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 811-1193
Fidelity Magellan Fund
(Exact name of registrant as specified in charter)
82 Devonshire St., Boston, Massachusetts 02109
(Address of principal executive offices) (Zip code)
Scott C. Goebel, 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: | March 31 |
| |
Date of reporting period: | March 31, 2009 |
Item 1. Reports to Stockholders
Fidelity®
Magellan®
Fund
Annual Report
March 31, 2009
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | Ned Johnson's message to shareholders. |
Performance | <Click Here> | How the fund has done over time. |
Management's Discussion | <Click Here> | The manager's review of fund performance, strategy and outlook. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
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. |
Report of Independent Registered Public Accounting Firm | <Click Here> | |
Trustees and Officers | <Click Here> | |
Distributions | <Click Here> | |
Proxy Voting Results | <Click Here> | |
Prospectus | P-1 | |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) website at http://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 LLC or an affiliated company.
Annual 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 holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Annual Report
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
The stresses on the world's capital markets have shown few signs of abating thus far in 2009. Although government programs may eventually rekindle economic growth, corporate earnings are still weaker than we would like to see them, and the valuations of many securities remain at historically low levels. While financial markets are always unpredictable, there are 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 can be tax advantages and cost benefits to consider as well. 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
Annual Report
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended March 31, 2009 | Past 1
year | Past 5
years | Past 10
years |
Magellan® | -43.81% | -6.68% | -4.47% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Magellan®, a class of the fund, on March 31, 1999. The chart shows how the value of your investment would have changed, and also shows how the Standard & Poor's 500SM Index (S&P 500®) performed over the same period.
Annual Report
Market Recap: Although a rally in the final weeks of the period seemed a welcome sight for beleaguered equity investors, most looked back on the year ending March 31, 2009, with little reason to smile. A litany of market-moving events - from the collapse of investment bank Bear Stearns to the conservatorship of Fannie Mae and Freddie Mac to the government's rescue efforts on behalf of a succession of other large financial institutions - drove stock prices lower through most of the 12-month period amid ongoing concerns about slowing global growth and a virtual drying-up of credit availability. A massive flight to quality and away from risk thus defined the market, and even the U.S. government's aggressive moves to unfreeze credit, stabilize the financial system and reignite the domestic economy did little to bring investors back into stocks until late in the period. Against this troubling backdrop, the Standard & Poor's 500SM Index shed 38.09% of its value, with none of its market sectors able to break into positive ground. Meanwhile, the blue-chip Dow Jones Industrial AverageSM declined 35.94%, and the technology-laden NASDAQ Composite® Index dropped 32.29%. As poorly as these U.S. indexes performed for the year, global equities fared even worse, with the MSCI® EAFE® Index (Europe, Australasia, Far East) - - a measure of developed markets outside the U.S. and Canada - falling 46.42%.
Comments from Harry Lange, Portfolio Manager of Fidelity ® Magella n ®
Fund: During the past year, the fund's Retail Class shares returned -43.81%, trailing the S&P 500®. Unfavorable stock picking in energy, financials and information technology detracted, as did a large underweighting in consumer staples. In absolute terms, a stronger U.S. dollar dampened the performance of our foreign holdings. Finland's Nokia, our second-largest position at period end and an out-of-index holding, suffered from weaker-than-expected sales and a loss of market share. Other detractors included insurer American International Group (AIG), an out-of-index position in Canadian Natural Resources and diversified financials holdings Morgan Stanley - which I sold - and Bank of America. Not owning the shares of integrated energy company Exxon Mobil, a strong-performing index component, further detracted. Conversely, stock picking in materials helped, as did an underweighting and favorable picks in industrials. Timely ownership made industrial conglomerate General Electric our largest contributor. Other contributors included biotechnology holding Genentech, which was acquired during the period, office supply retailer Staples and gold stock Newmont Mining.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual 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 (October 1, 2008 to March 31, 2009).
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. 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. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
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. 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. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
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.
Annual Report
Shareholder Expense Example - continued
| Annualized Expense Ratio | Beginning
Account Value
October 1, 2008 | Ending
Account Value
March 31, 2009 | Expenses Paid
During Period*
October 1, 2008 to March 31, 2009 |
Magellan | .46% | | | |
Actual | | $ 1,000.00 | $ 709.70 | $ 1.96 |
HypotheticalA | | $ 1,000.00 | $ 1,022.64 | $ 2.32 |
Class K | .25% | | | |
Actual | | $ 1,000.00 | $ 710.40 | $ 1.07 |
HypotheticalA | | $ 1,000.00 | $ 1,023.68 | $ 1.26 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
Annual Report
Investment Changes (Unaudited)
Top Ten Stocks as of March 31, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Corning, Inc. | 7.7 | 4.5 |
Nokia Corp. sponsored ADR | 5.5 | 5.1 |
Applied Materials, Inc. | 3.9 | 2.6 |
Staples, Inc. | 3.9 | 3.1 |
Newmont Mining Corp. | 2.4 | 0.8 |
Medco Health Solutions, Inc. | 2.3 | 1.3 |
General Electric Co. | 2.2 | 0.0 |
Goldcorp, Inc. | 1.8 | 0.3 |
China Life Insurance Co. Ltd. (H Shares) | 1.5 | 0.5 |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 1.5 | 1.0 |
| 32.7 | |
Top Five Market Sectors as of March 31, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Information Technology | 34.2 | 29.3 |
Materials | 11.3 | 6.8 |
Consumer Discretionary | 11.3 | 9.2 |
Financials | 10.1 | 12.4 |
Health Care | 9.8 | 14.4 |
Asset Allocation (% of fund's net assets) |
As of March 31, 2009 * | As of September 30, 2008 ** |
 | Stocks 97.7% | | | Stocks 99.6% | |
 | Convertible
Securities 0.2% | | | Convertible
Securities 0.1% | |
 | Short-Term
Investments and
Net Other Assets 2.1% | | | Short-Term
Investments and
Net Other Assets 0.3% | |
* Foreign investments | 25.2% | | ** Foreign investments | 23.6% | |
Annual Report
Investments March 31, 2009
Showing Percentage of Net Assets
Common Stocks - 97.7% |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - 11.3% |
Auto Components - 0.1% |
Hyundai Mobis | 300,000 | | $ 17,539 |
Diversified Consumer Services - 0.0% |
Hillenbrand, Inc. | 500,000 | | 8,005 |
Hotels, Restaurants & Leisure - 0.6% |
Burger King Holdings, Inc. | 500,000 | | 11,475 |
Ctrip.com International Ltd. sponsored ADR | 25,108 | | 688 |
Melco PBL Entertainment (Macau) Ltd. sponsored ADR (a)(d) | 274,700 | | 901 |
Starbucks Corp. (a) | 8,562,616 | | 95,131 |
| | 108,195 |
Household Durables - 3.8% |
D.R. Horton, Inc. | 11,295,100 | | 109,562 |
KB Home (e) | 4,088,000 | | 53,880 |
Lennar Corp. Class A | 10,131,376 | | 76,087 |
M.D.C. Holdings, Inc. | 2,000,000 | | 62,280 |
Mohawk Industries, Inc. (a) | 1,000,000 | | 29,870 |
MRV Engenharia e Participacoes SA | 1,153,900 | | 6,865 |
Pulte Homes, Inc. | 12,638,715 | | 138,141 |
Ryland Group, Inc. | 1,172,024 | | 19,526 |
Toll Brothers, Inc. (a)(e) | 11,367,517 | | 206,434 |
| | 702,645 |
Internet & Catalog Retail - 0.1% |
B2W Companhia Global Do Varejo | 1,000,000 | | 9,192 |
Leisure Equipment & Products - 0.0% |
Brunswick Corp. | 621,943 | | 2,146 |
Media - 1.4% |
Ascent Media Corp. (a) | 144,656 | | 3,616 |
Cinemark Holdings, Inc. | 238,900 | | 2,243 |
Comcast Corp. Class A (special) (non-vtg.) | 4,000,000 | | 51,480 |
Informa PLC | 5,000,000 | | 18,832 |
The DIRECTV Group, Inc. (a) | 7,500,000 | | 170,925 |
Virgin Media, Inc. | 4,500,000 | | 21,600 |
| | 268,696 |
Multiline Retail - 0.2% |
Pantaloon Retail India Ltd. | 194,608 | | 639 |
Pantaloon Retail India Ltd. Class B | 19,460 | | 45 |
Pinault Printemps-Redoute SA (d) | 500,000 | | 32,062 |
| | 32,746 |
Specialty Retail - 3.9% |
Staples, Inc. (e) | 40,090,255 | | 726,035 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - continued |
Textiles, Apparel & Luxury Goods - 1.2% |
Lululemon Athletica, Inc. (a)(d) | 674,500 | | $ 5,841 |
NIKE, Inc. Class B | 3,597,000 | | 168,663 |
Polo Ralph Lauren Corp. Class A | 1,150,000 | | 48,588 |
| | 223,092 |
TOTAL CONSUMER DISCRETIONARY | | 2,098,291 |
CONSUMER STAPLES - 2.7% |
Food & Staples Retailing - 1.9% |
CVS Caremark Corp. | 9,341,972 | | 256,811 |
United Natural Foods, Inc. (a)(e) | 4,143,500 | | 78,602 |
Wumart Stores, Inc. (H Shares) | 25,000,000 | | 17,741 |
| | 353,154 |
Food Products - 0.3% |
Cosan Ltd. Class A (a) | 3,181,700 | | 7,795 |
Cosan SA Industria e Comercio (a) | 3,000,000 | | 12,507 |
McCormick & Co., Inc. (non-vtg.) | 500,000 | | 14,785 |
Ralcorp Holdings, Inc. (a) | 400,000 | | 21,552 |
| | 56,639 |
Household Products - 0.5% |
Energizer Holdings, Inc. (a) | 2,000,000 | | 99,380 |
Personal Products - 0.0% |
Bare Escentuals, Inc. (a) | 76,400 | | 313 |
TOTAL CONSUMER STAPLES | | 509,486 |
ENERGY - 6.5% |
Energy Equipment & Services - 1.1% |
Atwood Oceanics, Inc. (a) | 1,000,000 | | 16,590 |
Nabors Industries Ltd. (a) | 1,000,000 | | 9,990 |
Noble Corp. | 3,000,000 | | 72,270 |
Smith International, Inc. | 557,200 | | 11,969 |
Transocean Ltd. (a) | 1,700,000 | | 100,028 |
| | 210,847 |
Oil, Gas & Consumable Fuels - 5.4% |
Apache Corp. | 967,910 | | 62,033 |
Canadian Natural Resources Ltd. | 3,172,300 | | 123,097 |
Chesapeake Energy Corp. | 10,000,000 | | 170,600 |
Denbury Resources, Inc. (a) | 7,500,000 | | 111,450 |
Energy Transfer Equity LP | 1,000,000 | | 21,130 |
Common Stocks - continued |
| Shares | | Value (000s) |
ENERGY - continued |
Oil, Gas & Consumable Fuels - continued |
Enterprise Products Partners LP | 700,000 | | $ 15,575 |
EOG Resources, Inc. | 727,200 | | 39,821 |
Hess Corp. | 4,191,500 | | 227,179 |
Marathon Oil Corp. | 262,188 | | 6,893 |
Massey Energy Co. | 1,000,000 | | 10,120 |
OAO Gazprom sponsored ADR | 2,000,000 | | 29,800 |
Occidental Petroleum Corp. | 1,000,000 | | 55,650 |
Oil Search Ltd. | 10,000,000 | | 36,733 |
Plains Exploration & Production Co. (a) | 2,752,745 | | 47,430 |
Reliance Industries Ltd. | 1,000,000 | | 30,130 |
Sunoco, Inc. | 700,000 | | 18,536 |
Westernzagros Resources Ltd. (a) | 1,000,000 | | 460 |
| | 1,006,637 |
TOTAL ENERGY | | 1,217,484 |
FINANCIALS - 10.0% |
Capital Markets - 2.4% |
Charles Schwab Corp. | 8,547,000 | | 132,479 |
Evercore Partners, Inc. Class A | 87,600 | | 1,353 |
Fortress Investment Group LLC (d) | 2,500,000 | | 6,275 |
Franklin Resources, Inc. | 2,110,800 | | 113,709 |
GLG Partners, Inc. | 949,950 | | 2,698 |
Goldman Sachs Group, Inc. | 1,203,900 | | 127,637 |
Merriman Curhan Ford Group, Inc. (a) | 105,086 | | 46 |
T. Rowe Price Group, Inc. | 2,500,000 | | 72,150 |
| | 456,347 |
Commercial Banks - 1.0% |
Banco do Brasil SA | 1,301,000 | | 9,608 |
CapitalSource, Inc. (d) | 5,000,000 | | 6,100 |
Mitsubishi UFJ Financial Group, Inc. sponsored ADR | 600,000 | | 2,952 |
PNC Financial Services Group, Inc. | 500,000 | | 14,645 |
SVB Financial Group (a) | 1,212,400 | | 24,260 |
Wells Fargo & Co. | 9,703,704 | | 138,181 |
| | 195,746 |
Consumer Finance - 0.1% |
SLM Corp. (a) | 3,500,000 | | 17,325 |
Diversified Financial Services - 1.6% |
Bank of America Corp. | 5,367,104 | | 36,604 |
BM&F BOVESPA SA | 749,474 | | 2,278 |
Common Stocks - continued |
| Shares | | Value (000s) |
FINANCIALS - continued |
Diversified Financial Services - continued |
CIT Group, Inc. | 2,358,398 | | $ 6,721 |
Hyde Park Acquisition Corp. unit (a) | 200,000 | | 880 |
JPMorgan Chase & Co. | 9,208,100 | | 244,751 |
| | 291,234 |
Insurance - 3.6% |
ACE Ltd. | 3,869,909 | | 156,344 |
American International Group, Inc. (d) | 16,950,261 | | 16,950 |
Berkshire Hathaway, Inc. Class A (a) | 557 | | 48,292 |
China Life Insurance Co. Ltd. (H Shares) | 86,231,000 | | 283,620 |
Endurance Specialty Holdings Ltd. | 555,800 | | 13,862 |
Everest Re Group Ltd. | 700,000 | | 49,560 |
MetLife, Inc. | 1,731,857 | | 39,434 |
Reinsurance Group of America, Inc. | 339,549 | | 10,998 |
Willis Group Holdings Ltd. | 2,000,000 | | 44,000 |
| | 663,060 |
Real Estate Investment Trusts - 1.2% |
CBL & Associates Properties, Inc. (d) | 3,000,000 | | 7,080 |
Developers Diversified Realty Corp. | 4,604,700 | | 9,808 |
Kimco Realty Corp. | 679,800 | | 5,180 |
Simon Property Group, Inc. | 5,513,259 | | 190,979 |
Vornado Realty Trust | 508,885 | | 16,915 |
| | 229,962 |
Real Estate Management & Development - 0.1% |
Iguatemi Empresa de Shopping Centers SA | 959,500 | | 5,729 |
Indiabulls Real Estate Ltd. | 5,000,000 | | 9,831 |
| | 15,560 |
TOTAL FINANCIALS | | 1,869,234 |
HEALTH CARE - 9.8% |
Biotechnology - 1.6% |
Biogen Idec, Inc. (a) | 1,398,510 | | 73,310 |
Celgene Corp. (a) | 1,000,000 | | 44,400 |
Cephalon, Inc. (a)(d) | 778,730 | | 53,032 |
Genzyme Corp. (a) | 1,000,000 | | 59,390 |
OSI Pharmaceuticals, Inc. (a) | 1,198,900 | | 45,870 |
United Therapeutics Corp. (a) | 200,000 | | 13,218 |
| | 289,220 |
Common Stocks - continued |
| Shares | | Value (000s) |
HEALTH CARE - continued |
Health Care Equipment & Supplies - 1.8% |
Becton, Dickinson & Co. | 300 | | $ 20 |
C.R. Bard, Inc. | 1,869,300 | | 149,021 |
Covidien Ltd. | 3,000,000 | | 99,720 |
Greatbatch, Inc. (a)(e) | 2,181,700 | | 42,216 |
Integra LifeSciences Holdings Corp. (a)(e) | 1,500,000 | | 37,095 |
Mindray Medical International Ltd. sponsored ADR | 51,400 | | 951 |
| | 329,023 |
Health Care Providers & Services - 3.0% |
Amedisys, Inc. (a)(d) | 800,000 | | 21,992 |
Brookdale Senior Living, Inc. (e) | 5,367,200 | | 27,104 |
Express Scripts, Inc. (a) | 1,000,000 | | 46,170 |
Henry Schein, Inc. (a) | 903,653 | | 36,155 |
LHC Group, Inc. (a) | 500,000 | | 11,140 |
Medco Health Solutions, Inc. (a) | 10,150,100 | | 419,605 |
| | 562,166 |
Life Sciences Tools & Services - 0.0% |
Affymetrix, Inc. (a) | 28,700 | | 94 |
Pharmaceuticals - 3.4% |
Allergan, Inc. | 2,075,984 | | 99,149 |
Matrixx Initiatives, Inc. (a) | 400,000 | | 6,560 |
Medicis Pharmaceutical Corp. Class A | 2,000,000 | | 24,740 |
Pfizer, Inc. | 8,000,000 | | 108,960 |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 6,000,000 | | 270,300 |
Wyeth | 3,000,000 | | 129,120 |
| | 638,829 |
TOTAL HEALTH CARE | | 1,819,332 |
INDUSTRIALS - 8.5% |
Aerospace & Defense - 0.5% |
Raytheon Co. | 2,000,000 | | 77,880 |
Raytheon Co. warrants 6/16/11 (a) | 204,836 | | 1,372 |
Stanley, Inc. (a) | 500,000 | | 12,695 |
| | 91,947 |
Air Freight & Logistics - 0.0% |
Forward Air Corp. | 390,000 | | 6,330 |
Common Stocks - continued |
| Shares | | Value (000s) |
INDUSTRIALS - continued |
Airlines - 1.2% |
Delta Air Lines, Inc. (a) | 34,224,726 | | $ 192,685 |
JetBlue Airways Corp. (a) | 6,269,652 | | 22,884 |
| | 215,569 |
Building Products - 0.1% |
Masco Corp. | 3,499,700 | | 24,428 |
Commercial Services & Supplies - 0.1% |
Clean Harbors, Inc. (a) | 200,000 | | 9,600 |
Construction & Engineering - 0.3% |
Chicago Bridge & Iron Co. NV (NY Shares) | 3,238,800 | | 20,307 |
China Railway Construction Corp. Ltd. (H Shares) | 8,000,000 | | 10,446 |
MYR Group, Inc. (a)(e) | 1,810,900 | | 27,616 |
| | 58,369 |
Electrical Equipment - 0.2% |
AMETEK, Inc. | 500,000 | | 15,635 |
China High Speed Transmission Equipment Group Co. Ltd. | 10,000,000 | | 14,322 |
Energy Conversion Devices, Inc. (a)(d) | 700,000 | | 9,289 |
| | 39,246 |
Industrial Conglomerates - 2.2% |
General Electric Co. | 39,924,800 | | 403,640 |
Machinery - 1.6% |
Cummins, Inc. | 2,500,000 | | 63,625 |
Danaher Corp. | 3,000,000 | | 162,660 |
SPX Corp. | 1,600,000 | | 75,216 |
| | 301,501 |
Professional Services - 2.1% |
Equifax, Inc. (e) | 8,485,262 | | 207,465 |
Manpower, Inc. | 413,882 | | 13,050 |
Monster Worldwide, Inc. (a)(e) | 8,951,938 | | 72,958 |
Robert Half International, Inc. | 5,124,900 | | 91,377 |
| | 384,850 |
Road & Rail - 0.2% |
Localiza Rent a Car SA | 4,500,000 | | 16,103 |
Ryder System, Inc. | 1,000,000 | | 28,310 |
| | 44,413 |
Transportation Infrastructure - 0.0% |
The Sumitomo Warehouse Co. Ltd. | 1,000,000 | | 3,896 |
TOTAL INDUSTRIALS | | 1,583,789 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - 34.2% |
Communications Equipment - 16.6% |
BYD Electronic International Co. Ltd. | 35,982,000 | | $ 12,721 |
Ciena Corp. (a) | 1,024,282 | | 7,969 |
Cisco Systems, Inc. (a) | 13,950,300 | | 233,947 |
Corning, Inc. (e) | 107,987,125 | | 1,432,992 |
Foxconn International Holdings Ltd. (a) | 5,000,000 | | 2,116 |
Juniper Networks, Inc. (a) | 12,817,200 | | 193,027 |
Nokia Corp. sponsored ADR | 87,518,200 | | 1,021,337 |
QUALCOMM, Inc. | 5,000,000 | | 194,550 |
| | 3,098,659 |
Computers & Peripherals - 2.9% |
Apple, Inc. (a) | 2,500,000 | | 262,800 |
SanDisk Corp. (a) | 6,817,866 | | 86,246 |
Seagate Technology (e) | 31,910,005 | | 191,779 |
| | 540,825 |
Electronic Equipment & Components - 2.0% |
Amphenol Corp. Class A | 4,736,900 | | 134,954 |
FLIR Systems, Inc. (a) | 4,638,800 | | 95,003 |
Hon Hai Precision Industry Co. Ltd. (Foxconn) | 41,400,000 | | 93,572 |
Ingram Micro, Inc. Class A (a) | 3,000,000 | | 37,920 |
Itron, Inc. (a) | 100,000 | | 4,735 |
| | 366,184 |
Internet Software & Services - 1.3% |
Google, Inc. Class A (sub. vtg.) (a) | 601,000 | | 209,184 |
VeriSign, Inc. (a) | 2,000,000 | | 37,740 |
WebMD Health Corp. Class A (a) | 95,700 | | 2,134 |
| | 249,058 |
IT Services - 2.4% |
Accenture Ltd. Class A | 2,500,000 | | 68,725 |
CACI International, Inc. Class A (a) | 500,000 | | 18,245 |
Cognizant Technology Solutions Corp. Class A (a) | 9,318,596 | | 193,734 |
Lender Processing Services, Inc. | 4,225,400 | | 129,339 |
The Western Union Co. | 2,500,000 | | 31,425 |
| | 441,468 |
Semiconductors & Semiconductor Equipment - 7.7% |
Applied Materials, Inc. (e) | 67,904,537 | | 729,974 |
ASML Holding NV (NY Shares) | 10,345,201 | | 181,144 |
Himax Technologies, Inc. sponsored ADR | 2,000,000 | | 5,600 |
Lam Research Corp. (a) | 499,200 | | 11,367 |
MEMC Electronic Materials, Inc. (a)(e) | 11,330,000 | | 186,832 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Semiconductors & Semiconductor Equipment - continued |
NVIDIA Corp. (a) | 3,000,000 | | $ 29,580 |
O2Micro International Ltd. sponsored ADR (a) | 700,000 | | 2,394 |
Samsung Electronics Co. Ltd. | 265,233 | | 110,317 |
Skyworks Solutions, Inc. (a) | 3,000,000 | | 24,180 |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 7,000,000 | | 62,650 |
Teradyne, Inc. (a)(e) | 11,529,691 | | 50,500 |
Texas Instruments, Inc. | 3,000,000 | | 49,530 |
| | 1,444,068 |
Software - 1.3% |
Adobe Systems, Inc. (a) | 2,500,000 | | 53,475 |
Autodesk, Inc. (a) | 1,000,000 | | 16,810 |
Longtop Financial Technologies Ltd. ADR (a) | 29,200 | | 620 |
Oracle Corp. | 7,197,500 | | 130,059 |
SAP AG sponsored ADR (d) | 1,000,000 | | 35,290 |
| | 236,254 |
TOTAL INFORMATION TECHNOLOGY | | 6,376,516 |
MATERIALS - 11.2% |
Chemicals - 2.8% |
Air Products & Chemicals, Inc. | 1,500,000 | | 84,375 |
Ecolab, Inc. | 2,000,000 | | 69,460 |
FMC Corp. | 2,241,790 | | 96,711 |
Givaudan SA (d) | 100,000 | | 51,832 |
Minerals Technologies, Inc. | 500,000 | | 16,025 |
Monsanto Co. | 2,117,600 | | 175,973 |
Symrise AG | 2,000,000 | | 23,668 |
| | 518,044 |
Construction Materials - 0.3% |
Eagle Materials, Inc. | 2,000,000 | | 48,500 |
Metals & Mining - 8.0% |
Agnico-Eagle Mines Ltd. | 1,147,600 | | 65,982 |
Alcoa, Inc. | 16,049,100 | | 117,800 |
Eldorado Gold Corp. (a) | 3,000,000 | | 27,133 |
Freeport-McMoRan Copper & Gold, Inc. Class B | 1,500,000 | | 57,165 |
Goldcorp, Inc. | 10,000,000 | | 336,705 |
Kinross Gold Corp. | 5,000,000 | | 90,880 |
Lihir Gold Ltd. (a) | 25,666,295 | | 58,057 |
Newcrest Mining Ltd. | 5,892,492 | | 135,612 |
Common Stocks - continued |
| Shares | | Value (000s) |
MATERIALS - continued |
Metals & Mining - continued |
Newmont Mining Corp. | 9,852,800 | | $ 441,011 |
Randgold Resources Ltd. sponsored ADR | 3,012,766 | | 163,744 |
| | 1,494,089 |
Paper & Forest Products - 0.1% |
Weyerhaeuser Co. | 730,400 | | 20,137 |
TOTAL MATERIALS | | 2,080,770 |
TELECOMMUNICATION SERVICES - 2.6% |
Diversified Telecommunication Services - 1.1% |
Embarq Corp. | 333,051 | | 12,606 |
FairPoint Communications, Inc. | 109,213 | | 85 |
Level 3 Communications, Inc. (a) | 1,331,971 | | 1,225 |
Telefonica SA sponsored ADR | 3,000,000 | | 178,860 |
| | 192,776 |
Wireless Telecommunication Services - 1.5% |
America Movil SAB de CV Series L sponsored ADR | 3,905,500 | | 105,761 |
Bharti Airtel Ltd. (a) | 6,100,000 | | 75,499 |
Sprint Nextel Corp. (a) | 28,000,000 | | 99,960 |
| | 281,220 |
TOTAL TELECOMMUNICATION SERVICES | | 473,996 |
UTILITIES - 0.9% |
Electric Utilities - 0.5% |
Entergy Corp. | 1,400,000 | | 95,326 |
Multi-Utilities - 0.4% |
Sempra Energy | 1,700,000 | | 78,608 |
TOTAL UTILITIES | | 173,934 |
TOTAL COMMON STOCKS (Cost $23,652,189) | 18,202,832 |
Convertible Preferred Stocks - 0.1% |
| | | |
FINANCIALS - 0.1% |
Diversified Financial Services - 0.0% |
CIT Group, Inc. Series C, 8.75% | 338,400 | | 6,007 |
Convertible Preferred Stocks - continued |
| Shares | | Value (000s) |
FINANCIALS - continued |
Insurance - 0.1% |
American International Group, Inc. Series A, 8.50% | 2,666,700 | | $ 14,134 |
TOTAL CONVERTIBLE PREFERRED STOCKS (Cost $216,923) | 20,141 |
Convertible Bonds - 0.1% |
| Principal Amount (000s) | | |
INDUSTRIALS - 0.0% |
Electrical Equipment - 0.0% |
Sunpower Corp. 1.25% 2/15/27 | | $ 9,980 | | 7,048 |
MATERIALS - 0.1% |
Metals & Mining - 0.1% |
Alcoa, Inc. 5.25% 3/15/14 | | 13,750 | | 18,184 |
TOTAL CONVERTIBLE BONDS (Cost $29,668) | 25,232 |
Money Market Funds - 2.8% |
| Shares | | |
Fidelity Cash Central Fund, 0.52% (b) | 410,177,373 | | 410,177 |
Fidelity Securities Lending Cash Central Fund, 0.46% (b)(c) | 117,882,210 | | 117,882 |
TOTAL MONEY MARKET FUNDS (Cost $528,059) | 528,059 |
TOTAL INVESTMENT PORTFOLIO - 100.7% (Cost $24,426,839) | | 18,776,264 |
NET OTHER ASSETS - (0.7)% | | (135,774) |
NET ASSETS - 100% | $ 18,640,490 |
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 |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned
(Amounts in thousands) |
Fidelity Cash Central Fund | $ 3,977 |
Fidelity Securities Lending Cash Central Fund | 12,302 |
Total | $ 16,279 |
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
(Amounts in thousands) | Value,
beginning of
period | Purchases | Sales
Proceeds | Dividend
Income | Value,
end of
period |
Applied Materials, Inc. | $ 721,870 | $ 413,759 | $ - | $ 11,856 | $ 729,974 |
Brookdale Senior Living, Inc. | 92,426 | 33,380 | 1,914 | - | 27,104 |
Corning, Inc. | 1,953,793 | 513,289 | 358,055 | 18,792 | 1,432,992 |
Equifax, Inc. | 292,572 | - | - | 1,358 | 207,465 |
FLIR Systems, Inc. | 259,941 | - | 84,967 | - | - |
Greatbatch, Inc. | 40,165 | - | - | - | 42,216 |
Integra LifeSciences Holdings Corp. | 21,735 | 37,025 | - | - | 37,095 |
KB Home | 19,784 | 63,534 | - | 1,483 | 53,880 |
MBIA, Inc. | 157,333 | - | 103,241 | - | - |
MEMC Electronic Materials, Inc. | - | 159,057 | - | - | 186,832 |
Mentor Corp. | 79,603 | - | 94,414 | 1,238 | - |
Affiliates
(Amounts in thousands) | Value,
beginning of
period | Purchases | Sales
Proceeds | Dividend
Income | Value,
end of
period |
Monster Worldwide, Inc. | $ 144,096 | $ 89,413 | $ 35,507 | $ - | $ 72,958 |
MYR Group, Inc. | 25,353 | - | - | - | 27,616 |
OSI Pharmaceuticals, Inc. | 119,607 | - | 71,107 | - | - |
Seagate Technology | 115,170 | 119,078 | 105,566 | 805 | 191,779 |
Staples, Inc. | 1,068,118 | 39,566 | 238,014 | 3,307 | 726,035 |
Teradyne, Inc. | 136,989 | 2,003 | - | - | 50,500 |
Toll Brothers, Inc. | 164,360 | 81,739 | - | - | 206,434 |
Town Sports International Holdings, Inc. | 10,797 | - | 13,974 | - | - |
United Natural Foods, Inc. | 77,525 | - | - | - | 78,602 |
Total | $ 5,501,237 | $ 1,551,843 | $ 1,106,759 | $ 38,839 | $ 4,071,482 |
Other Information |
The following is a summary of the inputs used, as of March 31, 2009, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description
(Amounts in thousands) | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities | $ 18,776,264 | $ 17,968,093 | $ 808,171 | $ - |
The following is a reconciliation of assets for which Level 3 inputs were used in determining value: |
(Amounts in thousands) | Investments in Securities |
Beginning Balance | $ 25,353 |
Total Realized Gain (Loss) | 94 |
Total Unrealized Gain (Loss) | 2,263 |
Cost of Purchases | - |
Proceeds of Sales | (94) |
Amortization/Accretion | - |
Transfer in/out of Level 3 | (27,616) |
Ending Balance | $ - |
The information used in the above reconciliation represents fiscal year to date activity for any Investment Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represents either the beginning value (for transfers in), or the ending value (for transfers out) of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 74.8% |
Finland | 5.5% |
Canada | 3.5% |
Switzerland | 2.0% |
China | 1.7% |
Bermuda | 1.6% |
Israel | 1.5% |
Cayman Islands | 1.1% |
Netherlands | 1.1% |
United Kingdom | 1.0% |
Spain | 1.0% |
Others (individually less than 1%) | 5.2% |
| 100.0% |
Income Tax Information |
At March 31, 2009, the fund had a capital loss carryforward of approximately $1,232,702,000 all of which will expire on March 31, 2017. |
The fund intends to elect to defer to its fiscal year ending March 31, 2010 approximately $2,512,574,000 of losses recognized during the period November 1, 2008 to March 31, 2009. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | March 31, 2009 |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $110,612) - See accompanying schedule: Unaffiliated issuers (cost $18,521,169) | $ 14,176,723 | |
Fidelity Central Funds (cost $528,059) | 528,059 | |
Other affiliated issuers (cost $5,377,611) | 4,071,482 | |
Total Investments (cost $24,426,839) | | $ 18,776,264 |
Receivable for investments sold | | 9,673 |
Receivable for fund shares sold | | 12,104 |
Dividends receivable | | 16,837 |
Interest receivable | | 28 |
Distributions receivable from Fidelity Central Funds | | 263 |
Prepaid expenses | | 195 |
Other receivables | | 893 |
Total assets | | 18,816,257 |
| | |
Liabilities | | |
Payable for investments purchased | $ 30,356 | |
Payable for fund shares redeemed | 18,195 | |
Accrued management fee | 3,871 | |
Other affiliated payables | 4,334 | |
Other payables and accrued expenses | 1,129 | |
Collateral on securities loaned, at value | 117,882 | |
Total liabilities | | 175,767 |
| | |
Net Assets | | $ 18,640,490 |
Net Assets consist of: | | |
Paid in capital | | $ 28,102,480 |
Undistributed net investment income | | 31,827 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (3,843,141) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | (5,650,676) |
Net Assets | | $ 18,640,490 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | March 31, 2009 |
| | |
Magellan:
Net Asset Value, offering price and redemption price per share ($17,225,097 ÷ 385,995 shares) | | $ 44.63 |
| | |
Class K:
Net Asset Value, offering price and redemption price per share ($1,415,393 ÷ 31,728 shares) | | $ 44.61 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements - continued
Statement of Operations
Amounts in thousands | Year ended March 31, 2009 |
| | |
Investment Income | | |
Dividends (including $38,839 earned from other affiliated issuers) | | $ 329,502 |
Interest | | 300 |
Income from Fidelity Central Funds | | 16,279 |
Total income | | 346,081 |
| | |
Expenses | | |
Management fee
Basic fee | $ 158,280 | |
Performance adjustment | (24,870) | |
Transfer agent fees | 59,240 | |
Accounting and security lending fees | 2,197 | |
Custodian fees and expenses | 1,384 | |
Independent trustees' compensation | 156 | |
Depreciation in deferred trustee compensation account | (62) | |
Registration fees | 142 | |
Audit | 290 | |
Legal | 185 | |
Interest | 30 | |
Miscellaneous | 3,924 | |
Total expenses before reductions | 200,896 | |
Expense reductions | (971) | 199,925 |
Net investment income (loss) | | 146,156 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (3,630,013) | |
Other affiliated issuers | (137,032) | |
Foreign currency transactions | (3,183) | |
Total net realized gain (loss) | | (3,770,228) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (12,247,638) | |
Assets and liabilities in foreign currencies | (146) | |
Total change in net unrealized appreciation (depreciation) | | (12,247,784) |
Net gain (loss) | | (16,018,012) |
Net increase (decrease) in net assets resulting from operations | | $ (15,871,856) |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
Amounts in thousands | Year ended
March 31,
2009 | Year ended
March 31,
2008 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 146,156 | $ 160,421 |
Net realized gain (loss) | (3,770,228) | 4,495,166 |
Change in net unrealized appreciation (depreciation) | (12,247,784) | (3,360,337) |
Net increase (decrease) in net assets resulting from operations | (15,871,856) | 1,295,250 |
Distributions to shareholders from net investment income | (51,393) | (198,794) |
Distributions to shareholders from net realized gain | (1,309,645) | (5,306,194) |
Total distributions | (1,361,038) | (5,504,988) |
Share transactions - net increase (decrease) | (2,448,900) | (623,088) |
Total increase (decrease) in net assets | (19,681,794) | (4,832,826) |
| | |
Net Assets | | |
Beginning of period | 38,322,284 | 43,155,110 |
End of period (including undistributed net investment income of $31,827 and undistributed net investment income of $3,217, respectively) | $ 18,640,490 | $ 38,322,284 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Magellan
Years ended March 31, | 2009 | 2008 | 2007 | 2006 | 2005 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 82.26 | $ 91.32 | $ 112.80 | $ 101.00 | $ 99.13 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .32 | .34 | .37 | .91 | 1.26 E |
Net realized and unrealized gain (loss) | (34.98) | 2.72 | 3.31 | 14.87 | 1.85 |
Total from investment operations | (34.66) | 3.06 | 3.68 | 15.78 | 3.11 |
Distributions from net investment income | (.11) | (.44) | (.50) | (.98) | (1.24) |
Distributions from net realized gain | (2.86) | (11.68) | (24.66) | (3.00) | - |
Total distributions | (2.97) | (12.12) | (25.16) | (3.98) | (1.24) |
Net asset value, end of period | $ 44.63 | $ 82.26 | $ 91.32 | $ 112.80 | $ 101.00 |
Total Return A | (43.81)% | 2.08% | 3.21% | 15.89% | 3.14% |
Ratios to Average Net Assets C, F | | | | | |
Expenses before reductions | .71% | .73% | .54% | .59% | .63% |
Expenses net of fee waivers, if any | .71% | .73% | .54% | .59% | .63% |
Expenses net of all reductions | .71% | .72% | .53% | .56% | .62% |
Net investment income (loss) | .51% | .37% | .41% | .86% | 1.26% E |
Supplemental Data | | | | | |
Net assets, end of period (in millions) | $ 17,225 | $ 38,322 | $ 43,155 | $ 50,473 | $ 56,891 |
Portfolio turnover rate D | 67% | 57% | 41% | 74% | 6% |
A Total returns would have been lower had certain expenses not been reduced during the periods shown.
B Calculated based on average shares outstanding during the period.
C Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
D Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
E Investment income per share reflects a special dividend which amounted to $.35 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .91%.
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. 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.
Annual Report
Financial Highlights - Class K
Year ended March 31, | 2009 G |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 85.82 |
Income from Investment Operations | |
Net investment income (loss) D | .30 |
Net realized and unrealized gain (loss) | (41.32) |
Total from investment operations | (41.02) |
Distributions from net investment income | (.19) |
Net asset value, end of period | $ 44.61 |
Total Return B, C | (47.79)% |
Ratios to Average Net Assets E, H | |
Expenses before reductions | .55% A |
Expenses net of fee waivers, if any | .55%A |
Expenses net of all reductions | .55%A |
Net investment income (loss) | .79%A |
Supplemental Data | |
Net assets, end of period (in millions) | $ 1,415 |
Portfolio turnover rate F | 67% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period May 9, 2008 (commencement of sale of shares) to March 31, 2009.
H 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.
Annual Report
Notes to Financial Statements
For the period ended March 31, 2009
(Amounts in thousands except ratios)
1. Organization.
Fidelity Magellan Fund (the Fund) is a fund of Fidelity Magellan Fund (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Magellan and Class K 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. After the commencement of Class K, the Fund began offering conversion privileges between Magellan and Class K to eligible shareholders of Magellan. 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 fees incurred. Certain expense reductions also differ by class.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
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. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Annual Report
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. 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, 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, including the Fidelity Central 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 reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality, and developments in foreign markets which are monitored by evaluating the performance of ADRs, futures contracts and exchange-traded funds. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund adopted the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Security Valuation - continued
The three levels of the hierarchy under SFAS 157 are described below:
Level 1 | Quoted prices in active markets for identical securities. |
Level 2 | Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. |
Level 3 | Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available. |
Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.
The aggregate value by input level, as of March 31, 2009, for the Fund's investments, as well as a reconciliation of assets for which significant unobservable inputs (Level 3) were used in determining value, is included at the end of the Fund's Schedule of Investments.
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. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally
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3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. 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 Fidelity 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. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
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. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. There are no unrecognized tax benefits in the accompanying financial statements. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. 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.
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Notes to Financial Statements - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
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. In addition, the Fund will claim 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 foreign currency transactions, partnerships, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The tax-basis components of distributable earnings and the federal tax cost as of period end were as follows:
Unrealized appreciation | $ 1,873,016 |
Unrealized depreciation | (7,621,558) |
Net unrealized appreciation (depreciation) | (5,748,542) |
Undistributed ordinary income | 37,463 |
Capital loss carryforward | (1,232,702) |
| |
Cost for federal income tax purposes | $ 24,524,806 |
The tax character of distributions paid was as follows:
| March 31, 2009 | March 31, 2008 |
Ordinary Income | $ 51,393 | $ 198,794 |
Long-term Capital Gains | 1,309,645 | 5,306,194 |
Total | $ 1,361,038 | $ 5,504,988 |
4. 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
Annual Report
4. Operating Policies - continued
Repurchase Agreements - continued
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.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $18,971,356 and $22,574,325, respectively.
6. 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 .26% 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 relative investment performance of the retail class of the Fund, Magellan, as compared to an appropriate benchmark index. For the period, the total annual management fee rate, including the performance adjustment, was .47% of the Fund's average net assets.
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 Magellan. FIIOC receives an asset-based fee of .05% of Class K's average net assets. FIIOC pays
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each class were as follows:
| Amount | % of
Average
Net Assets |
Magellan | $ 58,994 | .21 |
Class K | 246 | .06 |
| $ 59,240 | |
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.
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 $686 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Daily
Loan Balance | Weighted Average
Interest Rate | Interest
Expense |
Borrower | $ 47,941 | 1.42% | $ 30 |
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $3.5 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 amounted to $94 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Annual Report
8. 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. Security lending income is presented in the Statement of Operations as a component income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $12,302.
9. Expense Reductions.
FMR voluntarily agreed to reimburse a portion of Magellan's operating expenses. During this period, this reimbursement reduced the class' expenses by $15.
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 $736 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 the period, these credits reduced the Fund's custody expenses by $9. During the period, credits reduced each class' transfer agent expense as noted in the table below.
| Transfer Agent
expense reduction |
Magellan | $ 211 |
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Years ended March 31, | 2009 A | 2008 |
From net investment income | | |
Magellan | $ 48,703 | $ 198,794 |
Class K | 2,690 | - |
Total | $ 51,393 | $ 198,794 |
From net realized gain | | |
Magellan | $ 1,309,645 | $ 5,306,194 |
A Distributions for Class K are for the period May 9, 2008 (commencement of sale of shares) to March 31, 2009.
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
Years ended March 31, | 2009 A | 2008 | 2009 A | 2008 |
Magellan | | | | |
Shares sold | 67,541 | 38,165 | $ 3,768,183 | $ 3,471,068 |
Conversion to Class K | (31,425) | - | (1,493,617) | - |
Reinvestment of distributions | 15,818 | 57,152 | 1,322,410 | 5,364,952 |
Shares redeemed | (131,814) | (102,008) | (7,554,889) | (9,459,108) |
Net increase (decrease) | (79,880) | (6,691) | $ (3,957,913) | $ (623,088) |
Class K | | | | |
Shares sold | 2,449 | - | $ 108,963 | $ - |
Conversion from Magellan | 31,429 | - | 1,493,617 | - |
Reinvestment of distributions | 64 | - | 2,690 | - |
Shares redeemed | (2,214) | - | (96,257) | - |
Net increase (decrease) | 31,728 | - | $ 1,509,013 | $ - |
A Share transactions for Class K are for the period May 9, 2008 (commencement of sale of shares) to March 31, 2009.
12. 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.
Annual Report
To the Trustees and Shareholders of Fidelity Magellan Fund:
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 Magellan Fund at March 31, 2009 the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, 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 Magellan Fund'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 March 31, 2009 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
/s/ PricewatershouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
May 14, 2009
Annual Report
The Trustees, Member of the Advisory Board, and executive officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, and review the fund's performance. Except for Edward C Johnson 3d and James C. Curvey, each of the Trustees oversees 222 funds advised by FMR or an affiliate. Messrs. Johnson and Curvey oversee 383 funds advised by FMR or an affiliate.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) (Independent Trustee), shall retire not later than the last day of the calendar year in which his or her 72nd birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. The executive officers and Advisory Board Member hold office without limit in time, except that any officer and Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Interested Trustees*:
Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation |
Edward C. Johnson 3d (78) |
| Year of Election or Appointment: 1984 Mr. Johnson is Chairman of the Board of Trustees. Mr. Johnson serves as Chief Executive Officer, Chairman, and a Director of FMR LLC; Chairman and a Director of FMR; Chairman and a Director of Fidelity Research & Analysis Company (FRAC); Chairman and a Director of Fidelity Investments Money Management, Inc.; and Chairman and a Director of FMR Co., Inc. In addition, Mr. Johnson serves as Chairman and Director of FIL Limited. Previously, Mr. Johnson served as President of FMR LLC (2006-2007). |
James C. Curvey (73) |
| Year of Election or Appointment: 2007 Mr. Curvey also serves as Trustee (2007-present) of other investment companies advised by FMR. Mr. Curvey is a Director of FMR and FMR Co., Inc. (2007-present). Mr. Curvey is also Vice Chairman (2006-
present) and Director of FMR LLC. In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the Trustees of Villanova University. |
* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR.
Independent Trustees:
Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Age; Principal Occupation |
Dennis J. Dirks (60) |
| Year of Election or Appointment: 2005 Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC) (1999-2003). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) (1999-2003) and President and Board member of the National Securities Clearing Corporation (NSCC) (1999-2003). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation (2001-2003), Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation (2001-2003), as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), and as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008). Currently, Mr. Dirks serves as a member of the Board of Directors for The Brookville Center for Children's Services, Inc. (2009-present). |
Alan J. Lacy (55) |
| Year of Election or Appointment: 2008 Mr. Lacy serves as Senior Adviser (2007-present) of Oak Hill Capital Partners, L.P. (private equity). Mr. Lacy also served as Chief Executive Officer (2000-2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation and Sears, Roebuck and Co. (retail). In addition, Mr. Lacy serves as a member of the Board of Directors of The Western Union Company (global money transfer, 2006-present) and Bristol-Myers Squibb Company (global pharmaceuticals, 2007-present). Mr. Lacy is Chairman (2008-present) and a member (2006-present) of the Board of Trustees of The National Parks Conservation Association. |
Ned C. Lautenbach (65) |
| Year of Election or Appointment: 2000 Mr. Lautenbach is Chairman of the Independent Trustees of the Equity and High Income Funds (2006-present). Mr. Lautenbach is an Advisory Partner of Clayton, Dubilier & Rice, Inc. (private equity investment). Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. Mr. Lautenbach serves as a Director of Eaton Corporation (diversified industrial) as well as the Philharmonic Center for the Arts in Naples, Florida. Mr. Lautenbach is also a member of the Board of Trustees of Fairfield University (2005-present), as well as a member of the Council on Foreign Relations. Previously, Mr. Lautenbach served as a Director of Sony Corporation (2006-2007). |
Joseph Mauriello (64) |
| Year of Election or Appointment: 2008 Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Capital Ltd. (global insurance and re-insurance, 2006-present) and of Arcadia Resources Inc. (health care services and products, 2007-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007). |
Cornelia M. Small (64) |
| Year of Election or Appointment: 2005 Ms. Small is a member of the Board of Directors of the Teagle Foundation (2009-present). Ms. Small is also a member of the Investment Committee, and Chair (2008-present) and a member of the Board of Trustees of Smith College. In addition, Ms. Small serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson of the Investment Committee (2002-2008) of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments. |
William S. Stavropoulos (69) |
| Year of Election or Appointment: 2001 Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is a Director of Teradata Corporation (data warehousing and technology solutions, 2008-present), Chemical Financial Corporation, Maersk Inc. (industrial conglomerate), Tyco International, Inc. (multinational manufacturing and services, 2007-present), and a member of the Advisory Board for Metalmark Capital (private equity investment, 2005-present). Mr. Stavropoulos is a special advisor to Clayton, Dubilier & Rice, Inc. (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science. |
David M. Thomas (59) |
| Year of Election or Appointment: 2008 Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions). In addition, Mr. Thomas serves as a member of the Board of Directors of Fortune Brands, Inc. (consumer products), and Interpublic Group of Companies, Inc. (marketing communication, 2004-present). |
Michael E. Wiley (58) |
| Year of Election or Appointment: 2008 Mr. Wiley also serves as a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-present), and as a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-present). Mr. Wiley serves as a Director of Tesoro Corporation (independent oil refiner and marketer, 2005-
present), and a Director of Bill Barrett Corporation (exploration and production, 2005-present). In addition, Mr. Wiley also serves as a Director of Post Oak Bank (privately-held bank, 2004-present). Previously, Mr. Wiley served as a Sr. Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), as an Advisory Director of Riverstone Holdings (private investment), Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004), and as Director of Spinnaker Exploration Company (exploration and production, 2001-2005). |
Advisory Board Member and Executive Officers:
Correspondence intended for each executive officer and Mr. Lynch may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation |
Peter S. Lynch (65) |
| Year of Election or Appointment: 2003 Member of the Advisory Board of Fidelity's Equity and High Income Funds. Mr. Lynch is Vice Chairman and a Director of FMR, and Vice Chairman (2001-present) and a Director of FMR Co., Inc. Previously, Mr. Lynch served as a Trustee of the Fidelity funds (1990-2003). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006). |
Kenneth B. Robins (39) |
| Year of Election or Appointment: 2008 President and Treasurer of Fidelity's Equity and High Income Funds. Mr. Robins is an employee of Fidelity Investments (2004-present). Before joining Fidelity Investments, Mr. Robins worked at KPMG LLP, where he was a partner in KPMG's department of professional practice (2002-2004). |
Bruce T. Herring (43) |
| Year of Election or Appointment: 2006 Vice President of certain Equity Funds. Mr. Herring also serves as Group Chief Investments Officer of FMR. Previously, Mr. Herring served as a portfolio manager for Fidelity U.S. Equity Funds. |
Scott C. Goebel (41) |
| Year of Election or Appointment: 2008 Secretary and Chief Legal Officer (CLO) of the Fidelity funds. Mr. Goebel also serves as General Counsel, Secretary, and Senior Vice President of FMR (2008-present) and FMR Co., Inc. (2008-present); Deputy General Counsel of FMR LLC; Chief Legal Secretary of Fidelity Management & Research (Hong Kong) Limited (2008-present) and Assistant Secretary of Fidelity Management & Research (Japan) Inc. (2008-present), Fidelity Investments Money Management, Inc. (2008-
present), Fidelity Management & Research (U.K.) Inc. (2008-present), and Fidelity Research and Analysis Company (2008-present). Previously, Mr. Goebel served as Assistant Secretary of the Funds (2007-2008) and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007). |
John B. McGinty, Jr. (46) |
| Year of Election or Appointment: 2008 Assistant Secretary of Fidelity's Equity and High Income Funds. Mr. McGinty is an employee of Fidelity Investments (2004-present). Mr. McGinty also serves as Senior Vice President, Secretary, and Chief Legal Officer of FDC (2007-present). Before joining Fidelity Investments, Mr. McGinty practiced law at Ropes & Gray, LLP. |
Holly C. Laurent (54) |
| Year of Election or Appointment: 2008 Anti-Money Laundering (AML) Officer of the Fidelity funds. Ms. Laurent is an employee of Fidelity Investments. Previously, Ms. Laurent was Senior Vice President and Head of Legal for Fidelity Business Services India Pvt. Ltd. (2006-2008), and Senior Vice President, Deputy General Counsel and Group Head for FMR LLC (2005-2006). |
Christine Reynolds (50) |
| Year of Election or Appointment: 2008 Chief Financial Officer of the Fidelity funds. Ms. Reynolds became President of Fidelity Pricing and Cash Management Services (FPCMS) in August 2008. Ms. Reynolds served as Chief Operating Officer of FPCMS (2007-2008). Previously, Ms. Reynolds served as President, Treasurer, and Anti-Money Laundering officer of the Fidelity funds (2004-2007). |
Kenneth A. Rathgeber (61) |
| Year of Election or Appointment: 2004 Chief Compliance Officer of Fidelity's Equity and High Income Funds. Mr. Rathgeber is Chief Compliance Officer of Fidelity Management & Research (Hong Kong) Limited (2008-present), Fidelity Management & Research (Japan) Inc. (2008-present), FMR (2005-present), FMR Co., Inc. (2005-present), Fidelity Management & Research (U.K.) Inc. (2005-present), Fidelity Research & Analysis Company (2005-present), Fidelity Investments Money Management, Inc. (2005-present), Pyramis Global Advisors, LLC (2005-present), and Strategic Advisers, Inc. (2005-present). |
Bryan A. Mehrmann (47) |
| Year of Election or Appointment: 2005 Deputy Treasurer of the Fidelity funds. Mr. Mehrmann is an employee of Fidelity Investments. Previously, Mr. Mehrmann served as Vice President of Fidelity Investments Institutional Services Group (FIIS)/Fidelity Investments Institutional Operations Company, Inc. (FIIOC) Client Services (1998-2004). |
Adrien E. Deberghes (41) |
| Year of Election or Appointment: 2008 Deputy Treasurer of Fidelity's Equity and High Income Funds. Mr. Deberghes is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). |
Robert G. Byrnes (42) |
| Year of Election or Appointment: 2005 Assistant Treasurer of the Fidelity funds. Mr. Byrnes is an employee of Fidelity Investments (2005-present). Previously, Mr. Byrnes served as Vice President of Fidelity Pricing and Cash Management Services (FPCMS) (2003-2005). |
Paul M. Murphy (62) |
| Year of Election or Appointment: 2007 Assistant Treasurer of the Fidelity funds. Mr. Murphy is an employee of Fidelity Investments (2007-present). Previously, Mr. Murphy served as Chief Financial Officer of the Fidelity funds (2005-2006), Vice President and Associate General Counsel of FMR (2007), and Senior Vice President of Fidelity Pricing and Cash Management Services (FPCMS) (1994-2007). |
Gary W. Ryan (50) |
| Year of Election or Appointment: 2005 Assistant Treasurer of the Fidelity funds. Mr. Ryan is an employee of Fidelity Investments. Previously, Mr. Ryan served as Vice President of Fund Reporting in Fidelity Pricing and Cash Management Services (FPCMS) (1999-2005). |
Annual Report
Magellan designates 100% of the dividends distributed during the fiscal year as qualifying for the dividends-received deduction for corporate shareholders.
Magellan designates 100% of the dividends distributed during the fiscal year as amounts which may be taken into account as a dividend for the purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
The fund will notify shareholders in January 2010 of amounts for use in preparing 2009 income tax returns.
Annual Report
A special meeting of the fund's shareholders was held on June 18, 2008. The results of votes taken among shareholders on the 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 elect a Board of Trustees.A |
| # of
Votes | % of
Votes |
James C. Curvey |
Affirmative | 18,109,270,380.55 | 94.100 |
Withheld | 1,135,516,161.25 | 5.900 |
TOTAL | 19,244,786,541.80 | 100.000 |
Dennis J. Dirks |
Affirmative | 18,183,535,716.39 | 94.486 |
Withheld | 1,061,250,825.41 | 5.514 |
TOTAL | 19,244,786,541.80 | 100.000 |
Edward C. Johnson 3d |
Affirmative | 18,063,070,640.34 | 93.860 |
Withheld | 1,181,715,901.46 | 6.140 |
TOTAL | 19,244,786,541.80 | 100.000 |
Alan J. Lacy |
Affirmative | 18,160,195,009.17 | 94.364 |
Withheld | 1,084,591,532.63 | 5.636 |
TOTAL | 19,244,786,541.80 | 100.000 |
Ned C. Lautenbach |
Affirmative | 18,154,661,764.90 | 94.335 |
Withheld | 1,090,124,776.90 | 5.665 |
TOTAL | 19,244,786,541.80 | 100.000 |
Joseph Mauriello |
Affirmative | 18,168,495,175.00 | 94.407 |
Withheld | 1,076,291,366.80 | 5.593 |
TOTAL | 19,244,786,541.80 | 100.000 |
Cornelia M. Small |
Affirmative | 18,169,961,949.99 | 94.415 |
Withheld | 1,074,824,591.81 | 5.585 |
TOTAL | 19,244,786,541.80 | 100.000 |
| # of
Votes | % of
Votes |
William S. Stavropoulos |
Affirmative | 18,102,055,299.02 | 94.062 |
Withheld | 1,142,731,242.78 | 5.938 |
TOTAL | 19,244,786,541.80 | 100.000 |
David M. Thomas |
Affirmative | 18,181,282,476.48 | 94.474 |
Withheld | 1,063,504,065.32 | 5.526 |
TOTAL | 19,244,786,541.80 | 100.000 |
Michael E. Wiley |
Affirmative | 18,158,086,685.68 | 94.353 |
Withheld | 1,086,699,856.12 | 5.647 |
TOTAL | 19,244,786,541.80 | 100.000 |
PROPOSAL 2 |
To amend the Declaration of Trust to reduce the required quorum for future shareholder meetings.A |
| # of
Votes | % of
Votes |
Affirmative | 13,514,327,490.91 | 70.223 |
Against | 4,025,294,334.94 | 20.917 |
Abstain | 1,005,410,465.12 | 5.224 |
Broker
Non-Votes | 699,754,250.83 | 3.636 |
TOTAL | 19,244,786,541.80 | 100.000 |
PROPOSAL 4 |
For Fidelity Magellan Fund, a shareholder proposal concerning "oversight procedures to screen out investments in companies that, in the judgment of the Board, substantially contribute to genocide, patterns of extraordinary and egregious violations of human rights, or crimes against humanity." |
| # of
Votes | % of
Votes |
Affirmative | 5,419,708,682.11 | 28.162 |
Against | 11,968,157,955.66 | 62.189 |
Abstain | 1,157,165,653.20 | 6.013 |
Broker
Non-Votes | 699,754,250.83 | 3.636 |
TOTAL | 19,244,786,541.80 | 100.000 |
A Denotes trust-wide proposal and voting results.
Annual 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
Fidelity Investments Japan Limited
FIL Investment Advisors
FIL Investment Advisors (U.K.) Ltd.
Fidelity Management & Research
(Japan) Inc.
Fidelity Management & Research
(Hong Kong) 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
State Street Bank and Trust Company Quincy, 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.)
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for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
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Telephone (FAST®)
1-800-544-5555
Automated line for quickest service
MAG-UANNPRO-0509
1.792133.105
Fidelity®
Magellan®
Fund -
Class K
Annual Report
March 31, 2009
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | Ned Johnson's message to shareholders. |
Performance | <Click Here> | How the fund has done over time. |
Management's Discussion | <Click Here> | The manager's review of fund performance, strategy and outlook. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
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. |
Report of Independent Registered Public Accounting Firm | <Click Here> | |
Trustees and Officers | <Click Here> | |
Distributions | <Click Here> | |
Proxy Voting Results | <Click Here> | |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) website at http://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 LLC or an affiliated company.
Annual 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 holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Annual Report
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
The stresses on the world's capital markets have shown few signs of abating thus far in 2009. Although government programs may eventually rekindle economic growth, corporate earnings are still weaker than we would like to see them, and the valuations of many securities remain at historically low levels. While financial markets are always unpredictable, there are 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 can be tax advantages and cost benefits to consider as well. 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
Annual Report
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended March 31, 2009 | Past 1
year | Past 5
years | Past 10
years |
Class K A | -43.72% | -6.65% | -4.45% |
A The initial offering of Class K shares took place on May 9, 2008. Returns prior to May 9, 2008 are
those of Magellan, the original class of the fund.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® Magellan® Fund - Class K on March 31, 1999. The chart shows how the value of your investment would have changed, and also shows how the Standard & Poor's 500SM Index (S&P 500®) performed over the same period. The initial offering of Class K took place on May 9, 2008. See above for additional information regarding the performance of Class K.
Annual Report
Market Recap: Although a rally in the final weeks of the period seemed a welcome sight for beleaguered equity investors, most looked back on the year ending March 31, 2009, with little reason to smile. A litany of market-moving events - from the collapse of investment bank Bear Stearns to the conservatorship of Fannie Mae and Freddie Mac to the government's rescue efforts on behalf of a succession of other large financial institutions - drove stock prices lower through most of the 12-month period amid ongoing concerns about slowing global growth and a virtual drying-up of credit availability. A massive flight to quality and away from risk thus defined the market, and even the U.S. government's aggressive moves to unfreeze credit, stabilize the financial system and reignite the domestic economy did little to bring investors back into stocks until late in the period. Against this troubling backdrop, the Standard & Poor's 500SM Index shed 38.09% of its value, with none of its market sectors able to break into positive ground. Meanwhile, the blue-chip Dow Jones Industrial AverageSM declined 35.94%, and the technology-laden NASDAQ Composite® Index dropped 32.29%. As poorly as these U.S. indexes performed for the year, global equities fared even worse, with the MSCI® EAFE® Index (Europe, Australasia, Far East) - - a measure of developed markets outside the U.S. and Canada - falling 46.42%.
Comments from Harry Lange, Portfolio Manager of Fidelity® Magellan® Fund: During the past year, the fund's Class K shares trailed the S&P 500®. (For specific class-level returns, please see the performance section of this report.) Unfavorable stock picking in energy, financials and information technology detracted, as did a large underweighting in consumer staples. In absolute terms, a stronger U.S. dollar dampened the performance of our foreign holdings. Finland's Nokia, our second-largest position at period end and an out-of-index holding, suffered from weaker-than-expected sales and a loss of market share. Other detractors included insurer American International Group (AIG), an out-of-index position in Canadian Natural Resources and diversified financials holdings Morgan Stanley - which I sold - and Bank of America. Not owning the shares of integrated energy company Exxon Mobil, a strong-performing index component, further detracted. Conversely, stock picking in materials helped, as did an underweighting and favorable picks in industrials. Timely ownership made industrial conglomerate General Electric our largest contributor. Other contributors included biotechnology holding Genentech, which was acquired during the period, office supply retailer Staples and gold stock Newmont Mining.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual 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 (October 1, 2008 to March 31, 2009).
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. 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. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
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. 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. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
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.
Annual Report
| Annualized Expense Ratio | Beginning
Account Value
October 1, 2008 | Ending
Account Value
March 31, 2009 | Expenses Paid
During Period*
October 1, 2008 to March 31, 2009 |
Magellan | .46% | | | |
Actual | | $ 1,000.00 | $ 709.70 | $ 1.96 |
HypotheticalA | | $ 1,000.00 | $ 1,022.64 | $ 2.32 |
Class K | .25% | | | |
Actual | | $ 1,000.00 | $ 710.40 | $ 1.07 |
HypotheticalA | | $ 1,000.00 | $ 1,023.68 | $ 1.26 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
Annual Report
Investment Changes (Unaudited)
Top Ten Stocks as of March 31, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Corning, Inc. | 7.7 | 4.5 |
Nokia Corp. sponsored ADR | 5.5 | 5.1 |
Applied Materials, Inc. | 3.9 | 2.6 |
Staples, Inc. | 3.9 | 3.1 |
Newmont Mining Corp. | 2.4 | 0.8 |
Medco Health Solutions, Inc. | 2.3 | 1.3 |
General Electric Co. | 2.2 | 0.0 |
Goldcorp, Inc. | 1.8 | 0.3 |
China Life Insurance Co. Ltd. (H Shares) | 1.5 | 0.5 |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 1.5 | 1.0 |
| 32.7 | |
Top Five Market Sectors as of March 31, 2009 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Information Technology | 34.2 | 29.3 |
Materials | 11.3 | 6.8 |
Consumer Discretionary | 11.3 | 9.2 |
Financials | 10.1 | 12.4 |
Health Care | 9.8 | 14.4 |
Asset Allocation (% of fund's net assets) |
As of March 31, 2009 * | As of September 30, 2008 ** |
| Stocks 97.7% | | | Stocks 99.6% | |
| Convertible
Securities 0.2% | | | Convertible
Securities 0.1% | |
| Short-Term
Investments and
Net Other Assets 2.1% | | | Short-Term
Investments and
Net Other Assets 0.3% | |
* Foreign investments | 25.2% | | ** Foreign investments | 23.6% | |
Annual Report
Investments March 31, 2009
Showing Percentage of Net Assets
Common Stocks - 97.7% |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - 11.3% |
Auto Components - 0.1% |
Hyundai Mobis | 300,000 | | $ 17,539 |
Diversified Consumer Services - 0.0% |
Hillenbrand, Inc. | 500,000 | | 8,005 |
Hotels, Restaurants & Leisure - 0.6% |
Burger King Holdings, Inc. | 500,000 | | 11,475 |
Ctrip.com International Ltd. sponsored ADR | 25,108 | | 688 |
Melco PBL Entertainment (Macau) Ltd. sponsored ADR (a)(d) | 274,700 | | 901 |
Starbucks Corp. (a) | 8,562,616 | | 95,131 |
| | 108,195 |
Household Durables - 3.8% |
D.R. Horton, Inc. | 11,295,100 | | 109,562 |
KB Home (e) | 4,088,000 | | 53,880 |
Lennar Corp. Class A | 10,131,376 | | 76,087 |
M.D.C. Holdings, Inc. | 2,000,000 | | 62,280 |
Mohawk Industries, Inc. (a) | 1,000,000 | | 29,870 |
MRV Engenharia e Participacoes SA | 1,153,900 | | 6,865 |
Pulte Homes, Inc. | 12,638,715 | | 138,141 |
Ryland Group, Inc. | 1,172,024 | | 19,526 |
Toll Brothers, Inc. (a)(e) | 11,367,517 | | 206,434 |
| | 702,645 |
Internet & Catalog Retail - 0.1% |
B2W Companhia Global Do Varejo | 1,000,000 | | 9,192 |
Leisure Equipment & Products - 0.0% |
Brunswick Corp. | 621,943 | | 2,146 |
Media - 1.4% |
Ascent Media Corp. (a) | 144,656 | | 3,616 |
Cinemark Holdings, Inc. | 238,900 | | 2,243 |
Comcast Corp. Class A (special) (non-vtg.) | 4,000,000 | | 51,480 |
Informa PLC | 5,000,000 | | 18,832 |
The DIRECTV Group, Inc. (a) | 7,500,000 | | 170,925 |
Virgin Media, Inc. | 4,500,000 | | 21,600 |
| | 268,696 |
Multiline Retail - 0.2% |
Pantaloon Retail India Ltd. | 194,608 | | 639 |
Pantaloon Retail India Ltd. Class B | 19,460 | | 45 |
Pinault Printemps-Redoute SA (d) | 500,000 | | 32,062 |
| | 32,746 |
Specialty Retail - 3.9% |
Staples, Inc. (e) | 40,090,255 | | 726,035 |
Common Stocks - continued |
| Shares | | Value (000s) |
CONSUMER DISCRETIONARY - continued |
Textiles, Apparel & Luxury Goods - 1.2% |
Lululemon Athletica, Inc. (a)(d) | 674,500 | | $ 5,841 |
NIKE, Inc. Class B | 3,597,000 | | 168,663 |
Polo Ralph Lauren Corp. Class A | 1,150,000 | | 48,588 |
| | 223,092 |
TOTAL CONSUMER DISCRETIONARY | | 2,098,291 |
CONSUMER STAPLES - 2.7% |
Food & Staples Retailing - 1.9% |
CVS Caremark Corp. | 9,341,972 | | 256,811 |
United Natural Foods, Inc. (a)(e) | 4,143,500 | | 78,602 |
Wumart Stores, Inc. (H Shares) | 25,000,000 | | 17,741 |
| | 353,154 |
Food Products - 0.3% |
Cosan Ltd. Class A (a) | 3,181,700 | | 7,795 |
Cosan SA Industria e Comercio (a) | 3,000,000 | | 12,507 |
McCormick & Co., Inc. (non-vtg.) | 500,000 | | 14,785 |
Ralcorp Holdings, Inc. (a) | 400,000 | | 21,552 |
| | 56,639 |
Household Products - 0.5% |
Energizer Holdings, Inc. (a) | 2,000,000 | | 99,380 |
Personal Products - 0.0% |
Bare Escentuals, Inc. (a) | 76,400 | | 313 |
TOTAL CONSUMER STAPLES | | 509,486 |
ENERGY - 6.5% |
Energy Equipment & Services - 1.1% |
Atwood Oceanics, Inc. (a) | 1,000,000 | | 16,590 |
Nabors Industries Ltd. (a) | 1,000,000 | | 9,990 |
Noble Corp. | 3,000,000 | | 72,270 |
Smith International, Inc. | 557,200 | | 11,969 |
Transocean Ltd. (a) | 1,700,000 | | 100,028 |
| | 210,847 |
Oil, Gas & Consumable Fuels - 5.4% |
Apache Corp. | 967,910 | | 62,033 |
Canadian Natural Resources Ltd. | 3,172,300 | | 123,097 |
Chesapeake Energy Corp. | 10,000,000 | | 170,600 |
Denbury Resources, Inc. (a) | 7,500,000 | | 111,450 |
Energy Transfer Equity LP | 1,000,000 | | 21,130 |
Common Stocks - continued |
| Shares | | Value (000s) |
ENERGY - continued |
Oil, Gas & Consumable Fuels - continued |
Enterprise Products Partners LP | 700,000 | | $ 15,575 |
EOG Resources, Inc. | 727,200 | | 39,821 |
Hess Corp. | 4,191,500 | | 227,179 |
Marathon Oil Corp. | 262,188 | | 6,893 |
Massey Energy Co. | 1,000,000 | | 10,120 |
OAO Gazprom sponsored ADR | 2,000,000 | | 29,800 |
Occidental Petroleum Corp. | 1,000,000 | | 55,650 |
Oil Search Ltd. | 10,000,000 | | 36,733 |
Plains Exploration & Production Co. (a) | 2,752,745 | | 47,430 |
Reliance Industries Ltd. | 1,000,000 | | 30,130 |
Sunoco, Inc. | 700,000 | | 18,536 |
Westernzagros Resources Ltd. (a) | 1,000,000 | | 460 |
| | 1,006,637 |
TOTAL ENERGY | | 1,217,484 |
FINANCIALS - 10.0% |
Capital Markets - 2.4% |
Charles Schwab Corp. | 8,547,000 | | 132,479 |
Evercore Partners, Inc. Class A | 87,600 | | 1,353 |
Fortress Investment Group LLC (d) | 2,500,000 | | 6,275 |
Franklin Resources, Inc. | 2,110,800 | | 113,709 |
GLG Partners, Inc. | 949,950 | | 2,698 |
Goldman Sachs Group, Inc. | 1,203,900 | | 127,637 |
Merriman Curhan Ford Group, Inc. (a) | 105,086 | | 46 |
T. Rowe Price Group, Inc. | 2,500,000 | | 72,150 |
| | 456,347 |
Commercial Banks - 1.0% |
Banco do Brasil SA | 1,301,000 | | 9,608 |
CapitalSource, Inc. (d) | 5,000,000 | | 6,100 |
Mitsubishi UFJ Financial Group, Inc. sponsored ADR | 600,000 | | 2,952 |
PNC Financial Services Group, Inc. | 500,000 | | 14,645 |
SVB Financial Group (a) | 1,212,400 | | 24,260 |
Wells Fargo & Co. | 9,703,704 | | 138,181 |
| | 195,746 |
Consumer Finance - 0.1% |
SLM Corp. (a) | 3,500,000 | | 17,325 |
Diversified Financial Services - 1.6% |
Bank of America Corp. | 5,367,104 | | 36,604 |
BM&F BOVESPA SA | 749,474 | | 2,278 |
Common Stocks - continued |
| Shares | | Value (000s) |
FINANCIALS - continued |
Diversified Financial Services - continued |
CIT Group, Inc. | 2,358,398 | | $ 6,721 |
Hyde Park Acquisition Corp. unit (a) | 200,000 | | 880 |
JPMorgan Chase & Co. | 9,208,100 | | 244,751 |
| | 291,234 |
Insurance - 3.6% |
ACE Ltd. | 3,869,909 | | 156,344 |
American International Group, Inc. (d) | 16,950,261 | | 16,950 |
Berkshire Hathaway, Inc. Class A (a) | 557 | | 48,292 |
China Life Insurance Co. Ltd. (H Shares) | 86,231,000 | | 283,620 |
Endurance Specialty Holdings Ltd. | 555,800 | | 13,862 |
Everest Re Group Ltd. | 700,000 | | 49,560 |
MetLife, Inc. | 1,731,857 | | 39,434 |
Reinsurance Group of America, Inc. | 339,549 | | 10,998 |
Willis Group Holdings Ltd. | 2,000,000 | | 44,000 |
| | 663,060 |
Real Estate Investment Trusts - 1.2% |
CBL & Associates Properties, Inc. (d) | 3,000,000 | | 7,080 |
Developers Diversified Realty Corp. | 4,604,700 | | 9,808 |
Kimco Realty Corp. | 679,800 | | 5,180 |
Simon Property Group, Inc. | 5,513,259 | | 190,979 |
Vornado Realty Trust | 508,885 | | 16,915 |
| | 229,962 |
Real Estate Management & Development - 0.1% |
Iguatemi Empresa de Shopping Centers SA | 959,500 | | 5,729 |
Indiabulls Real Estate Ltd. | 5,000,000 | | 9,831 |
| | 15,560 |
TOTAL FINANCIALS | | 1,869,234 |
HEALTH CARE - 9.8% |
Biotechnology - 1.6% |
Biogen Idec, Inc. (a) | 1,398,510 | | 73,310 |
Celgene Corp. (a) | 1,000,000 | | 44,400 |
Cephalon, Inc. (a)(d) | 778,730 | | 53,032 |
Genzyme Corp. (a) | 1,000,000 | | 59,390 |
OSI Pharmaceuticals, Inc. (a) | 1,198,900 | | 45,870 |
United Therapeutics Corp. (a) | 200,000 | | 13,218 |
| | 289,220 |
Common Stocks - continued |
| Shares | | Value (000s) |
HEALTH CARE - continued |
Health Care Equipment & Supplies - 1.8% |
Becton, Dickinson & Co. | 300 | | $ 20 |
C.R. Bard, Inc. | 1,869,300 | | 149,021 |
Covidien Ltd. | 3,000,000 | | 99,720 |
Greatbatch, Inc. (a)(e) | 2,181,700 | | 42,216 |
Integra LifeSciences Holdings Corp. (a)(e) | 1,500,000 | | 37,095 |
Mindray Medical International Ltd. sponsored ADR | 51,400 | | 951 |
| | 329,023 |
Health Care Providers & Services - 3.0% |
Amedisys, Inc. (a)(d) | 800,000 | | 21,992 |
Brookdale Senior Living, Inc. (e) | 5,367,200 | | 27,104 |
Express Scripts, Inc. (a) | 1,000,000 | | 46,170 |
Henry Schein, Inc. (a) | 903,653 | | 36,155 |
LHC Group, Inc. (a) | 500,000 | | 11,140 |
Medco Health Solutions, Inc. (a) | 10,150,100 | | 419,605 |
| | 562,166 |
Life Sciences Tools & Services - 0.0% |
Affymetrix, Inc. (a) | 28,700 | | 94 |
Pharmaceuticals - 3.4% |
Allergan, Inc. | 2,075,984 | | 99,149 |
Matrixx Initiatives, Inc. (a) | 400,000 | | 6,560 |
Medicis Pharmaceutical Corp. Class A | 2,000,000 | | 24,740 |
Pfizer, Inc. | 8,000,000 | | 108,960 |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 6,000,000 | | 270,300 |
Wyeth | 3,000,000 | | 129,120 |
| | 638,829 |
TOTAL HEALTH CARE | | 1,819,332 |
INDUSTRIALS - 8.5% |
Aerospace & Defense - 0.5% |
Raytheon Co. | 2,000,000 | | 77,880 |
Raytheon Co. warrants 6/16/11 (a) | 204,836 | | 1,372 |
Stanley, Inc. (a) | 500,000 | | 12,695 |
| | 91,947 |
Air Freight & Logistics - 0.0% |
Forward Air Corp. | 390,000 | | 6,330 |
Common Stocks - continued |
| Shares | | Value (000s) |
INDUSTRIALS - continued |
Airlines - 1.2% |
Delta Air Lines, Inc. (a) | 34,224,726 | | $ 192,685 |
JetBlue Airways Corp. (a) | 6,269,652 | | 22,884 |
| | 215,569 |
Building Products - 0.1% |
Masco Corp. | 3,499,700 | | 24,428 |
Commercial Services & Supplies - 0.1% |
Clean Harbors, Inc. (a) | 200,000 | | 9,600 |
Construction & Engineering - 0.3% |
Chicago Bridge & Iron Co. NV (NY Shares) | 3,238,800 | | 20,307 |
China Railway Construction Corp. Ltd. (H Shares) | 8,000,000 | | 10,446 |
MYR Group, Inc. (a)(e) | 1,810,900 | | 27,616 |
| | 58,369 |
Electrical Equipment - 0.2% |
AMETEK, Inc. | 500,000 | | 15,635 |
China High Speed Transmission Equipment Group Co. Ltd. | 10,000,000 | | 14,322 |
Energy Conversion Devices, Inc. (a)(d) | 700,000 | | 9,289 |
| | 39,246 |
Industrial Conglomerates - 2.2% |
General Electric Co. | 39,924,800 | | 403,640 |
Machinery - 1.6% |
Cummins, Inc. | 2,500,000 | | 63,625 |
Danaher Corp. | 3,000,000 | | 162,660 |
SPX Corp. | 1,600,000 | | 75,216 |
| | 301,501 |
Professional Services - 2.1% |
Equifax, Inc. (e) | 8,485,262 | | 207,465 |
Manpower, Inc. | 413,882 | | 13,050 |
Monster Worldwide, Inc. (a)(e) | 8,951,938 | | 72,958 |
Robert Half International, Inc. | 5,124,900 | | 91,377 |
| | 384,850 |
Road & Rail - 0.2% |
Localiza Rent a Car SA | 4,500,000 | | 16,103 |
Ryder System, Inc. | 1,000,000 | | 28,310 |
| | 44,413 |
Transportation Infrastructure - 0.0% |
The Sumitomo Warehouse Co. Ltd. | 1,000,000 | | 3,896 |
TOTAL INDUSTRIALS | | 1,583,789 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - 34.2% |
Communications Equipment - 16.6% |
BYD Electronic International Co. Ltd. | 35,982,000 | | $ 12,721 |
Ciena Corp. (a) | 1,024,282 | | 7,969 |
Cisco Systems, Inc. (a) | 13,950,300 | | 233,947 |
Corning, Inc. (e) | 107,987,125 | | 1,432,992 |
Foxconn International Holdings Ltd. (a) | 5,000,000 | | 2,116 |
Juniper Networks, Inc. (a) | 12,817,200 | | 193,027 |
Nokia Corp. sponsored ADR | 87,518,200 | | 1,021,337 |
QUALCOMM, Inc. | 5,000,000 | | 194,550 |
| | 3,098,659 |
Computers & Peripherals - 2.9% |
Apple, Inc. (a) | 2,500,000 | | 262,800 |
SanDisk Corp. (a) | 6,817,866 | | 86,246 |
Seagate Technology (e) | 31,910,005 | | 191,779 |
| | 540,825 |
Electronic Equipment & Components - 2.0% |
Amphenol Corp. Class A | 4,736,900 | | 134,954 |
FLIR Systems, Inc. (a) | 4,638,800 | | 95,003 |
Hon Hai Precision Industry Co. Ltd. (Foxconn) | 41,400,000 | | 93,572 |
Ingram Micro, Inc. Class A (a) | 3,000,000 | | 37,920 |
Itron, Inc. (a) | 100,000 | | 4,735 |
| | 366,184 |
Internet Software & Services - 1.3% |
Google, Inc. Class A (sub. vtg.) (a) | 601,000 | | 209,184 |
VeriSign, Inc. (a) | 2,000,000 | | 37,740 |
WebMD Health Corp. Class A (a) | 95,700 | | 2,134 |
| | 249,058 |
IT Services - 2.4% |
Accenture Ltd. Class A | 2,500,000 | | 68,725 |
CACI International, Inc. Class A (a) | 500,000 | | 18,245 |
Cognizant Technology Solutions Corp. Class A (a) | 9,318,596 | | 193,734 |
Lender Processing Services, Inc. | 4,225,400 | | 129,339 |
The Western Union Co. | 2,500,000 | | 31,425 |
| | 441,468 |
Semiconductors & Semiconductor Equipment - 7.7% |
Applied Materials, Inc. (e) | 67,904,537 | | 729,974 |
ASML Holding NV (NY Shares) | 10,345,201 | | 181,144 |
Himax Technologies, Inc. sponsored ADR | 2,000,000 | | 5,600 |
Lam Research Corp. (a) | 499,200 | | 11,367 |
MEMC Electronic Materials, Inc. (a)(e) | 11,330,000 | | 186,832 |
Common Stocks - continued |
| Shares | | Value (000s) |
INFORMATION TECHNOLOGY - continued |
Semiconductors & Semiconductor Equipment - continued |
NVIDIA Corp. (a) | 3,000,000 | | $ 29,580 |
O2Micro International Ltd. sponsored ADR (a) | 700,000 | | 2,394 |
Samsung Electronics Co. Ltd. | 265,233 | | 110,317 |
Skyworks Solutions, Inc. (a) | 3,000,000 | | 24,180 |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 7,000,000 | | 62,650 |
Teradyne, Inc. (a)(e) | 11,529,691 | | 50,500 |
Texas Instruments, Inc. | 3,000,000 | | 49,530 |
| | 1,444,068 |
Software - 1.3% |
Adobe Systems, Inc. (a) | 2,500,000 | | 53,475 |
Autodesk, Inc. (a) | 1,000,000 | | 16,810 |
Longtop Financial Technologies Ltd. ADR (a) | 29,200 | | 620 |
Oracle Corp. | 7,197,500 | | 130,059 |
SAP AG sponsored ADR (d) | 1,000,000 | | 35,290 |
| | 236,254 |
TOTAL INFORMATION TECHNOLOGY | | 6,376,516 |
MATERIALS - 11.2% |
Chemicals - 2.8% |
Air Products & Chemicals, Inc. | 1,500,000 | | 84,375 |
Ecolab, Inc. | 2,000,000 | | 69,460 |
FMC Corp. | 2,241,790 | | 96,711 |
Givaudan SA (d) | 100,000 | | 51,832 |
Minerals Technologies, Inc. | 500,000 | | 16,025 |
Monsanto Co. | 2,117,600 | | 175,973 |
Symrise AG | 2,000,000 | | 23,668 |
| | 518,044 |
Construction Materials - 0.3% |
Eagle Materials, Inc. | 2,000,000 | | 48,500 |
Metals & Mining - 8.0% |
Agnico-Eagle Mines Ltd. | 1,147,600 | | 65,982 |
Alcoa, Inc. | 16,049,100 | | 117,800 |
Eldorado Gold Corp. (a) | 3,000,000 | | 27,133 |
Freeport-McMoRan Copper & Gold, Inc. Class B | 1,500,000 | | 57,165 |
Goldcorp, Inc. | 10,000,000 | | 336,705 |
Kinross Gold Corp. | 5,000,000 | | 90,880 |
Lihir Gold Ltd. (a) | 25,666,295 | | 58,057 |
Newcrest Mining Ltd. | 5,892,492 | | 135,612 |
Common Stocks - continued |
| Shares | | Value (000s) |
MATERIALS - continued |
Metals & Mining - continued |
Newmont Mining Corp. | 9,852,800 | | $ 441,011 |
Randgold Resources Ltd. sponsored ADR | 3,012,766 | | 163,744 |
| | 1,494,089 |
Paper & Forest Products - 0.1% |
Weyerhaeuser Co. | 730,400 | | 20,137 |
TOTAL MATERIALS | | 2,080,770 |
TELECOMMUNICATION SERVICES - 2.6% |
Diversified Telecommunication Services - 1.1% |
Embarq Corp. | 333,051 | | 12,606 |
FairPoint Communications, Inc. | 109,213 | | 85 |
Level 3 Communications, Inc. (a) | 1,331,971 | | 1,225 |
Telefonica SA sponsored ADR | 3,000,000 | | 178,860 |
| | 192,776 |
Wireless Telecommunication Services - 1.5% |
America Movil SAB de CV Series L sponsored ADR | 3,905,500 | | 105,761 |
Bharti Airtel Ltd. (a) | 6,100,000 | | 75,499 |
Sprint Nextel Corp. (a) | 28,000,000 | | 99,960 |
| | 281,220 |
TOTAL TELECOMMUNICATION SERVICES | | 473,996 |
UTILITIES - 0.9% |
Electric Utilities - 0.5% |
Entergy Corp. | 1,400,000 | | 95,326 |
Multi-Utilities - 0.4% |
Sempra Energy | 1,700,000 | | 78,608 |
TOTAL UTILITIES | | 173,934 |
TOTAL COMMON STOCKS (Cost $23,652,189) | 18,202,832 |
Convertible Preferred Stocks - 0.1% |
| | | |
FINANCIALS - 0.1% |
Diversified Financial Services - 0.0% |
CIT Group, Inc. Series C, 8.75% | 338,400 | | 6,007 |
Convertible Preferred Stocks - continued |
| Shares | | Value (000s) |
FINANCIALS - continued |
Insurance - 0.1% |
American International Group, Inc. Series A, 8.50% | 2,666,700 | | $ 14,134 |
TOTAL CONVERTIBLE PREFERRED STOCKS (Cost $216,923) | 20,141 |
Convertible Bonds - 0.1% |
| Principal Amount (000s) | | |
INDUSTRIALS - 0.0% |
Electrical Equipment - 0.0% |
Sunpower Corp. 1.25% 2/15/27 | | $ 9,980 | | 7,048 |
MATERIALS - 0.1% |
Metals & Mining - 0.1% |
Alcoa, Inc. 5.25% 3/15/14 | | 13,750 | | 18,184 |
TOTAL CONVERTIBLE BONDS (Cost $29,668) | 25,232 |
Money Market Funds - 2.8% |
| Shares | | |
Fidelity Cash Central Fund, 0.52% (b) | 410,177,373 | | 410,177 |
Fidelity Securities Lending Cash Central Fund, 0.46% (b)(c) | 117,882,210 | | 117,882 |
TOTAL MONEY MARKET FUNDS (Cost $528,059) | 528,059 |
TOTAL INVESTMENT PORTFOLIO - 100.7% (Cost $24,426,839) | | 18,776,264 |
NET OTHER ASSETS - (0.7)% | | (135,774) |
NET ASSETS - 100% | $ 18,640,490 |
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 |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned
(Amounts in thousands) |
Fidelity Cash Central Fund | $ 3,977 |
Fidelity Securities Lending Cash Central Fund | 12,302 |
Total | $ 16,279 |
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
(Amounts in thousands) | Value,
beginning of
period | Purchases | Sales
Proceeds | Dividend
Income | Value,
end of
period |
Applied Materials, Inc. | $ 721,870 | $ 413,759 | $ - | $ 11,856 | $ 729,974 |
Brookdale Senior Living, Inc. | 92,426 | 33,380 | 1,914 | - | 27,104 |
Corning, Inc. | 1,953,793 | 513,289 | 358,055 | 18,792 | 1,432,992 |
Equifax, Inc. | 292,572 | - | - | 1,358 | 207,465 |
FLIR Systems, Inc. | 259,941 | - | 84,967 | - | - |
Greatbatch, Inc. | 40,165 | - | - | - | 42,216 |
Integra LifeSciences Holdings Corp. | 21,735 | 37,025 | - | - | 37,095 |
KB Home | 19,784 | 63,534 | - | 1,483 | 53,880 |
MBIA, Inc. | 157,333 | - | 103,241 | - | - |
MEMC Electronic Materials, Inc. | - | 159,057 | - | - | 186,832 |
Mentor Corp. | 79,603 | - | 94,414 | 1,238 | - |
Affiliates
(Amounts in thousands) | Value,
beginning of
period | Purchases | Sales
Proceeds | Dividend
Income | Value,
end of
period |
Monster Worldwide, Inc. | $ 144,096 | $ 89,413 | $ 35,507 | $ - | $ 72,958 |
MYR Group, Inc. | 25,353 | - | - | - | 27,616 |
OSI Pharmaceuticals, Inc. | 119,607 | - | 71,107 | - | - |
Seagate Technology | 115,170 | 119,078 | 105,566 | 805 | 191,779 |
Staples, Inc. | 1,068,118 | 39,566 | 238,014 | 3,307 | 726,035 |
Teradyne, Inc. | 136,989 | 2,003 | - | - | 50,500 |
Toll Brothers, Inc. | 164,360 | 81,739 | - | - | 206,434 |
Town Sports International Holdings, Inc. | 10,797 | - | 13,974 | - | - |
United Natural Foods, Inc. | 77,525 | - | - | - | 78,602 |
Total | $ 5,501,237 | $ 1,551,843 | $ 1,106,759 | $ 38,839 | $ 4,071,482 |
Other Information |
The following is a summary of the inputs used, as of March 31, 2009, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
Description
(Amounts in thousands) | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities | $ 18,776,264 | $ 17,968,093 | $ 808,171 | $ - |
The following is a reconciliation of assets for which Level 3 inputs were used in determining value: |
(Amounts in thousands) | Investments in Securities |
Beginning Balance | $ 25,353 |
Total Realized Gain (Loss) | 94 |
Total Unrealized Gain (Loss) | 2,263 |
Cost of Purchases | - |
Proceeds of Sales | (94) |
Amortization/Accretion | - |
Transfer in/out of Level 3 | (27,616) |
Ending Balance | $ - |
The information used in the above reconciliation represents fiscal year to date activity for any Investment Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represents either the beginning value (for transfers in), or the ending value (for transfers out) of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 74.8% |
Finland | 5.5% |
Canada | 3.5% |
Switzerland | 2.0% |
China | 1.7% |
Bermuda | 1.6% |
Israel | 1.5% |
Cayman Islands | 1.1% |
Netherlands | 1.1% |
United Kingdom | 1.0% |
Spain | 1.0% |
Others (individually less than 1%) | 5.2% |
| 100.0% |
Income Tax Information |
At March 31, 2009, the fund had a capital loss carryforward of approximately $1,232,702,000 all of which will expire on March 31, 2017. |
The fund intends to elect to defer to its fiscal year ending March 31, 2010 approximately $2,512,574,000 of losses recognized during the period November 1, 2008 to March 31, 2009. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | March 31, 2009 |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $110,612) - See accompanying schedule: Unaffiliated issuers (cost $18,521,169) | $ 14,176,723 | |
Fidelity Central Funds (cost $528,059) | 528,059 | |
Other affiliated issuers (cost $5,377,611) | 4,071,482 | |
Total Investments (cost $24,426,839) | | $ 18,776,264 |
Receivable for investments sold | | 9,673 |
Receivable for fund shares sold | | 12,104 |
Dividends receivable | | 16,837 |
Interest receivable | | 28 |
Distributions receivable from Fidelity Central Funds | | 263 |
Prepaid expenses | | 195 |
Other receivables | | 893 |
Total assets | | 18,816,257 |
| | |
Liabilities | | |
Payable for investments purchased | $ 30,356 | |
Payable for fund shares redeemed | 18,195 | |
Accrued management fee | 3,871 | |
Other affiliated payables | 4,334 | |
Other payables and accrued expenses | 1,129 | |
Collateral on securities loaned, at value | 117,882 | |
Total liabilities | | 175,767 |
| | |
Net Assets | | $ 18,640,490 |
Net Assets consist of: | | |
Paid in capital | | $ 28,102,480 |
Undistributed net investment income | | 31,827 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (3,843,141) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | (5,650,676) |
Net Assets | | $ 18,640,490 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | March 31, 2009 |
| | |
Magellan:
Net Asset Value, offering price and redemption price per share ($17,225,097 ÷ 385,995 shares) | | $ 44.63 |
| | |
Class K:
Net Asset Value, offering price and redemption price per share ($1,415,393 ÷ 31,728 shares) | | $ 44.61 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Operations
Amounts in thousands | Year ended March 31, 2009 |
| | |
Investment Income | | |
Dividends (including $38,839 earned from other affiliated issuers) | | $ 329,502 |
Interest | | 300 |
Income from Fidelity Central Funds | | 16,279 |
Total income | | 346,081 |
| | |
Expenses | | |
Management fee
Basic fee | $ 158,280 | |
Performance adjustment | (24,870) | |
Transfer agent fees | 59,240 | |
Accounting and security lending fees | 2,197 | |
Custodian fees and expenses | 1,384 | |
Independent trustees' compensation | 156 | |
Depreciation in deferred trustee compensation account | (62) | |
Registration fees | 142 | |
Audit | 290 | |
Legal | 185 | |
Interest | 30 | |
Miscellaneous | 3,924 | |
Total expenses before reductions | 200,896 | |
Expense reductions | (971) | 199,925 |
Net investment income (loss) | | 146,156 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (3,630,013) | |
Other affiliated issuers | (137,032) | |
Foreign currency transactions | (3,183) | |
Total net realized gain (loss) | | (3,770,228) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (12,247,638) | |
Assets and liabilities in foreign currencies | (146) | |
Total change in net unrealized appreciation (depreciation) | | (12,247,784) |
Net gain (loss) | | (16,018,012) |
Net increase (decrease) in net assets resulting from operations | | $ (15,871,856) |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements - continued
Statement of Changes in Net Assets
Amounts in thousands | Year ended
March 31,
2009 | Year ended
March 31,
2008 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 146,156 | $ 160,421 |
Net realized gain (loss) | (3,770,228) | 4,495,166 |
Change in net unrealized appreciation (depreciation) | (12,247,784) | (3,360,337) |
Net increase (decrease) in net assets resulting from operations | (15,871,856) | 1,295,250 |
Distributions to shareholders from net investment income | (51,393) | (198,794) |
Distributions to shareholders from net realized gain | (1,309,645) | (5,306,194) |
Total distributions | (1,361,038) | (5,504,988) |
Share transactions - net increase (decrease) | (2,448,900) | (623,088) |
Total increase (decrease) in net assets | (19,681,794) | (4,832,826) |
| | |
Net Assets | | |
Beginning of period | 38,322,284 | 43,155,110 |
End of period (including undistributed net investment income of $31,827 and undistributed net investment income of $3,217, respectively) | $ 18,640,490 | $ 38,322,284 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Magellan
Years ended March 31, | 2009 | 2008 | 2007 | 2006 | 2005 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 82.26 | $ 91.32 | $ 112.80 | $ 101.00 | $ 99.13 |
Income from Investment Operations | | | | | |
Net investment income (loss) B | .32 | .34 | .37 | .91 | 1.26 E |
Net realized and unrealized gain (loss) | (34.98) | 2.72 | 3.31 | 14.87 | 1.85 |
Total from investment operations | (34.66) | 3.06 | 3.68 | 15.78 | 3.11 |
Distributions from net investment income | (.11) | (.44) | (.50) | (.98) | (1.24) |
Distributions from net realized gain | (2.86) | (11.68) | (24.66) | (3.00) | - |
Total distributions | (2.97) | (12.12) | (25.16) | (3.98) | (1.24) |
Net asset value, end of period | $ 44.63 | $ 82.26 | $ 91.32 | $ 112.80 | $ 101.00 |
Total Return A | (43.81)% | 2.08% | 3.21% | 15.89% | 3.14% |
Ratios to Average Net Assets C, F | | | | | |
Expenses before reductions | .71% | .73% | .54% | .59% | .63% |
Expenses net of fee waivers, if any | .71% | .73% | .54% | .59% | .63% |
Expenses net of all reductions | .71% | .72% | .53% | .56% | .62% |
Net investment income (loss) | .51% | .37% | .41% | .86% | 1.26% E |
Supplemental Data | | | | | |
Net assets, end of period (in millions) | $ 17,225 | $ 38,322 | $ 43,155 | $ 50,473 | $ 56,891 |
Portfolio turnover rate D | 67% | 57% | 41% | 74% | 6% |
A Total returns would have been lower had certain expenses not been reduced during the periods shown.
B Calculated based on average shares outstanding during the period.
C Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
D Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
E Investment income per share reflects a special dividend which amounted to $.35 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .91%.
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. 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.
Annual Report
Financial Highlights - Class K
Year ended March 31, | 2009 G |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 85.82 |
Income from Investment Operations | |
Net investment income (loss) D | .30 |
Net realized and unrealized gain (loss) | (41.32) |
Total from investment operations | (41.02) |
Distributions from net investment income | (.19) |
Net asset value, end of period | $ 44.61 |
Total Return B, C | (47.79)% |
Ratios to Average Net Assets E, H | |
Expenses before reductions | .55% A |
Expenses net of fee waivers, if any | .55%A |
Expenses net of all reductions | .55%A |
Net investment income (loss) | .79%A |
Supplemental Data | |
Net assets, end of period (in millions) | $ 1,415 |
Portfolio turnover rate F | 67% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period May 9, 2008 (commencement of sale of shares) to March 31, 2009.
H 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.
Annual Report
Notes to Financial Statements
For the period ended March 31, 2009
(Amounts in thousands except ratios)
1. Organization.
Fidelity Magellan Fund (the Fund) is a fund of Fidelity Magellan Fund (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Magellan and Class K 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. After the commencement of Class K, the Fund began offering conversion privileges between Magellan and Class K to eligible shareholders of Magellan. 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 fees incurred. Certain expense reductions also differ by class.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
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. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Annual Report
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. 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, 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, including the Fidelity Central 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 reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality, and developments in foreign markets which are monitored by evaluating the performance of ADRs, futures contracts and exchange-traded funds. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.
The Fund adopted the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Security Valuation - continued
The three levels of the hierarchy under SFAS 157 are described below:
Level 1 | Quoted prices in active markets for identical securities. |
Level 2 | Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. |
Level 3 | Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available. |
Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.
The aggregate value by input level, as of March 31, 2009, for the Fund's investments, as well as a reconciliation of assets for which significant unobservable inputs (Level 3) were used in determining value, is included at the end of the Fund's Schedule of Investments.
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. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally
Annual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. 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 Fidelity 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. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
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. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. There are no unrecognized tax benefits in the accompanying financial statements. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. 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.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
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. In addition, the Fund will claim 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 foreign currency transactions, partnerships, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The tax-basis components of distributable earnings and the federal tax cost as of period end were as follows:
Unrealized appreciation | $ 1,873,016 |
Unrealized depreciation | (7,621,558) |
Net unrealized appreciation (depreciation) | (5,748,542) |
Undistributed ordinary income | 37,463 |
Capital loss carryforward | (1,232,702) |
| |
Cost for federal income tax purposes | $ 24,524,806 |
The tax character of distributions paid was as follows:
| March 31, 2009 | March 31, 2008 |
Ordinary Income | $ 51,393 | $ 198,794 |
Long-term Capital Gains | 1,309,645 | 5,306,194 |
Total | $ 1,361,038 | $ 5,504,988 |
4. 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
Annual Report
4. Operating Policies - continued
Repurchase Agreements - continued
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.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $18,971,356 and $22,574,325, respectively.
6. 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 .26% 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 relative investment performance of the retail class of the Fund, Magellan, as compared to an appropriate benchmark index. For the period, the total annual management fee rate, including the performance adjustment, was .47% of the Fund's average net assets.
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 Magellan. FIIOC receives an asset-based fee of .05% of Class K's average net assets. FIIOC pays
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each class were as follows:
| Amount | % of
Average
Net Assets |
Magellan | $ 58,994 | .21 |
Class K | 246 | .06 |
| $ 59,240 | |
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.
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 $686 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Daily
Loan Balance | Weighted Average
Interest Rate | Interest
Expense |
Borrower | $ 47,941 | 1.42% | $ 30 |
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $3.5 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 amounted to $94 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Annual Report
8. 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. Security lending income is presented in the Statement of Operations as a component income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $12,302.
9. Expense Reductions.
FMR voluntarily agreed to reimburse a portion of Magellan's operating expenses. During this period, this reimbursement reduced the class' expenses by $15.
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 $736 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 the period, these credits reduced the Fund's custody expenses by $9. During the period, credits reduced each class' transfer agent expense as noted in the table below.
| Transfer Agent
expense reduction |
Magellan | $ 211 |
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Years ended March 31, | 2009 A | 2008 |
From net investment income | | |
Magellan | $ 48,703 | $ 198,794 |
Class K | 2,690 | - |
Total | $ 51,393 | $ 198,794 |
From net realized gain | | |
Magellan | $ 1,309,645 | $ 5,306,194 |
A Distributions for Class K are for the period May 9, 2008 (commencement of sale of shares) to March 31, 2009.
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
Years ended March 31, | 2009 A | 2008 | 2009 A | 2008 |
Magellan | | | | |
Shares sold | 67,541 | 38,165 | $ 3,768,183 | $ 3,471,068 |
Conversion to Class K | (31,425) | - | (1,493,617) | - |
Reinvestment of distributions | 15,818 | 57,152 | 1,322,410 | 5,364,952 |
Shares redeemed | (131,814) | (102,008) | (7,554,889) | (9,459,108) |
Net increase (decrease) | (79,880) | (6,691) | $ (3,957,913) | $ (623,088) |
Class K | | | | |
Shares sold | 2,449 | - | $ 108,963 | $ - |
Conversion from Magellan | 31,429 | - | 1,493,617 | - |
Reinvestment of distributions | 64 | - | 2,690 | - |
Shares redeemed | (2,214) | - | (96,257) | - |
Net increase (decrease) | 31,728 | - | $ 1,509,013 | $ - |
A Share transactions for Class K are for the period May 9, 2008 (commencement of sale of shares) to March 31, 2009.
12. 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.
Annual Report
To the Trustees and Shareholders of Fidelity Magellan Fund:
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 Magellan Fund at March 31, 2009 the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, 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 Magellan Fund'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 March 31, 2009 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
May 14, 2009
Annual Report
The Trustees, Member of the Advisory Board, and executive officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, and review the fund's performance. Except for Edward C Johnson 3d and James C. Curvey, each of the Trustees oversees 222 funds advised by FMR or an affiliate. Messrs. Johnson and Curvey oversee 383 funds advised by FMR or an affiliate.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) (Independent Trustee), shall retire not later than the last day of the calendar year in which his or her 72nd birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. The executive officers and Advisory Board Member hold office without limit in time, except that any officer and Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Interested Trustees*:
Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation |
Edward C. Johnson 3d (78) |
| Year of Election or Appointment: 1984 Mr. Johnson is Chairman of the Board of Trustees. Mr. Johnson serves as Chief Executive Officer, Chairman, and a Director of FMR LLC; Chairman and a Director of FMR; Chairman and a Director of Fidelity Research & Analysis Company (FRAC); Chairman and a Director of Fidelity Investments Money Management, Inc.; and Chairman and a Director of FMR Co., Inc. In addition, Mr. Johnson serves as Chairman and Director of FIL Limited. Previously, Mr. Johnson served as President of FMR LLC (2006-2007). |
James C. Curvey (73) |
| Year of Election or Appointment: 2007 Mr. Curvey also serves as Trustee (2007-present) of other investment companies advised by FMR. Mr. Curvey is a Director of FMR and FMR Co., Inc. (2007-present). Mr. Curvey is also Vice Chairman (2006-
present) and Director of FMR LLC. In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the Trustees of Villanova University. |
* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR.
Independent Trustees:
Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Age; Principal Occupation |
Dennis J. Dirks (60) |
| Year of Election or Appointment: 2005 Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC) (1999-2003). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) (1999-2003) and President and Board member of the National Securities Clearing Corporation (NSCC) (1999-2003). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation (2001-2003), Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation (2001-2003), as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), and as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008). Currently, Mr. Dirks serves as a member of the Board of Directors for The Brookville Center for Children's Services, Inc. (2009-present). |
Alan J. Lacy (55) |
| Year of Election or Appointment: 2008 Mr. Lacy serves as Senior Adviser (2007-present) of Oak Hill Capital Partners, L.P. (private equity). Mr. Lacy also served as Chief Executive Officer (2000-2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation and Sears, Roebuck and Co. (retail). In addition, Mr. Lacy serves as a member of the Board of Directors of The Western Union Company (global money transfer, 2006-present) and Bristol-Myers Squibb Company (global pharmaceuticals, 2007-present). Mr. Lacy is Chairman (2008-present) and a member (2006-present) of the Board of Trustees of The National Parks Conservation Association. |
Ned C. Lautenbach (65) |
| Year of Election or Appointment: 2000 Mr. Lautenbach is Chairman of the Independent Trustees of the Equity and High Income Funds (2006-present). Mr. Lautenbach is an Advisory Partner of Clayton, Dubilier & Rice, Inc. (private equity investment). Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. Mr. Lautenbach serves as a Director of Eaton Corporation (diversified industrial) as well as the Philharmonic Center for the Arts in Naples, Florida. Mr. Lautenbach is also a member of the Board of Trustees of Fairfield University (2005-present), as well as a member of the Council on Foreign Relations. Previously, Mr. Lautenbach served as a Director of Sony Corporation (2006-2007). |
Joseph Mauriello (64) |
| Year of Election or Appointment: 2008 Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Capital Ltd. (global insurance and re-insurance, 2006-present) and of Arcadia Resources Inc. (health care services and products, 2007-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007). |
Cornelia M. Small (64) |
| Year of Election or Appointment: 2005 Ms. Small is a member of the Board of Directors of the Teagle Foundation (2009-present). Ms. Small is also a member of the Investment Committee, and Chair (2008-present) and a member of the Board of Trustees of Smith College. In addition, Ms. Small serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson of the Investment Committee (2002-2008) of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments. |
William S. Stavropoulos (69) |
| Year of Election or Appointment: 2001 Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is a Director of Teradata Corporation (data warehousing and technology solutions, 2008-present), Chemical Financial Corporation, Maersk Inc. (industrial conglomerate), Tyco International, Inc. (multinational manufacturing and services, 2007-present), and a member of the Advisory Board for Metalmark Capital (private equity investment, 2005-present). Mr. Stavropoulos is a special advisor to Clayton, Dubilier & Rice, Inc. (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science. |
David M. Thomas (59) |
| Year of Election or Appointment: 2008 Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions). In addition, Mr. Thomas serves as a member of the Board of Directors of Fortune Brands, Inc. (consumer products), and Interpublic Group of Companies, Inc. (marketing communication, 2004-present). |
Michael E. Wiley (58) |
| Year of Election or Appointment: 2008 Mr. Wiley also serves as a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-present), and as a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-present). Mr. Wiley serves as a Director of Tesoro Corporation (independent oil refiner and marketer, 2005-
present), and a Director of Bill Barrett Corporation (exploration and production, 2005-present). In addition, Mr. Wiley also serves as a Director of Post Oak Bank (privately-held bank, 2004-present). Previously, Mr. Wiley served as a Sr. Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), as an Advisory Director of Riverstone Holdings (private investment), Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004), and as Director of Spinnaker Exploration Company (exploration and production, 2001-2005). |
Advisory Board Member and Executive Officers:
Correspondence intended for each executive officer and Mr. Lynch may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation |
Peter S. Lynch (65) |
| Year of Election or Appointment: 2003 Member of the Advisory Board of Fidelity's Equity and High Income Funds. Mr. Lynch is Vice Chairman and a Director of FMR, and Vice Chairman (2001-present) and a Director of FMR Co., Inc. Previously, Mr. Lynch served as a Trustee of the Fidelity funds (1990-2003). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006). |
Kenneth B. Robins (39) |
| Year of Election or Appointment: 2008 President and Treasurer of Fidelity's Equity and High Income Funds. Mr. Robins is an employee of Fidelity Investments (2004-present). Before joining Fidelity Investments, Mr. Robins worked at KPMG LLP, where he was a partner in KPMG's department of professional practice (2002-2004). |
Bruce T. Herring (43) |
| Year of Election or Appointment: 2006 Vice President of certain Equity Funds. Mr. Herring also serves as Group Chief Investments Officer of FMR. Previously, Mr. Herring served as a portfolio manager for Fidelity U.S. Equity Funds. |
Scott C. Goebel (41) |
| Year of Election or Appointment: 2008 Secretary and Chief Legal Officer (CLO) of the Fidelity funds. Mr. Goebel also serves as General Counsel, Secretary, and Senior Vice President of FMR (2008-present) and FMR Co., Inc. (2008-present); Deputy General Counsel of FMR LLC; Chief Legal Secretary of Fidelity Management & Research (Hong Kong) Limited (2008-present) and Assistant Secretary of Fidelity Management & Research (Japan) Inc. (2008-present), Fidelity Investments Money Management, Inc. (2008-
present), Fidelity Management & Research (U.K.) Inc. (2008-present), and Fidelity Research and Analysis Company (2008-present). Previously, Mr. Goebel served as Assistant Secretary of the Funds (2007-2008) and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007). |
John B. McGinty, Jr. (46) |
| Year of Election or Appointment: 2008 Assistant Secretary of Fidelity's Equity and High Income Funds. Mr. McGinty is an employee of Fidelity Investments (2004-present). Mr. McGinty also serves as Senior Vice President, Secretary, and Chief Legal Officer of FDC (2007-present). Before joining Fidelity Investments, Mr. McGinty practiced law at Ropes & Gray, LLP. |
Holly C. Laurent (54) |
| Year of Election or Appointment: 2008 Anti-Money Laundering (AML) Officer of the Fidelity funds. Ms. Laurent is an employee of Fidelity Investments. Previously, Ms. Laurent was Senior Vice President and Head of Legal for Fidelity Business Services India Pvt. Ltd. (2006-2008), and Senior Vice President, Deputy General Counsel and Group Head for FMR LLC (2005-2006). |
Christine Reynolds (50) |
| Year of Election or Appointment: 2008 Chief Financial Officer of the Fidelity funds. Ms. Reynolds became President of Fidelity Pricing and Cash Management Services (FPCMS) in August 2008. Ms. Reynolds served as Chief Operating Officer of FPCMS (2007-2008). Previously, Ms. Reynolds served as President, Treasurer, and Anti-Money Laundering officer of the Fidelity funds (2004-2007). |
Kenneth A. Rathgeber (61) |
| Year of Election or Appointment: 2004 Chief Compliance Officer of Fidelity's Equity and High Income Funds. Mr. Rathgeber is Chief Compliance Officer of Fidelity Management & Research (Hong Kong) Limited (2008-present), Fidelity Management & Research (Japan) Inc. (2008-present), FMR (2005-present), FMR Co., Inc. (2005-present), Fidelity Management & Research (U.K.) Inc. (2005-present), Fidelity Research & Analysis Company (2005-present), Fidelity Investments Money Management, Inc. (2005-present), Pyramis Global Advisors, LLC (2005-present), and Strategic Advisers, Inc. (2005-present). |
Bryan A. Mehrmann (47) |
| Year of Election or Appointment: 2005 Deputy Treasurer of the Fidelity funds. Mr. Mehrmann is an employee of Fidelity Investments. Previously, Mr. Mehrmann served as Vice President of Fidelity Investments Institutional Services Group (FIIS)/Fidelity Investments Institutional Operations Company, Inc. (FIIOC) Client Services (1998-2004). |
Adrien E. Deberghes (41) |
| Year of Election or Appointment: 2008 Deputy Treasurer of Fidelity's Equity and High Income Funds. Mr. Deberghes is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). |
Robert G. Byrnes (42) |
| Year of Election or Appointment: 2005 Assistant Treasurer of the Fidelity funds. Mr. Byrnes is an employee of Fidelity Investments (2005-present). Previously, Mr. Byrnes served as Vice President of Fidelity Pricing and Cash Management Services (FPCMS) (2003-2005). |
Paul M. Murphy (62) |
| Year of Election or Appointment: 2007 Assistant Treasurer of the Fidelity funds. Mr. Murphy is an employee of Fidelity Investments (2007-present). Previously, Mr. Murphy served as Chief Financial Officer of the Fidelity funds (2005-2006), Vice President and Associate General Counsel of FMR (2007), and Senior Vice President of Fidelity Pricing and Cash Management Services (FPCMS) (1994-2007). |
Gary W. Ryan (50) |
| Year of Election or Appointment: 2005 Assistant Treasurer of the Fidelity funds. Mr. Ryan is an employee of Fidelity Investments. Previously, Mr. Ryan served as Vice President of Fund Reporting in Fidelity Pricing and Cash Management Services (FPCMS) (1999-2005). |
Annual Report
Class K designates 100% of the dividends distributed during the fiscal year as qualifying for the dividends-received deduction for corporate shareholders.
Class K designates 100% of the dividends distributed during the fiscal year as amounts which may be taken into account as a dividend for the purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
The fund will notify shareholders in January 2010 of amounts for use in preparing 2009 income tax returns.
Annual Report
A special meeting of the fund's shareholders was held on June 18, 2008. The results of votes taken among shareholders on the 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 elect a Board of Trustees.A |
| # of
Votes | % of
Votes |
James C. Curvey |
Affirmative | 18,109,270,380.55 | 94.100 |
Withheld | 1,135,516,161.25 | 5.900 |
TOTAL | 19,244,786,541.80 | 100.000 |
Dennis J. Dirks |
Affirmative | 18,183,535,716.39 | 94.486 |
Withheld | 1,061,250,825.41 | 5.514 |
TOTAL | 19,244,786,541.80 | 100.000 |
Edward C. Johnson 3d |
Affirmative | 18,063,070,640.34 | 93.860 |
Withheld | 1,181,715,901.46 | 6.140 |
TOTAL | 19,244,786,541.80 | 100.000 |
Alan J. Lacy |
Affirmative | 18,160,195,009.17 | 94.364 |
Withheld | 1,084,591,532.63 | 5.636 |
TOTAL | 19,244,786,541.80 | 100.000 |
Ned C. Lautenbach |
Affirmative | 18,154,661,764.90 | 94.335 |
Withheld | 1,090,124,776.90 | 5.665 |
TOTAL | 19,244,786,541.80 | 100.000 |
Joseph Mauriello |
Affirmative | 18,168,495,175.00 | 94.407 |
Withheld | 1,076,291,366.80 | 5.593 |
TOTAL | 19,244,786,541.80 | 100.000 |
Cornelia M. Small |
Affirmative | 18,169,961,949.99 | 94.415 |
Withheld | 1,074,824,591.81 | 5.585 |
TOTAL | 19,244,786,541.80 | 100.000 |
| # of
Votes | % of
Votes |
William S. Stavropoulos |
Affirmative | 18,102,055,299.02 | 94.062 |
Withheld | 1,142,731,242.78 | 5.938 |
TOTAL | 19,244,786,541.80 | 100.000 |
David M. Thomas |
Affirmative | 18,181,282,476.48 | 94.474 |
Withheld | 1,063,504,065.32 | 5.526 |
TOTAL | 19,244,786,541.80 | 100.000 |
Michael E. Wiley |
Affirmative | 18,158,086,685.68 | 94.353 |
Withheld | 1,086,699,856.12 | 5.647 |
TOTAL | 19,244,786,541.80 | 100.000 |
PROPOSAL 2 |
To amend the Declaration of Trust to reduce the required quorum for future shareholder meetings.A |
| # of
Votes | % of
Votes |
Affirmative | 13,514,327,490.91 | 70.223 |
Against | 4,025,294,334.94 | 20.917 |
Abstain | 1,005,410,465.12 | 5.224 |
Broker
Non-Votes | 699,754,250.83 | 3.636 |
TOTAL | 19,244,786,541.80 | 100.000 |
PROPOSAL 4 |
For Fidelity Magellan Fund, a shareholder proposal concerning "oversight procedures to screen out investments in companies that, in the judgment of the Board, substantially contribute to genocide, patterns of extraordinary and egregious violations of human rights, or crimes against humanity." |
| # of
Votes | % of
Votes |
Affirmative | 5,419,708,682.11 | 28.162 |
Against | 11,968,157,955.66 | 62.189 |
Abstain | 1,157,165,653.20 | 6.013 |
Broker
Non-Votes | 699,754,250.83 | 3.636 |
TOTAL | 19,244,786,541.80 | 100.000 |
A Denotes trust-wide proposal and voting results.
Annual 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
Fidelity Investments Japan Limited
FIL Investment Advisors
FIL Investment Advisors (U.K.) Ltd.
Fidelity Management & Research
(Japan) Inc.
Fidelity Management & Research
(Hong Kong) 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
State Street Bank and Trust Company Quincy, MA
MAG-K-UANN-0509
1.863176.100
Item 2. Code of Ethics
As of the end of the period, March 31, 2009, Fidelity Magellan Fund (the trust) has adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its President and Treasurer and its Chief Financial Officer. A copy of the code of ethics is filed as an exhibit to this Form N-CSR.
Item 3. Audit Committee Financial Expert
The Board of Trustees of the trust has determined that Joseph Mauriello is an audit committee financial expert, as defined in Item 3 of Form N-CSR. Mr. Mauriello is independent for purposes of Item 3 of Form N-CSR.
Item 4. Principal Accountant Fees and Services
Fees and Services
The following table presents fees billed by PricewaterhouseCoopers LLP ("PwC") in each of the last two fiscal years for services rendered to Fidelity Magellan Fund (the "Fund"):
Services Billed by PwC
March 31, 2009 FeesA
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
Fidelity Magellan Fund | $245,000 | $- | $4,400 | $26,000 |
March 31, 2008 FeesA
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
Fidelity Magellan Fund | $265,000 | $- | $4,900 | $24,100 |
A Amounts may reflect rounding.
The following table presents fees billed by PwC that were required to be approved by the Audit Committee for services that relate directly to the operations and financial reporting of the Fund and that are rendered on behalf of Fidelity Management & Research Company ("FMR") and entities controlling, controlled by, or under common control with FMR (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) that provide ongoing services to the Fund ("Fund Service Providers"):
Services Billed by PwC
| March 31, 2009A | March 31, 2008A |
Audit-Related Fees | $3,305,000 | $510,000B |
Tax Fees | $2,000 | $- |
All Other Fees | $- | $-B |
A Amounts may reflect rounding.
B Reflects current period presentation.
"Audit-Related Fees" represent fees billed for assurance and related services that are reasonably related to the performance of the fund audit or the review of the fund's financial statements and that are not reported under Audit Fees.
"Tax Fees" represent fees billed for tax compliance, tax advice or tax planning that relate directly to the operations and financial reporting of the fund.
"All Other Fees" represent fees billed for assurance services provided to the fund or Fund Service Provider that relate directly to the operations and financial reporting of the fund, excluding those services that are reported under Audit Fees, Audit-Related Fees or Tax Fees.
Assurance services must be performed by an independent public accountant.
* * *
The aggregate non-audit fees billed by PwC for services rendered to the Fund, FMR (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any Fund Service Provider for each of the last two fiscal years of the Fund are as follows:
Billed By | March 31, 2009 A | March 31, 2008 A |
PwC | $3,740,000 | $1,705,000 |
A Amounts may reflect rounding.
The trust's Audit Committee has considered non-audit services that were not pre-approved that were provided by PwC to Fund Service Providers to be compatible with maintaining the independence of PwC in its audit of the Fund, taking into account representations from PwC, in accordance with Public Company Accounting Oversight Board rules, regarding its independence from the Fund and its related entities and FMR's review of the appropriateness and permissibility under applicable law of such non-audit services prior to their provision to the Fund Service Providers.
Audit Committee Pre-Approval Policies and Procedures
The trust's Audit Committee must pre-approve all audit and non-audit services provided by a fund's independent registered public accounting firm relating to the operations or financial reporting of the fund. Prior to the commencement of any audit or non-audit services to a fund, the Audit Committee reviews the services to determine whether they are appropriate and permissible under applicable law.
The Audit Committee has adopted policies and procedures to, among other purposes, provide a framework for the Committee's consideration of non-audit services by the audit firms that audit the Fidelity funds. The policies and procedures require that any non-audit service provided by a fund audit firm to a Fidelity fund and any non-audit service provided by a fund auditor to a Fund Service Provider that relates directly to the operations and financial reporting of a Fidelity fund ("Covered Service") are subject to approval by the Audit Committee before such service is provided.
All Covered Services must be approved in advance of provision of the service either: (i) by formal resolution of the Audit Committee, or (ii) by oral or written approval of the service by the Chair of the Audit Committee (or if the Chair is unavailable, such other member of the Audit Committee as may be designated by the Chair to act in the Chair's absence). The approval contemplated by (ii) above is permitted where the Treasurer determines that action on such an engagement is necessary before the next meeting of the Audit Committee.
Non-audit services provided by a fund audit firm to a Fund Service Provider that do not relate directly to the operations and financial reporting of a Fidelity fund are reported to the Audit Committee on a periodic basis.
Non-Audit Services Approved Pursuant to Rule 2-01(c)(7)(i)(C) and (ii) of Regulation S-X ("De Minimis Exception")
There were no non-audit services approved or required to be approved by the Audit Committee pursuant to the De Minimis Exception during the Fund's last two fiscal years relating to services provided to (i) the Fund or (ii) any Fund Service Provider that relate directly to the operations and financial reporting of the Fund.
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. Investments
(a) Not applicable.
(b) 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 trust's Board of Trustees.
Item 11. Controls and Procedures
(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the trust's 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) | Code of Ethics pursuant to Item 2 of Form N-CSR is filed and attached hereto as EX-99.CODE ETH. |
(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 Magellan Fund
By: | /s/Kenneth B. Robins |
| Kenneth B. Robins |
| President and Treasurer |
| |
Date: | May 29, 2009 |
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/Kenneth B. Robins |
| John R. Hebble |
| President and Treasurer |
| |
Date: | May 29, 2009 |
By: | /s/Christine Reynolds |
| Christine Reynolds |
| Chief Financial Officer |
| |
Date: | May 29, 2009 |
