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: | July 31 |
Date of reporting period: | January 31, 2004 |
Item 1. Reports to Stockholders
Fidelity®
OTC
Portfolio
Semiannual Report
January 31, 2004
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | Ned Johnson's message to shareholders. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, | |
Notes | Notes to the financial statements. |
For a free copy of the fund's proxy voting guidelines visit www.fidelity.com/goto/proxyguidelines, call 1-800-544-8544, or visit the Securities and Exchange Commission (SEC)'s web site at www.sec.gov.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR Corp. or an affiliated company.
(Recycle graphic) This report is printed on recycled paper using soy-based inks.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
Mutual fund shares are not deposits or obligations of, or guaranteed by, any depository institution. Shares are not insured by the FDIC, the Federal Reserve Board or any other agency, and are subject to investment risks, including the possible loss of principal amount invested.
Neither the fund nor Fidelity Distributors Corporation is a bank.
For more information on any Fidelity fund, including charges and expenses, call 1-800-544-6666 for a free prospectus. Read it carefully before you invest or send money.
Semiannual 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
Semiannual Report
Investment Changes
Top Ten Stocks as of January 31, 2004 | ||
% of fund's | % of fund's net assets | |
Microsoft Corp. | 10.1 | 12.3 |
Dell, Inc. | 4.2 | 2.4 |
Fifth Third Bancorp | 2.6 | 3.5 |
Samsung Electronics Co. Ltd. | 2.1 | 1.8 |
Nextel Communications, Inc. Class A | 2.1 | 1.7 |
Intel Corp. | 1.9 | 0.0 |
Telefonaktiebolaget LM Ericsson ADR | 1.6 | 1.0 |
Sun Microsystems, Inc. | 1.4 | 0.3 |
Alcatel SA sponsored ADR | 1.4 | 0.9 |
Yahoo!, Inc. | 1.3 | 0.8 |
28.7 | ||
Top Five Market Sectors as of January 31, 2004 | ||
% of fund's | % of fund's net assets | |
Information Technology | 54.7 | 45.2 |
Consumer Discretionary | 13.9 | 19.2 |
Health Care | 10.1 | 14.7 |
Industrials | 7.5 | 6.9 |
Financials | 5.6 | 6.7 |
Asset Allocation (% of fund's net assets) | |||||||
As of January 31, 2004 * | As of July 31, 2003 ** | ||||||
![]() | Stocks 100.0% | ![]() | Stocks 99.2% | ||||
![]() | Short-Term | ![]() | Short-Term | ||||
* Foreign | 13.2% | ** Foreign | 10.2% |
Semiannual Report
Investments January 31, 2004 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 100.0% | |||
Shares | Value (Note 1) | ||
CONSUMER DISCRETIONARY - 13.9% | |||
Auto Components - 0.3% | |||
Gentex Corp. | 198,048 | $ 8,661 | |
Keystone Automotive Industries, Inc. (a) | 507,800 | 14,604 | |
23,265 | |||
Hotels, Restaurants & Leisure - 0.7% | |||
Applebee's International, Inc. | 833,092 | 31,757 | |
Panera Bread Co. Class A (a) | 644,100 | 26,247 | |
58,004 | |||
Household Durables - 0.1% | |||
Garmin Ltd. | 138,507 | 7,360 | |
Internet & Catalog Retail - 2.6% | |||
Amazon.com, Inc. (a) | 854,400 | 43,130 | |
Drugstore.com, Inc. (a) | 1,625,500 | 11,037 | |
eBay, Inc. (a) | 1,465,700 | 98,246 | |
eDiets.com, Inc. Class A (a) | 630,700 | 4,573 | |
InterActiveCorp (a) | 1,795,600 | 58,177 | |
215,163 | |||
Leisure Equipment & Products - 0.3% | |||
SCP Pool Corp. (a) | 708,600 | 22,711 | |
Media - 5.2% | |||
Clear Channel Communications, Inc. | 1,003,328 | 45,140 | |
Cumulus Media, Inc. Class A (a) | 1,600,500 | 32,714 | |
EchoStar Communications Corp. Class A (a) | 1,556,971 | 56,829 | |
Emmis Communications Corp. Class A (a) | 508,400 | 13,203 | |
Gemstar-TV Guide International, Inc. (a) | 3,696,000 | 21,622 | |
Hughes Electronics Corp. (a) | 1,045,237 | 17,497 | |
Lamar Advertising Co. Class A (a) | 1,330,700 | 51,205 | |
Liberty Media Corp. Class A (a) | 1,936,800 | 22,544 | |
NTL, Inc. (a) | 1,055,143 | 69,998 | |
Pixar (a) | 247,200 | 16,439 | |
Radio One, Inc. Class D (non-vtg.) (a) | 416,000 | 7,667 | |
Sirius Satellite Radio, Inc. (a) | 8,328,800 | 22,654 | |
Sogecable SA (a) | 302,800 | 13,011 | |
XM Satellite Radio Holdings, Inc. Class A (a) | 1,777,800 | 41,956 | |
432,479 | |||
Multiline Retail - 0.2% | |||
Dollar Tree Stores, Inc. (a) | 463,300 | 14,830 | |
Specialty Retail - 4.5% | |||
AC Moore Arts & Crafts, Inc. (a) | 164,500 | 3,700 | |
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
CONSUMER DISCRETIONARY - continued | |||
Specialty Retail - continued | |||
American Eagle Outfitters, Inc. (a) | 480,000 | $ 8,928 | |
bebe Stores, Inc. (a) | 232,732 | 6,312 | |
Big 5 Sporting Goods Corp. (a) | 359,000 | 8,824 | |
Guitar Center, Inc. (a) | 506,000 | 17,386 | |
Hollywood Entertainment Corp. (a)(c) | 3,232,900 | 38,956 | |
Hot Topic, Inc. (a) | 1,935,300 | 58,969 | |
Movie Gallery, Inc. | 841,850 | 16,888 | |
O'Reilly Automotive, Inc. (a) | 208,600 | 8,025 | |
PETCO Animal Supplies, Inc. (a) | 604,800 | 19,178 | |
PETsMART, Inc. | 874,200 | 20,517 | |
Regis Corp. | 590,600 | 25,514 | |
Rent-A-Center, Inc. (a) | 541,300 | 16,872 | |
Ross Stores, Inc. | 1,882,300 | 52,610 | |
Select Comfort Corp. (a) | 639,500 | 14,888 | |
Staples, Inc. (a) | 1,102,300 | 29,332 | |
Steiner Leisure Ltd. (a) | 440,800 | 7,498 | |
West Marine, Inc. (a) | 579,700 | 15,948 | |
Wet Seal, Inc. Class A (a) | 913,800 | 8,005 | |
378,350 | |||
TOTAL CONSUMER DISCRETIONARY | 1,152,162 | ||
CONSUMER STAPLES - 1.2% | |||
Food & Staples Retailing - 0.7% | |||
Performance Food Group Co. (a) | 977,350 | 30,630 | |
Whole Foods Market, Inc. | 363,580 | 24,531 | |
55,161 | |||
Food Products - 0.3% | |||
Central Garden & Pet Co. Class A (a) | 589,575 | 19,969 | |
SunOpta, Inc. (a) | 834,600 | 7,998 | |
27,967 | |||
Personal Products - 0.2% | |||
NBTY, Inc. (a) | 581,500 | 19,062 | |
TOTAL CONSUMER STAPLES | 102,190 | ||
ENERGY - 1.7% | |||
Energy Equipment & Services - 1.4% | |||
Cal Dive International, Inc. (a) | 593,200 | 13,632 | |
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
ENERGY - continued | |||
Energy Equipment & Services - continued | |||
Patterson-UTI Energy, Inc. (a) | 2,876,800 | $ 99,480 | |
W-H Energy Services, Inc. (a) | 343,800 | 5,442 | |
118,554 | |||
Oil & Gas - 0.3% | |||
Golar LNG Ltd. (Nasdaq) (a) | 723,100 | 11,332 | |
Valero Energy Corp. | 173,300 | 9,171 | |
20,503 | |||
TOTAL ENERGY | 139,057 | ||
FINANCIALS - 5.6% | |||
Capital Markets - 0.8% | |||
Ameritrade Holding Corp. (a) | 1,270,700 | 20,141 | |
E*TRADE Group, Inc. (a) | 981,100 | 13,726 | |
Investors Financial Services Corp. | 872,879 | 36,172 | |
70,039 | |||
Commercial Banks - 4.3% | |||
Fifth Third Bancorp | 3,715,100 | 214,696 | |
Silicon Valley Bancshares (a) | 624,000 | 21,578 | |
SouthTrust Corp. | 918,300 | 31,213 | |
Sumitomo Mitsui Financial Group, Inc. | 8,243 | 44,422 | |
Texas Regional Bancshares, Inc. Class A | 217,500 | 8,361 | |
UCBH Holdings, Inc. | 353,400 | 14,087 | |
Zions Bancorp | 446,100 | 26,159 | |
360,516 | |||
Insurance - 0.2% | |||
Cincinnati Financial Corp. | 346,000 | 14,989 | |
Thrifts & Mortgage Finance - 0.3% | |||
NetBank, Inc. | 741,800 | 8,457 | |
New York Community Bancorp, Inc. | 318,600 | 13,142 | |
21,599 | |||
TOTAL FINANCIALS | 467,143 | ||
HEALTH CARE - 10.1% | |||
Biotechnology - 3.3% | |||
Alkermes, Inc. (a) | 704,800 | 10,558 | |
Amgen, Inc. (a) | 830,607 | 53,566 | |
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
HEALTH CARE - continued | |||
Biotechnology - continued | |||
Cephalon, Inc. (a) | 726,400 | $ 39,821 | |
Dendreon Corp. (a) | 828,800 | 11,603 | |
Exact Sciences Corp. (a) | 188,300 | 1,486 | |
Genentech, Inc. (a) | 565,400 | 53,996 | |
Gilead Sciences, Inc. (a) | 214,500 | 11,770 | |
IDEXX Laboratories, Inc. (a) | 235,000 | 11,522 | |
ImmunoGen, Inc. (a) | 276,800 | 1,843 | |
Invitrogen Corp. (a) | 600,500 | 46,239 | |
MedImmune, Inc. (a) | 582,100 | 13,679 | |
Millennium Pharmaceuticals, Inc. (a) | 735,100 | 12,967 | |
Seattle Genetics, Inc. (a) | 551,300 | 5,695 | |
Serologicals Corp. (a) | 164,600 | 2,639 | |
277,384 | |||
Health Care Equipment & Supplies - 2.3% | |||
Advanced Neuromodulation Systems, Inc. (a) | 177,750 | 7,855 | |
American Medical Systems Holdings, Inc. (a) | 905,700 | 25,178 | |
Biomet, Inc. | 1,149,838 | 44,453 | |
Cooper Companies, Inc. | 288,300 | 13,954 | |
DENTSPLY International, Inc. | 651,350 | 27,357 | |
Epix Medical, Inc. (a) | 695,841 | 13,012 | |
Nektar Therapeutics (a) | 461,900 | 7,889 | |
PolyMedica Corp. | 308,400 | 8,173 | |
Respironics, Inc. (a) | 914,600 | 45,035 | |
192,906 | |||
Health Care Providers & Services - 3.2% | |||
Accredo Health, Inc. (a) | 409,200 | 13,872 | |
AdvancePCS Class A (a) | 236,000 | 13,473 | |
Cerner Corp. (a) | 474,300 | 18,593 | |
Express Scripts, Inc. (a) | 581,600 | 40,229 | |
HealthSouth Corp. (a) | 2,397,900 | 12,061 | |
Henry Schein, Inc. (a) | 351,300 | 24,640 | |
Humana, Inc. (a) | 677,100 | 15,797 | |
IMPATH, Inc. (a) | 438,900 | 2,590 | |
Lincare Holdings, Inc. (a) | 264,500 | 8,512 | |
Mariner Health Care, Inc. (a) | 236,100 | 5,017 | |
Patterson Dental Co. (a) | 511,900 | 33,760 | |
Sun Healthcare Group, Inc. (a) | 177,500 | 2,531 | |
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
HEALTH CARE - continued | |||
Health Care Providers & Services - continued | |||
Tenet Healthcare Corp. (a) | 1,297,300 | $ 16,087 | |
WebMD Corp. (a) | 5,978,200 | 53,804 | |
260,966 | |||
Pharmaceuticals - 1.3% | |||
Forest Laboratories, Inc. (a) | 276,200 | 20,574 | |
Johnson & Johnson | 301,100 | 16,085 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 1,141,200 | 71,428 | |
108,087 | |||
TOTAL HEALTH CARE | 839,343 | ||
INDUSTRIALS - 7.5% | |||
Aerospace & Defense - 0.2% | |||
Bombardier, Inc. Class B (sub. vtg.) | 1,968,400 | 8,897 | |
Honeywell International, Inc. | 238,900 | 8,629 | |
17,526 | |||
Air Freight & Logistics - 0.5% | |||
C.H. Robinson Worldwide, Inc. | 247,108 | 9,365 | |
CNF, Inc. | 248,200 | 7,928 | |
Expeditors International of Washington, Inc. | 556,120 | 20,804 | |
38,097 | |||
Airlines - 0.5% | |||
JetBlue Airways Corp. (a) | 1,494,756 | 33,976 | |
Ryanair Holdings PLC sponsored ADR (a) | 247,300 | 8,656 | |
42,632 | |||
Building Products - 0.1% | |||
Trex Co., Inc. (a) | 125,900 | 4,879 | |
Commercial Services & Supplies - 3.4% | |||
Apollo Group, Inc.: | |||
- University of Phoenix Online (a) | 197,700 | 15,454 | |
Class A (a) | 131,000 | 9,728 | |
Career Education Corp. (a) | 351,000 | 17,676 | |
Cintas Corp. | 893,400 | 40,337 | |
Corinthian Colleges, Inc. (a) | 619,000 | 38,558 | |
Education Management Corp. (a) | 373,000 | 12,522 | |
Herman Miller, Inc. | 1,215,100 | 29,333 | |
Monster Worldwide, Inc. (a) | 325,100 | 7,958 | |
Stericycle, Inc. (a) | 300,800 | 13,295 | |
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
INDUSTRIALS - continued | |||
Commercial Services & Supplies - continued | |||
Strayer Education, Inc. | 534,700 | $ 60,368 | |
Sylvan Learning Systems, Inc. (a) | 651,400 | 19,679 | |
Waste Management, Inc. | 663,800 | 18,427 | |
283,335 | |||
Construction & Engineering - 0.2% | |||
Chicago Bridge & Iron Co. NV | 107,300 | 3,279 | |
Washington Group International, Inc. (a) | 222,300 | 8,265 | |
11,544 | |||
Electrical Equipment - 0.1% | |||
A.O. Smith Corp. | 262,600 | 8,196 | |
Industrial Conglomerates - 0.5% | |||
Siemens AG sponsored ADR | 288,200 | 23,454 | |
Tyco International Ltd. | 744,700 | 19,921 | |
43,375 | |||
Machinery - 0.3% | |||
PACCAR, Inc. | 245,100 | 19,272 | |
Timken Co. | 399,500 | 8,809 | |
28,081 | |||
Road & Rail - 1.4% | |||
Arkansas Best Corp. (c) | 1,459,408 | 41,345 | |
Heartland Express, Inc. | 367,200 | 8,020 | |
Laidlaw International, Inc. (a) | 1,049,600 | 15,047 | |
Landstar System, Inc. (a) | 499,400 | 18,083 | |
USF Corp. | 821,300 | 28,105 | |
Yellow Roadway Corp. (a) | 229,000 | 7,202 | |
117,802 | |||
Trading Companies & Distributors - 0.3% | |||
Fastenal Co. | 467,000 | 22,453 | |
MSC Industrial Direct Co., Inc. Class A | 146,400 | 4,136 | |
26,589 | |||
TOTAL INDUSTRIALS | 622,056 | ||
INFORMATION TECHNOLOGY - 54.7% | |||
Communications Equipment - 7.7% | |||
ADC Telecommunications, Inc. (a) | 7,707,600 | 26,977 | |
Adtran, Inc. | 192,100 | 6,612 | |
Alcatel SA sponsored ADR (a) | 6,893,200 | 115,461 | |
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
INFORMATION TECHNOLOGY - continued | |||
Communications Equipment - continued | |||
Alvarion Ltd. (a) | 609,500 | $ 8,399 | |
Arris Group, Inc. (a) | 93,200 | 857 | |
Avaya, Inc. (a) | 1,595,200 | 27,725 | |
Avocent Corp. (a) | 394,900 | 14,438 | |
CIENA Corp. (a) | 4,127,100 | 29,921 | |
Comverse Technology, Inc. (a) | 3,551,700 | 62,510 | |
Corvis Corp. (a) | 5,523,500 | 13,312 | |
Enterasys Networks, Inc. (a) | 5,130,000 | 21,803 | |
JDS Uniphase Corp. (a) | 1,783,100 | 9,094 | |
Juniper Networks, Inc. (a) | 439,500 | 12,697 | |
Marconi Corp. PLC (a) | 2,115,204 | 25,350 | |
McDATA Corp. Class A (a) | 1,333,000 | 11,717 | |
Motorola, Inc. | 4,809,230 | 79,737 | |
Powerwave Technologies, Inc. (a) | 1,141,599 | 11,245 | |
Redback Networks, Inc. (a) | 1,944,500 | 16,839 | |
SeaChange International, Inc. (a) | 406,100 | 8,203 | |
Telefonaktiebolaget LM Ericsson ADR (a) | 5,889,300 | 135,454 | |
638,351 | |||
Computers & Peripherals - 9.4% | |||
Apple Computer, Inc. (a) | 1,834,200 | 41,380 | |
Avid Technology, Inc. (a) | 182,700 | 8,651 | |
Concurrent Computer Corp. (a) | 1,665,700 | 8,029 | |
Dell, Inc. (a) | 10,326,300 | 345,621 | |
Diebold, Inc. | 200,000 | 10,478 | |
Electronics for Imaging, Inc. (a) | 1,669,599 | 44,695 | |
Hutchinson Technology, Inc. (a) | 320,987 | 9,479 | |
Komag, Inc. (a) | 398,600 | 7,721 | |
Maxtor Corp. (a) | 2,088,800 | 19,321 | |
PalmOne, Inc. (a) | 682,700 | 7,032 | |
SanDisk Corp. (a) | 132,800 | 7,230 | |
Seagate Technology | 5,536,600 | 90,247 | |
Sun Microsystems, Inc. (a) | 22,411,645 | 119,006 | |
Synaptics, Inc. (a) | 841,600 | 15,847 | |
Western Digital Corp. (a) | 4,459,000 | 45,616 | |
780,353 | |||
Electronic Equipment & Instruments - 4.3% | |||
Agilysys, Inc. | 400,000 | 5,292 | |
AU Optronics Corp. sponsored ADR | 1,259,300 | 19,015 | |
AVX Corp. | 459,100 | 7,993 | |
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
INFORMATION TECHNOLOGY - continued | |||
Electronic Equipment & Instruments - continued | |||
CDW Corp. | 315,400 | $ 21,428 | |
Celestica, Inc. (sub. vtg.) (a) | 2,089,700 | 35,872 | |
DDi Corp. (a) | 461,100 | 8,300 | |
Electro Scientific Industries, Inc. (a) | 297,000 | 7,633 | |
Flextronics International Ltd. (a) | 4,394,500 | 83,496 | |
Hon Hai Precision Industries Co. Ltd. | 4,012,000 | 18,674 | |
Ingram Micro, Inc. Class A (a) | 855,200 | 14,282 | |
Nano-Proprietary, Inc. (a) | 2,376,500 | 6,654 | |
National Instruments Corp. | 163,800 | 8,070 | |
Sanmina-SCI Corp. (a) | 3,502,200 | 45,914 | |
Solectron Corp. (a) | 5,200,000 | 36,920 | |
Tech Data Corp. (a) | 265,400 | 11,011 | |
TTM Technologies, Inc. (a) | 475,000 | 8,313 | |
Veeco Instruments, Inc. (a) | 366,600 | 11,035 | |
349,902 | |||
Internet Software & Services - 2.4% | |||
24/7 Real Media, Inc. (a) | 2,132,200 | 4,158 | |
Ariba, Inc. (a) | 2,633,293 | 8,558 | |
Homestore, Inc. (a) | 1,802,300 | 7,786 | |
j2 Global Communications, Inc. (a) | 306,000 | 7,044 | |
MatrixOne, Inc. (a) | 606,943 | 4,121 | |
Open Text Corp. (a) | 677,200 | 17,271 | |
SonicWALL, Inc. (a) | 531,400 | 4,974 | |
VeriSign, Inc. (a) | 1,237,300 | 21,628 | |
Vignette Corp. (a) | 3,103,200 | 7,386 | |
Websense, Inc. (a) | 268,800 | 8,844 | |
Yahoo!, Inc. (a) | 2,244,708 | 105,165 | |
196,935 | |||
IT Services - 2.1% | |||
Anteon International Corp. (a) | 508,970 | 14,806 | |
Cognizant Technology Solutions Corp. Class A (a) | 1,449,800 | 78,333 | |
CSG Systems International, Inc. (a) | 500,000 | 7,165 | |
Fiserv, Inc. (a) | 538,700 | 20,126 | |
InterCept, Inc. (a) | 831,346 | 10,026 | |
ManTech International Corp. Class A (a) | 87,800 | 1,879 | |
Syntel, Inc. | 670,000 | 19,350 | |
The BISYS Group, Inc. (a) | 1,172,100 | 21,098 | |
172,783 | |||
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
INFORMATION TECHNOLOGY - continued | |||
Semiconductors & Semiconductor Equipment - 11.9% | |||
Advanced Micro Devices, Inc. (a) | 600,000 | $ 8,916 | |
Agere Systems, Inc.: | |||
Class A (a) | 9,994,000 | 38,477 | |
Class B (a) | 2,603,400 | 9,502 | |
Analog Devices, Inc. | 300,000 | 14,355 | |
Applied Materials, Inc. (a) | 3,102,400 | 67,508 | |
ASML Holding NV (NY Shares) (a) | 1,088,800 | 20,970 | |
Asyst Technologies, Inc. (a) | 470,200 | 7,203 | |
ATI Technologies, Inc. (a) | 1,332,500 | 21,637 | |
Atmel Corp. (a) | 1,286,800 | 9,085 | |
ATMI, Inc. (a) | 1,341,111 | 35,566 | |
ChipPAC, Inc. Class A (a) | 1,606,600 | 11,776 | |
Conexant Systems, Inc. (a) | 3,043,000 | 20,297 | |
Cree, Inc. (a) | 1,473,400 | 36,938 | |
Cymer, Inc. (a) | 428,881 | 18,875 | |
FEI Co. (a) | 694,500 | 17,418 | |
GlobespanVirata, Inc. (a) | 1,512,000 | 12,020 | |
Integrated Circuit Systems, Inc. (a) | 611,000 | 15,733 | |
Integrated Device Technology, Inc. (a) | 61,200 | 1,115 | |
Integrated Silicon Solution, Inc. (a) | 500,000 | 8,085 | |
Intel Corp. | 5,235,700 | 160,212 | |
International Rectifier Corp. (a) | 160,900 | 8,142 | |
Intersil Corp. Class A | 679,900 | 17,841 | |
KLA-Tencor Corp. (a) | 201,800 | 11,517 | |
Lam Research Corp. (a) | 262,400 | 7,019 | |
Linear Technology Corp. | 261,900 | 10,476 | |
Marvell Technology Group Ltd. (a) | 1,521,600 | 63,299 | |
Mindspeed Technologies, Inc. (a) | 1,853,033 | 17,956 | |
National Semiconductor Corp. (a) | 386,100 | 14,846 | |
NPTest Holding Corp. | 630,000 | 7,182 | |
NVIDIA Corp. (a) | 1,902,900 | 42,340 | |
Omnivision Technologies, Inc. (a) | 654,100 | 31,757 | |
PMC-Sierra, Inc. (a) | 821,800 | 18,006 | |
Samsung Electronics Co. Ltd. | 391,220 | 174,989 | |
Xilinx, Inc. (a) | 610,200 | 25,573 | |
986,631 | |||
Software - 16.9% | |||
Adobe Systems, Inc. | 869,200 | 33,429 | |
Amdocs Ltd. (a) | 1,293,600 | 36,699 | |
Autodesk, Inc. | 1,438,200 | 36,746 | |
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
INFORMATION TECHNOLOGY - continued | |||
Software - continued | |||
Barra, Inc. | 458,100 | $ 14,627 | |
BEA Systems, Inc. (a) | 2,900,143 | 36,629 | |
Concord Communications, Inc. (a) | 427,300 | 7,529 | |
Electronic Arts, Inc. (a) | 914,500 | 42,853 | |
Intuit, Inc. (a) | 511,100 | 25,770 | |
Jack Henry & Associates, Inc. | 540,009 | 9,861 | |
JDA Software Group, Inc. (a) | 503,900 | 7,831 | |
Kronos, Inc. (a) | 253,500 | 9,851 | |
Lawson Software, Inc. (a) | 924,400 | 9,041 | |
Microsoft Corp. | 30,164,700 | 834,043 | |
Novell, Inc. (a) | 1,482,000 | 18,821 | |
PalmSource, Inc. (a) | 148,024 | 2,738 | |
Parametric Technology Corp. (a) | 1,811,600 | 7,591 | |
PeopleSoft, Inc. (a) | 559,100 | 12,049 | |
Quest Software, Inc. (a) | 558,800 | 9,399 | |
Red Hat, Inc. (a) | 2,575,575 | 49,013 | |
Secure Computing Corp. (a) | 518,200 | 8,887 | |
Siebel Systems, Inc. (a) | 5,192,900 | 69,221 | |
Symantec Corp. (a) | 420,700 | 16,323 | |
Synopsys, Inc. (a) | 924,100 | 32,611 | |
Take-Two Interactive Software, Inc. (a) | 384,300 | 11,145 | |
TIBCO Software, Inc. (a) | 1,118,000 | 8,787 | |
VERITAS Software Corp. (a) | 1,258,100 | 41,341 | |
WatchGuard Technologies, Inc. (a) | 1,299,500 | 8,252 | |
1,401,087 | |||
TOTAL INFORMATION TECHNOLOGY | 4,526,042 | ||
MATERIALS - 0.4% | |||
Construction Materials - 0.1% | |||
Martin Marietta Materials, Inc. | 168,800 | 7,765 | |
Containers & Packaging - 0.2% | |||
Smurfit-Stone Container Corp. (a) | 727,300 | 12,539 | |
Metals & Mining - 0.1% | |||
Durban Roodepoort Deep Ltd. sponsored ADR (a) | 2,773,100 | 9,373 | |
TOTAL MATERIALS | 29,677 | ||
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
TELECOMMUNICATION SERVICES - 4.8% | |||
Diversified Telecommunication Services - 1.2% | |||
AboveNet, Inc. (a) | 22,500 | $ 1,153 | |
Qwest Communications International, Inc. (a) | 5,154,500 | 20,824 | |
Time Warner Telecom, Inc. Class A (a)(c) | 7,124,600 | 77,801 | |
99,778 | |||
Wireless Telecommunication Services - 3.6% | |||
Alamosa Holdings, Inc. (a) | 692,800 | 3,942 | |
American Tower Corp. Class A (a) | 1,718,200 | 18,883 | |
Nextel Communications, Inc. Class A (a) | 6,480,900 | 171,031 | |
Nextel Partners, Inc. Class A (a) | 1,056,900 | 13,666 | |
NII Holdings, Inc. Class B (a) | 395,800 | 37,692 | |
SBA Communications Corp. Class A (a) | 704,700 | 3,136 | |
Sprint Corp. - PCS Group Series 1 (a) | 5,660,600 | 46,021 | |
294,371 | |||
TOTAL TELECOMMUNICATION SERVICES | 394,149 | ||
UTILITIES - 0.1% | |||
Multi-Utilities & Unregulated Power - 0.1% | |||
Calpine Corp. (a) | 1,482,100 | 8,626 | |
TOTAL COMMON STOCKS (Cost $6,546,085) | 8,280,445 | ||
Money Market Funds - 2.8% | |||
Fidelity Cash Central Fund, 1.08% (b) | 15,255,041 | 15,255 | |
Fidelity Securities Lending Cash Central Fund, 1.08% (b) | 216,363,116 | 216,363 | |
TOTAL MONEY MARKET FUNDS (Cost $231,618) | 231,618 | ||
TOTAL INVESTMENT PORTFOLIO - 102.8% (Cost $6,777,703) | 8,512,063 | ||
NET OTHER ASSETS - (2.8)% | (233,298) | ||
NET ASSETS - 100% | $ 8,278,765 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request. |
(c) Affiliated company |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: |
United States of America | 86.8% |
Korea (South) | 2.1% |
Sweden | 1.6% |
France | 1.4% |
Cayman Islands | 1.2% |
Canada | 1.1% |
Singapore | 1.0% |
Israel | 1.0% |
Bermuda | 1.0% |
Others (individually less than 1%) | 2.8% |
100.0% |
Purchases and sales of securities, other than short-term securities, aggregated $2,697,506,000 and $2,723,056,000, respectively. |
The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $589,000 for the period. |
The fund participated in the interfund lending program as a borrower. The average daily loan balance during the period for which loans were outstanding amounted to $15,736,000. The weighted average interest rate was 1.12%. At period end there were no interfund loans outstanding. |
Income Tax Information |
At July 31, 2003, the fund had a capital loss carryforward of approximately $6,593,078,000 of which $5,343,183,000 and $1,249,895,000 will expire on July 31, 2010 and 2011, respectively. |
The fund intends to elect to defer to its fiscal year ending July 31, 2004 approximately $86,130,000 of losses recognized during the period November 1, 2002 to July 31, 2003. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amount) | January 31, 2004 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $210,541) (cost $6,777,703) - See accompanying schedule | $ 8,512,063 | |
Foreign currency held at value (cost $2) | 2 | |
Receivable for investments sold | 174,854 | |
Receivable for fund shares sold | 18,718 | |
Dividends receivable | 1,437 | |
Interest receivable | 32 | |
Prepaid expenses | 39 | |
Other receivables | 845 | |
Total assets | 8,707,990 | |
Liabilities | ||
Payable to custodian bank | $ 58 | |
Payable for investments purchased | 191,651 | |
Payable for fund shares redeemed | 14,274 | |
Accrued management fee | 4,966 | |
Other affiliated payables | 1,632 | |
Other payables and accrued expenses | 281 | |
Collateral on securities loaned, at value | 216,363 | |
Total liabilities | 429,225 | |
Net Assets | $ 8,278,765 | |
Net Assets consist of: | ||
Paid in capital | $ 12,562,641 | |
Accumulated net investment loss | (16,584) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (6,001,685) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 1,734,393 | |
Net Assets, for 246,006 shares outstanding | $ 8,278,765 | |
Net Asset Value, offering price and redemption price per share ($8,278,765 ÷ 246,006 shares) | $ 33.65 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
Amounts in thousands | Six months ended January 31, 2004 (Unaudited) | |
Investment Income | ||
Dividends (including $291 received from affiliated issuers) | $ 16,424 | |
Interest | 186 | |
Security lending | 904 | |
Total income | 17,514 | |
Expenses | ||
Management fee | $ 24,146 | |
Performance adjustment | 361 | |
Transfer agent fees | 9,295 | |
Accounting and security lending fees | 447 | |
Non-interested trustees' compensation | 23 | |
Appreciation in deferred trustee compensation account | 29 | |
Custodian fees and expenses | 172 | |
Registration fees | 109 | |
Audit | 38 | |
Legal | 42 | |
Interest | 3 | |
Miscellaneous | 31 | |
Total expenses before reductions | 34,696 | |
Expense reductions | (598) | 34,098 |
Net investment income (loss) | (16,584) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities (including realized gain (loss) of $(3,524) on sales of investments in affiliated issuers) | 705,498 | |
Foreign currency transactions | 21 | |
Total net realized gain (loss) | 705,519 | |
Change in net unrealized appreciation (depreciation) on: Investment securities | 618,542 | |
Assets and liabilities in foreign currencies | 32 | |
Total change in net unrealized appreciation (depreciation) | 618,574 | |
Net gain (loss) | 1,324,093 | |
Net increase (decrease) in net assets resulting from operations | $ 1,307,509 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
Amounts in thousands | Six months ended January 31, 2004 (Unaudited) | Year ended |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $ (16,584) | $ (42,788) |
Net realized gain (loss) | 705,519 | (470,173) |
Change in net unrealized appreciation (depreciation) | 618,574 | 1,696,093 |
Net increase (decrease) in net assets resulting | 1,307,509 | 1,183,132 |
Share transactions | 1,533,561 | 2,196,106 |
Cost of shares redeemed | (1,603,339) | (2,249,434) |
Net increase (decrease) in net assets resulting from share transactions | (69,778) | (53,328) |
Total increase (decrease) in net assets | 1,237,731 | 1,129,804 |
Net Assets | ||
Beginning of period | 7,041,034 | 5,911,230 |
End of period (including accumulated net investment loss of $16,584 and accumulated net investment loss of $0, respectively | $ 8,278,765 | $ 7,041,034 |
Other Information Shares | ||
Sold | 48,807 | 89,080 |
Redeemed | (51,323) | (92,491) |
Net increase (decrease) | (2,516) | (3,411) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights
Six months ended | Years ended July 31, | |||||
(Unaudited) | 2003 | 2002 | 2001 | 2000 | 1999 | |
Selected Per-Share Data | ||||||
Net asset value, beginning of period | $ 28.33 | $ 23.46 | $ 32.96 | $ 69.82 | $ 51.53 | $ 40.03 |
Income from Investment Operations | ||||||
Net investment income (loss) E | (.07) | (.17) | (.24) | (.18) | (.27) | (.07) |
Net realized and unrealized gain (loss) | 5.39 | 5.04 | (9.26) | (24.02) | 24.07 | 13.95 |
Total from invest-ment operations | 5.32 | 4.87 | (9.50) | (24.20) | 23.80 | 13.88 |
Distributions from net realized gain | - | - | - | (12.66) | (5.51) | (2.38) |
Net asset value, end | $ 33.65 | $ 28.33 | $ 23.46 | $ 32.96 | $ 69.82 | $ 51.53 |
Total Return B,C,D | 18.78% | 20.76% | (28.82)% | (42.79)% | 50.05% | 38.54% |
Ratios to Average Net Assets F | ||||||
Expenses before expense reductions | .90% A | 1.18% | 1.14% | .97% | .76% | .75% |
Expenses net of voluntary waivers, if any | .90% A | 1.18% | 1.14% | .97% | .76% | .75% |
Expenses net of all reductions | .89% A | 1.12% | 1.09% | .94% | .75% | .74% |
Net investment income (loss) | (.43)% A | (.71)% | (.81)% | (.40)% | (.43)% | (.16)% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $ 8,279 | $ 7,041 | $ 5,911 | $ 8,802 | $ 14,548 | $ 7,298 |
Portfolio turnover rate | 71% A | 116% | 120% | 219% | 196% | 117% |
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the former sales charges.
E Calculated based on average shares outstanding during the period.
F Expense ratios reflect operating expenses of the fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the fund during periods when reimbursements or reductions occur. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the fund.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended January 31, 2004 (Unaudited)
(Amounts in thousands except ratios)
1. Significant Accounting Policies.
Fidelity OTC Portfolio (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 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.
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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
1. Significant Accounting Policies - continued
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.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), non-interested Trustees must defer receipt of a portion of, and may elect to defer receipt of an additional portion of, their annual compensation. Deferred amounts are treated as though equivalent dollar amounts had been invested in shares of the fund or are invested in a cross-section of other Fidelity funds, and are marked-to-market. Deferred amounts remain in the fund until distributed in accordance with the Plan.
Income Tax Information and Distributions to Shareholders. Each year, the fund intends to qualify as a regulated investment company by distributing all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required in the accompanying financial statements. Foreign taxes are provided for based on the fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. Distributions are recorded on the ex-dividend date.
Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. 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 differences are primarily due to foreign currency transactions, net operating losses, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
Semiannual Report
1. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investments including unrealized appreciation (depreciation) as of period end was as follows:
Unrealized appreciation | $ 1,914,249 | | |
Unrealized depreciation | (200,294) | |
Net unrealized appreciation (depreciation) | 1,713,955 | |
Cost for federal income tax purposes | $ 6,798,108 |
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).
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.
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. In addition, the management fee is subject to a performance adjustment (up to a maximum of ±.20% of the fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the fund's relative investment performance as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .64% of the fund's average net assets.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
4. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, is the fund's transfer, dividend disbursing and shareholder servicing agent. FSC receives account fees and asset-based fees that vary according to account size and type of account. FSC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to an annualized rate of .24% of average net assets.
Accounting and Security Lending Fees. FSC maintains the fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Central Funds. The fund may invest in affiliated Central Funds managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR. The Central Funds are open-end investment companies available only to investment companies and other accounts managed by FMR and its affiliates. The Central Funds seek preservation of capital and current income and do not pay a management fee. Income distributions earned by the fund are recorded as income in the accompanying financial statements and totaled $185 for the period.
Brokerage Commissions. The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms are shown under the caption "Other Information" at the end of the fund's Schedule of Investments.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating funds. Information regarding the fund's participation in the program is included 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.
Semiannual Report
6. Security Lending.
The fund lends portfolio securities from time to time in order to earn additional income. The fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the fund and any additional required collateral is delivered to the fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Cash collateral is invested in cash equivalents. The value of loaned securities and cash collateral at period end are disclosed on the fund's Statement of Assets and Liabilities.
7. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the fund provided services to the fund in addition to trade execution. These services included payments of certain expenses on behalf of the fund totaling $570 for the period. In addition, through arrangements with the fund's custodian and transfer agent, credits realized as a result of uninvested cash balances were used to reduce the fund's expenses. During the period, these credits reduced the fund's custody and transfer agent expenses by $2 and $26, respectively.
8. Transactions with Affiliated Companies.
An affiliated company is a company in which the fund has ownership of at least 5% of the voting securities. Companies which are affiliates of the fund at period-end are noted in the fund's Schedule of Investments. Transactions during the period with companies which are or were affiliates are as follows:
Affiliate | Value, | Purchases | Sales | Dividend | Value, |
Arkansas Best Corp. | $ 33,733 | $ 6,741 | $ - | $ 214 | $ 41,345 |
Hollywood Entertainment Corp. | 57,420 | - | 2,607 | - | 38,956 |
InterCept, Inc. | 17,777 | - | 8,995 | - | 10,026 |
Strayer Education, Inc. | 57,355 | - | 14,943 | 77 | 60,368 |
Time Warner Telecom, Inc. Class A | 4,504 | - | 1,857 | - | 77,801 |
TOTALS | $ 170,789 | $ 6,741 | $ 28,402 | $ 291 | $ 228,496 |
Semiannual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone_graphic)
Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555
Press
1 For mutual fund and brokerage trading.
2 For quotes.*
3 For account balances and holdings.
4 To review orders and mutual
fund activity.
5 To change your PIN.
*0 To speak to a Fidelity representative.
By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
(computer_graphic)
Fidelity's Web Site
www.fidelity.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.
Semiannual Report
To Write Fidelity
We'll give your correspondence immediate attention and send you written confirmation upon completion of your request.
(letter_graphic)
Making Changes
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Fidelity Investments
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(letter_graphic)
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(letter_graphic)
For Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
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Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
Semiannual Report
To Visit Fidelity
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Los Angeles, CA
27101 Puerta Real
Mission Viejo, CA
73-575 El Paseo
Palm Desert, CA
251 University Avenue
Palo Alto, CA
1760 Challenge Way
Sacramento, CA
7676 Hazard Center Drive
San Diego, CA
8 Montgomery Street
San Francisco, CA
21701 Hawthorne Boulevard
Torrance, CA
2001 North Main Street
Walnut Creek, CA
6300 Canoga Avenue
Woodland Hills, CA
Colorado
1625 Broadway
Denver, CO
9185 East Westview Road
Littleton, CO
Connecticut
48 West Putnam Avenue
Greenwich, CT
265 Church Street
New Haven, CT
300 Atlantic Street
Stamford, CT
29 South Main Street
West Hartford, CT
Delaware
222 Delaware Avenue
Wilmington, DE
Florida
4400 N. Federal Highway
Boca Raton, FL
121 Alhambra Plaza
Coral Gables, FL
2948 N. Federal Highway
Ft. Lauderdale, FL
1907 West State Road 434
Longwood, FL
8880 Tamiami Trail, North
Naples, FL
3501 PGA Boulevard
West Palm Beach, FL
8065 Beneva Road
Sarasota, FL
1502 N. Westshore Blvd.
Tampa, FL
Georgia
3445 Peachtree Road, N.E.
Atlanta, GA
1000 Abernathy Road
Atlanta, GA
Illinois
One North LaSalle Street
Chicago, IL
1415 West 22nd Street
Oak Brook, IL
1700 East Golf Road
Schaumburg, IL
3232 Lake Avenue
Wilmette, IL
Indiana
4729 East 82nd Street
Indianapolis, IN
Kansas
5400 College Boulevard
Overland Park, KS
Maine
Three Canal Plaza
Portland, ME
Maryland
7401 Wisconsin Avenue
Bethesda, MD
One W. Pennsylvania Ave.
Towson, MD
Massachusetts
801 Boylston Street
Boston, MA
155 Congress Street
Boston, MA
300 Granite Street
Braintree, MA
44 Mall Road
Burlington, MA
405 Cochituate Road
Framingham, MA
416 Belmont Street
Worcester, MA
Fidelity Brokerage Services, Inc., 100 Summer St., Boston, MA 02110 Member NYSE/SIPC
Semiannual Report
Michigan
280 Old N. Woodward Ave.
Birmingham, MI
43420 Grand River Avenue
Novi, MI
29155 Northwestern Hwy.
Southfield, MI
Minnesota
7600 France Avenue South
Edina, MN
Missouri
8885 Ladue Road
Ladue, MO
New Jersey
150 Essex Street
Millburn, NJ
56 South Street
Morristown, NJ
501 Route 17, South
Paramus, NJ
3518 Route 1 North
Princeton, NJ
New York
1055 Franklin Avenue
Garden City, NY
37 West Jericho Turnpike
Huntington Station, NY
1271 Avenue of the Americas
New York, NY
61 Broadway
New York, NY
350 Park Avenue
New York, NY
North Carolina
4611 Sharon Road
Charlotte, NC
Ohio
3805 Edwards Road
Cincinnati, OH
28699 Chagrin Boulevard
Woodmere Village, OH
1324 Polaris Parkway
Columbus, OH
Oregon
16850 SW 72nd Avenue
Tigard, OR
Pennsylvania
600 West DeKalb Pike
King of Prussia, PA
1735 Market Street
Philadelphia, PA
12001 Perry Highway
Wexford, PA
Rhode Island
47 Providence Place
Providence, RI
Tennessee
6150 Poplar Avenue
Memphis, TN
Texas
10000 Research Boulevard
Austin, TX
4017 Northwest Parkway
Dallas, TX
12532 Memorial Drive
Houston, TX
2701 Drexel Drive
Houston, TX
400 East Las Colinas Blvd.
Irving, TX
14100 San Pedro
San Antonio, TX
19740 IH 45 North
Spring, TX
6005 West Park Boulevard
Plano, TX
Utah
215 South State Street
Salt Lake City, UT
Virginia
1861 International Drive
McLean, VA
Washington
411 108th Avenue, N.E.
Bellevue, WA
1518 6th Avenue
Seattle, WA
Washington, DC
1900 K Street, N.W.
Washington, DC
Wisconsin
595 North Barker Road
Brookfield, WI
Semiannual Report
Semiannual Report
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(Far East) Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Investments Japan Limited
Fidelity International Investments
Advisors
Fidelity International Investments
Advisors (U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Shareholder
Servicing Agent
Fidelity Service Company, Inc.
Boston, MA
Custodian
Brown Brothers Harriman & Co.
Boston, MA
Fidelity's Growth Funds
Aggressive Growth Fund
Blue Chip Growth Fund
Blue Chip Value Fund
Capital Appreciation Fund
Contrafund ®
Disciplined Equity Fund
Discovery Fund
Dividend Growth Fund
Export and Multinational Fund
Fidelity Fifty®
Fidelity Value Discovery Fund
Focused Stock Fund
Growth Company Fund
Independence Fund
Large Cap Stock Fund
Leveraged Company Stock Fund
Low-Priced Stock Fund
Magellan® Fund
Mid-Cap Stock Fund
New Millennium Fund®
OTC Portfolio
Small Cap Independence Fund
Small Cap Stock Fund
Stock Selector
Structured Large Cap Growth Fund
Structured Large Cap Value Fund
Structured Mid Cap Growth Fund
Structured Mid Cap Value Fund
Tax Managed Stock Fund
Trend Fund
Value Fund
The Fidelity Telephone Connection
Mutual Fund 24-Hour Service
Exchanges/Redemptions
and Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
Fidelity Automated Service
Telephone (FAST®) (automated graphic) 1-800-544-5555
(automated graphic) Automated line for quickest service
OTC-USAN-0304
1.789288.100
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
Item 2. Code of Ethics
Not applicable.
Item 3. Audit Committee Financial Expert
Not applicable.
Item 4. Principal Accountant Fees and Services
Not applicable.
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. 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
There were no material changes to the procedures by which shareholders may recommend nominees to Fidelity Securities Fund: Fidelity OTC Portfolio's Board of Trustees.
Item 10. Controls and Procedures
(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the Fidelity Securities Fund: Fidelity OTC Portfolio's (the "Fund") 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 Fund 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 Fund's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the Fund's last fiscal half-year that has materially affected, or is reasonably likely to materially affect, the Fund's internal control over financial reporting.
Item 11. Exhibits
(a) | (1) | Not applicable. |
(a) | (2) | Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT. |
(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/Christine Reynolds |
Christine Reynolds | |
President and Treasurer | |
Date: | March 26, 2004 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/Christine Reynolds |
Christine Reynolds | |
President and Treasurer | |
Date: | March 26, 2004 |
By: | /s/Timothy F. Hayes |
Timothy F. Hayes | |
Chief Financial Officer | |
Date: | March 26, 2004 |