Fidelity®
Magellan® Fund
Annual
Report
March
31, 2023
Contents
To
view a fund's proxy voting guidelines and proxy voting record for the 12-month
period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit
the Securities and Exchange Commission's (SEC) web site at
http://www.sec.gov.
You
may also call 1-800-544-8544 if you're an individual investing directly with
Fidelity, call 1-800-835-5092 if you're a plan sponsor or participant with
Fidelity as your recordkeeper or call 1-877-208-0098 on institutional accounts
or if you're an advisor or invest through one to request a free copy of the
proxy voting guidelines.
Standard
& Poor's, S&P and S&P 500 are registered service marks of The
McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity
Distributors Corporation.
Other
third-party marks appearing herein are the property of their respective
owners.
All
other marks appearing herein are registered or unregistered trademarks or
service marks of FMR LLC or an affiliated company. © 2023 FMR LLC. All rights
reserved.
This
report and the financial statements contained herein are submitted for the
general information of the shareholders of the Fund. This report is not
authorized for distribution to prospective investors in the Fund unless preceded
or accompanied by an effective prospectus.
A
fund files its complete schedule of portfolio holdings with the SEC for the
first and third quarters of each fiscal year on Form N-PORT. Forms N-PORT are
available on the SEC's web site at http://www.sec.gov. A fund's Forms N-PORT may
be reviewed and copied at the SEC's Public Reference Room in Washington, DC.
Information regarding the operation of the SEC's Public Reference Room may be
obtained by calling 1-800-SEC-0330.
For
a complete list of a fund's portfolio holdings, view the most recent holdings
listing, semiannual report, or annual report on Fidelity's web site at
http://www.fidelity.com, http://www.institutional.fidelity.com, or
http://www.401k.com, as applicable.
NOT
FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither
the Fund nor Fidelity Distributors Corporation is a bank.
Average
annual total return reflects the change in the value of an investment, assuming
reinvestment of distributions from dividend income and capital gains (the
profits earned upon the sale of securities that have grown in value, if any) and
assuming a constant rate of performance each year. The hypothetical investment
and the average annual total returns do not reflect the deduction of taxes that
a shareholder would pay on fund distributions or the redemption of fund shares.
During periods of reimbursement by Fidelity, a fund's total return will be
greater than it would be had the reimbursement not occurred. How a fund did
yesterday is no guarantee of how it will do tomorrow.
Average
Annual Total Returns |
|
|
|
|
Periods
ended March 31, 2023
|
Past
1
year
|
Past
5
years
|
Past
10
years
|
Fidelity®
Magellan® Fund |
-10.73%
|
9.55%
|
12.07%
|
Class
K |
-10.69%
|
9.62%
|
12.16%
|
$10,000 Over 10 Years |
|
Let's
say hypothetically that $10,000 was invested in Fidelity® Magellan® Fund,
a class of the fund, on March 31, 2013.
The
chart shows how the value of your investment would have changed, and also
shows how the S&P 500® Index performed over the same period.
|
|
|
Market
Recap:
U.S.
equities returned -7.73% for the 12 months ending March 31, 2023, according to
the S&P 500 ®
index,
as markets digested multiple crosscurrents and picked up momentum to begin the
new year. Indeed, the index rose 7.50% in Q1 2023. This upturn followed a year
in which the S&P 500 ®
returned
-18.11% amid a multitude of risk factors. Record inflation in 2022 prompted the
Federal Reserve to aggressively tighten monetary policy, and market interest
rates eclipsed their highest level in a decade, stoking recession fears and
sending stocks into bear market territory. Since March 2022, the Fed has raised
its benchmark rate nine times, by 4.75 percentage points, while also shrinking
its massive asset portfolio. Following a banking crisis in early March 2023, the
Fed was forced to weigh risk to the financial system if it continued to hike
aggressively, so it backed off with a hike of 25 basis points (0.25%) on March
22. The news came along with a signal that banking-related turmoil might end the
central bank's rate-hiking campaign sooner than seemed likely. Against this
backdrop, stocks struggled to gain traction until a rally in late 2022, as risky
assets regained favor. The S&P 500 ®
rose
6.28% in January and 3.67% in March, boosted by data that pointed to an economy
slowing under higher inflation and interest rates, but still supported by
plentiful jobs and spending on services. For the full 12 months, value stocks
handily outpaced growth. By sector, energy (+14%) led the way, whereas consumer
discretionary and real estate (-20% each) lagged most.
Comments
from Portfolio Manager Sammy Simnegar:
For
the fiscal year ending March 31, 2023, the fund's share classes returned roughly
-11%, trailing the -7.73% result of the benchmark S&P 500 ®
index.
The largest detractor from performance versus the benchmark was a lack of
exposure to the energy sector. Weak picks among consumer discretionary stocks,
primarily within the consumer discretionary distribution & retail industry,
also hampered the portfolio's relative result. Further pressuring performance
compared with the benchmark were investment choices and an underweight in
consumer staples. The fund's largest individual relative detractor was Apple,
where untimely ownership resulted in a return of about -12% and we no longer
held the stock at period end. Also hindering performance was untimely ownership
of Amazon.com, which returned roughly -37% and was sold prior to March 31 as
well. Another notable relative detractor was a slightly outsized stake in
Alphabet (-33%), yet another position we exited by period end. Conversely, the
largest contributor to performance versus the benchmark was security selection
in financials. An underweight in consumer discretionary - especially shares of
automobiles & components companies - along with picks in materials, further
boosted the fund's relative return. Not owning Tesla, a benchmark component that
returned -42%, was the largest individual relative contributor. Also adding
value was an overweight in Cadence Design Systems, which gained 28%. Another
notable relative contributor was a larger-than-benchmark position in Eli Lilly
(+22%), one of our largest holdings at period end. Notable changes in
positioning this period include a higher allocation to the industrials and
health care sectors.
The
views expressed above reflect those of the portfolio manager(s) only through the
end of the period as stated on the cover of this report and do not necessarily
represent the views of Fidelity or any other person in the Fidelity
organization. Any such views are subject to change at any time based upon market
or other conditions and Fidelity disclaims any responsibility to update such
views. These views may not be relied on as investment advice and, because
investment decisions for a Fidelity fund are based on numerous factors, may not
be relied on as an indication of trading intent on behalf of any Fidelity
fund.
Top
Holdings (% of Fund's net
assets) |
|
Microsoft
Corp. |
8.1
|
|
NVIDIA
Corp. |
3.4
|
|
UnitedHealth
Group, Inc. |
3.1
|
|
Visa,
Inc. Class A |
2.6
|
|
Thermo
Fisher Scientific, Inc. |
2.3
|
|
MasterCard,
Inc. Class A |
2.3
|
|
Eli
Lilly & Co. |
2.2
|
|
Costco
Wholesale Corp. |
2.2
|
|
Linde
PLC |
2.1
|
|
Danaher
Corp. |
2.1
|
|
|
30.4
|
|
|
Market
Sectors (% of Fund's net assets) |
|
Information
Technology |
30.1
|
|
Industrials
|
20.1
|
|
Health
Care |
17.0
|
|
Financials
|
15.8
|
|
Consumer
Discretionary |
5.3
|
|
Materials
|
4.8
|
|
Consumer
Staples |
3.6
|
|
Utilities
|
2.0
|
|
|
Asset
Allocation (% of Fund's net assets)
|
|
|
Showing
Percentage of Net Assets
Common
Stocks - 98.7% |
|
|
Shares
|
Value
($)
(000s)
|
CONSUMER
DISCRETIONARY - 5.3% |
|
|
|
Hotels,
Restaurants & Leisure - 3.9% |
|
|
|
Airbnb,
Inc. Class A (a) |
|
2,524,819
|
314,087
|
Hilton
Worldwide Holdings, Inc. |
|
2,303,662
|
324,517
|
Yum!
Brands, Inc. |
|
2,540,891
|
335,601
|
|
|
|
974,205
|
Specialty
Retail - 1.4% |
|
|
|
AutoZone,
Inc. (a) |
|
148,194
|
364,283
|
TOTAL CONSUMER DISCRETIONARY
|
|
|
1,338,488
|
CONSUMER
STAPLES - 3.6% |
|
|
|
Food
& Staples Retailing - 3.6% |
|
|
|
Costco
Wholesale Corp. |
|
1,081,728
|
537,478
|
Dollar
General Corp. |
|
1,705,519
|
358,944
|
|
|
|
896,422
|
FINANCIALS
- 15.8% |
|
|
|
Capital
Markets - 6.0% |
|
|
|
LPL
Financial |
|
1,487,836
|
301,138
|
Moody's
Corp. |
|
1,375,958
|
421,071
|
Raymond
James Financial, Inc. |
|
3,398,790
|
317,005
|
S&P
Global, Inc. |
|
1,355,309
|
467,270
|
|
|
|
1,506,484
|
Financial
Services - 6.3% |
|
|
|
Fiserv,
Inc. (a) |
|
3,179,267
|
359,353
|
MasterCard,
Inc. Class A |
|
1,563,499
|
568,191
|
Visa,
Inc. Class A |
|
2,834,993
|
639,178
|
|
|
|
1,566,722
|
Insurance
- 3.5% |
|
|
|
Arthur
J. Gallagher & Co. |
|
2,214,893
|
423,731
|
Marsh
& McLennan Companies, Inc. |
|
2,737,895
|
455,996
|
|
|
|
879,727
|
TOTAL FINANCIALS |
|
|
3,952,933
|
HEALTH
CARE - 17.0% |
|
|
|
Health
Care Equipment & Supplies - 1.4% |
|
|
|
Boston
Scientific Corp. (a) |
|
7,216,000
|
361,016
|
Health
Care Providers & Services - 5.7% |
|
|
|
Cigna
Group |
|
773,230
|
197,583
|
Humana,
Inc. |
|
939,118
|
455,904
|
UnitedHealth
Group, Inc. |
|
1,617,035
|
764,195
|
|
|
|
1,417,682
|
Life
Sciences Tools & Services - 5.9% |
|
|
|
Danaher
Corp. |
|
2,070,087
|
521,745
|
Mettler-Toledo
International, Inc. (a) |
|
247,682
|
379,005
|
Thermo
Fisher Scientific, Inc. |
|
989,412
|
570,267
|
|
|
|
1,471,017
|
Pharmaceuticals
- 4.0% |
|
|
|
Eli
Lilly & Co. |
|
1,628,244
|
559,172
|
Zoetis,
Inc. Class A |
|
2,649,722
|
441,020
|
|
|
|
1,000,192
|
TOTAL HEALTH CARE |
|
|
4,249,907
|
INDUSTRIALS
- 20.1% |
|
|
|
Aerospace
& Defense - 2.7% |
|
|
|
HEICO
Corp. Class A |
|
2,486,642
|
337,935
|
TransDigm
Group, Inc. |
|
467,725
|
344,737
|
|
|
|
682,672
|
Building
Products - 1.2% |
|
|
|
Trane
Technologies PLC |
|
1,693,331
|
311,539
|
Commercial
Services & Supplies - 4.2% |
|
|
|
Cintas
Corp. |
|
793,084
|
366,944
|
Copart,
Inc. (a) |
|
4,611,058
|
346,798
|
Waste
Connections, Inc. (United States) (b) |
|
2,392,712
|
332,754
|
|
|
|
1,046,496
|
Construction
& Engineering - 2.4% |
|
|
|
Quanta
Services, Inc. |
|
1,851,437
|
308,523
|
Willscot
Mobile Mini Holdings (a) |
|
6,031,100
|
282,738
|
|
|
|
591,261
|
Electrical
Equipment - 2.6% |
|
|
|
AMETEK,
Inc. |
|
2,156,983
|
313,474
|
Eaton
Corp. PLC |
|
1,964,019
|
336,515
|
|
|
|
649,989
|
Machinery
- 1.3% |
|
|
|
Ingersoll
Rand, Inc. |
|
5,484,574
|
319,093
|
Professional
Services - 5.7% |
|
|
|
Automatic
Data Processing, Inc. |
|
1,760,581
|
391,958
|
Equifax,
Inc. (b) |
|
1,700,687
|
344,967
|
Paychex,
Inc. |
|
2,727,645
|
312,561
|
Verisk
Analytics, Inc. (b) |
|
1,894,957
|
363,566
|
|
|
|
1,413,052
|
Transportation
- 0.0% |
|
|
|
Bird
Global, Inc.: |
|
|
|
Stage 1 rights (a)(c) |
|
22,065
|
0
|
Stage 2 rights (a)(c) |
|
22,064
|
0
|
Stage 3 rights (a)(c) |
|
22,064
|
0
|
|
|
|
0
|
TOTAL INDUSTRIALS |
|
|
5,014,102
|
INFORMATION
TECHNOLOGY - 30.1% |
|
|
|
Communications
Equipment - 0.3% |
|
|
|
Motorola
Solutions, Inc. |
|
258,590
|
73,990
|
Electronic
Equipment & Components - 2.8% |
|
|
|
Amphenol
Corp. Class A |
|
4,270,204
|
348,961
|
CDW
Corp. |
|
1,821,245
|
354,942
|
|
|
|
703,903
|
IT
Services - 3.3% |
|
|
|
Accenture
PLC Class A |
|
1,735,350
|
495,980
|
Gartner,
Inc. (a) |
|
1,006,853
|
328,003
|
|
|
|
823,983
|
Semiconductors
& Semiconductor Equipment - 11.0% |
|
|
|
Analog
Devices, Inc. |
|
2,074,811
|
409,194
|
First
Solar, Inc. (a) |
|
1,476,196
|
321,073
|
KLA
Corp. |
|
970,083
|
387,228
|
Lam
Research Corp. |
|
758,953
|
402,336
|
NVIDIA
Corp. |
|
3,097,413
|
860,368
|
onsemi
(a) |
|
4,507,506
|
371,058
|
|
|
|
2,751,257
|
Software
- 12.7% |
|
|
|
Cadence
Design Systems, Inc. (a) |
|
1,833,029
|
385,101
|
Microsoft
Corp. |
|
6,979,498
|
2,012,192
|
Palo
Alto Networks, Inc. (a)(b) |
|
1,891,606
|
377,829
|
Synopsys,
Inc. (a) |
|
1,016,621
|
392,670
|
|
|
|
3,167,792
|
TOTAL INFORMATION TECHNOLOGY
|
|
|
7,520,925
|
MATERIALS
- 4.8% |
|
|
|
Chemicals
- 4.8% |
|
|
|
Albemarle
Corp. |
|
1,191,682
|
263,409
|
Linde
PLC |
|
1,500,194
|
533,229
|
Sherwin-Williams
Co. |
|
1,752,740
|
393,963
|
|
|
|
1,190,601
|
UTILITIES
- 2.0% |
|
|
|
Electric
Utilities - 2.0% |
|
|
|
NextEra
Energy, Inc. |
|
6,575,604
|
506,848
|
TOTAL
COMMON STOCKS
(Cost
$18,260,102) |
|
|
24,670,226
|
|
|
|
|
Money
Market Funds - 1.8% |
|
|
Shares
|
Value
($)
(000s)
|
Fidelity
Cash Central Fund 4.86% (d) |
|
239,072,127
|
239,120
|
Fidelity
Securities Lending Cash Central Fund 4.87% (d)(e) |
|
208,533,547
|
208,554
|
TOTAL
MONEY MARKET FUNDS
(Cost
$447,674) |
|
|
447,674
|
|
|
|
|
TOTAL
INVESTMENT IN SECURITIES - 100.5%
(Cost
$18,707,776)
|
25,117,900
|
NET
OTHER ASSETS (LIABILITIES) - (0.5)%
|
(114,954)
|
NET
ASSETS - 100.0% |
25,002,946
|
|
|
Any
values shown as $0 in the Schedule of Investments may reflect amounts less than
$500.
Legend
(b)
|
Security
or a portion of the security is on loan at period end.
|
(d)
|
Affiliated
fund that is generally available only to investment companies and other
accounts managed by Fidelity Investments. The rate quoted is the
annualized seven-day yield of the fund at period end. A complete unaudited
listing of the fund's holdings as of its most recent quarter end is
available upon request. In addition, each Fidelity Central Fund's
financial statements, which are not covered by the Fund's Report of
Independent Registered Public Accounting Firm, are available on the SEC's
website or upon request.
|
(e)
|
Investment
made with cash collateral received from securities on loan.
|
Affiliated
Central Funds
Fiscal
year to date information regarding the Fund's investments in Fidelity Central
Funds, including the ownership percentage, is presented below.
Affiliate
(Amounts in thousands) |
Value,
beginning
of
period ($) |
Purchases
($) |
Sales
Proceeds
($) |
Dividend
Income
($) |
Realized
Gain
(loss) ($) |
Change
in
Unrealized
appreciation
(depreciation)
($) |
Value,
end
of
period ($) |
%
ownership,
end
of
period |
Fidelity
Cash Central Fund 4.86% |
476,122
|
6,830,607
|
7,067,609
|
7,821
|
-
|
-
|
239,120
|
0.6%
|
Fidelity
Securities Lending Cash Central Fund 4.87% |
14,193
|
2,178,798
|
1,984,437
|
94
|
-
|
-
|
208,554
|
0.7%
|
Total
|
490,315
|
9,009,405
|
9,052,046
|
7,915
|
-
|
-
|
447,674
|
|
|
|
|
|
|
|
|
|
|
Amounts
in the dividend income column in the above table include any capital gain
distributions from underlying funds, which are presented in the corresponding
line item in the Statement of Operations, if applicable.
Amounts
in the dividend income column for Fidelity Securities Lending Cash Central Fund
represents the income earned on investing cash collateral, less rebates paid to
borrowers and any lending agent fees associated with the loan, plus any premium
payments received for lending certain types of securities.
Amounts
included in the purchases and sales proceeds columns may include in-kind
transactions, if applicable.
Other
Affiliated Issuers
An
affiliated company is a company in which the Fund has ownership of at least 5%
of the voting securities. Fiscal year to date transactions with companies which
are or were affiliates are presented in the table below. Certain corporate
actions, such as mergers, are excluded from the amounts in this table if
applicable. A dash in the Value end of period ($) column means either the issuer
is no longer held at period end, or the issuer is held at period end but is no
longer an affiliate.
Affiliate
(Amounts in thousands) |
Value,
beginning
of
period ($) |
Purchases
($) |
Sales
Proceeds
($) |
Dividend
Income
($) |
Realized
Gain
(loss) ($) |
Change
in
Unrealized
appreciation
(depreciation)
($) |
Value,
end
of
period ($) |
RREF
CMBS AIV, LP |
18,412
|
-
|
15,057
|
-
|
(471)
|
(2,884)
|
-
|
RREF
Midtown Colony REIT, Inc. |
-
|
-
|
-
|
-
|
(1,423)
|
1,423
|
-
|
Rialto
Real Estate Fund LP |
34
|
-
|
-
|
-
|
(15,294)
|
15,260
|
-
|
Total
|
18,446
|
-
|
15,057
|
-
|
(17,188)
|
13,799
|
-
|
Amounts
included in the purchases and sales proceeds columns may include in-kind
transactions, if applicable.
Investment
Valuation
The
following is a summary of the inputs used, as of March 31, 2023, involving the
Fund's assets and liabilities carried at fair value. The inputs or methodology
used for valuing securities may not be an indication of the risk associated with
investing in those securities. For more information on valuation inputs, and
their aggregation into the levels used below, please refer to the Investment
Valuation section in the accompanying Notes to Financial Statements.
Valuation
Inputs at Reporting Date: |
Description
(Amounts
in thousands) |
Total
($) |
Level
1 ($) |
Level
2 ($) |
Level
3 ($) |
Investments
in Securities: |
|
|
|
|
|
Equities: |
|
|
|
|
Consumer
Discretionary |
1,338,488
|
1,338,488
|
-
|
-
|
Consumer
Staples |
896,422
|
896,422
|
-
|
-
|
Financials
|
3,952,933
|
3,952,933
|
-
|
-
|
Health
Care |
4,249,907
|
4,249,907
|
-
|
-
|
Industrials
|
5,014,102
|
5,014,102
|
-
|
-
|
Information
Technology |
7,520,925
|
7,520,925
|
-
|
-
|
Materials
|
1,190,601
|
1,190,601
|
-
|
-
|
Utilities
|
506,848
|
506,848
|
-
|
-
|
|
Money Market Funds
|
447,674
|
447,674
|
-
|
-
|
Total Investments in Securities: |
25,117,900
|
25,117,900
|
-
|
-
|
Statement
of Assets and Liabilities |
Amounts
in thousands (except per-share amounts) |
|
|
|
March
31, 2023 |
|
|
|
|
|
Assets
|
|
|
|
|
Investment
in securities, at value (including securities loaned of $205,875) - See accompanying
schedule: |
|
|
|
|
Unaffiliated issuers (cost
$18,260,102) |
$
|
24,670,226
|
|
|
Fidelity Central Funds (cost
$447,674) |
|
447,674
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Investment in Securities (cost $18,707,776) |
|
|
$
|
25,117,900
|
Receivable
for investments sold |
|
|
|
171,208
|
Receivable
for fund shares sold |
|
|
|
1,662
|
Dividends
receivable |
|
|
|
11,020
|
Distributions
receivable from Fidelity Central Funds |
|
|
|
690
|
Prepaid
expenses |
|
|
|
14
|
Other
receivables |
|
|
|
942
|
Total
assets |
|
|
|
25,303,436
|
Liabilities
|
|
|
|
|
Payable
for investments purchased |
$
|
72,661
|
|
|
Payable
for fund shares redeemed |
|
9,187
|
|
|
Accrued
management fee |
|
6,516
|
|
|
Other
affiliated payables |
|
2,486
|
|
|
Other
payables and accrued expenses |
|
1,086
|
|
|
Collateral
on securities loaned |
|
208,554
|
|
|
Total Liabilities
|
|
|
|
300,490
|
Net
Assets |
|
|
$
|
25,002,946
|
Net
Assets consist of: |
|
|
|
|
Paid
in capital |
|
|
$
|
15,944,362
|
Total
accumulated earnings (loss) |
|
|
|
9,058,584
|
Net
Assets |
|
|
$
|
25,002,946
|
|
|
|
|
|
Net
Asset Value and Maximum Offering Price |
|
|
|
|
Magellan
: |
|
|
|
|
Net
Asset Value ,
offering price and redemption price per share ($24,279,165 ÷ 2,093,421
shares) |
|
|
$
|
11.60
|
Class
K : |
|
|
|
|
Net
Asset Value ,
offering price and redemption price per share ($723,781 ÷ 62,437
shares) |
|
|
$
|
11.59
|
Statement
of Operations |
Amounts
in thousands |
|
|
|
Year
ended
March
31, 2023 |
Investment
Income |
|
|
|
|
Dividends
|
|
|
$
|
208,930
|
Income
from Fidelity Central Funds (including $94 from security lending)
|
|
|
|
7,915
|
Total Income |
|
|
|
216,845
|
Expenses
|
|
|
|
|
Management
fee |
|
|
|
|
Basic fee |
$
|
129,317
|
|
|
Performance adjustment |
|
(32,966)
|
|
|
Transfer
agent fees |
|
27,676
|
|
|
Accounting
fees |
|
1,773
|
|
|
Custodian
fees and expenses |
|
201
|
|
|
Independent
trustees' fees and expenses |
|
87
|
|
|
Registration
fees |
|
139
|
|
|
Audit
|
|
177
|
|
|
Legal
|
|
20
|
|
|
Interest
|
|
251
|
|
|
Miscellaneous
|
|
118
|
|
|
Total expenses before reductions |
|
126,793
|
|
|
Expense reductions |
|
(878)
|
|
|
Total expenses after reductions |
|
|
|
125,915
|
Net
Investment income (loss) |
|
|
|
90,930
|
Realized
and Unrealized Gain (Loss) |
|
|
|
|
Net
realized gain (loss) on: |
|
|
|
|
Investment Securities: |
|
|
|
|
Unaffiliated issuers |
|
2,817,758
|
|
|
Redemptions in-kind |
|
11,686
|
|
|
Affiliated issuers |
|
(17,188)
|
|
|
Total
net realized gain (loss) |
|
|
|
2,812,256
|
Change
in net unrealized appreciation (depreciation) on: |
|
|
|
|
Investment Securities: |
|
|
|
|
Unaffiliated issuers |
|
(5,998,666)
|
|
|
Affiliated issuers |
|
13,799
|
|
|
Total
change in net unrealized appreciation (depreciation) |
|
|
|
(5,984,867)
|
Net
gain (loss) |
|
|
|
(3,172,611)
|
Net
increase (decrease) in net assets resulting from operations
|
|
|
$
|
(3,081,681)
|
Statement
of Changes in Net Assets |
|
Amount
in thousands |
|
Year
ended
March
31, 2023 |
|
Year
ended
March
31, 2022 |
Increase
(Decrease) in Net Assets |
|
|
|
|
Operations
|
|
|
|
|
Net
investment income (loss) |
$
|
90,930
|
$
|
(19,408)
|
Net
realized gain (loss) |
|
2,812,256
|
|
1,980,502
|
Change
in net unrealized appreciation (depreciation) |
|
(5,984,867)
|
|
1,011,073
|
Net
increase (decrease) in net assets resulting from operations
|
|
(3,081,681)
|
|
2,972,167
|
Distributions
to shareholders |
|
(1,135,614)
|
|
(1,988,314)
|
Share
transactions - net increase (decrease) |
|
386,400
|
|
5,865,171
|
Total
increase (decrease) in net assets |
|
(3,830,895)
|
|
6,849,024
|
|
|
|
|
|
Net
Assets |
|
|
|
|
Beginning
of period |
|
28,833,841
|
|
21,984,817
|
End
of period |
$
|
25,002,946
|
$
|
28,833,841
|
|
|
|
|
|
|
|
|
|
|
Financial
Highlights
Years
ended March 31, |
|
2023
|
|
2022
|
|
2021
|
|
2020
|
|
2019
A
|
Selected Per-Share
Data
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning
of period |
$
|
13.61
|
$
|
13.11
|
$
|
8.81
|
$
|
10.23
|
$
|
10.57
|
Income from Investment
Operations |
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) B,C
|
|
.04
|
|
(.01)
|
|
-
D
|
|
.04
|
|
.06
|
Net realized and unrealized gain (loss)
|
|
(1.51)
|
|
1.59
|
|
4.34
|
|
.06
|
|
.57
|
Total from investment
operations |
|
(1.47)
|
|
1.58
|
|
4.34
|
|
.10
|
|
.63
|
Distributions from net
investment income |
|
(.03)
|
|
-
|
|
-
|
|
(.05)
|
|
(.06)
|
Distributions from net
realized gain |
|
(.51)
|
|
(1.08)
|
|
(.04)
|
|
(1.47)
|
|
(.91)
|
Total distributions |
|
(.54)
|
|
(1.08)
|
|
(.04)
|
|
(1.52)
|
|
(.97)
|
Net asset value, end of
period |
$
|
11.60
|
$
|
13.61
|
$
|
13.11
|
$
|
8.81
|
$
|
10.23
|
Total Return
E
|
|
(10.73)%
|
|
11.93%
|
|
49.27%
|
|
(.67)%
|
|
6.51%
|
Ratios to Average Net Assets C,F,G
|
|
|
|
|
|
|
|
|
|
|
Expenses before reductions
|
|
.52%
|
|
.68%
|
|
.79%
|
|
.76%
|
|
.67%
|
Expenses net of fee
waivers, if any |
|
.52%
|
|
.68%
|
|
.79%
|
|
.76%
|
|
.67%
|
Expenses net of all
reductions |
|
.52%
|
|
.68%
|
|
.78%
|
|
.76%
|
|
.66%
|
Net investment income
(loss) |
|
.37%
|
|
(.07)%
|
|
(.01)%
|
|
.38%
|
|
.60%
|
Supplemental Data |
|
|
|
|
|
|
|
|
|
|
Net assets, end of period
(in millions) |
$
|
24,279
|
$
|
27,917
|
$
|
21,002
|
$
|
14,668
|
$
|
14,729
|
Portfolio turnover rate
H
|
|
86%
I
|
|
53%
I,J
|
|
56%
I
|
|
106%
I
|
|
42%
I
|
A Per
share amounts have been adjusted to reflect the impact of the 10 for 1 share
split that occurred on August 10, 2018.
B Calculated
based on average shares outstanding during the period.
C Net
investment income (loss) is affected by the timing of the declaration of
dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net
investment income (loss) of any mutual funds or ETFs is not included in the
Fund's net investment income (loss) ratio.
D Amount
represents less than $.005 per share.
E Total
returns would have been lower if certain expenses had not been reduced during
the applicable periods shown.
F Fees
and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are
not included in the Fund's expense ratio. The Fund indirectly bears its
proportionate share of these expenses. For additional expense information
related to investments in Fidelity Central Funds, please refer to the
"Investments in Fidelity Central Funds" note found in the Notes to Financial
Statements section of the most recent Annual or Semi-Annual report.
G Expense
ratios reflect operating expenses of the class. Expenses before reductions do
not reflect amounts reimbursed, waived, or reduced through arrangements with the
investment adviser, brokerage services, or other offset arrangements, if
applicable, and do not represent the amount paid by the class during periods
when reimbursements, waivers or reductions occur.
H Amount
does not include the portfolio activity of any underlying mutual funds or
exchange-traded funds (ETFs).
I Portfolio
turnover rate excludes securities received or delivered in-kind.
J The
portfolio turnover rate does not include the assets acquired in the
merger.
Fidelity®
Magellan® Fund Class K |
|
Years
ended March 31, |
|
2023
|
|
2022
|
|
2021
|
|
2020
|
|
2019
A
|
Selected Per-Share
Data
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning
of period |
$
|
13.60
|
$
|
13.09
|
$
|
8.79
|
$
|
10.22
|
$
|
10.56
|
Income from Investment
Operations |
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) B,C
|
|
.05
|
|
-
D
|
|
.01
|
|
.05
|
|
.07
|
Net realized and unrealized gain (loss)
|
|
(1.52)
|
|
1.60
|
|
4.33
|
|
.05
|
|
.57
|
Total from investment
operations |
|
(1.47)
|
|
1.60
|
|
4.34
|
|
.10
|
|
.64
|
Distributions from net
investment income |
|
(.04)
|
|
-
|
|
-
|
|
(.06)
|
|
(.07)
|
Distributions from net
realized gain |
|
(.51)
|
|
(1.09)
|
|
(.04)
|
|
(1.47)
|
|
(.91)
|
Total distributions |
|
(.54)
E
|
|
(1.09)
|
|
(.04)
|
|
(1.53)
|
|
(.98)
|
Net asset value, end of
period |
$
|
11.59
|
$
|
13.60
|
$
|
13.09
|
$
|
8.79
|
$
|
10.22
|
Total Return
F
|
|
(10.69)%
|
|
12.07%
|
|
49.38%
|
|
(.71)%
|
|
6.63%
|
Ratios to Average Net Assets C,G,H
|
|
|
|
|
|
|
|
|
|
|
Expenses before reductions
|
|
.45%
|
|
.62%
|
|
.71%
|
|
.68%
|
|
.58%
|
Expenses net of fee
waivers, if any |
|
.44%
|
|
.61%
|
|
.71%
|
|
.68%
|
|
.58%
|
Expenses net of all
reductions |
|
.44%
|
|
.61%
|
|
.71%
|
|
.68%
|
|
.58%
|
Net investment income
(loss) |
|
.44%
|
|
-%
I
|
|
.07%
|
|
.46%
|
|
.69%
|
Supplemental Data |
|
|
|
|
|
|
|
|
|
|
Net assets, end of period
(in millions) |
$
|
724
|
$
|
917
|
$
|
983
|
$
|
1,021
|
$
|
1,590
|
Portfolio turnover rate
J
|
|
86%
K
|
|
53%
K,L
|
|
56%
K
|
|
106%
K
|
|
42%
K
|
A Per
share amounts have been adjusted to reflect the impact of the 10 for 1 share
split that occurred on August 10, 2018.
B Calculated
based on average shares outstanding during the period.
C Net
investment income (loss) is affected by the timing of the declaration of
dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net
investment income (loss) of any mutual funds or ETFs is not included in the
Fund's net investment income (loss) ratio.
D Amount
represents less than $.005 per share.
E Total
distributions per share do not sum due to rounding.
F Total
returns would have been lower if certain expenses had not been reduced during
the applicable periods shown.
G Fees
and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are
not included in the Fund's expense ratio. The Fund indirectly bears its
proportionate share of these expenses. For additional expense information
related to investments in Fidelity Central Funds, please refer to the
"Investments in Fidelity Central Funds" note found in the Notes to Financial
Statements section of the most recent Annual or Semi-Annual report.
H Expense
ratios reflect operating expenses of the class. Expenses before reductions do
not reflect amounts reimbursed, waived, or reduced through arrangements with the
investment adviser, brokerage services, or other offset arrangements, if
applicable, and do not represent the amount paid by the class during periods
when reimbursements, waivers or reductions occur.
I Amount
represents less than .005%.
J Amount
does not include the portfolio activity of any underlying mutual funds or
exchange-traded funds (ETFs).
K Portfolio
turnover rate excludes securities received or delivered in-kind.
L The
portfolio turnover rate does not include the assets acquired in the
merger.
For
the period ended March 31, 2023
(
Amounts
in thousands except percentages)
1.
Organization.
Fidelity
Magellan Fund (the Fund) is a fund of Fidelity Magellan Fund (the Trust) and is
authorized to issue an unlimited number of shares. The Trust is registered under
the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end
management investment company organized as a Massachusetts business trust. The
Fund offers Magellan and Class K shares, each of which has equal rights as to
assets and voting privileges. Each class has exclusive voting rights with
respect to matters that affect that class.
2.
Investments in Fidelity Central Funds.
Funds
may invest in Fidelity Central Funds, which are open-end investment companies
generally available only to other investment companies and accounts managed by
the investment adviser and its affiliates. The Schedule of Investments lists any
Fidelity Central Funds held as an investment as of period end, but does not
include the underlying holdings of each Fidelity Central Fund. An investing fund
indirectly bears its proportionate share of the expenses of the underlying
Fidelity Central Funds.
Based
on its investment objective, each Fidelity Central Fund may invest or
participate in various investment vehicles or strategies that are similar to
those of the investing fund. These strategies are consistent with the investment
objectives of the investing fund and may involve certain economic risks which
may cause a decline in value of each of the Fidelity Central Funds and thus a
decline in the value of the investing fund.
Fidelity
Central Fund |
Investment
Manager |
Investment
Objective |
Investment
Practices |
Expense
Ratio A
|
Fidelity
Money Market Central Funds |
Fidelity
Management & Research Company LLC (FMR) |
Each
fund seeks to obtain a high level of current income consistent with the
preservation of capital and liquidity. |
Short-term
Investments |
Less
than .005% |
A
Expenses
expressed as a percentage of average net assets and are as of each underlying
Central Fund's most recent annual or semi-annual shareholder report.
A
complete unaudited list of holdings for each Fidelity Central Fund is available
upon request or at the Securities and Exchange Commission website at
www.sec.gov. In addition, the financial statements of the Fidelity Central Funds
which contain the significant accounting policies (including investment
valuation policies) of those funds, and are not covered by the Report of
Independent Registered Public Accounting Firm, are available on the Securities
and Exchange Commission website or upon request.
3.
Significant Accounting Policies.
The
Fund is an investment company and applies the accounting and reporting guidance
of the Financial Accounting Standards Board (FASB) Accounting Standards
Codification Topic 946 Financial
Services - Investment Companies .
The financial statements have been prepared in conformity with accounting
principles generally accepted in the United States of America (GAAP), which
require management to make certain estimates and assumptions at the date of the
financial statements. Actual results could differ from those estimates.
Subsequent events, if any, through the date that the financial statements were
issued have been evaluated in the preparation of the financial statements. The
Fund's Schedule of Investments lists any underlying mutual funds or
exchange-traded funds (ETFs) but does not include the underlying holdings of
these funds. The following summarizes the significant accounting policies of the
Fund:
Investment
Valuation. Investments
are valued as of 4:00 p.m. Eastern time on the last calendar day of the period.
The Board of Trustees (the Board) has designated the Fund's investment adviser
as the valuation designee responsible for the fair valuation function and
performing fair value determinations as needed. The investment adviser has
established a Fair Value Committee (the Committee) to carry out the day-to-day
fair valuation responsibilities and has adopted policies and procedures to
govern the fair valuation process and the activities of the Committee. In
accordance with these fair valuation policies and procedures, which have been
approved by the Board, the Fund attempts to obtain prices from one or more third
party pricing services or brokers to value its investments. When current market
prices, quotations or currency exchange rates are not readily available or
reliable, investments will be fair valued in good faith by the Committee, in
accordance with the policies and procedures. Factors used in determining fair
value vary by investment type and may include market or investment specific
events, transaction data, estimated cash flows, and market observations of
comparable investments. The frequency that the fair valuation procedures are
used cannot be predicted and they may be utilized to a significant extent. The
Committee manages the Fund's fair valuation practices and maintains the fair
valuation policies and procedures. The Fund's investment adviser reports to the
Board information regarding the fair valuation process and related material
matters.
The
Fund categorizes the inputs to valuation techniques used to value its
investments into a disclosure hierarchy consisting of three levels as shown
below:
Level
1 - unadjusted quoted prices in active markets for identical investments
Level
2 - other significant observable inputs (including quoted prices for similar
investments, interest rates, prepayment speeds, etc.)
Level
3 - unobservable inputs (including the Fund's own assumptions based on the best
information available)
Valuation
techniques used to value the Fund's investments by major category are as
follows:
Equity
securities, including restricted securities, for which market quotations are
readily available, are valued at the last reported sale price or official
closing price as reported by a third party pricing service on the primary market
or exchange on which they are traded and are categorized as Level 1 in the
hierarchy. In the event there were no sales during the day or closing prices are
not available, securities are valued at the last quoted bid price or may be
valued using the last available price and are generally categorized as Level 2
in the hierarchy. For foreign equity securities, when market or security
specific events arise, comparisons to the valuation of American Depositary
Receipts (ADRs), futures contracts, ETFs and certain indexes as well as quoted
prices for similar securities may be used and would be categorized as Level 2 in
the hierarchy. For equity securities, including restricted securities, where
observable inputs are limited, assumptions about market activity and risk are
used and these securities may be categorized as Level 3 in the hierarchy.
Investments
in open-end mutual funds, including the Fidelity Central Funds, are valued at
their closing net asset value (NAV) each business day and are categorized as
Level 1 in the hierarchy.
Changes
in valuation techniques may result in transfers in or out of an assigned level
within the disclosure hierarchy. The aggregate value of investments by input
level as of March 31, 2023 is included at the end of the Fund's Schedule of
Investments.
Investment
Transactions and Income. For
financial reporting purposes, the Fund's investment holdings and NAV include
trades executed through the end of the last business day of the period. The NAV
per share for processing shareholder transactions is calculated as of the close
of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern
time and includes trades executed through the end of the prior business day.
Gains and losses on securities sold are determined on the basis of identified
cost
and
include proceeds received from litigation. Commissions paid to certain brokers
with whom the investment adviser, or its affiliates, places trades on behalf of
a fund include an amount in addition to trade execution, which may be rebated
back to a fund. Any such rebates are included in net realized gain (loss) on
investments in the Statement of Operations. 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. Income and capital gain distributions from Fidelity Central Funds, if
any, are recorded on the ex-dividend date. Certain distributions received by the
Fund represent a return of capital or capital gain. The Fund determines the
components of these distributions subsequent to the ex-dividend date, based upon
receipt of tax filings or other correspondence relating to the underlying
investment. These distributions are recorded as a reduction of cost of
investments and/or as a realized gain.
Class
Allocations and Expenses. Investment
income, realized and unrealized capital gains and losses, common expenses of a
fund, and certain fund-level expense reductions, if any, are allocated daily on
a pro-rata basis to each class based on the relative net assets of each class to
the total net assets of a fund. Each class differs with respect to transfer
agent and distribution and service plan fees incurred, as applicable. Certain
expense reductions may also differ by class, if applicable. For the reporting
period, the allocated portion of income and expenses to each class as a percent
of its average net assets may vary due to the timing of recording these
transactions in relation to fluctuating net assets of the classes. Expenses
directly attributable to a fund are charged to that fund. Expenses attributable
to more than one fund are allocated among the respective funds on the basis of
relative net assets or other appropriate methods. Expenses included in the
accompanying financial statements reflect the expenses of that fund and do not
include any expenses associated with any underlying mutual funds or
exchange-traded funds. Although not included in a fund's expenses, a fund
indirectly bears its proportionate share of these expenses through the net asset
value of each underlying mutual fund or exchange-traded fund. Expense estimates
are accrued in the period to which they relate and adjustments are made when
actual amounts are known.
Deferred
Trustee Compensation. Under
a Deferred Compensation Plan (the Plan) for certain Funds, certain independent
Trustees have elected to defer receipt of a portion of their annual
compensation. Deferred amounts are invested in affiliated mutual funds, are
marked-to-market and remain in a fund until distributed in accordance with the
Plan. The investment of deferred amounts and the offsetting payable to the
Trustees presented below are included in the accompanying Statement of Assets
and Liabilities in other receivables and other payables and accrued expenses, as
applicable.
Fidelity
Magellan Fund |
$941
|
Income
Tax Information and Distributions to Shareholders. Each
year, the Fund intends to qualify as a regulated investment company under
Subchapter M of the Internal Revenue Code, including distributing substantially
all of its taxable income and realized gains. As a result, no provision for U.S.
Federal income taxes is required. As of March 31, 2023, the Fund did not have
any unrecognized tax benefits in the financial statements; nor is the Fund aware
of any tax positions for which it is reasonably possible that the total amounts
of unrecognized tax benefits will significantly change in the next twelve
months. The Fund files a U.S. federal tax return, in addition to state and local
tax returns as required. The Fund's federal income tax returns are subject to
examination by the Internal Revenue Service (IRS) for a period of three fiscal
years after they are filed. State and local tax returns may be subject to
examination for an additional fiscal year depending on the jurisdiction.
Distributions
are declared and recorded on the ex-dividend date. Income and capital gain
distributions are declared separately for each class. Income and capital gain
distributions are determined in accordance with income tax regulations, which
may differ from GAAP. In addition, the Fund claimed a portion of the payment
made to redeeming shareholders as a distribution for income tax purposes.
Capital
accounts within the financial statements are adjusted for permanent book-tax
differences. These adjustments have no impact on net assets or the results of
operations. Capital accounts are not adjusted for temporary book-tax differences
which will reverse in a subsequent period.
Book-tax
differences are primarily due to redemptions in kind, partnerships, and losses
deferred due to wash sales.
As
of period end, the cost and unrealized appreciation (depreciation) in
securities, and derivatives if applicable, for federal income tax purposes were
as follows:
Gross
unrealized appreciation |
$6,746,566
|
Gross
unrealized depreciation |
(387,613)
|
Net
unrealized appreciation (depreciation) |
$6,358,953
|
Tax
Cost |
$18,758,947
|
The
tax-based components of distributable earnings as of period end were as
follows:
Undistributed
ordinary income |
$28,634
|
Undistributed
long-term capital gain |
$2,670,996
|
Net
unrealized appreciation (depreciation) on securities and other investments
|
$6,358,953
|
The
tax character of distributions paid was as follows:
|
March
31, 2023 |
March
31, 2022 |
Ordinary
Income |
$62,809
|
$44,037
|
Long-term
Capital Gains |
1,072,805
|
1,944,277
|
Total
|
$1,135,614
|
$1,988,314
|
4.
Purchases and Sales of Investments.
Purchases
and sales of securities, other than short-term securities and in-kind
transactions, as applicable, are noted in the table below.
|
Purchases
($) |
Sales
($) |
Fidelity
Magellan Fund |
21,172,383
|
21,840,927
|
Unaffiliated
Redemptions In-Kind. Shares
that were redeemed in-kind for investments, including accrued interest and cash,
if any, are shown in the table below. The net realized gain or loss on
investments delivered through in-kind redemptions is included in the "Net
realized gain (loss) on: Redemptions in-kind" line in the accompanying Statement
of Operations. The amount of the in-kind redemptions is included in share
transactions in the accompanying Statement of Changes in Net Assets. There was
no gain or loss for federal income tax purposes.
|
Shares
|
Total
net realized gain or loss
($)
|
Total
Proceeds
($)
|
Participating
classes |
Fidelity
Magellan Fund |
2,099
|
11,686
|
24,005
|
Magellan
and Class K |
Prior
Fiscal Year Unaffiliated Redemptions In-Kind. Shares
that were redeemed in-kind for investments, including accrued interest and cash,
if any, are shown in the table below; along with realized gain or loss on
investments delivered through in-kind redemptions. The amount of the in-kind
redemptions is included in share transactions in the accompanying Statement of
Changes in Net Assets. There was no gain or loss for federal income tax
purposes.
|
Shares
|
Total
net realized gain or loss
($)
|
Total
Proceeds
($)
|
Participating
classes |
Fidelity
Magellan Fund |
6,596
|
47,944
|
89,712
|
Class
K |
5.
Fees and Other Transactions with Affiliates.
Management
Fee. Fidelity
Management & Research Company LLC (the investment adviser) and its
affiliates provide the Fund with investment management related services for
which the Fund pays a monthly management fee. The management fee is the sum of
an individual fund fee rate that is based on an annual rate of .30% of the
Fund's average net assets and an annualized group fee rate that averaged .23%
during the period. The group fee rate is based upon the monthly average net
assets of a group of registered investment companies with which the investment
adviser has management contracts. The group fee rate decreases as assets under
management increase and increases as assets under management decrease. In
addition, the management fee is subject to a performance adjustment (up to a
maximum of +/- .20% of the Fund's average net assets over a 36 month performance
period). The upward or downward adjustment to the management fee is based on the
relative investment performance of Magellan as compared to its benchmark index,
the S&P 500 Index, over the same 36 month performance period. For the
reporting period, the total annual management fee rate, including the
performance adjustment, was .39% of the Fund's average net assets. The
performance adjustment included in the management fee rate may be higher or
lower than the maximum performance adjustment rate due to the difference between
the average net assets for the reporting and performance periods.
Transfer
Agent Fees. Fidelity
Investments Institutional Operations Company LLC (FIIOC), an affiliate of the
investment adviser, is the transfer, dividend disbursing and shareholder
servicing agent for each class of the Fund. FIIOC receives account fees and
asset-based fees that vary according to the account size and type of account of
the shareholders of the respective classes of the Fund, except for Class
K.
FIIOC
receives an asset-based fee of Class K's average net assets. FIIOC pays for
typesetting, printing and mailing of shareholder reports, except proxy
statements.
For
the period, transfer agent fees for each class were as follows:
|
Amount
|
%
of Class-Level Average Net Assets |
Magellan
|
$27,367
|
.11
|
Class
K |
309
|
.04
|
|
$27,676
|
|
Accounting
Fees. Fidelity
Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains
the Fund's accounting records. The accounting fee is based on the level of
average net assets for each month. For the period, the fees were equivalent to
the following annual rates:
|
%
of Average Net Assets |
Fidelity
Magellan Fund |
.01
|
Brokerage
Commissions. A
portion of portfolio transactions were placed with brokerage firms which are
affiliates of the investment adviser. Brokerage commissions are included in net
realized gain (loss) and change in net unrealized appreciation (depreciation) in
the Statement of Operations. The commissions paid to these affiliated firms were
as follows:
|
Amount
|
Fidelity
Magellan Fund |
$250
|
Interfund
Lending Program. Pursuant
to an Exemptive Order issued by the Securities and Exchange Commission (the
SEC), the Fund, along with other registered investment companies having
management contracts with Fidelity Management & Research Company LLC (FMR),
or other affiliated entities of FMR, may participate in an interfund lending
program. This program provides an alternative credit facility allowing the Fund
to borrow from, or lend money to, other participating affiliated funds. At
period end, there were no interfund loans outstanding. Activity in this program
during the period for which loans were outstanding was as follows:
|
Borrower
or Lender |
Average
Loan Balance |
Weighted
Average Interest Rate |
Interest
Expense |
Fidelity
Magellan Fund |
Borrower
|
$81,270
|
2.41%
|
$251
|
Interfund
Trades. Funds
may purchase from or sell securities to other Fidelity Funds under procedures
adopted by the Board. The procedures have been designed to ensure these
interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Any
interfund trades are included within the respective purchases and sales amounts
shown in the Purchases and Sales of Investments note. Interfund trades during
the period are noted in the table below.
|
Purchases
($) |
Sales
($) |
Realized
Gain (Loss) ($) |
Fidelity
Magellan Fund |
1,895,819
|
495,821
|
16,498
|
6.
Committed Line of Credit.
Certain
Funds participate with other funds managed by the investment adviser or an
affiliate in a $4.25 billion credit facility (the "line of credit") to be
utilized for temporary or emergency purposes to fund shareholder redemptions or
for other short-term liquidity purposes. The participating funds have agreed to
pay commitment fees on their pro-rata portion of the line of credit, which are
reflected in Miscellaneous expenses on the Statement of Operations, and are
listed below. During the period, there were no borrowings on this line of
credit.
|
Amount
|
Fidelity
Magellan Fund |
$46
|
7.
Security Lending.
Funds
lend portfolio securities from time to time in order to earn additional income.
Lending agents are used, including National Financial Services (NFS), an
affiliate of the investment adviser. Pursuant to a securities lending agreement,
NFS will receive a fee, which is capped at 9.9% of a fund's daily lending
revenue, for its services as lending agent. A fund may lend securities to
certain qualified borrowers, including NFS. On the settlement date of the loan,
a 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 a fund and any additional required collateral is
delivered to a fund on the next business day. A fund or borrower may terminate
the loan at any time, and if the borrower defaults on its obligation to return
the securities loaned because of insolvency or other reasons, a fund may apply
collateral received from the borrower against the obligation. A fund may
experience delays and costs in recovering the securities loaned. Any cash
collateral received is invested in the Fidelity Securities Lending Cash Central
Fund. Any loaned securities are identified as such in the Schedule of
Investments, and the value of loaned securities and cash collateral at period
end, as applicable, are presented in the Statement of Assets and Liabilities.
Security lending income represents the income earned on investing cash
collateral, less rebates paid to borrowers and any lending agent fees associated
with the loan, plus any premium payments received for lending certain types of
securities. Security lending income is presented in the Statement of Operations
as a component of income from Fidelity Central Funds. Affiliated security
lending activity, if any, was as follows:
|
Total
Security Lending Fees Paid to NFS |
Security
Lending Income From Securities Loaned to NFS |
Value
of Securities Loaned to NFS at Period End |
Fidelity
Magellan Fund |
$10
|
$-
|
$-
|
8.
Expense Reductions.
In
addition, during the period the investment adviser or an affiliate reimbursed
and/or waived a portion of fund-level operating expenses in the amount of
$878.
9.
Distributions to Shareholders.
Distributions
to shareholders of each class were as follows:
|
Year
ended March 31, 2023 |
Year
ended March 31, 2022 |
Fidelity
Magellan Fund |
|
|
Distributions
to shareholders |
|
|
Magellan
|
$1,099,884
|
$1,909,993
|
Class
K |
35,730
|
78,321
|
Total
|
$1,135,614
|
$1,988,314
|
10.
Share Transactions.
Share
transactions for each class were as follows and may contain in-kind
transactions, automatic conversions between classes or exchanges between
affiliated funds:
|
Shares
|
Shares
|
Dollars
|
Dollars
|
|
Year
ended March 31, 2023 |
Year
ended
March
31, 2022 |
Year
ended March 31, 2023 |
Year
ended
March
31, 2022 |
Fidelity
Magellan Fund |
|
|
|
|
Magellan
|
|
|
|
|
Shares
sold |
153,173
|
168,834
|
$1,686,751
|
$2,389,186
|
Issued
in exchange for the shares of the Target Fund(s) |
-
|
320,281
|
-
|
4,160,451
|
Reinvestment
of distributions |
91,862
|
128,265
|
1,046,758
|
1,814,997
|
Shares
redeemed |
(203,224)
|
(168,241)
|
(2,290,859)
|
(2,369,640)
|
Net
increase (decrease) |
41,811
|
449,139
|
$442,650
|
$5,994,994
|
Class
K |
|
|
|
|
Shares
sold |
4,881
|
4,165
|
$55,650
|
$50,499
|
Issued
in exchange for the shares of the Target Fund(s) |
-
|
13,419
|
-
|
174,174
|
Reinvestment
of distributions |
3,136
|
5,569
|
35,730
|
78,321
|
Shares
redeemed |
(13,039)
|
(30,777)
|
(147,630)
|
(432,817)
|
Net
increase (decrease) |
(5,022)
|
(7,624)
|
$(56,250)
|
$(129,823)
|
11.
Other.
A
fund's organizational documents provide former and current trustees and officers
with a limited indemnification against liabilities arising in connection with
the performance of their duties to the fund. In the normal course of business, a
fund may also enter into contracts that provide general indemnifications. A
fund's maximum exposure under these arrangements is unknown as this would be
dependent on future claims that may be made against a fund. The risk of material
loss from such claims is considered remote.
In
addition, at the end of the period, the following mutual funds managed by the
investment adviser or its affiliates were the owners of record of 10% or more of
the total outstanding shares.
|
Strategic
Advisers Fidelity U.S. Total Stock Fund |
Fidelity
Magellan Fund |
18%
|
12.
Risk and Uncertainties.
Many
factors affect a fund's performance. Developments that disrupt global economies
and financial markets, such as pandemics, epidemics, outbreaks of infectious
diseases, war, terrorism, and environmental disasters, may significantly affect
a fund's investment performance. The effects of these developments to a fund
will be impacted by the types of securities in which a fund invests, the
financial condition, industry, economic sector, and geographic location of an
issuer, and a fund's level of investment in the securities of that issuer.
Significant concentrations in security types, issuers, industries, sectors, and
geographic locations may magnify the factors that affect a fund's performance.
13.
Prior Fiscal Year Merger Information.
On
May 14, 2021, the Fund acquired all of the assets and assumed all of the
liabilities of Fidelity Independence Fund ("Target Fund") pursuant to an
Agreement and Plan of Reorganization approved by the Board of Trustees ("The
Board"). The securities held by the Target Fund were the primary assets acquired
by the Fund. The acquisition was accomplished by an exchange of each class of
the Fund for corresponding shares then outstanding of the Target Fund at their
respective net asset value on the acquisition date. The reorganization provides
shareholders of the Target Fund access to a larger portfolio with a similar
investment objective and lower projected expenses. For financial reporting
purposes, the assets and liabilities of the Target Fund and shares issued by the
Fund were recorded at fair value; however, the cost basis of the investments
received from the Target Fund were carried forward and will be utilized for
purposes of the Fund's ongoing reporting of realized and unrealized gains and
losses to more closely align subsequent reporting of realized gains with amounts
distributable to shareholders for tax purposes.
The
reorganization qualified as a tax-free reorganization for federal income tax
purposes with no gain or loss recognized to the funds or their shareholders.
Target
Fund and Share Class |
Investments
($) |
Unrealized
appreciation (depreciation) ($) |
Net
Assets ($) |
Shares
Exchanged |
Shares
Exchanged Ratio |
Fidelity
Independence Fund |
4,342,458
|
1,920,070
|
|
|
|
Independence
|
|
|
4,160,451
|
320,281
|
3.4635565820
|
Class
K |
|
|
174,174
|
13,419
|
3.4696533128
|
Surviving
Fund |
Net
Assets ($) |
Total
net assets after the acquisition ($) |
Fidelity
Magellan Fund |
22,826,812
|
27,161,437
|
Pro
forma results of operations of the combined entity for the entire period ended
March 31, 2022, as though the acquisition had occurred as of the beginning of
the year (rather than on the actual acquisition date), are as follows:
|
Amount
($) |
Net
investment income (loss) |
(20,135)
|
Total
net realized gain (loss) |
2,043,032
|
Total
change in net unrealized appreciation (depreciation) |
1,112,970
|
Net
increase (decrease) in net assets resulting from operations
|
3,135,867
|
Because
the combined investment portfolios have been managed as a single portfolio since
the acquisition was completed, it is not practicable to separate the amounts of
revenue and earnings of the acquired fund that have been included in the Fund's
Statement of Operations since May 14, 2021.
To
the Board of Trustees of Fidelity Magellan Fund and Shareholders of Fidelity
Magellan Fund
Opinion
on the Financial Statements
We
have audited the accompanying statement of assets and liabilities, including the
schedule of investments, of Fidelity Magellan Fund (one of the funds
constituting Fidelity Magellan Fund, referred to hereafter as the "Fund") as of
March 31, 2023, the related statement of operations for the year ended March 31,
2023, the statement of changes in net assets for each of the two years in the
period ended March 31, 2023, including the related notes, and the financial
highlights for each of the five years in the period ended March 31, 2023
(collectively referred to as the "financial statements"). In our opinion, the
financial statements present fairly, in all material respects, the financial
position of the Fund as of March 31, 2023, the results of its operations for the
year then ended, the changes in its net assets for each of the two years in the
period ended March 31, 2023 and the financial highlights for each of the five
years in the period ended March 31, 2023 in conformity with accounting
principles generally accepted in the United States of America.
Basis
for Opinion
These
financial statements are the responsibility of the Fund's management. Our
responsibility is to express an opinion on the Fund's financial statements based
on our audits. We are a public accounting firm registered with the Public
Company Accounting Oversight Board (United States) (PCAOB) and are required to
be independent with respect to the Fund in accordance with the U.S. federal
securities laws and the applicable rules and regulations of the Securities and
Exchange Commission and the PCAOB.
We
conducted our audits of these financial statements in accordance with the
standards of the PCAOB. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are
free of material misstatement, whether due to error or fraud.
Our
audits included performing procedures to assess the risks of material
misstatement of the financial statements, whether due to error or fraud, and
performing procedures that respond to those risks. Such procedures included
examining, on a test basis, evidence regarding the amounts and disclosures in
the financial statements. Our audits also included evaluating the accounting
principles used and significant estimates made by management, as well as
evaluating the overall presentation of the financial statements. Our procedures
included confirmation of securities owned as of March 31, 2023 by correspondence
with the custodian and brokers; when replies were not received from brokers, we
performed other auditing procedures. We believe that our audits provide a
reasonable basis for our opinion.
/s/
PricewaterhouseCoopers LLP
Boston,
Massachusetts
May
12, 2023
We
have served as the auditor of one or more investment companies in the Fidelity
group of funds since 1932.
The
Trustees, Members of the Advisory Board (if any), and 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, oversee management of the risks associated with
such activities and contractual arrangements, and review the fund's performance.
Each of the Trustees oversees 318 funds.
The
Trustees hold office without limit in time except that (a) any Trustee may
resign; (b) any Trustee may be removed by written instrument, signed by at least
two-thirds of the number of Trustees prior to such removal; (c) any Trustee who
requests to be retired or who has become incapacitated by illness or injury may
be retired by written instrument signed by a majority of the other Trustees; and
(d) any Trustee may be removed at any special meeting of shareholders by a
two-thirds vote of the outstanding voting securities of the trust. Each Trustee
who is not an interested person (as defined in the 1940 Act) of the trust and
the fund is referred to herein as an Independent Trustee. Each Independent
Trustee shall retire not later than the last day of the calendar year in which
his or her 75th birthday occurs. The Independent Trustees may waive this
mandatory retirement age policy with respect to individual Trustees. Officers
and Advisory Board Members hold office without limit in time, except that any
officer or Advisory Board Member may resign or may be removed by a vote of a
majority of the Trustees at any regular meeting or any special meeting of the
Trustees. Except as indicated, each individual has held the office shown or
other offices in the same company for the past five years.
The
fund's Statement of Additional Information (SAI) includes more information about
the Trustees. To request a free copy, call Fidelity at 1-800-544-8544 if you're
an individual investing directly with Fidelity, call 1-800-835-5092 if you're a
plan sponsor or participant with Fidelity as your recordkeeper or call
1-877-208-0098 on institutional accounts or if you're an advisor or invest
through one.
Experience,
Skills, Attributes, and Qualifications of the Trustees.
The
Governance and Nominating Committee has adopted a statement of policy that
describes the experience, qualifications, attributes, and skills that are
necessary and desirable for potential Independent Trustee candidates (Statement
of Policy). The Board believes that each Trustee satisfied at the time he or she
was initially elected or appointed a Trustee, and continues to satisfy, the
standards contemplated by the Statement of Policy. The Governance and Nominating
Committee also engages professional search firms to help identify potential
Independent Trustee candidates who have the experience, qualifications,
attributes, and skills consistent with the Statement of Policy. From time to
time, additional criteria based on the composition and skills of the current
Independent Trustees, as well as experience or skills that may be appropriate in
light of future changes to board composition, business conditions, and
regulatory or other developments, have also been considered by the professional
search firms and the Governance and Nominating Committee. In addition, the Board
takes into account the Trustees' commitment and participation in Board and
committee meetings, as well as their leadership of standing and ad hoc
committees throughout their tenure.
In
determining that a particular Trustee was and continues to be qualified to serve
as a Trustee, the Board has considered a variety of criteria, none of which, in
isolation, was controlling. The Board believes that, collectively, the Trustees
have balanced and diverse experience, qualifications, attributes, and skills,
which allow the Board to operate effectively in governing the fund and
protecting the interests of shareholders. Information about the specific
experience, skills, attributes, and qualifications of each Trustee, which in
each case led to the Board's conclusion that the Trustee should serve (or
continue to serve) as a trustee of the fund, is provided below.
Board
Structure and Oversight Function. Robert
A. Lawrence is an interested person and currently serves as Chair. The Trustees
have determined that an interested Chair is appropriate and benefits
shareholders because an interested Chair has a personal and professional stake
in the quality and continuity of services provided to the fund. Independent
Trustees exercise their informed business judgment to appoint an individual of
their choosing to serve as Chair, regardless of whether the Trustee happens to
be independent or a member of management. The Independent Trustees have
determined that they can act independently and effectively without having an
Independent Trustee serve as Chair and that a key structural component for
assuring that they are in a position to do so is for the Independent Trustees to
constitute a substantial majority for the Board. The Independent Trustees also
regularly meet in executive session. David M. Thomas serves as Lead Independent
Trustee and as such (i) acts as a liaison between the Independent Trustees and
management with respect to matters important to the Independent Trustees and
(ii) with management prepares agendas for Board meetings.
Fidelity
®
funds
are overseen by different Boards of Trustees. The fund's Board oversees
Fidelity's high income and certain equity funds, and other Boards oversee
Fidelity's alternative investment, investment-grade bond, money market, asset
allocation, and other equity funds. The asset allocation funds may invest in
Fidelity ®
funds
overseen by the fund's Board. The use of separate Boards, each with its own
committee structure, allows the Trustees of each group of Fidelity ®
funds
to focus on the unique issues of the funds they oversee, including common
research, investment, and operational issues. On occasion, the separate Boards
establish joint committees to address issues of overlapping consequences for the
Fidelity ®
funds
overseen by each Board.
The
Trustees operate using a system of committees to facilitate the timely and
efficient consideration of all matters of importance to the Trustees, the fund,
and fund shareholders and to facilitate compliance with legal and regulatory
requirements and oversight of the fund's activities and associated risks. The
Board, acting through its committees, has charged FMR and its affiliates with
(i) identifying events or circumstances the occurrence of which could have
demonstrably adverse effects on the fund's business and/or reputation; (ii)
implementing processes and controls to lessen the possibility that such events
or circumstances occur or to mitigate the effects of such events or
circumstances if they do occur; and (iii) creating and maintaining a system
designed to evaluate continuously business and market conditions in order to
facilitate the identification and implementation processes described in (i) and
(ii) above. Because the day-to-day operations and activities of the fund are
carried out by or through FMR, its affiliates, and other service providers, the
fund's exposure to risks is mitigated but not eliminated by the processes
overseen by the Trustees. While each of the Board's committees has
responsibility for overseeing different aspects of the fund's activities,
oversight is exercised primarily through the Operations, Audit, and Compliance
Committees. Appropriate personnel, including but not limited to the fund's Chief
Compliance Officer (CCO), FMR's internal auditor, the independent accountants,
the fund's Treasurer and portfolio management personnel, make periodic reports
to the Board's committees, as appropriate, including an annual review of
Fidelity's risk management program for the Fidelity ®
funds.
The responsibilities of each standing committee, including their oversight
responsibilities, are described further under "Standing Committees of the
Trustees."
Interested
Trustees*:
Correspondence
intended for a Trustee who is an interested person may be sent to Fidelity
Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name,
Year of Birth; Principal Occupations and Other Relevant Experience+
Bettina
Doulton (1964)
Year
of Election or Appointment: 2020
Trustee
Ms.
Doulton also serves as Trustee of other Fidelity ®
funds.
Prior to her retirement, Ms. Doulton served in a variety of positions at
Fidelity Investments, including as a managing director of research (2006-2007),
portfolio manager to certain Fidelity ®
funds
(1993-2005), equity analyst and portfolio assistant (1990-1993), and research
assistant (1987-1990). Ms. Doulton currently owns and operates Phi Builders +
Architects and Cellardoor Winery. Previously, Ms. Doulton served as a member of
the Board of Brown Capital Management, LLC (2014-2018).
Robert
A. Lawrence (1952)
Year
of Election or Appointment: 2020
Trustee
Chair
of the Board of Trustees
Mr.
Lawrence also serves as Trustee of other funds. Previously, Mr. Lawrence served
as a Trustee and Member of the Advisory Board of certain funds. Prior to
his retirement in 2008, Mr. Lawrence served as Vice President of certain
Fidelity ®
funds
(2006-2008), Senior Vice President, Head of High Income Division of Fidelity
Management & Research Company (investment adviser firm, 2006-2008), and
President of Fidelity Strategic Investments (investment adviser firm,
2002-2005).
*
Determined to be an "Interested Trustee" by virtue of, among other things, his
or her affiliation with the trust or various entities under common control with
FMR.
+
The information includes the Trustee's principal occupation during the last five
years and other information relating to the experience, attributes, and skills
relevant to the Trustee's qualifications to serve as a Trustee, which led to the
conclusion that the Trustee should serve as a Trustee for the fund.
Independent
Trustees:
Correspondence
intended for an Independent Trustee may be sent to Fidelity Investments, P.O.
Box 55235, Boston, Massachusetts 02205-5235.
Name,
Year of Birth; Principal Occupations and Other Relevant Experience+
Thomas
P. Bostick (1956)
Year
of Election or Appointment: 2021
Trustee
Lieutenant
General Bostick also serves as Trustee of other Fidelity ®
funds.
Prior to his retirement, General Bostick (United States Army, Retired) held a
variety of positions within the U.S. Army, including Commanding General and
Chief of Engineers, U.S. Army Corps of Engineers (2012-2016) and Deputy Chief of
Staff and Director of Human Resources, U.S. Army (2009-2012). General Bostick
currently serves as a member of the Board and Finance and Governance &
Sustainability Committees of CSX Corporation (transportation, 2020-present) and
a member of the Board and Corporate Governance and Nominating Committee of
Perma-Fix Environmental Services, Inc. (nuclear waste management, 2020-present).
General Bostick serves as Chief Executive Officer of Bostick Global Strategies,
LLC (consulting, 2016-present), as a member of the Board of HireVue, Inc. (video
interview and assessment, 2020-present), as a member of the Board of Allonnia
(biotechnology and engineering solutions, 2022-present) and on the Advisory
Board of Solugen, Inc. (specialty bio-based chemicals manufacturer,
2022-present). Previously, General Bostick served as a Member of the Advisory
Board of certain Fidelity ®
funds
(2021), President, Intrexon Bioengineering (2018-2020) and Chief Operating
Officer (2017-2020) and Senior Vice President of the Environment Sector
(2016-2017) of Intrexon Corporation (biopharmaceutical company).
Dennis
J. Dirks (1948)
Year
of Election or Appointment: 2005
Trustee
Mr.
Dirks also serves as Trustee of other Fidelity ®
funds.
Prior to his retirement in May 2003, Mr. Dirks served as Chief Operating Officer
and as a member of the Board of The Depository Trust & Clearing Corporation
(financial markets infrastructure), President, Chief Operating Officer and a
member of the Board of The Depository Trust Company (DTC), President and a
member of the Board of the National Securities Clearing Corporation (NSCC),
Chief Executive Officer and a member of the Board of the Government Securities
Clearing Corporation and Chief Executive Officer and a member of the Board of
the Mortgage-Backed Securities Clearing Corporation. Mr. Dirks currently serves
as a member of the Finance Committee (2016-present) and Board (2017-present) and
is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald
F. Donahue (1950)
Year
of Election or Appointment: 2018
Trustee
Mr.
Donahue also serves as Trustee of other Fidelity ®
funds.
Mr. Donahue serves as President and Chief Executive Officer of Miranda Partners,
LLC (risk consulting for the financial services industry, 2012-present).
Previously, Mr. Donahue served as Chief Executive Officer (2006-2012), Chief
Operating Officer (2003-2006) and Managing Director, Customer Marketing and
Development (1999-2003) of The Depository Trust & Clearing Corporation
(financial markets infrastructure). Mr. Donahue currently serves as a member
(2007-present) and Co-Chairman (2016-present) of the Board of United Way of New
York. Mr. Donahue previously served as a member of the Advisory Board of certain
Fidelity ®
funds
(2015-2018) and as a member of the Board of The Leadership Academy (previously
NYC Leadership Academy) (2012-2022).
Vicki
L. Fuller (1957)
Year
of Election or Appointment: 2020
Trustee
Ms.
Fuller also serves as Trustee of other Fidelity ®
funds.
Previously, Ms. Fuller served as a member of the Advisory Board of certain
Fidelity ®
funds
(2018-2020), Chief Investment Officer of the New York State Common Retirement
Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P.
(global asset management, 1985-2012), including Managing Director (2006-2012)
and Senior Vice President and Senior Portfolio Manager (2001-2006). Ms. Fuller
currently serves as a member of the Board, Audit Committee and Nominating and
Governance Committee of two Blackstone business development companies
(2020-present), as a member of the Board of Treliant, LLC (consulting,
2019-present), as a member of the Board of Ariel Alternatives, LLC (private
equity, 2022-present) and as a member of the Board and Chair of the Audit
Committee of Gusto, Inc. (software, 2021-present). In addition, Ms. Fuller
currently serves as a member of the Board of Roosevelt University (2019-present)
and as a member of the Executive Board of New York University's Stern School of
Business. Ms. Fuller previously served as a member of the Board, Audit Committee
and Nominating and Governance Committee of The Williams Companies, Inc. (natural
gas infrastructure, 2018-2021).
Patricia
L. Kampling (1959)
Year
of Election or Appointment: 2020
Trustee
Ms.
Kampling also serves as Trustee of other Fidelity ®
funds.
Prior to her retirement, Ms. Kampling served as Chairman of the Board and Chief
Executive Officer (2012-2019), President and Chief Operating Officer (2011-2012)
and Executive Vice President and Chief Financial Officer (2010-2011) of Alliant
Energy Corporation. Ms. Kampling currently serves as a member of the Board,
Finance Committee and Governance, Compensation and Nominating Committee of Xcel
Energy Inc. (utilities company, 2020-present) and as a member of the Board,
Audit, Finance and Risk Committee and Safety, Environmental, Technology and
Operations Committee and Chair of the Executive Development and Compensation
Committee of American Water Works Company, Inc. (utilities company,
2019-present). In addition, Ms. Kampling currently serves as a member of the
Board of the Nature Conservancy, Wisconsin Chapter (2019-present). Previously,
Ms. Kampling served as a Member of the Advisory Board of certain Fidelity® funds
(2020), a member of the Board, Compensation Committee and Executive Committee
and Chair of the Audit Committee of Briggs & Stratton Corporation
(manufacturing, 2011-2021), a member of the Board of Interstate Power and Light
Company (2012-2019) and Wisconsin Power and Light Company (2012-2019) (each a
subsidiary of Alliant Energy Corporation) and as a member of the Board and
Workforce Development Committee of the Business Roundtable (2018-2019).
Thomas
A. Kennedy (1955)
Year
of Election or Appointment: 2021
Trustee
Mr. Kennedy also
serves as Trustee of other Fidelity ®
funds.
Previously, Mr. Kennedy served as a Member of the Advisory Board of
certain Fidelity ®
funds
(2020) and held a variety of positions at Raytheon Company (aerospace and
defense, 1983-2020), including Chairman and Chief Executive Officer (2014-2020)
and Executive Vice President and Chief Operating Officer (2013-2014).
Mr. Kennedy served as Executive Chairman of the Board of Directors of
Raytheon Technologies Corporation (aerospace and defense, 2020-2021). Mr.
Kennedy serves as a Director of the Board of Directors of Textron Inc.
(aerospace and defense, 2023-present).
Oscar
Munoz (1959)
Year
of Election or Appointment: 2021
Trustee
Mr.
Munoz also serves as Trustee of other Fidelity ®
funds.
Prior to his retirement, Mr. Munoz served as Executive Chairman (2020-2021),
Chief Executive Officer (2015-2020), President (2015-2016) and a member of the
Board (2010-2021) of United Airlines Holdings, Inc. Mr. Munoz currently serves
as a member of the Board of CBRE Group, Inc. (commercial real estate,
2020-present), a member of the Board of Univision Communications, Inc. (Hispanic
media, 2020-present), a member of the Board of Archer Aviation Inc.
(2021-present), a member of the Defense Business Board of the United States
Department of Defense (2021-present) and a member of the Board of
Salesforce.com, Inc. (cloud-based software, 2022-present). Previously, Mr. Munoz
served as a Member of the Advisory Board of certain Fidelity ®
funds
(2021).
David
M. Thomas (1949)
Year
of Election or Appointment: 2008
Trustee
Lead
Independent Trustee
Mr.
Thomas also serves as Trustee of other Fidelity ®
funds.
Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and
Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and
healthcare information solutions). Mr. Thomas currently serves as a member of
the Board of Fortune Brands Home and Security (home and security products,
2004-present) and as Director (2013-present) and Non-Executive Chairman of the
Board (2022-present) of Interpublic Group of Companies, Inc. (marketing
communication).
Susan
Tomasky (1953)
Year
of Election or Appointment: 2020
Trustee
Ms.
Tomasky also serves as Trustee of other Fidelity ®
funds.
Prior to her retirement, Ms. Tomasky served in various executive officer
positions at American Electric Power Company, Inc. (1998-2011), including most
recently as President of AEP Transmission (2007-2011). Ms. Tomasky currently
serves as a member of the Board and Sustainability Committee and as Chair of the
Audit Committee of Marathon Petroleum Corporation (2018-present) and as a member
of the Board, Executive Committee, Corporate Governance Committee and
Organization and Compensation Committee and as Lead Director of the Board of
Public Service Enterprise Group, Inc. (utilities company, 2012-present) and as a
member of the Board of its subsidiary company, Public Service Electric and Gas
Co. (2021-present). In addition, Ms. Tomasky currently serves as a member
(2009-present) and President (2020-present) of the Board of the Royal
Shakespeare Company - America (2009-present), as a member of the Board of the
Columbus Association for the Performing Arts (2011-present) and as a member of
the Board and Kenyon in the World Committee of Kenyon College (2016-present).
Previously, Ms. Tomasky served as a Member of the Advisory Board of certain
Fidelity ®
funds
(2020), as a member of the Board of the Columbus Regional Airport Authority
(2007-2020), as a member of the Board (2011-2018) and Lead Independent Director
(2015-2018) of Andeavor Corporation (previously Tesoro Corporation) (independent
oil refiner and marketer) and as a member of the Board of Summit Midstream
Partners LP (energy, 2012-2018).
Michael
E. Wiley (1950)
Year
of Election or Appointment: 2018
Trustee
Mr.
Wiley also serves as Trustee of other Fidelity ®
funds.
Previously, Mr. Wiley served as a member of the Advisory Board of certain
Fidelity ®
funds
(2018-2020), Chairman, President and CEO of Baker Hughes, Inc. (oilfield
services, 2000-2004). Mr. Wiley also previously served as a member of the Board
of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a
member of the Board of Andeavor Logistics LP (natural resources logistics,
2015-2018) and a member of the Board of High Point Resources (exploration and
production, 2005-2020).
+
The information includes the Trustee's principal occupation during the last five
years and other information relating to the experience, attributes, and skills
relevant to the Trustee's qualifications to serve as a Trustee, which led to the
conclusion that the Trustee should serve as a Trustee for the fund.
Advisory
Board Members and Officers:
Correspondence
intended for a Member of the Advisory Board (if any) may be sent to Fidelity
Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence
intended for an officer or Peter S. Lynch may be sent to Fidelity Investments,
245 Summer Street, Boston, Massachusetts 02210. Officers appear below in
alphabetical order.
Name,
Year of Birth; Principal Occupation
Peter
S. Lynch (1944)
Year
of Election or Appointment: 2003
Member
of the Advisory Board
Mr.
Lynch also serves as a Member of the Advisory Board of other Fidelity
®
funds.
Mr. Lynch is Vice Chairman and a Director of Fidelity Management & Research
Company LLC (investment adviser firm). In addition, Mr. Lynch serves as a
Trustee of Boston College and as the Chairman of the Inner-City Scholarship
Fund. Previously, Mr. Lynch served as Vice Chairman and a Director of FMR Co.,
Inc. (investment adviser firm) and on the Special Olympics International Board
of Directors (1997-2006).
Heather
Bonner (1977)
Year
of Election or Appointment: 2023
Assistant
Treasurer
Ms.
Bonner also serves as an officer of other funds. Ms. Bonner serves as Senior
Vice President (2022-present), and is an employee of Fidelity Investments. Ms.
Bonner serves as Assistant Treasurer of Fidelity CRET Trustee LLC
(2022-present). Prior to joining Fidelity, Ms. Bonner served as Managing
Director at AQR Capital Management (2013-2022) and was the Treasurer and
Principal Financial Officer of the AQR Funds (2013-2022).
Craig
S. Brown (1977)
Year
of Election or Appointment: 2022
Deputy
Treasurer
Mr.
Brown also serves as an officer of other funds. Mr. Brown serves as Assistant
Treasurer of FIMM, LLC (2021-present) and is an employee of Fidelity Investments
(2013-present). Previously, Mr. Brown served as Assistant Treasurer of certain
Fidelity ®
funds
(2019-2022).
John
J. Burke III (1964)
Year
of Election or Appointment: 2018
Chief
Financial Officer
Mr.
Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as
Head of Investment Operations for Fidelity Fund and Investment Operations
(2018-present) and is an employee of Fidelity Investments (1998-present).
Previously Mr. Burke served as head of Asset Management Investment Operations
(2012-2018).
Margaret
Carey (1973)
Year
of Election or Appointment: 2023
Secretary
and Chief Legal Officer (CLO)
Ms.
Carey also serves as an officer of other funds and as CLO of certain other
Fidelity entities. She is a Senior Vice President and Deputy General Counsel of
FMR LLC (diversified financial services company, 2019-present), and is an
employee of Fidelity Investments.
William
C. Coffey (1969)
Year
of Election or Appointment: 2019
Assistant
Secretary
Mr.
Coffey also serves as Assistant Secretary of other funds. He is Senior Vice
President and Deputy General Counsel of FMR LLC (diversified financial services
company, 2010-present), and is an employee of Fidelity Investments. Previously,
Mr. Coffey served as Secretary and CLO of certain funds (2018-2019); CLO,
Secretary, and Senior Vice President of Fidelity Management & Research
Company and FMR Co., Inc. (investment adviser firms, 2018-2019); Secretary of
Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc.
(investment adviser firms, 2018-2019); CLO of Fidelity Management & Research
(Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity
Management & Research (Japan) Limited (investment adviser firms, 2018-2019);
and Assistant Secretary of certain funds (2009-2018).
Timothy
M. Cohen (1969)
Year
of Election or Appointment: 2018
Vice
President
Mr.
Cohen also serves as Vice President of other funds. Mr. Cohen serves as Co-Head
of Equity (2018-present), a Director of Fidelity Management & Research
(Japan) Limited (investment adviser firm, 2016-present), and is an employee of
Fidelity Investments. Previously, Mr. Cohen served as Executive Vice President
of Fidelity SelectCo, LLC (2019), Head of Global Equity Research (2016-2018),
Chief Investment Officer - Equity and a Director of Fidelity Management &
Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of
Fidelity Management & Research (Hong Kong) Limited (investment adviser firm,
2017).
Jonathan
Davis (1968)
Year
of Election or Appointment: 2010
Assistant
Treasurer
Mr.
Davis also serves as an officer of other funds. Mr. Davis serves as Vice
President Assistant Treasurer and is an employee of Fidelity Investments. Mr.
Davis serves as Assistant Treasurer of certain Fidelity entities.
Laura
M. Del Prato (1964)
Year
of Election or Appointment: 2018
Assistant
Treasurer
Ms.
Del Prato also serves as an officer of other funds. Ms. Del Prato serves as
Assistant Treasurer of FIMM, LLC (2021-present) and is an employee of Fidelity
Investments (2017-present). Previously, Ms. Del Prato served as President and
Treasurer of The North Carolina Capital Management Trust: Cash Portfolio and
Term Portfolio (2018-2020). Prior to joining Fidelity Investments, Ms. Del Prato
served as a Managing Director and Treasurer of the JPMorgan Mutual Funds
(2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund
Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm,
2004-2012).
Colm
A. Hogan (1973)
Year
of Election or Appointment: 2020
Assistant
Treasurer
Mr.
Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant
Treasurer of FIMM, LLC (2021-present) and FMR Capital, Inc. (2017-present) and
is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan
served as Deputy Treasurer of certain Fidelity ®
funds
(2016-2020) and Assistant Treasurer of certain Fidelity ®
funds
(2016-2018).
Pamela
R. Holding (1964)
Year
of Election or Appointment: 2018
Vice
President
Ms.
Holding also serves as Vice President of other funds. Ms. Holding serves as
Co-Head of Equity (2018-present) and is an employee of Fidelity Investments
(2013-present). Previously, Ms. Holding served as Executive Vice President of
Fidelity SelectCo, LLC (2019) and as Chief Investment Officer of Fidelity
Institutional Asset Management (2013-2018).
Chris
Maher (1972)
Year
of Election or Appointment: 2020
Deputy
Treasurer
Mr.
Maher also serves as an officer of other funds. Mr. Maher serves as
Assistant Treasurer of FIMM, LLC (2021-present) and FMR Capital, Inc.
(2017-present), and is an employee of Fidelity Investments (2008-present).
Previously, Mr. Maher served as Assistant Treasurer of certain funds
(2013-2020); Vice President of Asset Management Compliance (2013), Vice
President of the Program Management Group of FMR (investment adviser firm,
2010-2013), and Vice President of Valuation Oversight (2008-2010).
Jason
P. Pogorelec (1975)
Year
of Election or Appointment: 2020
Chief
Compliance Officer
Mr.
Pogorelec also serves as Chief Compliance Officer of other funds. Mr. Pogorelec
is a Senior Vice President of Asset Management Compliance for Fidelity
Investments and is an employee of Fidelity Investments. Mr. Pogorelec serves as
Compliance Officer of Fidelity Management & Research Company LLC (investment
adviser firm, 2023-present). Previously, Mr. Pogorelec served as Vice President,
Associate General Counsel for Fidelity Investments (2010-2020) and Assistant
Secretary of certain Fidelity ®
funds
(2015-2020).
Brett
Segaloff (1972)
Year
of Election or Appointment: 2021
Anti-Money
Laundering (AML) Officer
Mr.
Segaloff also serves as an AML Officer of other funds and other related
entities. He is Director, Anti-Money Laundering (2007-present) of FMR LLC
(diversified financial services company) and is an employee of Fidelity
Investments (1996-present).
Stacie
M. Smith (1974)
Year
of Election or Appointment: 2016
President
and Treasurer
Ms.
Smith also serves as an officer of other funds. Ms. Smith serves as Assistant
Treasurer of FIMM, LLC (2021-present) and FMR Capital, Inc. (2017-present), is
an employee of Fidelity Investments (2009-present), and has served in other fund
officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior
Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously,
Ms. Smith served as Assistant Treasurer (2013-2019) and Deputy Treasurer
(2013-2016) of certain Fidelity ®
funds.
Jim
Wegmann (1979)
Year
of Election or Appointment: 2019
Assistant
Treasurer
Mr.
Wegmann also serves as an officer of other funds. Mr. Wegmann serves as
Assistant Treasurer of FIMM, LLC (2021-present) and is an employee of Fidelity
Investments (2011-present). Previously, Mr. Wegmann served as Assistant
Treasurer of certain Fidelity ®
funds
(2019-2021).
As
a shareholder, you incur two types of costs: (1) transaction costs, which may
include sales charges (loads) on purchase payments or redemption proceeds, as
applicable and (2) ongoing costs, which generally include management fees,
distribution and/or service (12b-1) fees and other Fund expenses. This Example
is intended to help you understand your ongoing costs (in dollars) of investing
in a fund and to compare these costs with the ongoing costs of investing in
other mutual funds.
The
Example is based on an investment of $1,000 invested at the beginning of
the period and held for the entire period (October 1, 2022 to March 31,
2023). |
Actual
Expenses
The
first line of the accompanying table provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000.00 (for example, an $8,600
account value divided by $1,000.00 = 8.6), then multiply the result by the
number in the first line for a class/Fund under the heading entitled "Expenses
Paid During Period" to estimate the expenses you paid on your account during
this period. If any fund is a shareholder of any underlying mutual funds or
exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears
its proportional share of the expenses of the Underlying Funds in addition to
the direct expenses incurred presented in the table. These fees and expenses are
not included in the annualized expense ratio used to calculate the expense
estimate in the table below.
Hypothetical
Example for Comparison Purposes
The
second line of the accompanying table provides information about hypothetical
account values and hypothetical expenses based on the actual expense ratio and
an assumed rate of return of 5% per year before expenses, which is not the
actual return. The hypothetical account values and expenses may not be used to
estimate the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
If any fund is a shareholder of any Underlying Funds, such fund indirectly bears
its proportional share of the expenses of the Underlying Funds in addition to
the direct expenses as presented in the table. These fees and expenses are not
included in the annualized expense ratio used to calculate the expense estimate
in the table below.
Please
note that the expenses shown in the table are meant to highlight your ongoing
costs only and do not reflect any transaction costs. Therefore, the second line
of the table is useful in comparing ongoing costs only, and will not help you
determine the relative total costs of owning different funds. In addition, if
these transactional costs were included, your costs would have been
higher.
|
|
|
|
Annualized
Expense Ratio- A
|
|
Beginning
Account Value October 1, 2022 |
|
Ending
Account Value March 31, 2023 |
|
Expenses
Paid During Period- C
October
1, 2022 to March 31, 2023 |
Fidelity®
Magellan® Fund |
|
|
|
|
|
|
|
|
|
|
Fidelity®
Magellan® Fund |
|
|
|
.48%
|
|
|
|
|
|
|
Actual
|
|
|
|
|
|
$
1,000 |
|
$
1,142.20 |
|
$
2.56
|
Hypothetical-
B
|
|
|
|
|
|
$
1,000 |
|
$
1,022.54 |
|
$
2.42
|
Class
K |
|
|
|
.41%
|
|
|
|
|
|
|
Actual
|
|
|
|
|
|
$
1,000 |
|
$
1,141.80 |
|
$
2.19
|
Hypothetical-
B
|
|
|
|
|
|
$
1,000 |
|
$
1,022.89 |
|
$
2.07
|
|
A
Annualized expense ratio
reflects expenses net of applicable fee waivers.
B
5% return per year before
expenses
C
Expenses are equal to the
annualized expense ratio, multiplied by the average account value over the
period, multiplied by 182/ 365 (to reflect the one-half year period). The fees
and expenses of any Underlying Funds are not included in each annualized expense
ratio.
The
dividend and capital gains distributions for the fund(s) are available on
Fidelity.com
or
Institutional.Fidelity.com.
The
fund hereby designates as a capital gain dividend with respect to the taxable
year ended March 31, 2023, $2,847,816,498, or, if subsequently determined to be
different, the net capital gain of such year.
Magellan
and Class K designate 100% of the dividends distributed in December 2022 during
the fiscal year as qualifying for the dividends-received deduction for corporate
shareholders.
Magellan
and Class K designate 100% of the dividends distributed during the fiscal year
as amounts which may be taken into account as a dividend for purposes of the
maximum rate under section 1(h)(11) of the Internal Revenue Code.
The
fund will notify shareholders in January 2024 of amounts for use in preparing
2023 income tax returns.
The
Securities and Exchange Commission adopted Rule 22e-4 under the Investment
Company Act of 1940 (the Liquidity Rule) to promote effective liquidity risk
management throughout the open-end investment company industry, thereby reducing
the risk that funds will be unable to meet their redemption obligations and
mitigating dilution of the interests of fund shareholders.
The
Fund has adopted and implemented a liquidity risk management program (the
Program) reasonably designed to assess and manage the Fund's liquidity risk and
to comply with the requirements of the Liquidity Rule. The Fund's Board of
Trustees (the Board) has designated the Fund's investment adviser as
administrator of the Program. The Fidelity advisers have established a Liquidity
Risk Management Committee (the LRM Committee) to manage the Program for each of
the Fidelity Funds. The LRM Committee monitors the adequacy and effectiveness of
implementation of the Program and on a periodic basis assesses each Fund's
liquidity risk based on a variety of factors including (1) the Fund's investment
strategy, (2) portfolio liquidity and cash flow projections during normal and
reasonably foreseeable stressed conditions, (3) shareholder redemptions, (4)
borrowings and other funding sources and (5) certain factors specific to ETFs
including the effect of the Fund's prices and spreads, market participants, and
basket compositions on the overall liquidity of the Fund's portfolio, as
applicable.
In
accordance with the Program, each of the Fund's portfolio investments is
classified into one of four defined liquidity categories based on a
determination of a reasonable expectation for how long it would take to convert
the investment to cash (or sell or dispose of the investment) without
significantly changing its market value.
- Highly
liquid investments - cash or convertible to cash within three business days or
less
- Moderately
liquid investments - convertible to cash in three to seven calendar days
- Less
liquid investments - can be sold or disposed of, but not settled, within seven
calendar days
- Illiquid
investments - cannot be sold or disposed of within seven calendar days
Liquidity
classification determinations take into account a variety of factors including
various market, trading and investment-specific considerations, as well as
market depth, and generally utilize analysis from a third-party liquidity
metrics service.
The
Liquidity Rule places a 15% limit on a fund's illiquid investments and requires
funds that do not primarily hold assets that are highly liquid investments to
determine and maintain a minimum percentage of the fund's net assets to be
invested in highly liquid investments (highly liquid investment minimum or
HLIM). The Program includes provisions reasonably designed to comply with
the 15% limit on illiquid investments and for determining, periodically
reviewing and complying with the HLIM requirement as applicable.
At
a recent meeting of the Fund's Board of Trustees, the LRM Committee provided a
written report to the Board pertaining to the operation, adequacy, and
effectiveness of the Program for the period December 1, 2021 through November
30, 2022. The report concluded that the Program is operating effectively
and is reasonably designed to assess and manage the Fund's liquidity risk.
1.702307.125