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- 790
Fidelity Trend Fund
(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, 2004 |
Item 1. Reports to Stockholders
Fidelity®
Trend
Fund
Semiannual Report
June 30, 2004
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | Ned Johnson's message to shareholders. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
Proxy Voting Results | <Click Here> | |
| | |
| | |
For a free copy of the fund's proxy voting guidelines visit www.fidelity.com/goto/proxyguidelines, call 1-800-544-8544, or visit the Securities and Exchange Commission (SEC)'s web site at www.sec.gov.
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.
(Recycle graphic) This report is printed on recycled paper using soy-based inks.
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.
Mutual fund shares are not deposits or obligations of, or guaranteed by, any depository institution. Shares are not insured by the FDIC, Federal Reserve Board or any other agency, and are subject to investment risks, including possible loss of principal amount invested.
Neither the fund nor Fidelity Distributors Corporation is a bank.
For more information on any Fidelity fund, including charges and expenses, call 1-800-544-6666 for a free prospectus. Read it carefully before you invest or send money.
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
Many of you have read or heard news stories recently that were critical of mutual funds and made allegations that the mutual fund industry has been less than forthright. I find these reports unsettling and not necessarily an accurate picture of the overall industry, and I would like you to know where we at Fidelity stand.
With specific regard to allegations that certain mutual fund companies were violating the Securities and Exchange Commission's forward pricing rules or were involved in so-called "market timing" activities, I want to say two things:
First, Fidelity does not have agreements that permit customers who buy fund shares after 4 p.m. to obtain the 4 p.m. price. This is not to say that someone could not deceive the company through fraudulent acts. But I underscore that we have no so-called "agreements" which would permit this illegal practice.
Second, Fidelity has been on record for years opposing predatory short-term trading which adversely affects other shareholders in a mutual fund. In fact, in the 1980s, we began charging a fee - which is returned to the fund and, therefore, to investors - to discourage this activity. What's more, several years ago we took the industry lead in developing a Fair Value Pricing Policy to prevent market timing on foreign securities in our funds. It is reasonable to assume that another structure can be developed that would alter the system to make it much more difficult for predatory traders to operate. This, however, will only be achieved through close cooperation among regulators, legislators and the industry.
Certainly no industry is perfect, and there have been instances of unethical and illegal activity from time to time within the mutual fund industry. When this occurs, confessed or convicted offenders should be dealt with appropriately. Clearly, every system can be improved. We applaud well thought out improvements by regulators, legislators and industry representatives that achieve the common goal of building and protecting the value of investors' holdings. But we remain concerned about the risk of over-regulation and the quick application of simplistic solutions to intricate problems.
For more than 57 years, Fidelity Investments has worked very hard to improve its products and service to justify your trust. When our family founded this company in 1946, we had only a few hundred customers. Many of them were family and friends. Today, we serve more than 18 million customers including individual investors and participants in retirement plans across America.
Let me close by saying that we do not take your trust in us for granted, and we realize that we must always work to improve all aspects of our service to you. In turn, we urge you to continue your active participation with your financial matters, so that your interests can be well served.
Best regards,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
Investment Changes
Top Ten Stocks as of June 30, 2004 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
General Electric Co. | 3.3 | 3.1 |
Microsoft Corp. | 3.2 | 3.7 |
Pfizer, Inc. | 2.8 | 2.9 |
Exxon Mobil Corp. | 2.3 | 1.8 |
Citigroup, Inc. | 2.3 | 2.5 |
American International Group, Inc. | 2.1 | 2.0 |
Wal-Mart Stores, Inc. | 2.1 | 2.0 |
Bank of America Corp. | 1.8 | 1.0 |
Intel Corp. | 1.7 | 2.1 |
Johnson & Johnson | 1.7 | 1.5 |
| 23.3 | |
Top Five Market Sectors as of June 30, 2004 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Information Technology | 18.3 | 18.8 |
Financials | 17.8 | 18.1 |
Health Care | 14.1 | 13.1 |
Industrials | 12.3 | 11.4 |
Consumer Discretionary | 10.5 | 11.4 |
Asset Allocation (% of fund's net assets) |
As of June 30, 2004* | As of December 31, 2003** |
 | Stocks 97.6% | | | Stocks 97.9% | |
 | Convertible
Securities 0.5% | | | Convertible
Securities 0.4% | |
 | Short-Term
Investments and
Net Other Assets 1.9% | | | Short-Term
Investments and
Net Other Assets 1.7% | |
* Foreign
investments | 3.0% | | ** Foreign
investments | 2.5% | |
Semiannual Report
Investments June 30, 2004 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.6% |
| Shares | | Value (Note 1) (000s) |
CONSUMER DISCRETIONARY - 10.4% |
Automobiles - 0.5% |
Ford Motor Co. | 54,700 | | $ 856 |
General Motors Corp. | 31,200 | | 1,454 |
Harley-Davidson, Inc. | 16,500 | | 1,022 |
Toyota Motor Corp. | 22,400 | | 914 |
Toyota Motor Corp. ADR | 950 | | 78 |
| | 4,324 |
Hotels, Restaurants & Leisure - 1.4% |
Carnival Corp. unit | 32,000 | | 1,504 |
GTECH Holdings Corp. | 1,700 | | 79 |
Hilton Hotels Corp. | 27,100 | | 506 |
International Game Technology | 21,700 | | 838 |
Kerzner International Ltd. (a) | 35,100 | | 1,669 |
Mandalay Resort Group | 8,900 | | 611 |
McDonald's Corp. | 125,400 | | 3,260 |
Royal Caribbean Cruises Ltd. | 20,200 | | 877 |
Starwood Hotels & Resorts Worldwide, Inc. unit | 46,300 | | 2,077 |
Yum! Brands, Inc. | 11,900 | | 443 |
| | 11,864 |
Household Durables - 0.1% |
D.R. Horton, Inc. | 13,800 | | 392 |
Toll Brothers, Inc. (a) | 10,500 | | 444 |
| | 836 |
Internet & Catalog Retail - 0.4% |
eBay, Inc. (a) | 36,300 | | 3,338 |
Leisure Equipment & Products - 0.2% |
Brunswick Corp. | 23,600 | | 963 |
Eastman Kodak Co. | 17,100 | | 461 |
| | 1,424 |
Media - 4.5% |
Clear Channel Communications, Inc. | 27,212 | | 1,005 |
Comcast Corp.: | | | |
Class A (a) | 68,914 | | 1,932 |
Class A (special) (a) | 27,600 | | 762 |
EchoStar Communications Corp. Class A (a) | 18,300 | | 563 |
Emmis Communications Corp. Class A (a) | 28,900 | | 606 |
Fox Entertainment Group, Inc. Class A (a) | 47,700 | | 1,274 |
Gannett Co., Inc. | 20,900 | | 1,773 |
JC Decaux SA (a) | 39,749 | | 853 |
Common Stocks - continued |
| Shares | | Value (Note 1) (000s) |
CONSUMER DISCRETIONARY - continued |
Media - continued |
Lamar Advertising Co. Class A (a) | 42,700 | | $ 1,851 |
McGraw-Hill Companies, Inc. | 17,100 | | 1,309 |
News Corp. Ltd. sponsored ADR | 70,032 | | 2,303 |
NTL, Inc. (a) | 44,654 | | 2,573 |
Omnicom Group, Inc. | 5,200 | | 395 |
Playboy Enterprises, Inc. Class B (non-vtg.) (a) | 252,800 | | 2,935 |
The DIRECTV Group, Inc. (a) | 78,600 | | 1,344 |
Time Warner, Inc. (a) | 354,450 | | 6,231 |
Univision Communications, Inc. Class A (a) | 83,800 | | 2,676 |
Viacom, Inc.: | | | |
Class A | 21,350 | | 776 |
Class B (non-vtg.) | 88,950 | | 3,177 |
Walt Disney Co. | 160,700 | | 4,096 |
| | 38,434 |
Multiline Retail - 1.0% |
Federated Department Stores, Inc. | 27,500 | | 1,350 |
JCPenney Co., Inc. | 50,300 | | 1,899 |
Kohl's Corp. (a) | 9,800 | | 414 |
Nordstrom, Inc. | 47,900 | | 2,041 |
Target Corp. | 74,200 | | 3,151 |
| | 8,855 |
Specialty Retail - 1.7% |
Abercrombie & Fitch Co. Class A | 24,200 | | 938 |
American Eagle Outfitters, Inc. (a) | 34,200 | | 989 |
Best Buy Co., Inc. | 25,600 | | 1,299 |
Gap, Inc. | 52,000 | | 1,261 |
Home Depot, Inc. | 171,700 | | 6,044 |
Lowe's Companies, Inc. | 30,900 | | 1,624 |
Office Depot, Inc. (a) | 51,700 | | 926 |
Staples, Inc. | 34,800 | | 1,020 |
Toys 'R' Us, Inc. (a) | 18,500 | | 295 |
| | 14,396 |
Textiles Apparel & Luxury Goods - 0.6% |
Coach, Inc. (a) | 23,100 | | 1,044 |
Jones Apparel Group, Inc. | 7,900 | | 312 |
Common Stocks - continued |
| Shares | | Value (Note 1) (000s) |
CONSUMER DISCRETIONARY - continued |
Textiles Apparel & Luxury Goods - continued |
NIKE, Inc. Class B | 37,600 | | $ 2,848 |
Polo Ralph Lauren Corp. Class A | 43,100 | | 1,485 |
| | 5,689 |
TOTAL CONSUMER DISCRETIONARY | | 89,160 |
CONSUMER STAPLES - 10.4% |
Beverages - 2.4% |
Anheuser-Busch Companies, Inc. | 48,200 | | 2,603 |
PepsiCo, Inc. | 137,170 | | 7,391 |
The Coca-Cola Co. | 204,900 | | 10,343 |
| | 20,337 |
Food & Staples Retailing - 3.3% |
Albertsons, Inc. | 36,900 | | 979 |
Costco Wholesale Corp. | 26,900 | | 1,105 |
CVS Corp. | 85,900 | | 3,610 |
Kroger Co. (a) | 38,500 | | 701 |
Safeway, Inc. (a) | 75,700 | | 1,918 |
Sysco Corp. | 38,700 | | 1,388 |
Wal-Mart Stores, Inc. | 337,900 | | 17,828 |
Walgreen Co. | 11,300 | | 409 |
| | 27,938 |
Food Products - 0.9% |
Archer-Daniels-Midland Co. | 26,900 | | 451 |
Dean Foods Co. (a) | 24,450 | | 912 |
H.J. Heinz Co. | 35,100 | | 1,376 |
Hershey Foods Corp. | 20,600 | | 953 |
Kellogg Co. | 37,800 | | 1,582 |
Smithfield Foods, Inc. (a) | 18,100 | | 532 |
The J.M. Smucker Co. | 20,700 | | 950 |
Wm. Wrigley Jr. Co. | 21,600 | | 1,362 |
| | 8,118 |
Household Products - 2.0% |
Colgate-Palmolive Co. | 39,200 | | 2,291 |
Kimberly-Clark Corp. | 36,500 | | 2,405 |
Procter & Gamble Co. | 228,600 | | 12,445 |
| | 17,141 |
Common Stocks - continued |
| Shares | | Value (Note 1) (000s) |
CONSUMER STAPLES - continued |
Personal Products - 0.9% |
Avon Products, Inc. | 32,800 | | $ 1,513 |
Estee Lauder Companies, Inc. Class A | 22,800 | | 1,112 |
Gillette Co. | 125,900 | | 5,338 |
| | 7,963 |
Tobacco - 0.9% |
Altria Group, Inc. | 160,800 | | 8,048 |
TOTAL CONSUMER STAPLES | | 89,545 |
ENERGY - 6.5% |
Energy Equipment & Services - 1.7% |
Baker Hughes, Inc. | 25,000 | | 941 |
BJ Services Co. (a) | 33,500 | | 1,536 |
ENSCO International, Inc. | 64,800 | | 1,886 |
GlobalSantaFe Corp. | 21,600 | | 572 |
Halliburton Co. | 55,500 | | 1,679 |
Nabors Industries Ltd. (a) | 11,500 | | 520 |
National-Oilwell, Inc. (a) | 39,100 | | 1,231 |
Noble Corp. (a) | 25,800 | | 978 |
Pride International, Inc. (a) | 22,000 | | 376 |
Rowan Companies, Inc. (a) | 11,800 | | 287 |
Schlumberger Ltd. (NY Shares) | 39,700 | | 2,521 |
Transocean, Inc. (a) | 46,500 | | 1,346 |
Weatherford International Ltd. (a) | 16,200 | | 729 |
| | 14,602 |
Oil & Gas - 4.8% |
Anadarko Petroleum Corp. | 15,200 | | 891 |
Burlington Resources, Inc. | 53,800 | | 1,946 |
ChevronTexaco Corp. | 93,419 | | 8,792 |
ConocoPhillips | 76,968 | | 5,872 |
Exxon Mobil Corp. | 454,730 | | 20,195 |
Kinder Morgan, Inc. | 10,200 | | 605 |
Occidental Petroleum Corp. | 39,200 | | 1,898 |
Ultra Petroleum Corp. (a) | 12,700 | | 474 |
Williams Companies, Inc. | 43,800 | | 521 |
| | 41,194 |
TOTAL ENERGY | | 55,796 |
Common Stocks - continued |
| Shares | | Value (Note 1) (000s) |
FINANCIALS - 17.8% |
Capital Markets - 3.1% |
Bank of New York Co., Inc. | 40,600 | | $ 1,197 |
Charles Schwab Corp. | 38,900 | | 374 |
Goldman Sachs Group, Inc. | 20,600 | | 1,940 |
J.P. Morgan Chase & Co. | 172,080 | | 6,672 |
Lehman Brothers Holdings, Inc. | 34,600 | | 2,604 |
Merrill Lynch & Co., Inc. | 104,000 | | 5,614 |
Morgan Stanley | 107,800 | | 5,689 |
Northern Trust Corp. | 26,600 | | 1,125 |
State Street Corp. | 26,800 | | 1,314 |
| | 26,529 |
Commercial Banks - 4.5% |
Bank of America Corp. | 181,311 | | 15,343 |
Bank One Corp. | 106,900 | | 5,452 |
Fifth Third Bancorp | 21,300 | | 1,146 |
SunTrust Banks, Inc. | 6,700 | | 435 |
U.S. Bancorp, Delaware | 90,100 | | 2,483 |
Wachovia Corp. | 121,123 | | 5,390 |
Wells Fargo & Co. | 144,400 | | 8,264 |
| | 38,513 |
Consumer Finance - 1.4% |
American Express Co. | 122,800 | | 6,309 |
Capital One Financial Corp. | 31,900 | | 2,181 |
First Marblehead Corp. | 23,900 | | 962 |
MBNA Corp. | 61,400 | | 1,584 |
SLM Corp. | 28,200 | | 1,141 |
| | 12,177 |
Diversified Financial Services - 2.4% |
CIT Group, Inc. | 36,100 | | 1,382 |
Citigroup, Inc. | 417,977 | | 19,436 |
| | 20,818 |
Insurance - 4.5% |
ACE Ltd. | 63,500 | | 2,685 |
AFLAC, Inc. | 74,800 | | 3,053 |
Allstate Corp. | 60,100 | | 2,798 |
AMBAC Financial Group, Inc. | 12,000 | | 881 |
American International Group, Inc. | 252,237 | | 17,979 |
Hartford Financial Services Group, Inc. | 59,000 | | 4,056 |
Marsh & McLennan Companies, Inc. | 20,100 | | 912 |
MBIA, Inc. | 8,000 | | 457 |
Common Stocks - continued |
| Shares | | Value (Note 1) (000s) |
FINANCIALS - continued |
Insurance - continued |
MetLife, Inc. | 76,600 | | $ 2,746 |
Prudential Financial, Inc. | 36,700 | | 1,705 |
The Chubb Corp. | 8,800 | | 600 |
XL Capital Ltd. Class A | 12,200 | | 921 |
| | 38,793 |
Real Estate - 0.3% |
CenterPoint Properties Trust (SBI) | 8,200 | | 629 |
Pan Pacific Retail Properties, Inc. | 9,600 | | 485 |
Simon Property Group, Inc. | 8,800 | | 452 |
Spirit Financial Corp. (c) | 40,000 | | 400 |
| | 1,966 |
Thrifts & Mortgage Finance - 1.6% |
Countrywide Financial Corp. | 20,441 | | 1,436 |
Fannie Mae | 91,400 | | 6,522 |
Freddie Mac | 28,200 | | 1,785 |
Golden West Financial Corp., Delaware | 13,100 | | 1,393 |
MGIC Investment Corp. | 13,000 | | 986 |
Sovereign Bancorp, Inc. | 16,600 | | 367 |
The PMI Group, Inc. | 10,500 | | 457 |
Washington Mutual, Inc. | 20,100 | | 777 |
| | 13,723 |
TOTAL FINANCIALS | | 152,519 |
HEALTH CARE - 14.1% |
Biotechnology - 1.6% |
Alnylam Pharmaceuticals, Inc. | 77,800 | | 588 |
Amgen, Inc. (a) | 64,400 | | 3,514 |
Biogen Idec, Inc. (a) | 42,400 | | 2,682 |
CSL Ltd. | 59,500 | | 927 |
Genentech, Inc. (a) | 34,300 | | 1,928 |
Genzyme Corp. - General Division (a) | 4,200 | | 199 |
ImClone Systems, Inc. (a) | 5,900 | | 506 |
Millennium Pharmaceuticals, Inc. (a) | 73,200 | | 1,010 |
OSI Pharmaceuticals, Inc. (a) | 10,000 | | 704 |
Pharmion Corp. | 28,000 | | 1,370 |
Protein Design Labs, Inc. (a) | 4,200 | | 80 |
Seattle Genetics, Inc. (a) | 60,700 | | 427 |
| | 13,935 |
Common Stocks - continued |
| Shares | | Value (Note 1) (000s) |
HEALTH CARE - continued |
Health Care Equipment & Supplies - 3.0% |
Alcon, Inc. | 10,700 | | $ 842 |
Bausch & Lomb, Inc. | 9,300 | | 605 |
Baxter International, Inc. | 52,300 | | 1,805 |
Becton, Dickinson & Co. | 20,700 | | 1,072 |
Biomet, Inc. | 22,000 | | 978 |
Boston Scientific Corp. (a) | 76,000 | | 3,253 |
C.R. Bard, Inc. | 17,000 | | 963 |
Cooper Companies, Inc. | 15,700 | | 992 |
Dade Behring Holdings, Inc. (a) | 9,700 | | 461 |
Fisher Scientific International, Inc. (a) | 46,300 | | 2,674 |
Guidant Corp. | 14,600 | | 816 |
Medtronic, Inc. | 114,600 | | 5,583 |
ResMed, Inc. (a) | 9,600 | | 489 |
St. Jude Medical, Inc. (a) | 29,700 | | 2,247 |
Stryker Corp. | 25,200 | | 1,386 |
Synthes, Inc. | 8,320 | | 951 |
Wright Medical Group, Inc. (a) | 12,700 | | 452 |
Zimmer Holdings, Inc. (a) | 5,300 | | 467 |
| | 26,036 |
Health Care Providers & Services - 1.6% |
Aetna, Inc. | 5,200 | | 442 |
Cardinal Health, Inc. | 27,250 | | 1,909 |
Caremark Rx, Inc. (a) | 37,800 | | 1,245 |
Cerner Corp. (a) | 11,600 | | 517 |
CIGNA Corp. | 7,200 | | 495 |
Health Management Associates, Inc. Class A | 21,600 | | 484 |
Lincare Holdings, Inc. (a) | 19,300 | | 634 |
McKesson Corp. | 34,800 | | 1,195 |
PacifiCare Health Systems, Inc. (a) | 22,800 | | 881 |
UnitedHealth Group, Inc. | 70,600 | | 4,395 |
WebMD Corp. (a) | 150,800 | | 1,405 |
Wellcare Group, Inc. | 500 | | 10 |
| | 13,612 |
Pharmaceuticals - 7.9% |
Abbott Laboratories | 103,100 | | 4,202 |
Allergan, Inc. | 5,300 | | 474 |
Bristol-Myers Squibb Co. | 101,100 | | 2,477 |
Elan Corp. PLC sponsored ADR (a) | 32,000 | | 792 |
Eli Lilly & Co. | 91,700 | | 6,411 |
Common Stocks - continued |
| Shares | | Value (Note 1) (000s) |
HEALTH CARE - continued |
Pharmaceuticals - continued |
Forest Laboratories, Inc. (a) | 6,100 | | $ 345 |
Johnson & Johnson | 256,400 | | 14,281 |
Merck & Co., Inc. | 164,900 | | 7,833 |
Pfizer, Inc. | 694,995 | | 23,824 |
Schering-Plough Corp. | 124,400 | | 2,299 |
Sepracor, Inc. (a) | 26,000 | | 1,375 |
Watson Pharmaceuticals, Inc. (a) | 1,000 | | 27 |
Wyeth | 88,700 | | 3,207 |
| | 67,547 |
TOTAL HEALTH CARE | | 121,130 |
INDUSTRIALS - 12.1% |
Aerospace & Defense - 3.0% |
DRS Technologies, Inc. (a) | 1,700 | | 54 |
EADS NV | 48,259 | | 1,347 |
Embraer - Empresa Brasileira de Aeronautica SA sponsored ADR | 26,600 | | 760 |
General Dynamics Corp. | 19,600 | | 1,946 |
Goodrich Corp. | 30,300 | | 980 |
Honeywell International, Inc. | 205,300 | | 7,520 |
Lockheed Martin Corp. | 18,700 | | 974 |
Northrop Grumman Corp. | 47,042 | | 2,526 |
Precision Castparts Corp. | 43,400 | | 2,374 |
Raytheon Co. | 26,400 | | 944 |
Rockwell Collins, Inc. | 29,200 | | 973 |
The Boeing Co. | 71,400 | | 3,648 |
United Technologies Corp. | 20,100 | | 1,839 |
| | 25,885 |
Air Freight & Logistics - 1.2% |
CNF, Inc. | 12,500 | | 520 |
FedEx Corp. | 22,600 | | 1,846 |
United Parcel Service, Inc. Class B | 102,500 | | 7,705 |
| | 10,071 |
Airlines - 0.1% |
AMR Corp. (a) | 2,300 | | 28 |
JetBlue Airways Corp. (a) | 15,166 | | 446 |
| | 474 |
Common Stocks - continued |
| Shares | | Value (Note 1) (000s) |
INDUSTRIALS - continued |
Building Products - 0.3% |
American Standard Companies, Inc. (a) | 67,500 | | $ 2,721 |
Commercial Services & Supplies - 0.8% |
Career Education Corp. (a) | 18,010 | | 821 |
Cendant Corp. | 49,800 | | 1,219 |
Central Parking Corp. | 46,300 | | 865 |
Monster Worldwide, Inc. (a) | 17,800 | | 458 |
Robert Half International, Inc. | 39,400 | | 1,173 |
Strayer Education, Inc. | 7,000 | | 781 |
Waste Management, Inc. | 63,900 | | 1,959 |
| | 7,276 |
Construction & Engineering - 0.2% |
Dycom Industries, Inc. (a) | 50,900 | | 1,425 |
Fluor Corp. | 10,000 | | 477 |
| | 1,902 |
Electrical Equipment - 0.1% |
Emerson Electric Co. | 14,400 | | 915 |
Industrial Conglomerates - 4.8% |
3M Co. | 51,100 | | 4,600 |
General Electric Co. | 868,400 | | 28,131 |
Tyco International Ltd. | 254,700 | | 8,441 |
| | 41,172 |
Machinery - 1.4% |
Astec Industries, Inc. (a) | 43,000 | | 810 |
Caterpillar, Inc. | 16,600 | | 1,319 |
Cummins, Inc. | 12,700 | | 794 |
Danaher Corp. | 18,400 | | 954 |
Dover Corp. | 33,500 | | 1,410 |
Ingersoll-Rand Co. Ltd. Class A | 26,100 | | 1,783 |
ITT Industries, Inc. | 31,300 | | 2,598 |
Timken Co. | 74,200 | | 1,966 |
| | 11,634 |
Road & Rail - 0.2% |
Overnite Corp. | 1,300 | | 38 |
Union Pacific Corp. | 24,000 | | 1,427 |
| | 1,465 |
TOTAL INDUSTRIALS | | 103,515 |
Common Stocks - continued |
| Shares | | Value (Note 1) (000s) |
INFORMATION TECHNOLOGY - 18.1% |
Communications Equipment - 3.8% |
Adtran, Inc. | 12,600 | | $ 420 |
Alvarion Ltd. (a) | 32,900 | | 437 |
Andrew Corp. (a) | 56,100 | | 1,123 |
Avaya, Inc. (a) | 31,800 | | 502 |
Brocade Communications Systems, Inc. (a) | 161,600 | | 966 |
CIENA Corp. (a) | 25,800 | | 96 |
Cisco Systems, Inc. (a) | 538,300 | | 12,758 |
Comverse Technology, Inc. (a) | 71,700 | | 1,430 |
Corning, Inc. (a) | 52,700 | | 688 |
Harris Corp. | 21,800 | | 1,106 |
Juniper Networks, Inc. (a) | 28,500 | | 700 |
Lucent Technologies, Inc. (a) | 297,800 | | 1,126 |
Motorola, Inc. | 177,400 | | 3,238 |
Powerwave Technologies, Inc. (a) | 51,000 | | 393 |
QUALCOMM, Inc. | 70,900 | | 5,174 |
Redback Networks, Inc. (a) | 46,000 | | 295 |
Scientific-Atlanta, Inc. | 37,700 | | 1,301 |
Sonus Networks, Inc. (a) | 30,400 | | 145 |
Telefonaktiebolaget LM Ericsson ADR (a) | 27,700 | | 829 |
| | 32,727 |
Computers & Peripherals - 3.3% |
Apple Computer, Inc. (a) | 15,300 | | 498 |
Dell, Inc. (a) | 211,300 | | 7,569 |
Diebold, Inc. | 24,900 | | 1,316 |
EMC Corp. (a) | 183,500 | | 2,092 |
Hewlett-Packard Co. | 189,300 | | 3,994 |
International Business Machines Corp. | 118,800 | | 10,472 |
Lexmark International, Inc. Class A (a) | 13,800 | | 1,332 |
Sun Microsystems, Inc. (a) | 214,700 | | 932 |
| | 28,205 |
Electronic Equipment & Instruments - 0.5% |
Amphenol Corp. Class A (a) | 85,200 | | 2,839 |
Solectron Corp. (a) | 36,300 | | 235 |
Thermo Electron Corp. (a) | 14,600 | | 449 |
Vishay Intertechnology, Inc. (a) | 21,000 | | 390 |
Waters Corp. (a) | 9,300 | | 444 |
| | 4,357 |
Internet Software & Services - 0.8% |
Blue Coat Systems, Inc. (a) | 27,300 | | 914 |
Common Stocks - continued |
| Shares | | Value (Note 1) (000s) |
INFORMATION TECHNOLOGY - continued |
Internet Software & Services - continued |
Websense, Inc. (a) | 13,500 | | $ 503 |
Yahoo!, Inc. (a) | 155,600 | | 5,653 |
| | 7,070 |
IT Services - 1.6% |
Affiliated Computer Services, Inc. Class A (a) | 26,600 | | 1,408 |
Anteon International Corp. (a) | 4,300 | | 140 |
Automatic Data Processing, Inc. | 9,400 | | 394 |
BearingPoint, Inc. (a) | 68,600 | | 608 |
Ceridian Corp. (a) | 41,500 | | 934 |
Cognizant Technology Solutions Corp. Class A (a) | 77,000 | | 1,957 |
Computer Sciences Corp. (a) | 21,400 | | 994 |
First Data Corp. | 75,805 | | 3,375 |
ManTech International Corp. Class A (a) | 19,600 | | 368 |
National Processing, Inc. (a) | 33,500 | | 963 |
Paychex, Inc. | 24,300 | | 823 |
SRA International, Inc. Class A (a) | 45,800 | | 1,938 |
The BISYS Group, Inc. (a) | 5,800 | | 82 |
| | 13,984 |
Office Electronics - 0.0% |
Xerox Corp. (a) | 25,800 | | 374 |
Semiconductors & Semiconductor Equipment - 3.6% |
Advanced Micro Devices, Inc. (a) | 28,000 | | 445 |
Altera Corp. (a) | 32,000 | | 711 |
Analog Devices, Inc. | 36,900 | | 1,737 |
Applied Materials, Inc. (a) | 126,300 | | 2,478 |
Broadcom Corp. Class A (a) | 10,200 | | 477 |
FormFactor, Inc. | 22,300 | | 501 |
Intel Corp. | 529,700 | | 14,620 |
KLA-Tencor Corp. (a) | 8,400 | | 415 |
Lam Research Corp. (a) | 18,700 | | 501 |
Linear Technology Corp. | 11,000 | | 434 |
Marvell Technology Group Ltd. (a) | 19,800 | | 529 |
Maxim Integrated Products, Inc. | 12,800 | | 671 |
Micron Technology, Inc. (a) | 29,600 | | 453 |
National Semiconductor Corp. (a) | 14,600 | | 321 |
PMC-Sierra, Inc. (a) | 39,500 | | 567 |
Silicon Laboratories, Inc. (a) | 8,600 | | 399 |
Teradyne, Inc. (a) | 73,100 | | 1,659 |
Common Stocks - continued |
| Shares | | Value (Note 1) (000s) |
INFORMATION TECHNOLOGY - continued |
Semiconductors & Semiconductor Equipment - continued |
Texas Instruments, Inc. | 119,300 | | $ 2,885 |
Xilinx, Inc. | 22,300 | | 743 |
| | 30,546 |
Software - 4.5% |
Autodesk, Inc. | 20,100 | | 860 |
BEA Systems, Inc. (a) | 15,700 | | 129 |
Computer Associates International, Inc. | 25,200 | | 707 |
Mercury Interactive Corp. (a) | 8,700 | | 434 |
Microsoft Corp. | 958,200 | | 27,366 |
Oracle Corp. (a) | 459,000 | | 5,476 |
Red Hat, Inc. (a) | 9,900 | | 227 |
Salesforce.com, Inc. | 500 | | 8 |
Secure Computing Corp. (a) | 37,100 | | 432 |
Siebel Systems, Inc. (a) | 50,300 | | 537 |
Symantec Corp. (a) | 25,800 | | 1,130 |
VERITAS Software Corp. (a) | 37,000 | | 1,025 |
| | 38,331 |
TOTAL INFORMATION TECHNOLOGY | | 155,594 |
MATERIALS - 3.0% |
Chemicals - 1.5% |
Dow Chemical Co. | 94,600 | | 3,850 |
E.I. du Pont de Nemours & Co. | 40,400 | | 1,795 |
Lyondell Chemical Co. | 81,200 | | 1,412 |
Olin Corp. | 34,500 | | 608 |
PPG Industries, Inc. | 36,600 | | 2,287 |
Praxair, Inc. | 65,400 | | 2,610 |
| | 12,562 |
Containers & Packaging - 0.4% |
Packaging Corp. of America | 45,800 | | 1,095 |
Sealed Air Corp. (a) | 8,300 | | 442 |
Smurfit-Stone Container Corp. (a) | 75,800 | | 1,512 |
| | 3,049 |
Metals & Mining - 0.9% |
Alcan, Inc. | 2,200 | | 91 |
Alcoa, Inc. | 59,800 | | 1,975 |
Freeport-McMoRan Copper & Gold, Inc. Class B | 28,000 | | 928 |
Inco Ltd. (a) | 30,100 | | 1,038 |
Common Stocks - continued |
| Shares | | Value (Note 1) (000s) |
MATERIALS - continued |
Metals & Mining - continued |
Newmont Mining Corp. | 43,300 | | $ 1,678 |
Nucor Corp. | 7,600 | | 583 |
Peabody Energy Corp. | 25,400 | | 1,422 |
United States Steel Corp. | 12,500 | | 439 |
| | 8,154 |
Paper & Forest Products - 0.2% |
International Paper Co. | 48,500 | | 2,168 |
TOTAL MATERIALS | | 25,933 |
TELECOMMUNICATION SERVICES - 4.3% |
Diversified Telecommunication Services - 3.2% |
ALLTEL Corp. | 16,000 | | 810 |
BellSouth Corp. | 164,100 | | 4,303 |
Citizens Communications Co. (a) | 67,300 | | 814 |
Nippon Telegraph & Telephone Corp. | 87 | | 467 |
Qwest Communications International, Inc. (a) | 294,000 | | 1,055 |
SBC Communications, Inc. | 358,800 | | 8,701 |
Sprint Corp. - FON Group | 127,200 | | 2,239 |
Verizon Communications, Inc. | 239,600 | | 8,671 |
| | 27,060 |
Wireless Telecommunication Services - 1.1% |
AT&T Wireless Services, Inc. (a) | 208,300 | | 2,983 |
Crown Castle International Corp. (a) | 44,200 | | 652 |
Nextel Communications, Inc. Class A (a) | 102,600 | | 2,735 |
Nextel Partners, Inc. Class A (a) | 90,000 | | 1,433 |
SpectraSite, Inc. (a) | 26,600 | | 1,150 |
Vodafone Group PLC sponsored ADR | 17,000 | | 376 |
| | 9,329 |
TOTAL TELECOMMUNICATION SERVICES | | 36,389 |
UTILITIES - 0.9% |
Electric Utilities - 0.5% |
Entergy Corp. | 23,900 | | 1,339 |
PG&E Corp. (a) | 85,700 | | 2,394 |
TXU Corp. | 23,100 | | 936 |
| | 4,669 |
Common Stocks - continued |
| Shares | | Value (Note 1) (000s) |
UTILITIES - continued |
Multi-Utilities & Unregulated Power - 0.4% |
AES Corp. (a) | 53,100 | | $ 527 |
Constellation Energy Group, Inc. | 13,300 | | 504 |
Dominion Resources, Inc. | 25,900 | | 1,634 |
NRG Energy, Inc. (a) | 17,800 | | 441 |
| | 3,106 |
TOTAL UTILITIES | | 7,775 |
TOTAL COMMON STOCKS (Cost $764,199) | 837,356 |
Preferred Stocks - 0.2% |
| | | |
Convertible Preferred Stocks - 0.2% |
INDUSTRIALS - 0.2% |
Aerospace & Defense - 0.2% |
Northrop Grumman Corp. 7.25% | 14,800 | | 1,574 |
Nonconvertible Preferred Stocks - 0.0% |
HEALTH CARE - 0.0% |
Biotechnology - 0.0% |
Geneprot, Inc. Series A (d) | 62,000 | | 217 |
TOTAL PREFERRED STOCKS (Cost $1,844) | 1,791 |
Corporate Bonds - 0.3% |
| Principal Amount (000s) | | |
Convertible Bonds - 0.3% |
CONSUMER DISCRETIONARY - 0.1% |
Media - 0.1% |
EchoStar Communications Corp. 5.75% 5/15/08 (c) | | $ 1,000 | | 1,018 |
Corporate Bonds - continued |
| Principal Amount (000s) | | Value (Note 1) (000s) |
Convertible Bonds - continued |
INFORMATION TECHNOLOGY - 0.2% |
Communications Equipment - 0.2% |
Corning, Inc. 0% 11/8/15 | | $ 800 | | $ 626 |
Lucent Technologies, Inc. 8% 8/1/31 (c) | | 500 | | 558 |
| | 1,184 |
Software - 0.0% |
Red Hat, Inc. 0.5% 1/15/24 (c) | | 243 | | 274 |
TOTAL INFORMATION TECHNOLOGY | | 1,458 |
TOTAL CONVERTIBLE BONDS | | 2,476 |
Nonconvertible Bonds - 0.0% |
CONSUMER DISCRETIONARY - 0.0% |
Media - 0.0% |
PEI Holdings, Inc. 11% 3/15/10 | | 10 | | 12 |
TOTAL CORPORATE BONDS (Cost $2,275) | 2,488 |
Money Market Funds - 2.1% |
| Shares | | |
Fidelity Cash Central Fund, 1.16% (b) | 17,402,738 | | 17,403 |
Fidelity Securities Lending Cash Central Fund, 1.18% (b) | 806,500 | | 807 |
TOTAL MONEY MARKET FUNDS (Cost $18,210) | 18,210 |
TOTAL INVESTMENT PORTFOLIO - 100.2% (Cost $786,528) | | 859,845 |
NET OTHER ASSETS - (0.2)% | | (1,790) |
NET ASSETS - 100% | $ 858,055 |
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 listing of the fund's holdings as of its most recent fiscal year end is available upon request. |
(c) 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 $2,250,000 or 0.3% of net assets. |
(d) 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 $217,000 or 0.0% of net assets. |
Additional information on each holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
Geneprot, Inc. Series A | 7/7/00 | $ 341 |
Other Information |
Purchases and sales of securities, other than short-term securities, aggregated $283,248,000 and $320,515,000, respectively. |
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 $37,000 for the period. |
Income Tax Information |
At December 31, 2003, the fund had a capital loss carryforward of approximately $207,623,000 of which $117,416,000 and $90,207,000 will expire on December 31, 2009 and 2010, respectively. |
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, 2004 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $820) (cost $786,528) - See accompanying schedule | | $ 859,845 |
Cash | | 6 |
Receivable for investments sold | | 6,105 |
Receivable for fund shares sold | | 79 |
Dividends receivable | | 770 |
Interest receivable | | 41 |
Prepaid expenses | | 2 |
Other affiliated receivables | | 6 |
Other receivables | | 52 |
Total assets | | 866,906 |
| | |
Liabilities | | |
Payable for investments purchased | $ 6,692 | |
Payable for fund shares redeemed | 705 | |
Accrued management fee | 407 | |
Other affiliated payables | 182 | |
Other payables and accrued expenses | 58 | |
Collateral on securities loaned, at value | 807 | |
Total liabilities | | 8,851 |
| | |
Net Assets | | $ 858,055 |
Net Assets consist of: | | |
Paid in capital | | $ 961,645 |
Undistributed net investment income | | 2,531 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (179,438) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 73,317 |
Net Assets, for 16,935 shares outstanding | | $ 858,055 |
Net Asset Value, offering price and redemption price per share ($858,055 ÷ 16,935 shares) | | $ 50.67 |
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, 2004 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 5,933 |
Interest | | 135 |
Security lending | | 14 |
Total income | | 6,082 |
| | |
Expenses | | |
Management fee
Basic fee | $ 2,484 | |
Performance adjustment | 99 | |
Transfer agent fees | 794 | |
Accounting and security lending fees | 142 | |
Non-interested trustees' compensation | 2 | |
Appreciation in deferred trustee compensation account | 3 | |
Custodian fees and expenses | 14 | |
Registration fees | 15 | |
Audit | 25 | |
Legal | 6 | |
Miscellaneous | 41 | |
Total expenses before reductions | 3,625 | |
Expense reductions | (106) | 3,519 |
Net investment income (loss) | | 2,563 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities | 38,181 | |
Foreign currency transactions | 8 | |
Total net realized gain (loss) | | 38,189 |
Change in net unrealized appreciation (depreciation) on investment securities | | (11,311) |
Net gain (loss) | | 26,878 |
Net increase (decrease) in net assets resulting from operations | | $ 29,441 |
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, 2004
(Unaudited) | Year ended
December 31, 2003 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 2,563 | $ 6,134 |
Net realized gain (loss) | 38,189 | 49,567 |
Change in net unrealized appreciation (depreciation) | (11,311) | 136,849 |
Net increase (decrease) in net assets resulting
from operations | 29,441 | 192,550 |
Distributions to shareholders from net investment income | (175) | (5,991) |
Share transactions
Net proceeds from sales of shares | 14,042 | 34,854 |
Reinvestment of distributions | 152 | 5,189 |
Cost of shares redeemed | (52,398) | (88,716) |
Net increase (decrease) in net assets resulting from share transactions | (38,204) | (48,673) |
Total increase (decrease) in net assets | (8,938) | 137,886 |
| | |
Net Assets | | |
Beginning of period | 866,993 | 729,107 |
End of period (including undistributed net investment income of $2,531 and undistributed net investment income of $143, respectively) | $ 858,055 | $ 866,993 |
Other Information Shares | | |
Sold | 280 | 808 |
Issued in reinvestment of distributions | 3 | 107 |
Redeemed | (1,048) | (2,085) |
Net increase (decrease) | (765) | (1,170) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights
| Six months ended
June 30, 2004 | Years ended December 31, |
| (Unaudited) | 2003 | 2002 | 2001 | 2000 | 1999 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 48.98 | $ 38.64 | $ 49.04 | $ 56.42 | $ 71.72 | $ 55.66 |
Income from Investment Operations | | | | | | |
Net investment income (loss)D | .15 | .34 | .15 | .19 | .22 | .18 |
Net realized and unrealized gain (loss) | 1.55 | 10.34 | (10.39) | (7.14) | (4.98) | 22.23 |
Total from investment operations | 1.70 | 10.68 | (10.24) | (6.95) | (4.76) | 22.41 |
Distributions from net investment income | (.01) | (.34) | (.16) | (.23) | (.22) | (.18) |
Distributions in excess of net investment income | - | - | - | - | (.47) | (.02) |
Distributions from net realized gain | - | - | - | (.20) | (9.85) | (6.15) |
Total distributions | (.01) | (.34) | (.16) | (.43) | (10.54) | (6.35) |
Net asset value, end of period | $ 50.67 | $ 48.98 | $ 38.64 | $ 49.04 | $ 56.42 | $ 71.72 |
Total ReturnB,C | 3.47% | 27.65% | (20.89)% | (12.37)% | (7.16)% | 40.73% |
Ratios to Average Net AssetsE | | | | | |
Expenses before expense reductions | .84%A | .82% | 1.05% | .78% | .58% | .58% |
Expenses net of voluntary waivers, if any | .84%A | .82% | 1.05% | .78% | .58% | .58% |
Expenses net of all reductions | .82%A | .79% | 1.01% | .74% | .52% | .51% |
Net investment income (loss) | .59%A | .79% | .34% | .37% | .33% | .28% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 858 | $ 867 | $ 729 | $ 1,005 | $ 1,242 | $ 1,533 |
Portfolio turnover rate | 67%A | 80% | 79% | 102% | 267% | 309% |
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 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 any voluntary 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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended June 30, 2004 (Unaudited)
(Amounts in thousands except ratios)
1. Significant Accounting Policies.
Fidelity Trend Fund (the fund) 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 and is authorized to issue an unlimited number of shares. 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. Net asset value per share (NAV calculation) is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Equity securities, including restricted securities, for which market quotations are available are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) on the primary market or exchange on which they trade. Debt securities, including restricted securities, for which quotations are readily available are valued at their most recent bid prices (sales prices if the principal market is an exchange) in the principal market in which such securities are normally traded, as determined by recognized dealers in such securities, or securities are valued on the basis of information provided by a pricing service. Pricing services use valuation matrices that incorporate both dealer-supplied valuations and valuation models. If prices are not readily available or do not accurately reflect fair value for a security, or if a security's value has been materially affected by events occurring after the close of the exchange or market on which the security is principally traded, that security may be valued by another method that the Board of Trustees believes accurately reflects fair value. A security's valuation may differ depending on the method used for determining value. Price movements in futures contracts and ADRs, market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading may be reviewed in the course of making a good faith determination of a security's fair value. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued on the basis of amortized cost. Investments in open-end investment companies are valued at their net asset value each business day.
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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
1. Significant Accounting Policies - continued
Foreign Currency - continued
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 nontaxable distributions or capital gain distributions for income tax purposes. Interest income is 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 the funds in the trust.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), non-interested Trustees must defer receipt of a portion of, and may elect to defer receipt of an additional portion of, their annual compensation. Deferred amounts are treated as though equivalent dollar amounts had been invested in shares of the fund or are invested in a cross-section of other Fidelity funds, and are marked-to-market. 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 each 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.
Semiannual Report
1. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
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 futures transactions, foreign currency transactions, market discount, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 111,791 | | |
Unrealized depreciation | (48,420) | |
Net unrealized appreciation (depreciation) | $ 63,371 | |
Cost for federal income tax purposes | $ 796,474 | |
2. Operating Policies.
Repurchase Agreements. Fidelity Management & Research Company (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. These accounts are then invested in repurchase agreements that are collateralized by U.S. Treasury or Government obligations. The fund may also invest directly with institutions, in repurchase agreements that are collateralized by commercial paper obligations and corporate obligations. Collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. Collateral is marked-to-market daily and maintained at a value at least equal to the principal amount of the repurchase agreement (including accrued interest).
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.
Information regarding purchases and sales of securities is included under the caption "Other Information" at the end of the fund's Schedule of Investments.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
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 .28% 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 .60% of the fund's average net assets.
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 .18% 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.
Central Funds. The fund may invest in affiliated Central Funds managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR. The Central Funds are open-end investment companies available only to investment companies and other accounts managed by FMR and its affiliates. The Central Funds seek preservation of capital and current income and do not pay a management fee. Income distributions earned by the fund are recorded as income in the accompanying financial statements and totaled $68 for the period.
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 are shown under the caption "Other Information" at the end of the fund's Schedule of Investments.
Semiannual Report
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 participating fund has agreed to pay commitment fees on its pro rata portion of the line of credit. 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. 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. Cash collateral is invested in cash equivalents. The value of loaned securities and cash collateral at period end are disclosed on the fund's Statement of Assets and Liabilities.
7. 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 $105 for the period. In addition, through arrangements with the fund's custodian, 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 expenses by $1.
Semiannual Report
Proxy Voting Results
A special meeting of the fund's shareholders was held on April 14, 2004. The results of votes taken among shareholders on proposals before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1 |
To amend the Declaration of Trust to allow the Board of Trustees, if permitted by applicable law, to authorize fund mergers without shareholder approval.* |
| # of
Votes | % of
Votes |
Affirmative | 393,627,462.17 | 72.674 |
Against | 97,616,872.31 | 18.023 |
Abstain | 28,187,594.03 | 5.204 |
Broker
Non-Votes | 22,198,913.13 | 4.099 |
TOTAL | 541,630,841.64 | 100.000 |
PROPOSAL 2 |
To elect a Board of Trustees.* |
| # of
Votes | % of
Votes |
J. Michael Cook |
Affirmative | 506,564,089.36 | 93.526 |
Withheld | 35,066,752.28 | 6.474 |
TOTAL | 541,630,841.64 | 100.000 |
Ralph F. Cox |
Affirmative | 506,182,111.10 | 93.455 |
Withheld | 35,448,730.54 | 6.545 |
TOTAL | 541,630,841.64 | 100.000 |
Laura B. Cronin |
Affirmative | 506,016,360.69 | 93.425 |
Withheld | 35,614,480.95 | 6.575 |
TOTAL | 541,630,841.64 | 100.000 |
Robert M. Gates |
Affirmative | 506,759,839.03 | 93.562 |
Withheld | 34,871,002.61 | 6.438 |
TOTAL | 541,630,841.64 | 100.000 |
| # of
Votes | % of
Votes |
George H. Heilmeier |
Affirmative | 505,993,242.12 | 93.420 |
Withheld | 35,637,599.52 | 6.580 |
TOTAL | 541,630,841.64 | 100.000 |
Abigail P. Johnson |
Affirmative | 504,432,738.08 | 93.132 |
Withheld | 37,198,103.56 | 6.868 |
TOTAL | 541,630,841.64 | 100.000 |
Edward C. Johnson 3d |
Affirmative | 505,520,748.59 | 93.333 |
Withheld | 36,110,093.05 | 6.667 |
TOTAL | 541,630,841.64 | 100.000 |
Donald J. Kirk |
Affirmative | 506,131,899.03 | 93.446 |
Withheld | 35,498,942.61 | 6.554 |
TOTAL | 541,630,841.64 | 100.000 |
Marie L. Knowles |
Affirmative | 506,480,241.46 | 93.510 |
Withheld | 35,150,600.18 | 6.490 |
TOTAL | 541,630,841.64 | 100.000 |
Ned C. Lautenbach |
Affirmative | 506,837,473.22 | 93.576 |
Withheld | 34,793,368.42 | 6.424 |
TOTAL | 541,630,841.64 | 100.000 |
Marvin L. Mann |
Affirmative | 506,152,407.06 | 93.450 |
Withheld | 35,478,434.58 | 6.550 |
TOTAL | 541,630,841.64 | 100.000 |
William O. McCoy |
Affirmative | 506,463,828.41 | 93.507 |
Withheld | 35,167,013.23 | 6.493 |
TOTAL | 541,630,841.64 | 100.000 |
| # of
Votes | % of
Votes |
Robert L. Reynolds |
Affirmative | 506,194,886.12 | 93.458 |
Withheld | 35,435,955.52 | 6.542 |
TOTAL | 541,630,841.64 | 100.000 |
William S. Stavropoulos |
Affirmative | 506,861,086.60 | 93.581 |
Withheld | 34,769,755.04 | 6.419 |
TOTAL | 541,630,841.64 | 100.000 |
* Denotes trust-wide proposals and voting results. |
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
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 Shareholder
Servicing Agent
Fidelity Service Company, Inc.
Boston, MA
Custodian
JPMorgan Chase Bank
New York, NY
Fidelity's Growth Funds
Aggressive Growth Fund
Blue Chip Growth Fund
Blue Chip Value Fund
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Contrafund®
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Export and Multinational Fund
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Fidelity Value Discovery Fund
Focused Stock Fund
Growth Company Fund
Independence Fund
Large Cap Stock Fund
Leveraged Company Stock Fund
Low-Priced Stock Fund
Magellan® Fund
Mid-Cap Stock Fund
New Millennium Fund ®
OTC Portfolio
Small Cap Independence Fund
Small Cap Stock Fund
Stock Selector
Structured Large Cap Growth Fund
Structured Large Cap Value Fund
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Structured Mid Cap Value Fund
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Trend Fund
Value Fund
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
TRE-USAN-0804
1.787792.101
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. Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 9. 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 Trend Fund's Board of Trustees.
Item 10. Controls and Procedures
(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the Fidelity Trend Fund'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 Trust's last fiscal half-year that has materially affected, or is reasonably likely to materially affect, the Trust's internal control over financial reporting.
Item 11. 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 Trend Fund
By: | /s/Christine Reynolds |
| Christine Reynolds |
| President and Treasurer |
| |
Date: | August 10, 2004 |
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 10, 2004 |
By: | /s/Timothy F. Hayes |
| Timothy F. Hayes |
| Chief Financial Officer |
| |
Date: | August 10, 2004 |
