FMR Corp.

founded: 1946

Contact Information:

headquarters: 82 devonshire street
boston, ma 02109 phone: (617)563-7000 toll free: (800)343-3548 url: http://www.fidelity.com

OVERVIEW

FMR Corp. is the holding company for Fidelity Investments, one of the world's largest providers of financial services, with $862.6 billion in managed assets as of April 30, 2002. Fidelity offers 323 mutual funds to its 17 million corporate and individual customers. Not until the early 2000s was Fidelity Magellan Fund usurped by the Vanguard 500 Index Fund as the largest mutual fund in the United States. Along with mutual fund management and related investment services, Fidelity also offers trust services through Fidelity Personal Trust Company, created in 2000. Non-financial assets include a 54 percent stake in COLT Telecom Group as well as various real estate and transportation holdings.

COMPANY FINANCES

Revenues for Fidelity Investments grew steadily throughout the 1990s, reaching $11.096 billion in 2000, compared to $1.474 billion in 1991 and $5.047 billion in 1996. Net income grew from $89.0 million in 1991 to $423.1 million in 1996 and $1 billion in 1999. That year, the firm's profit margin reached 11.4 percent.

The North American economic downturn that began in 2000 and continued through 2001 undercut the performance of all large mutual fund groups, including Fidelity Investments. In fact, the mutual fund manager saw its total return on investment plunge to –12.1 percent in 2001. One bright spot for FMR Corp. was its Fidelity Capital unit, which posted revenues of $1.162 billion in 2001, nearly 43 percent higher than 2000 revenues of $815 million.

ANALYSTS' OPINIONS

In the early 2000s, many financial industry analysts began to question the viability of large diversified fund companies like Fidelity. Recessionary economic conditions precipitated a prolonged depression of the stock market. As a result, profits for investment firms tumbled, prompting some to raise their fees and minimum investment requirements. According to a December 2001 article in Business Week, "The be-everything-to-everybody business model of giants such as Fidelity Investments, Dreyfus, Putnam Investments, and T. Rowe Price is showing serious chinks." Fidelity executive Richard A. Spillane, Jr. defended the business model, however, asserting that a large, diversified asset base "improves your odds of delivering the performance" and "allows us to have a 500-person equity staff spread all over the globe."

HISTORY

In 1930 investment counsel Anderson & Cromwell, a money management firm based in Boston, Massachusetts, created the Fidelity Fund. In 1938, the Fidelity Fund began to operate its own office and Anderson & Cromwell (by then named Cromwell & Cabot) began to charge fees for its investment recommendations. The first management fees introduced in 1933 were based on fund performance. However, officers and directors received no payment from the Fund prior to 1938.

In 1945 while it was still being managed by Cromwell & Cabot, Edward C. Johnson, II, a Harvard Law School graduate, left as in-house legal counsel for Incorporated Investors, one of Boston's first open-end mutual funds, and was elected to take over the Fidelity Fund as President and Director. Johnson came from a wealthy Boston family and acted as trustee on the Johnson family's investments. As President and Director of Fidelity Fund, Johnson was able to condense his family's trust funds and experiment with picking stocks. What proved to be a knack for selecting successful stocks not only helped Johnson boost his family's assets, it also fueled Fidelity Fund's rapid growth. The fund's assets reached $10 million in 1945.

In 1946 the Fidelity Management and Research Company was formed by Edward C. Johnson, II, to serve as investment adviser to Fidelity Fund, replacing Cromwell & Cabot and with Mr. Johnson managing the fund himself. Today Fidelity Management and Research Company is a subsidiary of FMR Corp.

For the next several years, Johnson concentrated on expanding Fidelity's product offerings. In 1947 Fidelity introduced the Fidelity Puritan Fund, the first income-oriented mutual fund to invest primarily in common stocks. Between 1947 and 1957, the assets managed by Fidelity grew from $15 million to $265 million.

In 1957 Johnson's son, Edward C. (Ned) Johnson, III, joined Fidelity as a research analyst. In 1958 he managed the Trend Fund, one of two new growth funds - the other was the Capital Fund - Fidelity began offering that year. The Trend and Capital Funds became two of the investment industry's first funds to be aggressively managed for performance and proved to be the firm's highest performing funds throughout the 1960s. They were merged into the Trend Fund in 1979.

Fidelity's assets grew from $500 million in 1960 to $2.3 billion in 1965. Among key developments that took place during this time, Fidelity launched the International Fund in 1963, managed by Ned Johnson. It was renamed the Fidelity Magellan Fund in 1965. In 1964, the firm began offering investment services for corporate pension plans; and in 1969, Fidelity Service Company was incorporated, making Fidelity one of the first mutual fund companies to bring servicing of shareholder accounts in-house.

In 1972 Edward C. Johnson, II, was named Director and Ned Johnson was named President of FMR Corp., which was to act as a holding company for Fidelity Investments. Ned then spearheaded a diversification program aimed at broadening Fidelity's financial services portfolio. In 1973, he began moving all shareholder servicing in-house, eliminating outside servicing and giving Fidelity more control and direct contact with customers.

The remainder of the 1970s was a time of high interest rates and sub-par returns on equity investments, and Fidelity focused its efforts on offering different and better service. In 1973, in the midst of a terrible bear market, Congress added an option to put tax sheltered 403(b) retirement account money directly into mutual funds. Fidelity was one of the first mutual fund companies to offer 403(b) accounts to not-for-profit institutions. In 1974, Fidelity introduced the Fidelity Daily Income Trust (FDIT), which was the first money market fund to offer check-writing services. Because shareholders could get money out easily, they readily put it in, and assets grew to more than $500 million in the first seven months of the fund's existence. When the stock market started to improve, many of these assets were moved into stock funds.

The year 1974 also saw Fidelity begin to sell mutual fund shares directly to the public through direct response advertising and a toll-free telephone number. Starting with one WATS line and a few newspaper ads, Fidelity found calls were soon coming in so quickly that it added eight more lines and hourglass egg timers to remind telephone representatives to take waiting calls. Direct phone mutual fund sales were so successful that in 1978, Fidelity installed a computerized telephone system to manage its growing telephone traffic, provide a high level of service to customers and minimize customer waiting. In 1979 Fidelity introduced Fidelity Information Phone, the first voice-activated computer response system for the general public, providing price and yield quotes on a 24-hour basis. The system responded to questions about prices and yields with a human voice for the ease and convenience of customers and freed telephone representatives to handle inquiries more complicated than fund quotes.

In 1976 Fidelity offered the first open-ended municipal bond fund sold without a sales charge. The Fidelity Municipal Bond Fund offered investors a way to invest in public entities around the country, receive interest tax free, and invest without having to pay a sales charge.

When the Securities and Exchange Commission in 1978 abolished fixed-rate brokerage commissions, Fidelity became the first major financial services institution to offer discount brokerage in the United States. Ned Johnson decided that since many investors bought Fidelity funds because they didn't need the advice of a broker, these same investors might also be interested in making their own decisions about individual securities, so he created Fidelity Brokerage Services, Inc. and opened several branch offices to support consolidation of an individual's stock, bond and mutual fund investments in one account. In 1979 Fidelity removed its 81/2 percent sales charges on almost all its funds and began selling its funds directly to the public with no sales charges (no load) or a low load of two to three percent. Also in 1979, because of Fidelity's success in selling its funds directly, many brokers wanted a way to sell Fidelity products, and the Fidelity Investments Institutional Services Company, Inc. was created to provide brokers with a line of Fidelity products to sell on a commission basis and also to provide advice of a third party to investors who wanted it.

The 1980s saw much growth for Fidelity, highlighted perhaps by the considerable attention it gained from the stellar performance of its Fidelity Magellan Fund. Managed by Peter Lynch since 1977, Magellan became the best performing mutual fund in the United States. In fact, it consistently posted higher percentage gains than Standard & Poor's 500 Stock Index, the standard of the industry. Between March 1984 and March 1989, it realized an average annual gain of 21.07 percent compared to the 17.48 percent average annual gain posted by S & P's 500 Index.

FAST FACTS: About FMR Corp.

Ownership: FMR Corp. is a private company with voting common stock owned by the Johnson family and employees. Abigail Johnson, granddaughter of founder Edward C. Johnson, II, owns a 25 percent share of the company.

Officers: Edward C. (Ned) Johnson, III, Chmn. and CEO; Robert L. Reynolds, VChmn.; James C. Curvey, VChmn., Dir., and COO; Stephen P. Jonas, EVP and CFO

Employees: 31,000

Principal Subsidiary Companies: FMR Corp. is the holding company for Fidelity Investments, the largest mutual fund company in the United States. Subsidiaries of FMR Corp. include Fidelity Brokerage Company, Fidelity Employer Services Company, Fidelity Investments Institutional Services Company and Fidelity Strategic Initiatives. Fidelity International Limited is a separate holding company established for all of Fidelity's international investment operations.

Chief Competitors: Fidelity Investments competes with other traditional mutual fund managers such as Vanguard Group, Putnam Investments, T. Rowe Price, and Charles Schwab, as well as newer online investment firms such as E*TRADE.

1980 also saw Fidelity introduce the country's first tax-exempt money market fund and, later, state-specific municipal bond and money market funds, enabling Fidelity investors to place portions of their assets in more conservative investments while receiving the tax benefits of owning municipal securities. Then in July 1981, Fidelity launched a group of "Select" portfolios, the first industry-specific mutual funds sold as a group to allow investors to switch back and forth between sectors at relatively low cost. Included were Select Health Care Portfolio, Select Technology Portfolio, Select Energy Portfolio, and Select Precious Metals and Minerals Portfolio, which was later merged into the Select Gold Portfolio. Fidelity became the first financial services company to offer investors a family of sector-specific funds.

In mid-1981, the 30-year fixed mortgage rate stood at 16.63 percent, the annual inflation rate was more than eight percent and the Dow Jones Industrial Average was at 948. In December 1981, Fidelity launched Select Financial Services Portfolio and Select Utilities Growth Portfolio, offering investors who were less risk averse and who wanted further ways of diversifying their portfolios a method of doing so by investing in certain industries and the companies in them. The Select line was later expanded to 41 portfolios. These portfolios also became a vehicle for training Fidelity analysts. Fidelity Management Trust Company was also established in 1981 to serve both large institutions and individuals, managing employee benefit assets for large corporations and holding individual IRA account assets in custody.

1983 saw Fidelity begin the first use of interactive automated telephone service technology. This allowed its customers, with greater ease and efficiency, to obtain price and yield quotes as well as check their account balances; and later, to make exchanges. Winning an award from the Smithsonian Institution for innovative use of technology in finance, it was further evidence of Fidelity's commitment to technology that would enable it to do a better job for its customers. Fidelity also developed and established a technology systems backup in Dallas, designed to take over if service disruptions in other technology areas occurred. Six other sites were added later. And Fidelity became the first mutual fund company to offer an asset management account through its Fidelity Ultra Service Account (USA), providing a way for customers to manage their investments and other holdings with Fidelity through one account, with check writing and other features.

CHRONOLOGY: Key Dates for FMR Corp. and Fidelity Investments

1930:

The Fidelity Fund is created

1946:

Edward C. Johnson, II, creates Fidelity Management & Research Company to manage the Fidelity Fund

1963:

International Fund (later renamed Fidelity Magellan Fund) launched, managed by Edward D. Johnson, III

1969:

Fidelity Service Company is incorporated, making Fidelity one of the first mutual fund companies to service shareholder accounts in-house

1972:

FMR Corp. is created to act as a holding company for Fidelity's operations

1974:

Fidelity creates the first money market fund to offer check writing and begins to sell mutual fund shares directly to the public

1978:

Fidelity becomes first major financial services institution to offer discount brokerage in the U.S.

1979:

Fidelity begins serving institutional investors

1980:

Fidelity introduces nation's first tax-exempt money market fund

1983:

Fidelity becomes first mutual fund company to offer an asset management account

1984:

Fidelity one of first financial services companies to offer computerized trading

1987:

Fidelity creates umbrella company for startup ventures, a life insurance company, and Canadian mutual fund subsidiary

1989:

Fidelity makes funds from other companies available to Fidelity customers

1992:

Fidelity software gives its customers direct access to financial markets through their personal computers

1995:

First industry Home Page on World Wide Web created by Fidelity

1997:

Fidelity becomes first discount broker to offer initial public offerings and third-party investment research

1998:

Fidelity announces a new college savings plan and brings wireless access to information and trading to its customers

2000:

Fidelity Personal Trust Company offers trust services

2001:

Fidelity teams with OnStar to offer industry's first in-vehicle investment services

In 1984, Fidelity Investor's Express (FIX) enabled customers to place orders through their personal computers and Fidelity became one of the first financial services to offer computerized trading. FIX later became Fidelity Online Express (FOX) in 1992, winning a Most Valuable Product Award from PC Magazine. In 1986, Fidelity created the industry's first 24-hour-a-day access to telephone representatives and became the first company in the industry to provide hourly pricing of mutual funds in its Select portfolios, enabling its customers to buy and sell shares in their portfolios based on current prices.

Fidelity's growth wasn't trouble-free, however. After the stock market crash of October 1987, its assets fell by nearly $5 billion and it was forced to trim its work force from 8,100 to 5,600 people. The late 1980s also marked a period of increased diversification for Fidelity. Ned Johnson believed that Fidelity should be developing new businesses - some not related to its core business -to teach new competencies and how to thrive through down market cycles. To this end, in 1987, Fidelity Capital was created to oversee businesses as diverse as real estate, telecommunications, retailing, publishing and transportation; Fidelity Investments Life Insurance Company was created to develop and market its own insurance products as well as those of other high-quality insurers, becoming the nation's leading writer of variable income annuities by 2001; and subsidiary Fidelity Investments Canada, Limited was launched to provide Canadian investors strong-performing mutual funds through Canadian broker/dealers.

In 1989, Fidelity became one of the first mutual fund companies to create a separate business unit, Fidelity Institutional Retirement Services Company (FIRSCo) to provide corporations with investment management, education and record keeping services for 401(k) plans which it recognized were about to explode in popularity. By the end of its first year of operation, FIRSCo had 200 employees serving 200 plan sponsors and their 200,000 participants who had $14.2 billion in assets. In response to the 1987 stock market crash and nervous investors turning to fixed-income markets, Fidelity also launched its Spartan Funds in 1989, selling a new line of money market and bond funds directly to the public and offering lower costs to investors who could meet higher minimums and thus obtain higher yields. 1989 also saw Fidelity launch FundsNetwork, a "mutual fund supermarket" enabling Fidelity's retail customers to access funds from Fidelity and dozens of other fund companies through their brokerage accounts. By 2001, Fidelity had expanded the program to include retirement accounts and its program has become the largest in the industry.

Fidelity's expansion and diversification in the 1990s was equally impressive. In 1991, it created business units to focus on retirement savings plans for small companies and for employees in the not-for-profit sector. Its Emerging Corporate Market Fund was organized to provide 401(k) services to companies with up to 1,000 employees and Fidelity Investments Tax-Exempt Services Company was formed to focus on 403(b) and 401(a) retirement savings plans for tax-exempt organizations and the public sector.

Fidelity has a long history of corporate giving and in 1992 it created the Fidelity Charitable Gift Fund as a model of the best practices for handling donor-advised funds, which was sanctioned by the IRS and emulated by many other organizations, including community foundations that offer donor-advised funds. This fund has become the nation's largest grant-maker and second largest public charity. Also in 1992, Fidelity launched Fidelity Online Express, a software package giving customers direct access to the financial markets through their personal computers, which evolved from Fidelity Investor's Express of 1984; it introduced Stages, a first-of-its-kind monthly magazine for 401(k) plan participants, containing articles on retirement planning, investing, the economy, general savings ideas and other subjects of interest to plan participants, which was lauded by both plan sponsors and participants; and it entered the telecommunications arena in 1992 when it established City of London Telecommunications (COLT) Group.

Although the Fidelity Magellan Fund continued to rank among the top ten mutual funds in the early 1990s, other funds, many created by Fidelity Investments, began to outperform Magellan. For example, the Fidelity Select Health Fund, a biotech fund, emerged as the top performer and Magellan fell to the number three spot. Another Fidelity fund, Fidelity Destiny I, also made the top ten during that period. Also, as the stock market began to boom in the mid-1990s, several fund managers left Fidelity to take positions with public investment firms that were able to offer stock options as part of their compensation packages. In 1997, Fidelity turned to outside fund managers for the first time when it contracted the management of its index funds to Bankers Trust.

FIDELITY'S EARLY LEADERSHIP

Fidelity Investments founder Edward C. Johnson, II, spent a large portion of his life watching the stock market. In fact, he kept a daily stock market diary for more than 50 years in an effort to chronicle different trends and deepen his understanding of stock investments.

In 1995, Fidelity created the first financial services industry Home Page on the World Wide Web, which was immediately welcomed by rapidly-growing numbers of Internet users. At that time, the Fidelity Web site included information on Fidelity's mutual funds and brokerage services, investor tools and information about Fidelity events and seminars around the country. Also, Fidelity Employer Services Company was created to provide employers the option of using Fidelity for benefits services beyond traditional defined contribution 401(k) plans. Later it expanded to include payroll and human resources functions. In 1996, Fidelity launched NetBenefits to provide 401(k) access and transactions over the Internet. After its first year of operation, NetBenefits was awarded a Microsoft Example of Excellence Award and went on to become a platform for several other future Fidelity innovations. 1997 also saw Fidelity create Port-folioPlanner, an online management tool for 401(k) plan sponsors providing model portfolio recommendations customized to their retirement plan options, and Plan Sponsor Webstation, an online tool for benefits administrators to use in managing their company retirement plans.

In 1998, Fidelity announced a new college savings plan, the UNIQUE College Investing Plan, and other plans that took advantage of the Taxpayer Relief Act of 1997 to provide qualified state tuition savings programs. It also offered its customers wireless access to information and trading through its new InstantBroker, which enabled customers to manage their investments from almost any location, using a pager, email, fax, or personal data assistant, and other enhancements subsequently announced.

Fidelity introduced the country's first 401(k) plan for small business sold and serviced over the Internet in 1999. Developed to help meet the retirement needs of small businesses, Fidelity's e401k offers employers all the features of a full service 401(k) plan online: plan administration by the employer, record-keeping reports, personalized communication, education, retirement planning tools and ongoing account monitoring and management. It also launched Powerstreet, a Web-based brokerage platform offering enhanced trading, research and personalization. In this complete retooling of its discount brokerage, Fidelity uses the Internet as the platform for Powerstreet through which individual investors can take advantage of a broad range of trading and cash management features including buying and selling stocks, bonds, options and more than 4,400 mutual funds from Fidelity and other well-known fund companies; access exclusive Lehman Brothers research; receive personalized news and information; and access IPOs, margin borrowing, unlimited check writing and other features. Fidelity also opened its state-of-the-art Fidelity Center for Applied Technology in 1999 to seek technology solutions that focus on wireless technology and database products designed to make it even easier for customers to use Fidelity's products and services.

In 2000, the Fidelity Electronic Payroll system for small businesses was introduced. Designed to meet the evolving technology needs of the small business market, Internet-based Fidelity Electronic Payroll followed Fidelity's successful introduction of its e401k in 1999; but while it includes Fidelity's existing Web-based Fidelity Plan Sponsor Webstation and Fidelity NetBenefits, in use by Fidelity's 7,000 clients and seven million participants, Electronic Payroll is part of a broader range of outsourcing services that includes defined contributions, defined benefits and health and welfare. Also in 2000, Fidelity offered trust services through Fidelity Personal Trust Company.

The following year, in 2001, the Frank Russell Company and Fidelity Institutional BrokerageGroup announced a strategic alliance designed to help Register Investment Advisors and correspondent broker/dealers meet the sophisticated investing needs of their affluent clients through a separately managed accounts program. Fidelity also formed an alliance with OnStar, a wholly owned subsidiary of General Motors Corporation, enabling OnStar subscribers, including many of Fidelity's 7.3 million 401(k) customers, to monitor, manage and trade in their Fidelity personal investing accounts via OnStar's hands-free, voice-enabled Virtual Advisor. Fidelity also unveiled the Fidelity Compensation Planner, its latest compensation planning service addition to Fidelity's Web-based HR/payroll tool set called Fidelity eWorkplace, a suite of integrated employee and manager self-service tools to facilitate issues resolution, making informed decisions, and the processing of HR and payroll changes through a single Web interface. Fidelity Compensation Planner allows for employee compensation data and recommendations to be submitted and approved online, greatly reducing the time associated with traditional labor-intensive paper or spreadsheet-based planning cycles. 2001 also saw Fidelity enhance its PortfolioPlanner into the first available tool to integrate data from investors' multiple accounts, then analyze up to ten financial goals and help investors develop investment strategies to meet them.

STRATEGY

Taking calculated risks is a strategy Fidelity has embraced throughout its history. In the early 1970s, Fidelity decided to diversify into a broad range of financial services. Fidelity became the first money market fund manager to offer check writing in 1974. Rather than relying on traditional brokerage distribution channels, in 1974 Fidelity began to market its funds directly to the public via print advertising and direct mail. In 1976, Fidelity once again acted as an industry pioneer when it launched the first open-end, no-load municipal bond fund. Three years later, Fidelity became the first major financial institution to offer discount brokerage services.

The risks the firm took with Magellan also proved worthwhile. Rather than placing 200 or so companies into its portfolio, as was typically done with an equity fund like Magellan, Fidelity put more than 1,000 companies into Magellan. The firm also marketed the fund aggressively. As a result, Magellan grew from $22 million in assets in 1977 to $12 billion in assets in 1990. Believing that its advertising efforts, which included targeting the general public, had paid off with Magellan, the firm increased its advertising budget to $28 million per year in the early 1990s. In fact, Fidelity spent more on advertising than any other mutual fund manager.

Internal operations were also structured differently than most other mutual fund companies. In the 1980s, CEO Ned Johnson had put in place a management style modeled after many Japanese businesses. The company became more self-sufficient by doing things like handling its own back-office account processing rather than relying upon an outside bank for that service. Eventually, Fidelity was able to sell its expertise in these areas to other investment firms.

In the early 1990s, Fidelity used its extensive technological capabilities to offer clients help with everything from retirement planning to saving for a college education. Many of Fidelity's premium services, which had once been designed to serve the firm's wealthiest customers, were offered to all six million of its clients.

CURRENT TRENDS

Fidelity began to invest a signification portion of its budget in technology in the 1960s, long before technology became a buzz word among other banking and investment firms. The firm's goal was to become technologically self-reliant. Consequently, Fidelity kept abreast of the data processing and telecommunications developments that revolutionized the financial industry in the 1980s and 1990s. In fact, by the early 1990s, Fidelity had earmarked more than $150 million a year for technology-related efforts.

Fidelity was a leader among the financial firms that began to transform themselves into technology-based customer service centers offering a wide range of financial services . For example, Fidelity installed an interactive, automated telephone system in 1983. Fidelity Investors Express, a service that permitted customers to conduct stock trades via personal computers, was offered in 1984. Fidelity also designed software that allowed its staff to access information such as margin calculations and options analysis for customers on demand. In the early 1990s, Fidelity began to operate Investor Liquidity Network, an electronic stock trading system that matched the buy and sell orders of outside institutional investors with the orders of Fidelity fund operators.

Fidelity was also quick to embrace Internet technology. In 1999, it teamed up with Charles Schwab, Donaldson, Lufkin & Jenrette, and Spear, Leeds & Kellogg to create a network that allowed investors to trade NASDAQ stocks on the Internet. That year, popular Internet gateway Lycos worked with Fidelity, to create Power-street, an online brokerage run by Fidelity allowing investors to customize their Web experiences. The firm also announced the nationwide availability of its Instant-Broker service to investors via the Palm VII organizer, the first integrated wireless hand-held computing product.

PRODUCTS

Fidelity Investments under holding company FMR Corp. offers a wide range of financial planning products and services to individual and institutional investors, such as mutual funds, annuities, life insurance, retirement planning, college tuition planning, and discount brokerage. Fidelity Capital invests private equity on behalf of Fidelity Investments using a variety of investment approaches but primarily focuses on majority-owned operating businesses in various industries including insurance, transportation, hospitality, and human resources. Fidelity Employer Services Company provides corporations and tax-exempt organizations with defined contribution retirement plans and other benefits outsourcing services. Fidelity Brokerage Company provides a full range of investment products and services to individual mutual fund and brokerage customers. Fidelity Investments Institutional Services Company, Inc. distributes Fidelity products, programs and services through a variety of financial institutions, including banks, insurance companies and broker/dealers.

CORPORATE CITIZENSHIP

To promote volunteerism among its employees, Fidelity operates an Intranet site that helps employees locate volunteer activities in their communities. The firm also operates a workplace giving program that makes it convenient for employees to make donations to their favorite non-profit organizations. Activities to promote literacy include sponsoring book fairs for Reading is Fundamental.

GLOBAL PRESENCE

In 1969, Fidelity International was founded in Bermuda to manage and administer Fidelity's offshore funds. In 1979, Fidelity International Limited (FIL) was established as a separate, independent holding company for all Fidelity's international investment operations. FIL is a privately owned company, separate from FMR Corp., with its headquarters in Bermuda. FIL provides investment management services to individual and institutional investors outside the United States. Its products and services include equity, fixed income and money funds as well as institutional portfolio management.

SOURCES OF INFORMATION

Bibliography

der hovanesian, mara. "the mutual fund mess." business week, 17 december 2001. available at http://www.businessweek.com.

dickey, sam. "financial firms confront the challenge of keeping brokers in the loop." informationweek, 11 september 2000.

egan, jack. "the $13 billion honey pot." forbes, 15 may 2000.

"fidelity unit revenue rises 30 percent."the boston herald, 1 march 2002.

"fmr corp."international directory of company histories. detroit: gale research, 1992.

fmr corp. home page, 2002. available at http://www.fidelity.com.

For additional company research:

investigate companies by their standard industrial classification codes, also known as sic codes. fmr corp.'s primary sics are:

6211 security brokers and dealers

6282 investment advice

6719 holding companies, not elsewhere classified

also investigate companies by their north american industry classification system codes, also known as naics codes. fmr corp.'s primary naics codes are:

523120 securities brokerage

523930 investment advice

551112 offices of other holding companies