road
Charlotte, NC
7011 Fayetteville Road
Durham, NC
Ohio
3805 Edwards Road
Cincinnati, OH
1324 Polaris Parkway
Columbus, OH
28699 Chagrin Boulevard
Woodmere Village, OH
Oregon
7493 SW Bridgeport Road
Tigard, OR
Pennsylvania
600 West DeKalb Pike
King of Prussia, PA
1735 Market Street
Philadelphia, PA
12001 Perry Highway
Wexford, PA
Rhode Island
47 Providence Place
Providence, RI
Tennessee
6150 Poplar Avenue
Memphis, TN
Texas
10000 Research Boulevard
Austin, TX
4001 Northwest Parkway
Dallas, TX
12532 Memorial Drive
Houston, TX
2701 Drexel Drive
Houston, TX
6560 Fannin Street
Houston, TX
6500 N. MacArthur Blvd.
Irving, TX
6005 West Park Boulevard
Plano, TX
14100 San Pedro
San Antonio, TX
1576 East Southlake Blvd.
Southlake, TX
19740 IH 45 North
Spring, TX
Utah
279 West South Temple
Salt Lake City, UT
Virginia
1861 International Drive
McLean, VA
Washington
411 108th Avenue, N.E.
Bellevue, WA
1518 6th Avenue
Seattle, WA
Washington, DC
1900 K Street, N.W.
Washington, DC
Wisconsin
595 North Barker Road
Brookfield, WI
Semiannual Report
To Write Fidelity
We'll give your correspondence immediate attention and send you written confirmation upon completion of your request.
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Making Changes
To Your Account
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
(letter_graphic)
For Non-Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
(letter_graphic)
For Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
Semiannual Report
Semiannual Report
Semiannual Report
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Research & Analysis Company
(formerly Fidelity Management &
Research (Far East) Inc.)
Fidelity Investments Japan Limited
Fidelity International Investment
Advisors
Fidelity International Investment
Advisors (U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agent
Fidelity Service Company, Inc. Boston, MA
Custodian
Brown Brothers Harriman & Co.
Boston, MA
The Fidelity Telephone Connection
Mutual Fund 24-Hour Service
Exchanges/Redemptions
and Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
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)
Fidelity Automated Service
Telephone (FAST®) (automated graphic) 1-800-544-5555
(automated graphic) Automated line for quickest service
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
CON-USAN-0806
1.787777.103
Item 2. Code of Ethics
Not applicable.
Item 3. Audit Committee Financial Expert
Not applicable.
Item 4. Principal Accountant Fees and Services
Not applicable.
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. Schedule of Investments
Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9. Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders
There were no material changes to the procedures by which shareholders may recommend nominees to the Fidelity Contrafund's Board of Trustees.
Item 11. Controls and Procedures
(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the Fidelity Contrafund's (the "Trust") disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) provide reasonable assurances that material information relating to the Trust is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.
(a)(ii) There was no change in the Trust's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Trust's internal control over financial reporting.
Item 12. Exhibits
(a) | (1) | Not applicable. |
(a) | (2) | Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT. |
(a) | (3) | Not applicable. |
(b) | Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Fidelity Contrafund
By: | /s/Christine Reynolds |
Christine Reynolds | |
President and Treasurer | |
Date: | August 17, 2006 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/Christine Reynolds |
Christine Reynolds | |
President and Treasurer | |
Date: | August 17, 2006 |
By: | /s/Joseph B. Hollis |
Joseph B. Hollis | |
Chief Financial Officer | |
Date: | August 17, 2006 |