N-30D 1 main.htm

Fidelity®

Asset Manager: Aggressive®

Semiannual Report

March 31, 2002

(2_fidelity_logos) (Registered_Trademark)

President's Message	<Click Here>	Ned Johnson on investing strategies.
Performance	<Click Here>	How the fund has done over time.
Market Recap	<Click Here>	An overview of the market's performance and the factors driving it.
Fund Talk	<Click Here>	The manager's review of fund performance, strategy and outlook.
Investment Changes	<Click Here>	A summary of the fund's investments.
Investments	<Click Here>	A complete list of the fund's investments with their market values.
Financial Statements	<Click Here>	Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights.
Notes	<Click Here>	Notes to the financial statements.

Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.

Other third party marks appearing herein are the property of their respective owners.

All other marks appearing herein are registered or unregistered trademarks or service marks of FMR Corp. or an affiliated company.

(Recycle graphic) This report is printed on recycled paper using soy-based inks.

This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.

Mutual fund shares are not deposits or obligations of, or guaranteed by, any depository institution. Shares are not insured by the FDIC, Federal Reserve Board or any other agency, and are subject to investment risks, including possible loss of principal amount invested.

Neither the fund nor Fidelity Distributors Corporation is a bank.

For more information on any Fidelity fund, including charges and expenses, call 1-800-544-6666 for a free prospectus. Read it carefully before you invest or send money.

Semiannual Report

President's Message

(photo_of_Edward_C_Johnson_3d)

Dear Shareholder:

Through the first quarter of 2002, prevailing market conditions generally paralleled the equity environment of 2001: Small-cap stocks continued to outperform large caps; value stocks performed better than growth stocks; and technology and telecommunications continued to be the weakest performing sectors of the market. That said, a number of equity indexes achieved positive gains for the quarter, while bond indexes were generally flat to down given concerns about possible interest rate hikes.

While it's impossible to predict the future direction of the markets with any degree of certainty, there are certain basic principles that can help investors plan for their future needs.

First, investors are encouraged to take a long-term view of their portfolios. If you can afford to leave your money invested through the inevitable up and down cycles of the financial markets, you will greatly reduce your vulnerability to any single decline. We know from experience, for example, that stock prices have gone up over longer periods of time, have significantly outperformed other types of investments and have stayed ahead of inflation.

Second, you can further manage your investing risk through diversification. Asset Manager funds are already diversified because they invest in stocks, bonds and short-term and money market instruments, both in the U.S. and overseas. If you have a shorter investment time horizon, you might want to consider moving some of your investment into Asset Manager: Income, which generally has a higher weighting in short-term investments compared with the other Asset Manager funds.

Finally, no matter what your time horizon or portfolio diversity, it makes good sense to follow a regular investment plan, investing a certain amount of money in a fund at the same time each month or quarter and periodically reviewing your overall portfolio. By doing so, you won't get caught up in the excitement of a rapidly rising market, nor will you buy all your shares at market highs. While this strategy - known as dollar cost averaging - won't assure a profit or protect you from a loss in a declining market, it should help you lower the average cost of your purchases. Of course, you should consider your financial ability to continue your purchases through periods of low price levels before undertaking such a strategy.

If you have questions, please call us at 1-800-544-6666, or visit our web site at www.fidelity.com. We are available 24 hours a day, seven days a week to provide you the information you need to make the investments that are right for you.

Best regards,

/s/Edward C. Johnson 3d

Edward C. Johnson 3d

Semiannual Report

Performance: The Bottom Line

There are several ways to evaluate a fund's historical performance. You can look at the total percentage change in value, the average annual percentage change or the growth of a hypothetical $10,000 investment. Total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value). If Fidelity had not reimbursed certain fund expenses, the life of fund total returns would have been lower.

Cumulative Total Returns

Periods ended March 31, 2002	Past 6 months	Past 1 year	Life of fund
Fidelity ® Asset Manager: Aggressive ®	15.40%	-1.84%	17.46%
Fidelity Asset Manager: Aggressive Composite	9.37%	1.22%	-3.09%
S&P 500 ®	10.99%	0.24%	-7.33%
LB Aggregate Bond	0.14%	5.35%	20.39%
Flexible Portfolio Funds Average	7.06%	1.16%	n/a*

Cumulative total returns show the fund's performance in percentage terms over a set period - in this case, six months, one year or since the fund started on September 24, 1999. For example, if you had invested $1,000 in a fund that had a 5% return over the past year, the value of your investment would be $1,050. You can compare the fund's returns to the performance of the Fidelity Asset Manager: Aggressive Composite Index, a hypothetical combination of unmanaged indices. The composite index combines the total returns of the Standard & Poor's 500^SM Index (S&P 500®) and the Lehman Brothers® Aggregate Bond Index, weighted according to the fund's neutral mix. To measure how the fund's performance stacked up against its peers, you can compare it to the flexible portfolio funds average, which reflects the performance of mutual funds with similar objectives tracked by Lipper Inc. The past six months average represents a peer group of 297 mutual funds. These benchmarks include reinvested dividends and capital gains, if any.

Average Annual Total Returns

Periods ended March 31, 2002	Past 1 year	Life of fund
Fidelity Asset Manager: Aggressive	-1.84%	6.60%
Fidelity Asset Manager: Aggressive Composite	1.22%	-1.24%

Average annual total returns take the fund's cumulative return and show you what would have happened if the fund had performed at a constant rate each year.

* Not available

Semiannual Report

Performance - continued

$10,000 Over Life of Fund

$10,000 Over Life of Fund: Let's say hypothetically that $10,000 was invested in Fidelity® Asset Manager: Aggressive® on September 24, 1999, when the fund started. As the chart shows, by March 31, 2002, the value of the investment would have grown to $11,746 - a 17.46% increase on the initial investment. For comparison, look at how both the S&P 500 Index, a market capitalization-weighted index of common stocks, and the Lehman Brothers Aggregate Bond Index, a market value-weighted index of investment-grade fixed-rate debt issues, including government, corporate, asset-backed, and mortgage-backed securities, with maturities of one year or more, did over the same period. With dividends and capital gains, if any, reinvested, the same $10,000 investment in the S&P 500 Index would have been $9,267 - a 7.33% decrease. If $10,000 was invested in the Lehman Brothers Aggregate Bond Index, it would have grown to $12,039 - a 20.39% increase. You can also look at how the Fidelity Asset Manager: Aggressive Composite Index did over the same period. The composite index combines the total returns of the S&P 500 Index, and the Lehman Brothers Aggregate Bond Index according to the fund's neutral mix, and assumes monthly rebalancing of the mix.** With dividends and capital gains, if any, reinvested, the same $10,000 investment would have been $9,691 - a 3.09% decrease.

Understanding
Performance

How a fund did yesterday is no guarantee of how it will do tomorrow. If you sell your shares during a market downturn, you might lose money. But if you can ride out the market's ups and downs, you may have a gain.

** Currently 85% stocks and 15% bonds effective September 24, 1999.

Semiannual Report

Market Recap

After nearly two years of disappointing equity market performance, investors recouped some of their losses during the six-month period ending March 31, 2002. Further interest rate cuts by the Federal Reserve Board and emerging signs of an improving economy spawned hopes of higher corporate profitability. As a result, most major equity indexes bounced back sharply from their September 2001 lows. Meanwhile, as optimistic expectations brightened the outlook for equities, clouds drifted over the fixed-income markets.

Stocks: The equity markets faced an onslaught of disruptive events during the six-month period, so much so that many market pundits expected the indexes to continue unraveling after the September 11 terrorist attacks that sent stocks plummeting across the board. Additionally, fears of future terrorist attacks or additional anthrax incidents were at a feverish pitch, causing both American consumers and corporations to curtail spending. The war in Afghanistan began, fueling greater market uncertainty. A well-respected economic research center said the U.S. had been in a recession for several months, raising more concerns about corporate profitability, as did rising energy prices. Further, some of the nation's largest companies, such as Enron and Kmart, went bankrupt. Enron's sudden collapse fueled an intensified search by the Securities and Exchange Commission for other companies with suspect accounting. Despite the magnitude of these issues, investors by and large shrugged them off, with many scooping up stocks at bargain prices. Additionally, as the period progressed, monthly economic data showed the sluggish economy had stabilized, and investors increasingly grew optimistic about a turnaround. As a result, the major equity indexes finished the period higher. The blue chips' Dow Jones Industrial Average^SM returned 18.64%, while the tech-heavy NASDAQ Composite® Index and the large-cap Standard & Poor's 500^SM Index rose 23.32% and 10.99%, respectively.

Bonds: A volatile market environment left most bonds with flat returns over the past six months. The Lehman Brothers Aggregate Bond Index - a proxy for taxable-bond performance - returned 0.14% during that time. Concerns about a weak economy and declining corporate profits - heightened by the shock of September 11 - exacerbated a flight to safety in high-quality Treasuries and government agencies. The Federal Reserve Board helped boost demand by aggressively reducing the fed funds rate three times during the period - in addition to eight other cuts in 2001 - to avoid a sustained recession. As signs of strength in the economy emerged late in the year, however, bond investors shifted away from government issues toward higher-yielding spread sectors, including corporate and mortgage securities. Growing confidence in an economic recovery further depressed Treasuries, as bond yields rose across the board during the first quarter of 2002 in anticipation of eventual Fed tightening. Investors' increased appetite for credit risk helped corporates overcome record levels of new issuance and the Enron-related fallout. Mortgages, meanwhile, benefited from reduced prepayment risk, as higher interest rates dramatically slowed refinancing activity. The Lehman Brothers Mortgage-Backed Securities and Credit Bond indexes returned 1.06% and 0.62%, respectively, while the Lehman Brothers U.S. Agency and Treasury indexes returned -0.51% and -1.61%, respectively.

Semiannual Report

Fund Talk: The Manager's Overview

(Portfolio Manager photograph)
An interview with Richard Habermann, Portfolio Manager of Asset Manager: Aggressive

Q. How did the fund perform, Dick?

A. It fared quite well. For the six months ending March 31, 2002, the fund returned 15.40%, outpacing the Fidelity Asset Manager: Aggressive Composite Index, which returned 9.37%. The fund also topped the flexible portfolio funds average tracked by Lipper Inc., which returned 7.06%. For the one-year period ending March 31, 2002, the fund returned -1.84%, while the Composite index and Lipper average returned 1.22% and 1.16%, respectively.

Q. What helped the fund beat its benchmarks during the past six months?

A. Strong stock picking was the primary contributor. Asset allocation, while generally neutral for the period at just under 85% in equities, also helped. The fund was modestly underweighted in equities relative to the index in the immediate aftermath of September 11. While this de-emphasis worked given the market's weakness at that time, my decision to become more aggressive and raise our equity weighting in the fourth quarter also helped, as stocks snapped back in anticipation of an economic recovery. We then benefited from assuming a more cautious stance heading into 2002 by scaling back on equities as valuations began to look stretched, given little-to-no improvement in company fundamentals and concerns about the Enron debacle. Raising our exposure to high-yield securities - which we felt were oversold amid the flight to quality in government bonds following 9/11 - also bolstered our allocation strategy. High-yield bonds rebounded strongly from their September lows, as economic and issuer levels improved. By focusing exclusively on high-yield securities rather than poorer-performing investment-grade bonds and cash, we widened our performance advantage over both the index and peer average.

Q. What drove the fund's equity holdings?

A. The equity portion of the fund handily beat the S&P 500 during the period. The fund's aggressive orientation served it well during the first half of the period, as growth stocks returned to favor. Bahaa Fam - who directed the fund's equity investments - tends to have a larger exposure to the more volatile stocks in growth-oriented sectors that he feels will perform well over an 18- to 24-month horizon. Feeling the stage was set for an economic recovery after 9/11, Bahaa raised his exposure to several smaller-sized companies with excellent long-term growth characteristics at very attractive prices. Technology hardware was his primary focus, most notably mid-cap semiconductor-related companies with a long history of cyclical improvement. Teradyne - an example of this group - was easily the fund's top contributor, followed by a handful of other chip stocks including Cypress Semiconductor, Fairchild Semiconductor and QLogic that bounced back sharply from their September lows anticipating an eventual pick-up in capital spending. He sold some of these stocks as they rallied to lock in profits. All told, the fund's tech holdings performed almost twice as well as the average tech stock in the S&P®. Similar performance was achieved by the fund's energy holdings. We purchased shares in a number of energy services and equipment providers not represented in the index, particularly oil and natural gas drillers that we felt were cheap given increased interest in domestic energy exploration. Nabors Industries, Noble Drilling and BJ Services were big winners for us.

Semiannual Report

Fund Talk: The Manager's Overview - continued

Q. What other moves influenced performance?

A. Retailers also helped us, particularly our overweighting in Best Buy, which gained from a robust consumer electronics cycle. Switching to detractors, while we benefited from exiting early from some companies that experienced severe financial stress, including those with overly complex accounting structures, such as Enron and Tyco International, we weren't fully immune to the dramatic falloff in these stocks. Graphics-chip maker NVIDIA suffered from several factors, including questions from the Securities and Exchange Commission regarding the firm's accounting practices and an unsuccessful attempt to gain an important Intel product license.

Q. How did the fund's fixed-income investments fare?

A. While our fixed-income subportfolio outperformed the Lehman Brothers Aggregate Bond Index, the fund's high-yield holdings - managed by Matt Conti - had the most influence on returns. Since the fund's bond exposure was limited to high yield, the investment-grade portion - run by Charlie Morrison - was not utilized during the period. High-yield bonds, after suffering one of the worst monthly performances in their history in September, rallied strongly behind improved economic indicators, issuer fundamentals and overall credit quality, among other factors. Performance benefited from the high coupon income received during the period and from the capital appreciation of our investments. Matt extended his lead over the Lehman Brothers index by focusing on sectors that had big recoveries, namely hotels and airlines. Maintaining a higher-quality, income-focused structure in the fund also helped in a period of high default rates. Another key was boosting the fund's weighting in defensive areas such as cable television and homebuilding, which performed well, while shedding exposure to a weak telecommunications sector. Given its conservative nature, the strategic cash portion of the fund, managed by John Todd, did what it's designed to do - provide reasonably steady returns to help offset capital market volatility.

Q. What's your outlook?

A. There are more signs of stability in the economy today than there were earlier in the period. However, I'm concerned about near-term stock performance given the price risk if the economic recovery fails to solidify and corporate earnings don't improve. While I remain optimistic about high-yield securities given their attractive coupons and still-cheap relative valuations, I've become less positive of late given their recent strong performance.

Semiannual Report

The views expressed in this report reflect those of the portfolio manager only through the end of the period of the report as stated on the cover and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.

Fund Facts

Goal: seeks to maximize total return over the long term by allocating its assets among stocks, bonds, short-term instruments and other investments

Fund number: 347

Trading symbol: FAMRX

Start date: September 24, 1999

Size: as of March 31, 2002, more than $277 million

Manager: Richard Habermann, since inception; manager, Fidelity Asset Manager, Fidelity Asset Manager: Income and Fidelity Asset Manager: Growth, since 1996; Fidelity Trend Fund, 1977-1982; Fidelity Magellan Fund, 1972-
1977; joined Fidelity in 1968

Dick Habermann discusses a recovery in equities:

"I'm still looking for a catalyst to get equities back on track. It would be highly unusual for stocks to underperform bonds for a third straight year. In fact, if you look back at post-World War II history, excluding 2000-01, there was only one instance in which we had even back-to-back down years in the S&P 500. While the probability is slim for stocks to pull off a three-peat, it's not impossible. We're already seeing the factors driving economic growth in recent months begin to show signs of reversing. Among the key drivers were low interest rates, low energy prices and a huge mortgage-refinancing boom that has since ended. This reversal may, in fact, take some steam out of the once-resilient consumer, leaving corporations to pick up the slack by boosting capital expenditures. The problem is, corporations are still very cautious given uncertainty about earnings - the lifeblood of capital spending - and are thus unlikely to step in and fill the void. Exports, given a continued strong dollar, might not provide much help either. So, as the inventory correction nears an end in most sectors, particularly technology, there needs to be a resurgence in end demand from businesses to help grow earnings, strengthen the economy and power stock prices from today's still-lofty levels."

Note to shareholders: Effective April 1, 2002, Jeff Moore assumed responsibility for managing the fund's investment-grade bond subportfolio.

Semiannual Report

Investment Changes

Top Ten Stocks as of March 31, 2002
	% of fund's net assets	% of fund's net assets 6 months ago
Teradyne, Inc.	5.9	2.7
Nabors Industries, Inc.	4.6	0.3
Noble Drilling Corp.	4.4	0.0
Vishay Intertechnology, Inc.	4.3	2.5
ASML Holding NV (NY Shares)	4.1	0.0
Lowe's Companies, Inc.	4.0	0.6
MedImmune, Inc.	3.9	1.3
Best Buy Co., Inc.	3.9	1.6
IDEC Pharmaceuticals Corp.	3.9	1.4
Cypress Semiconductor Corp.	3.1	2.1
	42.1
Market Sectors as of March 31, 2002
(stocks only)	% of fund's net assets	% of fund's net assets 6 months ago
Information Technology	25.9	15.3
Consumer Discretionary	13.9	12.4
Financials	11.7	12.9
Health Care	11.4	14.4
Energy	10.5	4.6
Consumer Staples	4.2	4.9
Telecommunication Services	4.1	6.3
Industrials	3.5	9.0
Materials	0.9	0.9
Utilities	0.0	1.3

Asset Allocation (% of fund's net assets)
As of March 31, 2002 *			As of September 30, 2001 **
	Stock Class 87.0%			Stock Class 82.0%
	Bond Class 11.4%			Bond Class 15.7%
	Short-term Class 1.6%			Short-term Class 2.3%
* Foreign investments		4.5%	** Foreign investments		5.6%

Asset allocations in the pie charts reflect the categorization of assets as defined in the fund's prospectus in effect as of the time periods indicated above. Financial statement categorizations conform to accounting standards and will differ from the pie chart.

Semiannual Report

Investments March 31, 2002 (Unaudited)

Showing Percentage of Net Assets

Common Stocks - 85.8%
	Shares		Value (Note 1)
CONSUMER DISCRETIONARY - 13.6%
Household Durables - 1.9%
Ryland Group, Inc.	58,400		$ 5,267,680
Media - 2.3%
Comcast Corp. Class A (special) (a)	102,700		3,265,860
EchoStar Communications Corp. Class A (a)	36,000		1,019,520
Gemstar-TV Guide International, Inc. (a)	134,000		1,981,860
			6,267,240
Multiline Retail - 1.0%
Saks, Inc. (a)	24,300		319,545
Wal-Mart Stores, Inc.	40,300		2,469,987
			2,789,532
Specialty Retail - 7.9%
Best Buy Co., Inc. (a)	136,300		10,794,960
Lowe's Companies, Inc.	256,400		11,150,836
			21,945,796
Textiles & Apparel - 0.5%
Coach, Inc. (a)	27,400		1,389,454
TOTAL CONSUMER DISCRETIONARY			37,659,702
CONSUMER STAPLES - 4.2%
Beverages - 0.5%
The Coca-Cola Co.	25,900		1,353,534
Food & Drug Retailing - 0.1%
Rite Aid Corp. (a)	39,000		135,330
Personal Products - 1.9%
Gillette Co.	156,400		5,319,164
Tobacco - 1.7%
Philip Morris Companies, Inc.	91,300		4,808,771
TOTAL CONSUMER STAPLES			11,616,799
ENERGY - 10.5%
Energy Equipment & Services - 10.5%
BJ Services Co. (a)	66,500		2,292,255
ENSCO International, Inc.	55,300		1,666,742
Nabors Industries, Inc. (a)	300,400		12,691,900
Noble Drilling Corp. (a)	292,600		12,110,714
Weatherford International, Inc. (a)	6,070		289,114
			29,050,725
Common Stocks - continued
	Shares		Value (Note 1)
ENERGY - continued
Oil & Gas - 0.0%
Valero Energy Corp.	1,300		$ 64,376
TOTAL ENERGY			29,115,101
FINANCIALS - 11.7%
Banks - 4.6%
Bank of America Corp.	70,300		4,781,806
North Fork Bancorp, Inc.	118,400		4,210,304
Silicon Valley Bancshares (a)	122,600		3,708,650
			12,700,760
Diversified Financials - 5.4%
Bear Stearns Companies, Inc.	95,900		6,017,725
Charles Schwab Corp.	292,500		3,828,825
Lehman Brothers Holdings, Inc.	79,200		5,119,488
			14,966,038
Insurance - 1.7%
American International Group, Inc.	59,100		4,263,474
Brown & Brown, Inc.	18,700		587,180
			4,850,654
TOTAL FINANCIALS			32,517,452
HEALTH CARE - 11.4%
Biotechnology - 8.2%
IDEC Pharmaceuticals Corp. (a)	167,220		10,752,246
MedImmune, Inc. (a)	276,900		10,890,477
Millennium Pharmaceuticals, Inc. (a)	52,700		1,175,737
			22,818,460
Pharmaceuticals - 3.2%
Forest Laboratories, Inc. (a)	31,800		2,598,060
Johnson & Johnson	32,500		2,110,875
Mylan Laboratories, Inc.	75,000		2,209,500
Wyeth	28,500		1,871,025
			8,789,460
TOTAL HEALTH CARE			31,607,920
Common Stocks - continued
	Shares		Value (Note 1)
INDUSTRIALS - 3.5%
Aerospace & Defense - 1.4%
Lockheed Martin Corp.	67,300		$ 3,875,134
Construction & Engineering - 2.1%
Jacobs Engineering Group, Inc. (a)	81,600		5,817,264
TOTAL INDUSTRIALS			9,692,398
INFORMATION TECHNOLOGY - 25.9%
Communications Equipment - 2.0%
JDS Uniphase Corp. (a)	884,200		5,207,938
Polycom, Inc. (a)	14,200		349,320
			5,557,258
Electronic Equipment & Instruments - 5.8%
Agilent Technologies, Inc. (a)	120,700		4,219,672
Vishay Intertechnology, Inc. (a)	588,900		11,978,226
			16,197,898
Internet Software & Services - 0.1%
Overture Services, Inc. (a)	10,600		295,952
Semiconductor Equipment & Products - 17.7%
ASML Holding NV (NY Shares) (a)	446,400		11,325,168
Cypress Semiconductor Corp. (a)	368,800		8,482,400
LAM Research Corp. (a)	142,600		4,181,032
Lattice Semiconductor Corp. (a)	20,300		355,859
Micron Technology, Inc. (a)	73,600		2,421,440
NVIDIA Corp. (a)	133,300		5,913,188
Teradyne, Inc. (a)	412,600		16,268,811
			48,947,898
Software - 0.3%
Adobe Systems, Inc.	23,800		958,902
TOTAL INFORMATION TECHNOLOGY			71,957,908
MATERIALS - 0.9%
Containers & Packaging - 0.9%
Ball Corp.	50,606		2,389,615
TELECOMMUNICATION SERVICES - 4.1%
Diversified Telecommunication Services - 4.1%
ALLTEL Corp.	53,500		2,971,925
Common Stocks - continued
	Shares		Value (Note 1)
TELECOMMUNICATION SERVICES - continued
Diversified Telecommunication Services - continued
AT&T Corp.	235,600		$ 3,698,920
SBC Communications, Inc.	128,900		4,826,016
			11,496,861
TOTAL COMMON STOCKS (Cost $218,694,911)		238,053,756
Nonconvertible Preferred Stocks - 0.3%

CONSUMER DISCRETIONARY - 0.3%
Media - 0.3%
CSC Holdings, Inc. Series M, $11.125 (Cost $815,983)	7,693		792,379

Corporate Bonds - 11.7%
Moody's Ratings (unaudited) (b)		Principal Amount
Convertible Bonds - 0.0%
HEALTH CARE - 0.0%
Health Care Providers & Services - 0.0%
Tenet Healthcare Corp. (Ventas, Inc.) 6% 12/1/05	Ba1	$ 30,000		29,100
Nonconvertible Bonds - 11.7%
CONSUMER DISCRETIONARY - 4.4%
Auto Components - 0.2%
ArvinMeritor, Inc. 8.75% 3/1/12	Baa3	90,000		93,600
Delco Remy International, Inc. 11% 5/1/09	B2	110,000		99,000
Goodyear Tire & Rubber Co.:
6.625% 12/1/06	Baa3	50,000		47,250
7.857% 8/15/11	Baa3	120,000		116,400
8.5% 3/15/07	Baa3	30,000		30,300
Lear Corp. 8.11% 5/15/09	Ba1	75,000		77,250
				463,800
Hotels, Restaurants & Leisure - 1.1%
Alliance Gaming Corp. 10% 8/1/07	B3	40,000		42,100
Bally Total Fitness Holding Corp. 9.875% 10/15/07	B2	165,000		164,175
Boyd Gaming Corp. 9.25% 10/1/03	Ba3	60,000		62,100
Corporate Bonds - continued
Moody's Ratings (unaudited) (b)		Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
CONSUMER DISCRETIONARY - continued
Hotels, Restaurants & Leisure - continued
Capstar Hotel Co. 8.75% 8/15/07	Ba3	$ 10,000		$ 9,850
Circus Circus Enterprises, Inc.:
6.45% 2/1/06	Ba2	70,000		67,288
6.75% 7/15/03	Ba3	40,000		39,900
Coast Hotels & Casinos, Inc. 9.5% 4/1/09 (g)	B3	60,000		63,300
Courtyard by Marriott II LP/Courtyard II Finance Co. 10.75% 2/1/08	B1	10,000		10,313
Domino's, Inc. 10.375% 1/15/09	B3	240,000		260,400
Florida Panthers Holdings, Inc. 9.875% 4/15/09	B2	120,000		127,200
Friendly Ice Cream Corp. 10.5% 12/1/07	B3	70,000		67,200
Hilton Hotels Corp. 7.625% 5/15/08	Ba1	60,000		58,800
HMH Properties, Inc. 7.875% 8/1/05	Ba3	210,000		207,900
Hollywood Park, Inc. 9.25% 2/15/07	Caa1	70,000		66,500
International Game Technology 7.875% 5/15/04	Ba1	95,000		97,850
ITT Corp.:
6.75% 11/15/05	Ba1	100,000		99,000
7.375% 11/15/15	Ba1	120,000		112,800
Mandalay Resort Group 10.25% 8/1/07	Ba3	170,000		184,025
Mirage Resorts, Inc.:
6.75% 8/1/07	Ba1	70,000		67,655
7.25% 10/15/06	Ba1	150,000		149,697
Mohegan Tribal Gaming Authority:
8% 4/1/12 (g)	Ba3	90,000		89,550
8.125% 1/1/06	Ba2	120,000		123,000
Park Place Entertainment Corp.:
7.875% 12/15/05	Ba2	240,000		241,200
7.875% 3/15/10 (g)	Ba2	90,000		89,213
Resorts International Hotel & Casino, Inc. 11.5% 3/15/09 (g)	B2	130,000		122,850
Sun International Hotels Ltd./Sun International North America, Inc.:
8.875% 8/15/11	Ba3	90,000		91,575
yankee 8.625% 12/15/07	B2	10,000		10,150
Tricon Global Restaurants, Inc.:
8.5% 4/15/06	Ba1	90,000		93,375
8.875% 4/15/11	Ba1	110,000		116,600
				2,935,566
Corporate Bonds - continued
Moody's Ratings (unaudited) (b)		Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
CONSUMER DISCRETIONARY - continued
Household Durables - 0.3%
D.R. Horton, Inc. 8% 2/1/09	Ba1	$ 100,000		$ 98,500
Juno Lighting, Inc. 11.875% 7/1/09	B3	70,000		73,150
K. Hovnanian Enterprises, Inc. 8.875% 4/1/12 (g)	B2	130,000		126,425
Kaufman & Broad Home Corp. 7.75% 10/15/04	Ba2	70,000		71,925
Kinetic Concepts, Inc. 9.625% 11/1/07	B3	130,000		134,550
Lennar Corp. 9.95% 5/1/10	Ba1	120,000		133,800
Ryland Group, Inc. 9.75% 9/1/10	Ba2	50,000		54,250
WCI Communities, Inc. 10.625% 2/15/11	B1	100,000		108,000
				800,600
Internet & Catalog Retail - 0.0%
Amazon.com, Inc. 0% 5/1/08 (e)	B3	50,000		42,500
J. Crew Group, Inc. 0% 10/15/08 (e)	Caa3	140,000		88,200
				130,700
Leisure Equipment & Products - 0.1%
Hasbro, Inc.:
5.6% 11/1/05	Ba3	80,000		74,200
7.95% 3/15/03	Ba3	170,000		173,400
Hockey Co. 11.25% 4/15/09 (g)	B2	65,000		65,813
				313,413
Media - 1.9%
Adelphia Communications Corp.:
7.5% 1/15/04	B2	100,000		91,000
9.25% 10/1/02	B2	105,000		101,850
10.25% 11/1/06	B2	170,000		154,700
10.5% 7/15/04	B2	145,000		140,650
AMC Entertainment, Inc.:
9.5% 3/15/09	Caa3	20,000		19,900
9.875% 2/1/12 (g)	Caa3	110,000		110,550
American Media Operations, Inc.:
10.25% 5/1/09	B2	40,000		41,400
10.25% 5/1/09 (g)	B2	110,000		113,850
Charter Communications Holdings LLC/Charter Communications Holdings Capital Corp.:
0% 1/15/10 (e)	B2	20,000		13,700
0% 5/15/11 (e)	B2	530,000		307,400
8.25% 4/1/07	B2	10,000		9,150
Corporate Bonds - continued
Moody's Ratings (unaudited) (b)		Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
CONSUMER DISCRETIONARY - continued
Media - continued
Charter Communications Holdings LLC/Charter Communications Holdings Capital Corp.: - continued
8.625% 4/1/09	B2	$ 255,000		$ 232,050
9.625% 11/15/09	B2	100,000		95,500
9.625% 11/15/09 (g)	B2	170,000		161,500
10.25% 1/15/10	B2	100,000		98,000
Cinemark USA, Inc. 9.625% 8/1/08	Caa2	205,000		200,900
Corus Entertainment, Inc. 8.75% 3/1/12 (g)	B1	50,000		51,750
CSC Holdings, Inc.:
9.875% 4/1/23	BB-	100,000		106,000
10.5% 5/15/16	Ba3	275,000		305,250
EchoStar DBS Corp.:
9.125% 1/15/09 (g)	B1	40,000		41,100
9.25% 2/1/06	B1	25,000		25,625
Entravision Communications Corp. 8.125% 3/15/09 (g)	B3	30,000		30,338
Fox Family Worldwide, Inc.:
9.25% 11/1/07	Baa1	495,000		524,700
10.25% 11/1/07 (f)	Baa1	20,000		21,400
FrontierVision Holdings LP/FrontierVision Holdings Capital Corp. 11.875% 9/15/07	B2	500,000		505,000
FrontierVision Operating Partners LP/FrontierVision Capital Corp. 11% 10/15/06	B2	80,000		82,200
Granite Broadcasting Corp. 10.375% 5/15/05	Ca	20,000		18,400
K-III Communications Corp. 8.5% 2/1/06	B1	70,000		63,700
Lamar Media Corp. 9.25% 8/15/07	B1	80,000		83,600
Olympus Communications LP/Olympus Capital Corp. 10.625% 11/15/06	B2	340,000		329,800
Pegasus Satellite Communications, Inc. 12.375% 8/1/06	B3	140,000		98,000
PRIMEDIA, Inc. 8.875% 5/15/11	Ba3	70,000		62,300
Radio One, Inc. 8.875% 7/1/11	B3	145,000		152,250
Regal Cinemas Corp. 9.375% 2/1/12 (g)	B3	110,000		115,500
Satelites Mexicanos SA de CV 6.38% 6/30/04 (g)(h)	B1	120,000		106,800
Sinclair Broadcast Group, Inc.:
8% 3/15/12 (g)	B2	180,000		178,650
8.75% 12/15/07	B2	60,000		61,800
Corporate Bonds - continued
Moody's Ratings (unaudited) (b)		Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
CONSUMER DISCRETIONARY - continued
Media - continued
Spanish Broadcasting System, Inc. 9.625% 11/1/09	B3	$ 70,000		$ 73,063
Telemundo Holdings, Inc. 0% 8/15/08 (e)	B3	328,000		324,720
Yell Finance BV 10.75% 8/1/11	B2	120,000		129,600
				5,383,646
Multiline Retail - 0.3%
Dillard's, Inc.:
6.125% 11/1/03	Ba1	50,000		49,000
6.39% 8/1/03	Ba1	120,000		118,200
6.43% 8/1/04	Ba1	30,000		29,325
6.875% 6/1/05	Ba1	20,000		19,200
7.375% 6/1/06	Ba1	20,000		19,400
JCPenney Co., Inc.:
6.125% 11/15/03	Ba2	60,000		58,800
6.5% 6/15/02	Ba2	110,000		109,450
6.9% 8/15/26	Ba2	160,000		153,600
7.25% 4/1/02	Ba2	35,000		34,825
7.95% 4/1/17	Ba2	30,000		25,200
Saks, Inc.:
7.25% 12/1/04	B1	20,000		19,750
9.875% 10/1/11	B1	125,000		129,688
				766,438
Specialty Retail - 0.3%
AutoNation, Inc. 9% 8/1/08	Ba2	60,000		63,150
Gap, Inc.:
5.625% 5/1/03	Ba3	230,000		223,100
8.15% 12/15/05 (f)(g)	Ba3	140,000		135,100
8.8% 12/15/08 (f)(g)	Ba3	60,000		58,200
Michaels Stores, Inc. 9.25% 7/1/09	Ba2	120,000		127,800
Office Depot, Inc. 10% 7/15/08	Ba1	90,000		99,900
United Auto Group, Inc. 9.625% 3/15/12 (g)	B3	50,000		51,250
United Rentals, Inc.:
8.8% 8/15/08	B2	50,000		50,500
9% 4/1/09	B2	20,000		20,400
9.25% 1/15/09	B2	110,000		113,025
				942,425
Textiles & Apparel - 0.2%
Levi Strauss & Co. 6.8% 11/1/03	B2	270,000		263,250
Corporate Bonds - continued
Moody's Ratings (unaudited) (b)		Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
CONSUMER DISCRETIONARY - continued
Textiles & Apparel - continued
The William Carter Co. 10.875% 8/15/11	B3	$ 90,000		$ 96,525
Tommy Hilfiger USA, Inc. 6.5% 6/1/03	Ba1	170,000		168,725
				528,500
TOTAL CONSUMER DISCRETIONARY				12,265,088
CONSUMER STAPLES - 0.3%
Beverages - 0.1%
Canandaigua Brands, Inc. 8.625% 8/1/06	Ba2	70,000		74,025
Constellation Brands, Inc. 8.125% 1/15/12	Ba3	120,000		122,400
Cott Beverages, Inc. 8% 12/15/11 (g)	B2	90,000		91,125
				287,550
Food & Drug Retailing - 0.1%
Great Atlantic & Pacific Tea, Inc.:
7.75% 4/15/07	B2	60,000		59,775
9.125% 12/15/11	B2	70,000		73,150
Pathmark Stores, Inc. 8.75% 2/1/12 (g)	B2	50,000		51,750
				184,675
Food Products - 0.1%
Dean Foods Co.:
6.75% 6/15/05	B1	90,000		90,000
6.9% 10/15/17	B1	160,000		136,000
8.15% 8/1/07	B1	130,000		130,650
Del Monte Corp. 9.25% 5/15/11	B3	20,000		21,000
				377,650
Household Products - 0.0%
Fort James Corp. 6.875% 9/15/07	Baa3	30,000		28,050
TOTAL CONSUMER STAPLES				877,925
ENERGY - 0.7%
Energy Equipment & Services - 0.2%
DI Industries, Inc. 8.875% 7/1/07	B1	125,000		127,500
Grant Prideco, Inc. 9.625% 12/1/07	Ba3	100,000		104,000
Key Energy Services, Inc.:
8.375% 3/1/08	Ba3	40,000		41,000
Series B, 8.375% 3/1/08	Ba3	160,000		164,000
Corporate Bonds - continued
Moody's Ratings (unaudited) (b)		Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
ENERGY - continued
Energy Equipment & Services - continued
Parker Drilling Co. 9.75% 11/15/06	B1	$ 110,000		$ 112,750
				549,250
Oil & Gas - 0.5%
Chesapeake Energy Corp.:
7.875% 3/15/04	B1	220,000		222,200
8.125% 4/1/11	B1	460,000		461,150
Cross Timbers Oil Co.:
8.75% 11/1/09	Ba3	50,000		52,500
9.25% 4/1/07	Ba3	115,000		120,750
Forest Oil Corp. 8% 6/15/08	Ba3	85,000		87,338
Magnum Hunter Resources, Inc. 9.6% 3/15/12 (g)	B2	40,000		41,800
Pennzoil-Quaker State Co.:
6.75% 4/1/09	Ba2	10,000		10,250
9.4% 12/1/02 (f)	Ba2	20,000		20,400
10% 11/1/08 (g)	Ba3	170,000		197,200
Plains Resources, Inc. 10.25% 3/15/06	B2	10,000		10,350
Pogo Producing Co. 8.25% 4/15/11	B1	130,000		135,850
Triton Energy Ltd. yankee 8.875% 10/1/07	BBB	50,000		54,625
Triton Energy Ltd./Triton Energy Corp. 9.25% 4/15/05	Baa2	50,000		54,625
				1,469,038
TOTAL ENERGY				2,018,288
FINANCIALS - 1.0%
Banks - 0.1%
Capital One Bank 6.7% 5/15/08	Baa2	20,000		21,038
Sovereign Bancorp, Inc.:
8.625% 3/15/04	Ba2	300,000		309,750
10.5% 11/15/06	Ba2	70,000		76,650
				407,438
Diversified Financials - 0.5%
Armkel Finance, Inc. 9.5% 8/15/09	B2	70,000		74,900
BRL Universal Equipment 2001 A LP/BRL Universal Equipment Corp. 8.875% 2/15/08	Ba3	170,000		175,100
Corporate Bonds - continued
Moody's Ratings (unaudited) (b)		Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
FINANCIALS - continued
Diversified Financials - continued
Capital One Financial Corp.:
7.25% 12/1/03	Baa3	$ 20,000		$ 19,800
7.25% 5/1/06	Baa3	70,000		65,800
8.75% 2/1/07	Baa3	20,000		19,800
Continental Airlines, Inc.:
pass thru trust certificate:
6.795% 8/2/18	Baa3	19,803		18,326
7.256% 9/15/21	Baa1	17,699		17,108
6.9% 1/2/17	Baa3	38,102		35,085
Dana Credit Corp. 7.25% 12/6/02 (g)	Ba3	100,000		98,250
Delta Air Lines, Inc. pass thru trust certificate 7.92% 5/18/12	A3	50,000		49,290
El Paso Energy Partners LP/El Paso Energy Partners Finance Corp. 8.5% 6/1/11	B1	75,000		77,250
Entercom Radio LLC/Entercom Capital, Inc. 7.625% 3/1/14	Ba3	30,000		29,850
GS Escrow Corp. 7% 8/1/03	Ba1	115,000		116,157
IOS Capital, Inc. 9.75% 6/15/04	Baa2	110,000		111,100
Mediacom Broadband LLC/Mediacom Broadband Corp. 11% 7/15/13	B2	160,000		177,600
Meditrust Exercisable Put Options Securities Trust 7.114% 8/15/04 (g)	Ba3	20,000		19,600
Qwest Capital Funding, Inc. 5.875% 8/3/04	Baa3	110,000		93,687
SESI LLC 8.875% 5/15/11	B1	100,000		100,000
Stone Container Finance Co. yankee 11.5% 8/15/06 (g)	B2	15,000		16,275
U.S. West Capital Funding, Inc. 6.25% 7/15/05	Baa3	110,000		94,973
Xerox Capital (Europe) PLC 5.75% 5/15/02	Ba1	100,000		98,000
				1,507,951
Real Estate - 0.4%
iStar Financial, Inc. 8.75% 8/15/08	Ba1	125,000		125,625
LNR Property Corp.:
9.375% 3/15/08	Ba3	55,000		55,550
10.5% 1/15/09	Ba3	30,000		31,500
Meditrust Corp.:
7% 8/15/07	Ba3	40,000		37,800
7.82% 9/10/26	Ba3	315,000		315,000
MeriStar Hospitality Corp. 9% 1/15/08	Ba3	130,000		132,600
Corporate Bonds - continued
Moody's Ratings (unaudited) (b)		Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
FINANCIALS - continued
Real Estate - continued
Senior Housing Properties Trust 8.625% 1/15/12	Ba2	$ 130,000		$ 134,550
Toll Corp. 8.25% 12/1/11	Ba2	140,000		140,700
				973,325
TOTAL FINANCIALS				2,888,714
HEALTH CARE - 0.8%
Health Care Providers & Services - 0.7%
AdvancePCS 8.5% 4/1/08	B1	175,000		185,500
Alderwoods Group, Inc.:
11% 1/2/07	-	40,000		40,400
12.25% 1/2/09	-	25,000		26,969
Beverly Enterprises, Inc.:
9% 2/15/06	B1	10,000		9,950
9.625% 4/15/09	B1	20,000		20,500
Columbia/HCA Healthcare Corp. 6.73% 7/15/45	Ba1	165,000		166,650
DaVita, Inc. 9.25% 4/15/11	B2	70,000		81,900
Dynacare, Inc. yankee 10.75% 1/15/06	B2	20,000		20,700
Express Scripts, Inc. 9.625% 6/15/09	Ba1	30,000		33,000
Hanger Orthopedic Group, Inc. 10.375% 2/15/09 (g)	B2	40,000		42,000
HCA, Inc.:
7.875% 2/1/11	Ba1	15,000		15,563
8.75% 9/1/10	Ba1	85,000		92,225
HealthSouth Corp. 6.875% 6/15/05	Ba1	60,000		59,700
Owen & Minor, Inc. 8.5% 7/15/11	Ba3	70,000		73,150
Rotech Healthcare, Inc. 9.5% 4/1/12 (g)	B2	40,000		41,300
Service Corp. International (SCI):
6% 12/15/05	B1	90,000		82,350
6.3% 3/15/03	B1	130,000		124,800
7.2% 6/1/06	B1	130,000		122,850
7.375% 4/15/04	B1	310,000		305,350
Triad Hospitals Holdings, Inc. 11% 5/15/09	B2	95,000		105,925
Triad Hospitals, Inc. 8.75% 5/1/09	B1	150,000		159,000
Vanguard Health Systems, Inc. 9.75% 8/1/11	B3	130,000		137,150
				1,946,932
Corporate Bonds - continued
Moody's Ratings (unaudited) (b)		Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
HEALTH CARE - continued
Pharmaceuticals - 0.1%
aaiPharma, Inc. 11% 4/1/10 (g)	Caa1	$ 100,000		$ 100,000
Biovail Corp. 7.875% 4/1/10	B2	65,000		64,594
				164,594
TOTAL HEALTH CARE				2,111,526
INDUSTRIALS - 1.1%
Aerospace & Defense - 0.1%
Alliant Techsystems, Inc. 8.5% 5/15/11	B2	130,000		137,800
BE Aerospace, Inc.:
8% 3/1/08	B3	30,000		27,600
9.5% 11/1/08	B1	60,000		56,400
Sequa Corp. 8.875% 4/1/08	Ba3	75,000		72,000
				293,800
Airlines - 0.3%
AMR Corp. 9% 8/1/12	B1	30,000		29,100
Continental Airlines, Inc. 8% 12/15/05	B3	160,000		150,800
Delta Air Lines, Inc.:
6.65% 3/15/04	Ba3	70,000		67,900
7.7% 12/15/05	Ba3	110,000		106,150
7.9% 12/15/09	Ba3	70,000		66,500
8.3% 12/15/29	Ba3	50,000		42,500
Northwest Airlines, Inc.:
7.625% 3/15/05	B2	50,000		47,000
8.375% 3/15/04	B2	50,000		48,000
8.52% 4/7/04	B2	10,000		9,625
8.875% 6/1/06	B2	20,000		19,100
9.875% 3/15/07	B2	90,000		88,425
United Air Lines, Inc.:
9% 12/15/03	Caa1	50,000		41,750
10.67% 5/1/04	Caa1	10,000		7,700
				724,550
Commercial Services & Supplies - 0.3%
Allied Waste North America, Inc.:
7.375% 1/1/04	Ba3	145,000		145,000
8.5% 12/1/08 (g)	Ba3	220,000		220,000
10% 8/1/09	B2	105,000		107,100
Corporate Bonds - continued
Moody's Ratings (unaudited) (b)		Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
INDUSTRIALS - continued
Commercial Services & Supplies - continued
Browning-Ferris Industries, Inc. 6.375% 1/15/08	Ba3	$ 25,000		$ 22,750
Coinmach Corp. 9% 2/1/10 (g)	B2	100,000		103,500
Iron Mountain, Inc.:
8.625% 4/1/13	B2	140,000		144,900
8.75% 9/30/09	B2	75,000		77,625
Mail-Well I Corp. 9.625% 3/15/12 (g)	B1	60,000		61,800
				882,675
Machinery - 0.2%
AGCO Corp. 9.5% 5/1/08	Ba3	100,000		108,000
Dresser, Inc. 9.375% 4/15/11 (g)	B2	130,000		133,900
Dunlop Standard Aerospace Holdings PLC yankee 11.875% 5/15/09	B3	160,000		163,200
Joy Global, Inc. 8.75% 3/15/12 (g)	B2	30,000		30,900
Navistar International Corp. 9.375% 6/1/06	Ba1	40,000		42,200
Terex Corp. 8.875% 4/1/08	B2	110,000		112,200
				590,400
Marine - 0.1%
Teekay Shipping Corp. 8.875% 7/15/11	Ba2	270,000		283,500
Road & Rail - 0.1%
Kansas City Southern Railway Co. 9.5% 10/1/08	Ba2	70,000		75,600
TFM SA de CV yankee:
0% 6/15/09 (e)	B1	165,000		153,863
10.25% 6/15/07	B1	30,000		28,200
Williams Scotsman, Inc. 9.875% 6/1/07 (g)	B3	110,000		110,963
				368,626
TOTAL INDUSTRIALS				3,143,551
INFORMATION TECHNOLOGY - 0.6%
Communications Equipment - 0.2%
Avaya, Inc. 11.125% 4/1/09	Ba2	90,000		88,200
Crown Castle International Corp.:
9.375% 8/1/11	B3	270,000		226,800
9.5% 8/1/11	B3	45,000		37,800
Corporate Bonds - continued
Moody's Ratings (unaudited) (b)		Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
INFORMATION TECHNOLOGY - continued
Communications Equipment - continued
Crown Castle International Corp.: - continued
10.75% 8/1/11	B3	$ 30,000		$ 26,700
L-3 Communications Corp. 8% 8/1/08	Ba3	75,000		77,250
				456,750
Electronic Equipment & Instruments - 0.2%
Fisher Scientific International, Inc. 9% 2/1/08	B3	125,000		129,688
Flextronics International Ltd. yankee 8.75% 10/15/07	Ba2	105,000		107,100
Ingram Micro, Inc. 9.875% 8/15/08	Ba2	130,000		137,150
Solectron Corp. 9.625% 2/15/09	Ba1	70,000		69,475
				443,413
IT Consulting & Services - 0.1%
Unisys Corp. 8.125% 6/1/06	Ba1	180,000		183,600
Office Electronics - 0.0%
Mediacom LLC/Mediacom Capital Corp. 9.5% 1/15/13	B2	100,000		103,500
Semiconductor Equipment & Products - 0.1%
Amkor Technology, Inc.:
9.25% 5/1/06	B1	160,000		158,800
9.25% 2/15/08	B1	70,000		68,950
Fairchild Semiconductor Corp. 10.375% 10/1/07	B2	100,000		106,750
				334,500
TOTAL INFORMATION TECHNOLOGY				1,521,763
MATERIALS - 1.3%
Chemicals - 0.4%
Foamex LP/Foamex Capital Corp. 10.75% 4/1/09 (g)	B3	55,000		56,100
Georgia Gulf Corp. 10.375% 11/1/07	B2	125,000		132,500
Huntsman International LLC 9.875% 3/1/09 (g)	B3	80,000		81,200
IMC Global, Inc.:
10.875% 6/1/08	Ba1	30,000		33,150
11.25% 6/1/11	Ba1	30,000		33,150
Lyondell Chemical Co.:
9.625% 5/1/07	Ba3	70,000		71,225
9.875% 5/1/07	Ba3	100,000		102,000
Corporate Bonds - continued
Moody's Ratings (unaudited) (b)		Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
MATERIALS - continued
Chemicals - continued
Methanex Corp. yankee 7.75% 8/15/05	Ba1	$ 130,000		$ 127,400
OM Group, Inc. 9.25% 12/15/11 (g)	B3	180,000		188,550
Quaker State Corp. 6.625% 10/15/05	Ba2	130,000		133,575
				958,850
Containers & Packaging - 0.4%
Applied Extrusion Technologies, Inc. 10.75% 7/1/11	B2	150,000		159,000
Graphic Packaging Corp. 8.625% 2/15/12 (g)	B2	30,000		31,050
Owens-Brockway Glass Container, Inc. 8.875% 2/15/09 (g)	B2	150,000		152,625
Owens-Illinois, Inc.:
7.15% 5/15/05	B3	40,000		38,600
7.35% 5/15/08	B3	10,000		9,175
7.5% 5/15/10	B3	20,000		18,000
7.8% 5/15/18	B3	180,000		148,950
7.85% 5/15/04	B3	40,000		38,900
Riverwood International Corp.:
10.25% 4/1/06	B-	150,000		155,250
10.875% 4/1/08	Caa1	90,000		93,375
Sealed Air Corp.:
6.95% 5/15/09 (g)	Baa3	300,000		279,000
8.75% 7/1/08 (g)	Baa3	50,000		51,500
				1,175,425
Metals & Mining - 0.4%
AK Steel Corp.:
7.875% 2/15/09	B1	115,000		115,000
9.125% 12/15/06	B1	15,000		15,525
Century Aluminum Co. 11.75% 4/15/08	Ba3	40,000		42,400
Luscar Coal Ltd. 9.75% 10/15/11 (g)	Ba3	60,000		64,500
P&L Coal Holdings Corp. 9.625% 5/15/08	B1	385,000		410,988
Phelps Dodge Corp.:
7.125% 11/1/27	Baa3	80,000		58,400
8.75% 6/1/11	Baa3	120,000		119,400
9.5% 6/1/31	Baa3	110,000		104,500
Steel Dynamics, Inc. 9.5% 3/15/09 (g)	B2	50,000		51,500
				982,213
Paper & Forest Products - 0.1%
Container Corp. of America 9.75% 4/1/03	B2	29,000		29,870
Corporate Bonds - continued
Moody's Ratings (unaudited) (b)		Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
MATERIALS - continued
Paper & Forest Products - continued
Georgia-Pacific Group:
7.5% 5/15/06	Baa3	$ 20,000		$ 19,550
8.125% 5/15/11	Baa3	40,000		39,200
8.875% 5/15/31	Baa3	60,000		55,800
Louisiana-Pacific Corp.:
8.5% 8/15/05	Ba1	40,000		41,200
10.875% 11/15/08	Ba2	30,000		32,100
Stone Container Corp. 9.75% 2/1/11	B2	105,000		113,400
				331,120
TOTAL MATERIALS				3,447,608
TELECOMMUNICATION SERVICES - 0.8%
Diversified Telecommunication Services - 0.3%
Centennial Cellular Operating Co. LLC/Centennial Finance Corp. 10.75% 12/15/08	B3	195,000		105,300
Cincinnati Bell Telephone Co. 6.3% 12/1/28	Ba1	250,000		168,750
Insight Midwest LP/Insight Capital, Inc. 10.5% 11/1/10	B1	110,000		118,250
Price Communications Wireless, Inc.:
9.125% 12/15/06	Baa2	200,000		208,000
11.75% 7/15/07	Baa3	120,000		128,100
Tritel PCS, Inc. 10.375% 1/15/11	B3	90,000		100,800
Triton PCS, Inc. 9.375% 2/1/11	B3	105,000		101,850
				931,050
Wireless Telecommunication Services - 0.5%
American Tower Corp. 9.375% 2/1/09	B3	90,000		66,600
Echostar Broadband Corp. 10.375% 10/1/07	B1	555,000		595,238
Nextel Communications, Inc. 0% 10/31/07 (e)	B1	380,000		237,500
PanAmSat Corp.:
6% 1/15/03	Ba2	20,000		19,900
6.125% 1/15/05	Ba2	70,000		68,600
6.375% 1/15/08	Ba2	90,000		87,300
8.5% 2/1/12 (g)	Ba3	60,000		59,700
Corporate Bonds - continued
Moody's Ratings (unaudited) (b)		Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
TELECOMMUNICATION SERVICES - continued
Wireless Telecommunication Services - continued
VoiceStream Wireless Corp.:
0% 11/15/09 (e)	Baa1	$ 134,000		$ 112,560
10.375% 11/15/09	Baa1	84,000		91,560
				1,338,958
TOTAL TELECOMMUNICATION SERVICES				2,270,008
UTILITIES - 0.7%
Electric Utilities - 0.7%
CMS Energy Corp.:
7.5% 1/15/09	Ba3	10,000		9,850
8.375% 7/1/03	Ba3	170,000		171,700
8.9% 7/15/08	Ba3	140,000		145,600
9.875% 10/15/07	Ba3	237,000		257,145
Orion Power Holdings, Inc. 12% 5/1/10	Ba3	325,000		378,625
Pacific Gas & Electric Co.:
6.25% 8/1/03	B3	160,000		158,400
6.25% 3/1/04	B3	285,000		282,150
7.375% 11/1/05 (d)(g)	Caa2	130,000		142,350
Southern California Edison Co.:
5.625% 10/1/02	Ba2	40,000		39,600
6.25% 6/15/03	Ba2	20,000		19,600
8.95% 11/3/03	Ba3	200,000		204,000
				1,809,020
TOTAL NONCONVERTIBLE BONDS				32,353,491
TOTAL CORPORATE BONDS (Cost $31,716,614)			32,382,591
Asset-Backed Securities - 0.0%

Northwest Airlines pass thru trust certificate 9.179% 10/1/11 (Cost $20,955)	Ba2	25,789		24,242

Money Market Funds - 5.6%
	Shares		Value (Note 1)
Fidelity Cash Central Fund, 1.86% (c)	4,604,740		$ 4,604,740
Fidelity Securities Lending Cash Central Fund, 1.87% (c)	10,866,042		10,866,042
TOTAL MONEY MARKET FUNDS (Cost $15,470,782)		15,470,782
Cash Equivalents - 0.0%
	Maturity Amount
Investments in repurchase agreements (U.S. Treasury Obligations), in a joint trading account at 1.78%, dated 3/29/02 due 4/1/02 (Cost $34,000)	$ 34,005		34,000
TOTAL INVESTMENT PORTFOLIO - 103.4% (Cost $266,753,245)			286,757,750
NET OTHER ASSETS - (3.4)%			(9,409,689)
NET ASSETS - 100%		$ 277,348,061

Legend

(a) Non-income producing

(b) S&P credit ratings are used in the absence of a rating by Moody's Investors Service, Inc.

(c) The rate quoted is the annualized seven-day yield of the fund at period end. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request.

(d) Non-income producing - issuer filed for bankruptcy or is in default of interest payments.

(e) Debt obligation initially issued in zero coupon form which converts to coupon form at a specified rate and date. The rate shown is the rate at period end.

(f) Debt obligation initially issued at one coupon which converts to a higher coupon at a specified date. The rate shown is the rate at period end.

(g) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the period end, the value of these securities amounted to $4,230,177 or 1.5% of net assets.

(h) The coupon rate shown on floating or adjustable rate securities represents the rate at period end.

Other Information

The composition of long-term debt holdings as a percentage of total value of investments in securities, is as follows (ratings are unaudited):

Moody's Ratings		S&P Ratings
Aaa, Aa, A	0.0%	AAA, AA, A	0.2%
Baa	0.9%	BBB	1.3%
Ba	4.2%	BB	4.2%
B	5.7%	B	4.9%
Caa	0.3%	CCC	0.5%
Ca, C	0.0%	CC, C	0.0%
		D	0.0%

Purchases and sales of securities, other than short-term securities, aggregated $370,749,186 and $397,139,144, respectively.

The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $25,433 for the period.

Income Tax Information

At March 31, 2002, the aggregate cost of investment securities for income tax purposes was $268,109,775. Net unrealized appreciation aggregated $18,647,975, of which $30,222,065 related to appreciated investment securities and $11,574,090 related to depreciated investment securities.

At September 30, 2001, the fund had a capital loss carryforward of approximately $152,000 all of which will expire on September 30, 2009.

The fund intends to elect to defer to its fiscal year ending September 30, 2002 approximately $131,331,000 of losses recognized during the period November 1, 2000 to September 30, 2001.

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Financial Statements

Statement of Assets and Liabilities

	March 31, 2002 (Unaudited)
Assets
Investment in securities, at value (including securities loaned of $10,200,732 and repurchase agreements of $34,000)(cost $266,753,245) - See accompanying schedule		$ 286,757,750
Cash		338
Receivable for investments sold		7,830,938
Receivable for fund shares sold		135,837
Dividends receivable		110,902
Interest receivable		799,561
Other receivables		2,541
Total assets		295,637,867
Liabilities
Payable for investments purchased	$ 6,759,306
Payable for fund shares redeemed	465,067
Accrued management fee	134,885
Other payables and accrued expenses	64,506
Collateral on securities loaned, at value	10,866,042
Total liabilities		18,289,806
Net Assets		$ 277,348,061
Net Assets consist of:
Paid in capital		$ 410,779,016
Undistributed net investment income		174,344
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions		(153,609,798)
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies		20,004,499
Net Assets, for 25,632,336 shares outstanding		$ 277,348,061
Net Asset Value, offering price and redemption price per share ($277,348,061 ÷ 25,632,336 shares)		$ 10.82

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Financial Statements - continued

Statement of Operations

	Six months ended March 31, 2002 (Unaudited)
Investment Income
Dividends		$ 567,818
Interest		1,840,819
Security lending		6,058
Total income		2,414,695
Expenses
Management fee	$ 806,946
Transfer agent fees	402,987
Accounting and security lending fees	51,458
Non-interested trustees' compensation	460
Custodian fees and expenses	17,605
Audit	13,617
Legal	1,192
Miscellaneous	12,489
Total expenses before reductions	1,306,754
Expense reductions	(75,222)	1,231,532
Net investment income (loss)		1,183,163
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities	(20,631,174)
Foreign currency transactions	(8,187)
Futures contracts	347,408
Total net realized gain (loss)		(20,291,953)
Change in net unrealized appreciation (depreciation) on: Investment securities	58,505,920
Assets and liabilities in foreign currencies	160
Total change in net unrealized appreciation (depreciation)		58,506,080
Net gain (loss)		38,214,127
Net increase (decrease) in net assets resulting from operations		$ 39,397,290

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Statement of Changes in Net Assets

	Six months ended March 31, 2002 (Unaudited)	Year ended September 30, 2001
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 1,183,163	$ 6,386,386
Net realized gain (loss)	(20,291,953)	(130,131,309)
Change in net unrealized appreciation (depreciation)	58,506,080	(44,978,534)
Net increase (decrease) in net assets resulting from operations	39,397,290	(168,723,457)
Distributions to shareholders from net investment income	(5,795,162)	(4,182,506)
Distributions to shareholders from net realized gain	-	(19,297,262)
Total distributions	(5,795,162)	(23,479,768)
Share transactions Net proceeds from sales of shares	31,714,883	268,634,415
Reinvestment of distributions	5,616,534	22,867,308
Cost of shares redeemed	(57,902,520)	(400,239,892)
Net increase (decrease) in net assets resulting from share transactions	(20,571,103)	(108,738,169)
Total increase (decrease) in net assets	13,031,025	(300,941,394)
Net Assets
Beginning of period	264,317,036	565,258,430
End of period (including undistributed net investment income of $174,344 and undistributed net investment income of $4,823,338, respectively)	$ 277,348,061	$ 264,317,036
Other Information Shares
Sold	3,007,795	20,320,180
Issued in reinvestment of distributions	527,374	1,783,719
Redeemed	(5,526,107)	(31,385,745)
Net increase (decrease)	(1,990,938)	(9,281,846)

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Financial Highlights

	Six months ended March 31, 2002	Years ended September 30,
	(Unaudited)	2001	2000	1999^E
Selected Per-Share Data
Net asset value, beginning of period	$ 9.57	$ 15.32	$ 10.22	$ 10.00
Income from Investment Operations
Net investment income (loss)^D	.04	.20	.19	.01
Net realized and unrealized gain (loss)	1.43	(5.22)	4.98	.21
Total from investment operations	1.47	(5.02)	5.17	.22
Distributions from net investment income	(.22)	(.13)	(.02)	-
Distributions from net realized gain	-	(.60)	(.05)	-
Total distributions	(.22)	(.73)	(.07)	-
Net asset value, end of period	$ 10.82	$ 9.57	$ 15.32	$ 10.22
Total Return^{B, C}	15.40%	(33.98)%	50.84%	2.20%
Ratios to Average Net Assets^F
Expenses before expense reductions	.94%^A	.89%	.96%	57.49%^A
Expenses net of voluntary waivers, if any	.94%^A	.89%	.96%	1.20%^A
Expenses net of all reductions	.89%^A	.85%	.90%	1.20%^A
Net investment income (loss)	.85%^A	1.55%	1.32%	4.06%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 277,348	$ 264,317	$ 565,258	$ 3,065
Portfolio turnover rate	280%^A	255%	338%	0%^A

^A Annualized

^B Total returns for periods of less than one year are not annualized.

^C Total returns would have been lower had certain expenses not been reduced during the periods shown.

^D Calculated based on average shares outstanding during the period.

^E For the period September 24, 1999 (commencement of operations) to September 30, 1999.

^F Expense ratios reflect operating expenses of the fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the fund during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of voluntary waivers reflects expenses after reimbursements by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the fund.

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Notes to Financial Statements

For the period ended March 31, 2002 (Unaudited)

1. Significant Accounting Policies.

Fidelity Asset Manager: Aggressive (the fund) is a fund of Fidelity Charles Street Trust (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the fund:

Security Valuation. Net asset value per share is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Equity securities for which quotations are readily available are valued at the last sale price, or if no sale price, at the closing bid price. Foreign equity securities are valued based on quotations from the principal market in which such securities are normally traded. If trading or events occurring in other markets after the close of the principal market in which foreign securities are traded, and before the close of business of the fund, are expected to materially affect the value of those securities, then they are valued at their fair value taking this trading or these events into account. Fair value is determined in good faith under consistently applied procedures under the general supervision of the Board of Trustees. Debt securities for which quotations are readily available are valued by a pricing service at their market values as determined by their most recent bid prices in the principal market (sales prices if the principal market is an exchange) in which such securities are normally traded. Securities (including restricted securities) for which market quotations are not readily available are valued at their fair value. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost or original cost plus accrued interest, both of which approximate current value. Investments in open-end investment companies are valued at their net asset value each business day.

Foreign Currency. The fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.

Foreign denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.

The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

1. Significant Accounting Policies - continued

Income Taxes. As a qualified regulated investment company under Subchapter M of the Internal Revenue Code, the fund is not subject to income taxes to the extent that it distributes all of its taxable income for its fiscal year. The Schedule of Investments includes information regarding income taxes, if any, under the caption "Income Tax Information."

Investment Income. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income, which includes amortization of premium and accretion of discount on debt securities, as required, is accrued as earned. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. The fund may place a debt obligation on non-accrual status and reduce related interest income by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures, under the general supervision of the Board of Trustees of the fund. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectibility of interest is reasonably assured.

Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among the funds in the trust.

Distributions to Shareholders. Distributions are recorded on the ex-dividend date.

Income and capital gain distributions are determined in accordance with income tax regulations which may differ from generally accepted accounting principles. These differences are primarily due to differing treatments for paydown gains/losses on certain securities, futures transactions, foreign currency transactions, market discount, non-taxable dividends, capital loss carryforwards, and losses deferred due to wash sales.

Permanent book and tax basis differences relating to shareholder distributions will result in reclassifications to paid in capital. Temporary book and tax basis differences will reverse in a subsequent period.

Security Transactions. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost.

Change in Accounting Principle. Effective October 1, 2001, the fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premium and discount on all debt securities, as required. The cumulative effect of this accounting change had no impact on total net assets of the fund, but resulted in a $212,966 increase to the cost of securities held and a corresponding increase to accumulated net undistributed realized gain (loss), based on securities held by the fund on October 1, 2001.

Semiannual Report

2. Operating Policies.

Joint Trading Account. Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (the SEC), the fund, along with other affiliated entities of Fidelity Management & Research Company (FMR), may transfer uninvested cash balances into one or more joint trading accounts. These balances are invested in one or more repurchase agreements for U.S. Treasury or Federal Agency obligations.

Repurchase Agreements. The underlying U.S. Treasury, Federal Agency, or other obligations found to be satisfactory by FMR are transferred to an account of the fund, or to the Joint Trading Account, at a custodian bank. The securities are marked-to-market daily and maintained at a value at least equal to the principal amount of the repurchase agreement (including accrued interest). FMR, the fund's investment adviser, is responsible for determining that the value of the underlying securities remains in accordance with the market value requirements stated above.

Futures Contracts. The fund may use futures contracts to manage its exposure to the stock market. Buying futures tends to increase the fund's exposure to the underlying instrument, while selling futures tends to decrease the fund's exposure to the underlying instrument or hedge other fund investments. Losses may arise from changes in the value of the underlying instruments or if the counterparties do not perform under the contracts' terms. Gains (losses) are realized upon the expiration or closing of the futures contracts. Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded.

Restricted Securities. The fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included under the captions "Legend" and/or "Other Information" at the end of the fund's Schedule of Investments.

3. Purchases and Sales of Investments.

Information regarding purchases and sales of securities is included under the caption "Other Information" at the end of the fund's Schedule of Investments.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

4. Fees and Other Transactions with Affiliates.

Management Fee. FMR and its affiliates provide the fund with investment management related services for which the fund pays a monthly management fee.

The management fee is the sum of an individual fund fee rate of .30% of the fund's average net assets and a group fee rate that averaged .28% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .58% of the fund's average net assets.

Transfer Agent Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, is the fund's transfer, dividend disbursing and shareholder servicing agent. FSC receives account fees and asset-based fees that vary according to account size and type of account. FSC pays for typesetting, printing and mailing of all shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to an annualized rate of .29% of average net assets.

Accounting and Security Lending Fees. FSC maintains the fund's accounting records and administers the security lending program. The security lending fee is based on the number and duration of lending transactions. The accounting fee is based on the level of average net assets for the month plus out-of-pocket expenses.

Central Funds. The fund may invest in affiliated Central Funds managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR. The Central Funds are open-end investment companies available only to investment companies and other accounts managed by FMR and its affiliates. The Central Funds seek preservation of capital and current income and do not pay a management fee. Income distributions earned by the fund are recorded as income in the accompanying financial statements and totaled $108,183 for the period.

Brokerage Commissions. The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms are shown under the caption "Other Information" at the end of the fund's Schedule of Investments.

5. Committed Line of Credit.

The fund participates with other funds managed by FMR in a $3.5 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The fund has agreed to pay commitment fees on its pro rata portion of the line of credit. During the period, there were no borrowings on this line of credit.

Semiannual Report

6. Security Lending.

The fund lends portfolio securities from time to time in order to earn additional income. The fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the fund and any additional required collateral is delivered to the fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Cash collateral is invested in cash equivalents. The value of loaned securities and cash collateral at period end are disclosed on the fund's Statement of Assets and Liabilities.

7. Expense Reductions.

Certain security trades were directed to brokers who paid $75,222 of the fund's expenses.

Semiannual Report

Investment Adviser

Fidelity Management & Research Company

Boston, MA

Investment Sub-Advisers

FMR Co., Inc.

Fidelity Investments Money
Management, Inc.

Fidelity Management & Research

(U.K.) Inc.

Fidelity Management & Research

(Far East) Inc.

Fidelity Investments Japan Limited

General Distributor

Fidelity Distributors Corporation

Boston, MA

Transfer and Shareholder
Servicing Agent

Fidelity Service Company, Inc.

Boston, MA

Custodian

JPMorgan Chase Bank

New York, NY

Fidelity's Asset Allocation Funds

Asset Manager^SM

Asset Manager: Aggressive®

Asset Manager: Growth®

Asset Manager: Income®

Fidelity Freedom Funds® -
Income, 2000, 2010, 2020, 2030, 2040

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Semiannual Report

March 31, 2002

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President's Message	<Click Here>	Ned Johnson on investing strategies.
Performance	<Click Here>	How the fund has done over time.
Market Recap	<Click Here>	An overview of the market's performance and the factors driving it.
Fund Talk	<Click Here>	The manager's review of fund performance, strategy and outlook.
Investment Changes	<Click Here>	A summary of major shifts in the fund's investments over the past six months.
Investments	<Click Here>	A complete list of the fund's investments with their market values.
Financial Statements	<Click Here>	Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights.
Notes	<Click Here>	Notes to the financial statements.

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Semiannual Report

President's Message

(photo_of_Edward_C_Johnson_3d)

Dear Shareholder:

While it's impossible to predict the future direction of the markets with any degree of certainty, there are certain basic principles that can help investors plan for their future needs.

Best regards,

/s/Edward C. Johnson 3d

Edward C. Johnson 3d

Semiannual Report

Performance: The Bottom Line

Cumulative Total Returns

Periods ended March 31, 2002	Past 6 months	Past 1 year	Past 5 years	Past 10 years
Fidelity ® Asset Manager: Growth ®	10.43%	2.80%	53.29%	189.12%
Fidelity Asset Manager: Growth Composite	7.80%	2.01%	58.42%	192.80%
S&P 500 ®	10.99%	0.24%	62.35%	247.31%
LB Aggregate Bond	0.14%	5.35%	44.02%	103.82%
LB 3 Month T-Bill	1.08%	3.33%	28.26%	59.31%
Flexible Portfolio Funds Average	7.06%	1.16%	44.54%	145.33%

Cumulative total returns show the fund's performance in percentage terms over a set period - in this case, six months, one year, five years or 10 years. For example, if you had invested $1,000 in a fund that had a 5% return over the past year, the value of your investment would be $1,050. You can compare the fund's returns to the performance of the Fidelity Asset Manager: Growth Composite Index, a hypothetical combination of unmanaged indices. The composite index combines the total returns of the Standard & Poor's 500^SM Index®, the Lehman Brothers® Aggregate Bond Index and the Lehman Brothers 3 Month Treasury Bill Index weighted according to the fund's neutral mix. To measure how the fund's performance stacked up against its peers, you can compare it to the flexible portfolio funds average, which reflects the performance of mutual funds with similar objectives tracked by Lipper Inc. The past six months average represents a peer group of 297 mutual funds. These benchmarks include reinvested dividends and capital gains, if any, and exclude the effect of sales charges.

Average Annual Total Returns

Periods ended March 31, 2002	Past 1 year	Past 5 years	Past 10 years
Fidelity Asset Manager: Growth	2.80%	8.92%	11.20%
Fidelity Asset Manager: Growth Composite	2.01%	9.64%	11.34%

Average annual total returns take the fund's cumulative return and show you what would have happened if the fund had performed at a constant rate each year.

Semiannual Report

Performance - continued

$10,000 Over 10 Years

$10,000 Over 10 Years: Let's say hypothetically that $10,000 was invested in Fidelity® Asset Manager: Growth® Fund on March 31, 1992. As the chart shows, by March 31, 2002, the value of the investment would have grown to $28,912 - a 189.12% increase on the initial investment. For comparison, look at how both the S&P 500 Index, a market capitalization-weighted index of common stocks, and the Lehman Brothers Aggregate Bond Index, a market value-weighted index of investment-grade fixed-rate debt issues, including government, corporate, asset-backed, and mortgage-backed securities, with maturities of one year or more, did over the same period. With dividends and capital gains, if any, reinvested, the same $10,000 investment in the S&P 500 Index would have grown to $34,731 - a 247.31% increase. If $10,000 was invested in the Lehman Brothers Aggregate Bond Index, it would have grown to $20,382 - a 103.82% increase. You can also look at how the Fidelity Asset Manager: Growth Composite Index, did over the same period. The composite index combines the total returns of the S&P 500 Index, the Lehman Brothers Aggregate Bond Index and the Lehman Brothers 3-month T-Bill Index according to the fund's neutral mix and assumes monthly rebalancing of the mix.** With dividends and capital gains, if any, reinvested, the same $10,000 investment would have grown to $29,280 - a 192.80% increase.

Understanding
Performance

** Currently 70% stocks, 25% bonds and 5% short-term/money market instruments effective January 1, 1997; 65%, 30% and 5%, respectively, prior to January 1, 1997.

Semiannual Report

Market Recap

Semiannual Report

(Portfolio Manager photograph)
Fund Talk: The Manager's Overview

An interview with Richard Habermann, Portfolio Manager of Asset Manager: Growth

Q. How did the fund perform, Dick?

A. It fared well. For the six months ending March 31, 2002, the fund returned 10.43%, topping the Fidelity Asset Manager: Growth Composite Index, which returned 7.80%. The fund also outpaced the flexible portfolio funds average monitored by Lipper Inc., which returned 7.06%. For the one-year period ending March 31, 2002, the fund returned 2.80%, while the Composite index and Lipper average returned 2.01% and 1.16%, respectively.

Q. What influence did your asset-allocation decisions have on fund results during the six-month period?

A. A bias toward equities paid off relative to the index, as stocks outpaced most other asset classes during the past six months. Our average exposure during the period was just over 71%, compared to 70% in a neutral weighting. Becoming more aggressive in the fourth quarter helped - as did strong security selection - as stocks snapped back in anticipation of an economic recovery. We then benefited from assuming a more cautious stance heading into 2002 by scaling back on equities as valuations began to look stretched, given little-to-no improvement in company fundamentals and concerns about the Enron debacle. Raising our exposure to high-yield securities - which we felt were oversold amid the flight to quality in government bonds following September 11 - also was a plus. High-yield bonds rebounded strongly from their September lows as economic and issuer levels improved. By emphasizing high-yield rather than poorer-performing investment-grade bonds and cash, we widened our performance advantage over both the index and peer average.

Q. How would you describe the performance of the fund's equity subportfolio?

A. The equity portion of the fund beat the S&P 500 by a respectable margin. Charles Mangum, who directed the fund's equity investments, deserves credit for finding and exploiting value opportunities in the market. While sector positioning was critical to his success, so was stock picking, as several high-profile companies disappointed on earnings and/or experienced severe financial stress. Charles' pursuit of growth at a reasonable price worked well, as he added exposure to high-quality names within such volatile sectors as technology that were badly beaten down coming out of 9/11. Within tech, the fund benefited most from Charles' focus on more established and stable companies that he felt would rebound faster than the more aggressive, debt-burdened companies. Sizable positions in large-caps Micron Technology, Dell and Microsoft helped quite a bit, as did taking profits on smaller-sized stocks, such as Network Associates, that had performed well but became expensive late in 2001. Other cyclical plays that helped us during the fourth quarter included energy services stocks such as BJ Services, and media holdings such as Clear Channel Communications. Additionally, Charles added to positions in a handful of attractively priced consumer staples stocks, including Coca-Cola, which - due to their defensive nature - fared well during the second half of the period as the prospects for a vigorous economic recovery waned.

Semiannual Report

Fund Talk: The Manager's Overview - continued

Q. What moves dampened returns?

A. The fund was hurt by the continued struggles of leading pharmaceutical companies, most notably Bristol-Myers Squibb and Schering-Plough. These stocks - and drug stocks in general - declined due to manufacturing problems, sluggish new product pipelines and drug approval delays. Simply put, using health care as a growth surrogate for tech stocks failed us during the period. In finance, we benefited from emphasizing banks and some of the more aggressive brokerage-related names, but gave a lot back by overweighting defensive holdings such as Fannie Mae and Freddie Mac, which lagged the market.

Q. What drove the fixed-income portion of the fund?

A. While each component of our fixed-income subportfolio outperformed the Lehman Brothers Aggregate Bond Index, the fund's high-yield holdings - managed by Matt Conti - had the most influence on subportfolio returns. After suffering one of the worst monthly performances in their history in September, high-yield bonds rallied strongly behind improved economic indicators, issuer fundamentals and overall credit quality, among other factors. Performance benefited from the high coupon income received during the period and from the capital appreciation on our investments. Matt extended his lead over the Lehman Brothers index by focusing on sectors that had big recoveries, namely hotels and airlines. Maintaining a higher-quality, income-focused structure in the fund also helped in a period of high default rates.

Q. What about the fund's investment-grade bond and short-term/money market investments?

A. The fund's investment-grade holdings, managed by Charlie Morrison, benefited from emphasizing the spread sectors, particularly corporate and mortgage securities, which performed well in a steepening yield curve environment as investors sought out higher-yielding alternatives to government bonds. Favorable sector selection drove performance within corporates, as did strong security selection, which helped us avoid several prominent issuers that collapsed as a result of the Enron-related fallout. Within mortgages, we focused on securities less susceptible to being prepaid, which helped amid the massive refinancing wave in the fall. Finally, given its conservative nature, the strategic cash portion of the fund, managed by John Todd, did what it's designed to do - provide reasonably steady returns to help offset capital market volatility.

Q. What's your outlook?

Semiannual Report

coupons and still-cheap relative valuations, I've become less positive of late given their recent strong performance.

Fund Facts

Goal: maximum total return over the long term through investing in stocks, bonds and short-term and money market instruments

Fund number: 321

Trading symbol: FASGX

Start date: December 30, 1991

Size: as of March 31, 2002, more than $4.1 billion

Manager: Richard Habermann, since 1996; manager, Fidelity Asset Manager: Aggressive, since 1999; Fidelity Asset Manager and Fidelity Asset Manager: Income, since 1996; Fidelity Trend Fund, 1977-1982; Fidelity Magellan Fund, 1972-1977; joined Fidelity in 1968

Dick Habermann discusses a recovery in equities:

"I'm still looking for a catalyst to get equities back on track. It would be highly unusual for stocks to underperform bonds for a third straight year. Moreover, if you look back at post-World War II history, excluding 2000-01, there was only one instance in which we even had back-to-back down years in the S&P 500. While the probability is slim for stocks to pull off a three-peat, it's not impossible. We're already seeing the factors driving economic growth in recent months begin to show signs of reversing. Among the key drivers were low interest rates, low energy prices and a huge mortgage-refinancing boom that has since ended. This reversal may, in fact, take some steam out of the once-resilient consumer, leaving corporations to pick up the slack by boosting capital expenditures. The problem is, corporations are still very cautious given uncertainty about earnings - the lifeblood of capital spending - and are thus unlikely to step in and fill the void. Exports, given a continued strong dollar, might not provide much help either. So, as the inventory correction nears an end in most sectors, particularly technology, there needs to be a resurgence in end demand from businesses to help grow earnings, strengthen the economy and power stock prices from today's still-lofty levels."

Note to shareholders: Effective April 1, 2002, Jeff Moore assumed responsibility for managing the fund's investment-grade bond subportfolio.

Semiannual Report

Investment Changes

Top Ten Stocks as of March 31, 2002
	% of fund's net assets	% of fund's net assets 6 months ago
Cardinal Health, Inc.	5.1	4.7
Clear Channel Communications, Inc.	3.4	3.2
General Electric Co.	3.2	2.3
Fannie Mae	3.1	1.5
Bristol-Myers Squibb Co.	3.0	3.9
American International Group, Inc.	2.6	1.0
Citigroup, Inc.	2.4	2.6
Microsoft Corp.	2.1	2.2
The Coca-Cola Co.	2.0	0.8
Philip Morris Companies, Inc.	1.8	1.7
	28.7
Market Sectors as of March 31, 2002
(stocks only)	% of fund's net assets	% of fund's net assets 6 months ago
Financials	15.9	15.8
Health Care	13.2	12.6
Consumer Discretionary	8.4	6.5
Information Technology	7.9	9.9
Consumer Staples	7.6	5.6
Industrials	6.8	7.3
Telecommunication Services	4.7	4.7
Energy	3.5	4.0
Utilities	0.6	0.1
Materials	0.5	1.4

Asset Allocation (% of fund's net assets)
As of March 31, 2002 *			As of September 30, 2001**
	Stock class 68.8%			Stock class, and equity futures 71.3%
	Bond class 29.6%			Bond class 23.4%
	Short-term class 1.6%			Short-term class 5.3%
* Foreign investments		2.3%	** Foreign investments		2.5%

Asset allocations in the pie charts reflect the categorization of assets as defined in the fund's prospectus in effect as of the time periods indicated above. Financial Statement categorizations conform to accounting standards and will differ from the pie chart.

Semiannual Report

Investments March 31, 2002 (Unaudited)

Showing Percentage of Net Assets

Common Stocks - 68.3%
	Shares		Value (Note 1) (000s)
CONSUMER DISCRETIONARY - 7.9%
Auto Components - 0.1%
Dana Corp.	187,800		$ 4,032
Hotels, Restaurants & Leisure - 0.3%
McDonald's Corp.	438,800		12,177
Household Durables - 0.3%
Centex Corp.	65,100		3,381
KB Home	73,800		3,203
Leggett & Platt, Inc.	113,300		2,810
Pulte Homes, Inc.	42,200		2,019
			11,413
Media - 4.9%
AOL Time Warner, Inc. (a)	2,432,950		57,539
Clear Channel Communications, Inc. (a)	2,748,809		141,316
Comcast Corp. Class A (special) (a)	159,500		5,072
Viacom, Inc. Class B (non-vtg.) (a)	48,600		2,351
			206,278
Multiline Retail - 0.8%
Costco Wholesale Corp. (a)	178,300		7,100
Federated Department Stores, Inc. (a)	307,000		12,541
Target Corp.	297,200		12,815
			32,456
Specialty Retail - 1.5%
Abercrombie & Fitch Co. Class A (a)	122,000		3,758
Gap, Inc.	167,300		2,516
Home Depot, Inc.	537,600		26,133
Lowe's Companies, Inc.	583,700		25,385
The Limited, Inc.	360,910		6,460
			64,252
Textiles & Apparel - 0.0%
Arena Brands Holdings Corp. Class B	5,556		107
TOTAL CONSUMER DISCRETIONARY			330,715
CONSUMER STAPLES - 7.6%
Beverages - 2.8%
PepsiCo, Inc.	625,805		32,229
The Coca-Cola Co.	1,639,550		85,683
			117,912
Common Stocks - continued
	Shares		Value (Note 1) (000s)
CONSUMER STAPLES - continued
Food & Drug Retailing - 1.9%
Albertson's, Inc.	767,200		$ 25,425
CVS Corp.	1,119,900		38,446
Safeway, Inc. (a)	292,500		13,168
			77,039
Food Products - 0.1%
Kraft Foods, Inc. Class A	65,200		2,520
Personal Products - 1.0%
Alberto-Culver Co. Class B	272,970		14,740
Estee Lauder Companies, Inc. Class A	148,100		5,059
Gillette Co.	684,630		23,284
			43,083
Tobacco - 1.8%
Philip Morris Companies, Inc.	1,444,000		76,055
TOTAL CONSUMER STAPLES			316,609
ENERGY - 3.5%
Energy Equipment & Services - 0.3%
GlobalSantaFe Corp.	179,117		5,857
Halliburton Co.	290,700		4,962
			10,819
Oil & Gas - 3.2%
ChevronTexaco Corp.	408,900		36,911
Conoco, Inc.	2,589,799		75,570
Exxon Mobil Corp.	526,000		23,055
			135,536
TOTAL ENERGY			146,355
FINANCIALS - 15.6%
Banks - 5.5%
Bank of America Corp.	224,400		15,264
Bank One Corp.	317,300		13,257
Comerica, Inc.	972,500		60,849
FleetBoston Financial Corp.	787,700		27,570
PNC Financial Services Group, Inc.	1,122,100		68,998
Synovus Financial Corp.	401,800		12,247
Common Stocks - continued
	Shares		Value (Note 1) (000s)
FINANCIALS - continued
Banks - continued
U.S. Bancorp, Delaware	549,747		$ 12,408
Wachovia Corp.	480,913		17,832
			228,425
Diversified Financials - 6.6%
American Express Co.	97,200		3,981
Citigroup, Inc.	2,019,433		100,002
Fannie Mae	1,626,680		129,939
Merrill Lynch & Co., Inc.	470,700		26,067
Morgan Stanley Dean Witter & Co.	264,400		15,153
			275,142
Insurance - 3.5%
AFLAC, Inc.	261,920		7,727
Allmerica Financial Corp.	261,100		11,723
American International Group, Inc.	1,522,300		109,819
Hartford Financial Services Group, Inc.	262,200		17,861
PartnerRe Ltd.	17,800		972
			148,102
TOTAL FINANCIALS			651,669
HEALTH CARE - 13.2%
Health Care Equipment & Supplies - 1.0%
C.R. Bard, Inc.	130,400		7,700
Guidant Corp. (a)	656,160		28,425
Zimmer Holdings, Inc. (a)	160,200		5,455
			41,580
Health Care Providers & Services - 5.1%
Cardinal Health, Inc.	3,022,120		214,228
Pharmaceuticals - 7.1%
Bristol-Myers Squibb Co.	3,121,300		126,381
Elan Corp. PLC sponsored ADR (a)	822,000		11,434
Eli Lilly & Co.	43,600		3,322
Pfizer, Inc.	1,581,300		62,841
Pharmacia Corp.	251,000		11,315
Common Stocks - continued
	Shares		Value (Note 1) (000s)
HEALTH CARE - continued
Pharmaceuticals - continued
Schering-Plough Corp.	1,362,980		$ 42,661
Wyeth	567,800		37,276
			295,230
TOTAL HEALTH CARE			551,038
INDUSTRIALS - 6.8%
Aerospace & Defense - 0.3%
United Technologies Corp.	141,300		10,484
Airlines - 0.2%
AMR Corp. (a)	107,900		2,850
Delta Air Lines, Inc.	91,600		2,997
Southwest Airlines Co.	162,900		3,152
			8,999
Building Products - 0.2%
Masco Corp.	281,500		7,727
Commercial Services & Supplies - 0.5%
Allied Waste Industries, Inc. (a)	176,400		2,293
ChoicePoint, Inc. (a)	295,450		17,018
			19,311
Industrial Conglomerates - 4.5%
General Electric Co.	3,574,900		133,880
Textron, Inc.	164,000		8,380
Tyco International Ltd.	1,481,100		47,869
			190,129
Machinery - 0.4%
Ingersoll-Rand Co. Ltd. Class A	283,900		14,201
Parker Hannifin Corp.	65,100		3,248
			17,449
Road & Rail - 0.7%
Burlington Northern Santa Fe Corp.	651,110		19,650
Union Pacific Corp.	171,740		10,672
			30,322
TOTAL INDUSTRIALS			284,421
Common Stocks - continued
	Shares		Value (Note 1) (000s)
INFORMATION TECHNOLOGY - 7.9%
Communications Equipment - 0.8%
Cisco Systems, Inc. (a)	1,626,495		$ 27,537
Comverse Technology, Inc. (a)	483,000		6,120
			33,657
Computers & Peripherals - 1.1%
Dell Computer Corp. (a)	1,462,300		38,181
EMC Corp. (a)	324,200		3,864
Sun Microsystems, Inc. (a)	595,700		5,254
			47,299
Electronic Equipment & Instruments - 0.5%
Avnet, Inc.	110,300		2,985
Ingram Micro, Inc. Class A (a)	194,700		3,222
Solectron Corp. (a)	1,407,300		10,977
Symbol Technologies, Inc.	314,100		3,530
			20,714
IT Consulting & Services - 0.1%
Electronic Data Systems Corp.	48,600		2,818
Semiconductor Equipment & Products - 2.3%
Altera Corp. (a)	320,300		7,005
Analog Devices, Inc. (a)	202,300		9,112
Intel Corp.	786,900		23,930
Linear Technology Corp.	293,700		12,987
Micron Technology, Inc. (a)	518,600		17,062
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR	461,800		9,582
Teradyne, Inc. (a)	39,200		1,546
United Microelectronics Corp. sponsored ADR	833,600		8,878
Xilinx, Inc. (a)	173,100		6,900
			97,002
Software - 3.1%
Adobe Systems, Inc.	227,200		9,154
Computer Associates International, Inc.	1,278,900		27,995
Microsoft Corp. (a)	1,466,500		88,445
Oracle Corp. (a)	475,400		6,085
			131,679
TOTAL INFORMATION TECHNOLOGY			333,169
Common Stocks - continued
	Shares		Value (Note 1) (000s)
MATERIALS - 0.5%
Chemicals - 0.1%
E.I. du Pont de Nemours & Co.	128,200		$ 6,045
Praxair, Inc.	16,200		969
			7,014
Metals & Mining - 0.2%
Alcoa, Inc.	227,500		8,586
Paper & Forest Products - 0.2%
International Paper Co.	170,600		7,338
TOTAL MATERIALS			22,938
TELECOMMUNICATION SERVICES - 4.7%
Diversified Telecommunication Services - 4.6%
AT&T Corp.	1,409,100		22,123
BellSouth Corp.	1,229,700		45,327
Qwest Communications International, Inc.	1,043,600		8,578
SBC Communications, Inc.	1,493,900		55,932
Verizon Communications, Inc.	1,371,700		62,618
			194,578
Wireless Telecommunication Services - 0.1%
Nextel Communications, Inc. Class A (a)	522,800		2,813
TOTAL TELECOMMUNICATION SERVICES			197,391
UTILITIES - 0.6%
Electric Utilities - 0.6%
AES Corp. (a)	244,600		2,201
FirstEnergy Corp.	508,500		17,584
Southern Co.	210,700		5,581
			25,366
TOTAL COMMON STOCKS (Cost $2,759,238)		2,859,671
Preferred Stocks - 0.8%

Convertible Preferred Stocks - 0.1%
FINANCIALS - 0.1%
Diversified Financials - 0.1%
AES Trust VII $3.00	141,200		2,704
Preferred Stocks - continued
	Shares		Value (Note 1) (000s)
Nonconvertible Preferred Stocks - 0.7%
CONSUMER DISCRETIONARY - 0.5%
Media - 0.5%
CSC Holdings, Inc.:
Series H, $11.75	14,540		$ 1,527
Series M, $11.125	200,465		20,648
			22,175
FINANCIALS - 0.2%
Insurance - 0.0%
American Annuity Group Capital Trust II $88.75	1,800		1,656
Real Estate - 0.2%
California Federal Preferred Capital Corp. Series A, $2.2812	298,366		7,459
TOTAL FINANCIALS			9,115
TOTAL NONCONVERTIBLE PREFERRED STOCKS			31,290
TOTAL PREFERRED STOCKS (Cost $33,424)		33,994

Corporate Bonds - 21.8%
Moody's Ratings (unaudited) (b)		Principal Amount (000s)
Convertible Bonds - 2.6%
CONSUMER DISCRETIONARY - 0.5%
Media - 0.3%
EchoStar Communications Corp. 5.75% 5/15/08 (g)	Caa1	$ 13,200		12,276
Specialty Retail - 0.2%
Gap, Inc. 5.75% 3/15/09 (g)	Ba3	6,280		7,300
TOTAL CONSUMER DISCRETIONARY				19,576
FINANCIALS - 0.1%
Diversified Financials - 0.1%
Elan Finance Corp. Ltd. liquid yield option note 0% 12/14/18	Baa3	9,660		4,697
Corporate Bonds - continued
Moody's Ratings (unaudited) (b)		Principal Amount (000s)		Value (Note 1) (000s)
Convertible Bonds - continued
HEALTH CARE - 0.5%
Biotechnology - 0.3%
Affymetrix, Inc. 4.75% 2/15/07	-	$ 13,480		$ 10,750
Health Care Providers & Services - 0.2%
Tenet Healthcare Corp. (Ventas, Inc.) 6% 12/1/05	Ba1	10,345		10,035
TOTAL HEALTH CARE				20,785
INFORMATION TECHNOLOGY - 1.1%
Communications Equipment - 0.6%
CIENA Corp. 3.75% 2/1/08	Ba3	3,340		2,150
Comverse Technology, Inc. 1.5% 12/1/05	BB	9,430		7,217
Juniper Networks, Inc. 4.75% 3/15/07	B2	19,012		13,660
ONI Systems Corp. 5% 10/15/05	CCC	3,110		2,384
Redback Networks, Inc. 5% 4/1/07	-	850		442
				25,853
Electronic Equipment & Instruments - 0.3%
Agilent Technologies, Inc. 3% 12/1/21 (g)	Baa2	3,090		3,892
Sanmina-SCI Corp.:
0% 9/12/20	Ba3	22,245		8,035
4.25% 5/1/04	Ba2	2,420		2,281
				14,208
Semiconductor Equipment & Products - 0.2%
Atmel Corp. 0% 5/23/21	CCC+	6,260		2,105
Vitesse Semiconductor Corp. 4% 3/15/05	B2	5,710		4,525
				6,630
Software - 0.0%
Network Associates, Inc. 5.25% 8/15/06 (g)	-	890		1,384
TOTAL INFORMATION TECHNOLOGY				48,075
TELECOMMUNICATION SERVICES - 0.3%
Diversified Telecommunication Services - 0.1%
Korea Telecom Corp. 0.25% 1/4/07 (g)	Baa2	2,480		2,833
Wireless Telecommunication Services - 0.2%
Aether Systems, Inc. 6% 3/22/05	-	3,360		1,843
Nextel Communications, Inc.:
4.75% 7/1/07	B1	1,610		950
Corporate Bonds - continued
Moody's Ratings (unaudited) (b)		Principal Amount (000s)		Value (Note 1) (000s)
Convertible Bonds - continued
TELECOMMUNICATION SERVICES - continued
Wireless Telecommunication Services - continued
Nextel Communications, Inc.: - continued
6% 6/1/11 (g)	B1	$ 3,260		$ 1,813
6% 6/1/11	B1	10,980		6,107
				10,713
TOTAL TELECOMMUNICATION SERVICES				13,546
UTILITIES - 0.1%
Multi-Utilities - 0.1%
Enron Corp. 0% 2/7/21 (d)	Ca	33,920		3,053
TOTAL CONVERTIBLE BONDS				109,732
Nonconvertible Bonds - 19.2%
CONSUMER DISCRETIONARY - 7.3%
Auto Components - 0.3%
American Axle & Manufacturing, Inc. 9.75% 3/1/09	Ba3	1,460		1,562
ArvinMeritor, Inc. 8.75% 3/1/12	Baa3	2,050		2,132
Delco Remy International, Inc. 11% 5/1/09	B2	1,250		1,125
Goodyear Tire & Rubber Co.:
6.625% 12/1/06	Baa3	1,020		964
7.857% 8/15/11	Baa3	1,600		1,552
8.5% 3/15/07	Baa3	400		404
Lear Corp. 8.11% 5/15/09	Ba1	3,055		3,147
				10,886
Hotels, Restaurants & Leisure - 1.9%
Alliance Gaming Corp. 10% 8/1/07	B3	3,115		3,279
Anchor Gaming 9.875% 10/15/08	Ba3	640		714
Aztar Corp. 8.875% 5/15/07	Ba3	750		769
Bally Total Fitness Holding Corp. 9.875% 10/15/07	B2	3,720		3,701
Boyd Gaming Corp. 9.25% 10/1/03	Ba3	2,105		2,179
Capstar Hotel Co. 8.75% 8/15/07	Ba3	195		192
Circus Circus Enterprises, Inc.:
6.45% 2/1/06	Ba2	710		682
6.75% 7/15/03	Ba3	440		439
Coast Hotels & Casinos, Inc. 9.5% 4/1/09 (g)	B3	1,250		1,319
Corporate Bonds - continued
Moody's Ratings (unaudited) (b)		Principal Amount (000s)		Value (Note 1) (000s)
Nonconvertible Bonds - continued
CONSUMER DISCRETIONARY - continued
Hotels, Restaurants & Leisure - continued
Courtyard by Marriott II LP/Courtyard II Finance Co. 10.75% 2/1/08	B1	$ 4,365		$ 4,501
Domino's, Inc. 10.375% 1/15/09	B3	4,810		5,219
Florida Panthers Holdings, Inc. 9.875% 4/15/09	B2	2,540		2,692
Friendly Ice Cream Corp. 10.5% 12/1/07	B3	1,250		1,200
Harrah's Operating Co., Inc. 7.875% 12/15/05	Ba1	2,700		2,822
Herbst Gaming, Inc. 10.75% 9/1/08	B2	1,570		1,649
Hilton Hotels Corp. 7.625% 5/15/08	Ba1	2,190		2,146
HMH Properties, Inc.:
7.875% 8/1/05	Ba3	1,820		1,802
7.875% 8/1/08	Ba3	820		804
Hollywood Park, Inc. 9.25% 2/15/07	Caa1	1,045		993
Host Marriott LP 9.5% 1/15/07 (g)	Ba3	1,650		1,737
International Game Technology:
7.875% 5/15/04	Ba1	1,745		1,797
8.375% 5/15/09	Ba1	2,850		2,964
ITT Corp.:
6.75% 11/15/05	Ba1	1,090		1,079
7.375% 11/15/15	Ba1	2,430		2,284
Mandalay Resort Group 10.25% 8/1/07	Ba3	2,900		3,139
MGM Mirage, Inc. 9.75% 6/1/07	Ba2	1,080		1,166
Mirage Resorts, Inc.:
6.625% 2/1/05	Ba1	280		277
6.75% 8/1/07	Ba1	850		822
7.25% 10/15/06	Ba1	2,800		2,794
Mohegan Tribal Gaming Authority:
8% 4/1/12 (g)	Ba3	2,050		2,040
8.125% 1/1/06	Ba2	3,435		3,521
Park Place Entertainment Corp.:
7.875% 12/15/05	Ba2	2,130		2,141
7.875% 3/15/10 (g)	Ba2	2,050		2,032
9.375% 2/15/07	Ba2	1,410		1,498
Resorts International Hotel & Casino, Inc. 11.5% 3/15/09 (g)	B2	3,030		2,863
Sun International Hotels Ltd./Sun International North America, Inc.:
8.875% 8/15/11	Ba3	4,185		4,258
Corporate Bonds - continued
Moody's Ratings (unaudited) (b)		Principal Amount (000s)		Value (Note 1) (000s)
Nonconvertible Bonds - continued
CONSUMER DISCRETIONARY - continued
Hotels, Restaurants & Leisure - continued
Sun International Hotels Ltd./Sun International North America, Inc.: - continued
yankee:
8.625% 12/15/07	B2	$ 680		$ 690
9% 3/15/07	B2	975		1,007
Tricon Global Restaurants, Inc.:
8.5% 4/15/06	Ba1	2,385		2,474
8.875% 4/15/11	Ba1	3,800		4,028
				81,713
Household Durables - 0.6%
D.R. Horton, Inc.:
8% 2/1/09	Ba1	4,470		4,403
10.5% 4/1/05	Ba1	480		516
Juno Lighting, Inc. 11.875% 7/1/09	B3	1,620		1,693
K. Hovnanian Enterprises, Inc. 8.875% 4/1/12 (g)	B2	3,040		2,956
Kaufman & Broad Home Corp. 7.75% 10/15/04	Ba2	760		781
KB Home 8.625% 12/15/08	Ba3	2,070		2,122
Kinetic Concepts, Inc. 9.625% 11/1/07	B3	2,070		2,142
Lennar Corp. 9.95% 5/1/10	Ba1	1,470		1,639
Mohawk Industries, Inc. 6.5% 4/15/07 (g)	Baa2	290		291
Ryland Group, Inc.:
9.125% 6/15/11	Ba3	970		1,028
9.75% 9/1/10	Ba2	1,510		1,638
WCI Communities, Inc. 10.625% 2/15/11	B1	5,335		5,762
				24,971
Internet & Catalog Retail - 0.1%
Amazon.com, Inc. 0% 5/1/08 (e)	B3	610		519
J. Crew Group, Inc. 0% 10/15/08 (e)	Caa3	3,390		2,136
				2,655
Leisure Equipment & Products - 0.2%
Hasbro, Inc.:
5.6% 11/1/05	Ba3	2,680		2,486
6.15% 7/15/08	Ba3	520		478
7.95% 3/15/03	Ba3	3,250		3,315
Hockey Co. 11.25% 4/15/09 (g)	B2	1,415		1,433
				7,712
Corporate Bonds - continued
Moody's Ratings (unaudited) (b)		Principal Amount (000s)		Value (Note 1) (000s)
Nonconvertible Bonds - continued
CONSUMER DISCRETIONARY - continued
Media - 3.1%
Adelphia Communications Corp.:
7.5% 1/15/04	B2	$ 2,135		$ 1,943
9.25% 10/1/02	B2	370		359
10.25% 11/1/06	B2	2,220		2,020
10.25% 6/15/11	B2	3,770		3,393
10.5% 7/15/04	B2	1,130		1,096
10.875% 10/1/10	B2	1,020		938
AMC Entertainment, Inc.:
9.5% 3/15/09	Caa3	230		229
9.875% 2/1/12 (g)	Caa3	2,660		2,673
American Media Operations, Inc.:
10.25% 5/1/09	B2	640		662
10.25% 5/1/09 (g)	B2	1,980		2,049
British Sky Broadcasting Group PLC yankee:
7.3% 10/15/06	Ba1	2,770		2,763
8.2% 7/15/09	Ba1	1,070		1,078
Century Communications Corp. 8.375% 12/15/07	B2	520		468
Chancellor Media Corp. 8% 11/1/08	Ba1	165		174
Charter Communications Holdings LLC/Charter Communications Holdings Capital Corp.:
0% 1/15/10 (e)	B2	880		603
0% 4/1/11 (e)	B2	1,560		1,076
0% 5/15/11 (e)	B2	8,460		4,907
8.25% 4/1/07	B2	2,820		2,580
8.625% 4/1/09	B2	6,900		6,279
9.625% 11/15/09	B2	1,040		993
9.625% 11/15/09 (g)	B2	3,870		3,677
10% 4/1/09	B2	5,755		5,611
10.25% 1/15/10	B2	1,335		1,308
10.75% 10/1/09	B2	1,325		1,338
11.125% 1/15/11	B2	1,425		1,446
Cinemark USA, Inc. 9.625% 8/1/08	Caa2	3,275		3,210
Clear Channel Communications, Inc. 6% 11/1/06	Baa3	620		604
Corus Entertainment, Inc. 8.75% 3/1/12 (g)	B1	980		1,014
CSC Holdings, Inc.:
9.875% 4/1/23	BB-	1,435		1,521
10.5% 5/15/16	Ba3	2,980		3,308
Corporate Bonds - continued
Moody's Ratings (unaudited) (b)		Principal Amount (000s)		Value (Note 1) (000s)
Nonconvertible Bonds - continued
CONSUMER DISCRETIONARY - continued
Media - continued
EchoStar DBS Corp.:
9.125% 1/15/09 (g)	B1	$ 960		$ 986
9.25% 2/1/06	B1	9,395		9,630
Entravision Communications Corp. 8.125% 3/15/09 (g)	B3	610		617
Fox Family Worldwide, Inc.:
9.25% 11/1/07	Baa1	6,155		6,524
10.25% 11/1/07 (f)	Baa1	2,115		2,263
FrontierVision Holdings LP/FrontierVision Holdings Capital Corp. 11.875% 9/15/07	B2	6,301		6,364
FrontierVision Operating Partners LP/FrontierVision Capital Corp. 11% 10/15/06	B2	8,282		8,510
Granite Broadcasting Corp. 10.375% 5/15/05	Ca	310		285
Hearst-Argyle Television, Inc. 7.5% 11/15/27	Baa3	690		587
Insight Communications, Inc. 0% 2/15/11 (e)	B3	2,570		1,671
K-III Communications Corp. 8.5% 2/1/06	B1	1,050		956
Lamar Media Corp. 9.25% 8/15/07	B1	1,040		1,087
News America Holdings, Inc.:
7.7% 10/30/25	Baa3	950		899
8% 10/17/16	Baa3	720		738
Olympus Communications LP/Olympus Capital Corp. 10.625% 11/15/06	B2	5,830		5,655
Pegasus Satellite Communications, Inc.:
0% 3/1/07 (e)	Caa1	3,320		1,328
12.375% 8/1/06	B3	1,710		1,197
PRIMEDIA, Inc. 8.875% 5/15/11	Ba3	1,370		1,219
Radio One, Inc. 8.875% 7/1/11	B3	2,720		2,856
Regal Cinemas Corp. 9.375% 2/1/12 (g)	B3	1,520		1,596
Satelites Mexicanos SA de CV 6.38% 6/30/04 (g)(i)	B1	2,414		2,148
Shaw Communications, Inc. 8.25% 4/11/10	Baa3	700		735
Sinclair Broadcast Group, Inc.:
8% 3/15/12 (g)	B2	3,600		3,573
8.75% 12/15/07	B2	1,250		1,288
Spanish Broadcasting System, Inc. 9.625% 11/1/09	B3	810		845
TCI Communications, Inc. 9.8% 2/1/12	Baa2	465		517
Telemundo Holdings, Inc. 0% 8/15/08 (e)	B3	4,575		4,529
Corporate Bonds - continued
Moody's Ratings (unaudited) (b)		Principal Amount (000s)		Value (Note 1) (000s)
Nonconvertible Bonds - continued
CONSUMER DISCRETIONARY - continued
Media - continued
Yell Finance BV:
0% 8/1/11 (e)	B2	$ 2,190		$ 1,424
10.75% 8/1/11	B2	1,590		1,717
				131,064
Multiline Retail - 0.4%
Dillard's, Inc.:
6.125% 11/1/03	Ba1	2,545		2,494
6.39% 8/1/03	Ba1	2,470		2,433
6.43% 8/1/04	Ba1	450		440
6.875% 6/1/05	Ba1	330		317
7.375% 6/1/06	Ba1	330		320
Federated Department Stores, Inc.:
6.79% 7/15/27	Baa1	1,100		1,139
8.5% 6/15/03	Baa1	520		543
JCPenney Co., Inc.:
6.125% 11/15/03	Ba2	945		926
6.5% 6/15/02	Ba2	1,390		1,383
6.9% 8/15/26	Ba2	2,265		2,174
7.25% 4/1/02	Ba2	510		507
7.95% 4/1/17	Ba2	400		336
Saks, Inc.:
7.25% 12/1/04	B1	190		188
7.5% 12/1/10	B1	1,150		1,081
8.25% 11/15/08	B1	1,040		1,019
9.875% 10/1/11	B1	2,622		2,720
				18,020
Specialty Retail - 0.4%
AutoNation, Inc. 9% 8/1/08	Ba2	750		789
Gap, Inc.:
5.625% 5/1/03	Ba3	4,690		4,549
8.15% 12/15/05 (f)(g)	Ba3	2,120		2,046
8.8% 12/15/08 (f)(g)	Ba3	750		728
Michaels Stores, Inc. 9.25% 7/1/09	Ba2	1,740		1,853
Office Depot, Inc. 10% 7/15/08	Ba1	1,755		1,948
PETCO Animal Supplies, Inc. 10.75% 11/1/11 (g)	B3	510		560
United Auto Group, Inc. 9.625% 3/15/12 (g)	B3	900		923
Corporate Bonds - continued
Moody's Ratings (unaudited) (b)		Principal Amount (000s)		Value (Note 1) (000s)
Nonconvertible Bonds - continued
CONSUMER DISCRETIONARY - continued
Specialty Retail - continued
United Rentals, Inc.:
8.8% 8/15/08	B2	$ 800		$ 808
9% 4/1/09	B2	190		194
9.25% 1/15/09	B2	1,700		1,747
				16,145
Textiles & Apparel - 0.3%
Jones Apparel Group, Inc. 7.875% 6/15/06	Baa2	1,270		1,316
Levi Strauss & Co. 6.8% 11/1/03	B2	3,995		3,895
The William Carter Co. 10.875% 8/15/11	B3	1,470		1,577
Tommy Hilfiger USA, Inc. 6.5% 6/1/03	Ba1	3,960		3,930
				10,718
TOTAL CONSUMER DISCRETIONARY				303,884
CONSUMER STAPLES - 0.5%
Beverages - 0.1%
Canandaigua Brands, Inc. 8.625% 8/1/06	Ba2	490		518
Constellation Brands, Inc. 8.125% 1/15/12	Ba3	2,030		2,071
Cott Beverages, Inc. 8% 12/15/11 (g)	B2	2,070		2,096
				4,685
Food & Drug Retailing - 0.1%
Great Atlantic & Pacific Tea, Inc.:
7.75% 4/15/07	B2	1,390		1,385
9.125% 12/15/11	B2	990		1,035
Pathmark Stores, Inc. 8.75% 2/1/12 (g)	B2	970		1,004
				3,424
Food Products - 0.2%
Dean Foods Co.:
6.75% 6/15/05	B1	1,450		1,450
6.9% 10/15/17	B1	1,930		1,641
8.15% 8/1/07	B1	1,640		1,648
Del Monte Corp. 9.25% 5/15/11	B3	3,845		4,037
Smithfield Foods, Inc. 8% 10/15/09	Ba2	1,130		1,141
				9,917
Household Products - 0.0%
Fort James Corp. 6.875% 9/15/07	Baa3	460		430
Corporate Bonds - continued
Moody's Ratings (unaudited) (b)		Principal Amount (000s)		Value (Note 1) (000s)
Nonconvertible Bonds - continued
CONSUMER STAPLES - continued
Tobacco - 0.1%
Philip Morris Companies, Inc. 7% 7/15/05	A2	$ 2,000		$ 2,079
RJ Reynolds Tobacco Holdings, Inc. 7.375% 5/15/03	Baa2	1,115		1,138
				3,217
TOTAL CONSUMER STAPLES				21,673
ENERGY - 0.8%
Energy Equipment & Services - 0.2%
DI Industries, Inc. 8.875% 7/1/07	B1	2,715		2,769
Grant Prideco, Inc. 9.625% 12/1/07	Ba3	1,230		1,279
Key Energy Services, Inc.:
Series B, 8.375% 3/1/08	Ba3	1,860		1,907
8.375% 3/1/08	Ba3	890		912
14% 1/15/09	B2	682		781
Parker Drilling Co. 9.75% 11/15/06	B1	2,240		2,296
				9,944
Oil & Gas - 0.6%
Alberta Energy Co. Ltd. yankee 7.375% 11/1/31	Baa1	440		443
Chesapeake Energy Corp.:
7.875% 3/15/04	B1	2,860		2,889
8.125% 4/1/11	B1	420		421
Cross Timbers Oil Co.:
8.75% 11/1/09	Ba3	605		635
9.25% 4/1/07	Ba3	2,910		3,056
Devon Energy Corp. 7.95% 4/15/32	Baa2	600		601
Forest Oil Corp.:
8% 6/15/08	Ba3	1,505		1,546
8% 12/15/11 (g)	Ba3	480		490
Magnum Hunter Resources, Inc. 9.6% 3/15/12 (g)	B2	560		585
Nuevo Energy Co. 9.5% 6/1/08	B2	1,120		1,109
Oryx Energy Co.:
8% 10/15/03	Baa2	895		934
8.125% 10/15/05	Baa2	1,305		1,389
Corporate Bonds - continued
Moody's Ratings (unaudited) (b)		Principal Amount (000s)		Value (Note 1) (000s)
Nonconvertible Bonds - continued
ENERGY - continued
Oil & Gas - continued
Pennzoil-Quaker State Co.:
6.75% 4/1/09	Ba2	$ 620		$ 636
9.4% 12/1/02 (f)	Ba2	150		153
10% 11/1/08 (g)	Ba3	2,670		3,097
Petro-Canada yankee 7% 11/15/28	Baa2	520		476
Phillips Petroleum Co. 8.75% 5/25/10	A3	545		621
Plains Resources, Inc.:
Series B, 10.25% 3/15/06	B2	685		710
Series F, 10.25% 3/15/06	B2	470		486
Pogo Producing Co. 8.25% 4/15/11	B1	2,730		2,853
The Coastal Corp. 9.625% 5/15/12	Baa2	535		604
Triton Energy Ltd. yankee 8.875% 10/1/07	BBB	560		612
Triton Energy Ltd./Triton Energy Corp. 9.25% 4/15/05	Baa2	390		426
				24,772
TOTAL ENERGY				34,716
FINANCIALS - 2.4%
Banks - 0.5%
Bank of America Corp.:
7.4% 1/15/11	Aa3	650		687
7.8% 2/15/10	Aa3	980		1,057
Bank One Corp. 7.875% 8/1/10	A1	455		496
Capital One Bank:
6.65% 3/15/04	Baa3	1,550		1,530
6.7% 5/15/08	Baa2	390		410
Chevy Chase Savings Bank FSB 9.25% 12/1/08	Ba3	1,020		1,020
Den Danske Bank AS 6.375% 6/15/08 (g)(i)	Aa3	1,590		1,604
FleetBoston Financial Corp. 7.25% 9/15/05	A1	650		688
Korea Development Bank:
6.625% 11/21/03	Baa2	875		895
7.125% 4/22/04	Baa2	430		446
7.375% 9/17/04	Baa2	130		136
MBNA Corp. 6.25% 1/17/07	Baa2	315		307
Royal Bank of Scotland Group PLC:
7.648% 12/31/49 (i)	Aa3	500		514
7.816% 11/29/49	A1	950		1,003
Corporate Bonds - continued
Moody's Ratings (unaudited) (b)		Principal Amount (000s)		Value (Note 1) (000s)
Nonconvertible Bonds - continued
FINANCIALS - continued
Banks - continued
Sovereign Bancorp, Inc.:
8.625% 3/15/04	Ba2	$ 4,780		$ 4,935
10.5% 11/15/06	Ba2	2,480		2,716
				18,444
Diversified Financials - 1.4%
Ahmanson Capital Trust I 8.36% 12/1/26 (g)	A3	800		783
American Airlines pass thru trust certificate 7.8% 4/1/08 (g)	A	3,110		3,079
American Gen. Finance Corp. 5.875% 7/14/06	A1	1,010		1,014
Amvescap PLC yankee 6.375% 5/15/03	A2	650		666
Armkel Finance, Inc. 9.5% 8/15/09	B2	1,770		1,894
Associates Corp. of North America 5.8% 4/20/04	Aa1	300		309
BRL Universal Equipment 2001 A LP/BRL Universal Equipment Corp. 8.875% 2/15/08	Ba3	2,855		2,941
Capital One Financial Corp.:
7.125% 8/1/08	Baa3	1,150		1,043
7.25% 12/1/03	Baa3	380		376
7.25% 5/1/06	Baa3	1,410		1,325
8.75% 2/1/07	Baa3	390		386
CIT Group, Inc. 7.75% 4/2/12	A2	320		321
Continental Airlines, Inc.:
pass thru trust certificate:
6.795% 8/2/18	Baa3	881		815
6.9% 1/2/17	Baa3	476		439
6.9% 1/2/18	Baa1	615		589
6.954% 2/2/11	Ba2	61		58
7.033% 6/15/11	Ba2	718		668
7.256% 9/15/21	Baa1	504		488
8.307% 4/2/18	Baa3	2,721		2,630
8.312% 10/2/12	Ba2	163		154
Countrywide Home Loans, Inc. 5.5% 8/1/06	A3	780		767
Dana Credit Corp. 7.25% 12/6/02 (g)	Ba3	2,005		1,970
Delta Air Lines, Inc. pass thru trust certificate:
7.57% 11/18/10	A3	380		386
7.92% 5/18/12	A3	580		572
Devon Financing Corp. ULC 6.875% 9/30/11	Baa2	1,240		1,207
El Paso Energy Partners LP/El Paso Energy Partners Finance Corp. 8.5% 6/1/11	B1	2,215		2,281
Corporate Bonds - continued
Moody's Ratings (unaudited) (b)		Principal Amount (000s)		Value (Note 1) (000s)
Nonconvertible Bonds - continued
FINANCIALS - continued
Diversified Financials - continued
Entercom Radio LLC/Entercom Capital, Inc. 7.625% 3/1/14	Ba3	$ 460		$ 458
Ford Motor Credit Co.:
7.25% 10/25/11	A3	460		446
7.375% 10/28/09	A3	450		441
7.5% 3/15/05	A3	750		765
General Motors Acceptance Corp. 6.875% 9/15/11	A2	440		429
GS Escrow Corp. 7% 8/1/03	Ba1	2,675		2,702
Household Finance Corp. 8% 5/9/05	A2	585		616
HSBC Capital Funding LP 9.547% 12/31/49 (f)(g)	A1	545		628
IOS Capital, Inc. 9.75% 6/15/04	Baa2	2,850		2,879
Mediacom Broadband LLC/Mediacom Broadband Corp. 11% 7/15/13	B2	5,420		6,016
Meditrust Exercisable Put Options Securities Trust 7.114% 8/15/04 (g)	Ba3	200		196
Morgan Stanley Dean Witter & Co. 6.6% 4/1/12	Aa3	980		975
NiSource Finance Corp. 7.875% 11/15/10	Baa3	1,195		1,146
Northwest Airlines pass thru trust certificate:
7.041% 4/1/22	A3	330		317
7.575% 3/1/19	A3	595		595
7.691% 4/1/17	Baa2	120		115
Qwest Capital Funding, Inc.:
5.875% 8/3/04	Baa3	2,230		1,899
5.875% 8/3/04	Baa3	190		167
Sears Roebuck Acceptance Corp. 6.7% 4/15/12	A3	520		512
SESI LLC 8.875% 5/15/11	B1	1,630		1,630
Sprint Capital Corp.:
6.125% 11/15/08	Baa2	780		696
6.875% 11/15/28	Baa2	310		247
8.375% 3/15/12 (g)	Baa2	240		237
8.75% 3/15/32 (g)	Baa2	565		548
Stone Container Finance Co. yankee 11.5% 8/15/06 (g)	B2	875		949
TIAA Global Markets, Inc. 5% 3/1/07 (g)	Aaa	345		336
TXU Eastern Funding yankee 6.75% 5/15/09	Baa1	1,115		1,074
U.S. West Capital Funding, Inc. 6.25% 7/15/05	Baa3	2,390		2,064
Corporate Bonds - continued
Moody's Ratings (unaudited) (b)		Principal Amount (000s)		Value (Note 1) (000s)
Nonconvertible Bonds - continued
FINANCIALS - continued
Diversified Financials - continued
UBS Preferred Funding Trust 1 8.622% 12/29/49	Aa2	$ 900		$ 994
Xerox Capital (Europe) PLC 5.75% 5/15/02	Ba1	1,980		1,940
				59,178
Insurance - 0.0%
MetLife, Inc. 6.125% 12/1/11	A1	360		353
St. Paul Companies, Inc. 5.75% 3/15/07	A2	180		179
				532
Real Estate - 0.5%
CenterPoint Properties Trust:
6.75% 4/1/05	Baa2	530		534
7.125% 3/15/04	Baa2	1,030		1,056
Duke-Weeks Realty LP 6.875% 3/15/05	Baa2	1,000		1,022
EOP Operating LP:
6.375% 2/15/03	Baa1	100		102
6.75% 2/15/08	Baa1	570		570
7.75% 11/15/07	Baa1	1,050		1,109
ERP Operating LP 7.1% 6/23/04	Baa1	1,000		1,037
iStar Financial, Inc. 8.75% 8/15/08	Ba1	2,120		2,131
LNR Property Corp.:
9.375% 3/15/08	Ba3	2,170		2,192
10.5% 1/15/09	Ba3	210		221
Meditrust Corp.:
7% 8/15/07	Ba3	380		359
7.82% 9/10/26	Ba3	3,910		3,910
MeriStar Hospitality Corp. 9% 1/15/08	Ba3	1,970		2,009
Senior Housing Properties Trust 8.625% 1/15/12	Ba2	2,930		3,033
Toll Corp. 8.25% 12/1/11	Ba2	2,280		2,291
				21,576
TOTAL FINANCIALS				99,730
HEALTH CARE - 1.2%
Health Care Providers & Services - 1.1%
AdvancePCS 8.5% 4/1/08	B1	3,505		3,715
Alderwoods Group, Inc.:
11% 1/2/07	-	745		752
Corporate Bonds - continued
Moody's Ratings (unaudited) (b)		Principal Amount (000s)		Value (Note 1) (000s)
Nonconvertible Bonds - continued
HEALTH CARE - continued
Health Care Providers & Services - continued
Alderwoods Group, Inc.: - continued
12.25% 1/2/09	-	$ 440		$ 475
Beverly Enterprises, Inc.:
9% 2/15/06	B1	195		194
9.625% 4/15/09	B1	395		405
Columbia/HCA Healthcare Corp. 6.73% 7/15/45	Ba1	1,890		1,909
DaVita, Inc. 9.25% 4/15/11	B2	2,020		2,363
Dynacare, Inc. yankee 10.75% 1/15/06	B2	1,290		1,335
Express Scripts, Inc. 9.625% 6/15/09	Ba1	1,460		1,606
Hanger Orthopedic Group, Inc. 10.375% 2/15/09 (g)	B2	585		614
HCA, Inc.:
7.875% 2/1/11	Ba1	1,225		1,271
8.75% 9/1/10	Ba1	3,955		4,291
HealthSouth Corp. 6.875% 6/15/05	Ba1	700		697
Owen & Minor, Inc. 8.5% 7/15/11	Ba3	4,440		4,640
Rotech Healthcare, Inc. 9.5% 4/1/12 (g)	B2	690		712
Service Corp. International (SCI):
6% 12/15/05	B1	2,505		2,292
6.3% 3/15/03	B1	400		384
7.2% 6/1/06	B1	1,820		1,720
7.375% 4/15/04	B1	5,575		5,491
Triad Hospitals Holdings, Inc. 11% 5/15/09	B2	2,675		2,983
Triad Hospitals, Inc. 8.75% 5/1/09	B1	4,445		4,712
Unilab Corp. 12.75% 10/1/09	B3	1,454		1,679
Vanguard Health Systems, Inc. 9.75% 8/1/11	B3	3,790		3,998
				48,238
Pharmaceuticals - 0.1%
aaiPharma, Inc. 11% 4/1/10 (g)	Caa1	2,090		2,090
Biovail Corp. 7.875% 4/1/10	B2	1,405		1,396
				3,486
TOTAL HEALTH CARE				51,724
INDUSTRIALS - 1.9%
Aerospace & Defense - 0.1%
Alliant Techsystems, Inc. 8.5% 5/15/11	B2	1,485		1,574
Corporate Bonds - continued
Moody's Ratings (unaudited) (b)		Principal Amount (000s)		Value (Note 1) (000s)
Nonconvertible Bonds - continued
INDUSTRIALS - continued
Aerospace & Defense - continued
BE Aerospace, Inc.:
8% 3/1/08	B3	$ 530		$ 488
9.5% 11/1/08	B1	1,100		1,034
Sequa Corp. 8.875% 4/1/08	Ba3	1,725		1,656
				4,752
Airlines - 0.4%
AMR Corp. 9% 8/1/12	B1	400		388
Continental Airlines, Inc. 8% 12/15/05	B3	2,550		2,403
Delta Air Lines, Inc.:
6.65% 3/15/04	Ba3	1,640		1,591
7.7% 12/15/05	Ba3	1,590		1,534
7.9% 12/15/09	Ba3	3,430		3,259
8.3% 12/15/29	Ba3	2,930		2,491
8.54% 1/2/07	Ba1	427		419
10.14% 8/14/12	Ba1	280		266
Northwest Airlines, Inc.:
7.625% 3/15/05	B2	1,250		1,175
8.375% 3/15/04	B2	1,010		970
8.52% 4/7/04	B2	140		135
8.875% 6/1/06	B2	190		181
9.875% 3/15/07	B2	2,010		1,975
United Air Lines, Inc.:
9% 12/15/03	Caa1	590		493
10.67% 5/1/04	Caa1	90		69
				17,349
Building Products - 0.1%
American Standard, Inc.:
7.375% 2/1/08	Ba2	930		939
7.625% 2/15/10	Ba2	680		687
				1,626
Commercial Services & Supplies - 0.6%
Allied Waste North America, Inc.:
7.375% 1/1/04	Ba3	1,390		1,390
7.625% 1/1/06	Ba3	1,435		1,406
7.875% 1/1/09	Ba3	1,925		1,877
8.5% 12/1/08 (g)	Ba3	4,130		4,130
10% 8/1/09	B2	2,485		2,535
Corporate Bonds - continued
Moody's Ratings (unaudited) (b)		Principal Amount (000s)		Value (Note 1) (000s)
Nonconvertible Bonds - continued
INDUSTRIALS - continued
Commercial Services & Supplies - continued
Browning-Ferris Industries, Inc. 6.375% 1/15/08	Ba3	$ 2,080		$ 1,893
Coinmach Corp. 9% 2/1/10 (g)	B2	2,440		2,525
Iron Mountain, Inc.:
8.625% 4/1/13	B2	2,910		3,012
8.75% 9/30/09	B2	3,000		3,105
Mail-Well I Corp. 9.625% 3/15/12 (g)	B1	1,380		1,421
Waste Management, Inc. 7.375% 8/1/10	Ba1	3,040		3,014
				26,308
Machinery - 0.4%
AGCO Corp.:
8.5% 3/15/06	B1	260		261
9.5% 5/1/08	Ba3	1,530		1,652
Dresser, Inc. 9.375% 4/15/11 (g)	B2	3,025		3,116
Dunlop Standard Aerospace Holdings PLC yankee 11.875% 5/15/09	B3	5,015		5,115
Joy Global, Inc. 8.75% 3/15/12 (g)	B2	460		474
Navistar International Corp. 9.375% 6/1/06	Ba1	1,280		1,350
Terex Corp.:
8.875% 4/1/08	B2	1,600		1,632
Series D, 8.875% 4/1/08	B2	650		660
Tyco International Group SA yankee 6.75% 2/15/11	Baa1	1,295		1,157
				15,417
Marine - 0.1%
Teekay Shipping Corp. 8.875% 7/15/11	Ba2	4,100		4,305
Road & Rail - 0.2%
CSX Corp.:
6.25% 10/15/08	Baa2	585		577
6.46% 6/22/05	Baa2	990		1,017
Kansas City Southern Railway Co. 9.5% 10/1/08	Ba2	570		616
TFM SA de CV yankee:
0% 6/15/09 (e)	B1	2,805		2,616
Corporate Bonds - continued
Moody's Ratings (unaudited) (b)		Principal Amount (000s)		Value (Note 1) (000s)
Nonconvertible Bonds - continued
INDUSTRIALS - continued
Road & Rail - continued
TFM SA de CV yankee: - continued
10.25% 6/15/07	B1	$ 565		$ 531
Williams Scotsman, Inc. 9.875% 6/1/07 (g)	B3	2,460		2,482
				7,839
TOTAL INDUSTRIALS				77,596
INFORMATION TECHNOLOGY - 1.0%
Communications Equipment - 0.3%
Avaya, Inc. 11.125% 4/1/09	Ba2	1,960		1,921
Crown Castle International Corp.:
9.375% 8/1/11	B3	4,200		3,528
9.5% 8/1/11	B3	600		504
10.75% 8/1/11	B3	810		721
L-3 Communications Corp.:
8% 8/1/08	Ba3	1,710		1,761
10.375% 5/1/07	Ba3	1,705		1,807
Motorola, Inc. 8% 11/1/11	A3	740		747
				10,989
Computers & Peripherals - 0.0%
Compaq Computer Corp.:
7.45% 8/1/02	Baa2	610		616
7.65% 8/1/05	Baa2	490		504
				1,120
Electronic Equipment & Instruments - 0.3%
Fisher Scientific International, Inc. 9% 2/1/08	B3	3,760		3,901
Flextronics International Ltd. yankee:
8.75% 10/15/07	Ba2	830		847
9.875% 7/1/10	Ba2	3,050		3,264
Ingram Micro, Inc. 9.875% 8/15/08	Ba2	1,430		1,509
Millipore Corp. 7.5% 4/1/07	Ba1	1,030		958
Solectron Corp. 9.625% 2/15/09	Ba1	1,480		1,469
				11,948
Internet Software & Services - 0.0%
Qwest Corp. 8.875% 3/15/12 (g)	Baa2	595		587
IT Consulting & Services - 0.2%
Anteon Corp. 12% 5/15/09	B3	3,130		3,474
Corporate Bonds - continued
Moody's Ratings (unaudited) (b)		Principal Amount (000s)		Value (Note 1) (000s)
Nonconvertible Bonds - continued
INFORMATION TECHNOLOGY - continued
IT Consulting & Services - continued
Unisys Corp.:
7.875% 4/1/08	Ba1	$ 1,060		$ 1,063
8.125% 6/1/06	Ba1	2,840		2,897
				7,434
Office Electronics - 0.0%
Mediacom LLC/Mediacom Capital Corp. 9.5% 1/15/13	B2	1,145		1,185
Semiconductor Equipment & Products - 0.2%
Amkor Technology, Inc.:
9.25% 5/1/06	B1	2,970		2,948
9.25% 2/15/08	B1	1,175		1,157
Fairchild Semiconductor Corp.:
10.375% 10/1/07	B2	2,955		3,154
10.5% 2/1/09	B2	440		484
Micron Technology, Inc. 6.5% 9/30/05 (l)	B3	3,000		2,760
				10,503
TOTAL INFORMATION TECHNOLOGY				43,766
MATERIALS - 1.7%
Chemicals - 0.5%
Foamex LP/Foamex Capital Corp. 10.75% 4/1/09 (g)	B3	1,165		1,188
Georgia Gulf Corp. 10.375% 11/1/07	B2	2,325		2,465
Huntsman International LLC 9.875% 3/1/09 (g)	B3	1,710		1,736
IMC Global, Inc.:
10.875% 6/1/08	Ba1	400		442
11.25% 6/1/11	Ba1	440		486
International Specialty Holdings, Inc. 10.625% 12/15/09 (g)	B2	2,090		2,158
Lyondell Chemical Co.:
9.625% 5/1/07	Ba3	1,370		1,394
9.875% 5/1/07	Ba3	2,415		2,463
Methanex Corp. yankee:
7.4% 8/15/02	Ba1	1,155		1,155
7.75% 8/15/05	Ba1	1,835		1,798
Corporate Bonds - continued
Moody's Ratings (unaudited) (b)		Principal Amount (000s)		Value (Note 1) (000s)
Nonconvertible Bonds - continued
MATERIALS - continued
Chemicals - continued
OM Group, Inc. 9.25% 12/15/11 (g)	B3	$ 3,160		$ 3,310
Quaker State Corp. 6.625% 10/15/05	Ba2	1,250		1,284
				19,879
Containers & Packaging - 0.5%
Applied Extrusion Technologies, Inc. 10.75% 7/1/11	B2	1,790		1,897
Graphic Packaging Corp. 8.625% 2/15/12 (g)	B2	450		466
Owens-Brockway Glass Container, Inc. 8.875% 2/15/09 (g)	B2	4,830		4,915
Owens-Illinois, Inc.:
7.15% 5/15/05	B3	540		521
7.35% 5/15/08	B3	390		358
7.5% 5/15/10	B3	460		414
7.8% 5/15/18	B3	3,360		2,780
7.85% 5/15/04	B3	1,290		1,255
8.1% 5/15/07	B3	370		353
Riverwood International Corp.:
10.25% 4/1/06	B-	2,705		2,800
10.625% 8/1/07	B3	780		825
10.875% 4/1/08	Caa1	2,500		2,594
Sealed Air Corp.:
6.95% 5/15/09 (g)	Baa3	2,020		1,879
8.75% 7/1/08 (g)	Baa3	670		690
				21,747
Metals & Mining - 0.5%
AK Steel Corp.:
7.875% 2/15/09	B1	2,420		2,420
9.125% 12/15/06	B1	205		212
Century Aluminum Co. 11.75% 4/15/08	Ba3	2,725		2,889
Luscar Coal Ltd. 9.75% 10/15/11 (g)	Ba3	730		785
P&L Coal Holdings Corp. 9.625% 5/15/08	B1	7,670		8,188
Phelps Dodge Corp.:
7.125% 11/1/27	Baa3	1,630		1,190
8.75% 6/1/11	Baa3	3,080		3,065
9.5% 6/1/31	Baa3	2,235		2,123
Steel Dynamics, Inc. 9.5% 3/15/09 (g)	B2	870		896
				21,768
Corporate Bonds - continued
Moody's Ratings (unaudited) (b)		Principal Amount (000s)		Value (Note 1) (000s)
Nonconvertible Bonds - continued
MATERIALS - continued
Paper & Forest Products - 0.2%
Georgia-Pacific Group:
7.5% 5/15/06	Baa3	$ 180		$ 176
8.125% 5/15/11	Baa3	330		323
8.875% 5/15/31	Baa3	610		567
Louisiana-Pacific Corp.:
8.5% 8/15/05	Ba1	690		711
10.875% 11/15/08	Ba2	470		503
Norske Skog Canada Ltd. 8.625% 6/15/11 (g)	Ba2	200		204
Stone Container Corp. 9.75% 2/1/11	B2	3,145		3,397
Weyerhaeuser Co.:
6.125% 3/15/07 (g)	Baa2	350		347
7.375% 3/15/32 (g)	Baa2	1,350		1,283
				7,511
TOTAL MATERIALS				70,905
TELECOMMUNICATION SERVICES - 1.4%
Diversified Telecommunication Services - 0.8%
AT&T Corp.:
6.5% 3/15/29	A3	1,905		1,574
7.3% 11/15/11 (g)	A3	375		362
8% 11/15/31 (g)	A3	270		265
British Telecommunications PLC 8.875% 12/15/30	Baa1	405		460
Cable & Wireless Optus Finance Property Ltd. 8% 6/22/10 (g)	A2	830		887
Centennial Cellular Operating Co. LLC/Centennial Finance Corp. 10.75% 12/15/08	B3	3,605		1,947
Cincinnati Bell Telephone Co. 6.3% 12/1/28	Ba1	5,650		3,814
Citizens Communications Co.:
8.5% 5/15/06	Baa2	700		729
9.25% 5/15/11	Baa2	435		466
Insight Midwest LP/Insight Capital, Inc. 10.5% 11/1/10	B1	2,460		2,645
Koninklijke KPN NV yankee:
7.5% 10/1/05	Baa3	530		538
8% 10/1/10	Baa3	1,100		1,118
Corporate Bonds - continued
Moody's Ratings (unaudited) (b)		Principal Amount (000s)		Value (Note 1) (000s)
Nonconvertible Bonds - continued
TELECOMMUNICATION SERVICES - continued
Diversified Telecommunication Services - continued
Price Communications Wireless, Inc.:
9.125% 12/15/06	Baa2	$ 3,750		$ 3,900
11.75% 7/15/07	Baa3	1,450		1,548
Telecomunicaciones de Puerto Rico, Inc.:
6.15% 5/15/02	Baa1	1,400		1,404
6.65% 5/15/06	Baa1	1,385		1,372
Telefonos de Mexico SA de CV 8.25% 1/26/06	Baa1	1,310		1,377
Teleglobe Canada, Inc. yankee:
7.2% 7/20/09	Baa3	440		198
7.7% 7/20/29	Baa3	85		36
TELUS Corp. yankee 8% 6/1/11	Baa2	1,165		1,195
Tritel PCS, Inc. 10.375% 1/15/11	B3	865		969
Triton PCS, Inc.:
8.75% 11/15/11	B2	1,440		1,354
9.375% 2/1/11	B3	2,405		2,333
Verizon New York, Inc. 7.375% 4/1/32	A1	235		232
				30,723
Wireless Telecommunication Services - 0.6%
American Tower Corp. 9.375% 2/1/09	B3	1,320		977
AT&T Wireless Services, Inc. 8.75% 3/1/31	Baa2	505		519
Echostar Broadband Corp. 10.375% 10/1/07	B1	6,920		7,422
Nextel Communications, Inc. 0% 10/31/07 (e)	B1	6,400		4,000
PanAmSat Corp.:
6% 1/15/03	Ba2	290		289
6.125% 1/15/05	Ba2	1,090		1,068
6.375% 1/15/08	Ba2	1,140		1,106
8.5% 2/1/12 (g)	Ba3	1,300		1,294
Rogers Wireless, Inc. 9.625% 5/1/11	Baa3	1,590		1,479
VoiceStream Wireless Corp.:
0% 11/15/09 (e)	Baa1	2,334		1,961
10.375% 11/15/09	Baa1	5,729		6,245
				26,360
TOTAL TELECOMMUNICATION SERVICES				57,083
Corporate Bonds - continued
Moody's Ratings (unaudited) (b)		Principal Amount (000s)		Value (Note 1) (000s)
Nonconvertible Bonds - continued
UTILITIES - 1.0%
Electric Utilities - 0.9%
Avon Energy Partners Holdings 6.46% 3/4/08 (g)	Baa2	$ 1,320		$ 1,247
CMS Energy Corp.:
6.75% 1/15/04	Ba3	1,030		1,030
7.5% 1/15/09	Ba3	2,055		2,024
8.5% 4/15/11	Ba3	2,600		2,704
8.9% 7/15/08	Ba3	3,310		3,442
9.875% 10/15/07	Ba3	3,925		4,259
Constellation Energy Group, Inc. 6.35% 4/1/07	Baa1	405		403
FirstEnergy Corp. 6.45% 11/15/11	Baa2	410		380
Illinois Power Co. 7.5% 6/15/09	Baa2	550		556
Israel Electric Corp. Ltd.:
7.75% 12/15/27 (g)	A3	570		501
7.875% 12/15/26 (g)	A3	145		129
Orion Power Holdings, Inc. 12% 5/1/10	Ba3	7,065		8,231
Pacific Gas & Electric Co.:
6.25% 8/1/03	B3	1,535		1,520
6.25% 3/1/04	B3	2,985		2,955
6.75% 10/1/23	B3	1,190		1,119
7.375% 11/1/05 (d)(g)	Caa2	3,280		3,592
8.25% 11/1/22	B3	2,340		2,258
PSI Energy, Inc. 6.65% 6/15/06	A3	630		626
Southern California Edison Co.:
5.625% 10/1/02	Ba2	670		663
6.25% 6/15/03	Ba2	165		162
8.95% 11/3/03	Ba3	1,200		1,224
Texas Utilities Co. 6.375% 1/1/08	Baa3	130		127
				39,152
Gas Utilities - 0.1%
Consolidated Natural Gas Co. 6.85% 4/15/11	A3	255		253
Kinder Morgan Energy Partners LP 7.125% 3/15/12	Baa1	260		255
Reliant Energy Resources Corp. 8.125% 7/15/05	Baa2	600		617
Sempra Energy 7.95% 3/1/10	A2	1,755		1,792
				2,917
Corporate Bonds - continued
Moody's Ratings (unaudited) (b)		Principal Amount (000s)		Value (Note 1) (000s)
Nonconvertible Bonds - continued
UTILITIES - continued
Multi-Utilities - 0.0%
Williams Companies, Inc.:
7.125% 9/1/11	Baa2	$ 360		$ 342
7.5% 1/15/31	Baa2	875		788
				1,130
TOTAL UTILITIES				43,199
TOTAL NONCONVERTIBLE BONDS				804,276
TOTAL CORPORATE BONDS (Cost $917,029)			914,008
U.S. Government and Government Agency Obligations - 5.0%

U.S. Government Agency Obligations - 0.2%
Fannie Mae:
5.25% 6/15/06	Aaa	975		980
5.5% 2/15/06	Aaa	940		957
5.5% 5/2/06	Aa2	1,375		1,384
6.25% 2/1/11	Aa2	810		808
6.75% 7/30/07	Aaa	2,000		2,029
7.25% 5/15/30	Aaa	1,055		1,149
Freddie Mac 5.875% 3/21/11	Aa2	1,650		1,602
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS				8,909
U.S. Treasury Obligations - 4.8%
U.S. Treasury Bonds:
5.25% 2/15/29	Aaa	1,457		1,312
6.375% 8/15/27	Aaa	6,156		6,426
8.125% 8/15/19	Aaa	320		392
8.875% 8/15/17	Aaa	520		671
9.875% 11/15/15	Aaa	185		254
10.75% 8/15/05	Aaa	390		466
11.25% 2/15/15	Aaa	420		625
11.75% 2/15/10 (callable)	Aaa	1,000		1,197
12% 8/15/13	Aaa	815		1,106
U.S. Government and Government Agency Obligations - continued
Moody's Ratings (unaudited) (b)		Principal Amount (000s)		Value (Note 1) (000s)
U.S. Treasury Obligations - continued
U.S. Treasury Notes:
3.5% 11/15/06	Aaa	$ 990		$ 936
3.625% 8/31/03	Aaa	3,900		3,923
5% 8/15/11	Aaa	174,000		168,189
6.5% 2/15/10	Aaa	635		680
7% 7/15/06	Aaa	9,650		10,465
7.875% 11/15/04	Aaa	2,800		3,059
TOTAL U.S. TREASURY OBLIGATIONS				199,701
TOTAL U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS (Cost $215,099)			208,610
U.S. Government Agency - Mortgage Securities - 1.9%

Fannie Mae - 1.3%
6% 1/1/09 to 1/1/32	Aaa	17,220		17,004
6.5% 5/1/23 to 8/1/31	Aaa	22,029		22,042
6.5% 4/1/32 (h)	Aaa	3,670		3,646
7% 12/1/24 to 12/1/28	Aaa	6,082		6,222
7.5% 5/1/27 to 8/1/31	Aaa	6,903		7,160
8% 6/1/10 to 1/1/26	Aaa	437		463
TOTAL FANNIE MAE				56,537
Freddie Mac - 0.1%
7.5% 4/1/22 to 11/1/30	Aaa	2,314		2,404
8% 7/1/25 to 4/1/27	Aaa	374		396
TOTAL FREDDIE MAC				2,800
Government National Mortgage Association - 0.5%
6% 6/15/08 to 9/15/10	Aaa	677		694
6.5% 9/15/08 to 2/15/32	Aaa	12,025		12,137
7% 1/15/28 to 7/15/31	Aaa	6,146		6,278
7.5% 10/15/22 to 8/15/28	Aaa	1,460		1,535
U.S. Government Agency - Mortgage Securities - continued
Moody's Ratings (unaudited) (b)		Principal Amount (000s)		Value (Note 1) (000s)
Government National Mortgage Association - continued
8% 5/15/25 to 3/15/30	Aaa	$ 564		$ 595
8.5% 10/15/29 to 2/15/30	Aaa	927		990
TOTAL GOVERNMENT NATIONAL MORTGAGE ASSOCIATION				22,229
TOTAL U.S. GOVERNMENT AGENCY - MORTGAGE SECURITIES (Cost $79,783)			81,566
Asset-Backed Securities - 0.2%

BankAmerica Manufacturing Housing Contract Trust V 6.2% 4/10/09	Aaa	1,223		1,226
CIT Marine Trust 5.8% 4/15/10	Aaa	710		722
CSXT Trade Receivables Master Trust 6% 7/26/04	Aaa	1,780		1,819
DaimlerChrysler Auto Trust 5.16% 1/6/05	Aaa	1,265		1,291
Ford Credit Auto Owner Trust:
5.71% 9/15/05	A1	335		342
7.03% 11/15/03	Aaa	241		243
Household Private Label Credit Card Master Trust I 5.5% 1/18/11	Aaa	100		100
Northwest Airlines pass thru trust certificate 9.179% 10/1/11	Ba2	490		461
Sears Credit Account Master Trust II 7.5% 11/15/07	A2	650		684
UAF Auto Grantor Trust 6.1% 1/15/03 (g)	Aaa	213		213
TOTAL ASSET-BACKED SECURITIES (Cost $6,924)			7,101
Collateralized Mortgage Obligations - 0.1%

Private Sponsor - 0.0%
Credit-Based Asset Servicing and Securitization LLC weighted average coupon Series 1997-2 Class 2B, 7.0377% 12/29/25 (g)(i)	Ba3	594		284
Collateralized Mortgage Obligations - continued
Moody's Ratings (unaudited) (b)		Principal Amount (000s)		Value (Note 1) (000s)
U.S. Government Agency - 0.1%
Fannie Mae:
REMIC planned amortization class:
Series 1999-54 Class PH, 6.5% 11/18/29	Aaa	$ 800		$ 783
Series 1999-57 Class PH, 6.5% 12/25/29	Aaa	700		672
sequential pay Series 2000-49 Class A, 8% 3/18/27	Aaa	1,261		1,340
TOTAL U.S. GOVERNMENT AGENCY				2,795
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $3,016)			3,079
Commercial Mortgage Securities - 0.6%

Asset Securitization Corp. sequential pay Series 1995-MD4 Class A1, 7.1% 8/13/29	AAA	548		573
Banc America Commercial Mortgage, Inc. Series 2001-1 Class X, 1.0909% 4/15/36 (i)(j)	Aaa	13,892		852
Berkeley Federal Bank & Trust FSB Series 1994-1 Class B, 5.7659% 8/1/24 (g)(i)	-	1,900		1,292
CBM Funding Corp. sequential pay Series 1996-1:
Class A3PI, 7.08% 11/1/07	AA	990		1,028
Class B, 7.48% 2/1/08	A	770		796
Chase Manhatten Bank-First Union National Bank Commercial Mortgage Trust sequential pay Series 1999-1 Class A2, 7.439% 8/15/31	Aaa	315		335
COMM Series 1999-1 Class A2, 6.455% 9/15/08	Aaa	275		280
CS First Boston Mortgage Securities Corp.:
Series 1997-C2 Class D, 7.27% 1/17/35	Baa2	1,910		1,916
Series 1998-C1 Class D, 7.17% 1/17/12	Baa3	760		730
Deutsche Mortgage & Asset Receiving Corp. sequential pay Series 1998-C1 Class D, 7.231% 7/15/12	Baa2	1,420		1,331
Equitable Life Assurance Society of the United States Series 174:
Class B1, 7.33% 5/15/06 (g)	Aa2	1,200		1,254
Class C1, 7.52% 5/15/06 (g)	A2	1,000		1,045
Commercial Mortgage Securities - continued
Moody's Ratings (unaudited) (b)		Principal Amount (000s)		Value (Note 1) (000s)
First Chicago/Lennar Trust I Series 1997-CHL1 Class E, 8.0855% 4/29/39 (g)(i)	-	$ 1,800		$ 1,404
FMAC Loan Receivables Trust weighted average coupon:
Series 1997-A Class E, 8.1253% 4/15/19 (g)(i)	-	500		35
Series 1997-B Class E, 0% 9/15/19 (d)(g)(i)	-	378		0
G Force CDO 2001 Ltd./G Force CDO 2001 1 Corp. Series 2001-1A Class E, 8.8% 1/20/12 (g)	BBB-	634		602
GAFCO Franchisee Loan Trust Series 1998-1 Class D, 13.5% 6/1/16 (g)(i)	-	1,650		1,221
General Motors Acceptance Corp. Commercial Mortgage Securities, Inc. Series 1996-C1 Class F, 7.86% 11/15/06 (g)	Ba1	750		721
GS Mortgage Securities Corp. II Series 1998-GLII Class E, 6.97% 4/13/31 (i)	Baa3	1,750		1,652
LTC Commercial Mortgage pass thru trust certificate:
sequential pay Series 1998-1 Class A, 6.029% 5/30/30 (g)	AAA	956		963
Series 1996-1 Class E, 9.16% 4/15/28	BB-	500		376
Penn Mutual Life Insurance Co./Penn Insurance & Annuity Co. Series 1996-PML:
Class K, 7.9% 11/15/26 (g)	-	1,750		1,228
Class L, 7.9% 11/15/26 (g)	-	1,300		724
Structured Asset Securities Corp. Series 1996-CFL Class E, 7.75% 2/25/28	AAA	820		838
Thirteen Affiliates of General Growth Properties, Inc. Series 1:
Class D2, 6.992% 12/15/10 (g)	Baa2	1,410		1,398
Class E2, 7.224% 12/15/10 (g)	Baa3	840		828
TOTAL COMMERCIAL MORTGAGE SECURITIES (Cost $24,597)			23,422
Foreign Government and Government Agency Obligations (k) - 0.1%

Chilean Republic 7.125% 1/11/12	Baa1	430		441
Quebec Province 7.5% 9/15/29	A1	1,050		1,137
United Mexican States 7.5% 1/14/12	Baa2	740		738
TOTAL FOREIGN GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS (Cost $2,310)			2,316
Supranational Obligations - 0.0%
Moody's Ratings (unaudited) (b)		Principal Amount (000s)		Value (Note 1) (000s)
Corporacion Andina de Fomento 6.875% 3/15/12 (g) (Cost $257)	A2	$ 260		$ 258
Floating Rate Loans - 0.4%

CONSUMER DISCRETIONARY - 0.1%
Media - 0.1%
Century Cable Holdings LLC Tranche B term loan 4.99% 6/30/09 (i)	-	4,450		4,294
FINANCIALS - 0.2%
Diversified Financials - 0.2%
Charter Communication Operating LLC Tranche B term loan 4.52% 3/18/08 (i)	Ba3	2,350		2,268
Nextel Finance Co.:
Tranche B term loan 5.3125% 6/30/08 (i)	Ba3	3,850		3,234
Tranche C term loan 5.5625% 12/31/08 (i)	Ba3	3,850		3,234
				8,736
MATERIALS - 0.0%
Chemicals - 0.0%
Lyondell Chemical Co. sr. secured Tranche E term loan 6.2627% 5/17/06 (i)	Ba3	497		502
TELECOMMUNICATION SERVICES - 0.1%
Diversified Telecommunication Services - 0.0%
Broadwing, Inc. Tranche B term loan 4.2006% 12/30/06 (i)	Ba2	1,140		1,071
Wireless Telecommunication Services - 0.1%
PanAmSat Corp. Tranche B term loan 5.46% 12/31/08 (i)	Ba2	2,500		2,488
TOTAL TELECOMMUNICATION SERVICES				3,559
TOTAL FLOATING RATE LOANS (Cost $17,708)			17,091

Money Market Funds - 1.8%
	Shares		Value (Note 1) (000s)
Fidelity Cash Central Fund, 1.86% (c)	63,201,555		$ 63,202
Fidelity Money Market Central Fund, 2.05% (c)	8,056,119		8,056
Fidelity Securities Lending Cash Central Fund, 1.87% (c)	3,506,000		3,506
TOTAL MONEY MARKET FUNDS (Cost $74,764)		74,764
Cash Equivalents - 0.1%
	Maturity Amount (000s)
Investments in repurchase agreements:
(U.S. Government Obligations), in a joint trading account at 1.92%, dated 3/28/02 due 4/1/02	$ 6,182		6,181
(U.S. Treasury Obligations), in a joint trading account at 1.78%, dated 3/29/02 due 4/1/02	238		238
TOTAL CASH EQUIVALENTS (Cost $6,419)		6,419
TOTAL INVESTMENT PORTFOLIO - 101.1% (Cost $4,140,568)			4,232,299
NET OTHER ASSETS - (1.1)%			(45,128)
NET ASSETS - 100%		$ 4,187,171

Legend

(a) Non-income producing

(b) S&P credit ratings are used in the absence of a rating by Moody's Investors Service, Inc.

(c) The rate quoted is the annualized seven-day yield of the fund at period end. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request.

(d) Non-income producing - issuer filed for bankruptcy or is in default of interest payments.

(e) Debt obligation initially issued in zero coupon form which converts to coupon form at a specified rate and date. The rate shown is the rate at period end.

(f) Debt obligation initially issued at one coupon which converts to a higher coupon at a specified date. The rate shown is the rate at period end.

(h) Security or a portion of the security purchased on a delayed delivery or when-issued basis.

(i) The coupon rate shown on floating or adjustable rate securities represents the rate at period end.

(j) Security represents right to receive monthly interest payments on an underlying pool of mortgages. Principal shown is the par amount of the mortgage pool.

(k) For foreign government obligations not individually rated by S&P or Moody's, the ratings listed have been assigned by FMR, the fund's investment adviser, based principally on S&P and Moody's ratings of the sovereign credit of the issuing government.

(l) Restricted securities - Investment in securities not registered under the Securities Act of 1933.

Additional information on each holding is as follows:

Security	Acquisition Date	Acquisition Cost (000s)
Micron Technology, Inc. 6.5% 9/30/05	7/15/99 - 4/10/00	$ 2,418

Other Information

The composition of long-term debt holdings as a percentage of total value of investments in securities, is as follows (ratings are unaudited):

Moody's Ratings		S&P Ratings
Aaa, Aa, A	7.9%	AAA, AA, A	8.0%
Baa	2.9%	BBB	3.6%
Ba	7.6%	BB	6.6%
B	9.3%	B	9.5%
Caa	0.7%	CCC	0.7%
Ca, C	0.1%	CC, C	0.0%
		D	0.2%

The percentage not rated by Moody's or S&P amounted to 0.6%. FMR has determined that unrated debt securities that are lower quality account for 0.6% of the total value of investment in securities.

Purchases and sales of securities, other than short-term securities, aggregated $2,255,970,000 and $2,057,413,000, respectively, of which long-term U.S. government and government agency obligations aggregated $257,484,000 and $89,594,000, respectively.

The fund invested in securities that are not registered under the Securities Act of 1933. At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $2,760,000 or 0.1% of net assets.

The fund participated in the interfund lending program as a borrower. The average daily loan balance during the period for which loans were outstanding amounted to $7,119,000. The weighted average interest rate was 2.19%. Interest expense includes $1,000 paid under the interfund lending program. At period end there were no interfund loans outstanding.

The fund participated in the bank borrowing program. The average daily loan balance during the period for which the loan was outstanding amounted to $4,688,000. The weighted average interest rate was 2.13%. Interest expense includes $1,000 paid under the bank borrowing program. At period end there were no bank borrowings outstanding.

The fund invested in loans and loan participations, trade claims or other receivables. At period end the value of these investments amounted to $17,091,000 or 0.4% of net assets.

Income Tax Information

At March 31, 2002, the aggregate cost of investment securities for income tax purposes was $4,152,925,000. Net unrealized appreciation aggregated $79,374,000, of which $308,366,000 related to appreciated investment securities and $228,992,000 related to depreciated investment securities.

At September 30, 2001, the fund had a capital loss carryforward of approximately $74,519,000 all of which will expire on September 30, 2009.

The fund intends to elect to defer to its fiscal year ending September 30, 2002 approximately $332,030,000 of losses recognized during the period November 1, 2000 to September 30, 2001.

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Financial Statements

Statement of Assets and Liabilities

Amounts in thousands (except per-share amount)	March 31, 2002 (Unaudited)
Assets
Investment in securities, at value (including securities loaned of $3,734 and repurchase agreements of $6,419) (cost $4,140,568) - See accompanying schedule		$ 4,232,299
Cash		12
Receivable for investments sold Regular delivery	$ 40,519
Delayed delivery	1,192
Receivable for fund shares sold		3,922
Dividends receivable		3,845
Interest receivable		23,367
Other receivables		19
Total assets		4,305,175
Liabilities
Payable for investments purchased Regular delivery	95,628
Delayed delivery	3,667
Payable for fund shares redeemed	12,419
Accrued management fee	2,035
Other payables and accrued expenses	749
Collateral on securities loaned, at value	3,506
Total liabilities		118,004
Net Assets		$ 4,187,171
Net Assets consist of:
Paid in capital		$ 4,581,153
Undistributed net investment income		35,286
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions		(521,002)
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies		91,734
Net Assets, for 289,565 shares outstanding		$ 4,187,171
Net Asset Value, offering price and redemption price per share ($4,187,171 ÷ 289,565 shares)		$ 14.46

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Financial Statements - continued

Statement of Operations

Amounts in thousands	Six months ended March 31, 2002 (Unaudited)
Investment Income
Dividends		$ 21,321
Interest		50,227
Security lending		28
Total income		71,576
Expenses
Management fee	$ 12,035
Transfer agent fees	4,571
Accounting and security lending fees	319
Non-interested trustees' compensation	8
Custodian fees and expenses	55
Registration fees	25
Audit	32
Legal	16
Interest	2
Miscellaneous	130
Total expenses before reductions	17,193
Expense reductions	(509)	16,684
Net investment income (loss)		54,892
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities	(93,640)
Foreign currency transactions	(2)
Futures contracts	7,965
Total net realized gain (loss)		(85,677)
Change in net unrealized appreciation (depreciation) on: Investment securities	437,183
Assets and liabilities in foreign currencies	1
Futures contracts	(646)
Delayed delivery commitments	(17)
Total change in net unrealized appreciation (depreciation)		436,521
Net gain (loss)		350,844
Net increase (decrease) in net assets resulting from operations		$ 405,736

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Statement of Changes in Net Assets

Amounts in thousands	Six months ended March 31, 2002 (Unaudited)	Year ended September 30, 2001
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 54,892	$ 120,989
Net realized gain (loss)	(85,677)	(421,909)
Change in net unrealized appreciation (depreciation)	436,521	(770,440)
Net increase (decrease) in net assets resulting from operations	405,736	(1,071,360)
Distributions to shareholders from net investment income	(120,566)	(118,203)
Distributions to shareholders from net realized gain	-	(657,869)
Total distributions	(120,566)	(776,072)
Share transactions Net proceeds from sales of shares	256,555	546,826
Reinvestment of distributions	118,338	761,688
Cost of shares redeemed	(388,738)	(801,481)
Net increase (decrease) in net assets resulting from share transactions	(13,845)	507,033
Total increase (decrease) in net assets	271,325	(1,340,399)
Net Assets
Beginning of period	3,915,846	5,256,245
End of period (including undistributed net investment income of $35,286 and undistributed net investment income of $100,960, respectively)	$ 4,187,171	$ 3,915,846
Other Information Shares
Sold	17,946	34,311
Issued in reinvestment of distributions	8,287	48,546
Redeemed	(27,202)	(50,892)
Net increase (decrease)	(969)	31,965

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Financial Highlights

	Six months ended March 31, 2002	Years ended September 30,
	(Unaudited)	2001	2000	1999	1998	1997
Selected Per-Share Data
Net asset value, beginning of period	$ 13.48	$ 20.33	$ 19.05	$ 18.80	$ 19.97	$ 16.56
Income from Investment Operations
Net investment income (loss)^D	.19^F	.42	.48	.46	.49	.42
Net realized and unrealized gain (loss)	1.21^F	(4.25)	2.35	2.82	.49	4.49
Total from investment operations	1.40	(3.83)	2.83	3.28	.98	4.91
Distributions from net investment income	(.42)	(.46)	(.45)	(.35)	(.40)	(.43)
Distributions from net realized gain	-	(2.56)	(1.10)	(2.68)	(1.75)	(1.07)
Total distributions	(.42)	(3.02)	(1.55)	(3.03)	(2.15)	(1.50)
Net asset value, end of period	$ 14.46	$ 13.48	$ 20.33	$ 19.05	$ 18.80	$ 19.97
Total Return^{B, C}	10.43%	(20.93)%	15.50%	18.37%	5.33%	31.57%
Ratios to Average Net Assets^E
Expenses before expense reductions	.83%^A	.81%	.80%	.83%	.84%	.87%
Expenses net of voluntary waivers, if any	.83%^A	.81%	.80%	.83%	.84%	.87%
Expenses net of all reductions	.81%^A	.78%	.77%	.80%	.80%	.86%
Net investment income (loss)	2.65%^{A, F}	2.62%	2.46%	2.38%	2.49%	2.36%
Supplemental Data
Net assets, end of period (in millions)	$ 4,187	$ 3,916	$ 5,256	$ 5,051	$ 4,537	$ 4,457
Portfolio turnover rate	99%^A	143%	197%	101%	150%	70%

^A Annualized

^B Total returns for periods of less than one year are not annualized.

^C Total returns would have been lower had certain expenses not been reduced during the periods shown.

^D Calculated based on average shares outstanding during the period.

^E Expense ratios reflect operating expenses of the fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the fund during periods when reimbursements or reductions occur. Expenses net of voluntary waivers reflects expenses after reimbursements by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the fund.

^F Effective October 1, 2001, the Fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premium and discount on all debt securities, as required. The effect of this change during the period was to increase net investment income per share by $.01 and decrease net realized and unrealized gain (loss) per share by $.01. Without this change the ratio of net investment income to average net assets would have been 2.45%. Per share data, ratios and supplemental data for prior periods have not been restated to reflect this change.

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Notes to Financial Statements

For the period ended March 31, 2002 (Unaudited)

1. Significant Accounting Policies.

Fidelity Asset Manager: Growth (the fund) is a fund of Fidelity Charles Street Trust (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the fund:

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

1. Significant Accounting Policies - continued

Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among the funds in the trust.

Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), non-interested Trustees must defer receipt of a portion of, and may elect to defer receipt of an additional portion of, their annual compensation. Deferred amounts are treated as though equivalent dollar amounts had been invested in shares of the fund or are invested in a cross-section of other Fidelity funds. Deferred amounts remain in the fund until distributed in accordance with the Plan.

Distributions to Shareholders. Distributions are recorded on the ex-dividend date.

Income and capital gain distributions are determined in accordance with income tax regulations which may differ from generally accepted accounting principles. These differences are primarily due to differing treatments for litigation proceeds, futures transactions, foreign currency transactions, passive foreign investment companies (PFIC), market discount, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.

Semiannual Report

1. Significant Accounting Policies - continued

Security Transactions. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost.

Change in Accounting Principle. Effective October 1, 2001, the fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premium and discount on all debt securities, as required. The cumulative effect of this accounting change had no impact on total net assets of the fund, but resulted in a $4,871,000 increase to the cost of securities held and a corresponding increase to accumulated net undistributed realized gain (loss), based on securities held by the fund on October 1, 2001.

The effect of this change during the period, was to increase net investment income by $4,192,000; decrease net unrealized appreciation/depreciation by $3,132,000; and decrease net realized gain (loss) by $1,060,000. The Statement of Changes in Net Assets and Financial Highlights for prior periods have not been restated to reflect this change in presentation.

2. Operating Policies.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

2. Operating Policies - continued

Delayed Delivery Transactions and When-Issued Securities - continued

when-issued security. With respect to purchase commitments, the fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract, or if the issuer does not issue the securities due to political, economic, or other factors.

Loans and Other Direct Debt Instruments. The fund may invest in loans and loan participations, trade claims or other receivables. These investments may include standby financing commitments that obligate the fund to supply additional cash to the borrower on demand. Loan participations involve a risk of insolvency of the lending bank or other financial intermediary. Information regarding loans and other direct debt instruments is included under the caption "Other Information" at the end of the fund's Schedule of Investments.

3. Purchases and Sales of Investments.

Information regarding purchases and sales of securities is included under the caption "Other Information" at the end of the fund's Schedule of Investments.

Semiannual Report

4. Fees and Other Transactions with Affiliates.

Management Fee. FMR and its affiliates provide the fund with investment management related services for which the fund pays a monthly management fee.

Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating funds. Information regarding the fund's participation in the program is included under the caption "Other Information" at the end of the fund's Schedule of Investments.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

5. Committed Line of Credit.

6. Security Lending.

7. Bank Borrowings.

The fund is permitted to have bank borrowings for temporary or emergency purposes to fund shareholder redemptions. The fund has established borrowing arrangements with certain banks. The interest rate on the borrowings is the bank's base rate, as revised from time to time. Information regarding the fund's participation in the program is included under the caption "Other Information" at the end of the fund's Schedule of Investments.

8. Expense Reductions.

Certain security trades were directed to brokers who paid $457,000 of the fund's expenses. In addition, through arrangements with the fund's custodian and transfer agent, credits realized as a result of uninvested cash balances were used to reduce the fund's expenses. During the period, these credits reduced the fund's custody and transfer agent expenses by $9,000 and $43,000, respectively.

Semiannual Report

Managing Your Investments

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Fidelity Automated
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Press

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4 To review orders and mutual
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* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.

Semiannual Report

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Semiannual Report

Michigan

280 Old N. Woodward Ave.
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43420 Grand River Avenue
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Fidelity Brokerage Services, Inc., 100 Summer St., Boston, MA 02110 Member NYSE/SIPC

Semiannual Report

To Write Fidelity

If more than one address is listed, please locate the address that is closest to you. We'll give your correspondence immediate attention and send you written confirmation upon completion of your request.

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General Correspondence

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Semiannual Report

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Fidelity's Asset Allocation Funds

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Fidelity®

Asset Manager: Income®

Semiannual Report

March 31, 2002

(2_fidelity_logos) (Registered_Trademark)

President's Message	<Click Here>	Ned Johnson on investing strategies.
Performance	<Click Here>	How the fund has done over time.
Market Recap	<Click Here>	An overview of the market's performance and the factors driving it.
Fund Talk	<Click Here>	The manager's review of fund performance, strategy and outlook.
Investment Changes	<Click Here>	A summary of major shifts in the fund's investments over the past six months.
Investments	<Click Here>	A complete list of the fund's investments with their market values.
Financial Statements	<Click Here>	Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights.
Notes	<Click Here>	Notes to the financial statements.

Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.

Other third party marks appearing herein are the property of their respective owners.

All other marks appearing herein are registered or unregistered trademarks or service marks of FMR Corp. or an affiliated company.

(Recycle graphic) This report is printed on recycled paper using soy-based inks.

Neither the fund nor Fidelity Distributors Corporation is a bank.

For more information on any Fidelity fund, including charges and expenses, call 1-800-544-6666 for a free prospectus. Read it carefully before you invest or send money.

Semiannual Report

President's Message

(photo_of_Edward_C_Johnson_3d)

Dear Shareholder:

While it's impossible to predict the future direction of the markets with any degree of certainty, there are certain basic principles that can help investors plan for their future needs.

Best regards,

/s/Edward C. Johnson 3d

Edward C. Johnson 3d

Semiannual Report

Performance: The Bottom Line

Cumulative Total Returns

Periods ended March 31, 2002	Past 6 months	Past 1 year	Past 5 years	Life of fund
Fidelity ® Asset Manager: Income ®	3.80%	2.85%	38.25%	102.51%
Fidelity Asset Manager: Income Composite	2.60%	3.98%	44.39%	n/a*
S&P 500 ®	10.99%	0.24%	62.35%	231.57%
LB Aggregate Bond	0.14%	5.35%	44.02%	86.88%
LB 3 Month T-Bill	1.08%	3.33%	28.26%	n/a*
Income Funds Average	4.95%	3.40%	40.62%	n/a*

Cumulative total returns show the fund's performance in percentage terms over a set period - in this case, six months, one year, five years or since the fund started on October 1, 1992. For example, if you had invested $1,000 in a fund that had a 5% return over the past year, the value of your investment would be $1,050. You can compare the fund's returns to the performance of the Fidelity Asset Manager: Income Composite Index, a hypothetical combination of unmanaged indices. The composite index combines the total returns of the Standard & Poor's 500^SMIndex, the Lehman Brothers® Aggregate Bond Index and the Lehman Brothers® 3 Month Treasury Bill Index, weighted according to the fund's neutral mix. To measure how the fund's performance stacked up against its peers, you can compare it to the income funds average, which reflects the performance of mutual funds with similar objectives tracked by Lipper Inc. The past six months average represents a peer group of 103 mutual funds. These benchmarks include reinvested dividends and capital gains, if any, and exclude the effect of sales charges.

Average Annual Total Returns

Periods ended March 31, 2002	Past 1 year	Past 5 years	Life of fund
Fidelity Asset Manager: Income	2.85%	6.69%	7.71%
Fidelity Asset Manager: Income Composite	3.98%	7.62%	n/a*

Average annual total returns take the fund's cumulative return and show you what would have happened if the fund had performed at a constant rate each year.

* Not available

Semiannual Report

Performance - continued

$10,000 Over Life of Fund

$10,000 Over Life of Fund: Let's say hypothetically that $10,000 was invested in Fidelity ® Asset Manager: Income® Fund on October 31, 1992, shortly after the fund started. As the chart shows, by March 31, 2002, the value of the investment would have grown to $20,476 - a 104.76% increase on the initial investment. For comparison, look at how both the Lehman Brothers Aggregate Bond Index, a market value-weighted index of investment-grade fixed-rate debt issues, including government, corporate, asset-backed, and mortgage-backed securities with maturities of one year or more, and the S&P 500 Index, a market capitalization-weighted index of common stocks, did over the same period. With dividends and capital gains, if any, reinvested, the same $10,000 investment in the Lehman Brothers Aggregate Bond Index would have grown to $19,037 - a 90.37% increase. If $10,000 was invested in the S&P 500 Index, it would have grown to $32,923 - a 229.23% increase. You can also look at how the Fidelity Asset Manager: Income Composite Index did over the same period. The composite index combines the total returns of the S&P 500 Index, the Lehman Brothers Aggregate Bond Index and the Lehman Brothers 3 Month T-Bill Index according to the fund's neutral mix and assumes monthly rebalancing of the mix.** With dividends and capital gains, if any, reinvested, the same $10,000 investment would have grown to $19,913 - a 99.13% increase.

Understanding
Performance

** Currently 20% stocks, 50% bonds and 30% short-term/money market instruments effective January 1, 1997; 20%, 30% and 50%, respectively, prior to January 1, 1997.

Semiannual Report

Market Recap

Semiannual Report

Fund Talk: The Manager's Overview

(Portfolio Manager photograph)
An interview with Richard Habermann, Portfolio Manager of Asset Manager: Income

Q. How did the fund perform, Dick?

A. For the six months ending March 31, 2002, the fund returned 3.80%. That performance outpaced the Fidelity Asset Manager: Income Composite Index, which returned 2.60%, but trailed the income funds average tracked by Lipper Inc., which returned 4.95%. For the one-year period ending March 31, 2002, the fund returned 2.85%, while the Composite index and Lipper average returned 3.98% and 3.40%, respectively.

Q. What influence did your asset-allocation decisions have on fund results during the six-month period?

A. A bias toward equities paid off relative to the index, as stocks outpaced most other asset classes during the past six months. Our average exposure during the period was just over 21%, compared to 20% in a neutral weighting. Becoming more aggressive in the fourth quarter helped - as did strong security selection - as stocks snapped back in anticipation of an economic recovery. We then benefited from assuming a more cautious stance heading into 2002 by scaling back on equities as valuations began to look stretched, given little-to-no improvement in company fundamentals and concerns about the Enron debacle. Raising our exposure to high-yield securities - which we felt were oversold amid the flight to quality in government bonds following September 11 - also aided performance. High-yield bonds rebounded strongly from their September lows as economic and issuer levels improved. By emphasizing high-yield rather than poorer-performing investment-grade bonds and cash, we widened our performance advantage over the index. It wasn't enough to overcome our Lipper peers, however, which benefited from having a much higher concentration in stocks on average.

Q. How did the fund's fixed-income investments fare?

A. While each component of our fixed-income subportfolio outperformed the Lehman Brothers Aggregate Bond Index, the fund's high-yield holdings - managed by Matt Conti - had the most influence on subportfolio returns. After suffering one of the worst monthly performances in their history in September, high-yield bonds rallied strongly behind improved economic indicators, issuer fundamentals and overall credit quality, among other factors. Performance benefited from the high coupon income received during the period and from the capital appreciation of our investments. Matt extended his lead over the Lehman Brothers index by focusing on sectors that had big recoveries, namely hotels and airlines. Further, he benefited from maintaining a higher-quality, income-focused structure in the fund, which helped in a period of high default rates. Also key was boosting the fund's weighting in defensive areas of the market such as cable television and homebuilding, which performed well, while shedding exposure to a weak telecommunications sector.

Semiannual Report

Fund Talk: The Manager's Overview - continued

Q. What about the fund's investment-grade bond and short-term/money market investments?

A. Declining short-term interest rates, a steepening yield curve and unique technical factors translated into positive returns for our investment-grade holdings, managed by Charlie Morrison. Emphasizing the spread sectors, particularly corporate and mortgage securities, was a positive, as investors sought out higher-yielding alternatives to government bonds. Underweighting economically sensitive retailers and automakers in the aftermath of 9/11 helped within the corporate sector, as did adding to these same groups when they snapped back in the first quarter of 2002. Avoiding several prominent issuers that collapsed as a result of the Enron-related fallout was a plus. Within mortgages, we focused on securities less susceptible to being prepaid, which helped amid the massive refinancing wave in the fall. Finally, given its conservative nature, the strategic cash portion of the fund, managed by John Todd, did what it's designed to do - provide reasonably steady returns to help offset capital market volatility.

Q. What drove the equity portion of the fund?

A. The equity portion of the fund beat the S&P 500 by a respectable margin. Charles Mangum, who took over the fund's equity investments on October 9, 2001, deserves credit for finding and exploiting value opportunities in the market. While sector positioning was critical to his success, so was stock picking, as several high-profile companies disappointed on earnings and/or experienced severe financial stress. Charles' pursuit of growth at a reasonable price worked well, as he added exposure to high-quality names within such volatile sectors as technology that were badly beaten down coming out of 9/11. Within tech, the fund benefited most from Charles' focus on more established and stable companies that he felt would rebound faster than the more aggressive, debt-burdened companies. Sizable positions in large-caps Micron Technology and Microsoft helped quite a bit, as did taking profits on smaller-sized stocks, such as Network Associates, that had performed well but became expensive late in 2001.

Q. What else influenced stock performance?

A. Other cyclical plays that helped us during the fourth quarter included energy services stocks such as BJ Services, and media holdings such as Clear Channel Communications, as well as various banks and more aggressive brokerage-related names. Charles also added to positions in a handful of attractively priced consumer staples stocks, including Coca-Cola, which - due to their defensive nature - fared well during the second half of the period as the prospects for a vigorous economic recovery waned. On the down side, the fund was hurt the most by the continued struggles of leading pharmaceutical companies, most notably Bristol-Myers Squibb and Schering-Plough, which failed to deliver expected earnings growth.

Q. What's your outlook?

Semiannual Report

Fund Facts

Goal: high current income, and capital appreciation when appropriate

Fund number: 328

Trading symbol: FASIX

Start date: October 1, 1992

Size: as of March 31, 2002, more than $919 million

Manager: Richard Habermann, since 1996; manager, Fidelity Asset Manager: Aggressive, since 1999; Fidelity Asset Manager and Fidelity Asset Manager: Growth, since 1996; Fidelity Trend Fund, 1977-1982; Fidelity Magellan Fund, 1972-1977; joined Fidelity in 1968

Dick Habermann discusses a recovery in equities:

Note to shareholders: Effective April 1, 2002, Jeff Moore assumed responsibility for managing the fund's investment-grade bond subportfolio.

Semiannual Report

Investment Changes

Top Five Bond Issuers as of March 31, 2002
(with maturities greater than one year)	% of fund's net assets	% of fund's net assets 6 months ago
Fannie Mae	13.1	13.1
U.S. Treasury Obligations	7.4	5.7
Government National Mortgage Association	3.0	2.3
AT&T Corp.	0.4	0.4
Charter Communications Holdings LLC/Charter Communications Holdings Capital Corp.	0.4	0.4
	24.3
Quality Diversification as of March 31, 2002
(Moody's Ratings)	% of fund's investments	% of fund's investments 6 months ago
Aaa, Aa, A	30.7	30.5
Baa	9.1	9.2
Ba and Below	10.5	8.8
Not Rated	0.1	0.1

Table excludes short-term investments. Where Moody's ratings are not available, we have used S&P ® ratings.

Top Five Stocks as of March 31, 2002
	% of fund's net assets	% of fund's net assets 6 months ago
Cardinal Health, Inc.	1.5	0.1
Clear Channel Communications, Inc.	1.0	0.0
General Electric Co.	0.9	0.6
Fannie Mae	0.9	0.2
Bristol-Myers Squibb Co.	0.8	0.2
	5.1

Asset Allocation (% of fund's net assets)
As of March 31, 2002 *			As of September 30, 2001**
	Stock class 20.0%			Stock class 21.6%
	Bond class 51.0%			Bond class 47.2%
	Short-term class 29.0%			Short-term class 31.2%
* Foreign investments		3.7%	** Foreign investments		4.5%

Semiannual Report

Investments March 31, 2002 (Unaudited)

Showing Percentage of Net Assets

Common Stocks - 19.8%
	Shares		Value (Note 1)
CONSUMER DISCRETIONARY - 2.3%
Hotels, Restaurants & Leisure - 0.1%
McDonald's Corp.	27,700		$ 768,675
Household Durables - 0.1%
Centex Corp.	2,700		140,211
KB Home	4,700		203,980
Leggett & Platt, Inc.	7,100		176,080
Pulte Homes, Inc.	1,100		52,635
			572,906
Media - 1.5%
AOL Time Warner, Inc. (a)	175,000		4,138,750
Clear Channel Communications, Inc. (a)	172,800		8,883,648
Comcast Corp. Class A (special) (a)	10,200		324,360
Viacom, Inc. Class B (non-vtg.) (a)	3,100		149,947
			13,496,705
Multiline Retail - 0.2%
Costco Wholesale Corp. (a)	11,200		445,984
Federated Department Stores, Inc. (a)	19,300		788,405
Target Corp.	18,700		806,344
			2,040,733
Specialty Retail - 0.4%
Abercrombie & Fitch Co. Class A (a)	7,800		240,240
Gap, Inc.	10,500		157,920
Home Depot, Inc.	33,400		1,623,574
Lowe's Companies, Inc.	36,200		1,574,338
The Limited, Inc.	22,330		399,707
			3,995,779
TOTAL CONSUMER DISCRETIONARY			20,874,798
CONSUMER STAPLES - 2.1%
Beverages - 0.8%
PepsiCo, Inc.	39,100		2,013,650
The Coca-Cola Co.	96,200		5,027,412
			7,041,062
Food & Drug Retailing - 0.5%
Albertson's, Inc.	48,600		1,610,604
CVS Corp.	70,700		2,427,131
Safeway, Inc. (a)	18,300		823,866
			4,861,601
Common Stocks - continued
	Shares		Value (Note 1)
CONSUMER STAPLES - continued
Food Products - 0.0%
Kraft Foods, Inc. Class A	4,000		$ 154,600
Personal Products - 0.3%
Alberto-Culver Co. Class B	17,300		934,200
Estee Lauder Companies, Inc. Class A	9,100		310,856
Gillette Co.	37,970		1,291,360
			2,536,416
Tobacco - 0.5%
Philip Morris Companies, Inc.	91,100		4,798,237
TOTAL CONSUMER STAPLES			19,391,916
ENERGY - 1.0%
Energy Equipment & Services - 0.1%
GlobalSantaFe Corp.	11,375		371,963
Halliburton Co.	18,500		315,795
			687,758
Oil & Gas - 0.9%
ChevronTexaco Corp.	23,400		2,112,318
Conoco, Inc.	163,500		4,770,930
Exxon Mobil Corp.	32,800		1,437,624
			8,320,872
TOTAL ENERGY			9,008,630
FINANCIALS - 4.5%
Banks - 1.6%
Bank of America Corp.	14,000		952,280
Bank One Corp.	19,800		827,244
Comerica, Inc.	61,300		3,835,541
FleetBoston Financial Corp.	49,700		1,739,500
PNC Financial Services Group, Inc.	70,600		4,341,194
Synovus Financial Corp.	25,400		774,192
U.S. Bancorp, Delaware	33,846		763,904
Wachovia Corp.	30,276		1,122,634
			14,356,489
Diversified Financials - 1.9%
American Express Co.	6,200		253,952
Bank United Corp. Litigation Contingent Payment Rights Trust rights 12/31/02 (a)	10,200		1,326
Citigroup, Inc.	135,967		6,733,069
Common Stocks - continued
	Shares		Value (Note 1)
FINANCIALS - continued
Diversified Financials - continued
Fannie Mae	102,300		$ 8,171,724
Merrill Lynch & Co., Inc.	29,300		1,622,634
Morgan Stanley Dean Witter & Co.	16,600		951,346
			17,734,051
Insurance - 1.0%
AFLAC, Inc.	16,100		474,950
Allmerica Financial Corp.	16,500		740,850
American International Group, Inc.	96,100		6,932,654
Hartford Financial Services Group, Inc.	16,200		1,103,544
PartnerRe Ltd.	1,100		60,060
Prudential Financial, Inc.	2,700		83,835
			9,395,893
TOTAL FINANCIALS			41,486,433
HEALTH CARE - 4.0%
Health Care Equipment & Supplies - 0.3%
C.R. Bard, Inc.	8,200		484,210
Guidant Corp. (a)	41,000		1,776,120
Zimmer Holdings, Inc. (a)	25,000		851,250
			3,111,580
Health Care Providers & Services - 1.5%
Cardinal Health, Inc.	190,100		13,476,189
Pharmaceuticals - 2.2%
Bristol-Myers Squibb Co.	194,500		7,875,305
Elan Corp. PLC sponsored ADR (a)	51,900		721,929
Eli Lilly & Co.	13,600		1,036,320
Pfizer, Inc.	134,700		5,352,978
Pharmacia Corp.	15,700		707,756
Schering-Plough Corp.	85,100		2,663,630
Wyeth	35,500		2,330,575
			20,688,493
TOTAL HEALTH CARE			37,276,262
INDUSTRIALS - 1.9%
Aerospace & Defense - 0.1%
United Technologies Corp.	8,700		645,540
Common Stocks - continued
	Shares		Value (Note 1)
INDUSTRIALS - continued
Airlines - 0.1%
AMR Corp. (a)	6,700		$ 176,947
Delta Air Lines, Inc.	5,700		186,504
Southwest Airlines Co.	10,100		195,435
			558,886
Building Products - 0.0%
Masco Corp.	17,500		480,375
Commercial Services & Supplies - 0.1%
Allied Waste Industries, Inc. (a)	11,300		146,900
ChoicePoint, Inc. (a)	18,650		1,074,240
			1,221,140
Industrial Conglomerates - 1.3%
General Electric Co.	223,800		8,381,310
Textron, Inc.	10,500		536,550
Tyco International Ltd.	93,400		3,018,688
			11,936,548
Machinery - 0.1%
Ingersoll-Rand Co. Ltd. Class A	17,700		885,354
Parker Hannifin Corp.	4,060		202,594
			1,087,948
Road & Rail - 0.2%
Burlington Northern Santa Fe Corp.	41,000		1,237,380
Union Pacific Corp.	10,800		671,112
			1,908,492
TOTAL INDUSTRIALS			17,838,929
INFORMATION TECHNOLOGY - 2.3%
Communications Equipment - 0.2%
Cisco Systems, Inc. (a)	84,100		1,423,813
Comverse Technology, Inc. (a)	31,000		392,770
			1,816,583
Computers & Peripherals - 0.4%
Dell Computer Corp. (a)	92,200		2,407,342
EMC Corp. (a)	20,400		243,168
Sun Microsystems, Inc. (a)	37,200		328,104
			2,978,614
Electronic Equipment & Instruments - 0.1%
Ingram Micro, Inc. Class A (a)	12,500		206,875
Common Stocks - continued
	Shares		Value (Note 1)
INFORMATION TECHNOLOGY - continued
Electronic Equipment & Instruments - continued
Solectron Corp. (a)	87,900		$ 685,620
Symbol Technologies, Inc.	19,700		221,428
			1,113,923
IT Consulting & Services - 0.0%
Electronic Data Systems Corp.	3,100		179,769
Semiconductor Equipment & Products - 0.7%
Altera Corp. (a)	20,300		443,961
Analog Devices, Inc. (a)	13,400		603,536
Intel Corp.	50,000		1,520,500
KLA-Tencor Corp. (a)	5,000		332,500
Linear Technology Corp.	18,700		826,914
Micron Technology, Inc. (a)	32,700		1,075,830
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR	29,500		612,125
Teradyne, Inc. (a)	2,500		98,575
United Microelectronics Corp. sponsored ADR	52,600		560,190
Xilinx, Inc. (a)	11,400		454,404
			6,528,535
Software - 0.9%
Adobe Systems, Inc.	14,100		568,089
Computer Associates International, Inc.	85,000		1,860,650
Microsoft Corp. (a)	92,500		5,578,675
Oracle Corp. (a)	29,600		378,880
			8,386,294
TOTAL INFORMATION TECHNOLOGY			21,003,718
MATERIALS - 0.1%
Chemicals - 0.0%
E.I. du Pont de Nemours & Co.	8,100		381,915
Praxair, Inc.	1,000		59,800
			441,715
Metals & Mining - 0.1%
Alcoa, Inc.	14,200		535,908
Paper & Forest Products - 0.0%
International Paper Co.	10,700		460,207
TOTAL MATERIALS			1,437,830
Common Stocks - continued
	Shares		Value (Note 1)
TELECOMMUNICATION SERVICES - 1.4%
Diversified Telecommunication Services - 1.4%
AT&T Corp.	88,200		$ 1,384,740
BellSouth Corp.	79,300		2,922,998
Qwest Communications International, Inc.	75,000		616,500
SBC Communications, Inc.	93,500		3,500,640
Verizon Communications, Inc.	85,800		3,916,770
			12,341,648
Wireless Telecommunication Services - 0.0%
Nextel Communications, Inc. Class A (a)	33,700		181,306
TOTAL TELECOMMUNICATION SERVICES			12,522,954
UTILITIES - 0.2%
Electric Utilities - 0.2%
AES Corp. (a)	15,500		139,500
FirstEnergy Corp.	32,100		1,110,018
Progress Energy, Inc. warrants 12/31/07 (a)	9,200		0
Southern Co.	13,300		352,317
			1,601,835
TOTAL COMMON STOCKS (Cost $174,328,608)		182,443,305
Preferred Stocks - 0.2%

Convertible Preferred Stocks - 0.0%
FINANCIALS - 0.0%
Diversified Financials - 0.0%
AES Trust VII $3.00	8,900		170,435
Nonconvertible Preferred Stocks - 0.2%
CONSUMER DISCRETIONARY - 0.2%
Media - 0.2%
CSC Holdings, Inc.:
Series H, $11.75	8,530		895,650
Series M, $11.125	10,966		1,129,498
			2,025,148
TOTAL PREFERRED STOCKS (Cost $2,201,043)		2,195,583

Corporate Bonds - 24.9%
Moody's Ratings (unaudited) (b)		Principal Amount		Value (Note 1)
Convertible Bonds - 0.9%
CONSUMER DISCRETIONARY - 0.1%
Specialty Retail - 0.1%
Gap, Inc. 5.75% 3/15/09 (g)	Ba3	$ 401,000		$ 466,146
FINANCIALS - 0.0%
Diversified Financials - 0.0%
Elan Finance Corp. Ltd. liquid yield option note 0% 12/14/18	Baa3	620,000		301,475
HEALTH CARE - 0.3%
Biotechnology - 0.1%
Affymetrix, Inc. 4.75% 2/15/07	-	840,000		669,900
Aviron 5.25% 2/1/08	-	200,000		200,000
				869,900
Health Care Providers & Services - 0.2%
Tenet Healthcare Corp. (Ventas, Inc.) 6% 12/1/05	Ba1	1,390,000		1,348,300
TOTAL HEALTH CARE				2,218,200
INFORMATION TECHNOLOGY - 0.4%
Communications Equipment - 0.2%
CIENA Corp. 3.75% 2/1/08	Ba3	270,000		173,799
Comverse Technology, Inc. 1.5% 12/1/05	BB	600,000		459,174
Juniper Networks, Inc. 4.75% 3/15/07	B2	1,210,000		869,397
ONI Systems Corp. 5% 10/15/05	CCC	190,000		145,635
				1,648,005
Electronic Equipment & Instruments - 0.1%
Agilent Technologies, Inc. 3% 12/1/21 (g)	Baa2	200,000		251,912
Sanmina-SCI Corp.:
0% 9/12/20	Ba3	1,400,000		505,680
4.25% 5/1/04	Ba2	160,000		150,800
				908,392
Semiconductor Equipment & Products - 0.1%
Atmel Corp. 0% 5/23/21	CCC+	407,000		136,833
LSI Logic Corp. 4% 2/15/05	Ba3	280,000		241,500
Vitesse Semiconductor Corp. 4% 3/15/05	B2	520,000		412,100
				790,433
Corporate Bonds - continued
Moody's Ratings (unaudited) (b)		Principal Amount		Value (Note 1)
Convertible Bonds - continued
INFORMATION TECHNOLOGY - continued
Software - 0.0%
Network Associates, Inc. 5.25% 8/15/06 (g)	-	$ 60,000		$ 93,270
TOTAL INFORMATION TECHNOLOGY				3,440,100
TELECOMMUNICATION SERVICES - 0.1%
Diversified Telecommunication Services - 0.0%
Korea Telecom Corp. 0.25% 1/4/07 (g)	Baa2	540,000		616,950
Wireless Telecommunication Services - 0.1%
Aether Systems, Inc. 6% 3/22/05	-	200,000		109,680
Nextel Communications, Inc.:
4.75% 7/1/07	B1	100,000		59,000
6% 6/1/11 (g)	B1	210,000		116,802
6% 6/1/11	B1	700,000		389,340
				674,822
TOTAL TELECOMMUNICATION SERVICES				1,291,772
UTILITIES - 0.0%
Multi-Utilities - 0.0%
Enron Corp. 0% 2/7/21 (d)	Ca	2,160,000		194,400
TOTAL CONVERTIBLE BONDS				7,912,093
Nonconvertible Bonds - 24.0%
CONSUMER DISCRETIONARY - 6.0%
Auto Components - 0.1%
American Axle & Manufacturing, Inc. 9.75% 3/1/09	Ba3	150,000		160,500
ArvinMeritor, Inc. 8.75% 3/1/12	Baa3	290,000		301,600
Delco Remy International, Inc. 11% 5/1/09	B2	180,000		162,000
Goodyear Tire & Rubber Co.:
6.625% 12/1/06	Baa3	150,000		141,750
7.857% 8/15/11	Baa3	240,000		232,800
8.5% 3/15/07	Baa3	60,000		60,600
Lear Corp. 8.11% 5/15/09	Ba1	355,000		365,650
				1,424,900
Hotels, Restaurants & Leisure - 1.4%
Alliance Gaming Corp. 10% 8/1/07	B3	335,000		352,588
Corporate Bonds - continued
Moody's Ratings (unaudited) (b)		Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
CONSUMER DISCRETIONARY - continued
Hotels, Restaurants & Leisure - continued
Anchor Gaming 9.875% 10/15/08	Ba3	$ 330,000		$ 367,950
Aztar Corp. 8.875% 5/15/07	Ba3	90,000		92,250
Bally Total Fitness Holding Corp. 9.875% 10/15/07	B2	415,000		412,925
Boyd Gaming Corp. 9.25% 10/1/03	Ba3	300,000		310,500
Capstar Hotel Co. 8.75% 8/15/07	Ba3	30,000		29,550
Circus Circus Enterprises, Inc.:
6.45% 2/1/06	Ba2	110,000		105,738
6.75% 7/15/03	Ba3	80,000		79,800
Coast Hotels & Casinos, Inc. 9.5% 4/1/09 (g)	B3	180,000		189,900
Courtyard by Marriott II LP/Courtyard II Finance Co. 10.75% 2/1/08	B1	420,000		433,125
Domino's, Inc. 10.375% 1/15/09	B3	841,000		912,485
Florida Panthers Holdings, Inc. 9.875% 4/15/09	B2	365,000		386,900
Friendly Ice Cream Corp. 10.5% 12/1/07	B3	200,000		192,000
Harrah's Operating Co., Inc. 7.875% 12/15/05	Ba1	380,000		397,100
Herbst Gaming, Inc. 10.75% 9/1/08	B2	220,000		231,000
Hilton Hotels Corp. 7.625% 5/15/08	Ba1	330,000		323,400
HMH Properties, Inc.:
7.875% 8/1/05	Ba3	525,000		519,750
7.875% 8/1/08	Ba3	120,000		117,600
Hollywood Park, Inc. 9.25% 2/15/07	Caa1	165,000		156,750
Host Marriott LP 9.5% 1/15/07 (g)	Ba3	250,000		263,125
International Game Technology:
7.875% 5/15/04	Ba1	360,000		370,800
8.375% 5/15/09	Ba1	420,000		436,800
ITT Corp.:
6.75% 11/15/05	Ba1	190,000		188,100
7.375% 11/15/15	Ba1	350,000		329,000
Mandalay Resort Group 10.25% 8/1/07	Ba3	290,000		313,925
MGM Mirage, Inc.:
6.95% 2/1/05	Ba1	180,000		180,936
9.75% 6/1/07	Ba2	180,000		194,400
Mirage Resorts, Inc.:
6.75% 8/1/07	Ba1	130,000		125,645
7.25% 10/15/06	Ba1	325,000		324,344
Mohegan Tribal Gaming Authority:
8% 4/1/12 (g)	Ba3	290,000		288,550
8.125% 1/1/06	Ba2	420,000		430,500
Corporate Bonds - continued
Moody's Ratings (unaudited) (b)		Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
CONSUMER DISCRETIONARY - continued
Hotels, Restaurants & Leisure - continued
Park Place Entertainment Corp.:
7.875% 12/15/05	Ba2	$ 745,000		$ 748,725
7.875% 3/15/10 (g)	Ba2	290,000		287,463
Resorts International Hotel & Casino, Inc. 11.5% 3/15/09 (g)	B2	410,000		387,450
Sun International Hotels Ltd./Sun International North America, Inc.:
8.875% 8/15/11	Ba3	660,000		671,550
yankee:
8.625% 12/15/07	B2	120,000		121,800
9% 3/15/07	B2	170,000		175,525
Tricon Global Restaurants, Inc.:
8.5% 4/15/06	Ba1	325,000		337,188
8.875% 4/15/11	Ba1	700,000		742,000
				12,529,137
Household Durables - 0.4%
D.R. Horton, Inc. 8% 2/1/09	Ba1	590,000		581,150
Juno Lighting, Inc. 11.875% 7/1/09	B3	240,000		250,800
K. Hovnanian Enterprises, Inc. 8.875% 4/1/12 (g)	B2	405,000		393,863
Kaufman & Broad Home Corp. 7.75% 10/15/04	Ba2	130,000		133,575
KB Home 8.625% 12/15/08	Ba3	300,000		307,500
Kinetic Concepts, Inc. 9.625% 11/1/07	B3	320,000		331,200
Lennar Corp. 9.95% 5/1/10	Ba1	310,000		345,650
Mohawk Industries, Inc. 6.5% 4/15/07 (g)	Baa2	475,000		476,310
Ryland Group, Inc. 9.75% 9/1/10	Ba2	270,000		292,950
WCI Communities, Inc. 10.625% 2/15/11	B1	645,000		696,600
				3,809,598
Internet & Catalog Retail - 0.1%
Amazon.com, Inc. 0% 5/1/08 (e)	B3	110,000		93,500
J. Crew Group, Inc. 0% 10/15/08 (e)	Caa3	910,000		573,300
				666,800
Leisure Equipment & Products - 0.1%
Hasbro, Inc.:
5.6% 11/1/05	Ba3	150,000		139,125
Corporate Bonds - continued
Moody's Ratings (unaudited) (b)		Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
CONSUMER DISCRETIONARY - continued
Leisure Equipment & Products - continued
Hasbro, Inc.: - continued
7.95% 3/15/03	Ba3	$ 465,000		$ 474,300
Hockey Co. 11.25% 4/15/09 (g)	B2	190,000		192,375
				805,800
Media - 3.0%
Adelphia Communications Corp.:
7.5% 1/15/04	B2	170,000		154,700
9.25% 10/1/02	B2	175,000		169,750
10.25% 11/1/06	B2	530,000		482,300
10.25% 6/15/11	B2	550,000		495,000
10.5% 7/15/04	B2	135,000		130,950
10.875% 10/1/10	B2	70,000		64,400
AMC Entertainment, Inc.:
9.5% 3/15/09	Caa3	40,000		39,800
9.875% 2/1/12 (g)	Caa3	380,000		381,900
American Media Operations, Inc.:
10.25% 5/1/09	B2	40,000		41,400
10.25% 5/1/09 (g)	B2	290,000		300,150
British Sky Broadcasting Group PLC yankee:
7.3% 10/15/06	Ba1	400,000		398,952
8.2% 7/15/09	Ba1	780,000		785,749
Century Communications Corp. 8.375% 12/15/07	B2	80,000		72,000
Chancellor Media Corp. 8% 11/1/08	Ba1	410,000		431,525
Charter Communications Holdings LLC/Charter Communications Holdings Capital Corp.:
0% 1/15/10 (e)	B2	240,000		164,400
0% 5/15/11 (e)	B2	1,200,000		696,000
8.25% 4/1/07	B2	510,000		466,650
8.625% 4/1/09	B2	935,000		850,850
9.625% 11/15/09 (g)	B2	290,000		275,500
10% 4/1/09	B2	860,000		838,500
11.125% 1/15/11	B2	330,000		334,950
Cinemark USA, Inc. 9.625% 8/1/08	Caa2	495,000		485,100
Clear Channel Communications, Inc. 6% 11/1/06	Baa3	805,000		784,030
Continental Cablevision, Inc. 8.3% 5/15/06	Baa2	1,275,000		1,334,543
Corus Entertainment, Inc. 8.75% 3/1/12 (g)	B1	140,000		144,900
Corporate Bonds - continued
Moody's Ratings (unaudited) (b)		Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
CONSUMER DISCRETIONARY - continued
Media - continued
CSC Holdings, Inc.:
9.875% 2/15/13	Ba3	$ 385,000		$ 408,100
9.875% 4/1/23	BB-	300,000		318,000
10.5% 5/15/16	Ba3	35,000		38,850
EchoStar DBS Corp.:
9.125% 1/15/09 (g)	B1	140,000		143,850
9.25% 2/1/06	B1	1,375,000		1,409,375
Entravision Communications Corp. 8.125% 3/15/09 (g)	B3	90,000		91,013
Fox Family Worldwide, Inc.:
9.25% 11/1/07	Baa1	880,000		932,800
10.25% 11/1/07 (f)	Baa1	235,000		251,450
FrontierVision Holdings LP/FrontierVision Holdings Capital Corp. 11.875% 9/15/07	B2	865,000		873,650
FrontierVision Holdings LP/FrontierVision Holdings Capital II Corp. 11.875% 9/15/07	B2	1,370,000		1,383,700
FrontierVision Operating Partners LP/FrontierVision Capital Corp. 11% 10/15/06	B2	590,000		606,225
Granite Broadcasting Corp. 10.375% 5/15/05	Ca	45,000		41,400
Hearst-Argyle Television, Inc. 7.5% 11/15/27	Baa3	1,150,000		977,661
K-III Communications Corp. 8.5% 2/1/06	B1	160,000		145,600
Lamar Media Corp.:
9.25% 8/15/07	B1	150,000		156,750
9.625% 12/1/06	Ba3	200,000		209,500
News America Holdings, Inc.:
7.7% 10/30/25	Baa3	1,090,000		1,031,696
8% 10/17/16	Baa3	770,000		789,212
Olympus Communications LP/Olympus Capital Corp. 10.625% 11/15/06	B2	560,000		543,200
Pegasus Satellite Communications, Inc.:
0% 3/1/07 (e)	Caa1	470,000		188,000
12.375% 8/1/06	B3	240,000		168,000
PRIMEDIA, Inc. 8.875% 5/15/11	Ba3	200,000		178,000
Radio One, Inc. 8.875% 7/1/11	B3	485,000		509,250
Regal Cinemas Corp. 9.375% 2/1/12 (g)	B3	260,000		273,000
Satelites Mexicanos SA de CV 6.38% 6/30/04 (g)(i)	B1	195,000		173,550
Shaw Communications, Inc. 8.25% 4/11/10	Baa3	1,275,000		1,338,788
Corporate Bonds - continued
Moody's Ratings (unaudited) (b)		Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
CONSUMER DISCRETIONARY - continued
Media - continued
Sinclair Broadcast Group, Inc.:
8% 3/15/12 (g)	B2	$ 520,000		$ 516,100
8.75% 12/15/07	B2	180,000		185,400
Spanish Broadcasting System, Inc. 9.625% 11/1/09	B3	140,000		146,125
TCI Communications, Inc. 9.8% 2/1/12	Baa2	310,000		344,934
Telemundo Holdings, Inc. 0% 8/15/08 (e)	B3	375,000		371,250
Time Warner, Inc. 8.18% 8/15/07	Baa1	2,115,000		2,288,980
Yell Finance BV:
0% 8/1/11 (e)	B2	300,000		195,000
10.75% 8/1/11	B2	220,000		237,600
				27,790,008
Multiline Retail - 0.4%
Dillard's, Inc.:
6.125% 11/1/03	Ba1	105,000		102,900
6.39% 8/1/03	Ba1	230,000		226,550
6.43% 8/1/04	Ba1	71,000		69,403
6.875% 6/1/05	Ba1	50,000		48,000
7.15% 9/1/02	Ba1	355,000		355,000
7.375% 6/1/06	Ba1	50,000		48,500
Federated Department Stores, Inc.:
6.79% 7/15/27	Baa1	800,000		828,152
8.5% 6/15/03	Baa1	830,000		866,429
JCPenney Co., Inc.:
6.125% 11/15/03	Ba2	155,000		151,900
6.9% 8/15/26	Ba2	275,000		264,000
7.25% 4/1/02	Ba2	500,000		497,500
7.95% 4/1/17	Ba2	60,000		50,400
Saks, Inc.:
7.25% 12/1/04	B1	40,000		39,500
7.5% 12/1/10	B1	100,000		94,000
8.25% 11/15/08	B1	40,000		39,200
9.875% 10/1/11	B1	192,000		199,200
				3,880,634
Specialty Retail - 0.2%
AutoNation, Inc. 9% 8/1/08	Ba2	130,000		136,825
Gap, Inc.:
5.625% 5/1/03	Ba3	280,000		271,600
Corporate Bonds - continued
Moody's Ratings (unaudited) (b)		Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
CONSUMER DISCRETIONARY - continued
Specialty Retail - continued
Gap, Inc.: - continued
8.15% 12/15/05 (f)(g)	Ba3	$ 380,000		$ 366,700
8.8% 12/15/08 (f)(g)	Ba3	140,000		135,800
Michaels Stores, Inc. 9.25% 7/1/09	Ba2	250,000		266,250
Office Depot, Inc. 10% 7/15/08	Ba1	345,000		382,950
PETCO Animal Supplies, Inc. 10.75% 11/1/11 (g)	B3	80,000		87,800
United Auto Group, Inc. 9.625% 3/15/12 (g)	B3	130,000		133,250
United Rentals, Inc.:
8.8% 8/15/08	B2	40,000		40,400
9% 4/1/09	B2	40,000		40,800
9.25% 1/15/09	B2	190,000		195,225
				2,057,600
Textiles & Apparel - 0.3%
Jones Apparel Group, Inc. 7.875% 6/15/06	Baa2	1,425,000		1,476,257
Levi Strauss & Co. 6.8% 11/1/03	B2	350,000		341,250
The William Carter Co. 10.875% 8/15/11	B3	250,000		268,125
Tommy Hilfiger USA, Inc. 6.5% 6/1/03	Ba1	590,000		585,575
				2,671,207
TOTAL CONSUMER DISCRETIONARY				55,635,684
CONSUMER STAPLES - 0.6%
Beverages - 0.1%
Canandaigua Brands, Inc. 8.625% 8/1/06	Ba2	110,000		116,325
Constellation Brands, Inc. 8.125% 1/15/12	Ba3	310,000		316,200
Cott Beverages, Inc. 8% 12/15/11 (g)	B2	300,000		303,750
				736,275
Food & Drug Retailing - 0.0%
Great Atlantic & Pacific Tea, Inc.:
7.75% 4/15/07	B2	140,000		139,475
9.125% 12/15/11	B2	160,000		167,200
Pathmark Stores, Inc. 8.75% 2/1/12 (g)	B2	140,000		144,900
				451,575
Food Products - 0.2%
Dean Foods Co.:
6.75% 6/15/05	B1	230,000		230,000
Corporate Bonds - continued
Moody's Ratings (unaudited) (b)		Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
CONSUMER STAPLES - continued
Food Products - continued
Dean Foods Co.: - continued
6.9% 10/15/17	B1	$ 290,000		$ 246,500
8.15% 8/1/07	B1	260,000		261,300
Del Monte Corp. 9.25% 5/15/11	B3	695,000		729,750
Smithfield Foods, Inc. 8% 10/15/09	Ba2	180,000		181,800
				1,649,350
Household Products - 0.0%
Fort James Corp. 6.875% 9/15/07	Baa3	70,000		65,450
Tobacco - 0.3%
Philip Morris Companies, Inc. 7% 7/15/05	A2	1,755,000		1,824,691
RJ Reynolds Tobacco Holdings, Inc. 7.375% 5/15/03	Baa2	1,290,000		1,317,000
				3,141,691
TOTAL CONSUMER STAPLES				6,044,341
ENERGY - 1.3%
Energy Equipment & Services - 0.3%
DI Industries, Inc. 8.875% 7/1/07	B1	355,000		362,100
Grant Prideco, Inc. 9.625% 12/1/07	Ba3	210,000		218,400
Key Energy Services, Inc.:
Series B, 8.375% 3/1/08	Ba3	405,000		415,125
8.375% 3/1/08	Ba3	130,000		133,250
14% 1/15/09	B2	110,000		125,950
Parker Drilling Co. 9.75% 11/15/06	B1	235,000		240,875
Petroliam Nasional BHD (Petronas) yankee 8.875% 8/1/04 (g)	Baa1	1,085,000		1,193,500
				2,689,200
Oil & Gas - 1.0%
Alberta Energy Co. Ltd. yankee 7.375% 11/1/31	Baa1	570,000		573,996
Chesapeake Energy Corp.:
7.875% 3/15/04	B1	410,000		414,100
8.125% 4/1/11	B1	75,000		75,188
Cross Timbers Oil Co.:
8.75% 11/1/09	Ba3	195,000		204,750
9.25% 4/1/07	Ba3	135,000		141,750
Devon Energy Corp. 7.95% 4/15/32	Baa2	900,000		901,089
Corporate Bonds - continued
Moody's Ratings (unaudited) (b)		Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
ENERGY - continued
Oil & Gas - continued
Forest Oil Corp.:
8% 6/15/08	Ba3	$ 190,000		$ 195,225
8% 12/15/11 (g)	Ba3	80,000		81,600
Magnum Hunter Resources, Inc. 9.6% 3/15/12 (g)	B2	90,000		94,050
Nuevo Energy Co. 9.5% 6/1/08	B2	190,000		188,100
Oryx Energy Co.:
8% 10/15/03	Baa2	920,000		959,772
8.125% 10/15/05	Baa2	1,440,000		1,532,750
Pennzoil-Quaker State Co.:
6.75% 4/1/09	Ba2	20,000		20,500
9.4% 12/1/02 (f)	Ba2	30,000		30,600
10% 11/1/08 (g)	Ba3	370,000		429,200
Petro-Canada yankee 7% 11/15/28	Baa2	430,000		394,013
Phillips Petroleum Co. 8.75% 5/25/10	A3	580,000		661,403
Plains Resources, Inc. Series F, 10.25% 3/15/06	B2	165,000		170,775
Pogo Producing Co. 8.25% 4/15/11	B1	395,000		412,775
Suncor Energy, Inc. 7.15% 2/1/32	A3	550,000		541,519
The Coastal Corp. 9.625% 5/15/12	Baa2	975,000		1,100,132
Triton Energy Ltd. yankee 8.875% 10/1/07	BBB	80,000		87,400
Triton Energy Ltd./Triton Energy Corp. 9.25% 4/15/05	Baa2	70,000		76,475
				9,287,162
TOTAL ENERGY				11,976,362
FINANCIALS - 7.3%
Banks - 1.9%
Bank of America Corp.:
7.4% 1/15/11	Aa3	1,210,000		1,278,438
7.8% 2/15/10	Aa3	1,140,000		1,229,216
Bank One Corp. 7.875% 8/1/10	A1	485,000		528,572
BankBoston Corp. 6.625% 2/1/04	A2	150,000		156,072
BankBoston NA 6.5% 12/19/07	A1	2,000,000		2,022,500
Capital One Bank:
6.375% 2/15/03	Baa2	880,000		878,469
6.5% 7/30/04	Baa2	515,000		502,681
6.65% 3/15/04	Baa3	440,000		434,364
6.7% 5/15/08	Baa2	60,000		63,115
Corporate Bonds - continued
Moody's Ratings (unaudited) (b)		Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
FINANCIALS - continued
Banks - continued
Capital One Bank: - continued
6.875% 2/1/06	Baa2	$ 125,000		$ 120,731
Chevy Chase Savings Bank FSB 9.25% 12/1/08	Ba3	310,000		310,000
Den Danske Bank AS 6.375% 6/15/08 (g)(i)	Aa3	2,190,000		2,209,710
Fleet Financial Group, Inc. 7.125% 4/15/06	A2	350,000		367,703
Home Savings of America FSB 6.5% 8/15/04	A3	750,000		772,298
HSBC Finance Nederland BV 7.4% 4/15/03 (g)	A1	250,000		259,205
Korea Development Bank:
6.625% 11/21/03	Baa2	1,320,000		1,349,528
7.125% 4/22/04	Baa2	620,000		642,611
7.375% 9/17/04	Baa2	195,000		204,317
MBNA Corp. 6.25% 1/17/07	Baa2	480,000		467,928
PNC Funding Corp. 6.875% 3/1/03	A3	530,000		546,271
Royal Bank of Scotland Group PLC:
7.648% 12/31/49 (i)	Aa3	585,000		601,585
7.816% 11/29/49	A1	1,020,000		1,077,016
Sovereign Bancorp, Inc.:
8.625% 3/15/04	Ba2	515,000		531,738
10.5% 11/15/06	Ba2	210,000		229,950
Washington Mutual Bank 6.875% 6/15/11	A3	1,020,000		1,025,712
				17,809,730
Diversified Financials - 4.2%
Ahmanson Capital Trust I 8.36% 12/1/26 (g)	A3	1,000,000		978,920
Alliance Capital Management LP 5.625% 8/15/06	A2	575,000		571,608
American Airlines pass thru trust certificate 7.8% 4/1/08 (g)	A	450,000		445,500
American Gen. Finance Corp. 5.875% 7/14/06	A1	1,180,000		1,184,614
Amvescap PLC yankee 6.6% 5/15/05	A2	2,920,000		2,967,070
Armkel Finance, Inc. 9.5% 8/15/09	B2	380,000		406,600
Associates Corp. of North America:
5.8% 4/20/04	Aa1	1,150,000		1,182,729
6.95% 11/1/18	Aa1	1,190,000		1,196,200
BRL Universal Equipment 2001 A LP/BRL Universal Equipment Corp. 8.875% 2/15/08	Ba3	425,000		437,750
Capital One Financial Corp.:
7.125% 8/1/08	Baa3	1,920,000		1,741,037
7.25% 12/1/03	Baa3	60,000		59,400
Corporate Bonds - continued
Moody's Ratings (unaudited) (b)		Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
FINANCIALS - continued
Diversified Financials - continued
Capital One Financial Corp.: - continued
7.25% 5/1/06	Baa3	$ 200,000		$ 188,000
8.75% 2/1/07	Baa3	60,000		59,400
CIT Group, Inc. 7.75% 4/2/12	A2	525,000		526,801
Citigroup, Inc. 7.25% 10/1/10	Aa2	830,000		873,401
Continental Airlines, Inc.:
pass thru trust certificate:
6.795% 8/2/18	Baa3	29,705		27,489
6.9% 1/2/17	Baa3	85,729		78,941
7.256% 9/15/21	Baa1	53,098		51,324
Countrywide Home Loans, Inc.:
5.5% 8/1/06	A3	920,000		904,636
6.45% 2/27/03	A3	1,200,000		1,232,124
Credit Suisse First Boston (USA), Inc. 6.5% 1/15/12	Aa3	980,000		968,439
Dana Credit Corp. 7.25% 12/6/02 (g)	Ba3	190,000		186,675
Delta Air Lines, Inc. pass thru trust certificate:
7.57% 11/18/10	A3	475,000		483,042
7.92% 5/18/12	A3	100,000		98,580
Devon Financing Corp. ULC 6.875% 9/30/11	Baa2	1,680,000		1,635,362
El Paso Energy Partners LP/El Paso Energy Partners Finance Corp. 8.5% 6/1/11	B1	305,000		314,150
Entercom Radio LLC/Entercom Capital, Inc. 7.625% 3/1/14	Ba3	70,000		69,650
Ford Motor Credit Co.:
7.25% 10/25/11	A3	750,000		726,704
7.375% 10/28/09	A3	450,000		441,414
7.5% 3/15/05	A3	1,060,000		1,080,575
7.875% 6/15/10	A3	500,000		502,420
General Motors Acceptance Corp. 6.875% 9/15/11	A2	520,000		506,418
Goldman Sachs Group, Inc. 6.6% 1/15/12	A1	880,000		875,627
GS Escrow Corp. 7% 8/1/03	Ba1	960,000		969,658
Household Finance Corp. 8% 5/9/05	A2	605,000		636,865
HSBC Capital Funding LP 9.547% 12/31/49 (f)(g)	A1	1,275,000		1,468,558
IOS Capital, Inc. 9.75% 6/15/04	Baa2	380,000		383,800
Mediacom Broadband LLC/Mediacom Broadband Corp. 11% 7/15/13	B2	620,000		688,200
Corporate Bonds - continued
Moody's Ratings (unaudited) (b)		Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
FINANCIALS - continued
Diversified Financials - continued
Meditrust Exercisable Put Options Securities Trust 7.114% 8/15/04 (g)	Ba3	$ 40,000		$ 39,200
Morgan Stanley Dean Witter & Co. 6.6% 4/1/12	Aa3	1,305,000		1,298,423
NiSource Finance Corp. 7.875% 11/15/10	Baa3	1,285,000		1,231,840
Qwest Capital Funding, Inc. 5.875% 8/3/04	Baa3	635,000		549,400
Salomon Smith Barney Holdings, Inc. 5.875% 3/15/06	Aa1	875,000		882,709
Sears Roebuck Acceptance Corp. 6.7% 4/15/12	A3	850,000		837,123
SESI LLC 8.875% 5/15/11	B1	240,000		240,000
Sprint Capital Corp.:
6.125% 11/15/08	Baa2	1,040,000		928,221
6.875% 11/15/28	Baa2	435,000		346,960
8.375% 3/15/12 (g)	Baa2	390,000		385,125
8.75% 3/15/32 (g)	Baa2	920,000		892,400
Stone Container Finance Co. yankee 11.5% 8/15/06 (g)	B2	125,000		135,625
TIAA Global Markets, Inc. 5% 3/1/07 (g)	Aaa	565,000		551,011
TXU Eastern Funding yankee 6.75% 5/15/09	Baa1	1,180,000		1,136,694
U.S. West Capital Funding, Inc. 6.25% 7/15/05	Baa3	150,000		129,509
UBS Preferred Funding Trust 1 8.622% 12/29/49	Aa2	1,000,000		1,104,720
Xerox Capital (Europe) PLC 5.75% 5/15/02	Ba1	305,000		298,900
				38,137,541
Insurance - 0.2%
Allstate Corp. 6.125% 2/15/12	A1	1,460,000		1,422,040
MetLife, Inc. 6.125% 12/1/11	A1	505,000		494,673
St. Paul Companies, Inc. 5.75% 3/15/07	A2	295,000		292,841
				2,209,554
Real Estate - 1.0%
CenterPoint Properties Trust:
6.75% 4/1/05	Baa2	490,000		493,866
7.125% 3/15/04	Baa2	1,250,000		1,282,038
Duke-Weeks Realty LP 6.875% 3/15/05	Baa2	900,000		919,935
EOP Operating LP:
6.375% 2/15/03	Baa1	350,000		356,857
Corporate Bonds - continued
Moody's Ratings (unaudited) (b)		Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
FINANCIALS - continued
Real Estate - continued
EOP Operating LP: - continued
6.75% 2/15/08	Baa1	$ 480,000		$ 480,178
7.75% 11/15/07	Baa1	1,710,000		1,806,290
ERP Operating LP 7.1% 6/23/04	Baa1	1,130,000		1,171,482
iStar Financial, Inc. 8.75% 8/15/08	Ba1	215,000		216,075
LNR Property Corp.:
9.375% 3/15/08	Ba3	305,000		308,050
10.5% 1/15/09	Ba3	15,000		15,750
Meditrust Corp.:
7% 8/15/07	Ba3	70,000		66,150
7.82% 9/10/26	Ba3	525,000		525,000
MeriStar Hospitality Corp. 9% 1/15/08	Ba3	310,000		316,200
Senior Housing Properties Trust 8.625% 1/15/12	Ba2	420,000		434,700
Toll Corp. 8.25% 12/1/11	Ba2	330,000		331,650
				8,724,221
TOTAL FINANCIALS				66,881,046
HEALTH CARE - 0.8%
Health Care Providers & Services - 0.7%
AdvancePCS 8.5% 4/1/08	B1	655,000		694,300
Alderwoods Group, Inc.:
11% 1/2/07	-	110,000		111,100
12.25% 1/2/09	-	60,000		64,725
Beverly Enterprises, Inc.:
9% 2/15/06	B1	30,000		29,850
9.625% 4/15/09	B1	55,000		56,375
Columbia/HCA Healthcare Corp. 6.73% 7/15/45	Ba1	255,000		257,550
DaVita, Inc. 9.25% 4/15/11	B2	305,000		356,850
Dynacare, Inc. yankee 10.75% 1/15/06	B2	145,000		150,075
Express Scripts, Inc. 9.625% 6/15/09	Ba1	220,000		242,000
Hanger Orthopedic Group, Inc. 10.375% 2/15/09 (g)	B2	95,000		99,750
HCA, Inc.:
7.875% 2/1/11	Ba1	70,000		72,625
8.75% 9/1/10	Ba1	555,000		602,175
HealthSouth Corp. 6.875% 6/15/05	Ba1	100,000		99,500
Corporate Bonds - continued
Moody's Ratings (unaudited) (b)		Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
HEALTH CARE - continued
Health Care Providers & Services - continued
Owen & Minor, Inc. 8.5% 7/15/11	Ba3	$ 410,000		$ 428,450
Rotech Healthcare, Inc. 9.5% 4/1/12 (g)	B2	100,000		103,250
Service Corp. International (SCI):
6% 12/15/05	B1	370,000		338,550
6.3% 3/15/03	B1	70,000		67,200
7.375% 4/15/04	B1	820,000		807,700
Triad Hospitals Holdings, Inc. 11% 5/15/09	B2	505,000		563,075
Triad Hospitals, Inc. 8.75% 5/1/09	B1	655,000		694,300
Unilab Corp. 12.75% 10/1/09	B3	103,000		118,965
Vanguard Health Systems, Inc. 9.75% 8/1/11	B3	620,000		654,100
				6,612,465
Pharmaceuticals - 0.1%
aaiPharma, Inc. 11% 4/1/10 (g)	Caa1	290,000		290,000
Biovail Corp. 7.875% 4/1/10	B2	190,000		188,813
				478,813
TOTAL HEALTH CARE				7,091,278
INDUSTRIALS - 1.5%
Aerospace & Defense - 0.0%
Alliant Techsystems, Inc. 8.5% 5/15/11	B2	215,000		227,900
Sequa Corp. 8.875% 4/1/08	Ba3	240,000		230,400
				458,300
Airlines - 0.3%
AMR Corp. 9% 8/1/12	B1	60,000		58,200
Continental Airlines, Inc. 8% 12/15/05	B3	390,000		367,575
Delta Air Lines, Inc.:
6.65% 3/15/04	Ba3	240,000		232,800
7.7% 12/15/05	Ba3	245,000		236,425
7.9% 12/15/09	Ba3	350,000		332,500
8.3% 12/15/29	Ba3	455,000		386,750
Northwest Airlines, Inc.:
7.625% 3/15/05	B2	170,000		159,800
8.375% 3/15/04	B2	150,000		144,000
8.875% 6/1/06	B2	40,000		38,200
9.875% 3/15/07	B2	270,000		265,275
Corporate Bonds - continued
Moody's Ratings (unaudited) (b)		Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
INDUSTRIALS - continued
Airlines - continued
United Air Lines, Inc.:
9% 12/15/03	Caa1	$ 100,000		$ 83,500
10.67% 5/1/04	Caa1	20,000		15,400
				2,320,425
Building Products - 0.0%
American Standard, Inc.:
7.375% 2/1/08	Ba2	150,000		151,500
7.625% 2/15/10	Ba2	100,000		101,000
				252,500
Commercial Services & Supplies - 0.4%
Allied Waste North America, Inc.:
7.375% 1/1/04	Ba3	120,000		120,000
7.625% 1/1/06	Ba3	440,000		431,200
7.875% 1/1/09	Ba3	465,000		453,375
8.5% 12/1/08 (g)	Ba3	300,000		300,000
10% 8/1/09	B2	180,000		183,600
Browning-Ferris Industries, Inc. 6.375% 1/15/08	Ba3	260,000		236,600
Coinmach Corp. 9% 2/1/10 (g)	B2	350,000		362,250
Iron Mountain, Inc.:
8.625% 4/1/13	B2	505,000		522,675
8.75% 9/30/09	B2	430,000		445,050
Mail-Well I Corp. 9.625% 3/15/12 (g)	B1	200,000		206,000
Waste Management, Inc. 7.375% 8/1/10	Ba1	430,000		426,371
				3,687,121
Machinery - 0.4%
AGCO Corp.:
8.5% 3/15/06	B1	40,000		40,200
9.5% 5/1/08	Ba3	220,000		237,600
Dresser, Inc. 9.375% 4/15/11 (g)	B2	405,000		417,150
Dunlop Standard Aerospace Holdings PLC yankee 11.875% 5/15/09	B3	660,000		673,200
Joy Global, Inc. 8.75% 3/15/12 (g)	B2	70,000		72,100
Navistar International Corp. 9.375% 6/1/06	Ba1	370,000		390,350
Corporate Bonds - continued
Moody's Ratings (unaudited) (b)		Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
INDUSTRIALS - continued
Machinery - continued
Terex Corp.:
Series D, 8.875% 4/1/08	B2	$ 100,000		$ 101,500
8.875% 4/1/08	B2	220,000		224,400
Tyco International Group SA yankee 6.75% 2/15/11	Baa1	1,790,000		1,599,455
				3,755,955
Marine - 0.1%
Teekay Shipping Corp. 8.875% 7/15/11	Ba2	610,000		640,500
Road & Rail - 0.3%
CSX Corp.:
6.25% 10/15/08	Baa2	715,000		705,805
6.46% 6/22/05	Baa2	1,340,000		1,376,850
Kansas City Southern Railway Co. 9.5% 10/1/08	Ba2	90,000		97,200
TFM SA de CV yankee:
0% 6/15/09 (e)	B1	85,000		79,263
10.25% 6/15/07	B1	185,000		173,900
Williams Scotsman, Inc. 9.875% 6/1/07 (g)	B3	350,000		353,063
				2,786,081
TOTAL INDUSTRIALS				13,900,882
INFORMATION TECHNOLOGY - 1.0%
Communications Equipment - 0.4%
Avaya, Inc. 11.125% 4/1/09	Ba2	270,000		264,600
Crown Castle International Corp.:
9.375% 8/1/11	B3	630,000		529,200
9.5% 8/1/11	B3	90,000		75,600
10.75% 8/1/11	B3	300,000		267,000
L-3 Communications Corp.:
8% 8/1/08	Ba3	110,000		113,300
10.375% 5/1/07	Ba3	1,000,000		1,060,000
Motorola, Inc. 8% 11/1/11	A3	1,035,000		1,044,481
				3,354,181
Corporate Bonds - continued
Moody's Ratings (unaudited) (b)		Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
INFORMATION TECHNOLOGY - continued
Computers & Peripherals - 0.1%
Compaq Computer Corp.:
7.45% 8/1/02	Baa2	$ 670,000		$ 676,110
7.65% 8/1/05	Baa2	530,000		544,755
				1,220,865
Electronic Equipment & Instruments - 0.2%
Fisher Scientific International, Inc. 9% 2/1/08	B3	610,000		632,875
Flextronics International Ltd. yankee:
8.75% 10/15/07	Ba2	365,000		372,300
9.875% 7/1/10	Ba2	440,000		470,800
Ingram Micro, Inc. 9.875% 8/15/08	Ba2	260,000		274,300
Millipore Corp. 7.5% 4/1/07	Ba1	30,000		27,900
Solectron Corp. 9.625% 2/15/09	Ba1	220,000		218,350
				1,996,525
Internet Software & Services - 0.1%
Qwest Corp. 8.875% 3/15/12 (g)	Baa2	900,000		887,310
IT Consulting & Services - 0.1%
Unisys Corp.:
7.875% 4/1/08	Ba1	235,000		235,588
8.125% 6/1/06	Ba1	410,000		418,200
				653,788
Office Electronics - 0.0%
Mediacom LLC/Mediacom Capital Corp. 9.5% 1/15/13	B2	170,000		175,950
Semiconductor Equipment & Products - 0.1%
Amkor Technology, Inc.:
9.25% 5/1/06	B1	370,000		367,225
9.25% 2/15/08	B1	170,000		167,450
Fairchild Semiconductor Corp.:
10.375% 10/1/07	B2	250,000		266,875
10.5% 2/1/09	B2	80,000		88,000
				889,550
TOTAL INFORMATION TECHNOLOGY				9,178,169
Corporate Bonds - continued
Moody's Ratings (unaudited) (b)		Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
MATERIALS - 1.2%
Chemicals - 0.3%
Foamex LP/Foamex Capital Corp. 10.75% 4/1/09 (g)	B3	$ 160,000		$ 163,200
Georgia Gulf Corp. 10.375% 11/1/07	B2	305,000		323,300
Huntsman International LLC 9.875% 3/1/09 (g)	B3	230,000		233,450
IMC Global, Inc.:
10.875% 6/1/08	Ba1	60,000		66,300
11.25% 6/1/11	Ba1	70,000		77,350
International Specialty Holdings, Inc. 10.625% 12/15/09 (g)	B2	300,000		309,750
Lyondell Chemical Co.:
9.625% 5/1/07	Ba3	80,000		81,400
9.875% 5/1/07	Ba3	305,000		311,100
Methanex Corp. yankee:
7.4% 8/15/02	Ba1	55,000		55,000
7.75% 8/15/05	Ba1	425,000		416,500
OM Group, Inc. 9.25% 12/15/11 (g)	B3	480,000		502,800
Quaker State Corp. 6.625% 10/15/05	Ba2	210,000		215,775
				2,755,925
Containers & Packaging - 0.3%
Applied Extrusion Technologies, Inc. 10.75% 7/1/11	B2	310,000		328,600
Graphic Packaging Corp. 8.625% 2/15/12 (g)	B2	70,000		72,450
Owens-Brockway Glass Container, Inc. 8.875% 2/15/09 (g)	B2	750,000		763,125
Owens-Illinois, Inc.:
7.15% 5/15/05	B3	50,000		48,250
7.35% 5/15/08	B3	40,000		36,700
7.5% 5/15/10	B3	50,000		45,000
7.8% 5/15/18	B3	370,000		306,175
7.85% 5/15/04	B3	70,000		68,075
8.1% 5/15/07	B3	70,000		66,850
Riverwood International Corp.:
10.25% 4/1/06	B-	555,000		574,425
10.625% 8/1/07	B3	140,000		148,050
Sealed Air Corp.:
6.95% 5/15/09 (g)	Baa3	310,000		288,300
8.75% 7/1/08 (g)	Baa3	110,000		113,300
				2,859,300
Corporate Bonds - continued
Moody's Ratings (unaudited) (b)		Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
MATERIALS - continued
Metals & Mining - 0.3%
AK Steel Corp.:
7.875% 2/15/09	B1	$ 170,000		$ 170,000
9.125% 12/15/06	B1	30,000		31,050
Century Aluminum Co. 11.75% 4/15/08	Ba3	425,000		450,500
Luscar Coal Ltd. 9.75% 10/15/11 (g)	Ba3	110,000		118,250
P&L Coal Holdings Corp. 9.625% 5/15/08	B1	1,080,000		1,152,900
Phelps Dodge Corp.:
7.125% 11/1/27	Baa3	240,000		175,200
8.75% 6/1/11	Baa3	470,000		467,650
9.5% 6/1/31	Baa3	150,000		142,500
Steel Dynamics, Inc. 9.5% 3/15/09 (g)	B2	120,000		123,600
				2,831,650
Paper & Forest Products - 0.3%
Container Corp. of America 9.75% 4/1/03	B2	50,000		51,500
Georgia-Pacific Group:
7.5% 5/15/06	Baa3	30,000		29,325
8.125% 5/15/11	Baa3	60,000		58,800
8.875% 5/15/31	Baa3	110,000		102,300
Louisiana-Pacific Corp.:
8.5% 8/15/05	Ba1	110,000		113,300
10.875% 11/15/08	Ba2	80,000		85,600
Norske Skog Canada Ltd. 8.625% 6/15/11 (g)	Ba2	30,000		30,600
Stone Container Corp. 9.75% 2/1/11	B2	255,000		275,400
Weyerhaeuser Co.:
6.125% 3/15/07 (g)	Baa2	570,000		565,070
7.375% 3/15/32 (g)	Baa2	1,520,000		1,444,760
				2,756,655
TOTAL MATERIALS				11,203,530
TELECOMMUNICATION SERVICES - 2.6%
Diversified Telecommunication Services - 2.0%
AT&T Corp.:
6.5% 3/15/29	A3	2,620,000		2,164,199
7.3% 11/15/11 (g)	A3	1,150,000		1,110,509
8% 11/15/31 (g)	A3	380,000		373,238
British Telecommunications PLC 8.875% 12/15/30	Baa1	530,000		602,393
Corporate Bonds - continued
Moody's Ratings (unaudited) (b)		Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
TELECOMMUNICATION SERVICES - continued
Diversified Telecommunication Services - continued
Cable & Wireless Optus Finance Property Ltd. 8% 6/22/10 (g)	A2	$ 950,000		$ 1,015,151
Centennial Cellular Operating Co. LLC/Centennial Finance Corp. 10.75% 12/15/08	B3	535,000		288,900
Cincinnati Bell Telephone Co. 6.3% 12/1/28	Ba1	800,000		540,000
Citizens Communications Co.:
8.5% 5/15/06	Baa2	785,000		817,059
9.25% 5/15/11	Baa2	535,000		573,648
Insight Midwest LP/Insight Capital, Inc. 10.5% 11/1/10	B1	575,000		618,125
Koninklijke KPN NV yankee:
7.5% 10/1/05	Baa3	620,000		629,120
8% 10/1/10	Baa3	1,280,000		1,301,146
Price Communications Wireless, Inc.:
9.125% 12/15/06	Baa2	530,000		551,200
11.75% 7/15/07	Baa3	210,000		224,175
Telecomunicaciones de Puerto Rico, Inc.:
6.15% 5/15/02	Baa1	2,100,000		2,105,901
6.65% 5/15/06	Baa1	1,560,000		1,544,868
Telefonos de Mexico SA de CV 8.25% 1/26/06	Baa1	1,580,000		1,660,975
Teleglobe Canada, Inc. yankee:
7.2% 7/20/09	Baa3	620,000		279,000
7.7% 7/20/29	Baa3	90,000		37,800
TELUS Corp. yankee 8% 6/1/11	Baa2	1,000,000		1,025,900
Tritel PCS, Inc. 10.375% 1/15/11	B3	100,000		112,000
Triton PCS, Inc.:
8.75% 11/15/11	B2	220,000		206,800
9.375% 2/1/11	B3	275,000		266,750
Verizon New York, Inc. 7.375% 4/1/32	A1	385,000		380,234
				18,429,091
Wireless Telecommunication Services - 0.6%
American Tower Corp. 9.375% 2/1/09	B3	200,000		148,000
AT&T Wireless Services, Inc. 8.75% 3/1/31	Baa2	1,165,000		1,196,537
Echostar Broadband Corp. 10.375% 10/1/07	B1	625,000		670,313
Nextel Communications, Inc. 0% 10/31/07 (e)	B1	1,120,000		700,000
PanAmSat Corp.:
6% 1/15/03	Ba2	50,000		49,750
6.125% 1/15/05	Ba2	170,000		166,600
Corporate Bonds - continued
Moody's Ratings (unaudited) (b)		Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
TELECOMMUNICATION SERVICES - continued
Wireless Telecommunication Services - continued
PanAmSat Corp.: - continued
6.375% 1/15/08	Ba2	$ 200,000		$ 194,000
8.5% 2/1/12 (g)	Ba3	190,000		189,050
Rogers Wireless, Inc. 9.625% 5/1/11	Baa3	225,000		209,250
VoiceStream Wireless Corp.:
0% 11/15/09 (e)	Baa1	284,000		238,560
10.375% 11/15/09	Baa1	1,292,000		1,408,280
				5,170,340
TOTAL TELECOMMUNICATION SERVICES				23,599,431
UTILITIES - 1.7%
Electric Utilities - 1.2%
Avon Energy Partners Holdings:
6.46% 3/4/08 (g)	Baa2	1,160,000		1,096,188
6.73% 12/11/02 (g)	Baa2	1,340,000		1,356,375
CMS Energy Corp.:
6.75% 1/15/04	Ba3	290,000		290,000
7.5% 1/15/09	Ba3	370,000		364,450
8.375% 7/1/03	Ba3	305,000		308,050
8.9% 7/15/08	Ba3	440,000		457,600
9.875% 10/15/07	Ba3	440,000		477,400
Constellation Energy Group, Inc. 6.35% 4/1/07	Baa1	660,000		656,311
FirstEnergy Corp. 6.45% 11/15/11	Baa2	1,310,000		1,213,931
Illinois Power Co. 7.5% 6/15/09	Baa2	580,000		585,957
Israel Electric Corp. Ltd.:
7.75% 12/15/27 (g)	A3	590,000		518,138
7.875% 12/15/26 (g)	A3	145,000		129,318
Orion Power Holdings, Inc. 12% 5/1/10	Ba3	865,000		1,007,725
Pacific Gas & Electric Co.:
6.25% 8/1/03	B3	185,000		183,150
6.25% 3/1/04	B3	375,000		371,250
7.375% 11/1/05 (d)(g)	Caa2	410,000		448,950
8.25% 11/1/22	B3	340,000		328,100
PSI Energy, Inc. 6.65% 6/15/06	A3	725,000		720,433
Southern California Edison Co.:
5.625% 10/1/02	Ba2	110,000		108,900
6.25% 6/15/03	Ba2	25,000		24,500
Corporate Bonds - continued
Moody's Ratings (unaudited) (b)		Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
UTILITIES - continued
Electric Utilities - continued
Southern California Edison Co.: - continued
8.95% 11/3/03	Ba3	$ 60,000		$ 61,200
Texas Utilities Co. 6.375% 1/1/08	Baa3	115,000		112,161
				10,820,087
Gas Utilities - 0.3%
Consolidated Natural Gas Co. 6.85% 4/15/11	A3	270,000		268,137
El Paso Energy Corp. 7.75% 1/15/32	Baa2	435,000		421,754
Kinder Morgan Energy Partners LP 7.125% 3/15/12	Baa1	420,000		412,552
Reliant Energy Resources Corp. 8.125% 7/15/05	Baa2	750,000		770,978
Sempra Energy 7.95% 3/1/10	A2	375,000		382,856
Southwest Gas Corp. 9.75% 6/15/02	Baa2	300,000		301,665
				2,557,942
Multi-Utilities - 0.2%
Williams Companies, Inc.:
7.125% 9/1/11	Baa2	1,140,000		1,081,974
7.5% 1/15/31	Baa2	1,140,000		1,027,015
				2,108,989
TOTAL UTILITIES				15,487,018
TOTAL NONCONVERTIBLE BONDS				220,997,741
TOTAL CORPORATE BONDS (Cost $227,173,260)			228,909,834
U.S. Government and Government Agency Obligations - 8.8%

U.S. Government Agency Obligations - 1.4%
Fannie Mae:
5.5% 2/15/06	Aaa	920,000		936,639
5.5% 5/2/06	Aa2	1,695,000		1,705,972
6.25% 2/1/11	Aa2	815,000		812,524
6.75% 7/30/07	Aaa	2,160,000		2,191,687
7.25% 5/15/30	Aaa	1,600,000		1,743,277
Freddie Mac 5.875% 3/21/11	Aa2	1,200,000		1,165,042
U.S. Government and Government Agency Obligations - continued
Moody's Ratings (unaudited) (b)		Principal Amount		Value (Note 1)
U.S. Government Agency Obligations - continued
Government Loan Trusts (assets of Trust guaranteed by U.S. Government through Agency for International Development) Series 1-B, 8.5% 4/1/06	Aaa	$ 3,018,242		$ 3,290,669
Government Trust Certificates (assets of Trust guaranteed by U.S. Government through Defense Security Assistance Agency) Series T-3, 9.625% 5/15/02	Aaa	1,340		1,351
Israel Export Trust Certificates (assets of Trust guaranteed by U.S. Government through Export-Import Bank) Series 1994-1, 6.88% 1/26/03	Aaa	76,471		78,323
Private Export Funding Corp. secured 6.86% 4/30/04	Aaa	341,250		353,605
U.S. Department of Housing and Urban Development government guaranteed participation certificates Series 1996-A, 7.63% 8/1/14	Aaa	1,000,000		1,029,340
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS				13,308,429
U.S. Treasury Obligations - 7.4%
U.S. Treasury Bonds:
6.375% 8/15/27	Aaa	8,240,000		8,601,785
8.125% 8/15/19	Aaa	7,310,000		8,950,466
8.875% 8/15/17	Aaa	550,000		709,328
9.875% 11/15/15	Aaa	305,000		418,589
11.25% 2/15/15	Aaa	750,000		1,116,680
11.75% 2/15/10 (callable)	Aaa	8,500,000		10,176,761
12% 8/15/13	Aaa	3,015,000		4,090,978
U.S. Treasury Notes:
3.5% 11/15/06	Aaa	1,370,000		1,295,720
3.625% 8/31/03	Aaa	2,800,000		2,816,514
6.5% 2/15/10	Aaa	185,000		198,080
7% 7/15/06	Aaa	24,765,000		26,857,444
7.25% 8/15/04	Aaa	110,000		118,147
7.875% 11/15/04	Aaa	2,300,000		2,513,019
TOTAL U.S. TREASURY OBLIGATIONS				67,863,511
TOTAL U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS (Cost $81,389,579)			81,171,940
U.S. Government Agency - Mortgage Securities - 15.1%
Moody's Ratings (unaudited) (b)		Principal Amount		Value (Note 1)
Fannie Mae - 11.9%
5.5% 1/1/32 to 2/1/32	Aaa	$ 1,755,000		$ 1,647,586
6% 4/1/09 to 3/1/32	Aaa	19,184,157		18,827,287
6.5% 9/1/25 to 8/1/31	Aaa	31,752,029		31,765,049
6.5% 4/1/32 (h)	Aaa	30,105,000		29,907,436
7% 12/1/25 to 6/1/29	Aaa	11,322,510		11,578,981
7% 4/1/32 (h)	Aaa	3,803,505		3,873,632
7.5% 10/1/09 to 12/1/30	Aaa	6,871,967		7,131,746
8% 11/1/24 to 10/1/28	Aaa	4,406,537		4,664,800
11.5% 11/1/15	Aaa	120,119		135,173
TOTAL FANNIE MAE				109,531,690
Freddie Mac - 0.2%
7.5% 8/1/28 to 11/1/30	Aaa	1,401,940		1,454,210
8.5% 3/1/22 to 5/1/22	Aaa	14,553		15,700
12% 11/1/19	Aaa	57,954		65,269
TOTAL FREDDIE MAC				1,535,179
Government National Mortgage Association - 3.0%
6.5% 11/15/08 to 2/15/32	Aaa	10,060,609		10,142,677
7% 3/15/28 to 9/15/31	Aaa	12,007,943		12,259,658
7.5% 5/15/22 to 8/15/28	Aaa	2,709,481		2,841,027
8.5% 8/15/30 to 1/15/31	Aaa	2,069,490		2,206,828
TOTAL GOVERNMENT NATIONAL MORTGAGE ASSOCIATION				27,450,190
TOTAL U.S. GOVERNMENT AGENCY - MORTGAGE SECURITIES (Cost $136,572,564)			138,517,059
Asset-Backed Securities - 0.7%

BankAmerica Manufacturing Housing Contract Trust V 6.2% 4/10/09	Aaa	769,280		771,203
CIT Marine Trust 5.8% 4/15/10	Aaa	1,134,139		1,153,278
CSXT Trade Receivables Master Trust 6% 7/26/04	Aaa	1,200,000		1,226,250
DaimlerChrysler Auto Trust 5.16% 1/6/05	Aaa	1,360,000		1,387,710
Ford Credit Auto Owner Trust:
5.71% 9/15/05	A1	405,000		413,290
7.03% 11/15/03	Aaa	194,000		195,213
Asset-Backed Securities - continued
Moody's Ratings (unaudited) (b)		Principal Amount		Value (Note 1)
Household Private Label Credit Card Master Trust I 5.5% 1/18/11	Aaa	$ 550,000		$ 549,615
Northwest Airlines pass thru trust certificate 9.179% 10/1/11	Ba2	77,367		72,725
Railcar Trust 7.75% 6/1/04	Aaa	15,411		16,133
Sears Credit Account Master Trust II 7.5% 11/15/07	A2	750,000		789,316
UAF Auto Grantor Trust 6.1% 1/15/03 (g)	Aaa	144,578		144,578
TOTAL ASSET-BACKED SECURITIES (Cost $6,594,023)			6,719,311
Collateralized Mortgage Obligations - 0.4%

U.S. Government Agency - 0.4%
Fannie Mae:
REMIC planned amortization class:
Series 1999-54 Class PH, 6.5% 11/18/29	Aaa	900,000		880,413
Series 1999-57 Class PH, 6.5% 12/25/29	Aaa	800,000		767,988
sequential pay Series 2000-49 Class A, 8% 3/18/27	Aaa	1,386,909		1,474,249
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $2,963,801)			3,122,650
Commercial Mortgage Securities - 2.1%

Asset Securitization Corp. sequential pay Series 1995-MD4 Class A1, 7.1% 8/13/29	AAA	2,149,340		2,248,691
Banc America Commercial Mortgage, Inc. Series 2001-1 Class X, 1.0909% 4/15/36 (i)(j)	Aaa	15,939,239		977,523
CBM Funding Corp. sequential pay Series 1996-1:
Class A2, 6.88% 7/1/02	AA	108,372		108,749
Class A3PI, 7.08% 11/1/07	AA	870,000		903,305
Class B, 7.48% 2/1/08	A	680,000		703,189
Chase Manhatten Bank-First Union National Bank Commercial Mortgage Trust sequential pay Series 1999-1 Class A2, 7.439% 8/15/31	Aaa	515,000		547,027
COMM Series 1999-1 Class A2, 6.455% 9/15/08	Aaa	450,000		458,823
Commercial Mortgage Securities - continued
Moody's Ratings (unaudited) (b)		Principal Amount		Value (Note 1)
CS First Boston Mortgage Securities Corp.:
Series 1997-C2 Class D, 7.27% 1/17/35	Baa2	$ 1,570,000		$ 1,575,060
Series 1998-C1 Class D, 7.17% 1/17/12	Baa3	880,000		845,368
Deutsche Mortgage & Asset Receiving Corp. sequential pay Series 1998-C1 Class D, 7.231% 7/15/12	Baa2	1,320,000		1,237,500
Equitable Life Assurance Society of the United States Series 174:
Class B1, 7.33% 5/15/06 (g)	Aa2	1,000,000		1,045,313
Class C1, 7.52% 5/15/06 (g)	A2	700,000		731,500
G Force CDO 2001 Ltd./G Force CDO 2001 1 Corp. Series 2001-1A Class E, 8.8% 1/20/12 (g)	BBB-	770,398		731,878
GS Mortgage Securities Corp. II Series 1998-GLII Class E, 6.97% 4/13/31 (i)	Baa3	1,420,000		1,340,125
LB-UBS Commercial Mortgage Trust sequential pay Series 2001-C3 Class A1, 6.058% 6/15/20	AAA	1,654,670		1,667,157
LTC Commercial Mortgage pass thru trust certificate sequential pay Series 1998-1 Class A, 6.029% 5/30/30 (g)	AAA	875,442		882,418
Structured Asset Securities Corp. Series 1996-CFL Class E, 7.75% 2/25/28	AAA	640,000		654,300
Thirteen Affiliates of General Growth Properties, Inc.:
sequential pay Series 1 Class A2, 6.602% 12/15/10 (g)	Aaa	1,150,000		1,165,813
Series 1:
Class D2, 6.992% 12/15/10 (g)	Baa2	1,100,000		1,090,375
Class E2, 7.224% 12/15/10 (g)	Baa3	660,000		650,925
TOTAL COMMERCIAL MORTGAGE SECURITIES (Cost $19,969,537)			19,565,039
Foreign Government and Government Agency Obligations (k) - 0.2%

Chilean Republic 7.125% 1/11/12	Baa1	570,000		584,963
United Mexican States 7.5% 1/14/12	Baa2	1,130,000		1,126,610
TOTAL FOREIGN GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS (Cost $1,675,158)			1,711,573
Supranational Obligations - 0.1%
Moody's Ratings (unaudited) (b)		Principal Amount		Value (Note 1)
Corporacion Andina de Fomento 6.875% 3/15/12 (g) (Cost $415,509)	A2	$ 420,000		$ 416,747

Money Market Funds - 31.2%
	Shares
Fidelity Cash Central Fund, 1.86% (c)	146,641,518		146,641,518
Fidelity Money Market Central Fund, 2.05% (c)	140,550,134		140,550,134
TOTAL MONEY MARKET FUNDS (Cost $287,191,652)		287,191,652
Cash Equivalents - 0.0%
	Maturity Amount
Investments in repurchase agreements (U.S. Treasury Obligations), in a joint trading account at 1.78%, dated 3/29/02 due 4/1/02 (Cost $61,000)	$ 61,009		61,000
TOTAL INVESTMENT PORTFOLIO - 103.5% (Cost $940,535,734)			952,025,693
NET OTHER ASSETS - (3.5)%			(32,357,864)
NET ASSETS - 100%		$ 919,667,829