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 811-4118
Fidelity Securities Fund
(Exact name of registrant as specified in charter)
82 Devonshire St., Boston, Massachusetts 02109
(Address of principal executive offices) (Zip code)
Eric D. Roiter, Secretary
82 Devonshire St.
Boston, Massachusetts 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: 617-563-7000
Date of fiscal year end: | November 30 |
| |
Date of reporting period: | November 30, 2003 |
Item 1. Reports to Stockholders
(Fidelity Investment logo)(registered trademark)
Fidelity® Advisor
Aggressive Growth
Fund - Class A, Class T, Class B
and Class C
Annual Report
November 30, 2003
(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. |
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. |
Auditors' Opinion | <Click Here> | |
Trustees and Officers | <Click Here> | |
For a free copy of the fund's proxy voting guidelines call 1-877-208-0098 or visit the Securities and Exchange Commission (SEC)'s web site at www.sec.gov.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR Corp. or an affiliated company.
(Recycle graphic) This report is printed on recycled paper using soy-based inks.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
Mutual fund shares are not deposits or obligations of, or guaranteed by, any depository institution. Shares are not insured by the FDIC, Federal Reserve Board or any other agency, and are subject to investment risks, including possible loss of principal amount invested.
Neither the fund nor Fidelity Distributors Corporation is a bank.
For more information on any Fidelity Advisor fund, including charges and expenses, contact your investment professional for a free prospectus. Read it carefully before you invest or send money.
Annual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
Many of you have read or heard news stories recently that were critical of mutual funds and made allegations that the mutual fund industry has been less than forthright. I find these reports unsettling and not necessarily an accurate picture of the overall industry, and I would like you to know where we at Fidelity stand.
With specific regard to allegations that certain mutual fund companies were violating the Securities and Exchange Commission's forward pricing rules or were involved in so-called "market timing" activities, I want to say two things:
First, Fidelity does not have agreements that permit customers who buy fund shares after 4 p.m. to obtain the 4 p.m. price. This is not to say that someone could not deceive the company through fraudulent acts. But I underscore that we have no so-called "agreements" which would permit this illegal practice.
Second, Fidelity has been on record for years opposing predatory short-term trading which adversely affects other shareholders in a mutual fund. In fact, in the 1980s, we began charging a fee - which is returned to the fund and, therefore, to investors - to discourage this activity. What's more, several years ago we took the industry lead in developing a Fair Value Pricing Policy to prevent market timing on foreign securities in our funds. It is reasonable to assume that another structure can be developed that would alter the system to make it much more difficult for predatory traders to operate. This, however, will only be achieved through close cooperation among regulators, legislators and the industry.
Certainly no industry is perfect, and there have been instances of unethical and illegal activity from time to time within the mutual fund industry. When this occurs, confessed or convicted offenders should be dealt with appropriately. Clearly, every system can be improved. We applaud well thought out improvements by regulators, legislators and industry representatives that achieve the common goal of building and protecting the value of investors' holdings. But we remain concerned about the risk of over-regulation and the quick application of simplistic solutions to intricate problems.
For more than 57 years, Fidelity Investments has worked very hard to improve its products and service to justify your trust. When our family founded this company in 1946, we had only a few hundred customers. Many of them were family and friends. Today, we serve more than 18 million customers including individual investors and participants in retirement plans across America.
Let me close by saying that we do not take your trust in us for granted, and we realize that we must always work to improve all aspects of our service to you. In turn, we urge you to continue your active participation with your financial matters, so that your interests can be well served.
Best regards,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Annual Report
Performance: The Bottom Line
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) and assuming a constant rate of performance each year. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. 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. How a fund did yesterday is no guarantee of how it will do tomorrow. Returns may reflect the conversion of Class B shares to Class A shares after a maximum of seven years.
Average Annual Total Returns
Periods ended November 30, 2003 | | | Past 1
year | Life of
fundA |
Class A (incl. 5.75% sales charge) | | | 16.83% | -8.74% |
Class T (incl. 3.50% sales charge) | | | 19.31% | -8.30% |
Class B (incl. contingent deferred sales charge)B | | | 18.08% | -8.56% |
Class C (incl. contingent deferred sales charge)C | | | 22.04% | -7.60% |
A From November 13, 2000.
B Class B shares' contingent deferred sales charges included in the past one year and life of fund total return figures are 5% and 3%, respectively.
C Class C shares' contingent deferred sales charges included in the past one year and life of fund total return figures are 1% and 0%, respectively.
Annual Report
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity® Advisor Aggressive Growth Fund - Class T on November 13, 2000, when the fund started, and the current 3.50% sales charge was paid. The chart shows what the value of your investment would have been, and also shows how the Russell Midcap® Growth Index did over the same period.
Annual Report
Management's Discussion of Fund Performance
Comments from Rajiv Kaul, Portfolio Manager of Fidelity® Advisor Aggressive Growth Fund
A healthier economy translated into improved equity market performance for the year ending November 30, 2003. Early signals of an economic recovery were seen when growth in gross domestic product (GDP) surprised on the upside in the first and second quarters of 2003. The Federal Reserve Board added further fuel in June by dropping interest rates to a 45-year low. Federal tax cuts and credits, as well as a boom in mortgage refinancing, put even more discretionary income in consumers' pockets. In the third quarter, GDP growth, propelled by robust consumer and business spending, grew 8.2%, its highest level since 1984. Consumer spending had its strongest third quarter since 1997, while corporate profits had their best showing since 1992. As a result of 2003's economic momentum, stocks enjoyed their best showing since 1999 and were poised to end their three-year losing streak. For the year ending November 30, 2003, the Standard & Poor's 500SM Index gained 15.09%, the Dow Jones Industrial AverageSM returned 12.47% and the NASDAQ Composite® Index advanced 33.23%.
For the 12 months ending November 30, 2003, the fund's Class A, Class T, Class B and
Class C shares returned 23.96%, 23.64%, 23.08% and 23.04%, respectively, trailing the 32.64% return of the Russell Midcap® Growth Index and the 26.65% return of the LipperSM Mid-Cap Funds Average. My defensive bias was counterproductive, as I had trouble finding stocks that met my investment criteria. Moreover, stock selection in retailing, pharmaceuticals and biotechnology, and health care equipment and services hurt performance. On the positive side, stock selection aided relative performance in software and services, media and telecommunication services. Top contributor Newmont Mining benefited from investors' positive expectations for the price of gold, which were fueled in part by a weak U.S. dollar. Intel also helped, boosted by the rapid adoption of the company's new Centrino chip. Detractors included Amgen, which was undercut by concerns about possible cutbacks in Medicare reimbursement for Epogen, its medication for kidney dialysis patients. Also hurting performance was oil services provider Weatherford International, a victim of meager spending on new exploration projects.
The views expressed in this statement reflect those of the portfolio manager only through the end of the period of the report as stated on the cover 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
Investment Changes
Top Ten Stocks as of November 30, 2003 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Genentech, Inc. | 2.8 | 1.2 |
Lexmark International, Inc. Class A | 2.0 | 0.6 |
Biogen Idec, Inc. | 1.7 | 1.2 |
Biomet, Inc. | 1.6 | 1.4 |
Caremark Rx, Inc. | 1.6 | 0.7 |
Cisco Systems, Inc. | 1.3 | 0.0 |
Microchip Technology, Inc. | 1.2 | 0.3 |
Nextel Communications, Inc. Class A | 1.2 | 1.0 |
Siebel Systems, Inc. | 1.2 | 0.2 |
Starbucks Corp. | 1.1 | 0.8 |
| 15.7 | |
Top Five Market Sectors as of November 30, 2003 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Information Technology | 28.9 | 16.1 |
Health Care | 24.5 | 22.5 |
Consumer Discretionary | 19.7 | 17.1 |
Industrials | 8.3 | 8.3 |
Consumer Staples | 4.0 | 4.9 |
Asset Allocation (% of fund's net assets) |
As of November 30, 2003* | As of May 31, 2003** |
 | Stocks and Investment Companies 96.5% | | | Stocks, Investment Companies and
Equity Futures 85.3% | |
 | Short-Term
Investments and
Net Other Assets 3.5% | | | Short-Term
Investments and
Net Other Assets 14.7% | |
* Foreign
investments | 6.0% | | ** Foreign investments | 1.7% | |
Annual Report
Investments November 30, 2003
Showing Percentage of Net Assets
Common Stocks - 96.0% |
| Shares | | Value
(Note 1) |
CONSUMER DISCRETIONARY - 19.7% |
Auto Components - 0.2% |
Gentex Corp. | 1,000 | | $ 42,140 |
Lear Corp. (a) | 600 | | 35,484 |
| | 77,624 |
Automobiles - 0.3% |
Harley-Davidson, Inc. | 2,000 | | 94,340 |
Hotels, Restaurants & Leisure - 5.4% |
Brinker International, Inc. (a) | 5,400 | | 175,824 |
California Pizza Kitchen, Inc. (a) | 2,000 | | 37,000 |
Darden Restaurants, Inc. | 6,140 | | 127,159 |
Harrah's Entertainment, Inc. | 1,560 | | 74,677 |
Hilton Hotels Corp. | 5,100 | | 83,436 |
International Game Technology | 7,490 | | 259,828 |
Mandalay Resort Group | 600 | | 25,770 |
Marriott International, Inc. Class A | 1,600 | | 73,328 |
McDonald's Corp. | 4,800 | | 123,024 |
Outback Steakhouse, Inc. | 1,400 | | 62,650 |
Starbucks Corp. (a) | 12,000 | | 384,840 |
Station Casinos, Inc. | 1,600 | | 49,888 |
Sunterra Corp. (a) | 1,500 | | 15,000 |
The Cheesecake Factory, Inc. (a) | 2,500 | | 108,400 |
Wendy's International, Inc. | 900 | | 34,947 |
Yum! Brands, Inc. (a) | 5,800 | | 200,042 |
| | 1,835,813 |
Household Durables - 1.0% |
Black & Decker Corp. | 2,190 | | 101,594 |
Harman International Industries, Inc. | 710 | | 96,752 |
Maytag Corp. | 2,410 | | 63,720 |
Mohawk Industries, Inc. (a) | 910 | | 65,593 |
Ryland Group, Inc. | 300 | | 27,645 |
| | 355,304 |
Internet & Catalog Retail - 0.1% |
Overstock.com, Inc. (a) | 1,000 | | 15,810 |
Leisure Equipment & Products - 0.4% |
Brunswick Corp. | 600 | | 18,030 |
Mattel, Inc. | 3,660 | | 74,078 |
Polaris Industries, Inc. | 400 | | 34,468 |
| | 126,576 |
Common Stocks - continued |
| Shares | | Value
(Note 1) |
CONSUMER DISCRETIONARY - continued |
Media - 2.5% |
Cablevision Systems Corp. - NY Group Class A (a) | 5,600 | | $ 116,032 |
E.W. Scripps Co. Class A | 1,600 | | 147,296 |
Entercom Communications Corp. Class A (a) | 540 | | 24,948 |
Fox Entertainment Group, Inc. Class A (a) | 5,270 | | 150,459 |
Gannett Co., Inc. | 910 | | 78,806 |
Getty Images, Inc. (a) | 1,240 | | 53,816 |
Lamar Advertising Co. Class A (a) | 810 | | 28,512 |
Pixar (a) | 1,200 | | 84,132 |
Radio One, Inc. Class D (non-vtg.) (a) | 1,000 | | 17,490 |
The New York Times Co. Class A | 1,600 | | 73,440 |
Viacom, Inc. Class B (non-vtg.) | 500 | | 19,660 |
Westwood One, Inc. (a) | 2,200 | | 66,792 |
| | 861,383 |
Multiline Retail - 1.2% |
99 Cents Only Stores (a) | 500 | | 13,855 |
Big Lots, Inc. (a) | 3,030 | | 44,420 |
Dollar General Corp. | 1,900 | | 40,128 |
Dollar Tree Stores, Inc. (a) | 3,790 | | 120,333 |
Family Dollar Stores, Inc. | 3,150 | | 121,527 |
Fred's, Inc. Class A | 1,070 | | 35,685 |
Tuesday Morning Corp. (a) | 1,500 | | 47,940 |
| | 423,888 |
Specialty Retail - 7.8% |
Abercrombie & Fitch Co. Class A (a) | 2,000 | | 58,700 |
Aeropostale, Inc. (a) | 500 | | 15,595 |
AutoZone, Inc. (a) | 2,990 | | 286,023 |
Best Buy Co., Inc. | 1,700 | | 105,400 |
Chico's FAS, Inc. (a) | 3,700 | | 142,006 |
Christopher & Banks Corp. | 3,120 | | 84,396 |
Circuit City Stores, Inc. | 1,600 | | 20,832 |
Foot Locker, Inc. | 1,000 | | 22,100 |
Hot Topic, Inc. (a) | 4,155 | | 123,819 |
Jo-Ann Stores, Inc. (a) | 600 | | 12,030 |
Michaels Stores, Inc. | 2,900 | | 137,025 |
PETsMART, Inc. | 5,630 | | 136,021 |
Pier 1 Imports, Inc. | 1,100 | | 28,050 |
RadioShack Corp. | 6,300 | | 196,245 |
Ross Stores, Inc. | 4,080 | | 223,502 |
Select Comfort Corp. (a) | 4,700 | | 126,477 |
Common Stocks - continued |
| Shares | | Value
(Note 1) |
CONSUMER DISCRETIONARY - continued |
Specialty Retail - continued |
Staples, Inc. (a) | 13,830 | | $ 375,485 |
Talbots, Inc. | 450 | | 14,747 |
TJX Companies, Inc. | 12,080 | | 272,887 |
Weight Watchers International, Inc. (a) | 3,800 | | 140,372 |
Williams-Sonoma, Inc. (a) | 3,370 | | 121,455 |
| | 2,643,167 |
Textiles Apparel & Luxury Goods - 0.8% |
Coach, Inc. (a) | 5,600 | | 223,104 |
Kenneth Cole Productions, Inc. Class A | 550 | | 16,445 |
NIKE, Inc. Class B | 500 | | 33,625 |
| | 273,174 |
TOTAL CONSUMER DISCRETIONARY | | 6,707,079 |
CONSUMER STAPLES - 4.0% |
Beverages - 0.6% |
Coca-Cola Enterprises, Inc. | 1,860 | | 38,409 |
Constellation Brands, Inc. Class A (a) | 1,000 | | 34,510 |
Pepsi Bottling Group, Inc. | 3,180 | | 73,394 |
PepsiCo, Inc. | 700 | | 33,684 |
| | 179,997 |
Food & Staples Retailing - 1.4% |
CVS Corp. | 6,100 | | 228,506 |
Performance Food Group Co. (a) | 1,870 | | 73,510 |
Walgreen Co. | 1,000 | | 36,810 |
Whole Foods Market, Inc. | 2,200 | | 144,518 |
| | 483,344 |
Food Products - 1.5% |
Dean Foods Co. (a) | 6,490 | | 212,937 |
Del Monte Foods Co. (a) | 1,600 | | 15,312 |
Dreyer's Grand Ice Cream Holdings, Inc. | 1,100 | | 85,195 |
Hershey Foods Corp. | 1,640 | | 127,428 |
McCormick & Co., Inc. (non-vtg.) | 2,600 | | 74,594 |
Wm. Wrigley Jr. Co. | 70 | | 3,858 |
| | 519,324 |
Common Stocks - continued |
| Shares | | Value
(Note 1) |
CONSUMER STAPLES - continued |
Personal Products - 0.5% |
Alberto-Culver Co. Class B | 2,870 | | $ 175,271 |
TOTAL CONSUMER STAPLES | | 1,357,936 |
ENERGY - 3.5% |
Energy Equipment & Services - 2.0% |
BJ Services Co. (a) | 200 | | 6,378 |
Cooper Cameron Corp. (a) | 2,850 | | 123,719 |
ENSCO International, Inc. | 1,610 | | 40,733 |
Halliburton Co. | 600 | | 14,010 |
Nabors Industries Ltd. (a) | 960 | | 35,635 |
Noble Corp. (a) | 1,570 | | 54,291 |
Patterson-UTI Energy, Inc. (a) | 2,550 | | 73,262 |
Smith International, Inc. (a) | 3,930 | | 147,532 |
Weatherford International Ltd. (a) | 6,060 | | 198,647 |
| | 694,207 |
Oil & Gas - 1.5% |
Apache Corp. | 336 | | 24,125 |
Burlington Resources, Inc. | 2,560 | | 128,512 |
Devon Energy Corp. | 496 | | 24,483 |
EOG Resources, Inc. | 1,100 | | 46,134 |
Murphy Oil Corp. | 1,760 | | 105,477 |
Pioneer Natural Resources Co. (a) | 3,900 | | 110,604 |
Teekay Shipping Corp. | 1,400 | | 70,462 |
| | 509,797 |
TOTAL ENERGY | | 1,204,004 |
FINANCIALS - 3.7% |
Capital Markets - 1.8% |
Ameritrade Holding Corp. (a) | 6,000 | | 75,420 |
Bank of New York Co., Inc. | 1,100 | | 33,748 |
Eaton Vance Corp. (non-vtg.) | 2,300 | | 83,605 |
Federated Investors, Inc. Class B (non-vtg.) | 4,080 | | 117,300 |
Investors Financial Services Corp. | 200 | | 7,376 |
Legg Mason, Inc. | 1,530 | | 121,956 |
Lehman Brothers Holdings, Inc. | 616 | | 44,481 |
SEI Investments Co. | 900 | | 25,245 |
Common Stocks - continued |
| Shares | | Value
(Note 1) |
FINANCIALS - continued |
Capital Markets - continued |
T. Rowe Price Group, Inc. | 1,000 | | $ 42,040 |
Waddell & Reed Financial, Inc. Class A | 2,400 | | 53,016 |
| | 604,187 |
Commercial Banks - 1.0% |
Fifth Third Bancorp | 1,640 | | 95,333 |
North Fork Bancorp, Inc., New York | 1,100 | | 43,923 |
Popular, Inc. | 1,100 | | 51,876 |
Sumitomo Mitsui Financial Group, Inc. | 8 | | 39,085 |
Synovus Financial Corp. | 4,100 | | 117,506 |
| | 347,723 |
Consumer Finance - 0.1% |
SLM Corp. | 700 | | 25,991 |
Insurance - 0.5% |
Berkshire Hathaway, Inc. Class A (a) | 2 | | 167,500 |
Thrifts & Mortgage Finance - 0.3% |
New York Community Bancorp, Inc. | 2,900 | | 112,665 |
TOTAL FINANCIALS | | 1,258,066 |
HEALTH CARE - 24.5% |
Biotechnology - 7.0% |
Affymetrix, Inc. (a) | 500 | | 12,335 |
Alkermes, Inc. (a) | 900 | | 11,772 |
Amylin Pharmaceuticals, Inc. (a) | 2,500 | | 65,425 |
Biogen Idec, Inc. (a) | 15,360 | | 586,445 |
Celgene Corp. (a) | 2,450 | | 112,039 |
Cephalon, Inc. (a) | 1,220 | | 57,328 |
Charles River Laboratories International, Inc. (a) | 1,900 | | 61,655 |
Genelabs Technologies, Inc. (a) | 9,600 | | 18,240 |
Genentech, Inc. (a) | 11,340 | | 955,956 |
Genzyme Corp. - General Division (a) | 400 | | 18,696 |
Harvard Bioscience, Inc. (a) | 2,600 | | 18,720 |
ICOS Corp. (a) | 600 | | 27,120 |
ImClone Systems, Inc. (a) | 2,000 | | 78,600 |
Invitrogen Corp. (a) | 1,000 | | 68,170 |
Medarex, Inc. (a) | 1,800 | | 12,240 |
Neurocrine Biosciences, Inc. (a) | 240 | | 12,679 |
Protein Design Labs, Inc. (a) | 15,500 | | 214,830 |
Common Stocks - continued |
| Shares | | Value
(Note 1) |
HEALTH CARE - continued |
Biotechnology - continued |
QIAGEN NV (a) | 1,500 | | $ 16,575 |
Trimeris, Inc. (a) | 1,400 | | 31,962 |
| | 2,380,787 |
Health Care Equipment & Supplies - 5.5% |
Arthrocare Corp. (a) | 1,700 | | 41,820 |
Beckman Coulter, Inc. | 800 | | 40,920 |
Becton, Dickinson & Co. | 1,200 | | 48,036 |
Biomet, Inc. | 15,580 | | 557,297 |
C.R. Bard, Inc. | 1,700 | | 128,520 |
Cytyc Corp. (a) | 2,000 | | 25,780 |
DENTSPLY International, Inc. | 3,550 | | 159,857 |
Edwards Lifesciences Corp. (a) | 4,700 | | 141,564 |
Fisher Scientific International, Inc. (a) | 3,500 | | 140,945 |
I-Stat Corp. (a) | 600 | | 7,560 |
Inverness Medical Innovations, Inc. (a) | 1,200 | | 28,440 |
Medtronic, Inc. | 5,460 | | 246,792 |
ResMed, Inc. (a) | 400 | | 15,600 |
Steris Corp. (a) | 600 | | 13,878 |
VISX, Inc. (a) | 600 | | 14,688 |
Zimmer Holdings, Inc. (a) | 3,900 | | 257,088 |
| | 1,868,785 |
Health Care Providers & Services - 7.8% |
Accredo Health, Inc. (a) | 2,100 | | 65,310 |
Aetna, Inc. | 1,700 | | 109,446 |
AmerisourceBergen Corp. | 1,640 | | 103,796 |
Andrx Corp. (a) | 1,400 | | 30,744 |
Apria Healthcare Group, Inc. (a) | 1,600 | | 43,376 |
Caremark Rx, Inc. (a) | 20,710 | | 552,957 |
Cerner Corp. (a) | 800 | | 35,704 |
Community Health Systems, Inc. (a) | 4,090 | | 110,757 |
Coventry Health Care, Inc. (a) | 2,200 | | 131,780 |
DaVita, Inc. (a) | 300 | | 11,454 |
HCA, Inc. | 1,000 | | 41,910 |
Health Management Associates, Inc. Class A | 8,200 | | 210,740 |
Henry Schein, Inc. (a) | 1,100 | | 74,019 |
Humana, Inc. (a) | 1,800 | | 40,194 |
IMS Health, Inc. | 4,800 | | 110,544 |
Inveresk Research Group, Inc. (a) | 3,100 | | 68,231 |
Laboratory Corp. of America Holdings (a) | 1,100 | | 39,732 |
Common Stocks - continued |
| Shares | | Value
(Note 1) |
HEALTH CARE - continued |
Health Care Providers & Services - continued |
Lincare Holdings, Inc. (a) | 1,200 | | $ 35,796 |
McKesson Corp. | 2,790 | | 81,468 |
Medco Health Solutions, Inc. (a) | 84 | | 3,060 |
PacifiCare Health Systems, Inc. (a) | 200 | | 13,022 |
Patterson Dental Co. (a) | 700 | | 47,670 |
Priority Healthcare Corp. Class B (a) | 2,380 | | 54,573 |
Quest Diagnostics, Inc. | 1,000 | | 72,970 |
Renal Care Group, Inc. (a) | 1,800 | | 72,648 |
Select Medical Corp. (a) | 1,500 | | 53,775 |
Specialty Laboratories, Inc. (a) | 1,000 | | 16,700 |
Tenet Healthcare Corp. (a) | 4,800 | | 70,128 |
Triad Hospitals, Inc. (a) | 1,470 | | 50,862 |
UnitedHealth Group, Inc. | 2,800 | | 150,920 |
Universal Health Services, Inc. Class B (a) | 2,700 | | 145,179 |
| | 2,649,465 |
Pharmaceuticals - 4.2% |
aaiPharma, Inc. (a) | 150 | | 2,727 |
Abbott Laboratories | 1,480 | | 65,416 |
Allergan, Inc. | 2,950 | | 220,454 |
Barr Laboratories, Inc. (a) | 2,245 | | 185,302 |
Biovail Corp. (a) | 830 | | 15,612 |
Bristol-Myers Squibb Co. | 1,900 | | 50,065 |
Elan Corp. PLC sponsored ADR (a) | 1,200 | | 6,552 |
Endo Pharmaceuticals Holdings, Inc. (a) | 1,100 | | 20,724 |
Forest Laboratories, Inc. (a) | 1,520 | | 83,053 |
IVAX Corp. (a) | 6,800 | | 145,860 |
Johnson & Johnson | 700 | | 34,503 |
Merck & Co., Inc. | 600 | | 24,360 |
MGI Pharma, Inc. (a) | 1,600 | | 61,392 |
Mylan Laboratories, Inc. | 6,435 | | 162,934 |
Pharmaceutical Resources, Inc. (a) | 2,100 | | 152,418 |
Salix Pharmaceuticals Ltd. (a) | 1,500 | | 28,545 |
Schering-Plough Corp. | 5,000 | | 80,250 |
Sepracor, Inc. (a) | 2,400 | | 59,472 |
Watson Pharmaceuticals, Inc. (a) | 800 | | 37,712 |
| | 1,437,351 |
TOTAL HEALTH CARE | | 8,336,388 |
Common Stocks - continued |
| Shares | | Value
(Note 1) |
INDUSTRIALS - 8.3% |
Aerospace & Defense - 1.0% |
EADS NV | 4,000 | | $ 87,265 |
Embraer - Empresa Brasileira de Aeronautica SA
sponsored ADR | 2,800 | | 82,376 |
KVH Industries, Inc. (a) | 200 | | 6,308 |
Lockheed Martin Corp. | 1,300 | | 59,722 |
Northrop Grumman Corp. | 710 | | 65,767 |
Rockwell Collins, Inc. | 1,200 | | 32,268 |
| | 333,706 |
Air Freight & Logistics - 0.1% |
Expeditors International of Washington, Inc. | 700 | | 27,328 |
Building Products - 0.6% |
American Standard Companies, Inc. (a) | 2,090 | | 208,373 |
Commercial Services & Supplies - 4.4% |
Avery Dennison Corp. | 2,200 | | 121,176 |
Career Education Corp. (a) | 1,600 | | 81,808 |
ChoicePoint, Inc. (a) | 1,826 | | 69,845 |
Cintas Corp. | 3,400 | | 158,916 |
Corinthian Colleges, Inc. (a) | 700 | | 44,751 |
DeVry, Inc. (a) | 1,600 | | 43,824 |
Education Management Corp. (a) | 719 | | 48,604 |
Equifax, Inc. | 2,910 | | 68,763 |
H&R Block, Inc. | 4,420 | | 239,962 |
Herman Miller, Inc. | 1,630 | | 42,462 |
HON Industries, Inc. | 800 | | 33,992 |
ITT Educational Services, Inc. (a) | 1,300 | | 72,839 |
Manpower, Inc. | 200 | | 9,388 |
Monster Worldwide, Inc. (a) | 1,300 | | 31,278 |
Pitney Bowes, Inc. | 4,500 | | 178,875 |
Robert Half International, Inc. (a) | 9,240 | | 205,682 |
School Specialty, Inc. (a) | 1,400 | | 40,544 |
| | 1,492,709 |
Construction & Engineering - 0.1% |
Granite Construction, Inc. | 1,600 | | 35,280 |
Electrical Equipment - 0.1% |
Cooper Industries Ltd. Class A | 710 | | 38,092 |
Common Stocks - continued |
| Shares | | Value
(Note 1) |
INDUSTRIALS - continued |
Industrial Conglomerates - 0.6% |
3M Co. | 1,440 | | $ 113,818 |
Tyco International Ltd. | 4,400 | | 100,980 |
| | 214,798 |
Machinery - 0.9% |
AGCO Corp. (a) | 3,300 | | 56,760 |
Astec Industries, Inc. (a) | 2,900 | | 38,251 |
Ingersoll-Rand Co. Ltd. Class A | 600 | | 37,404 |
ITT Industries, Inc. | 2,300 | | 151,616 |
Pall Corp. | 700 | | 17,934 |
| | 301,965 |
Trading Companies & Distributors - 0.5% |
Fastenal Co. | 3,430 | | 170,402 |
TOTAL INDUSTRIALS | | 2,822,653 |
INFORMATION TECHNOLOGY - 28.9% |
Communications Equipment - 5.3% |
3Com Corp. (a) | 10,700 | | 80,036 |
ADC Telecommunications, Inc. (a) | 3,600 | | 8,856 |
Advanced Fibre Communications, Inc. (a) | 1,100 | | 24,585 |
Alcatel SA sponsored ADR (a) | 28,150 | | 366,513 |
Arris Group, Inc. (a) | 1,300 | | 8,385 |
AudioCodes Ltd. (a) | 6,200 | | 72,478 |
Avaya, Inc. (a) | 3,300 | | 44,880 |
Avocent Corp. (a) | 1,000 | | 38,290 |
Brocade Communications Systems, Inc. (a) | 4,660 | | 28,379 |
CIENA Corp. (a) | 8,600 | | 60,888 |
Cisco Systems, Inc. (a) | 19,300 | | 437,338 |
Corning, Inc. (a) | 13,600 | | 155,856 |
Enterasys Networks, Inc. (a) | 6,270 | | 26,898 |
Extreme Networks, Inc. (a) | 3,400 | | 33,354 |
Finisar Corp. (a) | 26,500 | | 106,000 |
Foundry Networks, Inc. (a) | 1,300 | | 34,268 |
InterDigital Communication Corp. (a) | 1,200 | | 24,576 |
JDS Uniphase Corp. (a) | 8,000 | | 27,520 |
Marconi Corp. PLC (a) | 10,820 | | 109,891 |
Nokia Corp. sponsored ADR | 2,200 | | 39,556 |
Polycom, Inc. (a) | 1,670 | | 33,099 |
Common Stocks - continued |
| Shares | | Value
(Note 1) |
INFORMATION TECHNOLOGY - continued |
Communications Equipment - continued |
SeaChange International, Inc. (a) | 1,200 | | $ 18,060 |
Sycamore Networks, Inc. (a) | 3,500 | | 18,620 |
| | 1,798,326 |
Computers & Peripherals - 3.7% |
Avid Technology, Inc. (a) | 400 | | 21,152 |
Diebold, Inc. | 3,400 | | 180,370 |
Electronics for Imaging, Inc. (a) | 800 | | 22,080 |
EMC Corp. (a) | 2,250 | | 30,915 |
Hewlett-Packard Co. | 700 | | 15,183 |
Hutchinson Technology, Inc. (a) | 500 | | 16,285 |
Lexmark International, Inc. Class A (a) | 8,850 | | 684,990 |
Maxtor Corp. (a) | 7,400 | | 82,584 |
Seagate Technology | 5,000 | | 98,750 |
Sun Microsystems, Inc. (a) | 26,760 | | 114,265 |
| | 1,266,574 |
Electronic Equipment & Instruments - 2.1% |
Arrow Electronics, Inc. (a) | 1,000 | | 23,380 |
CDW Corp. | 1,000 | | 59,750 |
Celestica, Inc. (sub. vtg.) (a) | 900 | | 13,710 |
Flextronics International Ltd. (a) | 23,100 | | 370,293 |
Ingram Micro, Inc. Class A (a) | 800 | | 11,664 |
KEMET Corp. (a) | 1,700 | | 22,440 |
Lexar Media, Inc. (a) | 2,110 | | 45,070 |
Symbol Technologies, Inc. | 5,870 | | 81,887 |
Thermo Electron Corp. (a) | 1,260 | | 30,114 |
Vishay Intertechnology, Inc. (a) | 2,500 | | 52,525 |
| | 710,833 |
Internet Software & Services - 0.6% |
Lastminute.com PLC sponsored ADR (a) | 100 | | 2,370 |
Retek, Inc. (a) | 2,785 | | 28,908 |
Sina Corp. (a) | 700 | | 24,500 |
United Online, Inc. (a) | 750 | | 13,658 |
VeriSign, Inc. (a) | 1,100 | | 17,831 |
Vignette Corp. (a) | 27,290 | | 63,040 |
Vitria Technology, Inc. (a) | 4,575 | | 25,986 |
Yahoo!, Inc. (a) | 800 | | 34,384 |
| | 210,677 |
IT Services - 2.5% |
Accenture Ltd. Class A (a) | 1,500 | | 37,350 |
Common Stocks - continued |
| Shares | | Value
(Note 1) |
INFORMATION TECHNOLOGY - continued |
IT Services - continued |
Affiliated Computer Services, Inc. Class A (a) | 2,700 | | $ 135,378 |
Anteon International Corp. (a) | 400 | | 15,264 |
BearingPoint, Inc. (a) | 1,600 | | 14,832 |
Computer Sciences Corp. (a) | 400 | | 16,560 |
Concord EFS, Inc. (a) | 11,900 | | 136,731 |
CSG Systems International, Inc. (a) | 65 | | 753 |
DST Systems, Inc. (a) | 1,100 | | 41,052 |
First Data Corp. | 2,970 | | 112,415 |
Fiserv, Inc. (a) | 2,300 | | 86,250 |
Infosys Technologies Ltd. sponsored ADR | 1,000 | | 83,050 |
Iron Mountain, Inc. (a) | 2,100 | | 77,280 |
Paychex, Inc. | 640 | | 24,621 |
SunGard Data Systems, Inc. (a) | 2,090 | | 56,472 |
The BISYS Group, Inc. (a) | 1,880 | | 28,050 |
| | 866,058 |
Office Electronics - 0.5% |
Xerox Corp. (a) | 5,200 | | 63,336 |
Zebra Technologies Corp. Class A (a) | 1,400 | | 88,998 |
| | 152,334 |
Semiconductors & Semiconductor Equipment - 7.1% |
Advanced Micro Devices, Inc. (a) | 8,200 | | 147,436 |
Agere Systems, Inc. Class A (a) | 17,200 | | 60,888 |
Analog Devices, Inc. | 1,500 | | 74,625 |
ASML Holding NV (NY Shares) (a) | 4,700 | | 88,454 |
Cabot Microelectronics Corp. (a) | 300 | | 15,927 |
Conexant Systems, Inc. (a) | 36,490 | | 184,275 |
Cypress Semiconductor Corp. (a) | 1,800 | | 40,284 |
DuPont Photomasks, Inc. (a) | 100 | | 2,322 |
Integrated Circuit Systems, Inc. (a) | 700 | | 20,825 |
Integrated Device Technology, Inc. (a) | 3,300 | | 62,205 |
Intel Corp. | 5,500 | | 183,865 |
KLA-Tencor Corp. (a) | 1,440 | | 84,398 |
Lam Research Corp. (a) | 600 | | 19,200 |
LSI Logic Corp. (a) | 9,400 | | 88,078 |
Microchip Technology, Inc. | 11,420 | | 392,848 |
Micron Technology, Inc. (a) | 7,900 | | 102,779 |
Mindspeed Technologies, Inc. (a) | 1,230 | | 8,229 |
National Semiconductor Corp. (a) | 3,300 | | 147,576 |
Novellus Systems, Inc. (a) | 2,200 | | 96,272 |
Common Stocks - continued |
| Shares | | Value
(Note 1) |
INFORMATION TECHNOLOGY - continued |
Semiconductors & Semiconductor Equipment - continued |
NVIDIA Corp. (a) | 6,400 | | $ 135,360 |
Photronics, Inc. (a) | 6,400 | | 118,208 |
PMC-Sierra, Inc. (a) | 11,500 | | 234,255 |
Rambus, Inc. (a) | 800 | | 24,000 |
Silicon Laboratories, Inc. (a) | 380 | | 18,647 |
Taiwan Semiconductor Manufacturing Co. Ltd.
sponsored ADR (a) | 120 | | 1,304 |
Texas Instruments, Inc. | 400 | | 11,904 |
United Microelectronics Corp. sponsored ADR (a) | 520 | | 2,725 |
Varian Semiconductor Equipment Associates, Inc. (a) | 1,200 | | 55,872 |
| | 2,422,761 |
Software - 7.1% |
Adobe Systems, Inc. | 4,790 | | 197,923 |
Amdocs Ltd. (a) | 9,900 | | 247,698 |
Autodesk, Inc. | 900 | | 20,898 |
BEA Systems, Inc. (a) | 11,641 | | 147,841 |
BMC Software, Inc. (a) | 1,700 | | 28,271 |
Cadence Design Systems, Inc. (a) | 10,530 | | 176,167 |
Citrix Systems, Inc. (a) | 1,370 | | 32,907 |
Cognos, Inc. (a) | 500 | | 16,767 |
Concord Communications, Inc. (a) | 100 | | 2,214 |
E.piphany, Inc. (a) | 3,200 | | 25,280 |
Electronic Arts, Inc. (a) | 5,700 | | 252,111 |
i2 Technologies, Inc. (a) | 15,800 | | 31,600 |
Intuit, Inc. (a) | 3,600 | | 181,008 |
Jack Henry & Associates, Inc. | 1,290 | | 26,729 |
Manhattan Associates, Inc. (a) | 304 | | 9,251 |
Mercury Interactive Corp. (a) | 3,400 | | 159,120 |
Microsoft Corp. | 10,070 | | 258,799 |
Network Associates, Inc. (a) | 1,550 | | 20,755 |
Oracle Corp. (a) | 3,000 | | 36,030 |
Parametric Technology Corp. (a) | 4,400 | | 15,048 |
Red Hat, Inc. (a) | 1,800 | | 23,904 |
Siebel Systems, Inc. (a) | 29,785 | | 392,566 |
Symantec Corp. (a) | 3,180 | | 104,399 |
VERITAS Software Corp. (a) | 310 | | 11,787 |
| | 2,419,073 |
TOTAL INFORMATION TECHNOLOGY | | 9,846,636 |
Common Stocks - continued |
| Shares | | Value
(Note 1) |
MATERIALS - 1.4% |
Chemicals - 0.5% |
Dow Chemical Co. | 1,300 | | $ 48,815 |
Ferro Corp. | 1,100 | | 24,970 |
International Flavors & Fragrances, Inc. | 800 | | 25,976 |
Olin Corp. | 2,400 | | 43,704 |
Praxair, Inc. | 200 | | 14,356 |
| | 157,821 |
Construction Materials - 0.0% |
Martin Marietta Materials, Inc. | 300 | | 12,771 |
Containers & Packaging - 0.5% |
Owens-Illinois, Inc. (a) | 2,610 | | 29,441 |
Sealed Air Corp. (a) | 2,500 | | 131,925 |
| | 161,366 |
Metals & Mining - 0.4% |
Freeport-McMoRan Copper & Gold, Inc. Class B | 2,730 | | 118,837 |
Massey Energy Co. | 2,300 | | 31,970 |
| | 150,807 |
TOTAL MATERIALS | | 482,765 |
TELECOMMUNICATION SERVICES - 2.0% |
Diversified Telecommunication Services - 0.5% |
Covad Communications Group, Inc. (a) | 14,300 | | 57,200 |
NTL, Inc. (a) | 1,362 | | 88,748 |
Qwest Communications International, Inc. (a) | 9,670 | | 35,392 |
| | 181,340 |
Wireless Telecommunication Services - 1.5% |
Arch Wireless, Inc. Class A (a) | 400 | | 6,988 |
At Road, Inc. (a) | 1,000 | | 12,590 |
KDDI Corp. | 12 | | 62,572 |
MobilCom AG (a) | 1,900 | | 27,012 |
Nextel Communications, Inc. Class A (a) | 15,500 | | 392,615 |
| | 501,777 |
TOTAL TELECOMMUNICATION SERVICES | | 683,117 |
TOTAL COMMON STOCKS (Cost $27,971,115) | 32,698,644 |
Investment Companies - 0.5% |
| Shares | | Value
(Note 1) |
Nasdaq-100 Trust unit Series 1 (a)
(Cost $116,505) | 4,758 | | $ 168,433 |
Money Market Funds - 3.7% |
Fidelity Cash Central Fund, 1.09% (b)
(Cost $1,277,675) | 1,277,675 | | 1,277,675 |
TOTAL INVESTMENT
PORTFOLIO - 100.2% (Cost $29,365,295) | 34,144,752 |
NET OTHER ASSETS - (0.2)% | (82,850) |
NET ASSETS - 100% | $ 34,061,902 |
Legend |
(a) Non-income producing |
(b) The rate quoted is the annualized seven-day yield of the fund at period end. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request. |
Other Information |
Purchases and sales of securities, other than short-term securities, aggregated $44,830,556 and $40,215,963, respectively. |
The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $4,111 for the period. |
Income Tax Information |
At November 30, 2003, the fund had a capital loss carryforward of approximately $14,669,000 of which $7,729,000 and $6,940,000 will expire on November 30, 2009 and 2010, respectively. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements
Statement of Assets and Liabilities
| November 30, 2003 |
| | |
Assets | | |
Investment in securities, at value (cost $29,365,295) - See accompanying schedule | | $ 34,144,752 |
Receivable for investments sold | | 140,000 |
Receivable for fund shares sold | | 110,937 |
Dividends receivable | | 16,881 |
Interest receivable | | 559 |
Prepaid expenses | | 144 |
Receivable from investment adviser for expense reductions | | 13,637 |
Other receivables | | 12,507 |
Total assets | | 34,439,417 |
| | |
Liabilities | | |
Payable for investments purchased | $ 246,607 | |
Payable for fund shares redeemed | 47,133 | |
Accrued management fee | 17,405 | |
Distribution fees payable | 19,613 | |
Other affiliated payables | 19,721 | |
Other payables and accrued expenses | 27,036 | |
Total liabilities | | 377,515 |
| | |
Net Assets | | $ 34,061,902 |
Net Assets consist of: | | |
Paid in capital | | $ 44,212,068 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (14,929,632) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 4,779,466 |
Net Assets | | $ 34,061,902 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
| November 30, 2003 |
| | |
Calculation of Maximum Offering Price | | |
Class A:
Net Asset Value and redemption price per share ($4,176,794 ÷ 521,077 shares) | | $ 8.02 |
| | |
Maximum offering price per share (100/94.25 of $8.02) | | $ 8.51 |
Class T:
Net Asset Value and redemption price per share ($12,457,648 ÷ 1,566,991 shares) | | $ 7.95 |
| | |
Maximum offering price per share (100/96.50 of $7.95) | | $ 8.24 |
Class B:
Net Asset Value and offering price per share ($8,421,613 ÷ 1,074,396 shares) A | | $ 7.84 |
| | |
Class C:
Net Asset Value and offering price per share ($8,426,683 ÷ 1,073,340 shares) A | | $ 7.85 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($579,164 ÷ 71,488 shares) | | $ 8.10 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Operations
| Year ended November 30, 2003 |
| | |
Investment Income | | |
Dividends | | $ 125,344 |
Interest | | 34,964 |
Total income | | 160,308 |
| | |
Expenses | | |
Management fee | $ 176,847 | |
Transfer agent fees | 171,108 | |
Distribution fees | 205,278 | |
Accounting fees and expenses | 61,435 | |
Non-interested trustees' compensation | 113 | |
Custodian fees and expenses | 20,048 | |
Registration fees | 46,752 | |
Audit | 42,277 | |
Legal | 2,299 | |
Miscellaneous | 7,821 | |
Total expenses before reductions | 733,978 | |
Expense reductions | (198,822) | 535,156 |
Net investment income (loss) | | (374,848) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities | 2,331,661 | |
Foreign currency transactions | 204 | |
Futures contracts | 183,055 | |
Total net realized gain (loss) | | 2,514,920 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 4,055,000 | |
Assets and liabilities in foreign currencies | 9 | |
Total change in net unrealized appreciation (depreciation) | | 4,055,009 |
Net gain (loss) | | 6,569,929 |
Net increase (decrease) in net assets resulting from operations | | $ 6,195,081 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements - continued
Statement of Changes in Net Assets
| Year ended
November 30,
2003 | Year ended
November 30,
2002 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (374,848) | $ (478,531) |
Net realized gain (loss) | 2,514,920 | (6,655,693) |
Change in net unrealized appreciation (depreciation) | 4,055,009 | (175,472) |
Net increase (decrease) in net assets resulting
from operations | 6,195,081 | (7,309,696) |
Share transactions - net increase (decrease) | 1,324,213 | (963,336) |
Total increase (decrease) in net assets | 7,519,294 | (8,273,032) |
| | |
Net Assets | | |
Beginning of period | 26,542,608 | 34,815,640 |
End of period | $ 34,061,902 | $ 26,542,608 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class A
Years ended November 30, | 2003 | 2002 | 2001 | 2000 F |
Selected Per-Share Data | | | | |
Net asset value, beginning of period | $ 6.47 | $ 8.08 | $ 9.05 | $ 10.00 |
Income from Investment Operations | | | | |
Net investment income (loss)E | (.06) | (.08) | (.01) | -H |
Net realized and unrealized gain (loss) | 1.61 | (1.53) | (.95) | (.95) |
Total from investment operations | 1.55 | (1.61) | (.96) | (.95) |
Distributions from net realized gain | - | - | (.01) | - |
Net asset value, end of period | $ 8.02 | $ 6.47 | $ 8.08 | $ 9.05 |
Total ReturnB,C,D | 23.96% | (19.93)% | (10.62)% | (9.50)% |
Ratios to Average Net AssetsG | | | | |
Expenses before expense reductions | 2.25% | 2.05% | 2.06% | 31.94%A |
Expenses net of voluntary waivers, if any | 1.54% | 1.69% | 1.75% | 1.75%A |
Expenses net of all reductions | 1.47% | 1.49% | 1.71% | 1.75%A |
Net investment income (loss) | (.89)% | (1.07)% | (.14)% | .99%A |
Supplemental Data | | | | |
Net assets, end of period (000 omitted) | $ 4,177 | $ 2,620 | $ 3,320 | $ 1,789 |
Portfolio turnover rate | 158% | 473% | 481% | 139%A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F For the period November 13, 2000 (commencement of operations) to November 30, 2000.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class T
Years ended November 30, | 2003 | 2002 | 2001 | 2000F |
Selected Per-Share Data | | | | |
Net asset value, beginning of period | $ 6.43 | $ 8.06 | $ 9.05 | $ 10.00 |
Income from Investment Operations | | | | |
Net investment income (loss)E | (.08) | (.10) | (.03) | -H |
Net realized and unrealized gain (loss) | 1.60 | (1.53) | (.95) | (.95) |
Total from investment operations | 1.52 | (1.63) | (.98) | (.95) |
Distributions from net realized gain | - | - | (.01) | - |
Net asset value, end of period | $ 7.95 | $ 6.43 | $ 8.06 | $ 9.05 |
Total ReturnB,C,D | 23.64% | (20.22)% | (10.84)% | (9.50)% |
Ratios to Average Net AssetsG | | | | |
Expenses before expense reductions | 2.47% | 2.16% | 2.30% | 32.36%A |
Expenses net of voluntary waivers, if any | 1.79% | 1.92% | 2.00% | 2.00%A |
Expenses net of all reductions | 1.72% | 1.72% | 1.96% | 2.00%A |
Net investment income (loss) | (1.14)% | (1.29)% | (.39)% | .74%A |
Supplemental Data | | | | |
Net assets, end of period (000 omitted) | $ 12,458 | $ 10,511 | $ 14,165 | $ 2,767 |
Portfolio turnover rate | 158% | 473% | 481% | 139%A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F For the period November 13, 2000 (commencement of operations) to November 30, 2000.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class B
Years ended November 30, | 2003 | 2002 | 2001 | 2000F |
Selected Per-Share Data | | | | |
Net asset value, beginning of period | $ 6.37 | $ 8.02 | $ 9.05 | $ 10.00 |
Income from Investment Operations | | | | |
Net investment income (loss)E | (.11) | (.13) | (.08) | -H |
Net realized and unrealized gain (loss) | 1.58 | (1.52) | (.94) | (.95) |
Total from investment operations | 1.47 | (1.65) | (1.02) | (.95) |
Distributions from net realized gain | - | - | (.01) | - |
Net asset value, end of period | $ 7.84 | $ 6.37 | $ 8.02 | $ 9.05 |
Total ReturnB,C,D | 23.08% | (20.57)% | (11.29)% | (9.50)% |
Ratios to Average Net AssetsG | | | | |
Expenses before expense reductions | 2.92% | 2.73% | 2.86% | 32.87%A |
Expenses net of voluntary waivers, if any | 2.25% | 2.43% | 2.50% | 2.50%A |
Expenses net of all reductions | 2.18% | 2.23% | 2.46% | 2.50%A |
Net investment income (loss) | (1.60)% | (1.81)% | (.89)% | .24%A |
Supplemental Data | | | | |
Net assets, end of period (000 omitted) | $ 8,422 | $ 6,262 | $ 8,038 | $ 1,659 |
Portfolio turnover rate | 158% | 473% | 481% | 139%A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F For the period November 13, 2000 (commencement of operations) to November 30, 2000.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class C
Years ended November 30, | 2003 | 2002 | 2001 | 2000F |
Selected Per-Share Data | | | | |
Net asset value, beginning of period | $ 6.38 | $ 8.03 | $ 9.05 | $ 10.00 |
Income from Investment Operations | | | | |
Net investment income (loss)E | (.11) | (.13) | (.08) | -H |
Net realized and unrealized gain (loss) | 1.58 | (1.52) | (.93) | (.95) |
Total from investment operations | 1.47 | (1.65) | (1.01) | (.95) |
Distributions from net realized gain | - | - | (.01) | - |
Net asset value, end of period | $ 7.85 | $ 6.38 | $ 8.03 | $ 9.05 |
Total ReturnB,C,D | 23.04% | (20.55)% | (11.18)% | (9.50)% |
Ratios to Average Net AssetsG | | | | |
Expenses before expense reductions | 2.77% | 2.58% | 2.79% | 32.69%A |
Expenses net of voluntary waivers, if any | 2.25% | 2.36% | 2.50% | 2.50%A |
Expenses net of all reductions | 2.18% | 2.16% | 2.46% | 2.50%A |
Net investment income (loss) | (1.61)% | (1.74)% | (.89)% | .24%A |
Supplemental Data | | | | |
Net assets, end of period (000 omitted) | $ 8,427 | $ 6,636 | $ 8,532 | $ 1,224 |
Portfolio turnover rate | 158% | 473% | 481% | 139%A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F For the period November 13, 2000 (commencement of operations) to November 30, 2000.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Institutional Class
Years ended November 30, | 2003 | 2002 | 2001 | 2000E |
Selected Per-Share Data | | | | |
Net asset value, beginning of period | $ 6.52 | $ 8.11 | $ 9.06 | $ 10.00 |
Income from Investment Operations | | | | |
Net investment income (loss)D | (.04) | (.05) | .01 | .01 |
Net realized and unrealized gain (loss) | 1.62 | (1.54) | (.95) | (.95) |
Total from investment operations | 1.58 | (1.59) | (.94) | (.94) |
Distributions from net realized gain | - | - | (.01) | - |
Net asset value, end of period | $ 8.10 | $ 6.52 | $ 8.11 | $ 9.06 |
Total ReturnB,C | 24.23% | (19.61)% | (10.39)% | (9.40)% |
Ratios to Average Net AssetsF | | | | |
Expenses before expense reductions | 1.61% | 1.43% | 1.73% | 31.51%A |
Expenses net of voluntary waivers, if any | 1.25% | 1.27% | 1.50% | 1.50%A |
Expenses net of all reductions | 1.18% | 1.07% | 1.46% | 1.50%A |
Net investment income (loss) | (.61)% | (.64)% | .11% | 1.24%A |
Supplemental Data | | | | |
Net assets, end of period (000 omitted) | $ 579 | $ 513 | $ 761 | $ 325 |
Portfolio turnover rate | 158% | 473% | 481% | 139%A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E For the period November 13, 2000 (commencement of operations) to November 30, 2000.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Notes to Financial Statements
For the period ended November 30, 2003
1. Significant Accounting Policies.
Fidelity Advisor Aggressive Growth Fund (the fund) is a fund of Fidelity Securities 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 Class A, Class T, Class B, Class C, and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the fund, and certain fund-level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the fund:
Security Valuation. Net asset value per share (NAV calculation) is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Equity securities for which market quotations are available are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) on the primary market or exchange on which they trade. If an event that is expected to materially affect the value of a security occurs after the close of an exchange or market on which that security trades, but prior to the NAV calculation, then that security will be fair valued taking the event into account. Securities (including restricted securities) for which market quotations are not readily available are valued at their fair value as determined in good faith under consistently applied procedures under the general supervision of the Board of Trustees. Price movements in futures contracts and ADRs, market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading may be reviewed in the course of making a good faith determination of a security's fair value. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued on the basis of amortized cost. Investments in open-end investment companies are valued at their net asset value each business day.
Annual Report
Notes to Financial Statements - continued
1. Significant Accounting Policies - continued
Foreign Currency. The fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income is accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities, which is accrued using the interest method. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among the funds in the trust.
Income Tax Information and Distributions to Shareholders. Each year the fund intends to qualify as a regulated investment company by distributing all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required in the accompanying financial statements. Foreign taxes are provided for based on each fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. Income dividends and capital gain distributions are declared separately for each class. Distributions are recorded on the ex-dividend date.
Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Capital accounts within the financial statements are adjusted for permanent and temporary book and tax differences. These adjustments have no impact on net assets or the results of operations. Temporary differences will reverse in a subsequent period. These
Annual Report
1. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
differences are primarily due to foreign currency transactions, future transactions, net operating losses, capital loss carryforwards, and losses deferred due to wash sales.
The tax-basis components of distributable earnings and the federal tax cost as of period end were as follows:
Unrealized appreciation | $ 5,404,018 | | |
Unrealized depreciation | (884,871) | |
Net unrealized appreciation (depreciation) | 4,519,147 | |
Capital loss carryforward | (14,669,313) | |
Cost for federal income tax purposes | $ 29,625,605 | |
2. Operating Policies.
Repurchase Agreements. Fidelity Management & Research Company (FMR) has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts. These accounts are then invested in repurchase agreements that are collateralized by U.S. Treasury or Government obligations. The fund may also invest directly with institutions, in repurchase agreements that are collateralized by commercial paper obligations and corporate obligations. Collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. Collateral is marked-to-market daily and maintained at a value at least equal to the principal amount of the repurchase agreement (including accrued interest).
Futures Contracts. The fund may use futures contracts to manage its exposure to the stock market. Buying futures tends to increase the fund's exposure to the underlying instrument, while selling futures tends to decrease the fund's exposure to the underlying instrument or hedge other fund investments. Losses may arise from changes in the value of the underlying instruments or if the counter-parties do not perform under the contracts' terms. Gains (losses) are realized upon the expiration or closing of the futures contracts. Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded.
3. Purchases and Sales of Investments.
Information regarding purchases and sales of securities is included under the caption "Other Information" at the end of the fund's Schedule of Investments.
Annual Report
Notes to Financial Statements - continued
4. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the fund with investment management related services for which the fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .35% of the fund's average net assets and a group fee rate that averaged .28% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annual management fee rate was .63% of the fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. Class A and Class T Plans also authorize the use of brokerage commissions to pay distribution expenses. This practice has been discontinued and no commissions incurred after June 30, 2003 have been used to pay distribution expenses. In addition, FDC may pay financial intermediaries for selling shares of the fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, the total amounts paid to and retained by FDC and the amount of distribution expenses paid with brokerage commissions were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC | Paid with
Commissions |
Class A | .04% | .25% | $ 8,706 | $ 68 | $ 1,089 |
Class T | .29% | .25% | 56,728 | 220 | 3,988 |
Class B | .75% | .25% | 68,405 | 51,350 | - |
Class C | .75% | .25% | 71,439 | 9,247 | - |
| | | $ 205,278 | $ 60,885 | $ 5,077 |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares of the fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, and .25% for certain purchases of Class A and Class T shares.
Annual Report
4. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
| | Retained
by FDC |
Class A | | $ 9,357 |
Class T | | 7,563 |
Class B* | | 24,751 |
Class C* | | 1,116 |
| | $ 42,787 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent (collectively referred to as the transfer agent) for each class of the fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the fund. FIIOC pays for typesetting, printing and mailing of all shareholder reports, except proxy statements. For the period, the following amounts were paid to FIIOC:
| Amount | % of Average
Net Assets |
Class A | $ 21,169 | .69 |
Class T | 69,208 | .66 |
Class B | 44,268 | .65 |
Class C | 34,846 | .49 |
Institutional Class | 1,617 | .33 |
| $ 171,108 | |
Accounting Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the fund's accounting records. The fee is based on the level of average net assets for the month plus out-of-pocket expenses.
Central Funds. The fund may invest in affiliated Central Funds managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR. The Central Funds are open-end investment companies available only to investment companies and other accounts managed by FMR and its affiliates. The Central Funds seek preservation of capital and current income and do not pay a management fee. Income distributions earned by the fund are recorded as income in the accompanying financial statements and totaled $34,653 for the period.
Annual Report
Notes to Financial Statements - continued
4. Fees and Other Transactions with Affiliates - continued
Brokerage Commissions. The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms are shown under the caption "Other Information" at the end of the fund's Schedule of Investments.
5. 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. During the period, there were no borrowings on this line of credit.
6. Expense Reductions.
FMR agreed to reimburse the classes of the fund to the extent operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, are excluded from this reimbursement.
| Expense
Limitations | Reimbursement
from adviser |
Class A | 1.50% | $ 21,964 |
Class T | 1.75% | 72,327 |
Class B | 2.25% | 46,452 |
Class C | 2.25% | 37,002 |
Institutional Class | 1.25% | 1,739 |
| | $ 179,484 |
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 may include payments of expenses on behalf of the fund to support distribution of fund shares for Class A and Class T ("Distribution Expense Reduction") and to pay other fund expenses, such as transfer agent fees ("Other Expense Reduction") collectively referred to as "Brokerage Service Arrangements" in the accompanying table. Brokerage service arrangements generally benefits all shareholders of each class by reducing fund expenses. Each of Class A and Class T shareholders' Other Expense Reduction benefit is reduced by the amount
Annual Report
6. Expense Reductions - continued
of any Distribution Expense Reduction. All of the applicable expense reductions are noted in the table below.
| Brokerage Service Arrangements |
| Distribution
expense
reduction | Other
expense
reduction |
Fund Level | $ - | $ 14,261 |
Class A | 1,089 | - |
Class T | 3,988 | - |
| $ 5,077 | $ 14,261 |
7. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
Years ended
November 30, | 2003 | 2002 | 2003 | 2002 |
Class A | | | | |
Shares sold | 244,577 | 165,182 | $ 1,722,170 | $ 1,240,636 |
Shares redeemed | (128,450) | (171,008) | (880,316) | (1,293,424) |
Net increase (decrease) | 116,127 | (5,826) | $ 841,854 | $ (52,788) |
Class T | | | | |
Shares sold | 442,489 | 903,899 | $ 3,023,259 | $ 7,000,780 |
Shares redeemed | (509,774) | (1,027,358) | (3,391,934) | (7,601,666) |
Net increase (decrease) | (67,285) | (123,459) | $ (368,675) | $ (600,886) |
Class B | | | | |
Shares sold | 340,312 | 347,968 | $ 2,312,985 | $ 2,574,720 |
Shares redeemed | (249,139) | (366,934) | (1,653,902) | (2,702,296) |
Net increase (decrease) | 91,173 | (18,966) | $ 659,083 | $ (127,576) |
Class C | | | | |
Shares sold | 327,135 | 378,395 | $ 2,159,687 | $ 2,890,698 |
Shares redeemed | (293,843) | (400,792) | (1,926,688) | (2,983,429) |
Net increase (decrease) | 33,292 | (22,397) | $ 232,999 | $ (92,731) |
Institutional Class | | | | |
Shares sold | 11,899 | 27,286 | $ 86,133 | $ 220,096 |
Shares redeemed | (19,157) | (42,260) | (127,181) | (309,451) |
Net increase (decrease) | (7,258) | (14,974) | $ (41,048) | $ (89,355) |
Annual Report
Report of Independent Auditors
To the Trustees of Fidelity Securities Fund and the Shareholders of Fidelity
Advisor Aggressive Growth 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 Advisor Aggressive Growth Fund (a fund of Fidelity Securities Fund) at November 30, 2003 and the results of its operations, the changes in its net assets and the financial highlights for the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity Advisor Aggressive Growth 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 auditing standards generally accepted in the United States of America which 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 November 30, 2003 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
January 15, 2004
Annual Report
Trustees and Officers
The Trustees, Members 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 William O. McCoy, each of the Trustees oversees 291 funds advised by FMR or an affiliate. Mr. McCoy oversees 293 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. In any event, each non-interested Trustee shall retire not later than the last day of the calendar year in which his or her 72nd birthday occurs. The executive officers and Advisory Board Members 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 1-877-208-0098.
Interested Trustees*:
Correspondence intended for each Trustee who is an "interested person" (as defined in the 1940 Act) may be sent to 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation |
Edward C. Johnson 3d (73)** |
| Year of Election or Appointment: 1984 Trustee of Fidelity Securities Fund. Mr. Johnson is Chairman of the Board of Trustees. Mr. Johnson serves as Chief Executive Officer, Chairman, and a Director of FMR Corp.; a Director and Chairman of the Board and of the Executive Committee of FMR; Chairman and a Director of Fidelity Management & Research (Far East) Inc.; Chairman (1998) and a Director of Fidelity Investments Money Management, Inc.; and Chairman (2001) and a Director (2000) of FMR Co., Inc. |
Abigail P. Johnson (41)** |
| Year of Election or Appointment:2001 Senior Vice President of Advisor Aggressive Growth (2001). Ms. Johnson also serves as Senior Vice President of other Fidelity funds (2001). She is President and a Director of FMR (2001), Fidelity Investments Money Management, Inc. (2001), FMR Co., Inc. (2001), and a Director of FMR Corp. Previously, Ms. Johnson managed a number of Fidelity funds. |
Laura B. Cronin (49) |
| Year of Election or Appointment: 2003 Ms. Cronin is an Executive Vice President (2002) and Chief Financial Officer (2002) of FMR Corp. and is a member of the Fidelity Management Committee (2003). Previously, Ms. Cronin served as Vice President of Finance of FMR (1997-1999), and Chief Financial Officer of FMR (1999-2001), Fidelity Personal Investments (2001), and Fidelity Brokerage Company (2001-2002). |
Robert L. Reynolds (51) |
| Year of Election or Appointment: 2003 Mr. Reynolds is a Director (2003) and Chief Operating Officer (2002) of FMR Corp. and is the head of the Fidelity Management Committee (2003). He also serves on the Board at Fidelity Investments Canada, Ltd. (2000). Previously, Mr. Reynolds served as President of Fidelity Investments Institutional Retirement Group (1996-2000). |
* 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.
** Edward C. Johnson 3d, Trustee, is Abigail P. Johnson's father.
Annual Report
Non-Interested Trustees:
Correspondence intended for each non-interested 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 |
J. Michael Cook (61) |
| Year of Election or Appointment: 2001 Prior to Mr. Cook's retirement in May 1999, he served as Chairman and Chief Executive Officer of Deloitte & Touche LLP (accounting/consulting), Chairman of the Deloitte & Touche Foundation, and a member of the Board of Deloitte Touche Tohmatsu. He currently serves as a Director of Comcast (telecommunications, 2002), International Flavors & Fragrances, Inc. (2000), Rockwell Automation (2000) and The Dow Chemical Company (2000). He is a Member of the Diversity Advisory Council of Marakon (2003) and the Advisory Board of the Directorship Search Group, Chairman Emeritus of the Board of Catalyst (a leading organization for the advancement of women in business), and is Chairman of the Accountability Advisory Council to the Comptroller General of the United States. He also serves as a Member of the Advisory Board of the Graduate School of Business of the University of Florida, his alma mater. |
Ralph F. Cox (71) |
| Year of Election or Appointment: 1991 Mr. Cox is President of RABAR Enterprises (management consulting for the petroleum industry). Prior to February 1994, he was President of Greenhill Petroleum Corporation (petroleum exploration and production). Until March 1990, Mr. Cox was President and Chief Operating Officer of Union Pacific Resources Company (exploration and production). He is a Director of CH2M Hill Companies (engineering), and Abraxas Petroleum (petroleum exploration and production, 1999). In addition, he is a member of advisory boards of Texas A&M University and the University of Texas at Austin. |
Robert M. Gates (60) |
| Year of Election or Appointment: 1997 Dr. Gates is President of Texas A&M University (2002). He was Director of the Central Intelligence Agency (CIA) from 1991 to 1993. From 1989 to 1991, Dr. Gates served as Assistant to the President of the United States and Deputy National Security Advisor. Dr. Gates is a Director of NACCO Industries, Inc. (mining and manufacturing), and Parker Drilling Co., Inc. (drilling and rental tools for the energy industry, 2001). He also serves as a member of the Advisory Board of VoteHere.net (secure internet voting, 2001). Previously, Dr. Gates served as a Director of LucasVarity PLC (automotive components and diesel engines), a Director of TRW Inc. (automotive, space, defense, and information technology), and Dean of the George Bush School of Government and Public Service at Texas A&M University (1999-2001). Dr. Gates also is a Trustee of the Forum for International Policy. |
George H. Heilmeier (67) |
| Year of Election or Appointment: 2004 Dr. Heilmeier is Chairman Emeritus of Telcordia Technologies (communication software and systems), where prior to his retirement, he served as company Chairman and Chief Executive Officer. He currently serves on the Boards of Directors of The Mitre Corporation (systems engineering and information technology support for the government), INET Technologies Inc. (telecommunications network surveillance, 2001) and Teletech Holdings (customer management services, 1998). He is Chairman of the General Motors Technology Advisory Committee and a Life Fellow of the IEEE (2000). Dr. Heilmeier is a member of the Defense Science Board and the National Security Agency Advisory Board. He is also a member of the National Academy of Engineering, the American Academy of Arts and Sciences and The Board of Overseers of the School of Engineering and Applied Science of the University of Pennsylvania. Previously, Dr. Heilmeier served as a Director of TRW Inc. (automotive, space, defense, and information technology, 1992-2002) and Compaq (1994-2002). |
Donald J. Kirk (71) |
| Year of Election or Appointment: 1987 Mr. Kirk is a Governor of the American Stock Exchange (2001), a Trustee and former Chairman of the Board of Trustees of the Greenwich Hospital Association, a Director of the Yale-New Haven Health Services Corp. (1998), and a Director Emeritus and former Chairman of the Board of Directors of National Arts Strategies Inc. Mr. Kirk was an Executive-in-Residence (1995-2000) and a Professor (1987-1995) at Columbia University Graduate School of Business. Prior to 1987, he was Chairman of the Financial Accounting Standards Board. Previously, Mr. Kirk served as a Governor of the National Association of Securities Dealers, Inc. (1996-2002), a member and Vice Chairman of the Public Oversight Board of the American Institute of Certified Public Accountants' SEC Practice Section (1995-2002), a Director of General Re Corporation (reinsurance, 1987-1998) and as a Director of Valuation Research Corp. (appraisals and valuations). |
Marie L. Knowles (57) |
| Year of Election or Appointment: 2001 Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. She currently serves as a Director of Phelps Dodge Corporation (copper mining and manufacturing), URS Corporation (multidisciplinary engineering, 1999), and McKesson Corporation (healthcare service, 2002). Ms. Knowles is a Trustee of the Brookings Institution and the Catalina Island Conservancy and also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California. |
Ned C. Lautenbach (59) |
| Year of Election or Appointment: 2000 Mr. Lautenbach has been a partner of Clayton, Dubilier & Rice, Inc. (private equity investment firm) since September 1998. Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. He was most recently Senior Vice President and Group Executive of Worldwide Sales and Services. From 1993 to 1995, he was Chairman of IBM World Trade Corporation, and from 1994 to 1998 was a member of IBM's Corporate Executive Committee. Mr. Lautenbach serves as Chairman and as a Director (1998) of Acterna Corporation (communications test equipment). He is also Co-Chairman of Covansys, Inc. (global provider of business and technology solutions, 2000). In addition, he is a Director of Eaton Corporation (diversified industrial) and the Philharmonic Center for the Arts in Naples, Florida (1999). He also is a member of the Council on Foreign Relations. |
Marvin L. Mann (70) |
| Year of Election or Appointment: 1993 Mr. Mann is Chairman of the non-interested Trustees (2001). He is Chairman Emeritus of Lexmark International, Inc. (computer peripherals) where he served as CEO until April 1998 and retired as Chairman May 1999, and remains a member of the Board. Prior to 1991, he held the positions of Vice President of International Business Machines Corporation (IBM) and President and General Manager of various IBM divisions and subsidiaries. Mr. Mann is a Board member of Imation Corp. (imaging and information storage) and Acterna Corporation (communications test equipment, 1999). He is also a member of the Director Services Committee of the Investment Company Institute. In addition, Mr. Mann is a member of the President's Cabinet at the University of Alabama and the Board of Visitors of the Culverhouse College of Commerce and Business Administration at the University of Alabama. |
William O. McCoy (70) |
| Year of Election or Appointment: 1997 Prior to his retirement in December 1994, Mr. McCoy was Vice Chairman of the Board of BellSouth Corporation (telecommunications) and President of BellSouth Enterprises. He is currently a Director of Liberty Corporation (holding company), Duke Realty Corporation (real estate), Progress Energy, Inc. (electric utility), and Acterna Corporation (communications test equipment, 1999). He is also a partner of Franklin Street Partners (private investment management firm) and a member of the Research Triangle Foundation Board. In addition, Mr. McCoy served as the Interim Chancellor (1999-2000) and a member of the Board of Visitors (1994-1998) for the University of North Carolina at Chapel Hill and currently serves on the Board of Directors of the University of North Carolina Health Care System and the Board of Visitors of the Kenan-Flagler Business School (University of North Carolina at Chapel Hill). He also served as Vice President of Finance for the University of North Carolina (16-school system, 1995-1998). |
William S. Stavropoulos (64) |
| Year of Election or Appointment: 2002 Mr. Stavropoulos is Chairman of the Board, President and CEO (2002), and Chairman of the Executive Committee (2000) and a Director of The Dow Chemical Company. Since joining The Dow Chemical Company in 1967, Mr. Stavropoulos served in numerous senior management positions, including President (1993-2000) and Chief Executive Officer (1995-2000). Currently, he is a Director of NCR Corporation (data warehousing and technology solutions), BellSouth Corporation (telecommunications), Chemical Financial Corporation, and Maersk Inc. (industrial conglomerate, 2002). He also serves as a member of the Board of Trustees of the American Enterprise Institute for Public Policy Research. In addition, Mr. Stavropoulos is a member of The Business Council, J.P. Morgan International Council, World Business Council for Sustainable Development, and the University of Notre Dame Advisory Council for the College of Science. |
Annual Report
Trustees and Officers - continued
Advisory Board Members and Executive Officers:
Correspondence intended for Ms. Small may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for each executive officer and Mr. Lynch may be sent to 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation |
Peter S. Lynch (60) |
| Year of Election or Appointment: 2003 Member of the Advisory Board of Securities Fund. Vice Chairman and a Director of FMR, and Vice Chairman (2001) and a Director (2000) of FMR Co., Inc. Previously, Mr. Lynch served as a Trustee of the Fidelity funds (1990-2003). Prior to May 31, 1990, he was a Director of FMR and Executive Vice President of FMR (a position he held until March 31, 1991), Vice President of Fidelity® Magellan® Fund and FMR Growth Group Leader, and Managing Director of FMR Corp. Mr. Lynch was also Vice President of Fidelity Investments Corporate Services. In addition, he serves as a Trustee of Boston College, Massachusetts Eye & Ear Infirmary, Historic Deerfield, John F. Kennedy Library, and the Museum of Fine Arts of Boston. |
Cornelia M. Small (59) |
| Year of Election or Appointment: 2004 Member of the Advisory Board of Fidelity Securities Fund. Ms. Small is a member (2000) and Chairperson (2002) of the Investment Committee, and a member (2002) of the Board of Trustees of Smith College. Previously, she served as Chief Investment Officer (1999-2000), Director of Global Equity Investments (1996-1999), and a member of the Board of Directors (1998-1999) of Scudder Kemper Investments. In addition, Ms. Small served as Co-Chair (2000-2003) of the Annual Fund for the Fletcher School of Law and Diplomacy. |
John B. McDowell (45) |
| Year of Election or Appointment: 2002 Vice President of Advisor Aggressive Growth. Mr. McDowell also serves as Vice President of certain Equity Funds (2002). He is Senior Vice President of FMR (1999), FMR Co., Inc. (2001), and Fidelity Management Trust Company (FMTC). Since joining Fidelity Investments in 1985, Mr. McDowell has worked as a research analyst and manager. |
|
Rajiv Kaul (32) |
| Year of Election or Appointment: 2003 Vice President of Advisor Aggressive Growth. Mr. Kaul is also Vice President of other funds advised by FMR. Prior to assuming his current responsibilities, Mr. Kaul managed a variety of Fidelity funds. |
Eric D. Roiter (55) |
| Year of Election or Appointment: 2000 Secretary of Advisor Aggressive Growth. He also serves as Secretary of other Fidelity funds (1998); Vice President, General Counsel, and Clerk of FMR Co., Inc. (2001) and FMR (1998); Vice President and Clerk of FDC (1998); Assistant Clerk of Fidelity Management & Research (U.K.) Inc. (2001) and Fidelity Management & Research (Far East) Inc. (2001); and Assistant Secretary of Fidelity Investments Money Management Inc. (2001). Prior to joining Fidelity, Mr. Roiter was with the law firm of Debevoise & Plimpton, as an associate (1981-1984) and as a partner (1985-1997), and served as an Assistant General Counsel of the U.S. Securities and Exchange Commission (1979-1981). Mr. Roiter is an Adjunct Member, Faculty of Law, at Boston College Law School (2003). |
Stuart Fross (44) |
| Year of Election or Appointment: 2003 Assistant Secretary of Advisor Aggressive Growth. Mr. Fross also serves as Assistant Secretary of other Fidelity funds (2003) and is an employee of FMR. |
Maria F. Dwyer (44) |
| Year of Election or Appointment: 2002 President and Treasurer of Advisor Aggressive Growth. Ms. Dwyer also serves as President and Treasurer of other Fidelity funds (2002) and is a Vice President (1999) and an employee (1996) of FMR. |
Timothy F. Hayes (52) |
| Year of Election or Appointment: 2002 Chief Financial Officer of Advisor Aggressive Growth. Mr. Hayes also serves as Chief Financial Officer of other Fidelity funds (2002). Recently he was appointed President of Fidelity Service Company (2003) where he also serves as a Director. Mr. Hayes also serves as President of Fidelity Investments Operations Group (FIOG, 2002), which includes Fidelity Pricing and Cash Management Services Group (FPCMS), where he was appointed President in 1998. Previously, Mr. Hayes served as Chief Financial Officer of Fidelity Investments Corporate Systems and Service Group (1998) and Fidelity Systems Company (1997-1998). |
John R. Hebble (45) |
| Year of Election or Appointment: 2003 Deputy Treasurer of Advisor Aggressive Growth. Mr. Hebble also serves as Deputy Treasurer of other Fidelity funds (2003), and is an employee of FMR. Before joining Fidelity Investments, Mr. Hebble worked at Deutsche Asset Management where he served as Director of Fund Accounting (2002-2003) and Assistant Treasurer of the Scudder Funds (1998-2003). |
John H. Costello (57) |
| Year of Election or Appointment: 2000 Assistant Treasurer of Advisor Aggressive Growth. Mr. Costello also serves as Assistant Treasurer of other Fidelity funds and is an employee of FMR. |
Francis V. Knox, Jr. (56) |
| Year of Election or Appointment: 2002 Assistant Treasurer of Advisor Aggressive Growth. Mr. Knox also serves as Assistant Treasurer of other Fidelity funds (2002), and is a Vice President and an employee of FMR. Previously, Mr. Knox served as Vice President of Investment & Advisor Compliance (1990-2001), and Compliance Officer of Fidelity Management & Research (U.K.) Inc. (1992-2002), Fidelity Management & Research (Far East) Inc. (1991-2002), and FMR Corp. (1995-2002). |
Mark Osterheld (48) |
| Year of Election or Appointment: 2002 Assistant Treasurer of Advisor Aggressive Growth. Mr. Osterheld also serves as Assistant Treasurer of other Fidelity funds (2002) and is an employee of FMR. |
Thomas J. Simpson (45) |
| Year of Election or Appointment: 2000 Assistant Treasurer of Advisor Aggressive Growth. Mr. Simpson is Assistant Treasurer of other Fidelity funds (2000) and an employee of FMR (1996). Prior to joining FMR, Mr. Simpson was Vice President and Fund Controller of Liberty Investment Services (1987-1995). |
Annual Report
Annual Report
Annual Report
Annual Report
Annual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Far East) Inc.
Fidelity International Investment Advisors
Fidelity Investments Japan Limited
Fidelity International Investment Advisors (U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Shareholder
Servicing Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Custodian
State Street Bank and Trust Company
Quincy, MA
Annual Report
Fidelity Advisor Aggressive Growth Fund |
Fidelity Advisor Asset Allocation Fund |
Fidelity Advisor Balanced Fund |
Fidelity Advisor Biotechnology Fund |
Fidelity Advisor California Municipal Income Fund |
Fidelity Advisor Consumer Industries Fund |
Fidelity Advisor Cyclical Industries Fund |
Fidelity Advisor Developing Communications Fund |
Fidelity Advisor Diversified International Fund |
Fidelity Advisor Dividend Growth Fund |
Fidelity Advisor Dynamic Capital Appreciation Fund |
Fidelity Advisor Electronics Fund |
Fidelity Advisor Emerging Asia Fund |
Fidelity Advisor Emerging Markets Income Fund |
Fidelity Advisor Equity Growth Fund |
Fidelity Advisor Equity Income Fund |
Fidelity Advisor Equity Value Fund |
Fidelity Advisor Europe Capital Appreciation Fund |
Fidelity Advisor Fifty Fund |
Fidelity Advisor Financial Services Fund |
Fidelity Advisor Floating Rate High Income Fund |
Fidelity Advisor Freedom Income FundSM |
Fidelity Advisor Freedom 2010 FundSM |
Fidelity Advisor Freedom 2020 FundSM |
Fidelity Advisor Freedom 2030 FundSM |
Fidelity Advisor Freedom 2040 FundSM |
Fidelity Advisor Global Equity Fund |
Fidelity Advisor Government Investment Fund |
Fidelity Advisor Growth & Income Fund |
Fidelity Advisor Growth Opportunities |
Fidelity Advisor Health Care Fund |
Fidelity Advisor High Income Advantage Fund |
Fidelity Advisor High Income Fund |
Fidelity Advisor Inflation-Protected Bond Fund |
Fidelity Advisor Intermediate Bond Fund |
Fidelity Advisor International Capital Appreciation Fund |
Fidelity Advisor International Small Cap Fund |
Fidelity Advisor Investment Grade Bond Fund |
Fidelity Advisor Japan Fund |
Fidelity Advisor Korea Fund |
Fidelity Advisor Large Cap Fund |
Fidelity Advisor Latin America Fund |
Fidelity Advisor Leveraged Company Stock Fund |
Fidelity Advisor Mid Cap Fund |
Fidelity Advisor Mortgage Securities Fund |
Fidelity Advisor Municipal Income Fund |
Fidelity Advisor Natural Resources Fund |
Fidelity Advisor New Insights Fund |
Fidelity Advisor New York
Municipal Income Fund |
Fidelity Advisor Overseas Fund |
Fidelity Advisor Real Estate Fund |
Fidelity Advisor Short Fixed-Income Fund |
Fidelity Advisor Short Intermediate Municipal Income Fund |
Fidelity Advisor Small Cap Fund |
Fidelity Advisor Strategic Growth Fund |
Fidelity Advisor Strategic Income Fund |
Fidelity Advisor Tax Managed
Stock Fund |
Fidelity Advisor Technology Fund |
Fidelity Advisor Telecommunications & Utilities Growth Fund |
Fidelity Advisor Value Leaders Fund |
Fidelity Advisor Value Strategies Fund |
Prime Fund |
Tax-Exempt Fund |
Treasury Fund |
AAG-UANN-0104
1.786669.100
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
(Fidelity Investment logo)(registered trademark)
Fidelity® Advisor
Aggressive Growth
Fund - Institutional Class
Annual Report
November 30, 2003
(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. |
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. |
Auditors' Opinion | <Click Here> | |
Trustees and Officers | <Click Here> | |
For a free copy of the fund's proxy voting guidelines call 1-877-208-0098 or visit the Securities and Exchange Commission (SEC)'s web site at www.sec.gov.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR Corp. or an affiliated company.
(Recycle graphic) This report is printed on recycled paper using soy-based inks.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
Mutual fund shares are not deposits or obligations of, or guaranteed by, any depository institution. Shares are not insured by the FDIC, Federal Reserve Board or any other agency, and are subject to investment risks, including possible loss of principal amount invested.
Neither the fund nor Fidelity Distributors Corporation is a bank.
For more information on any Fidelity Advisor fund, including charges and expenses, contact your investment professional for a free prospectus. Read it carefully before you invest or send money.
Annual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
Many of you have read or heard news stories recently that were critical of mutual funds and made allegations that the mutual fund industry has been less than forthright. I find these reports unsettling and not necessarily an accurate picture of the overall industry, and I would like you to know where we at Fidelity stand.
With specific regard to allegations that certain mutual fund companies were violating the Securities and Exchange Commission's forward pricing rules or were involved in so-called "market timing" activities, I want to say two things:
First, Fidelity does not have agreements that permit customers who buy fund shares after 4 p.m. to obtain the 4 p.m. price. This is not to say that someone could not deceive the company through fraudulent acts. But I underscore that we have no so-called "agreements" which would permit this illegal practice.
Second, Fidelity has been on record for years opposing predatory short-term trading which adversely affects other shareholders in a mutual fund. In fact, in the 1980s, we began charging a fee - which is returned to the fund and, therefore, to investors - to discourage this activity. What's more, several years ago we took the industry lead in developing a Fair Value Pricing Policy to prevent market timing on foreign securities in our funds. It is reasonable to assume that another structure can be developed that would alter the system to make it much more difficult for predatory traders to operate. This, however, will only be achieved through close cooperation among regulators, legislators and the industry.
Certainly no industry is perfect, and there have been instances of unethical and illegal activity from time to time within the mutual fund industry. When this occurs, confessed or convicted offenders should be dealt with appropriately. Clearly, every system can be improved. We applaud well thought out improvements by regulators, legislators and industry representatives that achieve the common goal of building and protecting the value of investors' holdings. But we remain concerned about the risk of over-regulation and the quick application of simplistic solutions to intricate problems.
For more than 57 years, Fidelity Investments has worked very hard to improve its products and service to justify your trust. When our family founded this company in 1946, we had only a few hundred customers. Many of them were family and friends. Today, we serve more than 18 million customers including individual investors and participants in retirement plans across America.
Let me close by saying that we do not take your trust in us for granted, and we realize that we must always work to improve all aspects of our service to you. In turn, we urge you to continue your active participation with your financial matters, so that your interests can be well served.
Best regards,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Annual Report
Performance: The Bottom Line
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) and assuming a constant rate of performance each year. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. 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. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended November 30, 2003 | Past 1
year | Life of
fundA |
Institutional Class | 24.23% | -6.65% |
A From November 13, 2000.
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity® Advisor Aggressive Growth Fund - Institutional Class on November 13, 2000, when the fund started. The chart shows what the value of your investment would have been, and also shows how the Russell Midcap® Growth Index did over the same period.
Annual Report
Management's Discussion of Fund Performance
Comments from Rajiv Kaul, Portfolio Manager of Fidelity® Advisor Aggressive Growth Fund
A healthier economy translated into improved equity market performance for the year ending November 30, 2003. Early signals of an economic recovery were seen when growth in gross domestic product (GDP) surprised on the upside in the first and second quarters of 2003. The Federal Reserve Board added further fuel in June by dropping interest rates to a 45-year low. Federal tax cuts and credits, as well as a boom in mortgage refinancing, put even more discretionary income in consumers' pockets. In the third quarter, GDP growth, propelled by robust consumer and business spending, grew 8.2%, its highest level since 1984. Consumer spending had its strongest third quarter since 1997, while corporate profits had their best showing since 1992. As a result of 2003's economic momentum, stocks enjoyed their best showing since 1999 and were poised to end their three-year losing streak. For the year ending November 30, 2003, the Standard & Poor's 500SM Index gained 15.09%, the Dow Jones Industrial AverageSM returned 12.47% and the NASDAQ Composite® Index advanced 33.23%.
For the 12 months ending November 30, 2003, the fund's Institutional Class shares returned 24.23%, trailing the 32.64% return of the Russell Midcap® Growth Index and the 26.65% return of the LipperSM Mid-Cap Funds Average. My defensive bias was counterproductive, as I had trouble finding stocks that met my investment criteria. Moreover, stock selection in retailing, pharmaceuticals and biotechnology, and health care equipment and services hurt performance. On the positive side, stock selection aided relative performance in software and services, media and telecommunication services. Top contributor Newmont Mining benefited from investors' positive expectations for the price of gold, which were fueled in part by a weak U.S. dollar. Intel also helped, boosted by the rapid adoption of the company's new Centrino chip. Detractors included Amgen, which was undercut by concerns about possible cutbacks in Medicare reimbursement for Epogen, its medication for kidney dialysis patients. Also hurting performance was oil services provider Weatherford International, a victim of meager spending on new exploration projects.
The views expressed in this statement reflect those of the portfolio manager only through the end of the period of the report as stated on the cover 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
Investment Changes
Top Ten Stocks as of November 30, 2003 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Genentech, Inc. | 2.8 | 1.2 |
Lexmark International, Inc. Class A | 2.0 | 0.6 |
Biogen Idec, Inc. | 1.7 | 1.2 |
Biomet, Inc. | 1.6 | 1.4 |
Caremark Rx, Inc. | 1.6 | 0.7 |
Cisco Systems, Inc. | 1.3 | 0.0 |
Microchip Technology, Inc. | 1.2 | 0.3 |
Nextel Communications, Inc. Class A | 1.2 | 1.0 |
Siebel Systems, Inc. | 1.2 | 0.2 |
Starbucks Corp. | 1.1 | 0.8 |
| 15.7 | |
Top Five Market Sectors as of November 30, 2003 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Information Technology | 28.9 | 16.1 |
Health Care | 24.5 | 22.5 |
Consumer Discretionary | 19.7 | 17.1 |
Industrials | 8.3 | 8.3 |
Consumer Staples | 4.0 | 4.9 |
Asset Allocation (% of fund's net assets) |
As of November 30, 2003* | As of May 31, 2003** |
| Stocks and Investment Companies 96.5% | | | Stocks, Investment Companies and
Equity Futures 85.3% | |
| Short-Term
Investments and
Net Other Assets 3.5% | | | Short-Term
Investments and
Net Other Assets 14.7% | |
* Foreign
investments | 6.0% | | ** Foreign investments | 1.7% | |
Annual Report
Investments November 30, 2003
Showing Percentage of Net Assets
Common Stocks - 96.0% |
| Shares | | Value
(Note 1) |
CONSUMER DISCRETIONARY - 19.7% |
Auto Components - 0.2% |
Gentex Corp. | 1,000 | | $ 42,140 |
Lear Corp. (a) | 600 | | 35,484 |
| | 77,624 |
Automobiles - 0.3% |
Harley-Davidson, Inc. | 2,000 | | 94,340 |
Hotels, Restaurants & Leisure - 5.4% |
Brinker International, Inc. (a) | 5,400 | | 175,824 |
California Pizza Kitchen, Inc. (a) | 2,000 | | 37,000 |
Darden Restaurants, Inc. | 6,140 | | 127,159 |
Harrah's Entertainment, Inc. | 1,560 | | 74,677 |
Hilton Hotels Corp. | 5,100 | | 83,436 |
International Game Technology | 7,490 | | 259,828 |
Mandalay Resort Group | 600 | | 25,770 |
Marriott International, Inc. Class A | 1,600 | | 73,328 |
McDonald's Corp. | 4,800 | | 123,024 |
Outback Steakhouse, Inc. | 1,400 | | 62,650 |
Starbucks Corp. (a) | 12,000 | | 384,840 |
Station Casinos, Inc. | 1,600 | | 49,888 |
Sunterra Corp. (a) | 1,500 | | 15,000 |
The Cheesecake Factory, Inc. (a) | 2,500 | | 108,400 |
Wendy's International, Inc. | 900 | | 34,947 |
Yum! Brands, Inc. (a) | 5,800 | | 200,042 |
| | 1,835,813 |
Household Durables - 1.0% |
Black & Decker Corp. | 2,190 | | 101,594 |
Harman International Industries, Inc. | 710 | | 96,752 |
Maytag Corp. | 2,410 | | 63,720 |
Mohawk Industries, Inc. (a) | 910 | | 65,593 |
Ryland Group, Inc. | 300 | | 27,645 |
| | 355,304 |
Internet & Catalog Retail - 0.1% |
Overstock.com, Inc. (a) | 1,000 | | 15,810 |
Leisure Equipment & Products - 0.4% |
Brunswick Corp. | 600 | | 18,030 |
Mattel, Inc. | 3,660 | | 74,078 |
Polaris Industries, Inc. | 400 | | 34,468 |
| | 126,576 |
Common Stocks - continued |
| Shares | | Value
(Note 1) |
CONSUMER DISCRETIONARY - continued |
Media - 2.5% |
Cablevision Systems Corp. - NY Group Class A (a) | 5,600 | | $ 116,032 |
E.W. Scripps Co. Class A | 1,600 | | 147,296 |
Entercom Communications Corp. Class A (a) | 540 | | 24,948 |
Fox Entertainment Group, Inc. Class A (a) | 5,270 | | 150,459 |
Gannett Co., Inc. | 910 | | 78,806 |
Getty Images, Inc. (a) | 1,240 | | 53,816 |
Lamar Advertising Co. Class A (a) | 810 | | 28,512 |
Pixar (a) | 1,200 | | 84,132 |
Radio One, Inc. Class D (non-vtg.) (a) | 1,000 | | 17,490 |
The New York Times Co. Class A | 1,600 | | 73,440 |
Viacom, Inc. Class B (non-vtg.) | 500 | | 19,660 |
Westwood One, Inc. (a) | 2,200 | | 66,792 |
| | 861,383 |
Multiline Retail - 1.2% |
99 Cents Only Stores (a) | 500 | | 13,855 |
Big Lots, Inc. (a) | 3,030 | | 44,420 |
Dollar General Corp. | 1,900 | | 40,128 |
Dollar Tree Stores, Inc. (a) | 3,790 | | 120,333 |
Family Dollar Stores, Inc. | 3,150 | | 121,527 |
Fred's, Inc. Class A | 1,070 | | 35,685 |
Tuesday Morning Corp. (a) | 1,500 | | 47,940 |
| | 423,888 |
Specialty Retail - 7.8% |
Abercrombie & Fitch Co. Class A (a) | 2,000 | | 58,700 |
Aeropostale, Inc. (a) | 500 | | 15,595 |
AutoZone, Inc. (a) | 2,990 | | 286,023 |
Best Buy Co., Inc. | 1,700 | | 105,400 |
Chico's FAS, Inc. (a) | 3,700 | | 142,006 |
Christopher & Banks Corp. | 3,120 | | 84,396 |
Circuit City Stores, Inc. | 1,600 | | 20,832 |
Foot Locker, Inc. | 1,000 | | 22,100 |
Hot Topic, Inc. (a) | 4,155 | | 123,819 |
Jo-Ann Stores, Inc. (a) | 600 | | 12,030 |
Michaels Stores, Inc. | 2,900 | | 137,025 |
PETsMART, Inc. | 5,630 | | 136,021 |
Pier 1 Imports, Inc. | 1,100 | | 28,050 |
RadioShack Corp. | 6,300 | | 196,245 |
Ross Stores, Inc. | 4,080 | | 223,502 |
Select Comfort Corp. (a) | 4,700 | | 126,477 |
Common Stocks - continued |
| Shares | | Value
(Note 1) |
CONSUMER DISCRETIONARY - continued |
Specialty Retail - continued |
Staples, Inc. (a) | 13,830 | | $ 375,485 |
Talbots, Inc. | 450 | | 14,747 |
TJX Companies, Inc. | 12,080 | | 272,887 |
Weight Watchers International, Inc. (a) | 3,800 | | 140,372 |
Williams-Sonoma, Inc. (a) | 3,370 | | 121,455 |
| | 2,643,167 |
Textiles Apparel & Luxury Goods - 0.8% |
Coach, Inc. (a) | 5,600 | | 223,104 |
Kenneth Cole Productions, Inc. Class A | 550 | | 16,445 |
NIKE, Inc. Class B | 500 | | 33,625 |
| | 273,174 |
TOTAL CONSUMER DISCRETIONARY | | 6,707,079 |
CONSUMER STAPLES - 4.0% |
Beverages - 0.6% |
Coca-Cola Enterprises, Inc. | 1,860 | | 38,409 |
Constellation Brands, Inc. Class A (a) | 1,000 | | 34,510 |
Pepsi Bottling Group, Inc. | 3,180 | | 73,394 |
PepsiCo, Inc. | 700 | | 33,684 |
| | 179,997 |
Food & Staples Retailing - 1.4% |
CVS Corp. | 6,100 | | 228,506 |
Performance Food Group Co. (a) | 1,870 | | 73,510 |
Walgreen Co. | 1,000 | | 36,810 |
Whole Foods Market, Inc. | 2,200 | | 144,518 |
| | 483,344 |
Food Products - 1.5% |
Dean Foods Co. (a) | 6,490 | | 212,937 |
Del Monte Foods Co. (a) | 1,600 | | 15,312 |
Dreyer's Grand Ice Cream Holdings, Inc. | 1,100 | | 85,195 |
Hershey Foods Corp. | 1,640 | | 127,428 |
McCormick & Co., Inc. (non-vtg.) | 2,600 | | 74,594 |
Wm. Wrigley Jr. Co. | 70 | | 3,858 |
| | 519,324 |
Common Stocks - continued |
| Shares | | Value
(Note 1) |
CONSUMER STAPLES - continued |
Personal Products - 0.5% |
Alberto-Culver Co. Class B | 2,870 | | $ 175,271 |
TOTAL CONSUMER STAPLES | | 1,357,936 |
ENERGY - 3.5% |
Energy Equipment & Services - 2.0% |
BJ Services Co. (a) | 200 | | 6,378 |
Cooper Cameron Corp. (a) | 2,850 | | 123,719 |
ENSCO International, Inc. | 1,610 | | 40,733 |
Halliburton Co. | 600 | | 14,010 |
Nabors Industries Ltd. (a) | 960 | | 35,635 |
Noble Corp. (a) | 1,570 | | 54,291 |
Patterson-UTI Energy, Inc. (a) | 2,550 | | 73,262 |
Smith International, Inc. (a) | 3,930 | | 147,532 |
Weatherford International Ltd. (a) | 6,060 | | 198,647 |
| | 694,207 |
Oil & Gas - 1.5% |
Apache Corp. | 336 | | 24,125 |
Burlington Resources, Inc. | 2,560 | | 128,512 |
Devon Energy Corp. | 496 | | 24,483 |
EOG Resources, Inc. | 1,100 | | 46,134 |
Murphy Oil Corp. | 1,760 | | 105,477 |
Pioneer Natural Resources Co. (a) | 3,900 | | 110,604 |
Teekay Shipping Corp. | 1,400 | | 70,462 |
| | 509,797 |
TOTAL ENERGY | | 1,204,004 |
FINANCIALS - 3.7% |
Capital Markets - 1.8% |
Ameritrade Holding Corp. (a) | 6,000 | | 75,420 |
Bank of New York Co., Inc. | 1,100 | | 33,748 |
Eaton Vance Corp. (non-vtg.) | 2,300 | | 83,605 |
Federated Investors, Inc. Class B (non-vtg.) | 4,080 | | 117,300 |
Investors Financial Services Corp. | 200 | | 7,376 |
Legg Mason, Inc. | 1,530 | | 121,956 |
Lehman Brothers Holdings, Inc. | 616 | | 44,481 |
SEI Investments Co. | 900 | | 25,245 |
Common Stocks - continued |
| Shares | | Value
(Note 1) |
FINANCIALS - continued |
Capital Markets - continued |
T. Rowe Price Group, Inc. | 1,000 | | $ 42,040 |
Waddell & Reed Financial, Inc. Class A | 2,400 | | 53,016 |
| | 604,187 |
Commercial Banks - 1.0% |
Fifth Third Bancorp | 1,640 | | 95,333 |
North Fork Bancorp, Inc., New York | 1,100 | | 43,923 |
Popular, Inc. | 1,100 | | 51,876 |
Sumitomo Mitsui Financial Group, Inc. | 8 | | 39,085 |
Synovus Financial Corp. | 4,100 | | 117,506 |
| | 347,723 |
Consumer Finance - 0.1% |
SLM Corp. | 700 | | 25,991 |
Insurance - 0.5% |
Berkshire Hathaway, Inc. Class A (a) | 2 | | 167,500 |
Thrifts & Mortgage Finance - 0.3% |
New York Community Bancorp, Inc. | 2,900 | | 112,665 |
TOTAL FINANCIALS | | 1,258,066 |
HEALTH CARE - 24.5% |
Biotechnology - 7.0% |
Affymetrix, Inc. (a) | 500 | | 12,335 |
Alkermes, Inc. (a) | 900 | | 11,772 |
Amylin Pharmaceuticals, Inc. (a) | 2,500 | | 65,425 |
Biogen Idec, Inc. (a) | 15,360 | | 586,445 |
Celgene Corp. (a) | 2,450 | | 112,039 |
Cephalon, Inc. (a) | 1,220 | | 57,328 |
Charles River Laboratories International, Inc. (a) | 1,900 | | 61,655 |
Genelabs Technologies, Inc. (a) | 9,600 | | 18,240 |
Genentech, Inc. (a) | 11,340 | | 955,956 |
Genzyme Corp. - General Division (a) | 400 | | 18,696 |
Harvard Bioscience, Inc. (a) | 2,600 | | 18,720 |
ICOS Corp. (a) | 600 | | 27,120 |
ImClone Systems, Inc. (a) | 2,000 | | 78,600 |
Invitrogen Corp. (a) | 1,000 | | 68,170 |
Medarex, Inc. (a) | 1,800 | | 12,240 |
Neurocrine Biosciences, Inc. (a) | 240 | | 12,679 |
Protein Design Labs, Inc. (a) | 15,500 | | 214,830 |
Common Stocks - continued |
| Shares | | Value
(Note 1) |
HEALTH CARE - continued |
Biotechnology - continued |
QIAGEN NV (a) | 1,500 | | $ 16,575 |
Trimeris, Inc. (a) | 1,400 | | 31,962 |
| | 2,380,787 |
Health Care Equipment & Supplies - 5.5% |
Arthrocare Corp. (a) | 1,700 | | 41,820 |
Beckman Coulter, Inc. | 800 | | 40,920 |
Becton, Dickinson & Co. | 1,200 | | 48,036 |
Biomet, Inc. | 15,580 | | 557,297 |
C.R. Bard, Inc. | 1,700 | | 128,520 |
Cytyc Corp. (a) | 2,000 | | 25,780 |
DENTSPLY International, Inc. | 3,550 | | 159,857 |
Edwards Lifesciences Corp. (a) | 4,700 | | 141,564 |
Fisher Scientific International, Inc. (a) | 3,500 | | 140,945 |
I-Stat Corp. (a) | 600 | | 7,560 |
Inverness Medical Innovations, Inc. (a) | 1,200 | | 28,440 |
Medtronic, Inc. | 5,460 | | 246,792 |
ResMed, Inc. (a) | 400 | | 15,600 |
Steris Corp. (a) | 600 | | 13,878 |
VISX, Inc. (a) | 600 | | 14,688 |
Zimmer Holdings, Inc. (a) | 3,900 | | 257,088 |
| | 1,868,785 |
Health Care Providers & Services - 7.8% |
Accredo Health, Inc. (a) | 2,100 | | 65,310 |
Aetna, Inc. | 1,700 | | 109,446 |
AmerisourceBergen Corp. | 1,640 | | 103,796 |
Andrx Corp. (a) | 1,400 | | 30,744 |
Apria Healthcare Group, Inc. (a) | 1,600 | | 43,376 |
Caremark Rx, Inc. (a) | 20,710 | | 552,957 |
Cerner Corp. (a) | 800 | | 35,704 |
Community Health Systems, Inc. (a) | 4,090 | | 110,757 |
Coventry Health Care, Inc. (a) | 2,200 | | 131,780 |
DaVita, Inc. (a) | 300 | | 11,454 |
HCA, Inc. | 1,000 | | 41,910 |
Health Management Associates, Inc. Class A | 8,200 | | 210,740 |
Henry Schein, Inc. (a) | 1,100 | | 74,019 |
Humana, Inc. (a) | 1,800 | | 40,194 |
IMS Health, Inc. | 4,800 | | 110,544 |
Inveresk Research Group, Inc. (a) | 3,100 | | 68,231 |
Laboratory Corp. of America Holdings (a) | 1,100 | | 39,732 |
Common Stocks - continued |
| Shares | | Value
(Note 1) |
HEALTH CARE - continued |
Health Care Providers & Services - continued |
Lincare Holdings, Inc. (a) | 1,200 | | $ 35,796 |
McKesson Corp. | 2,790 | | 81,468 |
Medco Health Solutions, Inc. (a) | 84 | | 3,060 |
PacifiCare Health Systems, Inc. (a) | 200 | | 13,022 |
Patterson Dental Co. (a) | 700 | | 47,670 |
Priority Healthcare Corp. Class B (a) | 2,380 | | 54,573 |
Quest Diagnostics, Inc. | 1,000 | | 72,970 |
Renal Care Group, Inc. (a) | 1,800 | | 72,648 |
Select Medical Corp. (a) | 1,500 | | 53,775 |
Specialty Laboratories, Inc. (a) | 1,000 | | 16,700 |
Tenet Healthcare Corp. (a) | 4,800 | | 70,128 |
Triad Hospitals, Inc. (a) | 1,470 | | 50,862 |
UnitedHealth Group, Inc. | 2,800 | | 150,920 |
Universal Health Services, Inc. Class B (a) | 2,700 | | 145,179 |
| | 2,649,465 |
Pharmaceuticals - 4.2% |
aaiPharma, Inc. (a) | 150 | | 2,727 |
Abbott Laboratories | 1,480 | | 65,416 |
Allergan, Inc. | 2,950 | | 220,454 |
Barr Laboratories, Inc. (a) | 2,245 | | 185,302 |
Biovail Corp. (a) | 830 | | 15,612 |
Bristol-Myers Squibb Co. | 1,900 | | 50,065 |
Elan Corp. PLC sponsored ADR (a) | 1,200 | | 6,552 |
Endo Pharmaceuticals Holdings, Inc. (a) | 1,100 | | 20,724 |
Forest Laboratories, Inc. (a) | 1,520 | | 83,053 |
IVAX Corp. (a) | 6,800 | | 145,860 |
Johnson & Johnson | 700 | | 34,503 |
Merck & Co., Inc. | 600 | | 24,360 |
MGI Pharma, Inc. (a) | 1,600 | | 61,392 |
Mylan Laboratories, Inc. | 6,435 | | 162,934 |
Pharmaceutical Resources, Inc. (a) | 2,100 | | 152,418 |
Salix Pharmaceuticals Ltd. (a) | 1,500 | | 28,545 |
Schering-Plough Corp. | 5,000 | | 80,250 |
Sepracor, Inc. (a) | 2,400 | | 59,472 |
Watson Pharmaceuticals, Inc. (a) | 800 | | 37,712 |
| | 1,437,351 |
TOTAL HEALTH CARE | | 8,336,388 |
Common Stocks - continued |
| Shares | | Value
(Note 1) |
INDUSTRIALS - 8.3% |
Aerospace & Defense - 1.0% |
EADS NV | 4,000 | | $ 87,265 |
Embraer - Empresa Brasileira de Aeronautica SA
sponsored ADR | 2,800 | | 82,376 |
KVH Industries, Inc. (a) | 200 | | 6,308 |
Lockheed Martin Corp. | 1,300 | | 59,722 |
Northrop Grumman Corp. | 710 | | 65,767 |
Rockwell Collins, Inc. | 1,200 | | 32,268 |
| | 333,706 |
Air Freight & Logistics - 0.1% |
Expeditors International of Washington, Inc. | 700 | | 27,328 |
Building Products - 0.6% |
American Standard Companies, Inc. (a) | 2,090 | | 208,373 |
Commercial Services & Supplies - 4.4% |
Avery Dennison Corp. | 2,200 | | 121,176 |
Career Education Corp. (a) | 1,600 | | 81,808 |
ChoicePoint, Inc. (a) | 1,826 | | 69,845 |
Cintas Corp. | 3,400 | | 158,916 |
Corinthian Colleges, Inc. (a) | 700 | | 44,751 |
DeVry, Inc. (a) | 1,600 | | 43,824 |
Education Management Corp. (a) | 719 | | 48,604 |
Equifax, Inc. | 2,910 | | 68,763 |
H&R Block, Inc. | 4,420 | | 239,962 |
Herman Miller, Inc. | 1,630 | | 42,462 |
HON Industries, Inc. | 800 | | 33,992 |
ITT Educational Services, Inc. (a) | 1,300 | | 72,839 |
Manpower, Inc. | 200 | | 9,388 |
Monster Worldwide, Inc. (a) | 1,300 | | 31,278 |
Pitney Bowes, Inc. | 4,500 | | 178,875 |
Robert Half International, Inc. (a) | 9,240 | | 205,682 |
School Specialty, Inc. (a) | 1,400 | | 40,544 |
| | 1,492,709 |
Construction & Engineering - 0.1% |
Granite Construction, Inc. | 1,600 | | 35,280 |
Electrical Equipment - 0.1% |
Cooper Industries Ltd. Class A | 710 | | 38,092 |
Common Stocks - continued |
| Shares | | Value
(Note 1) |
INDUSTRIALS - continued |
Industrial Conglomerates - 0.6% |
3M Co. | 1,440 | | $ 113,818 |
Tyco International Ltd. | 4,400 | | 100,980 |
| | 214,798 |
Machinery - 0.9% |
AGCO Corp. (a) | 3,300 | | 56,760 |
Astec Industries, Inc. (a) | 2,900 | | 38,251 |
Ingersoll-Rand Co. Ltd. Class A | 600 | | 37,404 |
ITT Industries, Inc. | 2,300 | | 151,616 |
Pall Corp. | 700 | | 17,934 |
| | 301,965 |
Trading Companies & Distributors - 0.5% |
Fastenal Co. | 3,430 | | 170,402 |
TOTAL INDUSTRIALS | | 2,822,653 |
INFORMATION TECHNOLOGY - 28.9% |
Communications Equipment - 5.3% |
3Com Corp. (a) | 10,700 | | 80,036 |
ADC Telecommunications, Inc. (a) | 3,600 | | 8,856 |
Advanced Fibre Communications, Inc. (a) | 1,100 | | 24,585 |
Alcatel SA sponsored ADR (a) | 28,150 | | 366,513 |
Arris Group, Inc. (a) | 1,300 | | 8,385 |
AudioCodes Ltd. (a) | 6,200 | | 72,478 |
Avaya, Inc. (a) | 3,300 | | 44,880 |
Avocent Corp. (a) | 1,000 | | 38,290 |
Brocade Communications Systems, Inc. (a) | 4,660 | | 28,379 |
CIENA Corp. (a) | 8,600 | | 60,888 |
Cisco Systems, Inc. (a) | 19,300 | | 437,338 |
Corning, Inc. (a) | 13,600 | | 155,856 |
Enterasys Networks, Inc. (a) | 6,270 | | 26,898 |
Extreme Networks, Inc. (a) | 3,400 | | 33,354 |
Finisar Corp. (a) | 26,500 | | 106,000 |
Foundry Networks, Inc. (a) | 1,300 | | 34,268 |
InterDigital Communication Corp. (a) | 1,200 | | 24,576 |
JDS Uniphase Corp. (a) | 8,000 | | 27,520 |
Marconi Corp. PLC (a) | 10,820 | | 109,891 |
Nokia Corp. sponsored ADR | 2,200 | | 39,556 |
Polycom, Inc. (a) | 1,670 | | 33,099 |
Common Stocks - continued |
| Shares | | Value
(Note 1) |
INFORMATION TECHNOLOGY - continued |
Communications Equipment - continued |
SeaChange International, Inc. (a) | 1,200 | | $ 18,060 |
Sycamore Networks, Inc. (a) | 3,500 | | 18,620 |
| | 1,798,326 |
Computers & Peripherals - 3.7% |
Avid Technology, Inc. (a) | 400 | | 21,152 |
Diebold, Inc. | 3,400 | | 180,370 |
Electronics for Imaging, Inc. (a) | 800 | | 22,080 |
EMC Corp. (a) | 2,250 | | 30,915 |
Hewlett-Packard Co. | 700 | | 15,183 |
Hutchinson Technology, Inc. (a) | 500 | | 16,285 |
Lexmark International, Inc. Class A (a) | 8,850 | | 684,990 |
Maxtor Corp. (a) | 7,400 | | 82,584 |
Seagate Technology | 5,000 | | 98,750 |
Sun Microsystems, Inc. (a) | 26,760 | | 114,265 |
| | 1,266,574 |
Electronic Equipment & Instruments - 2.1% |
Arrow Electronics, Inc. (a) | 1,000 | | 23,380 |
CDW Corp. | 1,000 | | 59,750 |
Celestica, Inc. (sub. vtg.) (a) | 900 | | 13,710 |
Flextronics International Ltd. (a) | 23,100 | | 370,293 |
Ingram Micro, Inc. Class A (a) | 800 | | 11,664 |
KEMET Corp. (a) | 1,700 | | 22,440 |
Lexar Media, Inc. (a) | 2,110 | | 45,070 |
Symbol Technologies, Inc. | 5,870 | | 81,887 |
Thermo Electron Corp. (a) | 1,260 | | 30,114 |
Vishay Intertechnology, Inc. (a) | 2,500 | | 52,525 |
| | 710,833 |
Internet Software & Services - 0.6% |
Lastminute.com PLC sponsored ADR (a) | 100 | | 2,370 |
Retek, Inc. (a) | 2,785 | | 28,908 |
Sina Corp. (a) | 700 | | 24,500 |
United Online, Inc. (a) | 750 | | 13,658 |
VeriSign, Inc. (a) | 1,100 | | 17,831 |
Vignette Corp. (a) | 27,290 | | 63,040 |
Vitria Technology, Inc. (a) | 4,575 | | 25,986 |
Yahoo!, Inc. (a) | 800 | | 34,384 |
| | 210,677 |
IT Services - 2.5% |
Accenture Ltd. Class A (a) | 1,500 | | 37,350 |
Common Stocks - continued |
| Shares | | Value
(Note 1) |
INFORMATION TECHNOLOGY - continued |
IT Services - continued |
Affiliated Computer Services, Inc. Class A (a) | 2,700 | | $ 135,378 |
Anteon International Corp. (a) | 400 | | 15,264 |
BearingPoint, Inc. (a) | 1,600 | | 14,832 |
Computer Sciences Corp. (a) | 400 | | 16,560 |
Concord EFS, Inc. (a) | 11,900 | | 136,731 |
CSG Systems International, Inc. (a) | 65 | | 753 |
DST Systems, Inc. (a) | 1,100 | | 41,052 |
First Data Corp. | 2,970 | | 112,415 |
Fiserv, Inc. (a) | 2,300 | | 86,250 |
Infosys Technologies Ltd. sponsored ADR | 1,000 | | 83,050 |
Iron Mountain, Inc. (a) | 2,100 | | 77,280 |
Paychex, Inc. | 640 | | 24,621 |
SunGard Data Systems, Inc. (a) | 2,090 | | 56,472 |
The BISYS Group, Inc. (a) | 1,880 | | 28,050 |
| | 866,058 |
Office Electronics - 0.5% |
Xerox Corp. (a) | 5,200 | | 63,336 |
Zebra Technologies Corp. Class A (a) | 1,400 | | 88,998 |
| | 152,334 |
Semiconductors & Semiconductor Equipment - 7.1% |
Advanced Micro Devices, Inc. (a) | 8,200 | | 147,436 |
Agere Systems, Inc. Class A (a) | 17,200 | | 60,888 |
Analog Devices, Inc. | 1,500 | | 74,625 |
ASML Holding NV (NY Shares) (a) | 4,700 | | 88,454 |
Cabot Microelectronics Corp. (a) | 300 | | 15,927 |
Conexant Systems, Inc. (a) | 36,490 | | 184,275 |
Cypress Semiconductor Corp. (a) | 1,800 | | 40,284 |
DuPont Photomasks, Inc. (a) | 100 | | 2,322 |
Integrated Circuit Systems, Inc. (a) | 700 | | 20,825 |
Integrated Device Technology, Inc. (a) | 3,300 | | 62,205 |
Intel Corp. | 5,500 | | 183,865 |
KLA-Tencor Corp. (a) | 1,440 | | 84,398 |
Lam Research Corp. (a) | 600 | | 19,200 |
LSI Logic Corp. (a) | 9,400 | | 88,078 |
Microchip Technology, Inc. | 11,420 | | 392,848 |
Micron Technology, Inc. (a) | 7,900 | | 102,779 |
Mindspeed Technologies, Inc. (a) | 1,230 | | 8,229 |
National Semiconductor Corp. (a) | 3,300 | | 147,576 |
Novellus Systems, Inc. (a) | 2,200 | | 96,272 |
Common Stocks - continued |
| Shares | | Value
(Note 1) |
INFORMATION TECHNOLOGY - continued |
Semiconductors & Semiconductor Equipment - continued |
NVIDIA Corp. (a) | 6,400 | | $ 135,360 |
Photronics, Inc. (a) | 6,400 | | 118,208 |
PMC-Sierra, Inc. (a) | 11,500 | | 234,255 |
Rambus, Inc. (a) | 800 | | 24,000 |
Silicon Laboratories, Inc. (a) | 380 | | 18,647 |
Taiwan Semiconductor Manufacturing Co. Ltd.
sponsored ADR (a) | 120 | | 1,304 |
Texas Instruments, Inc. | 400 | | 11,904 |
United Microelectronics Corp. sponsored ADR (a) | 520 | | 2,725 |
Varian Semiconductor Equipment Associates, Inc. (a) | 1,200 | | 55,872 |
| | 2,422,761 |
Software - 7.1% |
Adobe Systems, Inc. | 4,790 | | 197,923 |
Amdocs Ltd. (a) | 9,900 | | 247,698 |
Autodesk, Inc. | 900 | | 20,898 |
BEA Systems, Inc. (a) | 11,641 | | 147,841 |
BMC Software, Inc. (a) | 1,700 | | 28,271 |
Cadence Design Systems, Inc. (a) | 10,530 | | 176,167 |
Citrix Systems, Inc. (a) | 1,370 | | 32,907 |
Cognos, Inc. (a) | 500 | | 16,767 |
Concord Communications, Inc. (a) | 100 | | 2,214 |
E.piphany, Inc. (a) | 3,200 | | 25,280 |
Electronic Arts, Inc. (a) | 5,700 | | 252,111 |
i2 Technologies, Inc. (a) | 15,800 | | 31,600 |
Intuit, Inc. (a) | 3,600 | | 181,008 |
Jack Henry & Associates, Inc. | 1,290 | | 26,729 |
Manhattan Associates, Inc. (a) | 304 | | 9,251 |
Mercury Interactive Corp. (a) | 3,400 | | 159,120 |
Microsoft Corp. | 10,070 | | 258,799 |
Network Associates, Inc. (a) | 1,550 | | 20,755 |
Oracle Corp. (a) | 3,000 | | 36,030 |
Parametric Technology Corp. (a) | 4,400 | | 15,048 |
Red Hat, Inc. (a) | 1,800 | | 23,904 |
Siebel Systems, Inc. (a) | 29,785 | | 392,566 |
Symantec Corp. (a) | 3,180 | | 104,399 |
VERITAS Software Corp. (a) | 310 | | 11,787 |
| | 2,419,073 |
TOTAL INFORMATION TECHNOLOGY | | 9,846,636 |
Common Stocks - continued |
| Shares | | Value
(Note 1) |
MATERIALS - 1.4% |
Chemicals - 0.5% |
Dow Chemical Co. | 1,300 | | $ 48,815 |
Ferro Corp. | 1,100 | | 24,970 |
International Flavors & Fragrances, Inc. | 800 | | 25,976 |
Olin Corp. | 2,400 | | 43,704 |
Praxair, Inc. | 200 | | 14,356 |
| | 157,821 |
Construction Materials - 0.0% |
Martin Marietta Materials, Inc. | 300 | | 12,771 |
Containers & Packaging - 0.5% |
Owens-Illinois, Inc. (a) | 2,610 | | 29,441 |
Sealed Air Corp. (a) | 2,500 | | 131,925 |
| | 161,366 |
Metals & Mining - 0.4% |
Freeport-McMoRan Copper & Gold, Inc. Class B | 2,730 | | 118,837 |
Massey Energy Co. | 2,300 | | 31,970 |
| | 150,807 |
TOTAL MATERIALS | | 482,765 |
TELECOMMUNICATION SERVICES - 2.0% |
Diversified Telecommunication Services - 0.5% |
Covad Communications Group, Inc. (a) | 14,300 | | 57,200 |
NTL, Inc. (a) | 1,362 | | 88,748 |
Qwest Communications International, Inc. (a) | 9,670 | | 35,392 |
| | 181,340 |
Wireless Telecommunication Services - 1.5% |
Arch Wireless, Inc. Class A (a) | 400 | | 6,988 |
At Road, Inc. (a) | 1,000 | | 12,590 |
KDDI Corp. | 12 | | 62,572 |
MobilCom AG (a) | 1,900 | | 27,012 |
Nextel Communications, Inc. Class A (a) | 15,500 | | 392,615 |
| | 501,777 |
TOTAL TELECOMMUNICATION SERVICES | | 683,117 |
TOTAL COMMON STOCKS (Cost $27,971,115) | 32,698,644 |
Investment Companies - 0.5% |
| Shares | | Value
(Note 1) |
Nasdaq-100 Trust unit Series 1 (a)
(Cost $116,505) | 4,758 | | $ 168,433 |
Money Market Funds - 3.7% |
Fidelity Cash Central Fund, 1.09% (b)
(Cost $1,277,675) | 1,277,675 | | 1,277,675 |
TOTAL INVESTMENT
PORTFOLIO - 100.2% (Cost $29,365,295) | 34,144,752 |
NET OTHER ASSETS - (0.2)% | (82,850) |
NET ASSETS - 100% | $ 34,061,902 |
Legend |
(a) Non-income producing |
(b) The rate quoted is the annualized seven-day yield of the fund at period end. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request. |
Other Information |
Purchases and sales of securities, other than short-term securities, aggregated $44,830,556 and $40,215,963, respectively. |
The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $4,111 for the period. |
Income Tax Information |
At November 30, 2003, the fund had a capital loss carryforward of approximately $14,669,000 of which $7,729,000 and $6,940,000 will expire on November 30, 2009 and 2010, respectively. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements
Statement of Assets and Liabilities
| November 30, 2003 |
| | |
Assets | | |
Investment in securities, at value (cost $29,365,295) - See accompanying schedule | | $ 34,144,752 |
Receivable for investments sold | | 140,000 |
Receivable for fund shares sold | | 110,937 |
Dividends receivable | | 16,881 |
Interest receivable | | 559 |
Prepaid expenses | | 144 |
Receivable from investment adviser for expense reductions | | 13,637 |
Other receivables | | 12,507 |
Total assets | | 34,439,417 |
| | |
Liabilities | | |
Payable for investments purchased | $ 246,607 | |
Payable for fund shares redeemed | 47,133 | |
Accrued management fee | 17,405 | |
Distribution fees payable | 19,613 | |
Other affiliated payables | 19,721 | |
Other payables and accrued expenses | 27,036 | |
Total liabilities | | 377,515 |
| | |
Net Assets | | $ 34,061,902 |
Net Assets consist of: | | |
Paid in capital | | $ 44,212,068 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (14,929,632) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 4,779,466 |
Net Assets | | $ 34,061,902 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
| November 30, 2003 |
| | |
Calculation of Maximum Offering Price | | |
Class A:
Net Asset Value and redemption price per share ($4,176,794 ÷ 521,077 shares) | | $ 8.02 |
| | |
Maximum offering price per share (100/94.25 of $8.02) | | $ 8.51 |
Class T:
Net Asset Value and redemption price per share ($12,457,648 ÷ 1,566,991 shares) | | $ 7.95 |
| | |
Maximum offering price per share (100/96.50 of $7.95) | | $ 8.24 |
Class B:
Net Asset Value and offering price per share ($8,421,613 ÷ 1,074,396 shares) A | | $ 7.84 |
| | |
Class C:
Net Asset Value and offering price per share ($8,426,683 ÷ 1,073,340 shares) A | | $ 7.85 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($579,164 ÷ 71,488 shares) | | $ 8.10 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Operations
| Year ended November 30, 2003 |
| | |
Investment Income | | |
Dividends | | $ 125,344 |
Interest | | 34,964 |
Total income | | 160,308 |
| | |
Expenses | | |
Management fee | $ 176,847 | |
Transfer agent fees | 171,108 | |
Distribution fees | 205,278 | |
Accounting fees and expenses | 61,435 | |
Non-interested trustees' compensation | 113 | |
Custodian fees and expenses | 20,048 | |
Registration fees | 46,752 | |
Audit | 42,277 | |
Legal | 2,299 | |
Miscellaneous | 7,821 | |
Total expenses before reductions | 733,978 | |
Expense reductions | (198,822) | 535,156 |
Net investment income (loss) | | (374,848) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities | 2,331,661 | |
Foreign currency transactions | 204 | |
Futures contracts | 183,055 | |
Total net realized gain (loss) | | 2,514,920 |
Change in net unrealized appreciation (depreciation) on: Investment securities | 4,055,000 | |
Assets and liabilities in foreign currencies | 9 | |
Total change in net unrealized appreciation (depreciation) | | 4,055,009 |
Net gain (loss) | | 6,569,929 |
Net increase (decrease) in net assets resulting from operations | | $ 6,195,081 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements - continued
Statement of Changes in Net Assets
| Year ended
November 30,
2003 | Year ended
November 30,
2002 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (374,848) | $ (478,531) |
Net realized gain (loss) | 2,514,920 | (6,655,693) |
Change in net unrealized appreciation (depreciation) | 4,055,009 | (175,472) |
Net increase (decrease) in net assets resulting
from operations | 6,195,081 | (7,309,696) |
Share transactions - net increase (decrease) | 1,324,213 | (963,336) |
Total increase (decrease) in net assets | 7,519,294 | (8,273,032) |
| | |
Net Assets | | |
Beginning of period | 26,542,608 | 34,815,640 |
End of period | $ 34,061,902 | $ 26,542,608 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class A
Years ended November 30, | 2003 | 2002 | 2001 | 2000 F |
Selected Per-Share Data | | | | |
Net asset value, beginning of period | $ 6.47 | $ 8.08 | $ 9.05 | $ 10.00 |
Income from Investment Operations | | | | |
Net investment income (loss)E | (.06) | (.08) | (.01) | -H |
Net realized and unrealized gain (loss) | 1.61 | (1.53) | (.95) | (.95) |
Total from investment operations | 1.55 | (1.61) | (.96) | (.95) |
Distributions from net realized gain | - | - | (.01) | - |
Net asset value, end of period | $ 8.02 | $ 6.47 | $ 8.08 | $ 9.05 |
Total ReturnB,C,D | 23.96% | (19.93)% | (10.62)% | (9.50)% |
Ratios to Average Net AssetsG | | | | |
Expenses before expense reductions | 2.25% | 2.05% | 2.06% | 31.94%A |
Expenses net of voluntary waivers, if any | 1.54% | 1.69% | 1.75% | 1.75%A |
Expenses net of all reductions | 1.47% | 1.49% | 1.71% | 1.75%A |
Net investment income (loss) | (.89)% | (1.07)% | (.14)% | .99%A |
Supplemental Data | | | | |
Net assets, end of period (000 omitted) | $ 4,177 | $ 2,620 | $ 3,320 | $ 1,789 |
Portfolio turnover rate | 158% | 473% | 481% | 139%A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F For the period November 13, 2000 (commencement of operations) to November 30, 2000.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class T
Years ended November 30, | 2003 | 2002 | 2001 | 2000F |
Selected Per-Share Data | | | | |
Net asset value, beginning of period | $ 6.43 | $ 8.06 | $ 9.05 | $ 10.00 |
Income from Investment Operations | | | | |
Net investment income (loss)E | (.08) | (.10) | (.03) | -H |
Net realized and unrealized gain (loss) | 1.60 | (1.53) | (.95) | (.95) |
Total from investment operations | 1.52 | (1.63) | (.98) | (.95) |
Distributions from net realized gain | - | - | (.01) | - |
Net asset value, end of period | $ 7.95 | $ 6.43 | $ 8.06 | $ 9.05 |
Total ReturnB,C,D | 23.64% | (20.22)% | (10.84)% | (9.50)% |
Ratios to Average Net AssetsG | | | | |
Expenses before expense reductions | 2.47% | 2.16% | 2.30% | 32.36%A |
Expenses net of voluntary waivers, if any | 1.79% | 1.92% | 2.00% | 2.00%A |
Expenses net of all reductions | 1.72% | 1.72% | 1.96% | 2.00%A |
Net investment income (loss) | (1.14)% | (1.29)% | (.39)% | .74%A |
Supplemental Data | | | | |
Net assets, end of period (000 omitted) | $ 12,458 | $ 10,511 | $ 14,165 | $ 2,767 |
Portfolio turnover rate | 158% | 473% | 481% | 139%A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F For the period November 13, 2000 (commencement of operations) to November 30, 2000.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class B
Years ended November 30, | 2003 | 2002 | 2001 | 2000F |
Selected Per-Share Data | | | | |
Net asset value, beginning of period | $ 6.37 | $ 8.02 | $ 9.05 | $ 10.00 |
Income from Investment Operations | | | | |
Net investment income (loss)E | (.11) | (.13) | (.08) | -H |
Net realized and unrealized gain (loss) | 1.58 | (1.52) | (.94) | (.95) |
Total from investment operations | 1.47 | (1.65) | (1.02) | (.95) |
Distributions from net realized gain | - | - | (.01) | - |
Net asset value, end of period | $ 7.84 | $ 6.37 | $ 8.02 | $ 9.05 |
Total ReturnB,C,D | 23.08% | (20.57)% | (11.29)% | (9.50)% |
Ratios to Average Net AssetsG | | | | |
Expenses before expense reductions | 2.92% | 2.73% | 2.86% | 32.87%A |
Expenses net of voluntary waivers, if any | 2.25% | 2.43% | 2.50% | 2.50%A |
Expenses net of all reductions | 2.18% | 2.23% | 2.46% | 2.50%A |
Net investment income (loss) | (1.60)% | (1.81)% | (.89)% | .24%A |
Supplemental Data | | | | |
Net assets, end of period (000 omitted) | $ 8,422 | $ 6,262 | $ 8,038 | $ 1,659 |
Portfolio turnover rate | 158% | 473% | 481% | 139%A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F For the period November 13, 2000 (commencement of operations) to November 30, 2000.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class C
Years ended November 30, | 2003 | 2002 | 2001 | 2000F |
Selected Per-Share Data | | | | |
Net asset value, beginning of period | $ 6.38 | $ 8.03 | $ 9.05 | $ 10.00 |
Income from Investment Operations | | | | |
Net investment income (loss)E | (.11) | (.13) | (.08) | -H |
Net realized and unrealized gain (loss) | 1.58 | (1.52) | (.93) | (.95) |
Total from investment operations | 1.47 | (1.65) | (1.01) | (.95) |
Distributions from net realized gain | - | - | (.01) | - |
Net asset value, end of period | $ 7.85 | $ 6.38 | $ 8.03 | $ 9.05 |
Total ReturnB,C,D | 23.04% | (20.55)% | (11.18)% | (9.50)% |
Ratios to Average Net AssetsG | | | | |
Expenses before expense reductions | 2.77% | 2.58% | 2.79% | 32.69%A |
Expenses net of voluntary waivers, if any | 2.25% | 2.36% | 2.50% | 2.50%A |
Expenses net of all reductions | 2.18% | 2.16% | 2.46% | 2.50%A |
Net investment income (loss) | (1.61)% | (1.74)% | (.89)% | .24%A |
Supplemental Data | | | | |
Net assets, end of period (000 omitted) | $ 8,427 | $ 6,636 | $ 8,532 | $ 1,224 |
Portfolio turnover rate | 158% | 473% | 481% | 139%A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F For the period November 13, 2000 (commencement of operations) to November 30, 2000.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Institutional Class
Years ended November 30, | 2003 | 2002 | 2001 | 2000E |
Selected Per-Share Data | | | | |
Net asset value, beginning of period | $ 6.52 | $ 8.11 | $ 9.06 | $ 10.00 |
Income from Investment Operations | | | | |
Net investment income (loss)D | (.04) | (.05) | .01 | .01 |
Net realized and unrealized gain (loss) | 1.62 | (1.54) | (.95) | (.95) |
Total from investment operations | 1.58 | (1.59) | (.94) | (.94) |
Distributions from net realized gain | - | - | (.01) | - |
Net asset value, end of period | $ 8.10 | $ 6.52 | $ 8.11 | $ 9.06 |
Total ReturnB,C | 24.23% | (19.61)% | (10.39)% | (9.40)% |
Ratios to Average Net AssetsF | | | | |
Expenses before expense reductions | 1.61% | 1.43% | 1.73% | 31.51%A |
Expenses net of voluntary waivers, if any | 1.25% | 1.27% | 1.50% | 1.50%A |
Expenses net of all reductions | 1.18% | 1.07% | 1.46% | 1.50%A |
Net investment income (loss) | (.61)% | (.64)% | .11% | 1.24%A |
Supplemental Data | | | | |
Net assets, end of period (000 omitted) | $ 579 | $ 513 | $ 761 | $ 325 |
Portfolio turnover rate | 158% | 473% | 481% | 139%A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E For the period November 13, 2000 (commencement of operations) to November 30, 2000.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Notes to Financial Statements
For the period ended November 30, 2003
1. Significant Accounting Policies.
Fidelity Advisor Aggressive Growth Fund (the fund) is a fund of Fidelity Securities 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 Class A, Class T, Class B, Class C, and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the fund, and certain fund-level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the fund:
Security Valuation. Net asset value per share (NAV calculation) is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Equity securities for which market quotations are available are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) on the primary market or exchange on which they trade. If an event that is expected to materially affect the value of a security occurs after the close of an exchange or market on which that security trades, but prior to the NAV calculation, then that security will be fair valued taking the event into account. Securities (including restricted securities) for which market quotations are not readily available are valued at their fair value as determined in good faith under consistently applied procedures under the general supervision of the Board of Trustees. Price movements in futures contracts and ADRs, market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading may be reviewed in the course of making a good faith determination of a security's fair value. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued on the basis of amortized cost. Investments in open-end investment companies are valued at their net asset value each business day.
Annual Report
Notes to Financial Statements - continued
1. Significant Accounting Policies - continued
Foreign Currency. The fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income is accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities, which is accrued using the interest method. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among the funds in the trust.
Income Tax Information and Distributions to Shareholders. Each year the fund intends to qualify as a regulated investment company by distributing all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required in the accompanying financial statements. Foreign taxes are provided for based on each fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. Income dividends and capital gain distributions are declared separately for each class. Distributions are recorded on the ex-dividend date.
Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Capital accounts within the financial statements are adjusted for permanent and temporary book and tax differences. These adjustments have no impact on net assets or the results of operations. Temporary differences will reverse in a subsequent period. These
Annual Report
1. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
differences are primarily due to foreign currency transactions, future transactions, net operating losses, capital loss carryforwards, and losses deferred due to wash sales.
The tax-basis components of distributable earnings and the federal tax cost as of period end were as follows:
Unrealized appreciation | $ 5,404,018 | | |
Unrealized depreciation | (884,871) | |
Net unrealized appreciation (depreciation) | 4,519,147 | |
Capital loss carryforward | (14,669,313) | |
Cost for federal income tax purposes | $ 29,625,605 | |
2. Operating Policies.
Repurchase Agreements. Fidelity Management & Research Company (FMR) has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts. These accounts are then invested in repurchase agreements that are collateralized by U.S. Treasury or Government obligations. The fund may also invest directly with institutions, in repurchase agreements that are collateralized by commercial paper obligations and corporate obligations. Collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. Collateral is marked-to-market daily and maintained at a value at least equal to the principal amount of the repurchase agreement (including accrued interest).
Futures Contracts. The fund may use futures contracts to manage its exposure to the stock market. Buying futures tends to increase the fund's exposure to the underlying instrument, while selling futures tends to decrease the fund's exposure to the underlying instrument or hedge other fund investments. Losses may arise from changes in the value of the underlying instruments or if the counter-parties do not perform under the contracts' terms. Gains (losses) are realized upon the expiration or closing of the futures contracts. Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded.
3. Purchases and Sales of Investments.
Information regarding purchases and sales of securities is included under the caption "Other Information" at the end of the fund's Schedule of Investments.
Annual Report
Notes to Financial Statements - continued
4. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the fund with investment management related services for which the fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .35% of the fund's average net assets and a group fee rate that averaged .28% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annual management fee rate was .63% of the fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. Class A and Class T Plans also authorize the use of brokerage commissions to pay distribution expenses. This practice has been discontinued and no commissions incurred after June 30, 2003 have been used to pay distribution expenses. In addition, FDC may pay financial intermediaries for selling shares of the fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, the total amounts paid to and retained by FDC and the amount of distribution expenses paid with brokerage commissions were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC | Paid with
Commissions |
Class A | .04% | .25% | $ 8,706 | $ 68 | $ 1,089 |
Class T | .29% | .25% | 56,728 | 220 | 3,988 |
Class B | .75% | .25% | 68,405 | 51,350 | - |
Class C | .75% | .25% | 71,439 | 9,247 | - |
| | | $ 205,278 | $ 60,885 | $ 5,077 |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares of the fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, and .25% for certain purchases of Class A and Class T shares.
Annual Report
4. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
| | Retained
by FDC |
Class A | | $ 9,357 |
Class T | | 7,563 |
Class B* | | 24,751 |
Class C* | | 1,116 |
| | $ 42,787 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent (collectively referred to as the transfer agent) for each class of the fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the fund. FIIOC pays for typesetting, printing and mailing of all shareholder reports, except proxy statements. For the period, the following amounts were paid to FIIOC:
| Amount | % of Average
Net Assets |
Class A | $ 21,169 | .69 |
Class T | 69,208 | .66 |
Class B | 44,268 | .65 |
Class C | 34,846 | .49 |
Institutional Class | 1,617 | .33 |
| $ 171,108 | |
Accounting Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the fund's accounting records. The fee is based on the level of average net assets for the month plus out-of-pocket expenses.
Central Funds. The fund may invest in affiliated Central Funds managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR. The Central Funds are open-end investment companies available only to investment companies and other accounts managed by FMR and its affiliates. The Central Funds seek preservation of capital and current income and do not pay a management fee. Income distributions earned by the fund are recorded as income in the accompanying financial statements and totaled $34,653 for the period.
Annual Report
Notes to Financial Statements - continued
4. Fees and Other Transactions with Affiliates - continued
Brokerage Commissions. The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms are shown under the caption "Other Information" at the end of the fund's Schedule of Investments.
5. 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. During the period, there were no borrowings on this line of credit.
6. Expense Reductions.
FMR agreed to reimburse the classes of the fund to the extent operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, are excluded from this reimbursement.
| Expense
Limitations | Reimbursement
from adviser |
Class A | 1.50% | $ 21,964 |
Class T | 1.75% | 72,327 |
Class B | 2.25% | 46,452 |
Class C | 2.25% | 37,002 |
Institutional Class | 1.25% | 1,739 |
| | $ 179,484 |
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 may include payments of expenses on behalf of the fund to support distribution of fund shares for Class A and Class T ("Distribution Expense Reduction") and to pay other fund expenses, such as transfer agent fees ("Other Expense Reduction") collectively referred to as "Brokerage Service Arrangements" in the accompanying table. Brokerage service arrangements generally benefits all shareholders of each class by reducing fund expenses. Each of Class A and Class T shareholders' Other Expense Reduction benefit is reduced by the amount
Annual Report
6. Expense Reductions - continued
of any Distribution Expense Reduction. All of the applicable expense reductions are noted in the table below.
| Brokerage Service Arrangements |
| Distribution
expense
reduction | Other
expense
reduction |
Fund Level | $ - | $ 14,261 |
Class A | 1,089 | - |
Class T | 3,988 | - |
| $ 5,077 | $ 14,261 |
7. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
Years ended
November 30, | 2003 | 2002 | 2003 | 2002 |
Class A | | | | |
Shares sold | 244,577 | 165,182 | $ 1,722,170 | $ 1,240,636 |
Shares redeemed | (128,450) | (171,008) | (880,316) | (1,293,424) |
Net increase (decrease) | 116,127 | (5,826) | $ 841,854 | $ (52,788) |
Class T | | | | |
Shares sold | 442,489 | 903,899 | $ 3,023,259 | $ 7,000,780 |
Shares redeemed | (509,774) | (1,027,358) | (3,391,934) | (7,601,666) |
Net increase (decrease) | (67,285) | (123,459) | $ (368,675) | $ (600,886) |
Class B | | | | |
Shares sold | 340,312 | 347,968 | $ 2,312,985 | $ 2,574,720 |
Shares redeemed | (249,139) | (366,934) | (1,653,902) | (2,702,296) |
Net increase (decrease) | 91,173 | (18,966) | $ 659,083 | $ (127,576) |
Class C | | | | |
Shares sold | 327,135 | 378,395 | $ 2,159,687 | $ 2,890,698 |
Shares redeemed | (293,843) | (400,792) | (1,926,688) | (2,983,429) |
Net increase (decrease) | 33,292 | (22,397) | $ 232,999 | $ (92,731) |
Institutional Class | | | | |
Shares sold | 11,899 | 27,286 | $ 86,133 | $ 220,096 |
Shares redeemed | (19,157) | (42,260) | (127,181) | (309,451) |
Net increase (decrease) | (7,258) | (14,974) | $ (41,048) | $ (89,355) |
Annual Report
Report of Independent Auditors
To the Trustees of Fidelity Securities Fund and the Shareholders of Fidelity
Advisor Aggressive Growth 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 Advisor Aggressive Growth Fund (a fund of Fidelity Securities Fund) at November 30, 2003 and the results of its operations, the changes in its net assets and the financial highlights for the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity Advisor Aggressive Growth 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 auditing standards generally accepted in the United States of America which 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 November 30, 2003 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
January 15, 2004
Annual Report
Trustees and Officers
The Trustees, Members 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 William O. McCoy, each of the Trustees oversees 291 funds advised by FMR or an affiliate. Mr. McCoy oversees 293 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. In any event, each non-interested Trustee shall retire not later than the last day of the calendar year in which his or her 72nd birthday occurs. The executive officers and Advisory Board Members 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 1-877-208-0098.
Interested Trustees*:
Correspondence intended for each Trustee who is an "interested person" (as defined in the 1940 Act) may be sent to 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation |
Edward C. Johnson 3d (73)** |
| Year of Election or Appointment: 1984 Trustee of Fidelity Securities Fund. Mr. Johnson is Chairman of the Board of Trustees. Mr. Johnson serves as Chief Executive Officer, Chairman, and a Director of FMR Corp.; a Director and Chairman of the Board and of the Executive Committee of FMR; Chairman and a Director of Fidelity Management & Research (Far East) Inc.; Chairman (1998) and a Director of Fidelity Investments Money Management, Inc.; and Chairman (2001) and a Director (2000) of FMR Co., Inc. |
Abigail P. Johnson (41)** |
| Year of Election or Appointment:2001 Senior Vice President of Advisor Aggressive Growth (2001). Ms. Johnson also serves as Senior Vice President of other Fidelity funds (2001). She is President and a Director of FMR (2001), Fidelity Investments Money Management, Inc. (2001), FMR Co., Inc. (2001), and a Director of FMR Corp. Previously, Ms. Johnson managed a number of Fidelity funds. |
Laura B. Cronin (49) |
| Year of Election or Appointment: 2003 Ms. Cronin is an Executive Vice President (2002) and Chief Financial Officer (2002) of FMR Corp. and is a member of the Fidelity Management Committee (2003). Previously, Ms. Cronin served as Vice President of Finance of FMR (1997-1999), and Chief Financial Officer of FMR (1999-2001), Fidelity Personal Investments (2001), and Fidelity Brokerage Company (2001-2002). |
Robert L. Reynolds (51) |
| Year of Election or Appointment: 2003 Mr. Reynolds is a Director (2003) and Chief Operating Officer (2002) of FMR Corp. and is the head of the Fidelity Management Committee (2003). He also serves on the Board at Fidelity Investments Canada, Ltd. (2000). Previously, Mr. Reynolds served as President of Fidelity Investments Institutional Retirement Group (1996-2000). |
* 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.
** Edward C. Johnson 3d, Trustee, is Abigail P. Johnson's father.
Annual Report
Non-Interested Trustees:
Correspondence intended for each non-interested 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 |
J. Michael Cook (61) |
| Year of Election or Appointment: 2001 Prior to Mr. Cook's retirement in May 1999, he served as Chairman and Chief Executive Officer of Deloitte & Touche LLP (accounting/consulting), Chairman of the Deloitte & Touche Foundation, and a member of the Board of Deloitte Touche Tohmatsu. He currently serves as a Director of Comcast (telecommunications, 2002), International Flavors & Fragrances, Inc. (2000), Rockwell Automation (2000) and The Dow Chemical Company (2000). He is a Member of the Diversity Advisory Council of Marakon (2003) and the Advisory Board of the Directorship Search Group, Chairman Emeritus of the Board of Catalyst (a leading organization for the advancement of women in business), and is Chairman of the Accountability Advisory Council to the Comptroller General of the United States. He also serves as a Member of the Advisory Board of the Graduate School of Business of the University of Florida, his alma mater. |
Ralph F. Cox (71) |
| Year of Election or Appointment: 1991 Mr. Cox is President of RABAR Enterprises (management consulting for the petroleum industry). Prior to February 1994, he was President of Greenhill Petroleum Corporation (petroleum exploration and production). Until March 1990, Mr. Cox was President and Chief Operating Officer of Union Pacific Resources Company (exploration and production). He is a Director of CH2M Hill Companies (engineering), and Abraxas Petroleum (petroleum exploration and production, 1999). In addition, he is a member of advisory boards of Texas A&M University and the University of Texas at Austin. |
Robert M. Gates (60) |
| Year of Election or Appointment: 1997 Dr. Gates is President of Texas A&M University (2002). He was Director of the Central Intelligence Agency (CIA) from 1991 to 1993. From 1989 to 1991, Dr. Gates served as Assistant to the President of the United States and Deputy National Security Advisor. Dr. Gates is a Director of NACCO Industries, Inc. (mining and manufacturing), and Parker Drilling Co., Inc. (drilling and rental tools for the energy industry, 2001). He also serves as a member of the Advisory Board of VoteHere.net (secure internet voting, 2001). Previously, Dr. Gates served as a Director of LucasVarity PLC (automotive components and diesel engines), a Director of TRW Inc. (automotive, space, defense, and information technology), and Dean of the George Bush School of Government and Public Service at Texas A&M University (1999-2001). Dr. Gates also is a Trustee of the Forum for International Policy. |
George H. Heilmeier (67) |
| Year of Election or Appointment: 2004 Dr. Heilmeier is Chairman Emeritus of Telcordia Technologies (communication software and systems), where prior to his retirement, he served as company Chairman and Chief Executive Officer. He currently serves on the Boards of Directors of The Mitre Corporation (systems engineering and information technology support for the government), INET Technologies Inc. (telecommunications network surveillance, 2001) and Teletech Holdings (customer management services, 1998). He is Chairman of the General Motors Technology Advisory Committee and a Life Fellow of the IEEE (2000). Dr. Heilmeier is a member of the Defense Science Board and the National Security Agency Advisory Board. He is also a member of the National Academy of Engineering, the American Academy of Arts and Sciences and The Board of Overseers of the School of Engineering and Applied Science of the University of Pennsylvania. Previously, Dr. Heilmeier served as a Director of TRW Inc. (automotive, space, defense, and information technology, 1992-2002) and Compaq (1994-2002). |
Donald J. Kirk (71) |
| Year of Election or Appointment: 1987 Mr. Kirk is a Governor of the American Stock Exchange (2001), a Trustee and former Chairman of the Board of Trustees of the Greenwich Hospital Association, a Director of the Yale-New Haven Health Services Corp. (1998), and a Director Emeritus and former Chairman of the Board of Directors of National Arts Strategies Inc. Mr. Kirk was an Executive-in-Residence (1995-2000) and a Professor (1987-1995) at Columbia University Graduate School of Business. Prior to 1987, he was Chairman of the Financial Accounting Standards Board. Previously, Mr. Kirk served as a Governor of the National Association of Securities Dealers, Inc. (1996-2002), a member and Vice Chairman of the Public Oversight Board of the American Institute of Certified Public Accountants' SEC Practice Section (1995-2002), a Director of General Re Corporation (reinsurance, 1987-1998) and as a Director of Valuation Research Corp. (appraisals and valuations). |
Marie L. Knowles (57) |
| Year of Election or Appointment: 2001 Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. She currently serves as a Director of Phelps Dodge Corporation (copper mining and manufacturing), URS Corporation (multidisciplinary engineering, 1999), and McKesson Corporation (healthcare service, 2002). Ms. Knowles is a Trustee of the Brookings Institution and the Catalina Island Conservancy and also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California. |
Ned C. Lautenbach (59) |
| Year of Election or Appointment: 2000 Mr. Lautenbach has been a partner of Clayton, Dubilier & Rice, Inc. (private equity investment firm) since September 1998. Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. He was most recently Senior Vice President and Group Executive of Worldwide Sales and Services. From 1993 to 1995, he was Chairman of IBM World Trade Corporation, and from 1994 to 1998 was a member of IBM's Corporate Executive Committee. Mr. Lautenbach serves as Chairman and as a Director (1998) of Acterna Corporation (communications test equipment). He is also Co-Chairman of Covansys, Inc. (global provider of business and technology solutions, 2000). In addition, he is a Director of Eaton Corporation (diversified industrial) and the Philharmonic Center for the Arts in Naples, Florida (1999). He also is a member of the Council on Foreign Relations. |
Marvin L. Mann (70) |
| Year of Election or Appointment: 1993 Mr. Mann is Chairman of the non-interested Trustees (2001). He is Chairman Emeritus of Lexmark International, Inc. (computer peripherals) where he served as CEO until April 1998 and retired as Chairman May 1999, and remains a member of the Board. Prior to 1991, he held the positions of Vice President of International Business Machines Corporation (IBM) and President and General Manager of various IBM divisions and subsidiaries. Mr. Mann is a Board member of Imation Corp. (imaging and information storage) and Acterna Corporation (communications test equipment, 1999). He is also a member of the Director Services Committee of the Investment Company Institute. In addition, Mr. Mann is a member of the President's Cabinet at the University of Alabama and the Board of Visitors of the Culverhouse College of Commerce and Business Administration at the University of Alabama. |
William O. McCoy (70) |
| Year of Election or Appointment: 1997 Prior to his retirement in December 1994, Mr. McCoy was Vice Chairman of the Board of BellSouth Corporation (telecommunications) and President of BellSouth Enterprises. He is currently a Director of Liberty Corporation (holding company), Duke Realty Corporation (real estate), Progress Energy, Inc. (electric utility), and Acterna Corporation (communications test equipment, 1999). He is also a partner of Franklin Street Partners (private investment management firm) and a member of the Research Triangle Foundation Board. In addition, Mr. McCoy served as the Interim Chancellor (1999-2000) and a member of the Board of Visitors (1994-1998) for the University of North Carolina at Chapel Hill and currently serves on the Board of Directors of the University of North Carolina Health Care System and the Board of Visitors of the Kenan-Flagler Business School (University of North Carolina at Chapel Hill). He also served as Vice President of Finance for the University of North Carolina (16-school system, 1995-1998). |
William S. Stavropoulos (64) |
| Year of Election or Appointment: 2002 Mr. Stavropoulos is Chairman of the Board, President and CEO (2002), and Chairman of the Executive Committee (2000) and a Director of The Dow Chemical Company. Since joining The Dow Chemical Company in 1967, Mr. Stavropoulos served in numerous senior management positions, including President (1993-2000) and Chief Executive Officer (1995-2000). Currently, he is a Director of NCR Corporation (data warehousing and technology solutions), BellSouth Corporation (telecommunications), Chemical Financial Corporation, and Maersk Inc. (industrial conglomerate, 2002). He also serves as a member of the Board of Trustees of the American Enterprise Institute for Public Policy Research. In addition, Mr. Stavropoulos is a member of The Business Council, J.P. Morgan International Council, World Business Council for Sustainable Development, and the University of Notre Dame Advisory Council for the College of Science. |
Annual Report
Trustees and Officers - continued
Advisory Board Members and Executive Officers:
Correspondence intended for Ms. Small may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for each executive officer and Mr. Lynch may be sent to 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation |
Peter S. Lynch (60) |
| Year of Election or Appointment: 2003 Member of the Advisory Board of Securities Fund. Vice Chairman and a Director of FMR, and Vice Chairman (2001) and a Director (2000) of FMR Co., Inc. Previously, Mr. Lynch served as a Trustee of the Fidelity funds (1990-2003). Prior to May 31, 1990, he was a Director of FMR and Executive Vice President of FMR (a position he held until March 31, 1991), Vice President of Fidelity® Magellan® Fund and FMR Growth Group Leader, and Managing Director of FMR Corp. Mr. Lynch was also Vice President of Fidelity Investments Corporate Services. In addition, he serves as a Trustee of Boston College, Massachusetts Eye & Ear Infirmary, Historic Deerfield, John F. Kennedy Library, and the Museum of Fine Arts of Boston. |
Cornelia M. Small (59) |
| Year of Election or Appointment: 2004 Member of the Advisory Board of Fidelity Securities Fund. Ms. Small is a member (2000) and Chairperson (2002) of the Investment Committee, and a member (2002) of the Board of Trustees of Smith College. Previously, she served as Chief Investment Officer (1999-2000), Director of Global Equity Investments (1996-1999), and a member of the Board of Directors (1998-1999) of Scudder Kemper Investments. In addition, Ms. Small served as Co-Chair (2000-2003) of the Annual Fund for the Fletcher School of Law and Diplomacy. |
John B. McDowell (45) |
| Year of Election or Appointment: 2002 Vice President of Advisor Aggressive Growth. Mr. McDowell also serves as Vice President of certain Equity Funds (2002). He is Senior Vice President of FMR (1999), FMR Co., Inc. (2001), and Fidelity Management Trust Company (FMTC). Since joining Fidelity Investments in 1985, Mr. McDowell has worked as a research analyst and manager. |
Rajiv Kaul (32) |
| Year of Election or Appointment: 2003 Vice President of Advisor Aggressive Growth. Mr. Kaul is also Vice President of other funds advised by FMR. Prior to assuming his current responsibilities, Mr. Kaul managed a variety of Fidelity funds. |
Eric D. Roiter (55) |
| Year of Election or Appointment: 2000 Secretary of Advisor Aggressive Growth. He also serves as Secretary of other Fidelity funds (1998); Vice President, General Counsel, and Clerk of FMR Co., Inc. (2001) and FMR (1998); Vice President and Clerk of FDC (1998); Assistant Clerk of Fidelity Management & Research (U.K.) Inc. (2001) and Fidelity Management & Research (Far East) Inc. (2001); and Assistant Secretary of Fidelity Investments Money Management Inc. (2001). Prior to joining Fidelity, Mr. Roiter was with the law firm of Debevoise & Plimpton, as an associate (1981-1984) and as a partner (1985-1997), and served as an Assistant General Counsel of the U.S. Securities and Exchange Commission (1979-1981). Mr. Roiter is an Adjunct Member, Faculty of Law, at Boston College Law School (2003). |
Stuart Fross (44) |
| Year of Election or Appointment: 2003 Assistant Secretary of Advisor Aggressive Growth. Mr. Fross also serves as Assistant Secretary of other Fidelity funds (2003) and is an employee of FMR. |
Maria F. Dwyer (44) |
| Year of Election or Appointment: 2002 President and Treasurer of Advisor Aggressive Growth. Ms. Dwyer also serves as President and Treasurer of other Fidelity funds (2002) and is a Vice President (1999) and an employee (1996) of FMR. |
Timothy F. Hayes (52) |
| Year of Election or Appointment: 2002 Chief Financial Officer of Advisor Aggressive Growth. Mr. Hayes also serves as Chief Financial Officer of other Fidelity funds (2002). Recently he was appointed President of Fidelity Service Company (2003) where he also serves as a Director. Mr. Hayes also serves as President of Fidelity Investments Operations Group (FIOG, 2002), which includes Fidelity Pricing and Cash Management Services Group (FPCMS), where he was appointed President in 1998. Previously, Mr. Hayes served as Chief Financial Officer of Fidelity Investments Corporate Systems and Service Group (1998) and Fidelity Systems Company (1997-1998). |
John R. Hebble (45) |
| Year of Election or Appointment: 2003 Deputy Treasurer of Advisor Aggressive Growth. Mr. Hebble also serves as Deputy Treasurer of other Fidelity funds (2003), and is an employee of FMR. Before joining Fidelity Investments, Mr. Hebble worked at Deutsche Asset Management where he served as Director of Fund Accounting (2002-2003) and Assistant Treasurer of the Scudder Funds (1998-2003). |
John H. Costello (57) |
| Year of Election or Appointment: 2000 Assistant Treasurer of Advisor Aggressive Growth. Mr. Costello also serves as Assistant Treasurer of other Fidelity funds and is an employee of FMR. |
Francis V. Knox, Jr. (56) |
| Year of Election or Appointment: 2002 Assistant Treasurer of Advisor Aggressive Growth. Mr. Knox also serves as Assistant Treasurer of other Fidelity funds (2002), and is a Vice President and an employee of FMR. Previously, Mr. Knox served as Vice President of Investment & Advisor Compliance (1990-2001), and Compliance Officer of Fidelity Management & Research (U.K.) Inc. (1992-2002), Fidelity Management & Research (Far East) Inc. (1991-2002), and FMR Corp. (1995-2002). |
Mark Osterheld (48) |
| Year of Election or Appointment: 2002 Assistant Treasurer of Advisor Aggressive Growth. Mr. Osterheld also serves as Assistant Treasurer of other Fidelity funds (2002) and is an employee of FMR. |
Thomas J. Simpson (45) |
| Year of Election or Appointment: 2000 Assistant Treasurer of Advisor Aggressive Growth. Mr. Simpson is Assistant Treasurer of other Fidelity funds (2000) and an employee of FMR (1996). Prior to joining FMR, Mr. Simpson was Vice President and Fund Controller of Liberty Investment Services (1987-1995). |
Annual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Far East) Inc.
Fidelity International Investment Advisors
Fidelity Investments Japan Limited
Fidelity International Investment Advisors (U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Shareholder
Servicing Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Custodian
State Street Bank and Trust Company
Quincy, MA
AAGI-UANN-0104
1.786670.100
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
Item 2. Code of Ethics
As of the end of the period, November 30, 2003, the Fidelity Securities Fund 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 Fidelity Securities Fund has determined that Marie L. Knowles and Donald J. Kirk are each audit committee financial experts, as defined in Item 3 of Form N-CSR. Ms. Knowles and Mr. Kirk are each independent for purposes of Item 3 of Form N-CSR.
Item 4. Principal Accountant Fees and Services
Not applicable.
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. Reserved
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8. Reserved
Item 9. Submission of Matters to a Vote of Security Holders
Not applicable.
Item 10. Controls and Procedures
(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the Fidelity Securities Fund's (the "Trust") disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) provide reasonable assurances that material information relating to the Trust is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.
(a)(ii) There was no change in the Trust's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the Trust's second fiscal half-year that has materially affected, or is reasonably likely to materially affect, the Trust's internal control over financial reporting.
Item 11. Exhibits
(a) | (1) | 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. |
(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 Securities Fund
By: | /s/Maria Dwyer |
| Maria Dwyer |
| President and Treasurer |
| |
Date: | January 21, 2004 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/Maria Dwyer |
| Maria Dwyer |
| President and Treasurer |
| |
Date: | January 21, 2004 |
By: | /s/Timothy F. Hayes |
| Timothy F. Hayes |
| Chief Financial Officer |
| |
Date: | January 21, 2004 |
