UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-3010
Fidelity Advisor Series VII
(Exact name of registrant as specified in charter)
245 Summer St., Boston, Massachusetts 02210
(Address of principal executive offices) (Zip code)
Marc Bryant Secretary
245 Summer St.
Boston, Massachusetts 02210
(Name and address of agent for service)
Registrant's telephone number, including area code:
617-563-7000
Date of fiscal year end: | July 31 |
|
|
Date of reporting period: | July 31, 2016 |
Item 1.
Reports to Stockholders
|
Fidelity Advisor Focus Funds® Fidelity Advisor® Biotechnology Fund Fidelity Advisor® Communications Equipment Fund Fidelity Advisor® Consumer Discretionary Fund Fidelity Advisor® Electronics Fund Fidelity Advisor® Energy Fund Fidelity Advisor® Financial Services Fund Fidelity Advisor® Health Care Fund Fidelity Advisor® Industrials Fund Fidelity Advisor® Technology Fund Fidelity Advisor® Utilities Fund Annual Report July 31, 2016 |
 |
Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2016 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Funds. This report is not authorized for distribution to prospective investors in the Funds unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Funds nor Fidelity Distributors Corporation is a bank.
Fidelity Advisor® Biotechnology Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended July 31, 2016 | Past 1 year | Past 5 years | Past 10 years |
| Class A (incl. 5.75% sales charge) | (32.65)% | 21.22% | 13.77% |
| Class T (incl. 3.50% sales charge) | (31.24)% | 21.41% | 13.72% |
| Class C (incl. contingent deferred sales charge) | (29.74)% | 21.74% | 13.60% |
| Class I | (28.32)% | 23.02% | 14.80% |
Class C shares' contingent deferred sales charges included in the past one year, past five years and past ten years total return figures are 1%, 0% and 0%, respectively.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Biotechnology Fund - Class A on July 31, 2006, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
| Period Ending Values | ||
|
| $36,340 | Fidelity Advisor® Biotechnology Fund - Class A |
|
| $21,089 | S&P 500® Index |
Fidelity Advisor® Biotechnology Fund
Management's Discussion of Fund Performance
Market Recap: U.S. equities gained modestly for the year ending July 31, 2016, overcoming persistent concern about global economic growth, uncertainty regarding U.S. monetary policy and the U.K.’s late-June vote to leave the European Union, dubbed Brexit. The S&P 500® index rose 5.61%, with larger-cap, value-oriented stocks and defensive sectors shining brightest. Volatility peaked in the early weeks of 2016, as continued oil-price weakness and U.S.-dollar strength pushed the S&P 500® to its worst January since 2009. Markets then rose beginning in February amid U.S. job gains, a broad rally in energy and materials markets, global economic stimulus and perceived softening of monetary policy by the U.S. Federal Reserve. The June 23 Brexit vote surprised markets and resulted in a sharp two-day decline for stocks, followed by a rebound as investor sentiment shifted and remained positive through July 31. For the year, dividend-rich telecom services (+26%), utilities (+23%) and consumer staples (+12%) led the way amid strong investor demand for yield. Industrials (+10%) and information technology (+10%) also outperformed, as did materials (+8%), despite a weak commodities environment overall. Conversely, a strong run for real estate stocks couldn’t keep financials (-4%) from losing ground, as low interest rates continued to squeeze bank profits. Comments from Portfolio Manager Rajiv Kaul: For the year, the fund’s share classes (excluding sales charges, if applicable) finished about 9 percentage points behind the -19.93% return of the industry benchmark, the MSCI U.S. IMI Biotechnology 25/50 Index. It also finished well behind the broad-market S&P 500®. Small- and mid-cap biotech companies with emerging drug portfolios that were favored in the fund trailed the larger companies that dominated the index. During the period, biotechnology was hurt by calls for tighter regulation of drug pricing, coupled with some negative clinical outcomes and a generally more defensive investor mindset. Stock selection in biotechnology accounted for nearly all of the fund’s underperformance, while non-benchmark exposure in pharmaceuticals and several other groups further detracted. Versus the MSCI industry benchmark, the fund's two largest detractors were our underweightings in outperforming benchmark components Amgen and AbbVie. For a while the fund held a modest position in hemophilia specialist Baxalta, another index name that hampered relative results. I liquidated the position in August 2015, shortly after the company received a buyout offer and its shares spiked higher. The sale seemed timely: Baxalta rebuffed the initial offer and its shares trended lower. Unfortunately for the fund, Baxalta’s shares rebounded on news of a revised deal, which closed in June. We missed this advance when I did not repurchase the stock after closing the position in August. On the plus side, the fund’s top relative contributor was a non-benchmark stake in Denmark-based Genmab, whose share price nearly doubled this period. The company received early U.S. approval for Darzalex®, a new drug for treating bone-marrow cancer, with its stock price bolstered further upon subsequent positive clinical results. I reduced the fund’s share count here by roughly a third to nail down profits. Elsewhere, the fund benefited from positions in two non-benchmark stocks purchased while the companies were still private and that did well after they went public: Myokardia and Dermira. The former has a heart medicine that tested well in early trials, while Dermira, a specialist in skin treatments, announced the start of a phase 3 program to test Cimzia®, its psoriasis medication.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Fidelity Advisor® Biotechnology Fund
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Regeneron Pharmaceuticals, Inc. | 7.7 | 5.5 |
| Biogen, Inc. | 7.0 | 6.5 |
| Celgene Corp. | 7.0 | 6.1 |
| Gilead Sciences, Inc. | 6.0 | 4.7 |
| Alexion Pharmaceuticals, Inc. | 5.9 | 6.2 |
| Vertex Pharmaceuticals, Inc. | 4.5 | 4.0 |
| BioMarin Pharmaceutical, Inc. | 3.5 | 3.8 |
| Incyte Corp. | 2.7 | 3.1 |
| Medivation, Inc. | 1.8 | 1.7 |
| Seattle Genetics, Inc. | 1.7 | 1.2 |
| 47.8 |
Top Industries (% of fund's net assets)
| As of July 31, 2016 | ||
| Biotechnology | 88.3% | |
| Pharmaceuticals | 10.2% | |
| Health Care Equipment & Supplies | 0.2% | |
| Health Care Technology | 0.2% | |
| Health Care Providers & Services | 0.1% | |
| All Others* | 1.0% | |
| As of January 31, 2016 | ||
| Biotechnology | 86.9% | |
| Pharmaceuticals | 12.3% | |
| Health Care Equipment & Supplies | 0.3% | |
| Capital Markets | 0.1% | |
| Health Care Providers & Services | 0.1% | |
| All Others* | 0.3% | |
* Includes Short-Term investments and Net Other Assets (Liabilities).
Fidelity Advisor® Biotechnology Fund
Investments July 31, 2016
Showing Percentage of Net Assets
| Common Stocks - 97.5% | |||
| Shares | Value | ||
| Biotechnology - 87.0% | |||
| Biotechnology - 87.0% | |||
| AbbVie, Inc. (a) | 64,935 | $3,870,581 | |
| ACADIA Pharmaceuticals, Inc. (b)(c) | 499,986 | 18,519,481 | |
| Acceleron Pharma, Inc. (b) | 594,191 | 20,154,959 | |
| Achillion Pharmaceuticals, Inc. (b) | 937,182 | 7,759,867 | |
| Acorda Therapeutics, Inc. (b) | 316,753 | 8,007,516 | |
| Actelion Ltd. | 129,712 | 23,006,080 | |
| Adamas Pharmaceuticals, Inc. (b)(c) | 910,248 | 13,744,745 | |
| Adaptimmune Therapeutics PLC sponsored ADR (b) | 823,742 | 6,688,785 | |
| ADMA Biologics, Inc. (b) | 50,300 | 394,855 | |
| Aduro Biotech, Inc. (b)(c) | 185,318 | 2,720,468 | |
| Aduro Biotech, Inc. (a) | 345,762 | 5,075,786 | |
| Advanced Accelerator Applications SA sponsored ADR | 36,600 | 1,145,214 | |
| Adverum Biotechnologies, Inc. (b) | 125,129 | 452,967 | |
| Aegerion Pharmaceuticals, Inc. (b)(c) | 978,823 | 1,409,505 | |
| Agenus, Inc. (b)(c) | 487,360 | 2,704,848 | |
| Agenus, Inc. warrants 1/9/18 (b) | 452,000 | 4,402 | |
| Agios Pharmaceuticals, Inc. (b) | 42,471 | 1,920,963 | |
| Aimmune Therapeutics, Inc. (b)(c) | 285,941 | 3,428,433 | |
| Aimmune Therapeutics, Inc. (a) | 460,107 | 5,516,683 | |
| Akebia Therapeutics, Inc. (b) | 228,277 | 2,043,079 | |
| Alder Biopharmaceuticals, Inc. (b)(c) | 724,713 | 23,263,287 | |
| Aldeyra Therapeutics, Inc. (b)(c) | 586,559 | 3,607,338 | |
| Alexion Pharmaceuticals, Inc. (b) | 1,282,615 | 164,944,289 | |
| Alkermes PLC (b) | 393,503 | 19,635,800 | |
| Alnylam Pharmaceuticals, Inc. (b) | 233,035 | 15,865,023 | |
| AMAG Pharmaceuticals, Inc. (b)(c) | 847,577 | 22,486,218 | |
| Amarin Corp. PLC ADR (b)(c) | 381,894 | 1,012,019 | |
| Amgen, Inc. | 37,161 | 6,392,807 | |
| Amicus Therapeutics, Inc. (b)(c) | 892,770 | 5,999,414 | |
| Applied Genetic Technologies Corp. (b) | 178,436 | 2,681,893 | |
| Ardelyx, Inc. (b)(c) | 975,301 | 10,416,215 | |
| ARIAD Pharmaceuticals, Inc. (b)(c) | 512,428 | 4,873,190 | |
| Array BioPharma, Inc. (b) | 378,104 | 1,414,109 | |
| Ascendis Pharma A/S sponsored ADR (b) | 35,700 | 514,080 | |
| Asterias Biotherapeutics, Inc. (c) | 115,938 | 346,655 | |
| Asterias Biotherapeutics, Inc. warrants 9/30/16 (b)(c) | 23,187 | 5,333 | |
| Atara Biotherapeutics, Inc. (b)(c) | 564,048 | 13,537,152 | |
| aTyr Pharma, Inc. (b) | 45,620 | 155,564 | |
| aTyr Pharma, Inc. (a) | 55,238 | 188,362 | |
| Audentes Therapeutics, Inc. | 72,600 | 1,068,672 | |
| Axovant Sciences Ltd. (b) | 146,461 | 2,167,623 | |
| Bellicum Pharmaceuticals, Inc. (b)(c) | 99,902 | 1,586,444 | |
| Biogen, Inc. (b) | 670,947 | 194,527,664 | |
| BioMarin Pharmaceutical, Inc. (b) | 988,290 | 98,255,792 | |
| BioTime, Inc. warrants 10/1/18 (b) | 2 | 1 | |
| bluebird bio, Inc. (b) | 35,449 | 2,026,974 | |
| Blueprint Medicines Corp. (b) | 313,700 | 6,935,907 | |
| Calithera Biosciences, Inc. (b)(c) | 75,858 | 240,470 | |
| Catabasis Pharmaceuticals, Inc. (b)(c) | 138,100 | 530,304 | |
| Catalyst Pharmaceutical Partners, Inc.: | |||
| warrants 5/2/17 (b) | 8,557 | 145 | |
| warrants 5/30/17 (b) | 17,900 | 850 | |
| Celgene Corp. (b) | 1,731,990 | 194,311,958 | |
| Celldex Therapeutics, Inc. (b)(c) | 827,627 | 3,823,637 | |
| Cepheid, Inc. (b) | 51,400 | 1,815,962 | |
| Cerulean Pharma, Inc. (b)(c) | 680,642 | 1,967,055 | |
| Chiasma, Inc. (b)(c) | 29,900 | 79,235 | |
| Chiasma, Inc. (a) | 325,192 | 861,759 | |
| Chiasma, Inc. warrants | 81,298 | 58,709 | |
| Chimerix, Inc. (b) | 281,786 | 1,124,326 | |
| Cidara Therapeutics, Inc. (b) | 19,000 | 225,910 | |
| Cidara Therapeutics, Inc. (a) | 223,967 | 2,662,968 | |
| Clovis Oncology, Inc. (b)(c) | 108,332 | 1,546,981 | |
| Colucid Pharmaceuticals, Inc. (b) | 13,874 | 120,704 | |
| Corvus Pharmaceuticals, Inc. | 25,200 | 331,380 | |
| Corvus Pharmaceuticals, Inc. | 180,163 | 2,250,686 | |
| CTI BioPharma Corp. (b) | 26,193 | 8,775 | |
| Cytokinetics, Inc. (b) | 276,179 | 3,071,110 | |
| Cytokinetics, Inc. warrants 6/25/17 (b) | 244,500 | 242,444 | |
| CytomX Therapeutics, Inc. (a) | 64,961 | 653,508 | |
| DBV Technologies SA sponsored ADR (b) | 258,000 | 8,926,800 | |
| Dicerna Pharmaceuticals, Inc. (b) | 125,106 | 401,590 | |
| Dynavax Technologies Corp. (b)(c) | 298,419 | 4,604,605 | |
| Edge Therapeutics, Inc. (b) | 40,735 | 395,130 | |
| Editas Medicine, Inc. (c) | 165,012 | 4,244,109 | |
| Editas Medicine, Inc. | 53,545 | 1,363,406 | |
| Emergent BioSolutions, Inc. (b) | 77,655 | 2,592,900 | |
| Enanta Pharmaceuticals, Inc. (b) | 43,787 | 984,770 | |
| Epizyme, Inc. (b)(c) | 2,443,973 | 25,319,560 | |
| Esperion Therapeutics, Inc. (b)(c) | 151,103 | 1,640,979 | |
| Exact Sciences Corp. (b)(c) | 323,359 | 5,619,979 | |
| Exelixis, Inc. (b)(c) | 1,040,940 | 9,555,829 | |
| Fate Therapeutics, Inc. (b)(c) | 234,604 | 485,630 | |
| Fibrocell Science, Inc. (b) | 174,200 | 189,878 | |
| FibroGen, Inc. (b) | 74,322 | 1,421,780 | |
| Five Prime Therapeutics, Inc. (b) | 63,800 | 3,234,022 | |
| Foundation Medicine, Inc. (b)(c) | 36,000 | 841,320 | |
| Galapagos Genomics NV sponsored ADR (b) | 253,629 | 13,992,712 | |
| Genmab A/S (b) | 258,002 | 46,764,571 | |
| Genomic Health, Inc. (b) | 54,120 | 1,571,104 | |
| GenSight Biologics SA | 105,964 | 947,742 | |
| Geron Corp. (b)(c) | 4,760,774 | 12,758,874 | |
| Gilead Sciences, Inc. | 2,115,176 | 168,093,037 | |
| Global Blood Therapeutics, Inc. (b)(c) | 576,467 | 10,307,230 | |
| Halozyme Therapeutics, Inc. (b)(c) | 1,238,095 | 12,306,664 | |
| Heron Therapeutics, Inc. (b)(c) | 475,742 | 7,906,832 | |
| Histogenics Corp. (b) | 597,234 | 1,134,745 | |
| Ignyta, Inc. (b) | 362,172 | 1,995,568 | |
| Immune Design Corp. (b) | 68,300 | 523,861 | |
| ImmunoGen, Inc. (b)(c) | 549,734 | 1,528,261 | |
| Immunomedics, Inc. (b)(c) | 224,184 | 594,088 | |
| Incyte Corp. (b) | 844,179 | 76,153,388 | |
| Insys Therapeutics, Inc. (b)(c) | 191,294 | 2,993,751 | |
| Intellia Therapeutics, Inc. (c) | 157,502 | 2,979,938 | |
| Intellia Therapeutics, Inc. | 78,635 | 1,338,997 | |
| Intercept Pharmaceuticals, Inc. (b)(c) | 175,060 | 30,290,632 | |
| Intrexon Corp. (b)(c) | 141,908 | 3,594,530 | |
| Ionis Pharmaceuticals, Inc. (b) | 402,940 | 11,761,819 | |
| Ironwood Pharmaceuticals, Inc. Class A (b) | 571,851 | 8,080,255 | |
| Juno Therapeutics, Inc. (b) | 8,100 | 250,533 | |
| Juno Therapeutics, Inc. (a)(b) | 214,673 | 6,639,836 | |
| Karyopharm Therapeutics, Inc. (b)(c) | 1,159,016 | 8,553,538 | |
| Keryx Biopharmaceuticals, Inc. (b)(c) | 530,639 | 3,905,503 | |
| Kite Pharma, Inc. (b)(c) | 590,320 | 33,429,822 | |
| Kura Oncology, Inc. (b) | 921,702 | 3,806,629 | |
| La Jolla Pharmaceutical Co. (b) | 290,700 | 4,941,900 | |
| Lexicon Pharmaceuticals, Inc. (b)(c) | 727,537 | 11,873,404 | |
| Ligand Pharmaceuticals, Inc. Class B (b)(c) | 105,412 | 14,217,971 | |
| Lion Biotechnologies, Inc. (b) | 342,646 | 3,028,991 | |
| Loxo Oncology, Inc. (b)(c) | 426,121 | 10,959,832 | |
| Macrogenics, Inc. (b) | 566,002 | 17,314,001 | |
| MediciNova, Inc. (b)(c) | 520,480 | 3,226,976 | |
| Medivation, Inc. (b) | 784,209 | 50,181,534 | |
| Merrimack Pharmaceuticals, Inc. (b) | 559,932 | 3,247,606 | |
| MiMedx Group, Inc. (b)(c) | 175,513 | 1,314,592 | |
| Minerva Neurosciences, Inc. (b) | 1,660,580 | 18,432,438 | |
| Mirna Therapeutics, Inc. (b) | 254,090 | 1,084,964 | |
| Momenta Pharmaceuticals, Inc. (b) | 121,037 | 1,362,877 | |
| Myriad Genetics, Inc. (b) | 123,557 | 3,827,796 | |
| NantKwest, Inc. (b)(c) | 150,078 | 1,025,033 | |
| Neurocrine Biosciences, Inc. (b) | 669,028 | 33,605,276 | |
| NewLink Genetics Corp. (b)(c) | 52,479 | 555,228 | |
| Nivalis Therapeutics, Inc. (b) | 18,600 | 87,048 | |
| Novavax, Inc. (b)(c) | 2,767,531 | 20,258,327 | |
| Novelos Therapeutics, Inc. warrants 12/6/16 (b) | 137,600 | 1 | |
| OncoMed Pharmaceuticals, Inc. (b)(c) | 132,870 | 1,611,713 | |
| Ophthotech Corp. (b) | 647,737 | 41,610,625 | |
| Opko Health, Inc. (b)(c) | 160,459 | 1,596,567 | |
| Oragenics, Inc. (b) | 207,908 | 149,694 | |
| Osiris Therapeutics, Inc. (c) | 203,971 | 1,019,855 | |
| OvaScience, Inc. (b) | 171,745 | 865,595 | |
| Portola Pharmaceuticals, Inc. (b) | 495,288 | 12,857,676 | |
| Progenics Pharmaceuticals, Inc. (b)(c) | 459,170 | 2,686,145 | |
| ProQR Therapeutics BV (b) | 237,916 | 1,165,788 | |
| Proteon Therapeutics, Inc. (b)(c) | 27,059 | 216,472 | |
| Prothena Corp. PLC (b) | 128,634 | 7,081,302 | |
| PTC Therapeutics, Inc. (b)(c) | 72,400 | 432,228 | |
| Puma Biotechnology, Inc. (b) | 324,894 | 16,208,962 | |
| Radius Health, Inc. (b)(c) | 975,562 | 45,968,481 | |
| Raptor Pharmaceutical Corp. (b) | 799,023 | 4,706,245 | |
| Regeneron Pharmaceuticals, Inc. (b) | 507,017 | 215,543,062 | |
| REGENXBIO, Inc. (b) | 177,842 | 1,452,969 | |
| Regulus Therapeutics, Inc. (b)(c) | 265,221 | 946,839 | |
| Repligen Corp. (b) | 214,627 | 6,138,332 | |
| Retrophin, Inc. (b) | 446,427 | 8,004,436 | |
| Sage Therapeutics, Inc. (b) | 262,168 | 11,760,856 | |
| Sangamo Biosciences, Inc. (b) | 375,552 | 2,377,244 | |
| Sarepta Therapeutics, Inc. (b)(c) | 373,597 | 9,444,532 | |
| Seattle Genetics, Inc. (b) | 1,006,257 | 48,360,711 | |
| Selecta Biosciences, Inc. | 58,800 | 646,800 | |
| Seres Therapeutics, Inc. (b) | 237,191 | 2,594,870 | |
| Seres Therapeutics, Inc. (a) | 352,270 | 3,853,834 | |
| Spark Therapeutics, Inc. (b) | 314,145 | 18,201,561 | |
| Spectrum Pharmaceuticals, Inc. (b) | 338,247 | 2,323,757 | |
| Stemline Therapeutics, Inc. (b)(c) | 348,093 | 2,575,888 | |
| Syndax Pharmaceuticals, Inc. (c) | 136,100 | 1,690,362 | |
| Syndax Pharmaceuticals, Inc. | 276,047 | 3,257,079 | |
| Syros Pharmaceuticals, Inc. | 57,578 | 665,602 | |
| Syros Pharmaceuticals, Inc. | 62,568 | 650,957 | |
| TESARO, Inc. (b)(c) | 382,937 | 35,705,046 | |
| TG Therapeutics, Inc. (b)(c) | 1,053,096 | 6,223,797 | |
| Threshold Pharmaceuticals, Inc. (b) | 26,804 | 13,691 | |
| Tobira Therapeutics, Inc. (b)(c) | 156,150 | 673,007 | |
| Trevena, Inc. (b) | 286,767 | 1,798,029 | |
| Ultragenyx Pharmaceutical, Inc. (b) | 366,427 | 23,187,501 | |
| uniQure B.V. (b) | 49,229 | 357,895 | |
| United Therapeutics Corp. (b) | 108,594 | 13,140,960 | |
| Versartis, Inc. (b)(c) | 355,976 | 4,093,724 | |
| Vertex Pharmaceuticals, Inc. (b) | 1,286,819 | 124,821,443 | |
| Vical, Inc. (b) | 65,986 | 273,842 | |
| Vitae Pharmaceuticals, Inc. (b) | 826,902 | 8,806,506 | |
| Vital Therapies, Inc. (b) | 285,060 | 1,773,073 | |
| Voyager Therapeutics, Inc. (b)(c) | 1,016,525 | 14,983,579 | |
| Voyager Therapeutics, Inc. (a) | 282,352 | 4,161,868 | |
| Xencor, Inc. (b) | 357,308 | 6,767,414 | |
| Zafgen, Inc. (b)(c) | 1,356,174 | 4,122,769 | |
| 2,424,549,643 | |||
| Capital Markets - 0.1% | |||
| Asset Management & Custody Banks - 0.1% | |||
| RPI International Holdings LP (d) | 12,210 | 1,597,679 | |
| Health Care Equipment & Supplies - 0.2% | |||
| Health Care Equipment - 0.2% | |||
| Bellerophon Therapeutics, Inc. (b)(c) | 227,700 | 368,874 | |
| Novocure Ltd. (b)(c) | 136,518 | 1,026,615 | |
| Novocure Ltd. (a) | 155,553 | 1,169,759 | |
| Vermillion, Inc. (b)(c) | 991,800 | 1,358,766 | |
| Zosano Pharma Corp. (b) | 598,503 | 1,035,410 | |
| 4,959,424 | |||
| Health Care Technology - 0.1% | |||
| Health Care Technology - 0.1% | |||
| NantHealth, Inc. (c) | 157,320 | 1,588,932 | |
| Life Sciences Tools & Services - 0.0% | |||
| Life Sciences Tools & Services - 0.0% | |||
| JHL Biotech, Inc. (b) | 412,540 | 920,530 | |
| Transgenomic, Inc. (b) | 13,500 | 5,009 | |
| Transgenomic, Inc. warrants 2/3/17 (b) | 81,000 | 1 | |
| 925,540 | |||
| Personal Products - 0.0% | |||
| Personal Products - 0.0% | |||
| MYOS Corp. (b) | 6,666 | 11,532 | |
| Pharmaceuticals - 10.1% | |||
| Pharmaceuticals - 10.1% | |||
| Achaogen, Inc. (b) | 125,415 | 492,881 | |
| Adimab LLC unit (b)(d)(e) | 398,401 | 9,577,560 | |
| Afferent Pharmaceuticals, Inc. rights 12/31/24 | 1,915,787 | 1,762,524 | |
| Aradigm Corp. (b) | 8,786 | 40,943 | |
| Auris Medical Holding AG (b) | 261,667 | 1,049,285 | |
| Avexis, Inc. (c) | 172,699 | 6,498,663 | |
| Axsome Therapeutics, Inc. (b)(c) | 902,260 | 7,055,673 | |
| Cempra, Inc. (b)(c) | 1,143,578 | 20,550,097 | |
| Dermira, Inc. (b) | 566,145 | 18,999,826 | |
| Egalet Corp. (b)(c) | 1,252,974 | 9,259,478 | |
| GW Pharmaceuticals PLC ADR (b)(c) | 214,915 | 20,270,783 | |
| Horizon Pharma PLC (b) | 1,562,509 | 30,140,799 | |
| Intra-Cellular Therapies, Inc. (b) | 159,154 | 6,493,483 | |
| Jazz Pharmaceuticals PLC (b) | 254,367 | 38,401,786 | |
| MyoKardia, Inc. (b)(c) | 709,234 | 12,532,165 | |
| MyoKardia, Inc. (a) | 484,646 | 8,563,695 | |
| Nektar Therapeutics (b) | 218,632 | 3,780,147 | |
| NeurogesX, Inc. (b) | 150,000 | 750 | |
| Ocular Therapeutix, Inc. (b) | 337,771 | 1,476,059 | |
| Pacira Pharmaceuticals, Inc. (b)(c) | 411,984 | 14,934,420 | |
| Paratek Pharmaceuticals, Inc. (b)(c) | 799,460 | 10,289,050 | |
| Parnell Pharmaceuticals Holdings Ltd. (b)(c) | 123,569 | 197,710 | |
| Reata Pharmaceuticals, Inc. (c) | 113,100 | 1,812,993 | |
| Repros Therapeutics, Inc. (b)(c) | 652,054 | 1,382,354 | |
| Tetraphase Pharmaceuticals, Inc. (b) | 378,131 | 1,520,087 | |
| The Medicines Company (b) | 565,722 | 22,125,387 | |
| TherapeuticsMD, Inc. (b)(c) | 1,497,500 | 11,635,575 | |
| Theravance Biopharma, Inc. (b)(c) | 367,503 | 9,375,002 | |
| WAVE Life Sciences (b) | 138,344 | 2,671,423 | |
| WAVE Life Sciences (a) | 230,144 | 4,444,081 | |
| Zogenix, Inc. (b)(c) | 489,311 | 4,467,409 | |
| Zogenix, Inc. warrants 7/27/17 (b) | 32,985 | 313 | |
| 281,802,401 | |||
| TOTAL COMMON STOCKS | |||
| (Cost $2,526,480,292) | 2,715,435,151 | ||
| Preferred Stocks - 1.6% | |||
| Convertible Preferred Stocks - 1.6% | |||
| Biotechnology - 1.3% | |||
| Biotechnology - 1.3% | |||
| 23andMe, Inc. Series E (b)(d) | 341,730 | 3,243,018 | |
| AC Immune SA Series E (d) | 101,250 | 976,050 | |
| Immunocore Ltd. Series A (d) | 17,149 | 4,005,136 | |
| Jounce Therapeutics, Inc. Series B (b)(d) | 1,591,779 | 5,507,555 | |
| Moderna LLC: | |||
| Series D, 8.00% (b)(d) | 26,918 | 2,363,400 | |
| Series E (b)(d) | 54,410 | 4,777,198 | |
| Ovid Therapeutics, Inc. Series B (d) | 246,448 | 917,279 | |
| Pronutria Biosciences, Inc. Series C (b)(d) | 341,857 | 5,876,522 | |
| RaNA Therapeutics LLC Series B (d) | 1,310,353 | 744,281 | |
| Scholar Rock LLC Series B (d) | 1,083,994 | 2,306,739 | |
| Twist Bioscience Corp.: | |||
| Series C (b)(d) | 1,866,791 | 4,005,573 | |
| Series D (d) | 453,587 | 973,262 | |
| 35,696,013 | |||
| Health Care Providers & Services - 0.1% | |||
| Health Care Services - 0.1% | |||
| Allena Pharmaceuticals, Inc. Series C (d) | 1,505,538 | 2,681,363 | |
| Health Care Technology - 0.1% | |||
| Health Care Technology - 0.1% | |||
| Codiak Biosciences, Inc.: | |||
| Series A (d) | 213,402 | 464,149 | |
| Series B (d) | 693,558 | 1,508,489 | |
| 1,972,638 | |||
| Pharmaceuticals - 0.1% | |||
| Pharmaceuticals - 0.1% | |||
| Afferent Pharmaceuticals, Inc. Series C (b)(d) | 1,915,787 | 862,104 | |
| Kolltan Pharmaceuticals, Inc. Series D (b)(d) | 1,610,391 | 1,562,079 | |
| Stemcentrx, Inc. Series G (d) | 208,907 | 576,583 | |
| 3,000,766 | |||
| TOTAL CONVERTIBLE PREFERRED STOCKS | 43,350,780 | ||
| Nonconvertible Preferred Stocks - 0.0% | |||
| Biotechnology - 0.0% | |||
| Biotechnology - 0.0% | |||
| Yumanity Holdings LLC Class A (d) | 151,084 | 1,166,368 | |
| TOTAL PREFERRED STOCKS | |||
| (Cost $38,628,897) | 44,517,148 | ||
| Money Market Funds - 8.8% | |||
| Fidelity Cash Central Fund, 0.42% (f) | 19,108,558 | 19,108,558 | |
| Fidelity Securities Lending Cash Central Fund, 0.45% (f)(g) | 225,806,035 | 225,806,035 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $244,914,593) | 244,914,593 | ||
| TOTAL INVESTMENT PORTFOLIO - 107.9% | |||
| (Cost $2,810,023,782) | 3,004,866,892 | ||
| NET OTHER ASSETS (LIABILITIES) - (7.9)% | (218,935,479) | ||
| NET ASSETS - 100% | $2,785,931,413 |
Legend
(a) 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 end of the period, the value of these securities amounted to $47,662,720 or 1.7% of net assets.
(b) Non-income producing
(c) Security or a portion of the security is on loan at period end.
(d) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $55,692,388 or 2.0% of net assets.
(e) Investment is owned by a wholly-owned subsidiary (Subsidiary) that is treated as a corporation for U.S. tax purposes.
(f) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(g) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
| Security | Acquisition Date | Acquisition Cost |
| 23andMe, Inc. Series E | 6/18/15 | $3,700,003 |
| AC Immune SA Series E | 10/19/15 | $975,669 |
| Adimab LLC unit | 9/17/14 - 6/5/15 | $6,416,091 |
| Allena Pharmaceuticals, Inc. Series C | 11/25/15 | $3,989,676 |
| Codiak Biosciences, Inc. Series A | 11/12/15 | $213,402 |
| Codiak Biosciences, Inc. Series B | 11/12/15 | $2,080,674 |
| Immunocore Ltd. Series A | 7/27/15 | $3,227,085 |
| Jounce Therapeutics, Inc. Series B | 4/17/15 | $3,597,421 |
| Kolltan Pharmaceuticals, Inc. Series D | 3/13/14 | $1,610,391 |
| Moderna LLC Series D, 8.00% | 11/6/13 | $574,161 |
| Moderna LLC Series E | 12/18/14 | $3,355,465 |
| Ovid Therapeutics, Inc. Series B | 8/10/15 | $1,535,371 |
| Pronutria Biosciences, Inc. Series C | 1/30/15 | $3,445,919 |
| RaNA Therapeutics LLC Series B | 7/17/15 | $1,415,181 |
| RPI International Holdings LP | 5/21/15 | $1,439,559 |
| Scholar Rock LLC Series B | 12/17/15 | $3,251,982 |
| Stemcentrx, Inc. Series G | 7/19/16 | $0 |
| Twist Bioscience Corp. Series C | 5/29/15 | $2,800,000 |
| Twist Bioscience Corp. Series D | 1/8/16 | $973,262 |
| Yumanity Holdings LLC Class A | 2/8/16 | $1,021,131 |
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
| Fund | Income earned |
| Fidelity Cash Central Fund | $51,285 |
| Fidelity Securities Lending Cash Central Fund | 5,967,392 |
| Total | $6,018,677 |
Other Affiliated Issuers
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows:
| Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value, end of period |
| Adamas Pharmaceuticals, Inc. | $22,064,924 | $3,508,766 | $2,028,541 | $-- | $-- |
| Aegerion Pharmaceuticals, Inc. | 27,497,252 | -- | 2,124,959 | -- | -- |
| Egalet Corp. | 5,675,368 | 9,528,212 | -- | -- | -- |
| Histogenics Corp. | 4,284,042 | -- | 150,135 | -- | -- |
| Total | $59,521,586 | $13,036,978 | $4,303,635 | $-- | $-- |
Investment Valuation
The following is a summary of the inputs used, as of July 31, 2016, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | ||||
| Common Stocks | $2,715,435,151 | $2,689,458,067 | $13,038,571 | $12,938,513 |
| Preferred Stocks | 44,517,148 | -- | -- | 44,517,148 |
| Money Market Funds | 244,914,593 | 244,914,593 | -- | -- |
| Total Investments in Securities: | $3,004,866,892 | $2,934,372,660 | $13,038,571 | $57,455,661 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value:
| Investments in Securities: | |
| Other Investments in Securities | |
| Beginning Balance | $13,219,438 |
| Total Realized Gain (Loss) | -- |
| Total Unrealized Gain (Loss) | 878,637 |
| Cost of Purchases | 1,777,471 |
| Proceeds of Sales | (878,043) |
| Amortization/Accretion | -- |
| Transfers in to Level 3 | 900 |
| Transfers out of Level 3 | (2,059,890) |
| Ending Balance | $12,938,513 |
| The change in unrealized gain (loss) for the period attributable to Level 3 securities held at July 31, 2016 | $2,062,649 |
| Preferred Stocks | |
| Beginning Balance | $59,208,008 |
| Total Realized Gain (Loss) | 6,665,987 |
| Total Unrealized Gain (Loss) | (3,996,386) |
| Cost of Purchases | 19,076,628 |
| Proceeds of Sales | (36,437,089) |
| Amortization/Accretion | -- |
| Transfers in to Level 3 | -- |
| Transfers out of Level 3 | -- |
| Ending Balance | $44,517,148 |
| The change in unrealized gain (loss) for the period attributable to Level 3 securities held at July 31, 2016 | $4,790,875 |
The information used in the above reconciliations represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliations are included in Net Gain (Loss) on the Fund's Statement of Operations.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Biotechnology Fund
Financial Statements
Statement of Assets and Liabilities
| July 31, 2016 | ||
| Assets | ||
| Investment in securities, at value (including securities loaned of $222,918,160) — See accompanying schedule: Unaffiliated issuers (cost $2,565,109,189) | $2,759,952,299 | |
| Fidelity Central Funds (cost $244,914,593) | 244,914,593 | |
| Total Investments (cost $2,810,023,782) | $3,004,866,892 | |
| Restricted cash | 77,501 | |
| Receivable for investments sold | 19,074,461 | |
| Receivable for fund shares sold | 3,834,465 | |
| Dividends receivable | 37,014 | |
| Distributions receivable from Fidelity Central Funds | 342,937 | |
| Other receivables | 23,972 | |
| Total assets | 3,028,257,242 | |
| Liabilities | ||
| Payable to custodian bank | $81,379 | |
| Payable for investments purchased | 5,685,019 | |
| Payable for fund shares redeemed | 8,151,952 | |
| Accrued management fee | 1,222,352 | |
| Distribution and service plan fees payable | 799,206 | |
| Other affiliated payables | 513,383 | |
| Other payables and accrued expenses | 66,503 | |
| Collateral on securities loaned, at value | 225,806,035 | |
| Total liabilities | 242,325,829 | |
| Net Assets | $2,785,931,413 | |
| Net Assets consist of: | ||
| Paid in capital | $2,817,129,523 | |
| Accumulated net investment loss | (8,484,890) | |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (217,556,330) | |
| Net unrealized appreciation (depreciation) on investments | 194,843,110 | |
| Net Assets | $2,785,931,413 | |
| Calculation of Maximum Offering Price | ||
| Class A: | ||
| Net Asset Value and redemption price per share ($1,080,733,486 ÷ 50,514,826 shares) | $21.39 | |
| Maximum offering price per share (100/94.25 of $21.39) | $22.69 | |
| Class T: | ||
| Net Asset Value and redemption price per share ($131,928,355 ÷ 6,470,464 shares) | $20.39 | |
| Maximum offering price per share (100/96.50 of $20.39) | $21.13 | |
| Class C: | ||
| Net Asset Value and offering price per share ($665,035,557 ÷ 35,535,901 shares)(a) | $18.71 | |
| Class I: | ||
| Net Asset Value, offering price and redemption price per share ($908,234,015 ÷ 40,330,052 shares) | $22.52 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Year ended July 31, 2016 | ||
| Investment Income | ||
| Dividends | $5,124,770 | |
| Interest | 11,890 | |
| Income from Fidelity Central Funds (including $5,967,392 from security lending) | 6,018,677 | |
| Total income | 11,155,337 | |
| Expenses | ||
| Management fee | $17,110,806 | |
| Transfer agent fees | 6,179,726 | |
| Distribution and service plan fees | 11,124,157 | |
| Accounting and security lending fees | 952,065 | |
| Custodian fees and expenses | 151,517 | |
| Independent trustees' fees and expenses | 64,278 | |
| Registration fees | 165,254 | |
| Audit | 84,248 | |
| Legal | 38,825 | |
| Interest | 7,340 | |
| Miscellaneous | 43,561 | |
| Total expenses before reductions | 35,921,777 | |
| Expense reductions | (76,839) | 35,844,938 |
| Net investment income (loss) | (24,689,601) | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | (186,806,152) | |
| Other affiliated issuers | (18,917,558) | |
| Foreign currency transactions | (256,329) | |
| Total net realized gain (loss) | (205,980,039) | |
| Change in net unrealized appreciation (depreciation) on investment securities | (1,017,727,981) | |
| Net gain (loss) | (1,223,708,020) | |
| Net increase (decrease) in net assets resulting from operations | $(1,248,397,621) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended July 31, 2016 | Year ended July 31, 2015 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $(24,689,601) | $(22,504,330) |
| Net realized gain (loss) | (205,980,039) | 265,529,861 |
| Change in net unrealized appreciation (depreciation) | (1,017,727,981) | 881,295,858 |
| Net increase (decrease) in net assets resulting from operations | (1,248,397,621) | 1,124,321,389 |
| Distributions to shareholders from net investment income | – | (69,565) |
| Distributions to shareholders from net realized gain | (189,321,949) | (51,362,234) |
| Total distributions | (189,321,949) | (51,431,799) |
| Share transactions - net increase (decrease) | 98,205,004 | 1,521,666,795 |
| Redemption fees | 265,724 | 97,303 |
| Total increase (decrease) in net assets | (1,339,248,842) | 2,594,653,688 |
| Net Assets | ||
| Beginning of period | 4,125,180,255 | 1,530,526,567 |
| End of period | $2,785,931,413 | $4,125,180,255 |
| Other Information | ||
| Accumulated net investment loss end of period | $(8,484,890) | $– |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Biotechnology Fund Class A
| Years ended July 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $31.43 | $20.19 | $17.25 | $11.79 | $8.81 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | (.16) | (.20) | (.13) | (.09) | (.07) |
| Net realized and unrealized gain (loss) | (8.48) | 12.04 | 3.12 | 6.24 | 3.05 |
| Total from investment operations | (8.64) | 11.84 | 2.99 | 6.15 | 2.98 |
| Distributions from net realized gain | (1.40) | (.60) | (.05) | (.69) | – |
| Total distributions | (1.40) | (.60) | (.05) | (.69) | – |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – |
| Net asset value, end of period | $21.39 | $31.43 | $20.19 | $17.25 | $11.79 |
| Total ReturnC,D | (28.55)% | 59.66% | 17.38% | 54.94% | 33.83% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | 1.05% | 1.04% | 1.08% | 1.15% | 1.27% |
| Expenses net of fee waivers, if any | 1.05% | 1.04% | 1.08% | 1.15% | 1.27% |
| Expenses net of all reductions | 1.04% | 1.04% | 1.08% | 1.14% | 1.27% |
| Net investment income (loss) | (.69)% | (.75)% | (.68)% | (.63)% | (.73)% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $1,080,733 | $1,560,528 | $602,625 | $286,695 | $68,993 |
| Portfolio turnover rateG | 29% | 26% | 50% | 22% | 82% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Biotechnology Fund Class T
| Years ended July 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $30.06 | $19.39 | $16.63 | $11.42 | $8.56 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | (.22) | (.27) | (.19) | (.12) | (.10) |
| Net realized and unrealized gain (loss) | (8.10) | 11.54 | 3.00 | 6.02 | 2.96 |
| Total from investment operations | (8.32) | 11.27 | 2.81 | 5.90 | 2.86 |
| Distributions from net realized gain | (1.35) | (.60) | (.05) | (.69) | – |
| Total distributions | (1.35) | (.60) | (.05) | (.69) | – |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – |
| Net asset value, end of period | $20.39 | $30.06 | $19.39 | $16.63 | $11.42 |
| Total ReturnC,D | (28.75)% | 59.17% | 16.95% | 54.50% | 33.41% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | 1.37% | 1.35% | 1.41% | 1.46% | 1.56% |
| Expenses net of fee waivers, if any | 1.37% | 1.35% | 1.41% | 1.46% | 1.56% |
| Expenses net of all reductions | 1.37% | 1.34% | 1.40% | 1.46% | 1.56% |
| Net investment income (loss) | (1.01)% | (1.05)% | (1.01)% | (.94)% | (1.02)% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $131,928 | $196,393 | $95,945 | $67,887 | $28,154 |
| Portfolio turnover rateG | 29% | 26% | 50% | 22% | 82% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Biotechnology Fund Class C
| Years ended July 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $27.78 | $18.04 | $15.53 | $10.76 | $8.10 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | (.29) | (.35) | (.25) | (.17) | (.13) |
| Net realized and unrealized gain (loss) | (7.46) | 10.69 | 2.81 | 5.63 | 2.79 |
| Total from investment operations | (7.75) | 10.34 | 2.56 | 5.46 | 2.66 |
| Distributions from net realized gain | (1.32) | (.60) | (.05) | (.69) | – |
| Total distributions | (1.32) | (.60) | (.05) | (.69) | – |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – |
| Net asset value, end of period | $18.71 | $27.78 | $18.04 | $15.53 | $10.76 |
| Total ReturnC,D | (29.06)% | 58.43% | 16.54% | 53.71% | 32.84% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | 1.80% | 1.79% | 1.83% | 1.88% | 2.01% |
| Expenses net of fee waivers, if any | 1.80% | 1.79% | 1.83% | 1.88% | 2.01% |
| Expenses net of all reductions | 1.79% | 1.79% | 1.83% | 1.87% | 2.01% |
| Net investment income (loss) | (1.44)% | (1.49)% | (1.43)% | (1.36)% | (1.47)% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $665,036 | $956,495 | $359,967 | $146,684 | $31,710 |
| Portfolio turnover rateG | 29% | 26% | 50% | 22% | 82% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Biotechnology Fund Class I
| Years ended July 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $32.95 | $21.10 | $17.97 | $12.22 | $9.10 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | (.10) | (.14) | (.08) | (.05) | (.04) |
| Net realized and unrealized gain (loss) | (8.89) | 12.60 | 3.26 | 6.49 | 3.16 |
| Total from investment operations | (8.99) | 12.46 | 3.18 | 6.44 | 3.12 |
| Distributions from net investment income | – | –B | – | – | – |
| Distributions from net realized gain | (1.44) | (.60) | (.05) | (.69) | – |
| Total distributions | (1.44) | (.61)C | (.05) | (.69) | – |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – |
| Net asset value, end of period | $22.52 | $32.95 | $21.10 | $17.97 | $12.22 |
| Total ReturnD | (28.32)% | 60.00% | 17.74% | 55.39% | 34.29% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | .78% | .78% | .81% | .85% | .95% |
| Expenses net of fee waivers, if any | .78% | .78% | .81% | .85% | .95% |
| Expenses net of all reductions | .78% | .77% | .80% | .84% | .94% |
| Net investment income (loss) | (.42)% | (.48)% | (.41)% | (.32)% | (.40)% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $908,234 | $1,403,666 | $465,889 | $177,926 | $26,772 |
| Portfolio turnover rateG | 29% | 26% | 50% | 22% | 82% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total distributions of $.61 per share is comprised of distributions from net investment income of $.003 and distributions from net realized gain of $.604 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Communications Equipment Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended July 31, 2016 | Past 1 year | Past 5 years | Past 10 years |
| Class A (incl. 5.75% sales charge) | (6.25)% | 4.46% | 5.35% |
| Class T (incl. 3.50% sales charge) | (4.30)% | 4.68% | 5.33% |
| Class C (incl. contingent deferred sales charge) | (2.24)% | 4.91% | 5.18% |
| Class I | (0.33)% | 5.95% | 6.24% |
Prior to October 1, 2006, the fund was named Fidelity Advisor® Developing Communications Fund, and the fund operated under certain different investment policies and compared its performance to a different additional index. The fund's historical performance may not represent its current investment policies.
Class C shares' contingent deferred sales charges included in the past one year, past five years and past ten years total return figures are 1%, 0% and 0%, respectively.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Communications Equipment Fund - Class A on July 31, 2006, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
| Period Ending Values | ||
|
| $16,836 | Fidelity Advisor® Communications Equipment Fund - Class A |
|
| $21,089 | S&P 500® Index |
Fidelity Advisor® Communications Equipment Fund
Management's Discussion of Fund Performance
Market Recap: U.S. equities gained modestly for the year ending July 31, 2016, overcoming persistent concern about global economic growth, uncertainty regarding U.S. monetary policy and the U.K.’s late-June vote to leave the European Union, dubbed Brexit. The S&P 500® index rose 5.61%, with larger-cap, value-oriented stocks and defensive sectors shining brightest. Volatility peaked in the early weeks of 2016, as continued oil-price weakness and U.S.-dollar strength pushed the S&P 500® to its worst January since 2009. Markets then rose beginning in February amid U.S. job gains, a broad rally in energy and materials markets, global economic stimulus and perceived softening of monetary policy by the U.S. Federal Reserve. The June 23 Brexit vote surprised markets and resulted in a sharp two-day decline for stocks, followed by a rebound as investor sentiment shifted and remained positive through July 31. For the year, dividend-rich telecom services (+26%), utilities (+23%) and consumer staples (+12%) led the way amid strong investor demand for yield. Industrials (+10%) and information technology (+10%) also outperformed, as did materials (+8%), despite a weak commodities environment overall. Conversely, a strong run for real estate stocks couldn’t keep financials (-4%) from losing ground, as low interest rates continued to squeeze bank profits. Comments from Portfolio Manager Colin Anderson: For the year, most of the fund’s share classes (excluding sales charges, if applicable) finished just below breakeven but still well ahead of the -3.23% return of its industry benchmark, the S&P® Custom Communications Equipment Index. However, the fund considerably lagged the broad-market S&P 500®. Versus the industry benchmark, strong stock selection in the fund's largest category – communications equipment – was the main driver of fund performance. Out-of-benchmark exposure to several related industries also added value. Many of the most significant individual contributions to relative results came from benchmark stocks we chose to underweight, including the fund's biggest contributor, Palo Alto Networks, a provider of enterprise security platforms. The firm's high valuation finally caught up with it this period, as investors became less confident in the company’s ability to grow fast enough to leverage its high operating expenses. An overweighting in Ruckus Wireless, a maker of wireless networking equipment based on so-called Wi-Fi smart technology, also helped. The stock advanced early in April after Ruckus announced a definitive agreement to be acquired by Brocade Communications, with the deal closing in late May. Conversely, an out-of-benchmark stake in Radware, an Israel-based manufacturer of application-delivery and load-balancing products used in securely deploying and managing network-based software, was the fund’s largest relative detractor. Lighter-than-benchmark exposure to communications infrastructure provider Motorola Solutions also had a negative impact.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Fidelity Advisor® Communications Equipment Fund
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Cisco Systems, Inc. | 19.8 | 18.8 |
| Qualcomm, Inc. | 17.6 | 17.0 |
| F5 Networks, Inc. | 5.5 | 6.1 |
| CommScope Holding Co., Inc. | 5.2 | 4.9 |
| Telefonaktiebolaget LM Ericsson (B Shares) sponsored ADR | 4.9 | 4.9 |
| Harris Corp. | 4.9 | 4.9 |
| Nokia Corp. sponsored ADR | 4.6 | 8.1 |
| Juniper Networks, Inc. | 4.4 | 4.5 |
| Brocade Communications Systems, Inc. | 4.3 | 4.2 |
| Arris International PLC | 1.9 | 1.7 |
| 73.1 |
Top Industries (% of fund's net assets)
| As of July 31, 2016 | ||
| Communications Equipment | 72.5% | |
| Semiconductors & Semiconductor Equipment | 18.3% | |
| Technology Hardware, Storage & Peripherals | 3.8% | |
| Electronic Equipment & Components | 2.1% | |
| Internet Software & Services | 1.8% | |
| All Others* | 1.5% | |
| As of January 31, 2016 | ||
| Communications Equipment | 90.0% | |
| Technology Hardware, Storage & Peripherals | 3.0% | |
| Semiconductors & Semiconductor Equipment | 2.1% | |
| Electronic Equipment & Components | 1.8% | |
| Internet Software & Services | 1.6% | |
| All Others* | 1.5% | |
* Includes Short-Term investments and Net Other Assets (Liabilities).
Fidelity Advisor® Communications Equipment Fund
Investments July 31, 2016
Showing Percentage of Net Assets
| Common Stocks - 99.5% | |||
| Shares | Value | ||
| Communications Equipment - 72.5% | |||
| Communications Equipment - 72.5% | |||
| ADTRAN, Inc. | 5,100 | $92,820 | |
| Arista Networks, Inc. (a) | 500 | 35,635 | |
| Arris International PLC (a) | 8,130 | 221,461 | |
| Brocade Communications Systems, Inc. | 54,365 | 505,595 | |
| Calix Networks, Inc. (a) | 3,100 | 23,932 | |
| Ciena Corp. (a) | 2,200 | 42,218 | |
| Cisco Systems, Inc. | 77,324 | 2,360,704 | |
| CommScope Holding Co., Inc. (a) | 20,720 | 620,564 | |
| EchoStar Holding Corp. Class A (a) | 1,300 | 50,635 | |
| EXFO, Inc. (a) | 4,700 | 16,074 | |
| F5 Networks, Inc. (a) | 5,315 | 655,977 | |
| Finisar Corp. (a) | 10,600 | 198,856 | |
| Harris Corp. | 6,720 | 582,086 | |
| Infinera Corp. (a) | 4,217 | 36,941 | |
| InterDigital, Inc. | 2,700 | 159,435 | |
| Ixia (a) | 8,490 | 97,635 | |
| Juniper Networks, Inc. | 23,058 | 523,186 | |
| Lumentum Holdings, Inc. (a) | 2,160 | 65,340 | |
| Mitel Networks Corp. (a)(b) | 4,510 | 33,058 | |
| Motorola Solutions, Inc. | 2,309 | 160,198 | |
| NETGEAR, Inc. (a) | 600 | 30,858 | |
| NetScout Systems, Inc. (a) | 7,900 | 221,042 | |
| Nokia Corp. sponsored ADR (b) | 94,720 | 546,534 | |
| Oclaro, Inc. (a)(b) | 8,800 | 50,424 | |
| Palo Alto Networks, Inc. (a) | 940 | 123,037 | |
| Plantronics, Inc. | 2,310 | 111,434 | |
| Polycom, Inc. (a) | 9,019 | 111,745 | |
| Radware Ltd. (a) | 14,600 | 179,726 | |
| Sandvine Corp. (U.K.) (b) | 14,600 | 36,454 | |
| Sonus Networks, Inc. (a) | 6,750 | 58,185 | |
| Telefonaktiebolaget LM Ericsson (B Shares) sponsored ADR | 78,030 | 582,884 | |
| Viavi Solutions, Inc. (a) | 13,600 | 96,968 | |
| 8,631,641 | |||
| Diversified Financial Services - 0.6% | |||
| Other Diversified Financial Services - 0.6% | |||
| Broadcom Ltd. | 435 | 70,461 | |
| Electronic Equipment & Components - 2.1% | |||
| Electronic Components - 0.2% | |||
| II-VI, Inc. (a) | 1,360 | 27,336 | |
| Electronic Equipment & Instruments - 0.8% | |||
| Keysight Technologies, Inc. (a) | 3,000 | 87,720 | |
| Electronic Manufacturing Services - 0.4% | |||
| Jabil Circuit, Inc. | 1,300 | 26,455 | |
| TE Connectivity Ltd. | 300 | 18,084 | |
| 44,539 | |||
| Technology Distributors - 0.7% | |||
| CDW Corp. | 2,000 | 85,860 | |
| TOTAL ELECTRONIC EQUIPMENT & COMPONENTS | 245,455 | ||
| Internet Software & Services - 1.8% | |||
| Internet Software & Services - 1.8% | |||
| Alphabet, Inc.: | |||
| Class A | 89 | 70,429 | |
| Class C (a) | 88 | 67,654 | |
| Rackspace Hosting, Inc. (a) | 800 | 18,744 | |
| Web.com Group, Inc. (a) | 3,300 | 62,238 | |
| 219,065 | |||
| Semiconductors & Semiconductor Equipment - 18.3% | |||
| Semiconductors - 18.3% | |||
| GSI Technology, Inc. (a) | 2,800 | 13,636 | |
| Marvell Technology Group Ltd. | 1,200 | 14,100 | |
| Maxim Integrated Products, Inc. | 700 | 28,546 | |
| NXP Semiconductors NV (a) | 200 | 16,818 | |
| Qorvo, Inc. (a) | 200 | 12,646 | |
| Qualcomm, Inc. | 33,361 | 2,087,731 | |
| Semtech Corp. (a) | 200 | 5,084 | |
| 2,178,561 | |||
| Software - 0.4% | |||
| Systems Software - 0.4% | |||
| Check Point Software Technologies Ltd. (a) | 600 | 46,128 | |
| Technology Hardware, Storage & Peripherals - 3.8% | |||
| Technology Hardware, Storage & Peripherals - 3.8% | |||
| BlackBerry Ltd. (a) | 20,800 | 157,715 | |
| EMC Corp. | 5,750 | 162,610 | |
| HP, Inc. | 5,800 | 81,258 | |
| Samsung Electronics Co. Ltd. | 34 | 47,022 | |
| 448,605 | |||
| TOTAL COMMON STOCKS | |||
| (Cost $10,166,685) | 11,839,916 | ||
| Money Market Funds - 5.2% | |||
| Fidelity Cash Central Fund, 0.42% (c) | 143,319 | 143,319 | |
| Fidelity Securities Lending Cash Central Fund, 0.45% (c)(d) | 472,300 | 472,300 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $615,619) | 615,619 | ||
| TOTAL INVESTMENT PORTFOLIO - 104.7% | |||
| (Cost $10,782,304) | 12,455,535 | ||
| NET OTHER ASSETS (LIABILITIES) - (4.7)% | (557,027) | ||
| NET ASSETS - 100% | $11,898,508 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(d) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
| Fund | Income earned |
| Fidelity Cash Central Fund | $309 |
| Fidelity Securities Lending Cash Central Fund | 5,228 |
| Total | $5,537 |
Investment Valuation
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
| United States of America | 83.3% |
| Sweden | 4.9% |
| Finland | 4.6% |
| Canada | 2.0% |
| Israel | 1.9% |
| United Kingdom | 1.9% |
| Others (Individually Less Than 1%) | 1.4% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Communications Equipment Fund
Financial Statements
Statement of Assets and Liabilities
| July 31, 2016 | ||
| Assets | ||
| Investment in securities, at value (including securities loaned of $454,048) — See accompanying schedule: Unaffiliated issuers (cost $10,166,685) | $11,839,916 | |
| Fidelity Central Funds (cost $615,619) | 615,619 | |
| Total Investments (cost $10,782,304) | $12,455,535 | |
| Receivable for investments sold | 86,952 | |
| Receivable for fund shares sold | 747 | |
| Dividends receivable | 17,115 | |
| Distributions receivable from Fidelity Central Funds | 296 | |
| Receivable from investment adviser for expense reductions | 2,769 | |
| Other receivables | 127 | |
| Total assets | 12,563,541 | |
| Liabilities | ||
| Payable for investments purchased | $92,735 | |
| Payable for fund shares redeemed | 49,034 | |
| Accrued management fee | 5,272 | |
| Distribution and service plan fees payable | 4,415 | |
| Other affiliated payables | 3,052 | |
| Payable for audit fees | 37,596 | |
| Other payables and accrued expenses | 629 | |
| Collateral on securities loaned, at value | 472,300 | |
| Total liabilities | 665,033 | |
| Net Assets | $11,898,508 | |
| Net Assets consist of: | ||
| Paid in capital | $10,043,478 | |
| Undistributed net investment income | 65,927 | |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 115,872 | |
| Net unrealized appreciation (depreciation) on investments | 1,673,231 | |
| Net Assets | $11,898,508 | |
| Calculation of Maximum Offering Price | ||
| Class A: | ||
| Net Asset Value and redemption price per share ($4,536,208 ÷ 375,201 shares) | $12.09 | |
| Maximum offering price per share (100/94.25 of $12.09) | $12.83 | |
| Class T: | ||
| Net Asset Value and redemption price per share ($3,673,920 ÷ 315,247 shares) | $11.65 | |
| Maximum offering price per share (100/96.50 of $11.65) | $12.07 | |
| Class C: | ||
| Net Asset Value and offering price per share ($2,479,237 ÷ 230,802 shares)(a) | $10.74 | |
| Class I: | ||
| Net Asset Value, offering price and redemption price per share ($1,209,143 ÷ 96,435 shares) | $12.54 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Year ended July 31, 2016 | ||
| Investment Income | ||
| Dividends | $245,552 | |
| Income from Fidelity Central Funds (including $5,228 from security lending) | 5,537 | |
| Total income | 251,089 | |
| Expenses | ||
| Management fee | $62,460 | |
| Transfer agent fees | 36,065 | |
| Distribution and service plan fees | 54,669 | |
| Accounting and security lending fees | 4,521 | |
| Custodian fees and expenses | 3,465 | |
| Independent trustees' fees and expenses | 231 | |
| Registration fees | 54,334 | |
| Audit | 49,048 | |
| Legal | 1,069 | |
| Miscellaneous | 245 | |
| Total expenses before reductions | 266,107 | |
| Expense reductions | (80,946) | 185,161 |
| Net investment income (loss) | 65,928 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 269,734 | |
| Foreign currency transactions | 356 | |
| Total net realized gain (loss) | 270,090 | |
| Change in net unrealized appreciation (depreciation) on: Investment securities | (534,619) | |
| Assets and liabilities in foreign currencies | 1 | |
| Total change in net unrealized appreciation (depreciation) | (534,618) | |
| Net gain (loss) | (264,528) | |
| Net increase (decrease) in net assets resulting from operations | $(198,600) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended July 31, 2016 | Year ended July 31, 2015 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $65,928 | $(6,053) |
| Net realized gain (loss) | 270,090 | 967,469 |
| Change in net unrealized appreciation (depreciation) | (534,618) | (133,970) |
| Net increase (decrease) in net assets resulting from operations | (198,600) | 827,446 |
| Distributions to shareholders from net investment income | – | (25,322) |
| Distributions to shareholders from net realized gain | (387,325) | – |
| Total distributions | (387,325) | (25,322) |
| Share transactions - net increase (decrease) | (628,642) | (2,143,838) |
| Redemption fees | 148 | 500 |
| Total increase (decrease) in net assets | (1,214,419) | (1,341,214) |
| Net Assets | ||
| Beginning of period | 13,112,927 | 14,454,141 |
| End of period | $11,898,508 | $13,112,927 |
| Other Information | ||
| Undistributed net investment income end of period | $65,927 | $– |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Communications Equipment Fund Class A
| Years ended July 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $12.57 | $11.94 | $10.22 | $7.71 | $9.73 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .09 | .02 | .04B | .02 | (.01) |
| Net realized and unrealized gain (loss) | (.20) | .64 | 1.68 | 2.50 | (1.81) |
| Total from investment operations | (.11) | .66 | 1.72 | 2.52 | (1.82) |
| Distributions from net investment income | – | (.03) | – | (.01) | – |
| Distributions from net realized gain | (.37) | – | – | – | (.20) |
| Total distributions | (.37) | (.03) | – | (.01) | (.20) |
| Redemption fees added to paid in capitalA,C | – | – | – | – | – |
| Net asset value, end of period | $12.09 | $12.57 | $11.94 | $10.22 | $7.71 |
| Total ReturnD,E | (.53)% | 5.54% | 16.83% | 32.65% | (18.88)% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | 2.10% | 1.90% | 1.96% | 2.22% | 1.96% |
| Expenses net of fee waivers, if any | 1.40% | 1.40% | 1.40% | 1.40% | 1.40% |
| Expenses net of all reductions | 1.40% | 1.39% | 1.39% | 1.37% | 1.39% |
| Net investment income (loss) | .81% | .16% | .40%B | .18% | (.16)% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $4,536 | $4,806 | $4,725 | $3,962 | $3,568 |
| Portfolio turnover rateH | 29% | 60% | 160% | 33% | 79% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .14%.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Communications Equipment Fund Class T
| Years ended July 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $12.15 | $11.55 | $9.91 | $7.49 | $9.48 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .06 | (.01) | .02B | (.01) | (.03) |
| Net realized and unrealized gain (loss) | (.20) | .62 | 1.62 | 2.43 | (1.76) |
| Total from investment operations | (.14) | .61 | 1.64 | 2.42 | (1.79) |
| Distributions from net investment income | – | (.01) | – | – | – |
| Distributions from net realized gain | (.36) | – | – | – | (.20) |
| Total distributions | (.36) | (.01) | – | – | (.20) |
| Redemption fees added to paid in capitalA,C | – | – | – | – | – |
| Net asset value, end of period | $11.65 | $12.15 | $11.55 | $9.91 | $7.49 |
| Total ReturnD,E | (.83)% | 5.24% | 16.55% | 32.31% | (19.06)% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | 2.41% | 2.19% | 2.25% | 2.52% | 2.27% |
| Expenses net of fee waivers, if any | 1.65% | 1.65% | 1.65% | 1.65% | 1.65% |
| Expenses net of all reductions | 1.65% | 1.64% | 1.64% | 1.62% | 1.64% |
| Net investment income (loss) | .56% | (.09)% | .14%B | (.07)% | (.41)% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $3,674 | $4,029 | $3,995 | $3,342 | $2,843 |
| Portfolio turnover rateH | 29% | 60% | 160% | 33% | 79% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.11) %.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Communications Equipment Fund Class C
| Years ended July 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $11.27 | $10.76 | $9.28 | $7.05 | $8.98 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .01 | (.07) | (.04)B | (.05) | (.07) |
| Net realized and unrealized gain (loss) | (.19) | .58 | 1.52 | 2.28 | (1.66) |
| Total from investment operations | (.18) | .51 | 1.48 | 2.23 | (1.73) |
| Distributions from net realized gain | (.35) | – | – | – | (.20) |
| Total distributions | (.35) | – | – | – | (.20) |
| Redemption fees added to paid in capitalA,C | – | – | – | – | – |
| Net asset value, end of period | $10.74 | $11.27 | $10.76 | $9.28 | $7.05 |
| Total ReturnD,E | (1.29)% | 4.74% | 15.95% | 31.63% | (19.47)% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | 2.86% | 2.65% | 2.73% | 2.98% | 2.71% |
| Expenses net of fee waivers, if any | 2.15% | 2.15% | 2.15% | 2.15% | 2.15% |
| Expenses net of all reductions | 2.15% | 2.14% | 2.14% | 2.12% | 2.14% |
| Net investment income (loss) | .06% | (.59)% | (.35)%B | (.57)% | (.91)% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $2,479 | $2,966 | $2,744 | $2,334 | $2,142 |
| Portfolio turnover rateH | 29% | 60% | 160% | 33% | 79% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.61) %.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the contingent deferred sales charge.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Communications Equipment Fund Class I
| Years ended July 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $13.01 | $12.35 | $10.55 | $7.95 | $10.00 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .12 | .05 | .08B | .04 | .01 |
| Net realized and unrealized gain (loss) | (.20) | .67 | 1.72 | 2.58 | (1.86) |
| Total from investment operations | (.08) | .72 | 1.80 | 2.62 | (1.85) |
| Distributions from net investment income | – | (.06) | – | (.02) | – |
| Distributions from net realized gain | (.39) | – | – | – | (.20) |
| Total distributions | (.39) | (.06) | – | (.02) | (.20) |
| Redemption fees added to paid in capitalA,C | – | – | – | – | – |
| Net asset value, end of period | $12.54 | $13.01 | $12.35 | $10.55 | $7.95 |
| Total ReturnD | (.33)% | 5.83% | 17.06% | 32.92% | (18.66)% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | 1.69% | 1.57% | 1.45% | 1.93% | 1.66% |
| Expenses net of fee waivers, if any | 1.15% | 1.15% | 1.15% | 1.15% | 1.15% |
| Expenses net of all reductions | 1.14% | 1.14% | 1.14% | 1.12% | 1.13% |
| Net investment income (loss) | 1.06% | .41% | .65%B | .43% | .10% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $1,209 | $1,024 | $2,592 | $855 | $721 |
| Portfolio turnover rateG | 29% | 60% | 160% | 33% | 79% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .39%.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Consumer Discretionary Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended July 31, 2016 | Past 1 year | Past 5 years | Past 10 years |
| Class A (incl. 5.75% sales charge) | (6.11)% | 12.60% | 8.39% |
| Class T (incl. 3.50% sales charge) | (4.15)% | 12.79% | 8.36% |
| Class C (incl. contingent deferred sales charge) | (2.08)% | 13.10% | 8.24% |
| Class I | (0.13)% | 14.28% | 9.36% |
Class C shares' contingent deferred sales charges included in the past one year, past five years and past ten years total return figures are 1%, 0% and 0%, respectively.
Prior to October 1, 2006, the fund was named Fidelity Advisor® Consumer Industries Fund, and the fund operated under certain different investment policies and compared its performance to a different additional index. The fund's historical performance may not represent its current investment policies.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Consumer Discretionary Fund - Class A on July 31, 2006, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
| Period Ending Values | ||
|
| $22,388 | Fidelity Advisor® Consumer Discretionary Fund - Class A |
|
| $21,089 | S&P 500® Index |
Fidelity Advisor® Consumer Discretionary Fund
Management's Discussion of Fund Performance
Market Recap: U.S. equities gained modestly for the year ending July 31, 2016, overcoming persistent concern about global economic growth, uncertainty regarding U.S. monetary policy and the U.K.’s late-June vote to leave the European Union, dubbed Brexit. The S&P 500® index rose 5.61%, with larger-cap, value-oriented stocks and defensive sectors shining brightest. Volatility peaked in the early weeks of 2016, as continued oil-price weakness and U.S.-dollar strength pushed the S&P 500® to its worst January since 2009. Markets then rose beginning in February amid U.S. job gains, a broad rally in energy and materials markets, global economic stimulus and perceived softening of monetary policy by the U.S. Federal Reserve. The June 23 Brexit vote surprised markets and resulted in a sharp two-day decline for stocks, followed by a rebound as investor sentiment shifted and remained positive through July 31. For the year, dividend-rich telecom services (+26%), utilities (+23%) and consumer staples (+12%) led the way amid strong investor demand for yield. Industrials (+10%) and information technology (+10%) also outperformed, as did materials (+8%), despite a weak commodities environment overall. Conversely, a strong run for real estate stocks couldn’t keep financials (-4%) from losing ground, as low interest rates continued to squeeze bank profits. Comments from Portfolio Manager Peter Dixon: For the year, the fund’s share classes (excluding sales charges, if applicable) posted modest declines, underperforming the 1.23% gain of the MSCI U.S. IMI Consumer Discretionary 25/50 Index. Consumer discretionary stocks trailed the S&P 500® largely because seasonal sales were hurt by a relatively mild winter. Additionally, investors favored traditionally defensive, dividend-rich groups over economically sensitive sectors like consumer discretionary. Versus the MSCI benchmark, positioning in hotels, resorts & cruise lines and casinos & gaming detracted, as did picks in apparel, accessories & luxury goods and an underweighting in home improvement retail. The fund’s biggest relative detractor was G-III Apparel Group, the maker of licensed apparel for brands such as Calvin Klein and Tommy Hilfiger. G-III's stock lost 45% of its value this year on weak retail sales. In addition, investors viewed G-III’s proposed acquisition of Donna Karan International as too expensive. Our foreign holdings also hurt amid currency fluctuations, and a non-index stake in British online supermarket Ocado Group detracted. Conversely, picks in cable & satellite and positioning in apparel retail were additive. The fund’s biggest individual contributor was also its largest holding: e-commerce giant Amazon.com. The stock returned 42%, due in part to an improved earnings report in April.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Fidelity Advisor® Consumer Discretionary Fund
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Amazon.com, Inc. | 14.3 | 10.3 |
| Home Depot, Inc. | 8.5 | 8.4 |
| The Walt Disney Co. | 8.1 | 7.5 |
| Charter Communications, Inc. Class A | 6.6 | 3.9 |
| Starbucks Corp. | 5.2 | 4.6 |
| Ross Stores, Inc. | 4.8 | 4.3 |
| NIKE, Inc. Class B | 4.7 | 4.2 |
| L Brands, Inc. | 4.4 | 5.4 |
| AutoZone, Inc. | 3.7 | 2.2 |
| Hilton Worldwide Holdings, Inc. | 3.5 | 2.7 |
| 63.8 |
Top Industries (% of fund's net assets)
| As of July 31, 2016 | ||
| Specialty Retail | 26.4% | |
| Media | 22.1% | |
| Internet & Catalog Retail | 16.2% | |
| Hotels, Restaurants & Leisure | 14.6% | |
| Textiles, Apparel & Luxury Goods | 8.4% | |
| All Others* | 12.3% | |
| As of January 31, 2016 | ||
| Specialty Retail | 24.8% | |
| Media | 20.0% | |
| Hotels, Restaurants & Leisure | 16.6% | |
| Internet & Catalog Retail | 12.5% | |
| Textiles, Apparel & Luxury Goods | 9.7% | |
| All Others* | 16.4% | |
* Includes Short-Term investments and Net Other Assets (Liabilities).
Fidelity Advisor® Consumer Discretionary Fund
Investments July 31, 2016
Showing Percentage of Net Assets
| Common Stocks - 98.0% | |||
| Shares | Value | ||
| Auto Components - 1.6% | |||
| Auto Parts & Equipment - 1.6% | |||
| Tenneco, Inc. (a) | 89,582 | $5,063,175 | |
| Automobiles - 0.2% | |||
| Automobile Manufacturers - 0.2% | |||
| Ferrari NV | 16,700 | 754,339 | |
| Beverages - 1.1% | |||
| Distillers & Vintners - 0.1% | |||
| Constellation Brands, Inc. Class A (sub. vtg.) | 2,047 | 336,998 | |
| Soft Drinks - 1.0% | |||
| Monster Beverage Corp. (a) | 19,449 | 3,124,093 | |
| TOTAL BEVERAGES | 3,461,091 | ||
| Food & Staples Retailing - 1.0% | |||
| Hypermarkets & Super Centers - 1.0% | |||
| Costco Wholesale Corp. | 18,460 | 3,086,881 | |
| Hotels, Restaurants & Leisure - 14.6% | |||
| Casinos & Gaming - 1.6% | |||
| Las Vegas Sands Corp. | 100,880 | 5,109,572 | |
| Hotels, Resorts & Cruise Lines - 4.2% | |||
| Accor SA (b) | 50,509 | 2,113,355 | |
| Hilton Worldwide Holdings, Inc. | 474,700 | 11,008,293 | |
| 13,121,648 | |||
| Leisure Facilities - 0.9% | |||
| Vail Resorts, Inc. | 20,740 | 2,967,272 | |
| Restaurants - 7.9% | |||
| Buffalo Wild Wings, Inc. (a) | 14,600 | 2,452,216 | |
| Del Frisco's Restaurant Group, Inc. (a) | 44,095 | 657,897 | |
| Domino's Pizza, Inc. | 28,440 | 4,189,212 | |
| McDonald's Corp. | 8,980 | 1,056,497 | |
| Starbucks Corp. | 283,576 | 16,461,587 | |
| 24,817,409 | |||
| TOTAL HOTELS, RESTAURANTS & LEISURE | 46,015,901 | ||
| Household Durables - 1.8% | |||
| Household Appliances - 1.8% | |||
| Techtronic Industries Co. Ltd. | 1,333,500 | 5,646,200 | |
| Household Products - 1.4% | |||
| Household Products - 1.4% | |||
| Spectrum Brands Holdings, Inc. (b) | 34,610 | 4,456,730 | |
| Internet & Catalog Retail - 16.2% | |||
| Internet Retail - 16.2% | |||
| Amazon.com, Inc. (a) | 59,380 | 45,058,137 | |
| Liberty Interactive Corp. QVC Group Series A (a) | 65,569 | 1,757,905 | |
| Netflix, Inc. (a) | 6,000 | 547,500 | |
| Ocado Group PLC (a)(b) | 1,115,940 | 3,937,391 | |
| 51,300,933 | |||
| Leisure Products - 0.9% | |||
| Leisure Products - 0.9% | |||
| Mattel, Inc. | 87,800 | 2,930,764 | |
| Media - 22.1% | |||
| Advertising - 2.6% | |||
| Interpublic Group of Companies, Inc. | 355,000 | 8,186,300 | |
| Cable & Satellite - 10.6% | |||
| Charter Communications, Inc. Class A (a) | 88,722 | 20,838,114 | |
| Comcast Corp. Class A | 86,500 | 5,817,125 | |
| DISH Network Corp. Class A (a) | 13,700 | 731,854 | |
| Naspers Ltd. Class N | 27,270 | 4,279,299 | |
| Sirius XM Holdings, Inc. (a)(b) | 425,100 | 1,866,189 | |
| 33,532,581 | |||
| Movies & Entertainment - 8.9% | |||
| The Walt Disney Co. | 265,506 | 25,475,301 | |
| Time Warner, Inc. | 32,800 | 2,514,120 | |
| 27,989,421 | |||
| TOTAL MEDIA | 69,708,302 | ||
| Multiline Retail - 1.6% | |||
| General Merchandise Stores - 1.6% | |||
| B&M European Value Retail S.A. | 797,628 | 2,716,112 | |
| Dollar Tree, Inc. (a) | 23,300 | 2,243,557 | |
| 4,959,669 | |||
| Software - 0.7% | |||
| Application Software - 0.7% | |||
| Mobileye NV (a)(b) | 43,400 | 2,079,294 | |
| Specialty Retail - 26.4% | |||
| Apparel Retail - 11.6% | |||
| Inditex SA | 71,804 | 2,483,251 | |
| L Brands, Inc. | 187,400 | 13,848,860 | |
| Ross Stores, Inc. | 243,320 | 15,044,476 | |
| TJX Companies, Inc. | 59,408 | 4,854,822 | |
| Zumiez, Inc. (a) | 16,513 | 280,391 | |
| 36,511,800 | |||
| Automotive Retail - 5.9% | |||
| Advance Auto Parts, Inc. | 13,500 | 2,293,110 | |
| AutoZone, Inc. (a) | 14,220 | 11,574,653 | |
| O'Reilly Automotive, Inc. (a) | 16,800 | 4,882,584 | |
| 18,750,347 | |||
| Home Improvement Retail - 8.5% | |||
| Home Depot, Inc. | 194,660 | 26,909,798 | |
| Specialty Stores - 0.4% | |||
| Sally Beauty Holdings, Inc. (a) | 42,900 | 1,258,257 | |
| TOTAL SPECIALTY RETAIL | 83,430,202 | ||
| Textiles, Apparel & Luxury Goods - 8.4% | |||
| Apparel, Accessories & Luxury Goods - 3.7% | |||
| G-III Apparel Group Ltd. (a) | 70,680 | 2,829,320 | |
| Regina Miracle International Holdings Ltd. | 157,635 | 173,109 | |
| VF Corp. | 138,380 | 8,639,063 | |
| 11,641,492 | |||
| Footwear - 4.7% | |||
| NIKE, Inc. Class B | 268,434 | 14,898,087 | |
| TOTAL TEXTILES, APPAREL & LUXURY GOODS | 26,539,579 | ||
| TOTAL COMMON STOCKS | |||
| (Cost $265,447,035) | 309,433,060 | ||
| Money Market Funds - 5.5% | |||
| Fidelity Cash Central Fund, 0.42% (c) | 5,700,127 | 5,700,127 | |
| Fidelity Securities Lending Cash Central Fund, 0.45% (c)(d) | 11,667,194 | 11,667,194 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $17,367,321) | 17,367,321 | ||
| TOTAL INVESTMENT PORTFOLIO - 103.5% | |||
| (Cost $282,814,356) | 326,800,381 | ||
| NET OTHER ASSETS (LIABILITIES) - (3.5)% | (10,914,557) | ||
| NET ASSETS - 100% | $315,885,824 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(d) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
| Fund | Income earned |
| Fidelity Cash Central Fund | $30,421 |
| Fidelity Securities Lending Cash Central Fund | 323,360 |
| Total | $353,781 |
Investment Valuation
The following is a summary of the inputs used, as of July 31, 2016, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | ||||
| Common Stocks | $309,433,060 | $302,670,510 | $6,762,550 | $-- |
| Money Market Funds | 17,367,321 | 17,367,321 | -- | -- |
| Total Investments in Securities: | $326,800,381 | $320,037,831 | $6,762,550 | $-- |
The following is a summary of transfers between Level 1 and Level 2 for the period ended July 31, 2016. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements:
| Transfers | Total |
| Level 1 to Level 2 | $4,598,411 |
| Level 2 to Level 1 | $0 |
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Consumer Discretionary Fund
Financial Statements
Statement of Assets and Liabilities
| July 31, 2016 | ||
| Assets | ||
| Investment in securities, at value (including securities loaned of $11,373,642) — See accompanying schedule: Unaffiliated issuers (cost $265,447,035) | $309,433,060 | |
| Fidelity Central Funds (cost $17,367,321) | 17,367,321 | |
| Total Investments (cost $282,814,356) | $326,800,381 | |
| Receivable for investments sold | 3,100,749 | |
| Receivable for fund shares sold | 334,499 | |
| Dividends receivable | 45,702 | |
| Distributions receivable from Fidelity Central Funds | 23,756 | |
| Other receivables | 17,420 | |
| Total assets | 330,322,507 | |
| Liabilities | ||
| Payable for investments purchased | $1,654,436 | |
| Payable for fund shares redeemed | 767,101 | |
| Accrued management fee | 143,626 | |
| Distribution and service plan fees payable | 97,282 | |
| Other affiliated payables | 64,663 | |
| Other payables and accrued expenses | 42,381 | |
| Collateral on securities loaned, at value | 11,667,194 | |
| Total liabilities | 14,436,683 | |
| Net Assets | $315,885,824 | |
| Net Assets consist of: | ||
| Paid in capital | $285,858,818 | |
| Undistributed net investment income | 771,118 | |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (14,724,591) | |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 43,980,479 | |
| Net Assets | $315,885,824 | |
| Calculation of Maximum Offering Price | ||
| Class A: | ||
| Net Asset Value and redemption price per share ($144,578,035 ÷ 6,904,577 shares) | $20.94 | |
| Maximum offering price per share (100/94.25 of $20.94) | $22.22 | |
| Class T: | ||
| Net Asset Value and redemption price per share ($28,259,315 ÷ 1,437,248 shares) | $19.66 | |
| Maximum offering price per share (100/96.50 of $19.66) | $20.37 | |
| Class C: | ||
| Net Asset Value and offering price per share ($67,306,428 ÷ 3,918,636 shares)(a) | $17.18 | |
| Class I: | ||
| Net Asset Value, offering price and redemption price per share ($75,742,046 ÷ 3,368,794 shares) | $22.48 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Year ended July 31, 2016 | ||
| Investment Income | ||
| Dividends | $4,061,465 | |
| Special dividends | 476,060 | |
| Income from Fidelity Central Funds (including $323,360 from security lending) | 353,781 | |
| Total income | 4,891,306 | |
| Expenses | ||
| Management fee | $1,699,063 | |
| Transfer agent fees | 644,171 | |
| Distribution and service plan fees | 1,095,091 | |
| Accounting and security lending fees | 124,269 | |
| Custodian fees and expenses | 13,309 | |
| Independent trustees' fees and expenses | 6,173 | |
| Registration fees | 94,211 | |
| Audit | 61,162 | |
| Legal | 3,975 | |
| Miscellaneous | 2,710 | |
| Total expenses before reductions | 3,744,134 | |
| Expense reductions | (31,339) | 3,712,795 |
| Net investment income (loss) | 1,178,511 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | (14,406,955) | |
| Foreign currency transactions | 2,081 | |
| Total net realized gain (loss) | (14,404,874) | |
| Change in net unrealized appreciation (depreciation) on: Investment securities (net of decrease in deferred foreign taxes of $15,238) | 12,408,780 | |
| Assets and liabilities in foreign currencies | (4,591) | |
| Total change in net unrealized appreciation (depreciation) | 12,404,189 | |
| Net gain (loss) | (2,000,685) | |
| Net increase (decrease) in net assets resulting from operations | $(822,174) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended July 31, 2016 | Year ended July 31, 2015 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $1,178,511 | $218,833 |
| Net realized gain (loss) | (14,404,874) | 7,993,991 |
| Change in net unrealized appreciation (depreciation) | 12,404,189 | 21,200,743 |
| Net increase (decrease) in net assets resulting from operations | (822,174) | 29,413,567 |
| Distributions to shareholders from net investment income | (425,920) | – |
| Distributions to shareholders from net realized gain | (5,484,780) | (13,923,456) |
| Total distributions | (5,910,700) | (13,923,456) |
| Share transactions - net increase (decrease) | 87,843,131 | 97,114,685 |
| Redemption fees | 35,244 | 10,114 |
| Total increase (decrease) in net assets | 81,145,501 | 112,614,910 |
| Net Assets | ||
| Beginning of period | 234,740,323 | 122,125,413 |
| End of period | $315,885,824 | $234,740,323 |
| Other Information | ||
| Undistributed net investment income end of period | $771,118 | $175,568 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Consumer Discretionary Fund Class A
| Years ended July 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $21.51 | $19.75 | $19.59 | $16.22 | $16.00 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .10B | .05 | (.04) | (.02) | .01 |
| Net realized and unrealized gain (loss) | (.21) | 3.99 | 1.75 | 5.04 | 1.07 |
| Total from investment operations | (.11) | 4.04 | 1.71 | 5.02 | 1.08 |
| Distributions from net investment income | (.02) | – | – | – | (.03) |
| Distributions from net realized gain | (.44) | (2.28) | (1.55) | (1.65) | (.83) |
| Total distributions | (.46) | (2.28) | (1.55) | (1.65) | (.86) |
| Redemption fees added to paid in capitalA,C | – | – | – | – | – |
| Net asset value, end of period | $20.94 | $21.51 | $19.75 | $19.59 | $16.22 |
| Total ReturnD,E | (.38)% | 22.26% | 9.28% | 33.65% | 7.96% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | 1.10% | 1.15% | 1.20% | 1.31% | 1.38% |
| Expenses net of fee waivers, if any | 1.10% | 1.15% | 1.20% | 1.31% | 1.38% |
| Expenses net of all reductions | 1.09% | 1.14% | 1.19% | 1.29% | 1.37% |
| Net investment income (loss) | .49%B | .27% | (.21)% | (.10)% | .04% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $144,578 | $115,027 | $59,089 | $45,292 | $26,547 |
| Portfolio turnover rateH | 59% | 71% | 171% | 146% | 217% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .33%.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Consumer Discretionary Fund Class T
| Years ended July 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $20.26 | $18.75 | $18.68 | $15.57 | $15.43 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .03B | (.01) | (.10) | (.06) | (.03) |
| Net realized and unrealized gain (loss) | (.19) | 3.77 | 1.67 | 4.81 | 1.02 |
| Total from investment operations | (.16) | 3.76 | 1.57 | 4.75 | .99 |
| Distributions from net investment income | – | – | – | – | (.02) |
| Distributions from net realized gain | (.44) | (2.25) | (1.50) | (1.64) | (.83) |
| Total distributions | (.44) | (2.25) | (1.50) | (1.64) | (.85) |
| Redemption fees added to paid in capitalA,C | – | – | – | – | – |
| Net asset value, end of period | $19.66 | $20.26 | $18.75 | $18.68 | $15.57 |
| Total ReturnD,E | (.68)% | 21.92% | 8.94% | 33.25% | 7.62% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | 1.40% | 1.46% | 1.50% | 1.60% | 1.64% |
| Expenses net of fee waivers, if any | 1.40% | 1.45% | 1.50% | 1.60% | 1.64% |
| Expenses net of all reductions | 1.39% | 1.45% | 1.49% | 1.58% | 1.63% |
| Net investment income (loss) | .19%B | (.03)% | (.51)% | (.39)% | (.23)% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $28,259 | $25,948 | $18,779 | $15,613 | $10,447 |
| Portfolio turnover rateH | 59% | 71% | 171% | 146% | 217% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .03%.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Consumer Discretionary Fund Class C
| Years ended July 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $17.84 | $16.79 | $16.90 | $14.27 | $14.26 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | (.04)B | (.08) | (.16) | (.12) | (.09) |
| Net realized and unrealized gain (loss) | (.18) | 3.34 | 1.49 | 4.37 | .93 |
| Total from investment operations | (.22) | 3.26 | 1.33 | 4.25 | .84 |
| Distributions from net investment income | – | – | – | – | – |
| Distributions from net realized gain | (.44) | (2.21) | (1.44) | (1.62) | (.83) |
| Total distributions | (.44) | (2.21) | (1.44) | (1.62) | (.83) |
| Redemption fees added to paid in capitalA,C | – | – | – | – | – |
| Net asset value, end of period | $17.18 | $17.84 | $16.79 | $16.90 | $14.27 |
| Total ReturnD,E | (1.11)% | 21.37% | 8.44% | 32.68% | 7.17% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | 1.86% | 1.91% | 1.97% | 2.04% | 2.09% |
| Expenses net of fee waivers, if any | 1.86% | 1.91% | 1.97% | 2.04% | 2.09% |
| Expenses net of all reductions | 1.85% | 1.90% | 1.96% | 2.02% | 2.08% |
| Net investment income (loss) | (.27)%B | (.49)% | (.97)% | (.83)% | (.68)% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $67,306 | $43,999 | $20,726 | $17,176 | $13,507 |
| Portfolio turnover rateH | 59% | 71% | 171% | 146% | 217% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.42) %.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the contingent deferred sales charge.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Consumer Discretionary Fund Class I
| Years ended July 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $23.06 | $21.00 | $20.72 | $17.04 | $16.72 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .16B | .12 | .02 | .04 | .07 |
| Net realized and unrealized gain (loss) | (.22) | 4.26 | 1.85 | 5.32 | 1.13 |
| Total from investment operations | (.06) | 4.38 | 1.87 | 5.36 | 1.20 |
| Distributions from net investment income | (.08) | – | – | – | (.05) |
| Distributions from net realized gain | (.44) | (2.32) | (1.59) | (1.68) | (.83) |
| Total distributions | (.52) | (2.32) | (1.59) | (1.68) | (.88) |
| Redemption fees added to paid in capitalA,C | – | – | – | – | – |
| Net asset value, end of period | $22.48 | $23.06 | $21.00 | $20.72 | $17.04 |
| Total ReturnD | (.13)% | 22.60% | 9.61% | 34.06% | 8.33% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | .84% | .87% | .91% | .97% | 1.00% |
| Expenses net of fee waivers, if any | .84% | .87% | .91% | .97% | 1.00% |
| Expenses net of all reductions | .83% | .87% | .91% | .96% | .99% |
| Net investment income (loss) | .75%B | .55% | .08% | .24% | .41% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $75,742 | $48,329 | $21,708 | $13,044 | $9,984 |
| Portfolio turnover rateG | 59% | 71% | 171% | 146% | 217% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .60%.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Electronics Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended July 31, 2016 | Past 1 year | Past 5 years | Past 10 years |
| Class A (incl. 5.75% sales charge) | 13.53% | 14.33% | 9.02% |
| Class T (incl. 3.50% sales charge) | 15.81% | 14.55% | 8.99% |
| Class C (incl. contingent deferred sales charge) | 18.48% | 14.81% | 8.84% |
| Class I | 20.85% | 16.01% | 9.95% |
Class C shares' contingent deferred sales charges included in the past one year, past five years and past ten years total return figures are 1%, 0% and 0%, respectively.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Electronics Fund - Class A on July 31, 2006, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
| Period Ending Values | ||
|
| $23,723 | Fidelity Advisor® Electronics Fund - Class A |
|
| $21,089 | S&P 500® Index |
Fidelity Advisor® Electronics Fund
Management's Discussion of Fund Performance
Market Recap: U.S. equities gained modestly for the year ending July 31, 2016, overcoming persistent concern about global economic growth, uncertainty regarding U.S. monetary policy and the U.K.’s late-June vote to leave the European Union, dubbed Brexit. The S&P 500® index rose 5.61%, with larger-cap, value-oriented stocks and defensive sectors shining brightest. Volatility peaked in the early weeks of 2016, as continued oil-price weakness and U.S.-dollar strength pushed the S&P 500® to its worst January since 2009. Markets then rose beginning in February amid U.S. job gains, a broad rally in energy and materials markets, global economic stimulus and perceived softening of monetary policy by the U.S. Federal Reserve. The June 23 Brexit vote surprised markets and resulted in a sharp two-day decline for stocks, followed by a rebound as investor sentiment shifted and remained positive through July 31. For the year, dividend-rich telecom services (+26%), utilities (+23%) and consumer staples (+12%) led the way amid strong investor demand for yield. Industrials (+10%) and information technology (+10%) also outperformed, as did materials (+8%), despite a weak commodities environment overall. Conversely, a strong run for real estate stocks couldn’t keep financials (-4%) from losing ground, as low interest rates continued to squeeze bank profits. Comments from Portfolio Manager Steve Barwikowski: For the year, the fund’s share classes (excluding sales charges, if applicable) returned roughly 20%, trailing the 24.30% gain of its industry benchmark, the MSCI U.S. IMI Semiconductors & Semiconductor Equipment 25/50 Index, but outdistancing the S&P 500®. Ongoing industry consolidation and a greater focus on profitability helped lift the shares of chip companies this period. Versus the MSCI index, out-of-benchmark exposure to several PC-related stocks in the technology hardware, storage and peripherals group had by far the most negative impact. Here, shares of hard-disk drive manufacturers Seagate Technology and Western Digital, along with PC and printer maker HP, performed poorly and detracted from relative performance. Elsewhere, underweighting graphics chipmaker NVIDIA was by far the fund's largest individual detractor versus the MSCI index. The stock rose roughly 190% this period, fueled by impressive fiscal first-quarter financial results and a positive outlook that led to higher earnings estimates. Another stock exposed to some of the same markets as NVIDIA was Advanced Micro Devices, also a detractor because I underweighted it, eliminating it from the fund by period end. Conversely, solid picks and a large underweighting in the lagging semiconductor equipment group bolstered performance versus the benchmark. Carrying negligible exposure to – and eventually eliminating – solar equipment provider SunEdison was the right call and the fund’s largest relative contributor. The stock lost nearly all of its value this period, as the company’s debt-fueled acquisition binge proved unsustainable amid competitive pressure on alternative energy providers from lower oil prices. Chipmaker Skyworks Solutions also added value.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Note to shareholders: Effective October 1, 2016, the fund's name will change to Fidelity Advisor Semiconductors Fund to better reflect its investment focus.Fidelity Advisor® Electronics Fund
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Intel Corp. | 16.7 | 8.2 |
| Qualcomm, Inc. | 12.7 | 8.3 |
| Broadcom Ltd. | 8.4 | 11.1 |
| Jabil Circuit, Inc. | 5.2 | 2.2 |
| ON Semiconductor Corp. | 4.7 | 4.3 |
| Applied Materials, Inc. | 4.5 | 2.2 |
| Lam Research Corp. | 4.4 | 3.8 |
| Maxim Integrated Products, Inc. | 4.0 | 4.7 |
| NXP Semiconductors NV | 3.7 | 8.6 |
| Analog Devices, Inc. | 3.5 | 0.8 |
| 67.8 |
Top Industries (% of fund's net assets)
| As of July 31, 2016 | ||
| Semiconductors & Semiconductor Equipment | 75.0% | |
| Diversified Financial Services | 8.4% | |
| Electronic Equipment & Components | 7.6% | |
| Technology Hardware, Storage & Peripherals | 2.2% | |
| Commercial Services & Supplies | 0.8% | |
| All Others* | 6.0% | |
| As of January 31, 2016 | ||
| Semiconductors & Semiconductor Equipment | 75.2% | |
| Technology Hardware, Storage & Peripherals | 8.6% | |
| Communications Equipment | 8.3% | |
| Electronic Equipment & Components | 4.6% | |
| Commercial Services & Supplies | 0.4% | |
| All Others* | 2.9% | |
* Includes Short-Term investments and Net Other Assets (Liabilities).
Fidelity Advisor® Electronics Fund
Investments July 31, 2016
Showing Percentage of Net Assets
| Common Stocks - 94.5% | |||
| Shares | Value | ||
| Biotechnology - 0.0% | |||
| Biotechnology - 0.0% | |||
| Arrowhead Pharmaceuticals, Inc. warrants 5/21/17 (a) | 64,879 | $1 | |
| Commercial Services & Supplies - 0.8% | |||
| Office Services & Supplies - 0.8% | |||
| West Corp. | 34,200 | 756,162 | |
| Diversified Financial Services - 8.4% | |||
| Other Diversified Financial Services - 8.4% | |||
| Broadcom Ltd. | 46,900 | 7,596,862 | |
| Electronic Equipment & Components - 7.6% | |||
| Electronic Components - 0.2% | |||
| InvenSense, Inc. (a) | 29,200 | 197,976 | |
| Electronic Manufacturing Services - 7.4% | |||
| Jabil Circuit, Inc. | 231,876 | 4,718,677 | |
| TTM Technologies, Inc. (a) | 199,060 | 1,980,647 | |
| 6,699,324 | |||
| TOTAL ELECTRONIC EQUIPMENT & COMPONENTS | 6,897,300 | ||
| Internet Software & Services - 0.4% | |||
| Internet Software & Services - 0.4% | |||
| Rackspace Hosting, Inc. (a) | 13,700 | 320,991 | |
| IT Services - 0.1% | |||
| Data Processing & Outsourced Services - 0.1% | |||
| EVERTEC, Inc. | 6,200 | 106,640 | |
| Semiconductors & Semiconductor Equipment - 75.0% | |||
| Semiconductor Equipment - 9.8% | |||
| Amkor Technology, Inc. (a) | 57,000 | 358,530 | |
| Applied Materials, Inc. | 155,700 | 4,093,353 | |
| Lam Research Corp. | 44,481 | 3,993,059 | |
| PDF Solutions, Inc. (a) | 12,400 | 204,600 | |
| SunEdison Semiconductor Ltd. (a) | 29,600 | 190,920 | |
| Xcerra Corp. (a) | 19,400 | 118,340 | |
| 8,958,802 | |||
| Semiconductors - 65.2% | |||
| ams AG | 6,690 | 221,919 | |
| Analog Devices, Inc. | 50,228 | 3,206,053 | |
| Applied Micro Circuits Corp. (a) | 29,637 | 195,011 | |
| Cavium, Inc. (a) | 33,825 | 1,578,613 | |
| Cree, Inc. (a) | 10,000 | 286,000 | |
| Dialog Semiconductor PLC (a) | 17,800 | 582,982 | |
| Diodes, Inc. (a) | 34,000 | 629,340 | |
| Exar Corp. (a) | 5,000 | 41,900 | |
| Fairchild Semiconductor International, Inc. (a) | 6,600 | 130,284 | |
| Intel Corp. | 435,078 | 15,166,820 | |
| Intersil Corp. Class A | 27,137 | 414,653 | |
| Lattice Semiconductor Corp. (a) | 25,700 | 154,457 | |
| Marvell Technology Group Ltd. | 74,300 | 873,025 | |
| Maxim Integrated Products, Inc. | 89,422 | 3,646,629 | |
| Mellanox Technologies Ltd. (a) | 2,900 | 128,122 | |
| Microchip Technology, Inc. (b) | 26,600 | 1,480,024 | |
| Micron Technology, Inc. (a) | 190,012 | 2,610,765 | |
| NVIDIA Corp. | 25,123 | 1,434,523 | |
| NXP Semiconductors NV (a) | 39,691 | 3,337,616 | |
| ON Semiconductor Corp. (a) | 422,900 | 4,241,687 | |
| Qorvo, Inc. (a) | 28,550 | 1,805,217 | |
| Qualcomm, Inc. | 184,826 | 11,566,411 | |
| Semtech Corp. (a) | 77,222 | 1,962,983 | |
| Skyworks Solutions, Inc. | 43,300 | 2,858,666 | |
| Xilinx, Inc. | 11,600 | 592,528 | |
| 59,146,228 | |||
| TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT | 68,105,030 | ||
| Technology Hardware, Storage & Peripherals - 2.2% | |||
| Technology Hardware, Storage & Peripherals - 2.2% | |||
| Hewlett Packard Enterprise Co. | 6,400 | 134,528 | |
| HP, Inc. | 38,000 | 532,380 | |
| Lenovo Group Ltd. | 734,000 | 475,669 | |
| Nimble Storage, Inc. (a)(b) | 26,700 | 198,648 | |
| Seagate Technology LLC | 8,600 | 275,458 | |
| Western Digital Corp. | 8,500 | 403,835 | |
| 2,020,518 | |||
| TOTAL COMMON STOCKS | |||
| (Cost $73,770,759) | 85,803,504 | ||
| Money Market Funds - 8.5% | |||
| Fidelity Cash Central Fund, 0.42% (c) | 6,202,876 | 6,202,876 | |
| Fidelity Securities Lending Cash Central Fund, 0.45% (c)(d) | 1,505,175 | 1,505,175 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $7,708,051) | 7,708,051 | ||
| TOTAL INVESTMENT PORTFOLIO - 103.0% | |||
| (Cost $81,478,810) | 93,511,555 | ||
| NET OTHER ASSETS (LIABILITIES) - (3.0)% | (2,763,496) | ||
| NET ASSETS - 100% | $90,748,059 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(d) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
| Fund | Income earned |
| Fidelity Cash Central Fund | $7,262 |
| Fidelity Securities Lending Cash Central Fund | 20,612 |
| Total | $27,874 |
Investment Valuation
The following is a summary of the inputs used, as of July 31, 2016, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | ||||
| Common Stocks | $85,803,504 | $85,327,834 | $475,670 | $-- |
| Money Market Funds | 7,708,051 | 7,708,051 | -- | -- |
| Total Investments in Securities: | $93,511,555 | $93,035,885 | $475,670 | $-- |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
| United States of America | 84.9% |
| Singapore | 8.6% |
| Netherlands | 3.7% |
| Bermuda | 1.0% |
| Others (Individually Less Than 1%) | 1.8% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Electronics Fund
Financial Statements
Statement of Assets and Liabilities
| July 31, 2016 | ||
| Assets | ||
| Investment in securities, at value (including securities loaned of $1,444,016) — See accompanying schedule: Unaffiliated issuers (cost $73,770,759) | $85,803,504 | |
| Fidelity Central Funds (cost $7,708,051) | 7,708,051 | |
| Total Investments (cost $81,478,810) | $93,511,555 | |
| Cash | 43,041 | |
| Receivable for investments sold | 2,069,572 | |
| Receivable for fund shares sold | 139,035 | |
| Dividends receivable | 200 | |
| Distributions receivable from Fidelity Central Funds | 2,295 | |
| Other receivables | 7,013 | |
| Total assets | 95,772,711 | |
| Liabilities | ||
| Payable for investments purchased | $3,266,042 | |
| Payable for fund shares redeemed | 123,388 | |
| Accrued management fee | 39,299 | |
| Distribution and service plan fees payable | 27,324 | |
| Other affiliated payables | 18,796 | |
| Other payables and accrued expenses | 44,628 | |
| Collateral on securities loaned, at value | 1,505,175 | |
| Total liabilities | 5,024,652 | |
| Net Assets | $90,748,059 | |
| Net Assets consist of: | ||
| Paid in capital | $84,634,179 | |
| Undistributed net investment income | 76,634 | |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (5,995,500) | |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 12,032,746 | |
| Net Assets | $90,748,059 | |
| Calculation of Maximum Offering Price | ||
| Class A: | ||
| Net Asset Value and redemption price per share ($34,066,299 ÷ 2,064,682 shares) | $16.50 | |
| Maximum offering price per share (100/94.25 of $16.50) | $17.51 | |
| Class T: | ||
| Net Asset Value and redemption price per share ($9,766,011 ÷ 613,794 shares) | $15.91 | |
| Maximum offering price per share (100/96.50 of $15.91) | $16.49 | |
| Class C: | ||
| Net Asset Value and offering price per share ($21,088,407 ÷ 1,435,284 shares)(a) | $14.69 | |
| Class I: | ||
| Net Asset Value, offering price and redemption price per share ($25,827,342 ÷ 1,497,840 shares) | $17.24 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Year ended July 31, 2016 | ||
| Investment Income | ||
| Dividends | $1,473,984 | |
| Interest | 32,860 | |
| Income from Fidelity Central Funds (including $20,612 from security lending) | 27,874 | |
| Total income | 1,534,718 | |
| Expenses | ||
| Management fee | $443,900 | |
| Transfer agent fees | 197,735 | |
| Distribution and service plan fees | 315,168 | |
| Accounting and security lending fees | 31,978 | |
| Custodian fees and expenses | 67,436 | |
| Independent trustees' fees and expenses | 1,665 | |
| Registration fees | 58,895 | |
| Audit | 48,196 | |
| Legal | 1,993 | |
| Miscellaneous | 1,255 | |
| Total expenses before reductions | 1,168,221 | |
| Expense reductions | (21,002) | 1,147,219 |
| Net investment income (loss) | 387,499 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | (4,787,305) | |
| Foreign currency transactions | (1,072) | |
| Total net realized gain (loss) | (4,788,377) | |
| Change in net unrealized appreciation (depreciation) on: Investment securities | 18,060,831 | |
| Assets and liabilities in foreign currencies | 290 | |
| Total change in net unrealized appreciation (depreciation) | 18,061,121 | |
| Net gain (loss) | 13,272,744 | |
| Net increase (decrease) in net assets resulting from operations | $13,660,243 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended July 31, 2016 | Year ended July 31, 2015 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $387,499 | $168,582 |
| Net realized gain (loss) | (4,788,377) | 10,893,475 |
| Change in net unrealized appreciation (depreciation) | 18,061,121 | (5,873,187) |
| Net increase (decrease) in net assets resulting from operations | 13,660,243 | 5,188,870 |
| Distributions to shareholders from net investment income | (300,751) | (57,407) |
| Distributions to shareholders from net realized gain | (8,936,630) | (377,502) |
| Total distributions | (9,237,381) | (434,909) |
| Share transactions - net increase (decrease) | (19,868,592) | 44,912,905 |
| Redemption fees | 3,897 | 13,381 |
| Total increase (decrease) in net assets | (15,441,833) | 49,680,247 |
| Net Assets | ||
| Beginning of period | 106,189,892 | 56,509,645 |
| End of period | $90,748,059 | $106,189,892 |
| Other Information | ||
| Undistributed net investment income end of period | $76,634 | $39,890 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Electronics Fund Class A
| Years ended July 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $15.29 | $13.86 | $10.33 | $8.45 | $8.93 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .09 | .03 | (.02) | (.01) | (.05) |
| Net realized and unrealized gain (loss) | 2.67 | 1.48 | 3.55 | 1.89 | (.43) |
| Total from investment operations | 2.76 | 1.51 | 3.53 | 1.88 | (.48) |
| Distributions from net investment income | (.05) | (.01) | – | – | – |
| Distributions from net realized gain | (1.49) | (.07) | – | – | – |
| Total distributions | (1.55)B | (.08) | – | – | – |
| Redemption fees added to paid in capitalA,C | – | – | – | – | – |
| Net asset value, end of period | $16.50 | $15.29 | $13.86 | $10.33 | $8.45 |
| Total ReturnD,E | 20.46% | 10.85% | 34.17% | 22.25% | (5.38)% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | 1.31% | 1.28% | 1.84% | 2.18% | 1.88% |
| Expenses net of fee waivers, if any | 1.31% | 1.28% | 1.40% | 1.40% | 1.40% |
| Expenses net of all reductions | 1.28% | 1.27% | 1.39% | 1.37% | 1.39% |
| Net investment income (loss) | .61% | .20% | (.16)% | (.07)% | (.53)% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $34,066 | $38,237 | $16,542 | $5,833 | $6,000 |
| Portfolio turnover rateH | 185% | 156% | 156% | 179% | 140% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $1.55 per share is comprised of distributions from net investment income of $.053 and distributions from net realized gain of $1.494 per share.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Electronics Fund Class T
| Years ended July 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $14.81 | $13.45 | $10.05 | $8.24 | $8.73 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .04 | (.02) | (.05) | (.03) | (.07) |
| Net realized and unrealized gain (loss) | 2.57 | 1.44 | 3.45 | 1.84 | (.42) |
| Total from investment operations | 2.61 | 1.42 | 3.40 | 1.81 | (.49) |
| Distributions from net investment income | (.04) | – | – | – | – |
| Distributions from net realized gain | (1.47) | (.06) | – | – | – |
| Total distributions | (1.51) | (.06) | – | – | – |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – |
| Net asset value, end of period | $15.91 | $14.81 | $13.45 | $10.05 | $8.24 |
| Total ReturnC,D | 20.01% | 10.55% | 33.83% | 21.97% | (5.61)% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | 1.65% | 1.62% | 2.19% | 2.48% | 2.23% |
| Expenses net of fee waivers, if any | 1.65% | 1.62% | 1.65% | 1.65% | 1.65% |
| Expenses net of all reductions | 1.62% | 1.61% | 1.64% | 1.62% | 1.64% |
| Net investment income (loss) | .27% | (.14)% | (.42)% | (.32)% | (.78)% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $9,766 | $10,826 | $7,144 | $3,756 | $3,909 |
| Portfolio turnover rateG | 185% | 156% | 156% | 179% | 140% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Electronics Fund Class C
| Years ended July 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $13.80 | $12.58 | $9.44 | $7.78 | $8.29 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | (.02) | (.08) | (.10) | (.07) | (.10) |
| Net realized and unrealized gain (loss) | 2.37 | 1.34 | 3.24 | 1.73 | (.41) |
| Total from investment operations | 2.35 | 1.26 | 3.14 | 1.66 | (.51) |
| Distributions from net investment income | (.02) | – | – | – | – |
| Distributions from net realized gain | (1.44) | (.04) | – | – | – |
| Total distributions | (1.46) | (.04) | – | – | – |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – |
| Net asset value, end of period | $14.69 | $13.80 | $12.58 | $9.44 | $7.78 |
| Total ReturnC,D | 19.48% | 10.03% | 33.26% | 21.34% | (6.15)% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | 2.08% | 2.06% | 2.60% | 2.93% | 2.65% |
| Expenses net of fee waivers, if any | 2.08% | 2.06% | 2.15% | 2.15% | 2.15% |
| Expenses net of all reductions | 2.05% | 2.05% | 2.14% | 2.12% | 2.14% |
| Net investment income (loss) | (.16)% | (.58)% | (.91)% | (.82)% | (1.28)% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $21,088 | $20,864 | $7,381 | $3,157 | $3,721 |
| Portfolio turnover rateG | 185% | 156% | 156% | 179% | 140% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Electronics Fund Class I
| Years ended July 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $15.89 | $14.37 | $10.68 | $8.72 | $9.19 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .14 | .08 | .01 | .02 | (.02) |
| Net realized and unrealized gain (loss) | 2.79 | 1.53 | 3.68 | 1.94 | (.45) |
| Total from investment operations | 2.93 | 1.61 | 3.69 | 1.96 | (.47) |
| Distributions from net investment income | (.09) | (.02) | – | – | – |
| Distributions from net realized gain | (1.49) | (.07) | – | – | – |
| Total distributions | (1.58) | (.09) | – | – | – |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – |
| Net asset value, end of period | $17.24 | $15.89 | $14.37 | $10.68 | $8.72 |
| Total ReturnC | 20.85% | 11.17% | 34.55% | 22.48% | (5.11)% |
| Ratios to Average Net AssetsD,E | |||||
| Expenses before reductions | .98% | .98% | 1.34% | 1.86% | 1.55% |
| Expenses net of fee waivers, if any | .98% | .98% | 1.15% | 1.15% | 1.15% |
| Expenses net of all reductions | .95% | .96% | 1.14% | 1.12% | 1.14% |
| Net investment income (loss) | .94% | .51% | .08% | .18% | (.28)% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $25,827 | $35,943 | $25,050 | $2,874 | $3,271 |
| Portfolio turnover rateF | 185% | 156% | 156% | 179% | 140% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Energy Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended July 31, 2016 | Past 1 year | Past 5 years | Past 10 years |
| Class A (incl. 5.75% sales charge) | (4.57)% | (3.88)% | 0.64% |
| Class T (incl. 3.50% sales charge) | (2.55)% | (3.65)% | 0.65% |
| Class C (incl. contingent deferred sales charge) | (0.48)% | (3.45)% | 0.50% |
| Class I | 1.50% | (2.47)% | 1.53% |
Prior to October 1, 2006, the fund was named Fidelity Advisor® Natural Resources Fund, and the fund operated under certain different investment policies and compared its performance to a different additional index. The fund's historical performance may not represent its current investment policies.
Class C shares' contingent deferred sales charges included in the past one year, past five years and past ten years total return figures are 1%, 0% and 0%, respectively.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Energy Fund - Class A on July 31, 2006, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
| Period Ending Values | ||
|
| $10,656 | Fidelity Advisor® Energy Fund - Class A |
|
| $21,089 | S&P 500® Index |
Fidelity Advisor® Energy Fund
Management's Discussion of Fund Performance
Market Recap: U.S. equities gained modestly for the year ending July 31, 2016, overcoming persistent concern about global economic growth, uncertainty regarding U.S. monetary policy and the U.K.’s late-June vote to leave the European Union, dubbed Brexit. The S&P 500® index rose 5.61%, with larger-cap, value-oriented stocks and defensive sectors shining brightest. Volatility peaked in the early weeks of 2016, as continued oil-price weakness and U.S.-dollar strength pushed the S&P 500® to its worst January since 2009. Markets then rose beginning in February amid U.S. job gains, a broad rally in energy and materials markets, global economic stimulus and perceived softening of monetary policy by the U.S. Federal Reserve. The June 23 Brexit vote surprised markets and resulted in a sharp two-day decline for stocks, followed by a rebound as investor sentiment shifted and remained positive through July 31. For the year, dividend-rich telecom services (+26%), utilities (+23%) and consumer staples (+12%) led the way amid strong investor demand for yield. Industrials (+10%) and information technology (+10%) also outperformed, as did materials (+8%), despite a weak commodities environment overall. Conversely, a strong run for real estate stocks couldn’t keep financials (-4%) from losing ground, as low interest rates continued to squeeze bank profits. Comments from Portfolio Manager John Dowd: For the year, the fund’s share classes (excluding sales charges, if applicable) posted modest gains, outperforming the 0.16% return of its sector benchmark, the MSCI U.S. IMI Energy 25/50 Index, but lagging the broad-based S&P 500® index. Energy stocks had a volatile year, falling to multiyear lows in January before rebounding in the period's second half amid higher global crude oil prices. Versus the MSCI index, stock picking among oil & gas exploration & production (E&P) companies was by far the biggest contributor to the fund’s performance. Our strategy includes a heavy focus on E&Ps that own prime acreage within major U.S. shale formations. Contributors here included Newfield Exploration and Diamondback Energy, both among the fund's biggest holdings at period end. Elsewhere, a modest underweighting in the hard hit storage & transportation subindustry helped, where timely positioning in pipeline company Kinder Morgan was the fund's top relative contributor. Conversely, a sizable underweighting in the strong integrated oil & gas segment significantly curbed results, especially underexposure to index stalwarts Exxon Mobil and Chevron. Both stocks beat the benchmark the past 12 months due to their defensive nature. Stock picking in the equipment & services subindustry detracted, including an overweighting in Baker Hughes.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Fidelity Advisor® Energy Fund
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Schlumberger Ltd. | 6.8 | 8.3 |
| EOG Resources, Inc. | 6.1 | 6.3 |
| Baker Hughes, Inc. | 4.7 | 3.7 |
| Noble Energy, Inc. | 4.6 | 2.7 |
| Newfield Exploration Co. | 4.6 | 3.4 |
| Anadarko Petroleum Corp. | 4.3 | 3.7 |
| Chevron Corp. | 3.4 | 2.7 |
| Diamondback Energy, Inc. | 3.2 | 3.5 |
| Hess Corp. | 3.0 | 1.6 |
| Cimarex Energy Co. | 3.0 | 4.4 |
| 43.7 |
Top Industries (% of fund's net assets)
| As of July 31, 2016 | ||
| Oil, Gas & Consumable Fuels | 78.9% | |
| Energy Equipment & Services | 17.8% | |
| Independent Power and Renewable Electricity Producers | 0.8% | |
| Chemicals | 0.7% | |
| Metals & Mining | 0.4% | |
| All Others* | 1.4% | |
| As of January 31, 2016 | ||
| Oil, Gas & Consumable Fuels | 76.2% | |
| Energy Equipment & Services | 18.9% | |
| Chemicals | 1.2% | |
| Independent Power and Renewable Electricity Producers | 0.9% | |
| Semiconductors & Semiconductor Equipment | 0.3% | |
| All Others* | 2.5% | |
* Includes Short-Term investments and Net Other Assets (Liabilities).
Fidelity Advisor® Energy Fund
Investments July 31, 2016
Showing Percentage of Net Assets
| Common Stocks - 98.9% | |||
| Shares | Value | ||
| Chemicals - 0.7% | |||
| Commodity Chemicals - 0.7% | |||
| LyondellBasell Industries NV Class A | 81,100 | $6,103,586 | |
| Electric Utilities - 0.3% | |||
| Electric Utilities - 0.3% | |||
| DONG Energy A/S | 64,900 | 2,643,386 | |
| Energy Equipment & Services - 17.8% | |||
| Oil & Gas Drilling - 0.9% | |||
| Nabors Industries Ltd. | 639,100 | 5,751,900 | |
| Odfjell Drilling A/S (a) | 567,856 | 329,118 | |
| Trinidad Drilling Ltd. | 279,200 | 493,970 | |
| Xtreme Drilling & Coil Services Corp. (a) | 813,202 | 1,501,028 | |
| 8,076,016 | |||
| Oil & Gas Equipment & Services - 16.9% | |||
| Baker Hughes, Inc. | 925,600 | 44,271,448 | |
| Dril-Quip, Inc. (a) | 141,191 | 7,685,026 | |
| Exterran Corp. (a) | 51,700 | 657,624 | |
| Frank's International NV | 667,900 | 8,228,528 | |
| Halliburton Co. | 366,300 | 15,992,658 | |
| Newpark Resources, Inc. (a) | 1,009,600 | 6,380,672 | |
| Oceaneering International, Inc. | 216,273 | 6,029,691 | |
| RigNet, Inc. (a) | 90,000 | 1,075,500 | |
| Schlumberger Ltd. | 796,118 | 64,103,422 | |
| Superior Energy Services, Inc. | 131,100 | 2,093,667 | |
| Tesco Corp. | 214,800 | 1,419,828 | |
| Total Energy Services, Inc. | 38,900 | 381,358 | |
| U.S. Silica Holdings, Inc. | 13,700 | 472,239 | |
| 158,791,661 | |||
| TOTAL ENERGY EQUIPMENT & SERVICES | 166,867,677 | ||
| Independent Power and Renewable Electricity Producers - 0.8% | |||
| Renewable Electricity - 0.8% | |||
| NextEra Energy Partners LP | 249,200 | 7,782,516 | |
| Metals & Mining - 0.4% | |||
| Diversified Metals & Mining - 0.4% | |||
| Hi-Crush Partners LP | 324,103 | 3,749,872 | |
| Oil, Gas & Consumable Fuels - 78.9% | |||
| Coal & Consumable Fuels - 0.4% | |||
| CONSOL Energy, Inc. (b) | 192,400 | 3,728,712 | |
| Integrated Oil & Gas - 7.0% | |||
| Chevron Corp. | 311,709 | 31,943,938 | |
| Exxon Mobil Corp. | 258,461 | 22,990,106 | |
| Occidental Petroleum Corp. | 110,900 | 8,287,557 | |
| Suncor Energy, Inc. | 101,500 | 2,731,750 | |
| 65,953,351 | |||
| Oil & Gas Exploration & Production - 58.0% | |||
| Anadarko Petroleum Corp. | 732,183 | 39,925,939 | |
| Apache Corp. | 334,400 | 17,556,000 | |
| ARC Resources Ltd. (b) | 58,100 | 1,022,140 | |
| Bankers Petroleum Ltd. (a) | 314,900 | 487,189 | |
| Black Stone Minerals LP | 129,091 | 2,015,111 | |
| Cabot Oil & Gas Corp. | 278,800 | 6,877,996 | |
| California Resources Corp. | 1 | 10 | |
| Callon Petroleum Co. (a) | 482,200 | 5,492,258 | |
| Canadian Natural Resources Ltd. | 29,500 | 893,371 | |
| Carrizo Oil & Gas, Inc. (a) | 388,200 | 12,732,960 | |
| Cimarex Energy Co. | 234,947 | 28,198,339 | |
| Concho Resources, Inc. (a) | 145,600 | 18,083,520 | |
| ConocoPhillips Co. | 486,200 | 19,846,684 | |
| Continental Resources, Inc. (a) | 302,100 | 13,307,505 | |
| Denbury Resources, Inc. | 177,000 | 513,300 | |
| Devon Energy Corp. | 352,600 | 13,497,528 | |
| Diamondback Energy, Inc. | 338,800 | 29,743,252 | |
| Eclipse Resources Corp. (a) | 122,716 | 386,555 | |
| EOG Resources, Inc. | 694,786 | 56,764,016 | |
| EQT Corp. | 13,000 | 947,180 | |
| Evolution Petroleum Corp. | 42,495 | 231,598 | |
| Gran Tierra Energy, Inc. (Canada) (a) | 408,200 | 1,131,761 | |
| Gulfport Energy Corp. (a) | 109,100 | 3,173,719 | |
| Hess Corp. | 529,900 | 28,429,135 | |
| Marathon Oil Corp. | 1,188,800 | 16,215,232 | |
| Matador Resources Co. (a) | 19,600 | 413,364 | |
| Murphy Oil Corp. | 97,400 | 2,671,682 | |
| Newfield Exploration Co. (a) | 993,500 | 43,018,550 | |
| Noble Energy, Inc. | 1,208,508 | 43,167,906 | |
| Oasis Petroleum, Inc. (a) | 195,600 | 1,486,560 | |
| Parsley Energy, Inc. Class A (a) | 564,100 | 16,082,491 | |
| PDC Energy, Inc. (a) | 336,288 | 18,418,494 | |
| Pioneer Natural Resources Co. | 164,416 | 26,729,109 | |
| QEP Resources, Inc. | 352,400 | 6,413,680 | |
| Range Resources Corp. | 46,100 | 1,858,291 | |
| Rice Energy, Inc. (a) | 806,239 | 18,801,493 | |
| Ring Energy, Inc. (a) | 269,632 | 2,140,878 | |
| RSP Permian, Inc. (a) | 240,800 | 8,656,760 | |
| Seven Generations Energy Ltd. (a) | 468,500 | 9,831,808 | |
| Seven Generations Energy Ltd. rights (a) | 39,100 | 817,247 | |
| SM Energy Co. | 526,200 | 14,275,806 | |
| Southwestern Energy Co. (a) | 243,800 | 3,554,604 | |
| TAG Oil Ltd. (a) | 342,200 | 199,190 | |
| Whiting Petroleum Corp. (a) | 1,064,000 | 7,841,680 | |
| 543,851,891 | |||
| Oil & Gas Refining & Marketing - 5.1% | |||
| Keyera Corp. | 291,100 | 8,356,319 | |
| Phillips 66 Co. | 288,700 | 21,958,522 | |
| Valero Energy Corp. | 232,826 | 12,172,143 | |
| World Fuel Services Corp. | 119,270 | 5,677,252 | |
| 48,164,236 | |||
| Oil & Gas Storage & Transport - 8.4% | |||
| Cheniere Energy Partners LP Holdings LLC | 201,400 | 4,078,350 | |
| Cheniere Energy, Inc. (a) | 370,300 | 15,489,649 | |
| Enterprise Products Partners LP | 612,300 | 17,432,181 | |
| Gener8 Maritime, Inc. (a) | 79,800 | 424,536 | |
| Golar LNG Ltd. (b) | 169,900 | 2,881,504 | |
| Kinder Morgan, Inc. | 400,400 | 8,140,132 | |
| Magellan Midstream Partners LP | 15,334 | 1,117,235 | |
| Rice Midstream Partners LP | 118,600 | 2,243,912 | |
| Shell Midstream Partners LP | 87,900 | 2,857,629 | |
| Targa Resources Corp. | 208,200 | 7,757,532 | |
| Teekay LNG Partners LP | 64,100 | 653,820 | |
| The Williams Companies, Inc. | 553,800 | 13,274,586 | |
| Williams Partners LP | 69,000 | 2,576,460 | |
| 78,927,526 | |||
| TOTAL OIL, GAS & CONSUMABLE FUELS | 740,625,716 | ||
| TOTAL COMMON STOCKS | |||
| (Cost $849,643,279) | 927,772,753 | ||
| Money Market Funds - 2.2% | |||
| Fidelity Cash Central Fund, 0.42% (c) | 15,113,311 | 15,113,311 | |
| Fidelity Securities Lending Cash Central Fund, 0.45% (c)(d) | 5,917,325 | 5,917,325 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $21,030,636) | 21,030,636 | ||
| TOTAL INVESTMENT PORTFOLIO - 101.1% | |||
| (Cost $870,673,915) | 948,803,389 | ||
| NET OTHER ASSETS (LIABILITIES) - (1.1)% | (10,430,356) | ||
| NET ASSETS - 100% | $938,373,033 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(d) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
| Fund | Income earned |
| Fidelity Cash Central Fund | $39,144 |
| Fidelity Securities Lending Cash Central Fund | 82,464 |
| Total | $121,608 |
Investment Valuation
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
| United States of America | 87.1% |
| Curacao | 6.8% |
| Canada | 3.2% |
| Netherlands | 1.6% |
| Others (Individually Less Than 1%) | 1.3% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Energy Fund
Financial Statements
Statement of Assets and Liabilities
| July 31, 2016 | ||
| Assets | ||
| Investment in securities, at value (including securities loaned of $5,785,329) — See accompanying schedule: Unaffiliated issuers (cost $849,643,279) | $927,772,753 | |
| Fidelity Central Funds (cost $21,030,636) | 21,030,636 | |
| Total Investments (cost $870,673,915) | $948,803,389 | |
| Receivable for investments sold | 15,239,321 | |
| Receivable for fund shares sold | 1,152,378 | |
| Dividends receivable | 822,918 | |
| Distributions receivable from Fidelity Central Funds | 8,525 | |
| Other receivables | 62,439 | |
| Total assets | 966,088,970 | |
| Liabilities | ||
| Payable for investments purchased | $19,449,379 | |
| Payable for fund shares redeemed | 1,299,112 | |
| Accrued management fee | 429,317 | |
| Distribution and service plan fees payable | 338,927 | |
| Other affiliated payables | 206,852 | |
| Other payables and accrued expenses | 75,025 | |
| Collateral on securities loaned, at value | 5,917,325 | |
| Total liabilities | 27,715,937 | |
| Net Assets | $938,373,033 | |
| Net Assets consist of: | ||
| Paid in capital | $1,045,138,377 | |
| Distributions in excess of net investment income | (372,614) | |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (184,522,223) | |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 78,129,493 | |
| Net Assets | $938,373,033 | |
| Calculation of Maximum Offering Price | ||
| Class A: | ||
| Net Asset Value and redemption price per share ($347,885,126 ÷ 11,179,834 shares) | $31.12 | |
| Maximum offering price per share (100/94.25 of $31.12) | $33.02 | |
| Class T: | ||
| Net Asset Value and redemption price per share ($155,855,548 ÷ 4,897,966 shares) | $31.82 | |
| Maximum offering price per share (100/96.50 of $31.82) | $32.97 | |
| Class C: | ||
| Net Asset Value and offering price per share ($240,948,868 ÷ 8,398,352 shares)(a) | $28.69 | |
| Class I: | ||
| Net Asset Value, offering price and redemption price per share ($193,683,491 ÷ 5,907,775 shares) | $32.78 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Year ended July 31, 2016 | ||
| Investment Income | ||
| Dividends | $12,788,146 | |
| Income from Fidelity Central Funds (including $82,464 from security lending) | 121,608 | |
| Total income | 12,909,754 | |
| Expenses | ||
| Management fee | $4,285,851 | |
| Transfer agent fees | 1,931,850 | |
| Distribution and service plan fees | 3,343,650 | |
| Accounting and security lending fees | 274,717 | |
| Custodian fees and expenses | 28,294 | |
| Independent trustees' fees and expenses | 15,498 | |
| Registration fees | 130,848 | |
| Audit | 52,144 | |
| Legal | 8,819 | |
| Miscellaneous | 9,470 | |
| Total expenses before reductions | 10,081,141 | |
| Expense reductions | (100,624) | 9,980,517 |
| Net investment income (loss) | 2,929,237 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | (124,803,147) | |
| Foreign currency transactions | 9,645 | |
| Total net realized gain (loss) | (124,793,502) | |
| Change in net unrealized appreciation (depreciation) on: Investment securities | 145,164,293 | |
| Assets and liabilities in foreign currencies | 3,194 | |
| Total change in net unrealized appreciation (depreciation) | 145,167,487 | |
| Net gain (loss) | 20,373,985 | |
| Net increase (decrease) in net assets resulting from operations | $23,303,222 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended July 31, 2016 | Year ended July 31, 2015 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $2,929,237 | $4,666,139 |
| Net realized gain (loss) | (124,793,502) | (60,209,572) |
| Change in net unrealized appreciation (depreciation) | 145,167,487 | (212,688,818) |
| Net increase (decrease) in net assets resulting from operations | 23,303,222 | (268,232,251) |
| Distributions to shareholders from net investment income | (3,958,354) | (2,612,091) |
| Distributions to shareholders from net realized gain | – | (36,171,815) |
| Total distributions | (3,958,354) | (38,783,906) |
| Share transactions - net increase (decrease) | 161,035,631 | 190,554,548 |
| Redemption fees | 63,717 | 54,564 |
| Total increase (decrease) in net assets | 180,444,216 | (116,407,045) |
| Net Assets | ||
| Beginning of period | 757,928,817 | 874,335,862 |
| End of period | $938,373,033 | $757,928,817 |
| Other Information | ||
| Undistributed net investment income end of period | $– | $1,038,469 |
| Distributions in excess of net investment income end of period | $(372,614) | $– |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Energy Fund Class A
| Years ended July 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $30.96 | $45.71 | $40.59 | $33.71 | $40.17 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .16 | .28 | .15 | .23 | .25 |
| Net realized and unrealized gain (loss) | .20 | (12.89) | 7.06 | 6.81 | (6.50) |
| Total from investment operations | .36 | (12.61) | 7.21 | 7.04 | (6.25) |
| Distributions from net investment income | (.20) | (.18)B | (.17) | (.16) | (.21) |
| Distributions from net realized gain | – | (1.96)B | (1.93) | – | – |
| Total distributions | (.20) | (2.14) | (2.09) | (.16) | (.21) |
| Redemption fees added to paid in capitalA,C | – | – | – | – | – |
| Net asset value, end of period | $31.12 | $30.96 | $45.71 | $40.59 | $33.71 |
| Total ReturnD,E | 1.25% | (28.92)% | 18.46% | 20.94% | (15.58)% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | 1.12% | 1.12% | 1.12% | 1.16% | 1.17% |
| Expenses net of fee waivers, if any | 1.12% | 1.12% | 1.12% | 1.16% | 1.17% |
| Expenses net of all reductions | 1.11% | 1.11% | 1.12% | 1.15% | 1.17% |
| Net investment income (loss) | .54% | .76% | .36% | .61% | .72% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $347,885 | $292,288 | $369,400 | $279,798 | $253,332 |
| Portfolio turnover rateH | 85% | 61% | 112% | 68% | 88% |
A Calculated based on average shares outstanding during the period.
B The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Energy Fund Class T
| Years ended July 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $31.63 | $46.64 | $41.38 | $34.40 | $41.04 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .08 | .20 | .06 | .15 | .18 |
| Net realized and unrealized gain (loss) | .22 | (13.18) | 7.21 | 6.95 | (6.65) |
| Total from investment operations | .30 | (12.98) | 7.27 | 7.10 | (6.47) |
| Distributions from net investment income | (.11) | (.08)B | (.08) | (.12) | (.17) |
| Distributions from net realized gain | – | (1.95)B | (1.93) | – | – |
| Total distributions | (.11) | (2.03) | (2.01) | (.12) | (.17) |
| Redemption fees added to paid in capitalA,C | – | – | – | – | – |
| Net asset value, end of period | $31.82 | $31.63 | $46.64 | $41.38 | $34.40 |
| Total ReturnD,E | .98% | (29.09)% | 18.19% | 20.70% | (15.77)% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | 1.38% | 1.36% | 1.34% | 1.36% | 1.38% |
| Expenses net of fee waivers, if any | 1.38% | 1.35% | 1.34% | 1.36% | 1.38% |
| Expenses net of all reductions | 1.37% | 1.35% | 1.34% | 1.35% | 1.38% |
| Net investment income (loss) | .28% | .52% | .14% | .40% | .50% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $155,856 | $164,848 | $245,828 | $223,248 | $215,488 |
| Portfolio turnover rateH | 85% | 61% | 112% | 68% | 88% |
A Calculated based on average shares outstanding during the period.
B The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Energy Fund Class C
| Years ended July 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $28.58 | $42.40 | $37.92 | $31.63 | $37.88 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | (.05) | .01 | (.15) | (.04) | (.01) |
| Net realized and unrealized gain (loss) | .19 | (11.93) | 6.57 | 6.38 | (6.13) |
| Total from investment operations | .14 | (11.92) | 6.42 | 6.34 | (6.14) |
| Distributions from net investment income | (.03) | (.03)B | (.01) | (.05) | (.11) |
| Distributions from net realized gain | – | (1.88)B | (1.93) | – | – |
| Total distributions | (.03) | (1.90)C | (1.94) | (.05) | (.11) |
| Redemption fees added to paid in capitalA,D | – | – | – | – | – |
| Net asset value, end of period | $28.69 | $28.58 | $42.40 | $37.92 | $31.63 |
| Total ReturnE,F | .52% | (29.44)% | 17.57% | 20.08% | (16.22)% |
| Ratios to Average Net AssetsG,H | |||||
| Expenses before reductions | 1.84% | 1.85% | 1.86% | 1.90% | 1.92% |
| Expenses net of fee waivers, if any | 1.84% | 1.85% | 1.86% | 1.90% | 1.92% |
| Expenses net of all reductions | 1.83% | 1.85% | 1.86% | 1.88% | 1.91% |
| Net investment income (loss) | (.18)% | .02% | (.38)% | (.13)% | (.03)% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $240,949 | $162,322 | $130,881 | $99,833 | $93,504 |
| Portfolio turnover rateI | 85% | 61% | 112% | 68% | 88% |
A Calculated based on average shares outstanding during the period.
B The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
C Total distributions of $1.90 per share is comprised of distributions from net investment income of $.027 and distributions from net realized gain of $1.877 per share.
D Amount represents less than $.005 per share.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the contingent deferred sales charge.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Energy Fund Class I
| Years ended July 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $32.62 | $48.05 | $42.55 | $35.28 | $41.95 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .25 | .39 | .28 | .35 | .37 |
| Net realized and unrealized gain (loss) | .20 | (13.56) | 7.42 | 7.12 | (6.79) |
| Total from investment operations | .45 | (13.17) | 7.70 | 7.47 | (6.42) |
| Distributions from net investment income | (.29) | (.30)B | (.27) | (.20) | (.25) |
| Distributions from net realized gain | – | (1.96)B | (1.93) | – | – |
| Total distributions | (.29) | (2.26) | (2.20) | (.20) | (.25) |
| Redemption fees added to paid in capitalA,C | – | – | – | – | – |
| Net asset value, end of period | $32.78 | $32.62 | $48.05 | $42.55 | $35.28 |
| Total ReturnD | 1.50% | (28.73)% | 18.80% | 21.26% | (15.31)% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | .85% | .85% | .85% | .88% | .86% |
| Expenses net of fee waivers, if any | .85% | .85% | .85% | .88% | .86% |
| Expenses net of all reductions | .83% | .85% | .85% | .86% | .85% |
| Net investment income (loss) | .82% | 1.02% | .63% | .89% | 1.03% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $193,683 | $130,308 | $110,795 | $65,034 | $56,692 |
| Portfolio turnover rateG | 85% | 61% | 112% | 68% | 88% |
A Calculated based on average shares outstanding during the period.
B The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Financial Services Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended July 31, 2016 | Past 1 year | Past 5 years | Past 10 years |
| Class A (incl. 5.75% sales charge) | (11.55)% | 8.32% | (1.71)% |
| Class T (incl. 3.50% sales charge) | (9.71)% | 8.53% | (1.74)% |
| Class C (incl. contingent deferred sales charge) | (7.81)% | 8.78% | (1.86)% |
| Class I | (5.89)% | 9.95% | (0.83)% |
Class C shares' contingent deferred sales charges included in the past one year, past five years and past ten years total return figures are 1%, 0% and 0%, respectively.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Financial Services Fund - Class A on July 31, 2006, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
| Period Ending Values | ||
|
| $8,412 | Fidelity Advisor® Financial Services Fund - Class A |
|
| $21,089 | S&P 500® Index |
Fidelity Advisor® Financial Services Fund
Management's Discussion of Fund Performance
Market Recap: U.S. equities gained modestly for the year ending July 31, 2016, overcoming persistent concern about global economic growth, uncertainty regarding U.S. monetary policy and the U.K.’s late-June vote to leave the European Union, dubbed Brexit. The S&P 500® index rose 5.61%, with larger-cap, value-oriented stocks and defensive sectors shining brightest. Volatility peaked in the early weeks of 2016, as continued oil-price weakness and U.S.-dollar strength pushed the S&P 500® to its worst January since 2009. Markets then rose beginning in February amid U.S. job gains, a broad rally in energy and materials markets, global economic stimulus and perceived softening of monetary policy by the U.S. Federal Reserve. The June 23 Brexit vote surprised markets and resulted in a sharp two-day decline for stocks, followed by a rebound as investor sentiment shifted and remained positive through July 31. For the year, dividend-rich telecom services (+26%), utilities (+23%) and consumer staples (+12%) led the way amid strong investor demand for yield. Industrials (+10%) and information technology (+10%) also outperformed, as did materials (+8%), despite a weak commodities environment overall. Conversely, a strong run for real estate stocks couldn’t keep financials (-4%) from losing ground, as low interest rates continued to squeeze bank profits. Comments from Portfolio Manager Christopher Lee: For the year, the fund’s share classes lagged the -1.41% return of the MSCI U.S. IMI Financials 25/50 Index by about 5 percentage points. Both the fund and benchmark finished well behind the broad-based S&P 500®. Versus the benchmark, the fund’s lack of exposure to retail REITs (real estate investment trusts) detracted, as did stocks picks in the asset management & custody banks group and positioning in consumer finance. Individual disappointments included diversified REIT NorthStar Realty Finance and subprime lender OneMain Holdings, both of which were pressured by their debt levels. NorthStar’s stock also fell as some expected catalysts failed to materialize, while worries about a potential increase in defaults and delinquencies weighed on OneMain’s return. NorthStar and OneMain were not in the portfolio at period end. Shares of real estate services company Realogy Holdings sank amid concern that higher interest rates would slow the U.S. housing recovery. Our underweighting in the weak-performing investment banking & brokerage group and positioning in the life & health insurance segment gave a modest boost to relative performance. Top individual contributors, however, came from elsewhere and included health care REIT Ventas, which benefited from stable cash flows related to its long-term leases.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Note to shareholders: On September 1, 2016, real estate became a standalone sector under the S&P and MSCI Global Industry Classification Standard, used as the basis for many equity market indices. With this change, the structure of the fund’s supplemental sector benchmark was modified to exclude real estate as an industry group from the financials sector, with the exception of mortgage-related REITs. As a result, there may be a decrease in the fund’s exposure to the real estate industry. Additionally on September 1, 2016, the fund’s sector benchmark changed to the MSCI U.S. IMI Financials 5% Capped Index. This capped index precludes any single issuer from representing more than 5% of the index at the time of quarterly rebalance.Fidelity Advisor® Financial Services Fund
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Berkshire Hathaway, Inc. Class B | 5.9 | 5.4 |
| Bank of America Corp. | 4.2 | 5.0 |
| Chubb Ltd. | 4.1 | 3.8 |
| Citigroup, Inc. | 3.9 | 4.9 |
| American Tower Corp. | 3.9 | 3.5 |
| Wells Fargo & Co. | 3.7 | 3.7 |
| U.S. Bancorp | 3.6 | 3.8 |
| JPMorgan Chase & Co. | 3.3 | 5.2 |
| Ventas, Inc. | 2.7 | 2.0 |
| Capital One Financial Corp. | 2.7 | 3.1 |
| 38.0 |
Top Industries (% of fund's net assets)
| As of July 31, 2016 | ||
| Banks | 24.7% | |
| Real Estate Investment Trusts | 22.9% | |
| Insurance | 18.6% | |
| Diversified Financial Services | 9.7% | |
| Capital Markets | 6.5% | |
| All Others* | 17.6% | |
| As of January 31, 2016 | ||
| Banks | 28.5% | |
| Real Estate Investment Trusts | 17.1% | |
| Insurance | 16.3% | |
| Capital Markets | 8.0% | |
| Diversified Financial Services | 7.8% | |
| All Others* | 22.3% | |
* Includes Short-Term investments and Net Other Assets (Liabilities).
Fidelity Advisor® Financial Services Fund
Investments July 31, 2016
Showing Percentage of Net Assets
| Common Stocks - 96.2% | |||
| Shares | Value | ||
| Banks - 24.7% | |||
| Diversified Banks - 19.3% | |||
| Bank of America Corp. | 558,456 | $8,092,027 | |
| Citigroup, Inc. | 174,365 | 7,638,931 | |
| Comerica, Inc. | 27,419 | 1,240,436 | |
| JPMorgan Chase & Co. | 101,931 | 6,520,526 | |
| U.S. Bancorp | 164,508 | 6,937,302 | |
| Wells Fargo & Co. | 148,648 | 7,130,645 | |
| 37,559,867 | |||
| Regional Banks - 5.4% | |||
| CoBiz, Inc. | 74,291 | 917,494 | |
| Huntington Bancshares, Inc. | 211,600 | 2,010,200 | |
| M&T Bank Corp. | 27,400 | 3,138,944 | |
| Popular, Inc. | 52,200 | 1,758,618 | |
| Preferred Bank, Los Angeles | 12,400 | 405,108 | |
| SunTrust Banks, Inc. | 54,900 | 2,321,721 | |
| 10,552,085 | |||
| TOTAL BANKS | 48,111,952 | ||
| Capital Markets - 6.5% | |||
| Asset Management & Custody Banks - 3.2% | |||
| Affiliated Managers Group, Inc. (a) | 6,654 | 976,674 | |
| Invesco Ltd. | 50,938 | 1,486,371 | |
| Northern Trust Corp. | 29,400 | 1,987,146 | |
| Oaktree Capital Group LLC Class A | 37,600 | 1,745,392 | |
| 6,195,583 | |||
| Investment Banking & Brokerage - 3.3% | |||
| E*TRADE Financial Corp. (a) | 75,700 | 1,898,556 | |
| Goldman Sachs Group, Inc. | 23,950 | 3,803,500 | |
| Virtu Financial, Inc. Class A | 48,100 | 827,320 | |
| 6,529,376 | |||
| TOTAL CAPITAL MARKETS | 12,724,959 | ||
| Consumer Finance - 5.2% | |||
| Consumer Finance - 5.2% | |||
| American Express Co. | 29,300 | 1,888,678 | |
| Capital One Financial Corp. | 78,338 | 5,254,913 | |
| Synchrony Financial | 105,800 | 2,949,704 | |
| 10,093,295 | |||
| Diversified Financial Services - 9.7% | |||
| Multi-Sector Holdings - 5.9% | |||
| Berkshire Hathaway, Inc. Class B (a) | 80,269 | 11,580,406 | |
| Specialized Finance - 3.8% | |||
| CME Group, Inc. | 29,000 | 2,964,960 | |
| IntercontinentalExchange, Inc. | 16,464 | 4,349,789 | |
| 7,314,749 | |||
| TOTAL DIVERSIFIED FINANCIAL SERVICES | 18,895,155 | ||
| Insurance - 18.6% | |||
| Insurance Brokers - 4.1% | |||
| Brown & Brown, Inc. | 90,100 | 3,303,066 | |
| Marsh & McLennan Companies, Inc. | 72,500 | 4,766,875 | |
| 8,069,941 | |||
| Life & Health Insurance - 2.2% | |||
| Torchmark Corp. | 70,480 | 4,360,598 | |
| Multi-Line Insurance - 0.6% | |||
| American Financial Group, Inc. | 14,600 | 1,067,260 | |
| Property & Casualty Insurance - 10.7% | |||
| Allied World Assurance Co. Holdings AG | 75,200 | 3,082,448 | |
| Allstate Corp. | 70,490 | 4,816,582 | |
| Chubb Ltd. | 63,957 | 8,011,254 | |
| FNF Group | 129,250 | 4,868,848 | |
| 20,779,132 | |||
| Reinsurance - 1.0% | |||
| Reinsurance Group of America, Inc. | 19,500 | 1,935,375 | |
| TOTAL INSURANCE | 36,212,306 | ||
| IT Services - 5.6% | |||
| Data Processing & Outsourced Services - 5.6% | |||
| MasterCard, Inc. Class A | 29,400 | 2,800,056 | |
| The Western Union Co. | 117,200 | 2,344,000 | |
| Visa, Inc. Class A | 64,620 | 5,043,591 | |
| WEX, Inc. (a) | 8,000 | 749,440 | |
| 10,937,087 | |||
| Professional Services - 0.9% | |||
| Research & Consulting Services - 0.9% | |||
| Verisk Analytics, Inc. (a) | 20,000 | 1,705,600 | |
| Real Estate Investment Trusts - 22.9% | |||
| Diversified REITs - 1.8% | |||
| Store Capital Corp. | 31,300 | 976,247 | |
| VEREIT, Inc. | 235,100 | 2,600,206 | |
| 3,576,453 | |||
| Health Care REIT's - 2.7% | |||
| Ventas, Inc. | 69,300 | 5,277,888 | |
| Industrial REITs - 1.2% | |||
| DCT Industrial Trust, Inc. | 33,900 | 1,702,458 | |
| Duke Realty LP | 24,700 | 711,113 | |
| 2,413,571 | |||
| Mortgage REITs - 2.2% | |||
| American Capital Agency Corp. | 95,700 | 1,874,763 | |
| American Capital Mortgage Investment Corp. | 56,100 | 917,796 | |
| Redwood Trust, Inc. | 103,800 | 1,481,226 | |
| 4,273,785 | |||
| Office REITs - 3.4% | |||
| Boston Properties, Inc. | 30,200 | 4,292,326 | |
| Douglas Emmett, Inc. | 62,700 | 2,385,108 | |
| 6,677,434 | |||
| Residential REITs - 4.5% | |||
| American Campus Communities, Inc. | 54,873 | 2,966,983 | |
| Equity Residential (SBI) | 33,300 | 2,264,067 | |
| Essex Property Trust, Inc. | 3,900 | 912,132 | |
| UDR, Inc. | 69,100 | 2,572,593 | |
| 8,715,775 | |||
| Specialized REITs - 7.1% | |||
| American Tower Corp. | 64,900 | 7,513,473 | |
| Outfront Media, Inc. | 78,330 | 1,822,739 | |
| Public Storage | 18,850 | 4,503,642 | |
| 13,839,854 | |||
| TOTAL REAL ESTATE INVESTMENT TRUSTS | 44,774,760 | ||
| Real Estate Management & Development - 1.2% | |||
| Real Estate Services - 1.2% | |||
| Realogy Holdings Corp. (a) | 78,400 | 2,429,616 | |
| Software - 0.1% | |||
| Application Software - 0.1% | |||
| SS&C Technologies Holdings, Inc. | 5,900 | 190,098 | |
| Thrifts & Mortgage Finance - 0.5% | |||
| Thrifts & Mortgage Finance - 0.5% | |||
| MGIC Investment Corp. (a) | 96,600 | 694,554 | |
| Radian Group, Inc. | 27,800 | 358,620 | |
| 1,053,174 | |||
| Trading Companies & Distributors - 0.3% | |||
| Trading Companies & Distributors - 0.3% | |||
| AerCap Holdings NV (a) | 16,800 | 613,368 | |
| TOTAL COMMON STOCKS | |||
| (Cost $183,201,846) | 187,741,370 | ||
| Money Market Funds - 3.4% | |||
| Fidelity Cash Central Fund, 0.42% (b) | |||
| (Cost $6,714,252) | 6,714,252 | 6,714,252 | |
| TOTAL INVESTMENT PORTFOLIO - 99.6% | |||
| (Cost $189,916,098) | 194,455,622 | ||
| NET OTHER ASSETS (LIABILITIES) - 0.4% | 692,172 | ||
| NET ASSETS - 100% | $195,147,794 |
Legend
(a) Non-income producing
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
| Fund | Income earned |
| Fidelity Cash Central Fund | $30,419 |
| Fidelity Securities Lending Cash Central Fund | 2,405 |
| Total | $32,824 |
Investment Valuation
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Financial Services Fund
Financial Statements
Statement of Assets and Liabilities
| July 31, 2016 | ||
| Assets | ||
| Investment in securities, at value — See accompanying schedule: Unaffiliated issuers (cost $183,201,846) | $187,741,370 | |
| Fidelity Central Funds (cost $6,714,252) | 6,714,252 | |
| Total Investments (cost $189,916,098) | $194,455,622 | |
| Receivable for investments sold | 1,228,396 | |
| Receivable for fund shares sold | 206,470 | |
| Dividends receivable | 180,052 | |
| Distributions receivable from Fidelity Central Funds | 2,304 | |
| Other receivables | 7,745 | |
| Total assets | 196,080,589 | |
| Liabilities | ||
| Payable for investments purchased | $332,521 | |
| Payable for fund shares redeemed | 348,283 | |
| Accrued management fee | 89,382 | |
| Distribution and service plan fees payable | 71,947 | |
| Other affiliated payables | 46,798 | |
| Other payables and accrued expenses | 43,864 | |
| Total liabilities | 932,795 | |
| Net Assets | $195,147,794 | |
| Net Assets consist of: | ||
| Paid in capital | $238,579,967 | |
| Distributions in excess of net investment income | (122,111) | |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (47,848,748) | |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 4,538,686 | |
| Net Assets | $195,147,794 | |
| Calculation of Maximum Offering Price | ||
| Class A: | ||
| Net Asset Value and redemption price per share ($97,011,040 ÷ 6,288,875 shares) | $15.43 | |
| Maximum offering price per share (100/94.25 of $15.43) | $16.37 | |
| Class T: | ||
| Net Asset Value and redemption price per share ($30,044,143 ÷ 1,965,375 shares) | $15.29 | |
| Maximum offering price per share (100/96.50 of $15.29) | $15.84 | |
| Class C: | ||
| Net Asset Value and offering price per share ($47,504,897 ÷ 3,265,337 shares)(a) | $14.55 | |
| Class I: | ||
| Net Asset Value, offering price and redemption price per share ($20,587,714 ÷ 1,299,803 shares) | $15.84 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Year ended July 31, 2016 | ||
| Investment Income | ||
| Dividends | $4,076,690 | |
| Income from Fidelity Central Funds (including $2,405 from security lending) | 32,824 | |
| Total income | 4,109,514 | |
| Expenses | ||
| Management fee | $1,180,118 | |
| Transfer agent fees | 523,037 | |
| Distribution and service plan fees | 909,593 | |
| Accounting and security lending fees | 83,786 | |
| Custodian fees and expenses | 15,774 | |
| Independent trustees' fees and expenses | 4,404 | |
| Registration fees | 70,868 | |
| Audit | 51,417 | |
| Legal | 4,622 | |
| Miscellaneous | 2,474 | |
| Total expenses before reductions | 2,846,093 | |
| Expense reductions | (19,713) | 2,826,380 |
| Net investment income (loss) | 1,283,134 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | (1,132,423) | |
| Foreign currency transactions | 29,827 | |
| Total net realized gain (loss) | (1,102,596) | |
| Change in net unrealized appreciation (depreciation) on: Investment securities | (19,199,877) | |
| Assets and liabilities in foreign currencies | (761) | |
| Total change in net unrealized appreciation (depreciation) | (19,200,638) | |
| Net gain (loss) | (20,303,234) | |
| Net increase (decrease) in net assets resulting from operations | $(19,020,100) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended July 31, 2016 | Year ended July 31, 2015 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $1,283,134 | $836,701 |
| Net realized gain (loss) | (1,102,596) | 12,569,347 |
| Change in net unrealized appreciation (depreciation) | (19,200,638) | 5,448,999 |
| Net increase (decrease) in net assets resulting from operations | (19,020,100) | 18,855,047 |
| Distributions to shareholders from net investment income | (957,546) | (1,174,436) |
| Distributions to shareholders from net realized gain | (189,767) | – |
| Total distributions | (1,147,313) | (1,174,436) |
| Share transactions - net increase (decrease) | (18,476,090) | 48,366,952 |
| Redemption fees | 14,186 | 16,144 |
| Total increase (decrease) in net assets | (38,629,317) | 66,063,707 |
| Net Assets | ||
| Beginning of period | 233,777,111 | 167,713,404 |
| End of period | $195,147,794 | $233,777,111 |
| Other Information | ||
| Distributions in excess of net investment income end of period | $(122,111) | $(213,877) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Financial Services Fund Class A
| Years ended July 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $16.53 | $14.97 | $13.41 | $10.18 | $10.06 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .11 | .10 | .10 | .15 | .07 |
| Net realized and unrealized gain (loss) | (1.13) | 1.59B | 1.55 | 3.18 | .06 |
| Total from investment operations | (1.02) | 1.69 | 1.65 | 3.33 | .13 |
| Distributions from net investment income | (.07) | (.13) | (.08) | (.10) | (.01) |
| Distributions from net realized gain | (.01) | – | (.01) | – | – |
| Total distributions | (.08) | (.13) | (.09) | (.10) | (.01) |
| Redemption fees added to paid in capitalA,C | – | – | – | – | – |
| Net asset value, end of period | $15.43 | $16.53 | $14.97 | $13.41 | $10.18 |
| Total ReturnD,E | (6.15)% | 11.29%B | 12.39% | 32.99% | 1.34% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | 1.15% | 1.17% | 1.22% | 1.29% | 1.28% |
| Expenses net of fee waivers, if any | 1.15% | 1.17% | 1.22% | 1.29% | 1.28% |
| Expenses net of all reductions | 1.15% | 1.17% | 1.22% | 1.21% | 1.20% |
| Net investment income (loss) | .77% | .61% | .68% | 1.31% | .72% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $97,011 | $102,983 | $77,674 | $64,428 | $47,055 |
| Portfolio turnover rateH | 63% | 44% | 49% | 288% | 441% |
A Calculated based on average shares outstanding during the period.
B Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.05 per share. Excluding these litigation proceeds, the total return would have been 10.97%.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Financial Services Fund Class T
| Years ended July 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $16.41 | $14.86 | $13.31 | $10.11 | $10.01 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .07 | .05 | .06 | .12 | .04 |
| Net realized and unrealized gain (loss) | (1.13) | 1.58B | 1.55 | 3.16 | .06 |
| Total from investment operations | (1.06) | 1.63 | 1.61 | 3.28 | .10 |
| Distributions from net investment income | (.05) | (.08) | (.05) | (.08) | –C |
| Distributions from net realized gain | (.01) | – | (.01) | – | – |
| Total distributions | (.06) | (.08) | (.06) | (.08) | –C |
| Redemption fees added to paid in capitalA,C | – | – | – | – | – |
| Net asset value, end of period | $15.29 | $16.41 | $14.86 | $13.31 | $10.11 |
| Total ReturnD,E | (6.43)% | 10.98%B | 12.10% | 32.66% | 1.03% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | 1.45% | 1.45% | 1.48% | 1.55% | 1.54% |
| Expenses net of fee waivers, if any | 1.45% | 1.45% | 1.48% | 1.55% | 1.54% |
| Expenses net of all reductions | 1.44% | 1.45% | 1.48% | 1.47% | 1.45% |
| Net investment income (loss) | .47% | .33% | .42% | 1.06% | .46% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $30,044 | $34,314 | $31,596 | $30,576 | $24,367 |
| Portfolio turnover rateH | 63% | 44% | 49% | 288% | 441% |
A Calculated based on average shares outstanding during the period.
B Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.05 per share. Excluding these litigation proceeds, the total return would have been 10.66%.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Financial Services Fund Class C
| Years ended July 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $15.67 | $14.22 | $12.75 | $9.70 | $9.65 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | –B | (.02) | –B | .06 | –B |
| Net realized and unrealized gain (loss) | (1.08) | 1.51C | 1.48 | 3.03 | .05 |
| Total from investment operations | (1.08) | 1.49 | 1.48 | 3.09 | .05 |
| Distributions from net investment income | (.03) | (.04) | (.01) | (.04) | – |
| Distributions from net realized gain | (.01) | – | – | – | – |
| Total distributions | (.04) | (.04) | (.01) | (.04) | – |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – |
| Net asset value, end of period | $14.55 | $15.67 | $14.22 | $12.75 | $9.70 |
| Total ReturnD,E | (6.88)% | 10.45%C | 11.65% | 31.98% | .52% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | 1.90% | 1.90% | 1.94% | 2.03% | 2.03% |
| Expenses net of fee waivers, if any | 1.90% | 1.90% | 1.94% | 2.03% | 2.03% |
| Expenses net of all reductions | 1.89% | 1.90% | 1.93% | 1.96% | 1.94% |
| Net investment income (loss) | .02% | (.12)% | (.03)% | .57% | (.03)% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $47,505 | $50,206 | $36,740 | $29,897 | $20,875 |
| Portfolio turnover rateH | 63% | 44% | 49% | 288% | 441% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.05 per share. Excluding these litigation proceeds, the total return would have been 10.13%.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the contingent deferred sales charge.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Financial Services Fund Class I
| Years ended July 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $16.94 | $15.34 | $13.73 | $10.42 | $10.28 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .17 | .15 | .15 | .20 | .10 |
| Net realized and unrealized gain (loss) | (1.17) | 1.62B | 1.60 | 3.25 | .06 |
| Total from investment operations | (1.00) | 1.77 | 1.75 | 3.45 | .16 |
| Distributions from net investment income | (.09) | (.17) | (.13) | (.14) | (.02) |
| Distributions from net realized gain | (.01) | – | (.01) | – | – |
| Total distributions | (.10) | (.17) | (.14) | (.14) | (.02) |
| Redemption fees added to paid in capitalA,C | – | – | – | – | – |
| Net asset value, end of period | $15.84 | $16.94 | $15.34 | $13.73 | $10.42 |
| Total ReturnD | (5.89)% | 11.61%B | 12.85% | 33.45% | 1.61% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | .85% | .84% | .87% | .96% | .98% |
| Expenses net of fee waivers, if any | .85% | .84% | .87% | .96% | .98% |
| Expenses net of all reductions | .84% | .84% | .86% | .88% | .89% |
| Net investment income (loss) | 1.07% | .94% | 1.04% | 1.65% | 1.02% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $20,588 | $42,443 | $16,164 | $9,275 | $5,596 |
| Portfolio turnover rateG | 63% | 44% | 49% | 288% | 441% |
A Calculated based on average shares outstanding during the period.
B Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.05 per share. Excluding these litigation proceeds, the total return would have been 11.29%.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Health Care Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended July 31, 2016 | Past 1 year | Past 5 years | Past 10 years |
| Class A (incl. 5.75% sales charge) | (15.00)% | 18.73% | 12.32% |
| Class T (incl. 3.50% sales charge) | (13.20)% | 18.97% | 12.30% |
| Class C (incl. contingent deferred sales charge) | (11.34)% | 19.26% | 12.16% |
| Class I | (9.60)% | 20.47% | 13.30% |
Class C shares' contingent deferred sales charges included in the past one year, past five years and past ten years total return figures are 1%, 0% and 0%, respectively.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Health Care Fund - Class A on July 31, 2006, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
| Period Ending Values | ||
|
| $31,968 | Fidelity Advisor® Health Care Fund - Class A |
|
| $21,089 | S&P 500® Index |
Fidelity Advisor® Health Care Fund
Management's Discussion of Fund Performance
Market Recap: U.S. equities gained modestly for the year ending July 31, 2016, overcoming persistent concern about global economic growth, uncertainty regarding U.S. monetary policy and the U.K.’s late-June vote to leave the European Union, dubbed Brexit. The S&P 500® index rose 5.61%, with larger-cap, value-oriented stocks and defensive sectors shining brightest. Volatility peaked in the early weeks of 2016, as continued oil-price weakness and U.S.-dollar strength pushed the S&P 500® to its worst January since 2009. Markets then rose beginning in February amid U.S. job gains, a broad rally in energy and materials markets, global economic stimulus and perceived softening of monetary policy by the U.S. Federal Reserve. The June 23 Brexit vote surprised markets and resulted in a sharp two-day decline for stocks, followed by a rebound as investor sentiment shifted and remained positive through July 31. For the year, dividend-rich telecom services (+26%), utilities (+23%) and consumer staples (+12%) led the way amid strong investor demand for yield. Industrials (+10%) and information technology (+10%) also outperformed, as did materials (+8%), despite a weak commodities environment overall. Conversely, a strong run for real estate stocks couldn’t keep financials (-4%) from losing ground, as low interest rates continued to squeeze bank profits. Comments from Portfolio Manager Eddie Yoon: For the year, the fund’s share classes (excluding sales charges, if applicable) trailed the -2.58% return of the sector benchmark, the MSCI U.S. IMI Health Care 25/50 Index, by between 7 and 8 percentage points; both the fund and benchmark lagged the S&P 500®. After multiyear gains, health care stocks lagged the broad market this period due partly to concerns over drug pricing and global macroeconomic instability. Versus the MSCI sector benchmark, stock selection in the pharmaceuticals and biotechnology industries – which make up more than half the fund – dragged most on performance. From an individual stock perspective, not owning large-cap index stalwart Johnson & Johnson (J&J) was the fund's biggest detractor. J&J's stock returned nearly 29% this period, as investors sought more-defensive names with solid financials and attractive dividends amid worries about the global economy as well as election-year jitters over health care regulation. Stock picks and a sizable overweighting in the strong-performing health care equipment segment was a big plus. From this industry, medical device maker Boston Scientific was the largest individual relative contributor and one of the fund's biggest holdings. Shares of Boston Scientific advanced 40% for the year. The company completed its purchase of Endo International's men's health business in August and cut costs. The stock surged in late October after the firm reported strong third-quarter financial results and raised its full-year forecast on an expected increase in sales due to new products.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Fidelity Advisor® Health Care Fund
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Medtronic PLC | 9.7 | 9.6 |
| Amgen, Inc. | 6.7 | 4.6 |
| Allergan PLC | 6.0 | 6.4 |
| Boston Scientific Corp. | 5.1 | 4.4 |
| Teva Pharmaceutical Industries Ltd. sponsored ADR | 4.2 | 5.9 |
| Vertex Pharmaceuticals, Inc. | 3.8 | 2.0 |
| UnitedHealth Group, Inc. | 3.2 | 2.6 |
| Alexion Pharmaceuticals, Inc. | 3.1 | 0.0 |
| McKesson Corp. | 2.9 | 2.9 |
| Bristol-Myers Squibb Co. | 2.4 | 3.3 |
| 47.1 |
Top Industries (% of fund's net assets)
| As of July 31, 2016 | ||
| Health Care Equipment & Supplies | 28.0% | |
| Biotechnology | 27.4% | |
| Pharmaceuticals | 21.3% | |
| Health Care Providers & Services | 15.2% | |
| Health Care Technology | 3.0% | |
| All Others* | 5.1% | |
| As of January 31, 2016 | ||
| Pharmaceuticals | 28.8% | |
| Biotechnology | 25.0% | |
| Health Care Equipment & Supplies | 24.6% | |
| Health Care Providers & Services | 13.8% | |
| Health Care Technology | 2.8% | |
| All Others* | 5.0% | |
* Includes Short-Term investments and Net Other Assets (Liabilities).
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Fidelity Advisor® Health Care Fund
Investments July 31, 2016
Showing Percentage of Net Assets
| Common Stocks - 98.5% | |||
| Shares | Value | ||
| Biotechnology - 27.4% | |||
| Biotechnology - 27.4% | |||
| Ablynx NV (a)(b) | 748,972 | $10,291,040 | |
| Acceleron Pharma, Inc. (a) | 142,448 | 4,831,836 | |
| Acorda Therapeutics, Inc. (a) | 500,000 | 12,640,000 | |
| Actelion Ltd. | 107,257 | 19,023,399 | |
| Advanced Accelerator Applications SA sponsored ADR | 196,300 | 6,142,227 | |
| Advaxis, Inc. (a)(b) | 557,000 | 4,645,380 | |
| Alexion Pharmaceuticals, Inc. (a) | 673,500 | 86,612,100 | |
| Alnylam Pharmaceuticals, Inc. (a) | 164,055 | 11,168,864 | |
| Amgen, Inc. | 1,100,100 | 189,250,203 | |
| Amicus Therapeutics, Inc. (a) | 994,500 | 6,683,040 | |
| Arena Pharmaceuticals, Inc. (a) | 2,625,396 | 4,384,411 | |
| Array BioPharma, Inc. (a) | 1,500,000 | 5,610,000 | |
| Ascendis Pharma A/S sponsored ADR (a) | 400,000 | 5,760,000 | |
| BeiGene Ltd. sponsored ADR | 83,859 | 2,200,460 | |
| Biogen, Inc. (a) | 120,984 | 35,076,891 | |
| BioMarin Pharmaceutical, Inc. (a) | 155,600 | 15,469,752 | |
| bluebird bio, Inc. (a)(b) | 48,120 | 2,751,502 | |
| Blueprint Medicines Corp. (a) | 205,000 | 4,532,550 | |
| Celgene Corp. (a) | 126,808 | 14,226,590 | |
| Cellectis SA sponsored ADR (a) | 221,100 | 5,830,407 | |
| Curis, Inc. (a) | 1,010,300 | 1,697,304 | |
| Cytokinetics, Inc. (a) | 314,747 | 3,499,987 | |
| CytomX Therapeutics, Inc. | 145,600 | 1,464,736 | |
| Five Prime Therapeutics, Inc. (a) | 101,640 | 5,152,132 | |
| Galapagos Genomics NV sponsored ADR (a) | 143,077 | 7,893,558 | |
| Gilead Sciences, Inc. | 454,900 | 36,150,903 | |
| Heron Therapeutics, Inc. (a) | 163,315 | 2,714,295 | |
| Incyte Corp. (a) | 64,700 | 5,836,587 | |
| Insmed, Inc. (a) | 1,100,000 | 12,595,000 | |
| Intercept Pharmaceuticals, Inc. (a) | 54,421 | 9,416,466 | |
| Mirati Therapeutics, Inc. (a) | 83,507 | 387,472 | |
| Neurocrine Biosciences, Inc. (a) | 280,000 | 14,064,400 | |
| Puma Biotechnology, Inc. (a)(b) | 400,000 | 19,956,000 | |
| Regeneron Pharmaceuticals, Inc. (a) | 89,200 | 37,920,704 | |
| Spark Therapeutics, Inc. (a) | 142,842 | 8,276,265 | |
| TESARO, Inc. (a) | 252,200 | 23,515,128 | |
| Trevena, Inc. (a) | 1,000,000 | 6,270,000 | |
| Ultragenyx Pharmaceutical, Inc. (a) | 213,205 | 13,491,612 | |
| Vertex Pharmaceuticals, Inc. (a) | 1,097,800 | 106,486,600 | |
| Xencor, Inc. (a) | 330,000 | 6,250,200 | |
| 770,170,001 | |||
| Capital Markets - 0.3% | |||
| Asset Management & Custody Banks - 0.3% | |||
| RPI International Holdings LP (c) | 61,683 | 8,071,221 | |
| Diversified Consumer Services - 0.2% | |||
| Specialized Consumer Services - 0.2% | |||
| Carriage Services, Inc. | 215,735 | 5,244,518 | |
| Health Care Equipment & Supplies - 28.0% | |||
| Health Care Equipment - 25.2% | |||
| Atricure, Inc. (a) | 680,000 | 10,329,200 | |
| Boston Scientific Corp. (a) | 5,840,300 | 141,802,484 | |
| DexCom, Inc. (a) | 390,000 | 35,969,700 | |
| Edwards Lifesciences Corp. (a) | 227,200 | 26,018,944 | |
| Insulet Corp. (a) | 535,300 | 18,944,267 | |
| Integra LifeSciences Holdings Corp. (a) | 300,000 | 25,281,000 | |
| Intuitive Surgical, Inc. (a) | 80,000 | 55,660,800 | |
| Invuity, Inc. (a)(b) | 590,000 | 6,077,000 | |
| Medtronic PLC | 3,110,000 | 272,529,300 | |
| Nevro Corp. (a)(b) | 220,400 | 18,227,080 | |
| NxStage Medical, Inc. (a) | 257,763 | 5,699,140 | |
| ResMed, Inc. | 175,700 | 12,102,216 | |
| Wright Medical Group NV (a) | 1,303,200 | 28,579,176 | |
| Zeltiq Aesthetics, Inc. (a)(b) | 550,000 | 18,672,500 | |
| Zimmer Biomet Holdings, Inc. | 228,200 | 29,926,148 | |
| 705,818,955 | |||
| Health Care Supplies - 2.8% | |||
| ICU Medical, Inc. (a) | 99,900 | 11,664,324 | |
| Penumbra, Inc. (a)(b) | 341,100 | 23,300,541 | |
| The Cooper Companies, Inc. | 140,400 | 25,618,788 | |
| The Spectranetics Corp. (a)(b) | 800,000 | 18,544,000 | |
| 79,127,653 | |||
| TOTAL HEALTH CARE EQUIPMENT & SUPPLIES | 784,946,608 | ||
| Health Care Providers & Services - 15.1% | |||
| Health Care Distributors & Services - 3.8% | |||
| Amplifon SpA | 761,295 | 7,592,060 | |
| EBOS Group Ltd. | 1,312,664 | 15,642,098 | |
| McKesson Corp. | 423,708 | 82,436,628 | |
| Oriola-KD Oyj | 257,466 | 1,208,957 | |
| 106,879,743 | |||
| Health Care Facilities - 1.9% | |||
| Brookdale Senior Living, Inc. (a) | 406,070 | 7,500,113 | |
| HCA Holdings, Inc. (a) | 36,000 | 2,776,680 | |
| Surgical Care Affiliates, Inc. (a) | 359,805 | 18,713,458 | |
| Universal Health Services, Inc. Class B | 192,800 | 24,973,384 | |
| 53,963,635 | |||
| Health Care Services - 1.8% | |||
| Adeptus Health, Inc. Class A (a)(b) | 175,900 | 7,839,863 | |
| American Renal Associates Holdings, Inc. | 291,557 | 6,953,634 | |
| Envision Healthcare Holdings, Inc. (a) | 1,100,000 | 27,049,000 | |
| United Drug PLC (United Kingdom) | 941,461 | 7,245,354 | |
| 49,087,851 | |||
| Managed Health Care - 7.6% | |||
| Aetna, Inc. | 89,000 | 10,253,690 | |
| Anthem, Inc. | 304,300 | 39,966,762 | |
| Cigna Corp. | 497,600 | 64,170,496 | |
| Humana, Inc. | 56,900 | 9,818,095 | |
| UnitedHealth Group, Inc. | 620,400 | 88,841,280 | |
| 213,050,323 | |||
| TOTAL HEALTH CARE PROVIDERS & SERVICES | 422,981,552 | ||
| Health Care Technology - 3.0% | |||
| Health Care Technology - 3.0% | |||
| athenahealth, Inc. (a) | 250,100 | 31,960,279 | |
| Castlight Health, Inc. (a) | 336,800 | 1,256,264 | |
| Evolent Health, Inc. (a) | 318,100 | 7,488,074 | |
| HealthStream, Inc. (a) | 692,091 | 16,769,365 | |
| Medidata Solutions, Inc. (a) | 528,000 | 28,063,200 | |
| 85,537,182 | |||
| Life Sciences Tools & Services - 2.2% | |||
| Life Sciences Tools & Services - 2.2% | |||
| Agilent Technologies, Inc. | 1,013,000 | 48,735,430 | |
| Bruker Corp. | 268,500 | 6,691,020 | |
| PRA Health Sciences, Inc. (a) | 124,300 | 5,765,034 | |
| 61,191,484 | |||
| Pharmaceuticals - 21.3% | |||
| Pharmaceuticals - 21.3% | |||
| Allergan PLC (a) | 664,300 | 168,034,685 | |
| Amphastar Pharmaceuticals, Inc. (a) | 600,000 | 9,708,000 | |
| Astellas Pharma, Inc. | 712,300 | 11,868,155 | |
| Bristol-Myers Squibb Co. | 903,200 | 67,568,392 | |
| Catalent, Inc. (a) | 958,400 | 24,477,536 | |
| Dechra Pharmaceuticals PLC | 660,000 | 11,617,244 | |
| Eisai Co. Ltd. | 245,900 | 14,378,140 | |
| Endo International PLC (a) | 415,400 | 7,211,344 | |
| GlaxoSmithKline PLC | 1,072,500 | 23,952,176 | |
| Horizon Pharma PLC (a) | 695,000 | 13,406,550 | |
| Jazz Pharmaceuticals PLC (a) | 140,200 | 21,165,994 | |
| Jiangsu Hengrui Medicine Co. Ltd. | 1,716,000 | 11,292,892 | |
| Lee's Pharmaceutical Holdings Ltd. | 4,366,536 | 3,421,909 | |
| Mylan N.V. (a) | 216,400 | 10,125,356 | |
| Pfizer, Inc. | 457,300 | 16,869,797 | |
| Prestige Brands Holdings, Inc. (a) | 158,900 | 8,501,150 | |
| Sanofi SA sponsored ADR | 400,000 | 17,052,000 | |
| Sun Pharmaceutical Industries Ltd. | 1,000,010 | 12,451,554 | |
| Teva Pharmaceutical Industries Ltd. sponsored ADR | 2,213,900 | 118,443,650 | |
| The Medicines Company (a)(b) | 304,298 | 11,901,095 | |
| TherapeuticsMD, Inc. (a)(b) | 2,065,000 | 16,045,050 | |
| 599,492,669 | |||
| Professional Services - 1.0% | |||
| Human Resource & Employment Services - 1.0% | |||
| WageWorks, Inc. (a) | 440,000 | 27,196,400 | |
| TOTAL COMMON STOCKS | |||
| (Cost $2,373,940,680) | 2,764,831,635 | ||
| Convertible Preferred Stocks - 0.1% | |||
| Health Care Providers & Services - 0.1% | |||
| Health Care Services - 0.1% | |||
| 1Life Healthcare, Inc. Series G (a)(c) | |||
| (Cost $2,121,583) | 322,145 | 2,667,361 | |
| Money Market Funds - 2.3% | |||
| Fidelity Cash Central Fund, 0.42% (d) | 24,946,506 | 24,946,506 | |
| Fidelity Securities Lending Cash Central Fund, 0.45% (d)(e) | 39,414,318 | 39,414,318 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $64,360,824) | 64,360,824 | ||
| TOTAL INVESTMENT PORTFOLIO - 100.9% | |||
| (Cost $2,440,423,087) | 2,831,859,820 | ||
| NET OTHER ASSETS (LIABILITIES) - (0.9)% | (24,466,777) | ||
| NET ASSETS - 100% | $2,807,393,043 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $10,738,581 or 0.4% of net assets.
(d) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(e) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
| Security | Acquisition Date | Acquisition Cost |
| 1Life Healthcare, Inc. Series G | 4/10/14 | $2,121,583 |
| RPI International Holdings LP | 5/21/15 - 3/23/16 | $8,207,868 |
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
| Fund | Income earned |
| Fidelity Cash Central Fund | $125,326 |
| Fidelity Securities Lending Cash Central Fund | 501,907 |
| Total | $627,233 |
Investment Valuation
The following is a summary of the inputs used, as of July 31, 2016, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | ||||
| Common Stocks | $2,764,831,635 | $2,706,561,943 | $50,198,471 | $8,071,221 |
| Convertible Preferred Stocks | 2,667,361 | -- | -- | 2,667,361 |
| Money Market Funds | 64,360,824 | 64,360,824 | -- | -- |
| Total Investments in Securities: | $2,831,859,820 | $2,770,922,767 | $50,198,471 | $10,738,582 |
The following is a summary of transfers between Level 1 and Level 2 for the period ended July 31, 2016. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements:
| Transfers | Total |
| Level 1 to Level 2 | $38,135,914 |
| Level 2 to Level 1 | $0 |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
| United States of America | 70.5% |
| Ireland | 17.6% |
| Israel | 4.2% |
| Netherlands | 1.4% |
| United Kingdom | 1.2% |
| Others (Individually Less Than 1%) | 5.1% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Health Care Fund
Financial Statements
Statement of Assets and Liabilities
| July 31, 2016 | ||
| Assets | ||
| Investment in securities, at value (including securities loaned of $38,742,729) — See accompanying schedule: Unaffiliated issuers (cost $2,376,062,263) | $2,767,498,996 | |
| Fidelity Central Funds (cost $64,360,824) | 64,360,824 | |
| Total Investments (cost $2,440,423,087) | $2,831,859,820 | |
| Receivable for investments sold | 32,577,205 | |
| Receivable for fund shares sold | 4,592,989 | |
| Dividends receivable | 562,074 | |
| Distributions receivable from Fidelity Central Funds | 77,212 | |
| Other receivables | 53,416 | |
| Total assets | 2,869,722,716 | |
| Liabilities | ||
| Payable for investments purchased | $14,822,079 | |
| Payable for fund shares redeemed | 5,337,938 | |
| Accrued management fee | 1,252,544 | |
| Distribution and service plan fees payable | 923,829 | |
| Other affiliated payables | 510,166 | |
| Other payables and accrued expenses | 68,799 | |
| Collateral on securities loaned, at value | 39,414,318 | |
| Total liabilities | 62,329,673 | |
| Net Assets | $2,807,393,043 | |
| Net Assets consist of: | ||
| Paid in capital | $2,520,245,529 | |
| Accumulated net investment loss | (6,590,642) | |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (97,697,903) | |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 391,436,059 | |
| Net Assets | $2,807,393,043 | |
| Calculation of Maximum Offering Price | ||
| Class A: | ||
| Net Asset Value and redemption price per share ($1,159,614,061 ÷ 30,335,169 shares) | $38.23 | |
| Maximum offering price per share (100/94.25 of $38.23) | $40.56 | |
| Class T: | ||
| Net Asset Value and redemption price per share ($293,556,417 ÷ 8,166,410 shares) | $35.95 | |
| Maximum offering price per share (100/96.50 of $35.95) | $37.25 | |
| Class C: | ||
| Net Asset Value and offering price per share ($695,374,071 ÷ 22,344,647 shares)(a) | $31.12 | |
| Class I: | ||
| Net Asset Value, offering price and redemption price per share ($658,848,494 ÷ 15,948,671 shares) | $41.31 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Year ended July 31, 2016 | ||
| Investment Income | ||
| Dividends | $21,545,185 | |
| Interest | 55 | |
| Income from Fidelity Central Funds (including $501,907 from security lending) | 627,233 | |
| Total income | 22,172,473 | |
| Expenses | ||
| Management fee | $15,537,069 | |
| Transfer agent fees | 5,629,227 | |
| Distribution and service plan fees | 11,405,188 | |
| Accounting and security lending fees | 841,829 | |
| Custodian fees and expenses | 71,018 | |
| Independent trustees' fees and expenses | 57,542 | |
| Registration fees | 154,308 | |
| Audit | 56,855 | |
| Legal | 35,975 | |
| Interest | 2,012 | |
| Miscellaneous | 35,068 | |
| Total expenses before reductions | 33,826,091 | |
| Expense reductions | (156,179) | 33,669,912 |
| Net investment income (loss) | (11,497,439) | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | (94,941,774) | |
| Foreign currency transactions | 13,698 | |
| Total net realized gain (loss) | (94,928,076) | |
| Change in net unrealized appreciation (depreciation) on: Investment securities | (255,190,334) | |
| Assets and liabilities in foreign currencies | (266) | |
| Total change in net unrealized appreciation (depreciation) | (255,190,600) | |
| Net gain (loss) | (350,118,676) | |
| Net increase (decrease) in net assets resulting from operations | $(361,616,115) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended July 31, 2016 | Year ended July 31, 2015 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $(11,497,439) | $(13,226,611) |
| Net realized gain (loss) | (94,928,076) | 303,936,182 |
| Change in net unrealized appreciation (depreciation) | (255,190,600) | 322,305,451 |
| Net increase (decrease) in net assets resulting from operations | (361,616,115) | 613,015,022 |
| Distributions to shareholders from net realized gain | (200,296,642) | (188,666,593) |
| Share transactions - net increase (decrease) | 39,266,649 | 1,510,649,436 |
| Redemption fees | 89,122 | 66,619 |
| Total increase (decrease) in net assets | (522,556,986) | 1,935,064,484 |
| Net Assets | ||
| Beginning of period | 3,329,950,029 | 1,394,885,545 |
| End of period | $2,807,393,043 | $3,329,950,029 |
| Other Information | ||
| Accumulated net investment loss end of period | $(6,590,642) | $(17) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Health Care Fund Class A
| Years ended July 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $45.17 | $37.72 | $31.29 | $24.35 | $25.60 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | (.09) | (.19) | (.18) | –B | (.04) |
| Net realized and unrealized gain (loss) | (4.30) | 12.03 | 10.13 | 9.53 | 1.43 |
| Total from investment operations | (4.39) | 11.84 | 9.95 | 9.53 | 1.39 |
| Distributions from net realized gain | (2.55) | (4.39) | (3.52) | (2.59) | (2.64) |
| Total distributions | (2.55) | (4.39) | (3.52) | (2.59) | (2.64) |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – |
| Net asset value, end of period | $38.23 | $45.17 | $37.72 | $31.29 | $24.35 |
| Total ReturnC,D | (9.82)% | 34.07% | 34.79% | 42.77% | 7.58% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | 1.04% | 1.04% | 1.08% | 1.14% | 1.19% |
| Expenses net of fee waivers, if any | 1.04% | 1.04% | 1.08% | 1.14% | 1.19% |
| Expenses net of all reductions | 1.04% | 1.04% | 1.07% | 1.13% | 1.18% |
| Net investment income (loss) | (.25)% | (.45)% | (.54)% | (.01)% | (.18)% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $1,159,614 | $1,374,654 | $613,995 | $365,416 | $233,188 |
| Portfolio turnover rateG | 67% | 80% | 111% | 92% | 124% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Health Care Fund Class T
| Years ended July 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $42.68 | $35.87 | $29.91 | $23.42 | $24.80 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | (.18) | (.28) | (.26) | (.07) | (.09) |
| Net realized and unrealized gain (loss) | (4.06) | 11.39 | 9.67 | 9.13 | 1.35 |
| Total from investment operations | (4.24) | 11.11 | 9.41 | 9.06 | 1.26 |
| Distributions from net realized gain | (2.49) | (4.30) | (3.45) | (2.57) | (2.64) |
| Total distributions | (2.49) | (4.30) | (3.45) | (2.57) | (2.64) |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – |
| Net asset value, end of period | $35.95 | $42.68 | $35.87 | $29.91 | $23.42 |
| Total ReturnC,D | (10.05)% | 33.69% | 34.49% | 42.39% | 7.27% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | 1.31% | 1.31% | 1.34% | 1.39% | 1.43% |
| Expenses net of fee waivers, if any | 1.31% | 1.31% | 1.34% | 1.39% | 1.43% |
| Expenses net of all reductions | 1.31% | 1.30% | 1.34% | 1.38% | 1.43% |
| Net investment income (loss) | (.52)% | (.72)% | (.80)% | (.26)% | (.42)% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $293,556 | $348,886 | $216,973 | $158,611 | $117,969 |
| Portfolio turnover rateG | 67% | 80% | 111% | 92% | 124% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Health Care Fund Class C
| Years ended July 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $37.45 | $32.03 | $27.11 | $21.51 | $23.11 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | (.30) | (.41) | (.38) | (.17) | (.18) |
| Net realized and unrealized gain (loss) | (3.57) | 10.05 | 8.68 | 8.31 | 1.22 |
| Total from investment operations | (3.87) | 9.64 | 8.30 | 8.14 | 1.04 |
| Distributions from net realized gain | (2.46) | (4.22) | (3.38) | (2.54) | (2.64) |
| Total distributions | (2.46) | (4.22) | (3.38) | (2.54) | (2.64) |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – |
| Net asset value, end of period | $31.12 | $37.45 | $32.03 | $27.11 | $21.51 |
| Total ReturnC,D | (10.50)% | 33.04% | 33.83% | 41.74% | 6.80% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | 1.79% | 1.79% | 1.83% | 1.87% | 1.90% |
| Expenses net of fee waivers, if any | 1.79% | 1.79% | 1.83% | 1.87% | 1.90% |
| Expenses net of all reductions | 1.79% | 1.79% | 1.82% | 1.85% | 1.89% |
| Net investment income (loss) | (1.00)% | (1.20)% | (1.29)% | (.74)% | (.89)% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $695,374 | $761,070 | $257,859 | $125,965 | $78,763 |
| Portfolio turnover rateG | 67% | 80% | 111% | 92% | 124% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Health Care Fund Class I
| Years ended July 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $48.53 | $40.22 | $33.12 | $25.60 | $26.69 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | –B | (.09) | (.10) | .07 | .03 |
| Net realized and unrealized gain (loss) | (4.62) | 12.88 | 10.80 | 10.07 | 1.52 |
| Total from investment operations | (4.62) | 12.79 | 10.70 | 10.14 | 1.55 |
| Distributions from net realized gain | (2.60) | (4.48) | (3.60) | (2.62) | (2.64) |
| Total distributions | (2.60) | (4.48) | (3.60) | (2.62) | (2.64) |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – |
| Net asset value, end of period | $41.31 | $48.53 | $40.22 | $33.12 | $25.60 |
| Total ReturnC | (9.60)% | 34.40% | 35.21% | 43.12% | 7.91% |
| Ratios to Average Net AssetsD,E | |||||
| Expenses before reductions | .78% | .79% | .81% | .87% | .89% |
| Expenses net of fee waivers, if any | .78% | .79% | .81% | .87% | .89% |
| Expenses net of all reductions | .78% | .78% | .81% | .85% | .88% |
| Net investment income (loss) | .01% | (.20)% | (.27)% | .26% | .12% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $658,848 | $832,415 | $292,654 | $74,417 | $40,737 |
| Portfolio turnover rateF | 67% | 80% | 111% | 92% | 124% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Industrials Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended July 31, 2016 | Past 1 year | Past 5 years | Past 10 years |
| Class A (incl. 5.75% sales charge) | (1.00)% | 10.62% | 8.90% |
| Class T (incl. 3.50% sales charge) | 1.07% | 10.86% | 8.88% |
| Class C (incl. contingent deferred sales charge) | 3.30% | 11.10% | 8.73% |
| Class I | 5.33% | 12.24% | 9.86% |
Prior to October 1, 2006, the fund was named Fidelity Advisor® Cyclical Industries Fund, and the fund operated under certain different investment policies and compared its performance to a different additional index. The fund's historical performance may not represent its current investment policies.
Class C shares' contingent deferred sales charges included in the past one year, past five years and past ten years total return figures are 1%, 0% and 0%, respectively.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Industrials Fund - Class A on July 31, 2006, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
| Period Ending Values | ||
|
| $23,457 | Fidelity Advisor® Industrials Fund - Class A |
|
| $21,089 | S&P 500® Index |
Fidelity Advisor® Industrials Fund
Management's Discussion of Fund Performance
Market Recap: U.S. equities gained modestly for the year ending July 31, 2016, overcoming persistent concern about global economic growth, uncertainty regarding U.S. monetary policy and the U.K.’s late-June vote to leave the European Union, dubbed Brexit. The S&P 500® index rose 5.61%, with larger-cap, value-oriented stocks and defensive sectors shining brightest. Volatility peaked in the early weeks of 2016, as continued oil-price weakness and U.S.-dollar strength pushed the S&P 500® to its worst January since 2009. Markets then rose beginning in February amid U.S. job gains, a broad rally in energy and materials markets, global economic stimulus and perceived softening of monetary policy by the U.S. Federal Reserve. The June 23 Brexit vote surprised markets and resulted in a sharp two-day decline for stocks, followed by a rebound as investor sentiment shifted and remained positive through July 31. For the year, dividend-rich telecom services (+26%), utilities (+23%) and consumer staples (+12%) led the way amid strong investor demand for yield. Industrials (+10%) and information technology (+10%) also outperformed, as did materials (+8%), despite a weak commodities environment overall. Conversely, a strong run for real estate stocks couldn’t keep financials (-4%) from losing ground, as low interest rates continued to squeeze bank profits. Comments from Portfolio Manager Tobias Welo: For the year ending July 31, 2016, most of the fund’s share classes (excluding sales charges, if applicable) returned about 5%, considerably trailing the 8.66% result of the sector benchmark, the MSCI U.S. IMI Industrials 25/50 Index. To a lesser extent, it also lagged the broader S&P 500®. Following a volatile first half, industrials stocks were bolstered by rebounding commodity prices and easing concerns about global growth. Within the fund, stock selection in the office services & supplies, trading companies & distributors, and research & consulting services industries notably hampered results, as did overweighting trucking and underweighting airlines. In the latter two groups, favorable stock decisions overall helped lessen or eliminate that negative impact. An overweighting in Southwest Airlines was the fund’s largest relative detractor; airlines in general were hurt by rebounding crude oil prices and downward pressure on ticket prices. In trading companies & distributors, a non-benchmark stake in Netherlands-based AerCap Holdings also was a significant detractor. In addition to Brexit pressure, investors punished this commercial aircraft and engine lessor largely for its high debt load and emerging-markets exposure. Conversely, positioning in the aerospace & defense segment lifted relative results, most notably nuclear submarine service contractor BWX Technologies, defense contractor Raytheon, and the fund's underweighting in – and eventual liquidation of – holdings of jet manufacturer Boeing. Underweighting construction machinery & heavy trucks also helped.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Fidelity Advisor® Industrials Fund
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| General Electric Co. | 12.8 | 14.9 |
| Honeywell International, Inc. | 6.0 | 5.2 |
| United Technologies Corp. | 5.6 | 4.5 |
| AECOM | 4.7 | 3.9 |
| General Dynamics Corp. | 4.3 | 4.4 |
| J.B. Hunt Transport Services, Inc. | 3.9 | 5.4 |
| Raytheon Co. | 3.8 | 4.1 |
| Northrop Grumman Corp. | 3.7 | 2.8 |
| Caterpillar, Inc. | 3.3 | 0.0 |
| Danaher Corp. | 3.0 | 7.0 |
| 51.1 |
Top Industries (% of fund's net assets)
| As of July 31, 2016 | ||
| Aerospace & Defense | 31.0% | |
| Machinery | 15.0% | |
| Industrial Conglomerates | 13.6% | |
| Electrical Equipment | 10.3% | |
| Road & Rail | 5.0% | |
| All Others* | 25.1% | |
| As of January 31, 2016 | ||
| Aerospace & Defense | 30.3% | |
| Industrial Conglomerates | 21.9% | |
| Road & Rail | 6.4% | |
| Machinery | 5.4% | |
| Trading Companies & Distributors | 5.1% | |
| All Others* | 30.9% | |
* Includes Short-Term investments and Net Other Assets (Liabilities).
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Fidelity Advisor® Industrials Fund
Investments July 31, 2016
Showing Percentage of Net Assets
| Common Stocks - 98.8% | |||
| Shares | Value | ||
| Aerospace & Defense - 31.0% | |||
| Aerospace & Defense - 31.0% | |||
| Astronics Corp. (a) | 35,327 | $1,351,964 | |
| BWX Technologies, Inc. | 201,000 | 7,398,810 | |
| General Dynamics Corp. | 175,562 | 25,788,302 | |
| Hexcel Corp. | 181,200 | 7,822,404 | |
| Honeywell International, Inc. | 312,933 | 36,403,496 | |
| Northrop Grumman Corp. | 103,200 | 22,356,216 | |
| Orbital ATK, Inc. | 32,269 | 2,811,275 | |
| Raytheon Co. | 164,600 | 22,966,638 | |
| Rockwell Collins, Inc. | 51,700 | 4,374,854 | |
| Teledyne Technologies, Inc. (a) | 121,565 | 12,764,325 | |
| Textron, Inc. | 219,578 | 8,563,542 | |
| TransDigm Group, Inc. (a) | 4,882 | 1,364,617 | |
| United Technologies Corp. | 311,351 | 33,516,935 | |
| 187,483,378 | |||
| Air Freight & Logistics - 0.5% | |||
| Air Freight & Logistics - 0.5% | |||
| C.H. Robinson Worldwide, Inc. | 43,100 | 3,000,622 | |
| Airlines - 2.7% | |||
| Airlines - 2.7% | |||
| Southwest Airlines Co. | 440,000 | 16,284,400 | |
| Building Products - 2.9% | |||
| Building Products - 2.9% | |||
| A.O. Smith Corp. | 83,642 | 7,769,505 | |
| Fortune Brands Home & Security, Inc. | 151,600 | 9,591,732 | |
| 17,361,237 | |||
| Commercial Services & Supplies - 2.8% | |||
| Commercial Printing - 1.2% | |||
| Deluxe Corp. | 103,200 | 6,975,288 | |
| Office Services & Supplies - 1.6% | |||
| West Corp. | 449,932 | 9,947,997 | |
| TOTAL COMMERCIAL SERVICES & SUPPLIES | 16,923,285 | ||
| Construction & Engineering - 4.7% | |||
| Construction & Engineering - 4.7% | |||
| AECOM (a) | 804,221 | 28,541,803 | |
| Diversified Consumer Services - 1.0% | |||
| Specialized Consumer Services - 1.0% | |||
| ServiceMaster Global Holdings, Inc. (a) | 160,600 | 6,075,498 | |
| Electrical Equipment - 10.3% | |||
| Electrical Components & Equipment - 9.9% | |||
| AMETEK, Inc. | 388,926 | 18,291,190 | |
| Eaton Corp. PLC | 212,500 | 13,474,625 | |
| Emerson Electric Co. | 220,300 | 12,314,770 | |
| Fortive Corp. (a) | 232,966 | 11,231,291 | |
| Regal Beloit Corp. | 67,100 | 4,093,771 | |
| 59,405,647 | |||
| Heavy Electrical Equipment - 0.4% | |||
| TPI Composites, Inc. | 170,300 | 2,490,638 | |
| TOTAL ELECTRICAL EQUIPMENT | 61,896,285 | ||
| Health Care Equipment & Supplies - 3.0% | |||
| Health Care Equipment - 3.0% | |||
| Danaher Corp. | 224,932 | 18,318,462 | |
| Industrial Conglomerates - 13.6% | |||
| Industrial Conglomerates - 13.6% | |||
| General Electric Co. | 2,481,348 | 77,269,177 | |
| Roper Technologies, Inc. | 27,100 | 4,616,756 | |
| 81,885,933 | |||
| Machinery - 15.0% | |||
| Construction Machinery & Heavy Trucks - 6.1% | |||
| Allison Transmission Holdings, Inc. | 214,200 | 6,173,244 | |
| Caterpillar, Inc. | 238,900 | 19,771,364 | |
| Wabtec Corp. | 161,100 | 11,035,350 | |
| 36,979,958 | |||
| Industrial Machinery - 8.9% | |||
| Flowserve Corp. | 96,300 | 4,607,955 | |
| IDEX Corp. | 110,929 | 9,960,315 | |
| Ingersoll-Rand PLC | 198,600 | 13,159,236 | |
| Pentair PLC | 141,500 | 9,030,530 | |
| Rexnord Corp. (a) | 317,500 | 6,759,575 | |
| Snap-On, Inc. | 43,600 | 6,852,612 | |
| TriMas Corp. (a) | 197,500 | 3,529,325 | |
| 53,899,548 | |||
| TOTAL MACHINERY | 90,879,506 | ||
| Professional Services - 2.5% | |||
| Research & Consulting Services - 2.5% | |||
| CEB, Inc. | 83,849 | 5,034,294 | |
| Verisk Analytics, Inc. (a) | 119,344 | 10,177,656 | |
| 15,211,950 | |||
| Road & Rail - 5.0% | |||
| Trucking - 5.0% | |||
| J.B. Hunt Transport Services, Inc. | 284,784 | 23,674,094 | |
| Old Dominion Freight Lines, Inc. (a) | 89,700 | 6,248,502 | |
| 29,922,596 | |||
| Trading Companies & Distributors - 3.8% | |||
| Trading Companies & Distributors - 3.8% | |||
| AerCap Holdings NV (a) | 82,300 | 3,004,773 | |
| HD Supply Holdings, Inc. (a) | 359,506 | 13,010,522 | |
| Wolseley PLC | 120,333 | 6,709,574 | |
| 22,724,869 | |||
| TOTAL COMMON STOCKS | |||
| (Cost $487,379,234) | 596,509,824 | ||
| Money Market Funds - 1.3% | |||
| Fidelity Cash Central Fund, 0.42% (b) | |||
| (Cost $8,229,489) | 8,229,489 | 8,229,489 | |
| TOTAL INVESTMENT PORTFOLIO - 100.1% | |||
| (Cost $495,608,723) | 604,739,313 | ||
| NET OTHER ASSETS (LIABILITIES) - (0.1)% | (887,116) | ||
| NET ASSETS - 100% | $603,852,197 |
Legend
(a) Non-income producing
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
| Fund | Income earned |
| Fidelity Cash Central Fund | $19,631 |
| Fidelity Securities Lending Cash Central Fund | 2,285 |
| Total | $21,916 |
Investment Valuation
The following is a summary of the inputs used, as of July 31, 2016, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | ||||
| Common Stocks | $596,509,824 | $589,800,250 | $6,709,574 | $-- |
| Money Market Funds | 8,229,489 | 8,229,489 | -- | -- |
| Total Investments in Securities: | $604,739,313 | $598,029,739 | $6,709,574 | $-- |
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Industrials Fund
Financial Statements
Statement of Assets and Liabilities
| July 31, 2016 | ||
| Assets | ||
| Investment in securities, at value — See accompanying schedule: Unaffiliated issuers (cost $487,379,234) | $596,509,824 | |
| Fidelity Central Funds (cost $8,229,489) | 8,229,489 | |
| Total Investments (cost $495,608,723) | $604,739,313 | |
| Cash | 280,699 | |
| Receivable for investments sold | 11,210,156 | |
| Receivable for fund shares sold | 416,982 | |
| Dividends receivable | 509,334 | |
| Distributions receivable from Fidelity Central Funds | 3,270 | |
| Other receivables | 5,395 | |
| Total assets | 617,165,149 | |
| Liabilities | ||
| Payable for investments purchased | $11,451,118 | |
| Payable for fund shares redeemed | 1,236,621 | |
| Accrued management fee | 277,083 | |
| Distribution and service plan fees payable | 185,538 | |
| Other affiliated payables | 119,747 | |
| Other payables and accrued expenses | 42,845 | |
| Total liabilities | 13,312,952 | |
| Net Assets | $603,852,197 | |
| Net Assets consist of: | ||
| Paid in capital | $470,392,063 | |
| Undistributed net investment income | 802,476 | |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 23,527,068 | |
| Net unrealized appreciation (depreciation) on investments | 109,130,590 | |
| Net Assets | $603,852,197 | |
| Calculation of Maximum Offering Price | ||
| Class A: | ||
| Net Asset Value and redemption price per share ($279,054,817 ÷ 7,856,327 shares) | $35.52 | |
| Maximum offering price per share (100/94.25 of $35.52) | $37.69 | |
| Class T: | ||
| Net Asset Value and redemption price per share ($79,196,024 ÷ 2,277,401 shares) | $34.77 | |
| Maximum offering price per share (100/96.50 of $34.77) | $36.03 | |
| Class C: | ||
| Net Asset Value and offering price per share ($112,425,187 ÷ 3,487,113 shares)(a) | $32.24 | |
| Class I: | ||
| Net Asset Value, offering price and redemption price per share ($133,176,169 ÷ 3,578,949 shares) | $37.21 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Year ended July 31, 2016 | ||
| Investment Income | ||
| Dividends | $9,639,944 | |
| Income from Fidelity Central Funds (including $2,285 from security lending) | 21,916 | |
| Total income | 9,661,860 | |
| Expenses | ||
| Management fee | $3,501,749 | |
| Transfer agent fees | 1,281,540 | |
| Distribution and service plan fees | 2,325,847 | |
| Accounting and security lending fees | 232,738 | |
| Custodian fees and expenses | 15,368 | |
| Independent trustees' fees and expenses | 13,078 | |
| Registration fees | 74,523 | |
| Audit | 49,691 | |
| Legal | 8,304 | |
| Interest | 193 | |
| Miscellaneous | 9,013 | |
| Total expenses before reductions | 7,512,044 | |
| Expense reductions | (21,896) | 7,490,148 |
| Net investment income (loss) | 2,171,712 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 31,564,682 | |
| Foreign currency transactions | (1,777) | |
| Total net realized gain (loss) | 31,562,905 | |
| Change in net unrealized appreciation (depreciation) on: Investment securities | (14,539,102) | |
| Assets and liabilities in foreign currencies | 475 | |
| Total change in net unrealized appreciation (depreciation) | (14,538,627) | |
| Net gain (loss) | 17,024,278 | |
| Net increase (decrease) in net assets resulting from operations | $19,195,990 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended July 31, 2016 | Year ended July 31, 2015 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $2,171,712 | $3,071,370 |
| Net realized gain (loss) | 31,562,905 | 72,042,724 |
| Change in net unrealized appreciation (depreciation) | (14,538,627) | (8,021,862) |
| Net increase (decrease) in net assets resulting from operations | 19,195,990 | 67,092,232 |
| Distributions to shareholders from net investment income | (2,537,760) | (2,601,876) |
| Distributions to shareholders from net realized gain | (58,090,566) | (62,327,818) |
| Total distributions | (60,628,326) | (64,929,694) |
| Share transactions - net increase (decrease) | (131,906,280) | (97,329,347) |
| Redemption fees | 15,383 | 26,890 |
| Total increase (decrease) in net assets | (173,323,233) | (95,139,919) |
| Net Assets | ||
| Beginning of period | 777,175,430 | 872,315,349 |
| End of period | $603,852,197 | $777,175,430 |
| Other Information | ||
| Undistributed net investment income end of period | $802,476 | $1,206,981 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Industrials Fund Class A
| Years ended July 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $37.06 | $36.92 | $34.50 | $26.18 | $25.73 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .15 | .17 | .13 | .23 | .20 |
| Net realized and unrealized gain (loss) | 1.34 | 2.76 | 4.01 | 8.33 | .61 |
| Total from investment operations | 1.49 | 2.93 | 4.14 | 8.56 | .81 |
| Distributions from net investment income | (.14) | (.11) | (.15) | (.24) | (.11) |
| Distributions from net realized gain | (2.89) | (2.68) | (1.58) | – | (.25) |
| Total distributions | (3.03) | (2.79) | (1.72)B | (.24) | (.36) |
| Redemption fees added to paid in capitalA,C | – | – | – | – | – |
| Net asset value, end of period | $35.52 | $37.06 | $36.92 | $34.50 | $26.18 |
| Total ReturnD,E | 5.04% | 8.17% | 12.52% | 32.92% | 3.42% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | 1.06% | 1.06% | 1.09% | 1.11% | 1.14% |
| Expenses net of fee waivers, if any | 1.06% | 1.06% | 1.09% | 1.11% | 1.14% |
| Expenses net of all reductions | 1.06% | 1.06% | 1.09% | 1.11% | 1.14% |
| Net investment income (loss) | .45% | .46% | .37% | .77% | .80% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $279,055 | $333,405 | $378,826 | $271,512 | $192,038 |
| Portfolio turnover rateH | 53% | 70% | 57% | 78% | 82% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $1.72 per share is comprised of distributions from net investment income of $.146 and distributions from net realized gain of $1.577 per share.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Industrials Fund Class T
| Years ended July 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $36.35 | $36.29 | $33.93 | $25.75 | $25.33 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .06 | .07 | .04 | .15 | .13 |
| Net realized and unrealized gain (loss) | 1.31 | 2.71 | 3.95 | 8.20 | .61 |
| Total from investment operations | 1.37 | 2.78 | 3.99 | 8.35 | .74 |
| Distributions from net investment income | (.06) | (.05) | (.06) | (.17) | (.07) |
| Distributions from net realized gain | (2.89) | (2.67) | (1.58) | – | (.25) |
| Total distributions | (2.95) | (2.72) | (1.63)B | (.17) | (.32) |
| Redemption fees added to paid in capitalA,C | – | – | – | – | – |
| Net asset value, end of period | $34.77 | $36.35 | $36.29 | $33.93 | $25.75 |
| Total ReturnD,E | 4.74% | 7.88% | 12.27% | 32.60% | 3.15% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | 1.33% | 1.33% | 1.33% | 1.37% | 1.40% |
| Expenses net of fee waivers, if any | 1.33% | 1.32% | 1.33% | 1.37% | 1.40% |
| Expenses net of all reductions | 1.32% | 1.32% | 1.33% | 1.36% | 1.39% |
| Net investment income (loss) | .19% | .20% | .12% | .52% | .54% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $79,196 | $88,116 | $90,509 | $79,172 | $63,954 |
| Portfolio turnover rateH | 53% | 70% | 57% | 78% | 82% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $1.63 per share is comprised of distributions from net investment income of $.057 and distributions from net realized gain of $1.577 per share.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Industrials Fund Class C
| Years ended July 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $34.02 | $34.13 | $32.08 | $24.38 | $24.07 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | (.09) | (.10) | (.13) | .01 | .01 |
| Net realized and unrealized gain (loss) | 1.20 | 2.54 | 3.73 | 7.75 | .58 |
| Total from investment operations | 1.11 | 2.44 | 3.60 | 7.76 | .59 |
| Distributions from net investment income | – | – | – | (.06) | (.03) |
| Distributions from net realized gain | (2.89) | (2.55) | (1.55) | – | (.25) |
| Total distributions | (2.89) | (2.55) | (1.55) | (.06) | (.28) |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – |
| Net asset value, end of period | $32.24 | $34.02 | $34.13 | $32.08 | $24.38 |
| Total ReturnC,D | 4.25% | 7.36% | 11.71% | 31.90% | 2.67% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | 1.82% | 1.82% | 1.83% | 1.87% | 1.89% |
| Expenses net of fee waivers, if any | 1.82% | 1.82% | 1.83% | 1.87% | 1.89% |
| Expenses net of all reductions | 1.81% | 1.81% | 1.83% | 1.86% | 1.88% |
| Net investment income (loss) | (.30)% | (.30)% | (.38)% | .02% | .05% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $112,425 | $141,494 | $147,749 | $89,893 | $66,289 |
| Portfolio turnover rateG | 53% | 70% | 57% | 78% | 82% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Industrials Fund Class I
| Years ended July 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $38.67 | $38.42 | $35.83 | $27.18 | $26.69 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .25 | .28 | .25 | .33 | .28 |
| Net realized and unrealized gain (loss) | 1.42 | 2.87 | 4.16 | 8.64 | .63 |
| Total from investment operations | 1.67 | 3.15 | 4.41 | 8.97 | .91 |
| Distributions from net investment income | (.24) | (.22) | (.24) | (.32) | (.17) |
| Distributions from net realized gain | (2.89) | (2.68) | (1.58) | – | (.25) |
| Total distributions | (3.13) | (2.90) | (1.82) | (.32) | (.42) |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – |
| Net asset value, end of period | $37.21 | $38.67 | $38.42 | $35.83 | $27.18 |
| Total ReturnC | 5.33% | 8.45% | 12.82% | 33.28% | 3.72% |
| Ratios to Average Net AssetsD,E | |||||
| Expenses before reductions | .80% | .80% | .81% | .84% | .85% |
| Expenses net of fee waivers, if any | .80% | .80% | .81% | .84% | .85% |
| Expenses net of all reductions | .79% | .79% | .81% | .83% | .85% |
| Net investment income (loss) | .72% | .72% | .64% | 1.04% | 1.08% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $133,176 | $207,462 | $242,772 | $84,780 | $42,850 |
| Portfolio turnover rateF | 53% | 70% | 57% | 78% | 82% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Technology Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended July 31, 2016 | Past 1 year | Past 5 years | Past 10 years |
| Class A (incl. 5.75% sales charge) | 1.66% | 10.38% | 10.20% |
| Class T (incl. 3.50% sales charge) | 3.83% | 10.62% | 10.19% |
| Class C (incl. contingent deferred sales charge) | 6.08% | 10.87% | 10.04% |
| Class I | 8.24% | 12.06% | 11.20% |
Class C shares' contingent deferred sales charges included in the past one year, past five years and past ten years total return figures are 1%, 0% and 0%, respectively.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Technology Fund - Class A on July 31, 2006, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
| Period Ending Values | ||
|
| $26,423 | Fidelity Advisor® Technology Fund - Class A |
|
| $21,089 | S&P 500® Index |
Fidelity Advisor® Technology Fund
Management's Discussion of Fund Performance
Market Recap: U.S. equities gained modestly for the year ending July 31, 2016, overcoming persistent concern about global economic growth, uncertainty regarding U.S. monetary policy and the U.K.’s late-June vote to leave the European Union, dubbed Brexit. The S&P 500® index rose 5.61%, with larger-cap, value-oriented stocks and defensive sectors shining brightest. Volatility peaked in the early weeks of 2016, as continued oil-price weakness and U.S.-dollar strength pushed the S&P 500® to its worst January since 2009. Markets then rose beginning in February amid U.S. job gains, a broad rally in energy and materials markets, global economic stimulus and perceived softening of monetary policy by the U.S. Federal Reserve. The June 23 Brexit vote surprised markets and resulted in a sharp two-day decline for stocks, followed by a rebound as investor sentiment shifted and remained positive through July 31. For the year, dividend-rich telecom services (+26%), utilities (+23%) and consumer staples (+12%) led the way amid strong investor demand for yield. Industrials (+10%) and information technology (+10%) also outperformed, as did materials (+8%), despite a weak commodities environment overall. Conversely, a strong run for real estate stocks couldn’t keep financials (-4%) from losing ground, as low interest rates continued to squeeze bank profits. Comments from Portfolio Manager Charlie Chai: For the 12 months ending July 31, 2016, the fund’s share classes (excluding sales charges, if applicable) lagged the 8.44% return of the MSCI U.S. IMI Information Technology 25/50 Index – most only slightly – as the growth-oriented stocks in secular-growth industries favored in the fund met with mixed success. Strength in key benchmark groups such as internet software & services helped the MSCI index stay ahead of the broader S&P 500®. The fund’s out-of-benchmark exposure to the internet retail industry, along with stock selection in semiconductors, weighed most on performance versus the sector benchmark. An underweighting in systems software also hurt. The fund’s largest relative detractor was an underweighting in PC software provider Microsoft, a benchmark stock that rose roughly 25% this period. Underweighting chipmakers Intel and Texas Instruments also hurt. Conversely, a substantial overweighting in internet software & services bolstered relative results, as did picks in application software. At the stock level, underweighting index heavyweight Apple helped most, as the company was hampered by disappointing smartphone sales. Despite a decreasing stake, Apple was by far the fund’s largest position, on average, during the period. The fund also benefited from overweighting Alphabet, its largest holding at period end, counting Class A and Class C shares. Several of the fund's foreign holdings also helped, many of them buoyed in part by currency fluctuations. I increased the fund’s exposure to semiconductors, making it the second-largest subindustry overweighting by period end, but reduced exposure to technology hardware, storage & peripherals, mainly reflecting a smaller Apple stake and the liquidation from the fund of the companies created after printer and PC maker Hewlett-Packard split into two separate firms.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Fidelity Advisor® Technology Fund
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Apple, Inc. | 10.5 | 9.8 |
| Facebook, Inc. Class A | 6.5 | 6.5 |
| Alphabet, Inc. Class C | 6.0 | 6.9 |
| Alphabet, Inc. Class A | 5.5 | 6.4 |
| Microsoft Corp. | 4.5 | 0.8 |
| Yahoo!, Inc. | 2.4 | 3.0 |
| Broadcom Ltd. | 2.2 | 0.1 |
| Visa, Inc. Class A | 2.1 | 2.7 |
| 58.com, Inc. ADR | 2.0 | 2.1 |
| Trimble Navigation Ltd. | 2.0 | 1.4 |
| 43.7 |
Top Industries (% of fund's net assets)
| As of July 31, 2016 | ||
| Internet Software & Services | 27.2% | |
| Software | 17.9% | |
| Semiconductors & Semiconductor Equipment | 17.7% | |
| Technology Hardware, Storage & Peripherals | 10.9% | |
| IT Services | 5.3% | |
| All Others* | 21.0% | |
| As of January 31, 2016 | ||
| Internet Software & Services | 32.7% | |
| Semiconductors & Semiconductor Equipment | 17.4% | |
| Software | 12.4% | |
| Technology Hardware, Storage & Peripherals | 12.4% | |
| IT Services | 6.9% | |
| All Others* | 18.2% | |
* Includes Short-Term investments and Net Other Assets (Liabilities).
Fidelity Advisor® Technology Fund
Investments July 31, 2016
Showing Percentage of Net Assets
| Common Stocks - 97.7% | |||
| Shares | Value | ||
| Automobiles - 1.7% | |||
| Automobile Manufacturers - 1.7% | |||
| Tesla Motors, Inc. (a) | 106,309 | $24,960,290 | |
| Biotechnology - 0.2% | |||
| Biotechnology - 0.2% | |||
| BeiGene Ltd. sponsored ADR (b) | 52,537 | 1,378,571 | |
| Genscript Biotech Corp. | 15,144,000 | 2,439,936 | |
| 3,818,507 | |||
| Chemicals - 0.7% | |||
| Industrial Gases - 0.2% | |||
| OCI Materials Co. Ltd. | 22,596 | 2,993,036 | |
| Specialty Chemicals - 0.5% | |||
| Duk San Neolux Co. Ltd. (a) | 171,819 | 4,701,553 | |
| Nitto Denko Corp. | 23,300 | 1,561,586 | |
| Soulbrain Co. Ltd. | 23,855 | 1,393,400 | |
| 7,656,539 | |||
| TOTAL CHEMICALS | 10,649,575 | ||
| Commercial Services & Supplies - 0.1% | |||
| Commercial Printing - 0.1% | |||
| Nissha Printing Co. Ltd. (b) | 114,300 | 2,262,590 | |
| Communications Equipment - 0.7% | |||
| Communications Equipment - 0.7% | |||
| Ciena Corp. (a) | 77,800 | 1,492,982 | |
| CommScope Holding Co., Inc. (a) | 69,700 | 2,087,515 | |
| F5 Networks, Inc. (a) | 30,200 | 3,727,284 | |
| Palo Alto Networks, Inc. (a) | 5,800 | 759,162 | |
| Radware Ltd. (a) | 610 | 7,509 | |
| Wistron NeWeb Corp. | 1,087,000 | 2,910,601 | |
| 10,985,053 | |||
| Consumer Finance - 0.0% | |||
| Consumer Finance - 0.0% | |||
| LendingClub Corp. (a) | 700 | 3,234 | |
| Diversified Consumer Services - 1.0% | |||
| Education Services - 1.0% | |||
| China Online Education Group sponsored ADR (a) | 64,002 | 1,285,800 | |
| New Oriental Education & Technology Group, Inc. sponsored ADR | 283,100 | 12,473,386 | |
| TAL Education Group ADR (a) | 16,300 | 981,423 | |
| 14,740,609 | |||
| Specialized Consumer Services - 0.0% | |||
| LifeLock, Inc. (a) | 867 | 14,505 | |
| TOTAL DIVERSIFIED CONSUMER SERVICES | 14,755,114 | ||
| Diversified Financial Services - 2.4% | |||
| Other Diversified Financial Services - 2.2% | |||
| Broadcom Ltd. | 206,700 | 33,481,266 | |
| Specialized Finance - 0.2% | |||
| MSCI, Inc. Class A | 31,700 | 2,727,468 | |
| TOTAL DIVERSIFIED FINANCIAL SERVICES | 36,208,734 | ||
| Diversified Telecommunication Services - 0.0% | |||
| Alternative Carriers - 0.0% | |||
| 8x8, Inc. (a) | 1,200 | 16,500 | |
| Electrical Equipment - 0.1% | |||
| Electrical Components & Equipment - 0.1% | |||
| Lumenpulse, Inc. (a) | 21,700 | 284,868 | |
| Nidec Corp. | 10,100 | 916,485 | |
| 1,201,353 | |||
| Electronic Equipment & Components - 5.0% | |||
| Electronic Components - 2.4% | |||
| Alps Electric Co. Ltd. | 399,800 | 8,904,876 | |
| InvenSense, Inc. (a) | 185,500 | 1,257,690 | |
| Largan Precision Co. Ltd. | 105,000 | 11,285,710 | |
| Ledlink Optics, Inc. | 830,628 | 1,053,328 | |
| Murata Manufacturing Co. Ltd. | 18,900 | 2,307,722 | |
| Samsung SDI Co. Ltd. | 43,288 | 4,103,958 | |
| Sunny Optical Technology Group Co. Ltd. | 436,100 | 1,736,890 | |
| Universal Display Corp. (a) | 23,700 | 1,678,908 | |
| Yageo Corp. | 2,450,660 | 4,189,821 | |
| Yaskawa Electric Corp. | 1,100 | 14,991 | |
| 36,533,894 | |||
| Electronic Equipment & Instruments - 0.6% | |||
| Chroma ATE, Inc. | 3,161,683 | 7,998,852 | |
| Cognex Corp. | 34,600 | 1,562,882 | |
| FEI Co. | 200 | 21,284 | |
| 9,583,018 | |||
| Electronic Manufacturing Services - 2.0% | |||
| Trimble Navigation Ltd. (a) | 1,113,496 | 29,440,834 | |
| Technology Distributors - 0.0% | |||
| Digital China Holdings Ltd. (H Shares) | 23,000 | 17,876 | |
| TOTAL ELECTRONIC EQUIPMENT & COMPONENTS | 75,575,622 | ||
| Health Care Equipment & Supplies - 0.2% | |||
| Health Care Equipment - 0.2% | |||
| Intai Technology Corp. | 517,000 | 2,867,799 | |
| Olympus Corp. | 4,500 | 155,285 | |
| 3,023,084 | |||
| Health Care Providers & Services - 0.0% | |||
| Managed Health Care - 0.0% | |||
| HealthEquity, Inc. (a) | 11,300 | 333,576 | |
| Health Care Technology - 2.0% | |||
| Health Care Technology - 2.0% | |||
| athenahealth, Inc. (a) | 70,194 | 8,970,091 | |
| Inovalon Holdings, Inc. Class A (a)(b) | 226,000 | 4,208,120 | |
| M3, Inc. | 31,000 | 991,970 | |
| Medidata Solutions, Inc. (a) | 242,100 | 12,867,615 | |
| Veeva Systems, Inc. Class A (a) | 62,900 | 2,389,571 | |
| 29,427,367 | |||
| Hotels, Restaurants & Leisure - 0.4% | |||
| Casinos & Gaming - 0.3% | |||
| 500.com Ltd. sponsored ADR Class A (a)(b) | 252,600 | 4,615,002 | |
| Hotels, Resorts & Cruise Lines - 0.1% | |||
| Tuniu Corp. Class A sponsored ADR (a)(b) | 217,908 | 1,963,351 | |
| TOTAL HOTELS, RESTAURANTS & LEISURE | 6,578,353 | ||
| Household Durables - 0.7% | |||
| Consumer Electronics - 0.7% | |||
| Sony Corp. | 157,100 | 5,157,108 | |
| Sony Corp. sponsored ADR | 154,900 | 5,175,209 | |
| 10,332,317 | |||
| Industrial Conglomerates - 0.1% | |||
| Industrial Conglomerates - 0.1% | |||
| Toshiba Corp. (a) | 431,000 | 1,114,573 | |
| Internet & Catalog Retail - 2.9% | |||
| Internet Retail - 2.9% | |||
| Amazon.com, Inc. (a) | 14,200 | 10,775,102 | |
| Ctrip.com International Ltd. ADR (a) | 18,300 | 799,161 | |
| Groupon, Inc. Class A (a)(b) | 157,100 | 757,222 | |
| JD.com, Inc. sponsored ADR (a) | 124,500 | 2,695,425 | |
| Jumei International Holding Ltd. sponsored ADR (a)(b) | 524,953 | 2,162,806 | |
| Liberty Interactive Corp. QVC Group Series A (a) | 309 | 8,284 | |
| MySale Group PLC (a) | 19,300 | 19,412 | |
| Netflix, Inc. (a) | 110,800 | 10,110,500 | |
| Qunar Cayman Islands Ltd. sponsored ADR (a)(b) | 247,994 | 7,457,180 | |
| Vipshop Holdings Ltd. ADR (a) | 624,500 | 8,886,635 | |
| 43,671,727 | |||
| Internet Software & Services - 26.4% | |||
| Internet Software & Services - 26.4% | |||
| 58.com, Inc. ADR (a)(b) | 585,200 | 30,436,252 | |
| Akamai Technologies, Inc. (a) | 30,100 | 1,520,953 | |
| Alibaba Group Holding Ltd. sponsored ADR (a) | 168,800 | 13,922,624 | |
| Alphabet, Inc.: | |||
| Class A | 105,187 | 83,238,681 | |
| Class C (a) | 116,555 | 89,606,318 | |
| Benefitfocus, Inc. (a)(b) | 47,089 | 2,024,827 | |
| Box, Inc. Class A (a)(b) | 58,500 | 681,525 | |
| Cornerstone OnDemand, Inc. (a) | 124,432 | 5,374,218 | |
| DeNA Co. Ltd. | 33,700 | 861,652 | |
| eBay, Inc. (a) | 12,200 | 380,152 | |
| eGain Communications Corp. (a) | 64,050 | 158,844 | |
| Endurance International Group Holdings, Inc. (a)(b) | 655,200 | 5,883,696 | |
| Envestnet, Inc. (a) | 245 | 9,352 | |
| Facebook, Inc. Class A (a) | 788,711 | 97,752,841 | |
| Hortonworks, Inc. (a)(b) | 207,600 | 2,430,996 | |
| LogMeIn, Inc. (a) | 16,900 | 1,451,879 | |
| MINDBODY, Inc. (a) | 68,700 | 1,207,059 | |
| New Relic, Inc. (a)(b) | 127,600 | 4,394,544 | |
| Q2 Holdings, Inc. (a) | 700 | 20,776 | |
| Rackspace Hosting, Inc. (a) | 190,839 | 4,471,358 | |
| Renren, Inc. ADR (a)(b) | 272,700 | 444,501 | |
| Shopify, Inc. (a) | 2,300 | 78,821 | |
| Shopify, Inc. Class A (a) | 32,700 | 1,120,629 | |
| SINA Corp. (a) | 2,698 | 145,368 | |
| SMS Co., Ltd. | 32,800 | 774,591 | |
| SouFun Holdings Ltd. ADR (a) | 2,800 | 14,336 | |
| Tencent Holdings Ltd. | 212,200 | 5,125,294 | |
| Twilio, Inc. | 5,700 | 231,591 | |
| Twitter, Inc. (a) | 27,800 | 462,592 | |
| Web.com Group, Inc. (a) | 156,886 | 2,958,870 | |
| Weibo Corp. sponsored ADR (a) | 800 | 26,032 | |
| Xunlei Ltd. sponsored ADR (a) | 602,744 | 3,345,229 | |
| Yahoo!, Inc. (a) | 954,200 | 36,440,898 | |
| Zillow Group, Inc.: | |||
| Class A (a) | 710 | 27,981 | |
| Class C (a) | 720 | 28,260 | |
| 397,053,540 | |||
| IT Services - 5.3% | |||
| Data Processing & Outsourced Services - 5.2% | |||
| Amadeus IT Holding SA Class A | 68,200 | 3,202,018 | |
| Fidelity National Information Services, Inc. | 36,195 | 2,878,588 | |
| Fiserv, Inc. (a) | 86,300 | 9,524,068 | |
| FleetCor Technologies, Inc. (a) | 1,000 | 151,680 | |
| Global Payments, Inc. | 146,700 | 10,952,622 | |
| PayPal Holdings, Inc. (a) | 4,000 | 148,960 | |
| Paysafe Group PLC (a) | 1,400,300 | 7,153,456 | |
| Sabre Corp. | 52,300 | 1,524,545 | |
| Total System Services, Inc. | 72,553 | 3,694,399 | |
| Travelport Worldwide Ltd. | 272,623 | 3,677,684 | |
| Vantiv, Inc. (a) | 64,600 | 3,538,142 | |
| Visa, Inc. Class A | 409,000 | 31,922,450 | |
| 78,368,612 | |||
| IT Consulting & Other Services - 0.1% | |||
| Cognizant Technology Solutions Corp. Class A (a) | 2,494 | 143,380 | |
| EPAM Systems, Inc. (a) | 20,761 | 1,458,253 | |
| Virtusa Corp. (a) | 400 | 10,880 | |
| 1,612,513 | |||
| TOTAL IT SERVICES | 79,981,125 | ||
| Life Sciences Tools & Services - 0.1% | |||
| Life Sciences Tools & Services - 0.1% | |||
| JHL Biotech, Inc. (a) | 555,476 | 1,239,473 | |
| Machinery - 0.2% | |||
| Industrial Machinery - 0.2% | |||
| Harmonic Drive Systems, Inc. (b) | 38,600 | 1,202,535 | |
| King Slide Works Co. Ltd. | 29,000 | 353,169 | |
| Minebea Mitsumi, Inc. | 117,000 | 927,851 | |
| 2,483,555 | |||
| Media - 0.7% | |||
| Advertising - 0.0% | |||
| iCar Asia Ltd. (a)(b) | 1,257,513 | 688,066 | |
| Cable & Satellite - 0.6% | |||
| Naspers Ltd. Class N | 53,845 | 8,449,536 | |
| Publishing - 0.1% | |||
| NEXT Co. Ltd. | 21,800 | 210,040 | |
| Schibsted ASA: | |||
| (A Shares) | 10,100 | 317,587 | |
| (B Shares) | 26,205 | 771,818 | |
| 1,299,445 | |||
| TOTAL MEDIA | 10,437,047 | ||
| Professional Services - 0.3% | |||
| Human Resource & Employment Services - 0.2% | |||
| 51job, Inc. sponsored ADR (a) | 400 | 12,728 | |
| WageWorks, Inc. (a) | 41,144 | 2,543,111 | |
| 2,555,839 | |||
| Research & Consulting Services - 0.1% | |||
| ICF International, Inc. (a) | 33,600 | 1,390,368 | |
| Verisk Analytics, Inc. (a) | 168 | 14,327 | |
| 1,404,695 | |||
| TOTAL PROFESSIONAL SERVICES | 3,960,534 | ||
| Semiconductors & Semiconductor Equipment - 17.7% | |||
| Semiconductor Equipment - 1.2% | |||
| Amkor Technology, Inc. (a) | 683,245 | 4,297,611 | |
| Applied Materials, Inc. | 900 | 23,661 | |
| EO Technics Co. Ltd. | 69,078 | 6,691,776 | |
| Lam Research Corp. | 50,400 | 4,524,408 | |
| Nanometrics, Inc. (a) | 9,409 | 188,556 | |
| Rubicon Technology, Inc. (a) | 444,367 | 315,501 | |
| SolarEdge Technologies, Inc. (a)(b) | 57,300 | 1,025,670 | |
| SunEdison, Inc. (a) | 700 | 91 | |
| Tessera Technologies, Inc. | 30,300 | 973,842 | |
| 18,041,116 | |||
| Semiconductors - 16.5% | |||
| Advanced Micro Devices, Inc. (a)(b) | 361,400 | 2,479,204 | |
| Advanced Semiconductor Engineering, Inc. | 13,828,670 | 16,377,977 | |
| Advanced Semiconductor Engineering, Inc. sponsored ADR | 1,411,647 | 8,116,970 | |
| Ambarella, Inc. (a)(b) | 112,800 | 6,540,144 | |
| ams AG | 98,730 | 3,275,041 | |
| Cavium, Inc. (a) | 106,300 | 4,961,021 | |
| Chipbond Technology Corp. | 4,272,000 | 5,846,997 | |
| ChipMOS TECHNOLOGIES (Bermuda) Ltd. | 308,927 | 5,362,973 | |
| Cirrus Logic, Inc. (a) | 22,714 | 1,103,673 | |
| Dialog Semiconductor PLC (a) | 141,600 | 4,637,656 | |
| Himax Technologies, Inc. sponsored ADR (b) | 735,504 | 6,582,761 | |
| Hua Hong Semiconductor Ltd. | 3,272,000 | 3,066,024 | |
| Infineon Technologies AG | 9,400 | 155,833 | |
| Inphi Corp. (a) | 11,000 | 386,980 | |
| Integrated Device Technology, Inc. (a) | 70,800 | 1,556,892 | |
| Intersil Corp. Class A | 47,394 | 724,180 | |
| M/A-COM Technology Solutions Holdings, Inc. (a) | 56,200 | 2,220,462 | |
| MagnaChip Semiconductor Corp. (a) | 114,554 | 681,596 | |
| Marvell Technology Group Ltd. | 1,973,961 | 23,194,042 | |
| Maxim Integrated Products, Inc. | 187,700 | 7,654,406 | |
| Melexis NV | 293 | 19,238 | |
| Micron Technology, Inc. (a) | 1,996,800 | 27,436,032 | |
| Microsemi Corp. (a) | 82,500 | 3,217,500 | |
| Monolithic Power Systems, Inc. | 85,401 | 6,210,361 | |
| NVIDIA Corp. | 152,400 | 8,702,040 | |
| NXP Semiconductors NV (a) | 232,080 | 19,515,607 | |
| ON Semiconductor Corp. (a) | 306,300 | 3,072,189 | |
| Power Integrations, Inc. | 36,000 | 2,054,520 | |
| Qorvo, Inc. (a) | 242,658 | 15,343,265 | |
| Qualcomm, Inc. | 305,000 | 19,086,900 | |
| Sanken Electric Co. Ltd. (b) | 386,000 | 1,358,384 | |
| Semiconductor Manufacturing International Corp. (a) | 16,310,000 | 1,322,260 | |
| Semtech Corp. (a) | 435,498 | 11,070,359 | |
| Silicon Laboratories, Inc. (a) | 30,400 | 1,619,712 | |
| Silicon Motion Technology Corp. sponsored ADR | 90,688 | 4,688,570 | |
| Siliconware Precision Industries Co. Ltd. sponsored ADR | 71,063 | 528,709 | |
| Sitronix Technology Corp. | 235,000 | 782,866 | |
| SK Hynix, Inc. | 261,842 | 8,094,325 | |
| Skyworks Solutions, Inc. | 145,200 | 9,586,104 | |
| STMicroelectronics NV | 1,630 | 11,919 | |
| Vanguard International Semiconductor Corp. | 97,000 | 176,203 | |
| Xilinx, Inc. | 300 | 15,324 | |
| 248,837,219 | |||
| TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT | 266,878,335 | ||
| Software - 17.9% | |||
| Application Software - 7.1% | |||
| Adobe Systems, Inc. (a) | 90,416 | 8,848,110 | |
| ANSYS, Inc. (a) | 175 | 15,638 | |
| Autodesk, Inc. (a) | 331,000 | 19,677,950 | |
| Blackbaud, Inc. | 17,200 | 1,149,820 | |
| Callidus Software, Inc. (a) | 183,500 | 3,767,255 | |
| Citrix Systems, Inc. (a) | 28,615 | 2,550,455 | |
| Guidewire Software, Inc. (a) | 190 | 11,679 | |
| HubSpot, Inc. (a) | 9,100 | 496,769 | |
| Intuit, Inc. | 91,200 | 10,122,288 | |
| Kingdee International Software Group Co. Ltd. (a) | 365,800 | 115,515 | |
| LINE Corp. sponsored ADR | 3,978 | 146,072 | |
| Linx SA | 2,100 | 11,949 | |
| Mobileye NV (a)(b) | 152,100 | 7,287,111 | |
| Parametric Technology Corp. (a) | 500 | 19,865 | |
| Paycom Software, Inc. (a) | 900 | 42,489 | |
| Paylocity Holding Corp. (a)(b) | 84,800 | 3,785,472 | |
| Qlik Technologies, Inc. (a) | 400 | 12,080 | |
| RealPage, Inc. (a) | 8,300 | 208,745 | |
| Salesforce.com, Inc. (a) | 350,519 | 28,672,454 | |
| Splunk, Inc. (a) | 67,300 | 4,208,942 | |
| SS&C Technologies Holdings, Inc. | 71,400 | 2,300,508 | |
| Ultimate Software Group, Inc. (a) | 76 | 15,892 | |
| Workday, Inc. Class A (a) | 46,100 | 3,841,974 | |
| Workiva, Inc. (a)(b) | 51,400 | 716,516 | |
| Zendesk, Inc. (a) | 288,700 | 8,730,288 | |
| 106,755,836 | |||
| Home Entertainment Software - 3.6% | |||
| Activision Blizzard, Inc. | 396,370 | 15,918,219 | |
| Electronic Arts, Inc. (a) | 88,500 | 6,754,320 | |
| NCSOFT Corp. | 37,607 | 8,482,528 | |
| NHN Entertainment Corp. (a) | 49,618 | 2,938,377 | |
| Nintendo Co. Ltd. | 70,300 | 14,592,003 | |
| Nintendo Co. Ltd. ADR | 57,700 | 1,487,506 | |
| Take-Two Interactive Software, Inc. (a) | 107,000 | 4,299,260 | |
| 54,472,213 | |||
| Systems Software - 7.2% | |||
| Allot Communications Ltd. (a) | 288,719 | 1,406,062 | |
| CommVault Systems, Inc. (a) | 300 | 15,522 | |
| CyberArk Software Ltd. (a) | 117,600 | 6,631,464 | |
| Fleetmatics Group PLC (a) | 360,130 | 15,471,185 | |
| Imperva, Inc. (a) | 64,200 | 3,025,104 | |
| Infoblox, Inc. (a) | 900 | 16,848 | |
| Microsoft Corp. | 1,190,300 | 67,466,204 | |
| NetSuite, Inc. (a)(b) | 20,677 | 2,250,691 | |
| Oracle Corp. | 3,700 | 151,848 | |
| Progress Software Corp. (a) | 52,200 | 1,516,932 | |
| Proofpoint, Inc. (a) | 119,000 | 9,028,530 | |
| Rapid7, Inc. (a) | 2,500 | 34,950 | |
| ServiceNow, Inc. (a) | 2,395 | 179,433 | |
| Tableau Software, Inc. (a) | 3,300 | 186,483 | |
| Varonis Systems, Inc. (a) | 900 | 23,121 | |
| VMware, Inc. Class A (a)(b) | 2,195 | 160,191 | |
| 107,564,568 | |||
| TOTAL SOFTWARE | 268,792,617 | ||
| Technology Hardware, Storage & Peripherals - 10.9% | |||
| Technology Hardware, Storage & Peripherals - 10.9% | |||
| Apple, Inc. | 1,519,129 | 158,308,436 | |
| BlackBerry Ltd. (a) | 1,486 | 11,267 | |
| EMC Corp. | 142,300 | 4,024,244 | |
| HTC Corp. | 494,000 | 1,476,457 | |
| Nimble Storage, Inc. (a) | 1,900 | 14,136 | |
| Silicon Graphics International Corp. (a) | 166,658 | 899,953 | |
| Stratasys Ltd. (a) | 100 | 2,094 | |
| 164,736,587 | |||
| TOTAL COMMON STOCKS | |||
| (Cost $1,180,631,693) | 1,470,480,382 | ||
| Preferred Stocks - 1.7% | |||
| Convertible Preferred Stocks - 1.3% | |||
| Internet & Catalog Retail - 0.5% | |||
| Internet Retail - 0.5% | |||
| China Internet Plus Holdings Ltd. Series B (c) | 2,042,487 | 7,885,430 | |
| Internet Software & Services - 0.8% | |||
| Internet Software & Services - 0.8% | |||
| Uber Technologies, Inc. Series D, 8.00% (a)(c) | 232,064 | 11,318,278 | |
| IT Services - 0.0% | |||
| Data Processing & Outsourced Services - 0.0% | |||
| Nutanix, Inc. Series E (a)(c) | 39,963 | 623,023 | |
| TOTAL CONVERTIBLE PREFERRED STOCKS | 19,826,731 | ||
| Nonconvertible Preferred Stocks - 0.4% | |||
| Internet & Catalog Retail - 0.4% | |||
| Internet Retail - 0.4% | |||
| China Internet Plus Holdings Ltd. Series A-11 (c) | 1,516,912 | 5,856,342 | |
| TOTAL PREFERRED STOCKS | |||
| (Cost $16,815,545) | 25,683,073 | ||
| Money Market Funds - 7.2% | |||
| Fidelity Cash Central Fund, 0.42% (d) | 14,589,559 | 14,589,559 | |
| Fidelity Securities Lending Cash Central Fund, 0.45% (d)(e) | 93,984,829 | 93,984,829 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $108,574,388) | 108,574,388 | ||
| TOTAL INVESTMENT PORTFOLIO - 106.6% | |||
| (Cost $1,306,021,626) | 1,604,737,843 | ||
| NET OTHER ASSETS (LIABILITIES) - (6.6)% | (99,519,028) | ||
| NET ASSETS - 100% | $1,505,218,815 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $25,683,073 or 1.7% of net assets.
(d) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(e) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
| Security | Acquisition Date | Acquisition Cost |
| China Internet Plus Holdings Ltd. Series A-11 | 1/26/15 | $4,794,731 |
| China Internet Plus Holdings Ltd. Series B | 12/11/15 | $7,885,430 |
| Nutanix, Inc. Series E | 8/26/14 | $535,364 |
| Uber Technologies, Inc. Series D, 8.00% | 6/6/14 | $3,600,020 |
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
| Fund | Income earned |
| Fidelity Cash Central Fund | $58,030 |
| Fidelity Securities Lending Cash Central Fund | 1,369,681 |
| Total | $1,427,711 |
Investment Valuation
The following is a summary of the inputs used, as of July 31, 2016, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | ||||
| Common Stocks | $1,470,480,382 | $1,395,723,321 | $74,757,061 | $-- |
| Preferred Stocks | 25,683,073 | -- | -- | 25,683,073 |
| Money Market Funds | 108,574,388 | 108,574,388 | -- | -- |
| Total Investments in Securities: | $1,604,737,843 | $1,504,297,709 | $74,757,061 | $25,683,073 |
The following is a summary of transfers between Level 1 and Level 2 for the period ended July 31, 2016. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements:
| Transfers | Total |
| Level 1 to Level 2 | $40,700,624 |
| Level 2 to Level 1 | $0 |
The following is a reconciliation of Investments in Securities and Derivative Instruments for which Level 3 inputs were used in determining value:
| Investments in Securities: | |
| Other Investments in Securities | |
| Beginning Balance | $12,656,409 |
| Total Realized Gain (Loss) | (2,808,173) |
| Total Unrealized Gain (Loss) | 2,141,068 |
| Cost of Purchases | - |
| Proceeds of Sales | (11,989,304) |
| Amortization/Accretion | -- |
| Transfers in to Level 3 | -- |
| Transfers out of Level 3 | -- |
| Ending Balance | $-- |
| The change in unrealized gain (loss) for the period attributable to Level 3 securities held at July 31, 2016 | $-- |
| Preferred Stocks | |
| Beginning Balance | $15,728,431 |
| Total Realized Gain (Loss) | - |
| Total Unrealized Gain (Loss) | 2,069,212 |
| Cost of Purchases | 12,680,161 |
| Proceeds of Sales | (4,794,731) |
| Amortization/Accretion | -- |
| Transfers in to Level 3 | -- |
| Transfers out of Level 3 | -- |
| Ending Balance | $25,683,073 |
| The change in unrealized gain (loss) for the period attributable to Level 3 securities held at July 31, 2016 | $2,069,212 |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities and Other Financial Instruments identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations.
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
| United States of America | 70.9% |
| Cayman Islands | 8.6% |
| Taiwan | 4.3% |
| Japan | 3.5% |
| Korea (South) | 2.6% |
| Bermuda | 2.3% |
| Singapore | 2.2% |
| Netherlands | 1.8% |
| Ireland | 1.0% |
| Others (Individually Less Than 1%) | 2.8% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Technology Fund
Financial Statements
Statement of Assets and Liabilities
| July 31, 2016 | ||
| Assets | ||
| Investment in securities, at value (including securities loaned of $91,952,799) — See accompanying schedule: Unaffiliated issuers (cost $1,197,447,238) | $1,496,163,455 | |
| Fidelity Central Funds (cost $108,574,388) | 108,574,388 | |
| Total Investments (cost $1,306,021,626) | $1,604,737,843 | |
| Receivable for investments sold | 23,356,235 | |
| Receivable for fund shares sold | 506,919 | |
| Dividends receivable | 457,740 | |
| Distributions receivable from Fidelity Central Funds | 88,814 | |
| Other receivables | 178,049 | |
| Total assets | 1,629,325,600 | |
| Liabilities | ||
| Payable for investments purchased | $25,354,151 | |
| Payable for fund shares redeemed | 3,405,150 | |
| Accrued management fee | 666,941 | |
| Distribution and service plan fees payable | 299,754 | |
| Other affiliated payables | 275,442 | |
| Other payables and accrued expenses | 120,518 | |
| Collateral on securities loaned, at value | 93,984,829 | |
| Total liabilities | 124,106,785 | |
| Net Assets | $1,505,218,815 | |
| Net Assets consist of: | ||
| Paid in capital | $1,237,014,494 | |
| Accumulated net investment loss | (381,564) | |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (30,143,893) | |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 298,729,778 | |
| Net Assets | $1,505,218,815 | |
| Calculation of Maximum Offering Price | ||
| Class A: | ||
| Net Asset Value and redemption price per share ($480,572,607 ÷ 12,694,151 shares) | $37.86 | |
| Maximum offering price per share (100/94.25 of $37.86) | $40.17 | |
| Class T: | ||
| Net Asset Value and redemption price per share ($203,726,575 ÷ 5,637,330 shares) | $36.14 | |
| Maximum offering price per share (100/96.50 of $36.14) | $37.45 | |
| Class C: | ||
| Net Asset Value and offering price per share ($151,321,079 ÷ 4,609,823 shares)(a) | $32.83 | |
| Class I: | ||
| Net Asset Value, offering price and redemption price per share ($669,598,554 ÷ 16,616,474 shares) | $40.30 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Year ended July 31, 2016 | ||
| Investment Income | ||
| Dividends | $10,514,893 | |
| Income from Fidelity Central Funds (including $1,369,681 from security lending) | 1,427,711 | |
| Total income | 11,942,604 | |
| Expenses | ||
| Management fee | $8,267,888 | |
| Transfer agent fees | 2,955,361 | |
| Distribution and service plan fees | 3,565,744 | |
| Accounting and security lending fees | 496,054 | |
| Custodian fees and expenses | 118,517 | |
| Independent trustees' fees and expenses | 30,653 | |
| Registration fees | 93,532 | |
| Audit | 77,132 | |
| Legal | 25,058 | |
| Interest | 3,085 | |
| Miscellaneous | 18,293 | |
| Total expenses before reductions | 15,651,317 | |
| Expense reductions | (258,482) | 15,392,835 |
| Net investment income (loss) | (3,450,231) | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | (14,098,734) | |
| Foreign currency transactions | (147,035) | |
| Total net realized gain (loss) | (14,245,769) | |
| Change in net unrealized appreciation (depreciation) on: Investment securities (net of decrease in deferred foreign taxes of $107,750) | 122,728,043 | |
| Assets and liabilities in foreign currencies | 25,511 | |
| Total change in net unrealized appreciation (depreciation) | 122,753,554 | |
| Net gain (loss) | 108,507,785 | |
| Net increase (decrease) in net assets resulting from operations | $105,057,554 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended July 31, 2016 | Year ended July 31, 2015 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $(3,450,231) | $257,390 |
| Net realized gain (loss) | (14,245,769) | 123,100,237 |
| Change in net unrealized appreciation (depreciation) | 122,753,554 | 30,802,154 |
| Net increase (decrease) in net assets resulting from operations | 105,057,554 | 154,159,781 |
| Distributions to shareholders from net investment income | – | (1,694,661) |
| Distributions to shareholders from net realized gain | (70,068,821) | (115,642,281) |
| Total distributions | (70,068,821) | (117,336,942) |
| Share transactions - net increase (decrease) | (137,855,039) | 393,289,614 |
| Redemption fees | 39,457 | 24,197 |
| Total increase (decrease) in net assets | (102,826,849) | 430,136,650 |
| Net Assets | ||
| Beginning of period | 1,608,045,664 | 1,177,909,014 |
| End of period | $1,505,218,815 | $1,608,045,664 |
| Other Information | ||
| Accumulated net investment loss end of period | $(381,564) | $(24,170) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Technology Fund Class A
| Years ended July 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $36.83 | $36.06 | $29.90 | $25.25 | $25.14 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | (.10) | (.02)B | (.12) | (.07) | (.13) |
| Net realized and unrealized gain (loss) | 2.74 | 3.75 | 6.70 | 4.72 | .24 |
| Total from investment operations | 2.64 | 3.73 | 6.58 | 4.65 | .11 |
| Distributions from net investment income | – | (.02) | – | – | – |
| Distributions from net realized gain | (1.61) | (2.94) | (.42) | – | – |
| Total distributions | (1.61) | (2.96) | (.42) | – | – |
| Redemption fees added to paid in capitalA,C | – | – | – | – | – |
| Net asset value, end of period | $37.86 | $36.83 | $36.06 | $29.90 | $25.25 |
| Total ReturnD,E | 7.86% | 10.94% | 22.15% | 18.42% | .44% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | 1.09% | 1.09% | 1.14% | 1.18% | 1.18% |
| Expenses net of fee waivers, if any | 1.09% | 1.09% | 1.14% | 1.18% | 1.18% |
| Expenses net of all reductions | 1.07% | 1.08% | 1.12% | 1.14% | 1.17% |
| Net investment income (loss) | (.28)% | (.05)%B | (.35)% | (.25)% | (.55)% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $480,573 | $468,819 | $408,687 | $355,306 | $336,693 |
| Portfolio turnover rateH,I | 102% | 142%I | 186% | 142% | 201% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.25) %.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
I Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Technology Fund Class T
| Years ended July 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $35.26 | $34.66 | $28.79 | $24.38 | $24.33 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | (.18) | (.11)B | (.19) | (.13) | (.19) |
| Net realized and unrealized gain (loss) | 2.61 | 3.60 | 6.45 | 4.54 | .24 |
| Total from investment operations | 2.43 | 3.49 | 6.26 | 4.41 | .05 |
| Distributions from net realized gain | (1.55) | (2.89) | (.39) | – | – |
| Total distributions | (1.55) | (2.89) | (.39) | – | – |
| Redemption fees added to paid in capitalA,C | – | – | – | – | – |
| Net asset value, end of period | $36.14 | $35.26 | $34.66 | $28.79 | $24.38 |
| Total ReturnD,E | 7.60% | 10.63% | 21.89% | 18.09% | .21% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | 1.35% | 1.35% | 1.38% | 1.42% | 1.43% |
| Expenses net of fee waivers, if any | 1.35% | 1.35% | 1.38% | 1.42% | 1.43% |
| Expenses net of all reductions | 1.34% | 1.34% | 1.37% | 1.39% | 1.42% |
| Net investment income (loss) | (.54)% | (.31)%B | (.60)% | (.50)% | (.80)% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $203,727 | $208,192 | $196,067 | $173,692 | $172,709 |
| Portfolio turnover rateH,I | 102% | 142%I | 186% | 142% | 201% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.51) %.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
I Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Technology Fund Class C
| Years ended July 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $32.27 | $31.99 | $26.68 | $22.70 | $22.77 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | (.31) | (.25)B | (.33) | (.24) | (.29) |
| Net realized and unrealized gain (loss) | 2.37 | 3.29 | 5.98 | 4.22 | .22 |
| Total from investment operations | 2.06 | 3.04 | 5.65 | 3.98 | (.07) |
| Distributions from net realized gain | (1.50) | (2.76) | (.34) | – | – |
| Total distributions | (1.50) | (2.76) | (.34) | – | – |
| Redemption fees added to paid in capitalA,C | – | – | – | – | – |
| Net asset value, end of period | $32.83 | $32.27 | $31.99 | $26.68 | $22.70 |
| Total ReturnD,E | 7.08% | 10.07% | 21.31% | 17.53% | (.31)% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | 1.85% | 1.84% | 1.87% | 1.91% | 1.93% |
| Expenses net of fee waivers, if any | 1.85% | 1.84% | 1.87% | 1.91% | 1.93% |
| Expenses net of all reductions | 1.83% | 1.83% | 1.86% | 1.88% | 1.91% |
| Net investment income (loss) | (1.04)% | (.80)%B | (1.09)% | (.99)% | (1.29)% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $151,321 | $138,205 | $105,499 | $84,858 | $88,074 |
| Portfolio turnover rateH,I | 102% | 142%I | 186% | 142% | 201% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.00) %.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the contingent deferred sales charge.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
I Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Technology Fund Class I
| Years ended July 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $39.03 | $38.06 | $31.47 | $26.50 | $26.30 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .02 | .11B | (.02) | .02 | (.06) |
| Net realized and unrealized gain (loss) | 2.92 | 3.96 | 7.06 | 4.95 | .26 |
| Total from investment operations | 2.94 | 4.07 | 7.04 | 4.97 | .20 |
| Distributions from net investment income | – | (.07) | – | – | – |
| Distributions from net realized gain | (1.67) | (3.03) | (.45) | – | – |
| Total distributions | (1.67) | (3.10) | (.45) | – | – |
| Redemption fees added to paid in capitalA,C | – | – | – | – | – |
| Net asset value, end of period | $40.30 | $39.03 | $38.06 | $31.47 | $26.50 |
| Total ReturnD | 8.24% | 11.30% | 22.55% | 18.75% | .76% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | .75% | .75% | .83% | .86% | .86% |
| Expenses net of fee waivers, if any | .75% | .75% | .83% | .86% | .86% |
| Expenses net of all reductions | .74% | .74% | .82% | .83% | .85% |
| Net investment income (loss) | .06% | .29%B | (.05)% | .06% | (.23)% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $669,599 | $783,945 | $455,612 | $218,944 | $95,310 |
| Portfolio turnover rateG,H | 102% | 142%H | 186% | 142% | 201% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.08 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .09%.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Utilities Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended July 31, 2016 | Past 1 year | Past 5 years | Past 10 years |
| Class A (incl. 5.75% sales charge) | 6.97% | 10.25% | 7.08% |
| Class T (incl. 3.50% sales charge) | 9.22% | 10.46% | 7.03% |
| Class C (incl. contingent deferred sales charge) | 11.64% | 10.74% | 6.92% |
| Class I | 13.81% | 11.90% | 8.03% |
Prior to October 1, 2006, the fund was named Fidelity Advisor® Telecommunications & Utilities Growth Fund, and the fund operated under certain different investment policies and compared its performance to a different additional index. The fund's historical performance may not represent its current investment policies.
Class C shares' contingent deferred sales charges included in the past one year, past five years and past ten years total return figures are 1%, 0% and 0%, respectively.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Utilities Fund - Class A on July 31, 2006, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
| Period Ending Values | ||
|
| $19,811 | Fidelity Advisor® Utilities Fund - Class A |
|
| $21,089 | S&P 500® Index |
Fidelity Advisor® Utilities Fund
Management's Discussion of Fund Performance
Market Recap: U.S. equities gained modestly for the year ending July 31, 2016, overcoming persistent concern about global economic growth, uncertainty regarding U.S. monetary policy and the U.K.’s late-June vote to leave the European Union, dubbed Brexit. The S&P 500® index rose 5.61%, with larger-cap, value-oriented stocks and defensive sectors shining brightest. Volatility peaked in the early weeks of 2016, as continued oil-price weakness and U.S.-dollar strength pushed the S&P 500® to its worst January since 2009. Markets then rose beginning in February amid U.S. job gains, a broad rally in energy and materials markets, global economic stimulus and perceived softening of monetary policy by the U.S. Federal Reserve. The June 23 Brexit vote surprised markets and resulted in a sharp two-day decline for stocks, followed by a rebound as investor sentiment shifted and remained positive through July 31. For the year, dividend-rich telecom services (+26%), utilities (+23%) and consumer staples (+12%) led the way amid strong investor demand for yield. Industrials (+10%) and information technology (+10%) also outperformed, as did materials (+8%), despite a weak commodities environment overall. Conversely, a strong run for real estate stocks couldn’t keep financials (-4%) from losing ground, as low interest rates continued to squeeze bank profits. Comments from Portfolio Manager Douglas Simmons: For the one-year period ending July 31, 2016, the fund’s share classes (excluding sales charges, if applicable) delivered positive results, outpacing the 5.61% return of the broad-based S&P 500® but lagging the 23.78% return of the MSCI U.S. IMI Utilities 25/50 Index by roughly 10 percentage points. After a slow start to the period, utilities rose significantly as investors turned their focus to the perceived safety of dividend-yielding stocks in early 2016. Given the fund’s focus on value and dividend growth, the fund underperformed the MSCI index this period because companies perceived as the most defensive delivered the strongest gains – even though they generally are the slowest growers and among the most expensive names. A combination of unfavorable stock picks and industry positioning hampered performance versus the benchmark. Specifically, a sizable overweighting in the weak independent power producers & energy traders group detracted most, including the fund’s three biggest detractors, Calpine, Dynegy and NRG Energy. Over the past two years, independent power producer stocks have become increasingly correlated with the broader energy market. For most of this period, with energy prices remaining at historic lows, these three securities faced tremendous pressure. Conversely, the fund benefited from positions in natural gas infrastructure company NiSource and Avangrid, a new electric utility company formed in December by the merger of Iberdrola, a Spanish utility, and U.S.-based UIL Holdings.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Fidelity Advisor® Utilities Fund
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| NextEra Energy, Inc. | 14.1 | 17.8 |
| Sempra Energy | 11.5 | 10.1 |
| Dominion Resources, Inc. | 9.3 | 9.0 |
| PG&E Corp. | 8.1 | 4.9 |
| Avangrid, Inc. | 5.8 | 4.4 |
| Exelon Corp. | 5.0 | 12.2 |
| DTE Energy Co. | 4.7 | 4.1 |
| FirstEnergy Corp. | 3.8 | 3.5 |
| PPL Corp. | 3.8 | 4.8 |
| Edison International | 3.6 | 4.4 |
| 69.7 |
Top Industries (% of fund's net assets)
| As of July 31, 2016 | ||
| Electric Utilities | 48.9% | |
| Multi-Utilities | 40.6% | |
| Independent Power and Renewable Electricity Producers | 8.0% | |
| Gas Utilities | 0.9% | |
| Oil, Gas & Consumable Fuels | 0.7% | |
| All Others* | 0.9% | |
| As of January 31, 2016 | ||
| Electric Utilities | 47.7% | |
| Multi-Utilities | 36.4% | |
| Independent Power and Renewable Electricity Producers | 9.1% | |
| Media | 3.4% | |
| Real Estate Investment Trusts | 1.5% | |
| All Others* | 1.9% | |
* Includes Short-Term investments and Net Other Assets (Liabilities).
Fidelity Advisor® Utilities Fund
Investments July 31, 2016
Showing Percentage of Net Assets
| Common Stocks - 99.1% | |||
| Shares | Value | ||
| Electric Utilities - 48.9% | |||
| Electric Utilities - 48.9% | |||
| American Electric Power Co., Inc. | 145,920 | $10,112,256 | |
| Edison International | 173,202 | 13,402,371 | |
| Emera, Inc. (a) | 63,200 | 2,356,356 | |
| Exelon Corp. | 494,891 | 18,449,536 | |
| FirstEnergy Corp. | 403,300 | 14,083,236 | |
| ITC Holdings Corp. | 200,600 | 9,277,750 | |
| NextEra Energy, Inc. | 405,340 | 52,001,068 | |
| OGE Energy Corp. | 148,623 | 4,781,202 | |
| PG&E Corp. | 466,805 | 29,847,512 | |
| PNM Resources, Inc. | 222,700 | 7,651,972 | |
| PPL Corp. | 367,472 | 13,857,369 | |
| Westar Energy, Inc. | 76,500 | 4,251,105 | |
| 180,071,733 | |||
| Gas Utilities - 0.9% | |||
| Gas Utilities - 0.9% | |||
| South Jersey Industries, Inc. | 107,800 | 3,436,664 | |
| Independent Power and Renewable Electricity Producers - 8.0% | |||
| Independent Power Producers & Energy Traders - 4.9% | |||
| Calpine Corp. (b) | 762,517 | 10,476,984 | |
| Dynegy, Inc. (b) | 239,347 | 3,621,320 | |
| NRG Yield, Inc. Class C | 140,702 | 2,524,194 | |
| The AES Corp. | 120,800 | 1,491,880 | |
| 18,114,378 | |||
| Renewable Electricity - 3.1% | |||
| NextEra Energy Partners LP | 216,264 | 6,753,925 | |
| Pattern Energy Group, Inc. | 181,228 | 4,416,526 | |
| 11,170,451 | |||
| TOTAL INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS | 29,284,829 | ||
| Multi-Utilities - 40.6% | |||
| Multi-Utilities - 40.6% | |||
| Ameren Corp. | 67,830 | 3,557,005 | |
| Avangrid, Inc. | 471,300 | 21,274,482 | |
| Black Hills Corp. | 143,503 | 9,047,864 | |
| CenterPoint Energy, Inc. | 344,468 | 8,239,675 | |
| Dominion Resources, Inc. | 437,653 | 34,145,687 | |
| DTE Energy Co. | 177,098 | 17,270,597 | |
| NiSource, Inc. | 158,083 | 4,056,410 | |
| SCANA Corp. | 128,678 | 9,643,129 | |
| Sempra Energy | 378,209 | 42,314,023 | |
| 149,548,872 | |||
| Oil, Gas & Consumable Fuels - 0.7% | |||
| Oil & Gas Storage & Transport - 0.7% | |||
| Cheniere Energy Partners LP Holdings LLC | 118,462 | 2,398,856 | |
| TOTAL COMMON STOCKS | |||
| (Cost $306,900,780) | 364,740,954 | ||
| Money Market Funds - 3.8% | |||
| Fidelity Cash Central Fund, 0.42% (c) | 11,828,917 | 11,828,917 | |
| Fidelity Securities Lending Cash Central Fund, 0.45% (c)(d) | 2,322,000 | 2,322,000 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $14,150,917) | 14,150,917 | ||
| TOTAL INVESTMENT PORTFOLIO - 102.9% | |||
| (Cost $321,051,697) | 378,891,871 | ||
| NET OTHER ASSETS (LIABILITIES) - (2.9)% | (10,816,180) | ||
| NET ASSETS - 100% | $368,075,691 |
Legend
(a) Security or a portion of the security is on loan at period end.
(b) Non-income producing
(c) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(d) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
| Fund | Income earned |
| Fidelity Cash Central Fund | $29,991 |
| Fidelity Securities Lending Cash Central Fund | 11,265 |
| Total | $41,256 |
Investment Valuation
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor® Utilities Fund
Financial Statements
Statement of Assets and Liabilities
| July 31, 2016 | ||
| Assets | ||
| Investment in securities, at value (including securities loaned of $2,239,791) — See accompanying schedule: Unaffiliated issuers (cost $306,900,780) | $364,740,954 | |
| Fidelity Central Funds (cost $14,150,917) | 14,150,917 | |
| Total Investments (cost $321,051,697) | $378,891,871 | |
| Receivable for investments sold | 314,099 | |
| Receivable for fund shares sold | 777,466 | |
| Dividends receivable | 149,839 | |
| Distributions receivable from Fidelity Central Funds | 6,347 | |
| Other receivables | 9,082 | |
| Total assets | 380,148,704 | |
| Liabilities | ||
| Payable for investments purchased | $3,398,464 | |
| Payable for fund shares redeemed | 5,945,505 | |
| Accrued management fee | 168,733 | |
| Distribution and service plan fees payable | 118,411 | |
| Other affiliated payables | 78,770 | |
| Other payables and accrued expenses | 41,130 | |
| Collateral on securities loaned, at value | 2,322,000 | |
| Total liabilities | 12,073,013 | |
| Net Assets | $368,075,691 | |
| Net Assets consist of: | ||
| Paid in capital | $320,794,941 | |
| Undistributed net investment income | 1,847,812 | |
| Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (12,407,117) | |
| Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 57,840,055 | |
| Net Assets | $368,075,691 | |
| Calculation of Maximum Offering Price | ||
| Class A: | ||
| Net Asset Value and redemption price per share ($178,116,453 ÷ 6,454,910 shares) | $27.59 | |
| Maximum offering price per share (100/94.25 of $27.59) | $29.27 | |
| Class T: | ||
| Net Asset Value and redemption price per share ($56,402,977 ÷ 2,042,278 shares) | $27.62 | |
| Maximum offering price per share (100/96.50 of $27.62) | $28.62 | |
| Class C: | ||
| Net Asset Value and offering price per share ($70,956,593 ÷ 2,629,966 shares)(a) | $26.98 | |
| Class I: | ||
| Net Asset Value, offering price and redemption price per share ($62,599,668 ÷ 2,224,422 shares) | $28.14 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Year ended July 31, 2016 | ||
| Investment Income | ||
| Dividends | $8,226,165 | |
| Income from Fidelity Central Funds (including $11,265 from security lending) | 41,256 | |
| Total income | 8,267,421 | |
| Expenses | ||
| Management fee | $1,564,395 | |
| Transfer agent fees | 699,416 | |
| Distribution and service plan fees | 1,143,838 | |
| Accounting and security lending fees | 111,362 | |
| Custodian fees and expenses | 10,448 | |
| Independent trustees' fees and expenses | 5,610 | |
| Registration fees | 72,519 | |
| Audit | 48,501 | |
| Legal | 3,088 | |
| Miscellaneous | 3,084 | |
| Total expenses before reductions | 3,662,261 | |
| Expense reductions | (17,532) | 3,644,729 |
| Net investment income (loss) | 4,622,692 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | (9,396,046) | |
| Foreign currency transactions | (6,039) | |
| Total net realized gain (loss) | (9,402,085) | |
| Change in net unrealized appreciation (depreciation) on: Investment securities | 44,135,301 | |
| Assets and liabilities in foreign currencies | 103 | |
| Total change in net unrealized appreciation (depreciation) | 44,135,404 | |
| Net gain (loss) | 34,733,319 | |
| Net increase (decrease) in net assets resulting from operations | $39,356,011 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended July 31, 2016 | Year ended July 31, 2015 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $4,622,692 | $4,638,676 |
| Net realized gain (loss) | (9,402,085) | 6,045,318 |
| Change in net unrealized appreciation (depreciation) | 44,135,404 | (5,645,684) |
| Net increase (decrease) in net assets resulting from operations | 39,356,011 | 5,038,310 |
| Distributions to shareholders from net investment income | (4,356,273) | (4,008,742) |
| Distributions to shareholders from net realized gain | (6,473,264) | (17,304,031) |
| Total distributions | (10,829,537) | (21,312,773) |
| Share transactions - net increase (decrease) | 66,440,496 | (19,607,828) |
| Redemption fees | 31,604 | 10,186 |
| Total increase (decrease) in net assets | 94,998,574 | (35,872,105) |
| Net Assets | ||
| Beginning of period | 273,077,117 | 308,949,222 |
| End of period | $368,075,691 | $273,077,117 |
| Other Information | ||
| Undistributed net investment income end of period | $1,847,812 | $1,963,229 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Utilities Fund Class A
| Years ended July 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $25.48 | $26.77 | $23.48 | $21.20 | $19.09 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .44 | .44 | .41 | .47 | .43 |
| Net realized and unrealized gain (loss) | 2.75 | .18 | 3.35 | 2.24 | 2.07 |
| Total from investment operations | 3.19 | .62 | 3.76 | 2.71 | 2.50 |
| Distributions from net investment income | (.46) | (.38) | (.46) | (.43) | (.39) |
| Distributions from net realized gain | (.61) | (1.52) | (.01) | – | – |
| Total distributions | (1.08)B | (1.91)C | (.47) | (.43) | (.39) |
| Redemption fees added to paid in capitalA,D | – | – | – | – | – |
| Net asset value, end of period | $27.59 | $25.48 | $26.77 | $23.48 | $21.20 |
| Total ReturnE,F | 13.49% | 2.01% | 16.38% | 13.09% | 13.40% |
| Ratios to Average Net AssetsG,H | |||||
| Expenses before reductions | 1.13% | 1.13% | 1.16% | 1.20% | 1.23% |
| Expenses net of fee waivers, if any | 1.13% | 1.13% | 1.16% | 1.20% | 1.23% |
| Expenses net of all reductions | 1.12% | 1.11% | 1.15% | 1.16% | 1.22% |
| Net investment income (loss) | 1.78% | 1.65% | 1.64% | 2.16% | 2.24% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $178,116 | $140,148 | $154,134 | $106,851 | $99,813 |
| Portfolio turnover rateI | 73% | 105% | 112% | 154% | 195% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $1.08 per share is comprised of distributions from net investment income of $.462 and distributions from net realized gain of $.613 per share.
C Total distributions of $1.91 per share is comprised of distributions from net investment income of $.384 and distributions from net realized gain of $1.524 per share.
D Amount represents less than $.005 per share.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Utilities Fund Class T
| Years ended July 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $25.49 | $26.78 | $23.50 | $21.21 | $19.09 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .36 | .36 | .34 | .41 | .38 |
| Net realized and unrealized gain (loss) | 2.77 | .18 | 3.35 | 2.25 | 2.07 |
| Total from investment operations | 3.13 | .54 | 3.69 | 2.66 | 2.45 |
| Distributions from net investment income | (.39) | (.31) | (.40) | (.37) | (.33) |
| Distributions from net realized gain | (.61) | (1.52) | (.01) | – | – |
| Total distributions | (1.00) | (1.83) | (.41) | (.37) | (.33) |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – |
| Net asset value, end of period | $27.62 | $25.49 | $26.78 | $23.50 | $21.21 |
| Total ReturnC,D | 13.19% | 1.72% | 15.99% | 12.81% | 13.13% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | 1.43% | 1.42% | 1.45% | 1.47% | 1.49% |
| Expenses net of fee waivers, if any | 1.43% | 1.42% | 1.45% | 1.47% | 1.49% |
| Expenses net of all reductions | 1.42% | 1.41% | 1.44% | 1.43% | 1.48% |
| Net investment income (loss) | 1.47% | 1.35% | 1.35% | 1.89% | 1.98% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $56,403 | $46,366 | $49,272 | $41,239 | $38,276 |
| Portfolio turnover rateG | 73% | 105% | 112% | 154% | 195% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Utilities Fund Class C
| Years ended July 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $24.91 | $26.23 | $23.03 | $20.80 | $18.75 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .25 | .23 | .23 | .31 | .29 |
| Net realized and unrealized gain (loss) | 2.70 | .19 | 3.29 | 2.20 | 2.03 |
| Total from investment operations | 2.95 | .42 | 3.52 | 2.51 | 2.32 |
| Distributions from net investment income | (.27) | (.22) | (.31) | (.28) | (.27) |
| Distributions from net realized gain | (.61) | (1.52) | (.01) | – | – |
| Total distributions | (.88) | (1.74) | (.32) | (.28) | (.27) |
| Redemption fees added to paid in capitalA,B | – | – | – | – | – |
| Net asset value, end of period | $26.98 | $24.91 | $26.23 | $23.03 | $20.80 |
| Total ReturnC,D | 12.64% | 1.29% | 15.52% | 12.27% | 12.56% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | 1.88% | 1.88% | 1.89% | 1.93% | 1.95% |
| Expenses net of fee waivers, if any | 1.88% | 1.88% | 1.89% | 1.93% | 1.95% |
| Expenses net of all reductions | 1.88% | 1.86% | 1.88% | 1.89% | 1.95% |
| Net investment income (loss) | 1.02% | .89% | .91% | 1.43% | 1.51% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $70,957 | $52,172 | $54,810 | $35,457 | $29,942 |
| Portfolio turnover rateG | 73% | 105% | 112% | 154% | 195% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Utilities Fund Class I
| Years ended July 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $25.97 | $27.24 | $23.87 | $21.56 | $19.40 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .53 | .52 | .51 | .55 | .50 |
| Net realized and unrealized gain (loss) | 2.78 | .20 | 3.39 | 2.26 | 2.10 |
| Total from investment operations | 3.31 | .72 | 3.90 | 2.81 | 2.60 |
| Distributions from net investment income | (.53) | (.46) | (.52) | (.50) | (.44) |
| Distributions from net realized gain | (.61) | (1.52) | (.01) | – | – |
| Total distributions | (1.14) | (1.99)B | (.53) | (.50) | (.44) |
| Redemption fees added to paid in capitalA,C | – | – | – | – | – |
| Net asset value, end of period | $28.14 | $25.97 | $27.24 | $23.87 | $21.56 |
| Total ReturnD | 13.81% | 2.35% | 16.74% | 13.40% | 13.79% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | .84% | .83% | .85% | .89% | .92% |
| Expenses net of fee waivers, if any | .84% | .83% | .85% | .89% | .92% |
| Expenses net of all reductions | .84% | .81% | .84% | .85% | .91% |
| Net investment income (loss) | 2.06% | 1.94% | 1.95% | 2.46% | 2.55% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $62,600 | $31,710 | $46,135 | $19,562 | $20,564 |
| Portfolio turnover rateG | 73% | 105% | 112% | 154% | 195% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $1.99 per share is comprised of distributions from net investment income of $.463 and distributions from net realized gain of $1.524 per share.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended July 31, 2016
1. Organization.
Fidelity Advisor Biotechnology Fund, Fidelity Advisor Communications Equipment Fund, Fidelity Advisor Consumer Discretionary Fund, Fidelity Advisor Electronics Fund, Fidelity Advisor Energy Fund, Fidelity Advisor Financial Services Fund, Fidelity Advisor Health Care Fund, Fidelity Advisor Industrials Fund, Fidelity Advisor Technology Fund and Fidelity Advisor Utilities Fund (the Funds) are funds of Fidelity Advisor Series VII (the Trust) and are 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 Funds are non-diversified with the exception of Fidelity Advisor Financial Services Fund and Fidelity Advisor Health Care Fund. Each Fund offers Class A, Class T, Class C and Class I shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.
After the close of business on June 24, 2016, each Fund's outstanding Class B shares were converted to Class A shares. Each Fund's current fiscal period dollar and share amounts for Class B presented in the Notes to Financial Statements are for the period August 1, 2015 through June 24, 2016.
In April 2016, the Board of Trustees approved a change in the name of Fidelity Advisor Electronics Fund to Fidelity Advisor Semiconductors Fund effective October 1, 2016.
2. Investments in Fidelity Central Funds.
The Funds invest in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Funds' Schedules of Investments list each of the Fidelity Central Funds held as of period end, if any, as an investment of each Fund, but do not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, each Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Funds' Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Funds:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of each Fund's investments to the Fidelity SelectCo, LLC (SelectCo) Fair Value Committee (the Committee). In accordance with valuation policies and procedures approved by the Board, each Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees each Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing each Fund's investments and ratifies the fair value determinations of the Committee.
Each Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value each Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy. Equity securities, including restricted securities, for which observable inputs are not available are valued using alternate valuation approaches, including the market approach and the income approach and are categorized as Level 3 in the hierarchy. The market approach generally consists of using comparable market transactions while the income approach generally consists of using the net present value of estimated future cash flows, adjusted as appropriate for liquidity, credit, market and/or other risk factors.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
The following provides information on Level 3 securities held by Fidelity Advisor Biotechnology Fund and Fidelity Advisor Technology Fund that were valued at period end based on unobservable inputs. These amounts exclude valuations provided by a broker.
Fidelity Advisor Biotechnology Fund:
| Asset Type | Fair Value at 07/31/16 | Valuation Technique(s) | Unobservable Input | Amount or Range/Weighted Average | Impact to Valuation from an Increase in Input(a) |
| Equities | 57,455,661 | Discounted cash flow | Discount rate | 8.0% - 10.0% / 8.2% | Decrease |
| Discount for lack of marketability | 10.0% | Decrease | |||
| Probability rate | 13.2% - 31.7% / 22.5% | Increase | |||
| Market approach | Transaction price | $0.01 - $150.00 / $32.70 | Increase | ||
| Proxy based discount | 3.0% - 47.4% / 28.1% | Decrease | |||
| Premium rate | 15.0% | Increase | |||
| Proxy based premium | 21.3% - 21.5% / 21.3% | Increase | |||
| Market comparable | Enterprise value/Sales multiple (EV/S) | 2.1 | Increase | ||
| Discount rate | 23.0% | Decrease |
(a) Represents the expected directional change in the fair value of the Level 3 investments that would result from an increase in the corresponding input. A decrease to the unobservable input would have the opposite effect. Significant changes in these inputs could result in significantly higher or lower fair value measurements.
Fidelity Advisor Technology Fund:
| Asset Type | Fair Value at 07/31/16 | Valuation Technique (s) | Unobservable Input | Amount or Range / Weighted Average | Impact to Valuation from an Increase in Input(a) |
| Equities | $25,683,073 | Market approach | Transaction price | $3.86 - $48.77 / $24.14 | Increase |
| Market comparable | Enterprise value/Sales multiple (EV/S) | 3.1 | Increase | ||
| Equities (continued) | Discount rate | 20.0% | Decrease |
(a) Represents the expected directional change in the fair value of the Level 3 investments that would result from an increase in the corresponding input. A decrease to the unobservable input would have the opposite effect. Significant changes in these inputs could result in significantly higher or lower fair value measurements.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of July 31, 2016, including information on transfers between Levels 1 and 2, as well as a roll forward of Level 3 investments, is included at the end of each applicable Fund's Schedule of Investments.
Foreign Currency. The Funds may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and 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 rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Funds' investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. 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 Funds are informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Funds determine the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Large, non-recurring dividends recognized by the Funds are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of each Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of each Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan) for Fidelity Advisor Energy Fund and Fidelity Advisor Technology Fund, independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
Income Tax Information and Distributions to Shareholders. Each year, each Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of July 31, 2016, each Fund did not have any unrecognized tax benefits in the financial statements; nor is each Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. Each Fund files a U.S. federal tax return, in addition to state and local tax returns as required. Each Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on each Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. In addition, certain Funds claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), market discount, partnerships, deferred trustees compensation, net operating losses, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows for each Fund:
| Tax cost | Gross unrealized appreciation | Gross unrealized depreciation | Net unrealized appreciation (depreciation) on securities | |
| Fidelity Advisor Biotechnology Fund | $2,831,969,383 | $667,276,365 | $(494,378,856) | $172,897,509 |
| Fidelity Advisor Communications Equipment Fund | 10,853,603 | 2,197,599 | (595,667) | 1,601,932 |
| Fidelity Advisor Consumer Discretionary Fund | 283,149,670 | 53,831,444 | (10,180,733) | 43,650,711 |
| Fidelity Advisor Electronics Fund | 83,691,059 | 12,812,109 | (2,991,613) | 9,820,496 |
| Fidelity Advisor Energy Fund | 898,640,175 | 122,349,309 | (72,186,095) | 50,163,214 |
| Fidelity Advisor Financial Services Fund | 190,053,001 | 14,521,953 | (10,119,332) | 4,402,621 |
| Fidelity Advisor Health Care Fund | 2,449,965,940 | 557,658,866 | (175,764,986) | 381,893,880 |
| Fidelity Advisor Industrials Fund | 497,016,222 | 119,206,064 | (11,482,973) | 107,723,091 |
| Fidelity Advisor Technology Fund | 1,314,482,296 | 340,298,352 | (50,042,805) | 290,255,547 |
| Fidelity Advisor Utilities Fund | 322,674,738 | 61,592,998 | (5,375,865) | 56,217,133 |
The tax-based components of distributable earnings as of period end were as follows for each Fund:
| Undistributed ordinary income | Undistributed long-term capital gain | Capital loss carryforward | Net unrealized appreciation (depreciation) on securities and other investments | |
| Fidelity Advisor Biotechnology Fund | $– | $– | $(195,610,729) | $172,897,509 |
| Fidelity Advisor Communications Equipment Fund | 65,928 | 270,261 | – | 1,601,932 |
| Fidelity Advisor Consumer Discretionary Fund | 764,414 | – | (14,389,276) | 43,651,870 |
| Fidelity Advisor Electronics Fund | 76,636 | – | (3,783,251) | 9,820,497 |
| Fidelity Advisor Energy Fund | 1,512,874 | – | (158,068,838) | 50,163,233 |
| Fidelity Advisor Financial Services Fund | – | – | (47,152,533) | 4,401,783 |
| Fidelity Advisor Health Care Fund | – | – | (88,155,047) | 381,893,207 |
| Fidelity Advisor Industrials Fund | 802,477 | 24,934,567 | – | 107,723,091 |
| Fidelity Advisor Technology Fund | – | – | (21,683,221) | 290,175,365 |
| Fidelity Advisor Utilities Fund | 1,847,817 | – | (10,784,073) | 56,217,014 |
Capital loss carryforwards are only available to offset future capital gains of the Funds to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Funds are permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of fiscal period end and is subject to adjustment.
| Fiscal year of expiration | ||||
| 2017 | 2018 | 2019 | Total with expiration | |
| Fidelity Advisor Financial Services Fund | $(22,767,587) | $(23,251,884) | $(450,657) | $(46,470,128) |
| No expiration | ||||
| Short-term | Long-term | Total no expiration | Total capital loss carryfoward | |
| Fidelity Advisor Biotechnology Fund | $(195,610,729) | $-– | $(195,610,729) | $(195,610,729) |
| Fidelity Advisor Consumer Discretionary Fund | (14,389,276) | -– | (14,389,276) | (14,389,276) |
| Fidelity Advisor Electronics Fund | (3,783,251) | -– | (3,783,251) | (3,783,251) |
| Fidelity Advisor Energy Fund | (91,847,998) | (66,220,840) | (158,068,838) | (158,068,838) |
| Fidelity Advisor Financial Services Fund | (682,405) | -– | (682,405) | (47,152,533) |
| Fidelity Advisor Health Care Fund | (88,155,047) | -– | (88,155,047) | (88,155,047) |
| Fidelity Advisor Technology Fund | (21,683,221) | -– | (21,683,221) | (21,683,221) |
| Fidelity Advisor Utilities Fund | (7,270,691) | (3,513,382) | (10,784,073) | (10,784,073) |
Certain of the Funds elected to defer to the next fiscal year capital losses recognized during the period November 1, 2015 to July 31, 2016 and ordinary losses recognized during the period January 1, 2016 to July 31, 2016. Loss deferrals were as follows:
| Capital losses | Ordinary losses | |
| Fidelity Advisor Biotechnology Fund | $– | $(8,484,891) |
| Fidelity Advisor Communications Equipment Fund | (83,092) | – |
| Fidelity Advisor Financial Services Fund | (559,312) | (122,099) |
| Fidelity Advisor Health Care Fund | – | (6,590,625) |
| Fidelity Advisor Technology Fund | – | (246,129) |
The tax character of distributions paid was as follows:
| July 31, 2016 | |||
| Ordinary Income | Long-term Capital Gains | Total | |
| Fidelity Advisor Biotechnology Fund | $41,819,540 | $147,502,409 | $189,321,949 |
| Fidelity Advisor Communications Equipment Fund | 15,482 | 371,843 | 387,325 |
| Fidelity Advisor Consumer Discretionary Fund | 425,920 | 5,484,780 | 5,910,700 |
| Fidelity Advisor Electronics Fund | 8,269,769 | 967,612 | 9,237,381 |
| Fidelity Advisor Energy Fund | 3,958,354 | – | 3,958,354 |
| Fidelity Advisor Financial Services Fund | 1,147,313 | – | 1,147,313 |
| Fidelity Advisor Health Care Fund | 111,063,622 | 89,233,020 | 200,296,642 |
| Fidelity Advisor Industrials Fund | 2,537,760 | 58,090,566 | 60,628,326 |
| Fidelity Advisor Technology Fund | 47,275,314 | 22,793,507 | 70,068,821 |
| Fidelity Advisor Utilities Fund | 4,641,392 | 6,188,145 | 10,829,537 |
| July 31, 2015 | |||
| Ordinary Income | Long-term Capital Gains | Total | |
| Fidelity Advisor Biotechnology Fund | $69,565 | $51,362,234 | $51,431,799 |
| Fidelity Advisor Communications Equipment Fund | 25,322 | – | 25,322 |
| Fidelity Advisor Consumer Discretionary Fund | 1,683,775 | 12,239,681 | 13,923,456 |
| Fidelity Advisor Electronics Fund | 423,024 | 11,885 | 434,909 |
| Fidelity Advisor Energy Fund | 13,961,242 | 24,822,664 | 38,783,906 |
| Fidelity Advisor Financial Services Fund | 1,174,436 | – | 1,174,436 |
| Fidelity Advisor Health Care Fund | 39,548,467 | 149,118,126 | 188,666,593 |
| Fidelity Advisor Industrials Fund | 5,181,299 | 59,748,395 | 64,929,694 |
| Fidelity Advisor Technology Fund | 73,053,772 | 44,283,170 | 117,336,942 |
| Fidelity Advisor Utilities Fund | 4,794,753 | 16,518,020 | 21,312,773 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Funds less than 30 days may be subject to a redemption fee equal to .75% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Funds and accounted for as an addition to paid in capital.
Restricted Securities. The Funds 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 at the end of each applicable Fund's Schedule of Investments.
Consolidated Subsidiary. Fidelity Advisor Biotechnology invests in certain investments through a wholly-owned subsidiary ("Subsidiary"), which may be subject to federal and state taxes upon disposition.
At period end, investments held through this Subsidiary were $9,655,061 representing 0.35% of the Fund's net assets. The financial statements have been consolidated and include accounts of the Fund and each Subsidiary. Accordingly, all inter-company transactions and balances have been eliminated.
Any cash held by the Subsidiary is restricted as to its use and is presented as Restricted cash in the Statement of Assets and Liabilities.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, are noted in the table below.
| Purchases ($) | Sales ($) | |
| Fidelity Advisor Biotechnology Fund | 893,797,816 | 1,014,754,955 |
| Fidelity Advisor Communications Equipment Fund | 3,348,984 | 4,373,297 |
| Fidelity Advisor Consumer Discretionary Fund | 258,697,101 | 175,695,985 |
| Fidelity Advisor Electronics Fund | 149,342,313 | 181,549,726 |
| Fidelity Advisor Energy Fund | 816,000,427 | 660,704,550 |
| Fidelity Advisor Financial Services Fund | 129,163,248 | 145,968,281 |
| Fidelity Advisor Health Care Fund | 1,870,816,219 | 2,000,819,552 |
| Fidelity Advisor Industrials Fund | 335,036,573 | 528,082,228 |
| Fidelity Advisor Technology Fund | 1,521,564,681 | 1,719,572,011 |
| Fidelity Advisor Utilities Fund | 265,933,446 | 204,723,248 |
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity SelectCo, LLC (the investment adviser) and its affiliates provide the Funds with investment management related services for which the Funds pay a monthly management fee. The management fee is the sum of an individual fund fee rate and an annualized group fee rate. The individual fund fee rate is applied to each Fund's average net assets. The group fee rate is based upon the average net assets of all the mutual funds advised by Fidelity Management & Research Company (FMR) and the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, each Fund's annual management fee rate expressed as a percentage of each Fund's average net assets was as follows.
| Individual Rate | Group Rate | Total | |
| Fidelity Advisor Biotechnology Fund | .30% | .25% | .55% |
| Fidelity Advisor Communications Equipment Fund | .30% | .25% | .55% |
| Fidelity Advisor Consumer Discretionary Fund | .30% | .25% | .55% |
| Fidelity Advisor Electronics Fund | .30% | .25% | .55% |
| Fidelity Advisor Energy Fund | .30% | .25% | .55% |
| Fidelity Advisor Financial Services Fund | .30% | .25% | .55% |
| Fidelity Advisor Health Care Fund | .30% | .25% | .55% |
| Fidelity Advisor Industrials Fund | .30% | .25% | .55% |
| Fidelity Advisor Technology Fund | .30% | .25% | .55% |
| Fidelity Advisor Utilities Fund | .30% | .25% | .55% |
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, each Fund has adopted separate Distribution and Service Plans for each class of shares, except for the Class I. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of each Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution Fee | Service Fee | Total Fees | Retained by FDC |
|
| Fidelity Advisor Biotechnology Fund | ||||
| Class A | -% | .25% | $3,024,297 | $15,412 |
| Class T | .25% | .25% | 735,100 | – |
| Class B | .75% | .25% | 44,259 | 33,194 |
| Class C | .75% | .25% | 7,320,501 | 2,687,806 |
| $11,124,157 | $2,736,412 | |||
| Fidelity Advisor Communications Equipment Fund | ||||
| Class A | -% | .25% | $10,655 | $41 |
| Class T | .25% | .25% | 17,579 | – |
| Class B | .75% | .25% | 1,935 | 1,451 |
| Class C | .75% | .25% | 24,500 | 3,271 |
| $54,669 | $4,763 | |||
| Fidelity Advisor Consumer Discretionary Fund | ||||
| Class A | -% | .25% | $345,247 | $1,455 |
| Class T | .25% | .25% | 132,868 | – |
| Class B | .75% | .25% | 10,252 | 7,689 |
| Class C | .75% | .25% | 606,724 | 293,015 |
| $1,095,091 | $302,159 | |||
| Fidelity Advisor Electronics Fund | ||||
| Class A | -% | .25% | $77,550 | $1,744 |
| Class T | .25% | .25% | 46,888 | – |
| Class B | .75% | .25% | 2,271 | 1,703 |
| Class C | .75% | .25% | 188,459 | 40,513 |
| $315,168 | $43,960 | |||
| Fidelity Advisor Energy Fund | ||||
| Class A | -% | .25% | $739,354 | $29,298 |
| Class T | .25% | .25% | 741,610 | – |
| Class B | .75% | .25% | 50,207 | 37,655 |
| Class C | .75% | .25% | 1,812,479 | 776,343 |
| $3,343,650 | $843,296 | |||
| Fidelity Advisor Financial Services Fund | ||||
| Class A | -% | .25% | $244,816 | $752 |
| Class T | .25% | .25% | 155,505 | – |
| Class B | .75% | .25% | 23,384 | 17,538 |
| Class C | .75% | .25% | 485,888 | 141,739 |
| $909,593 | $160,029 | |||
| Fidelity Advisor Health Care Fund | ||||
| Class A | -% | .25% | $2,972,140 | $3,625 |
| Class T | .25% | .25% | 1,473,345 | – |
| Class B | .75% | .25% | 76,180 | 57,135 |
| Class C | .75% | .25% | 6,883,523 | 2,640,375 |
| $11,405,188 | $2,701,135 | |||
| Fidelity Advisor Industrials Fund | ||||
| Class A | -% | .25% | $711,368 | $– |
| Class T | .25% | .25% | 394,512 | – |
| Class B | .75% | .25% | 40,772 | 30,579 |
| Class C | .75% | .25% | 1,179,195 | 94,284 |
| $2,325,847 | $124,863 | |||
| Fidelity Advisor Technology Fund | ||||
| Class A | -% | .25% | $1,133,945 | $6,729 |
| Class T | .25% | .25% | 976,812 | – |
| Class B | .75% | .25% | 60,104 | 45,087 |
| Class C | .75% | .25% | 1,394,883 | 292,610 |
| $3,565,744 | $344,426 | |||
| Fidelity Advisor Utilities Fund | ||||
| Class A | -% | .25% | $357,262 | $2,019 |
| Class T | .25% | .25% | 226,544 | – |
| Class B | .75% | .25% | 16,980 | 12,735 |
| Class C | .75% | .25% | 543,052 | 81,331 |
| $1,143,838 | $96,085 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of each Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, and Class C redemptions. The deferred sales charges are 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained by FDC |
|
| Fidelity Advisor Biotechnology Fund | |
| Class A | $1,263,826 |
| Class T | 77,646 |
| Class B(a) | 1,040 |
| Class C(a) | 304,647 |
| $1,647,159 | |
| Fidelity Advisor Communications Equipment Fund | |
| Class A | $2,001 |
| Class T | 1,029 |
| Class B(a) | 72 |
| Class C(a) | 355 |
| $3,457 | |
| Fidelity Advisor Consumer Discretionary Fund | |
| Class A | $142,972 |
| Class T | 14,944 |
| Class B(a) | 383 |
| Class C(a) | 24,846 |
| $183,145 | |
| Fidelity Advisor Electronics Fund | |
| Class A | $22,987 |
| Class T | 2,727 |
| Class B(a) | 47 |
| Class C(a) | 6,787 |
| $32,548 | |
| Fidelity Advisor Energy Fund | |
| Class A | $211,273 |
| Class T | 29,803 |
| Class B(a) | 1,863 |
| Class C(a) | 62,660 |
| $305,599 | |
| Fidelity Advisor Financial Services Fund | |
| Class A | $48,896 |
| Class T | 7,732 |
| Class B(a) | 608 |
| Class C(a) | 13,556 |
| $70,792 | |
| Fidelity Advisor Health Care Fund | |
| Class A | $770,667 |
| Class T | 88,807 |
| Class B(a) | 620 |
| Class C(a) | 233,400 |
| $1,093,494 | |
| Fidelity Advisor Industrials Fund | |
| Class A | $43,972 |
| Class T | 6,134 |
| Class B(a) | 1,312 |
| Class C(a) | 12,958 |
| $64,376 | |
| Fidelity Advisor Technology Fund | |
| Class A | $131,495 |
| Class T | 25,467 |
| Class B(a) | 902 |
| Class C(a) | 22,944 |
| $180,808 | |
| Fidelity Advisor Utilities Fund | |
| Class A | $91,312 |
| Class T | 11,846 |
| Class B(a) | 82 |
| Class C(a) | 9,052 |
| $112,292 |
(a) When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Funds. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of each Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of Class-Level Average Net Assets |
|
| Fidelity Advisor Biotechnology Fund | ||
| Class A | $2,416,395 | .20 |
| Class T | 404,165 | .27 |
| Class B | 10,407 | .24 |
| Class C | 1,463,603 | .20 |
| Class I | 1,885,156 | .18 |
| $6,179,726 | ||
| Fidelity Advisor Communications Equipment Fund | ||
| Class A | $13,226 | .31 |
| Class T | 12,840 | .36 |
| Class B | 560 | .29 |
| Class C | 7,755 | .32 |
| Class I | 1,684 | .18 |
| $36,065 | ||
| Fidelity Advisor Consumer Discretionary Fund | ||
| Class A | $284,086 | .21 |
| Class T | 68,317 | .26 |
| Class B | 2,569 | .25 |
| Class C | 129,327 | .21 |
| Class I | 159,872 | .19 |
| $644,171 | ||
| Fidelity Advisor Electronics Fund | ||
| Class A | $77,940 | .25 |
| Class T | 32,079 | .34 |
| Class B | 648 | .29 |
| Class C | 51,339 | .27 |
| Class I | 35,729 | .17 |
| $197,735 | ||
| Fidelity Advisor Energy Fund | ||
| Class A | $758,956 | .26 |
| Class T | 396,192 | .27 |
| Class B | 14,203 | .28 |
| Class C | 413,634 | .23 |
| Class I | 348,865 | .23 |
| $1,931,850 | ||
| Fidelity Advisor Financial Services Fund | ||
| Class A | $241,839 | .25 |
| Class T | 89,854 | .29 |
| Class B | 6,798 | .29 |
| Class C | 116,523 | .24 |
| Class I | 68,023 | .19 |
| $523,037 | ||
| Fidelity Advisor Health Care Fund | ||
| Class A | $2,348,979 | .20 |
| Class T | 644,034 | .22 |
| Class B | 20,677 | .27 |
| Class C | 1,376,302 | .20 |
| Class I | 1,239,235 | .19 |
| $5,629,227 | ||
| Fidelity Advisor Industrials Fund | ||
| Class A | $574,275 | .20 |
| Class T | 171,159 | .22 |
| Class B | 9,894 | .24 |
| Class C | 243,155 | .21 |
| Class I | 283,057 | .19 |
| $1,281,540 | ||
| Fidelity Advisor Technology Fund | ||
| Class A | $1,066,507 | .23 |
| Class T | 483,080 | .25 |
| Class B | 17,276 | .29 |
| Class C | 336,625 | .24 |
| Class I | 1,051,873 | .15 |
| $2,955,361 | ||
| Fidelity Advisor Utilities Fund | ||
| Class A | $344,826 | .24 |
| Class T | 132,895 | .29 |
| Class B | 4,812 | .28 |
| Class C | 132,835 | .24 |
| Class I | 84,048 | .21 |
| $699,416 |
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains each Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. Certain Funds placed a portion of their portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were as follows:
| Amount | |
| Fidelity Advisor Biotechnology Fund | $99,420 |
| Fidelity Advisor Communications Equipment Fund | 262 |
| Fidelity Advisor Consumer Discretionary Fund | 2,939 |
| Fidelity Advisor Electronics Fund | 8,954 |
| Fidelity Advisor Energy Fund | 24,308 |
| Fidelity Advisor Financial Services Fund | 2,500 |
| Fidelity Advisor Health Care Fund | 40,252 |
| Fidelity Advisor Industrials Fund | 6,921 |
| Fidelity Advisor Technology Fund | 35,707 |
| Fidelity Advisor Utilities Fund | 7,729 |
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Funds, along with other registered investment companies having management contracts with FMR or other affiliated entities of 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 affiliated funds. At period end, there were no interfund loans outstanding. Each applicable fund's activity in this program during the period for which loans were outstanding was as follows:
| Borrower or Lender | Average Loan Balance | Weighted Average Interest Rate | Interest Expense | |
| Fidelity Advisor Biotechnology Fund | Borrower | $6,006,857 | .51% | $2,377 |
| Fidelity Advisor Health Care Fund | Borrower | 14,526,250 | .62% | 2,012 |
| Fidelity Advisor Industrials Fund | Borrower | 1,810,333 | .36% | 164 |
| Fidelity Advisor Technology Fund | Borrower | 6,749,208 | .56% | 2,528 |
Interfund Trades. The Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Prior Fiscal Year Redemptions In-Kind. During the prior period, 2,476,292 shares of Fidelity Advisor Technology Fund held by affiliated entities were redeemed for investments with a value of $93,826,692. The Fund had a net realized gain of $23,460,718 on investments delivered through the in-kind redemptions. The amount of in-kind redemptions is included in share transactions in the accompanying Statement of Changes in Net Assets as well as Note 11: Share Transactions. Fidelity Advisor Technology Fund recognized no gain or loss for federal income tax purposes.
Prior Fiscal Year Exchanges In-Kind. During the prior period, certain investment companies managed by the investment adviser or its affiliates (Investing Funds) completed exchanges in-kind with Fidelity Advisor Technology Fund. The Investing Funds delivered cash and investments valued at $311,440,613 in exchange for 8,219,599 shares of the Fund. The amount of in-kind exchanges is included in share transactions in the accompanying Statement of Changes in Net Assets as well as Note 11: Share Transactions. Fidelity Advisor Technology Fund recognized no gain or loss for federal income tax purposes.
6. Committed Line of Credit.
Certain Funds participate with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations, and are as follows:
| Fidelity Advisor Biotechnology Fund | $6,336 |
| Fidelity Advisor Communications Equipment Fund | 23 |
| Fidelity Advisor Consumer Discretionary Fund | 644 |
| Fidelity Advisor Electronics Fund | 167 |
| Fidelity Advisor Energy Fund | 1,615 |
| Fidelity Advisor Financial Services Fund | 441 |
| Fidelity Advisor Health Care Fund | 5,799 |
| Fidelity Advisor Industrials Fund | 1,314 |
| Fidelity Advisor Technology Fund | 3,100 |
| Fidelity Advisor Utilities Fund | 590 |
During the period, the Funds did not borrow on this line of credit.
7. Security Lending.
Certain Funds lend portfolio securities through a lending agent from time to time in order to earn additional income. On the settlement date of the loan, each applicable 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 Funds and any additional required collateral is delivered to the Funds on the next business day. The Funds or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Funds may apply collateral received from the borrower against the obligation. The Funds may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on each applicable Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented on each applicable Fund's Statement of Operations as a component of income from Fidelity Central Funds.
8. Bank Borrowings.
Each Fund is permitted to have bank borrowings for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity requirements. Each 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. At period end, there were no bank borrowings outstanding. Each applicable Fund's activity in this program during the period for which loans were outstanding was as follows:
| Average Loan Balance | Weighted Average Interest Rate | Interest Expense | |
| Fidelity Advisor Biotechnology Fund | $18,734,636 | .87% | $4,963 |
| Fidelity Advisor Industrials Fund | 802,500 | .64% | 29 |
| Fidelity Advisor Technology Fund | 3,748,833 | .89% | 557 |
9. Expense Reductions.
The investment adviser voluntarily agreed to reimburse funds to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes of each applicable Fund were in reimbursement during the period:
| Expense Limitations | Reimbursement | |
| Fidelity Advisor Communications Equipment Fund | ||
| Class A | 1.40% | $29,692 |
| Class T | 1.65% | 26,760 |
| Class B | 2.15% | 1,505 |
| Class C | 2.15% | 17,341 |
| Class I | 1.15% | 5,144 |
| Fidelity Advisor Electronics Fund | ||
| Class T | 1.65% | 164 |
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of Certain Funds include an amount in addition to trade execution, which may be rebated back to the Funds to offset certain expenses. Through arrangements with each applicable Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. All of the applicable expense reductions are noted in the table below.
| Brokerage service reduction | Custody expense reduction |
|
| Fidelity Advisor Biotechnology Fund | $50,315 | $– |
| Fidelity Advisor Communications Equipment Fund | 423 | – |
| Fidelity Advisor Consumer Discretionary Fund | 28,866 | – |
| Fidelity Advisor Electronics Fund | 20,234 | – |
| Fidelity Advisor Energy Fund | 95,454 | 104 |
| Fidelity Advisor Financial Services Fund | 17,929 | 47 |
| Fidelity Advisor Health Care Fund | 134,097 | 236 |
| Fidelity Advisor Industrials Fund | 17,152 | – |
| Fidelity Advisor Technology Fund | 246,803 | – |
| Fidelity Advisor Utilities Fund | 15,835 | – |
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses as follows:
| Amount | |
| Fidelity Advisor Biotechnology Fund | $26,524 |
| Fidelity Advisor Communications Equipment Fund | 81 |
| Fidelity Advisor Consumer Discretionary Fund | 2,473 |
| Fidelity Advisor Electronics Fund | 604 |
| Fidelity Advisor Energy Fund | 5,066 |
| Fidelity Advisor Financial Services Fund | 1,737 |
| Fidelity Advisor Health Care Fund | 21,846 |
| Fidelity Advisor Industrials Fund | 4,744 |
| Fidelity Advisor Technology Fund | 11,679 |
| Fidelity Advisor Utilities Fund | 1,697 |
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Year ended July 31, 2016 | Year ended July 31, 2015 | |
| Fidelity Advisor Biotechnology Fund | ||
| From net investment income | ||
| Class I | $– | $69,565 |
| Total | $– | $69,565 |
| From net realized gain | ||
| Class A | $71,428,446 | $19,162,759 |
| Class T | 8,780,759 | 3,137,062 |
| Class B | 350,358 | 191,809 |
| Class C | 46,525,088 | 13,249,824 |
| Class I | 62,237,298 | 15,620,780 |
| Total | $189,321,949 | $51,362,234 |
| Fidelity Advisor Communications Equipment Fund | ||
| From net investment income | ||
| Class A | $– | $11,846 |
| Class T | – | 1,754 |
| Class I | – | 11,722 |
| Total | $– | $25,322 |
| From net realized gain | ||
| Class A | $140,942 | $– |
| Class T | 120,506 | – |
| Class B | 8,665 | – |
| Class C | 87,907 | – |
| Class I | 29,305 | – |
| Total | $387,325 | $– |
| Fidelity Advisor Consumer Discretionary Fund | ||
| From net investment income | ||
| Class A | $145,315 | $– |
| Class I | 280,605 | – |
| Total | $425,920 | $– |
| From net realized gain | ||
| Class A | $2,490,947 | $6,488,273 |
| Class T | 567,555 | 2,268,637 |
| Class B | 33,959 | 224,707 |
| Class C | 1,218,277 | 2,737,034 |
| Class I | 1,174,042 | 2,204,805 |
| Total | $5,484,780 | $13,923,456 |
| Fidelity Advisor Electronics Fund | ||
| From net investment income | ||
| Class A | $113,188 | $13,078 |
| Class T | 30,107 | – |
| Class B | 373 | – |
| Class C | 23,745 | – |
| Class I | 133,338 | 44,329 |
| Total | $300,751 | $57,407 |
| From net realized gain | ||
| Class A | $3,392,087 | $128,913 |
| Class T | 1,000,803 | 34,794 |
| Class B | 31,868 | 598 |
| Class C | 2,046,878 | 43,270 |
| Class I | 2,464,994 | 169,927 |
| Total | $8,936,630 | $377,502 |
| Fidelity Advisor Energy Fund | ||
| From net investment income | ||
| Class A | $1,922,229 | $1,364,001 |
| Class T | 528,991 | 410,584 |
| Class B | 897 | – |
| Class C | 204,569 | 97,069 |
| Class I | 1,301,668 | 740,437 |
| Total | $3,958,354 | $2,612,091 |
| From net realized gain | ||
| Class A | $– | $14,838,103 |
| Class T | – | 10,229,565 |
| Class B | – | 735,058 |
| Class C | – | 5,981,735 |
| Class I | – | 4,387,354 |
| Total | $– | $36,171,815 |
| Fidelity Advisor Financial Services Fund | ||
| From net investment income | ||
| Class A | $487,874 | $677,086 |
| Class T | 110,989 | 166,609 |
| Class B | 2,181 | 7,587 |
| Class C | 104,614 | 95,653 |
| Class I | 251,888 | 227,501 |
| Total | $957,546 | $1,174,436 |
| From net realized gain | ||
| Class A | $83,636 | $– |
| Class T | 26,115 | – |
| Class B | 2,379 | – |
| Class C | 43,289 | – |
| Class I | 34,348 | – |
| Total | $189,767 | $– |
| Fidelity Advisor Health Care Fund | ||
| From net realized gain | ||
| Class A | $80,223,333 | $79,203,094 |
| Class T | 20,669,994 | 27,289,653 |
| Class B | 758,774 | 1,660,970 |
| Class C | 52,885,499 | 39,451,396 |
| Class I | 45,759,042 | 41,061,480 |
| Total | $200,296,642 | $188,666,593 |
| Fidelity Advisor Industrials Fund | ||
| From net investment income | ||
| Class A | $1,251,437 | $1,073,088 |
| Class T | 142,172 | 117,188 |
| Class B | – | 10,986 |
| Class I | 1,144,151 | 1,400,614 |
| Total | $2,537,760 | $2,601,876 |
| From net realized gain | ||
| Class A | $24,885,132 | $26,712,147 |
| Class T | 6,913,270 | 6,664,310 |
| Class B | 520,980 | 905,701 |
| Class C | 11,465,082 | 11,132,591 |
| Class I | 14,306,102 | 16,913,069 |
| Total | $58,090,566 | $62,327,818 |
| Fidelity Advisor Technology Fund | ||
| From net investment income | ||
| Class A | $– | $285,364 |
| Class I | – | 1,409,297 |
| Total | $– | $1,694,661 |
| From net realized gain | ||
| Class A | $20,472,702 | $33,752,271 |
| Class T | 9,063,088 | 16,437,395 |
| Class B | 374,802 | 983,656 |
| Class C | 6,550,928 | 9,419,892 |
| Class I | 33,607,301 | 55,049,067 |
| Total | $70,068,821 | $115,642,281 |
| Fidelity Advisor Utilities Fund | ||
| From net investment income | ||
| Class A | $2,494,667 | $2,209,427 |
| Class T | 696,864 | 589,279 |
| Class B | 13,894 | 23,317 |
| Class C | 548,207 | 465,161 |
| Class I | 602,641 | 721,558 |
| Total | $4,356,273 | $4,008,742 |
| From net realized gain | ||
| Class A | $3,341,067 | $8,639,872 |
| Class T | 1,100,541 | 2,863,183 |
| Class B | 58,860 | 255,750 |
| Class C | 1,254,979 | 3,177,658 |
| Class I | 717,817 | 2,367,568 |
| Total | $6,473,264 | $17,304,031 |
11. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| Shares | Shares | Dollars | Dollars | |
| Years ended July 31, | 2016 | 2015 | 2016 | 2015 |
| Fidelity Advisor Biotechnology Fund | ||||
| Class A | ||||
| Shares sold | 20,374,378 | 28,734,829 | $486,458,577 | $782,311,246 |
| Reinvestment of distributions | 2,387,343 | 750,777 | 66,988,829 | 17,834,437 |
| Shares redeemed | (21,904,309) | (9,674,834) | (483,498,927) | (251,598,976) |
| Net increase (decrease) | 857,412 | 19,810,772 | $69,948,479 | $548,546,707 |
| Class T | ||||
| Shares sold | 1,912,568 | 2,609,939 | $43,113,700 | $67,425,583 |
| Reinvestment of distributions | 319,202 | 134,415 | 8,560,989 | 3,058,643 |
| Shares redeemed | (2,294,307) | (1,158,298) | (48,667,903) | (29,041,801) |
| Net increase (decrease) | (62,537) | 1,586,056 | $3,006,786 | $41,442,425 |
| Class B | ||||
| Shares sold | 23,127 | 83,752 | $488,892 | $1,983,767 |
| Reinvestment of distributions | 13,390 | 8,590 | 330,876 | 180,710 |
| Shares redeemed | (328,587) | (138,999) | (5,983,799) | (3,242,788) |
| Net increase (decrease) | (292,070) | (46,657) | $(5,164,031) | $(1,078,311) |
| Class C | ||||
| Shares sold | 10,596,563 | 18,036,528 | $223,026,722 | $437,867,038 |
| Reinvestment of distributions | 1,618,886 | 528,140 | 40,002,670 | 11,164,448 |
| Shares redeemed | (11,105,389) | (4,090,881) | (214,386,694) | (97,122,016) |
| Net increase (decrease) | 1,110,060 | 14,473,787 | $48,642,698 | $351,909,470 |
| Class I | ||||
| Shares sold | 22,589,370 | 29,622,523 | $543,276,913 | $833,349,459 |
| Reinvestment of distributions | 1,787,031 | 532,595 | 52,663,804 | 13,257,162 |
| Shares redeemed | (26,641,629) | (9,644,195) | (614,169,645) | (265,760,117) |
| Net increase (decrease) | (2,265,228) | 20,510,923 | $(18,228,928) | $580,846,504 |
| Fidelity Advisor Communications Equipment Fund | ||||
| Class A | ||||
| Shares sold | 61,824 | 153,268 | $686,464 | $1,925,058 |
| Reinvestment of distributions | 12,164 | 914 | 134,093 | 11,238 |
| Shares redeemed | (81,049) | (167,571) | (893,648) | (2,111,373) |
| Net increase (decrease) | (7,061) | (13,389) | $(73,091) | $(175,077) |
| Class T | ||||
| Shares sold | 29,078 | 42,233 | $312,157 | $505,832 |
| Reinvestment of distributions | 11,237 | 146 | 119,674 | 1,738 |
| Shares redeemed | (56,633) | (56,809) | (598,222) | (686,152) |
| Net increase (decrease) | (16,318) | (14,430) | $(166,391) | $(178,582) |
| Class B | ||||
| Shares sold | 3 | – | $35 | $– |
| Reinvestment of distributions | 803 | – | 7,933 | – |
| Shares redeemed | (26,347) | (11,477) | (261,367) | (128,010) |
| Net increase (decrease) | (25,541) | (11,477) | $(253,399) | $(128,010) |
| Class C | ||||
| Shares sold | 20,424 | 55,503 | $201,589 | $631,530 |
| Reinvestment of distributions | 8,306 | – | 81,979 | – |
| Shares redeemed | (61,023) | (47,426) | (616,761) | (530,907) |
| Net increase (decrease) | (32,293) | 8,077 | $(333,193) | $100,623 |
| Class I | ||||
| Shares sold | 32,486 | 18,312 | $367,475 | $232,557 |
| Reinvestment of distributions | 2,247 | 868 | 25,646 | 11,030 |
| Shares redeemed | (16,972) | (150,382) | (195,689) | (2,006,379) |
| Net increase (decrease) | 17,761 | (131,202) | $197,432 | $(1,762,792) |
| Fidelity Advisor Consumer Discretionary Fund | ||||
| Class A | ||||
| Shares sold | 4,814,381 | 3,721,895 | $96,001,482 | $75,431,970 |
| Reinvestment of distributions | 125,818 | 314,662 | 2,487,810 | 5,921,151 |
| Shares redeemed | (3,384,129) | (1,680,428) | (65,627,046) | (32,834,119) |
| Net increase (decrease) | 1,556,070 | 2,356,129 | $32,862,246 | $48,519,002 |
| Class T | ||||
| Shares sold | 467,315 | 338,629 | $8,759,972 | $6,435,082 |
| Reinvestment of distributions | 29,568 | 122,984 | 549,955 | 2,187,662 |
| Shares redeemed | (340,307) | (182,245) | (6,370,883) | (3,405,237) |
| Net increase (decrease) | 156,576 | 279,368 | $2,939,044 | $5,217,507 |
| Class B | ||||
| Shares sold | 14,276 | 8,479 | $237,342 | $145,589 |
| Reinvestment of distributions | 1,812 | 10,956 | 29,530 | 172,497 |
| Shares redeemed | (96,775) | (47,549) | (1,564,551) | (771,428) |
| Net increase (decrease) | (80,687) | (28,114) | $(1,297,679) | $(453,342) |
| Class C | ||||
| Shares sold | 2,604,899 | 1,409,357 | $43,132,243 | $23,864,510 |
| Reinvestment of distributions | 66,579 | 157,518 | 1,085,908 | 2,481,906 |
| Shares redeemed | (1,219,501) | (334,437) | (19,584,504) | (5,460,293) |
| Net increase (decrease) | 1,451,977 | 1,232,438 | $24,633,647 | $20,886,123 |
| Class I | ||||
| Shares sold | 5,034,098 | 2,162,351 | $107,578,453 | $46,666,847 |
| Reinvestment of distributions | 55,475 | 93,807 | 1,176,667 | 1,886,667 |
| Shares redeemed | (3,816,680) | (1,194,006) | (80,049,247) | (25,608,119) |
| Net increase (decrease) | 1,272,893 | 1,062,152 | $28,705,873 | $22,945,395 |
| Fidelity Advisor Electronics Fund | ||||
| Class A | ||||
| Shares sold | 649,014 | 2,442,737 | $9,317,951 | $38,016,336 |
| Reinvestment of distributions | 243,337 | 7,644 | 3,248,410 | 119,544 |
| Shares redeemed | (1,328,391) | (1,143,527) | (18,785,248) | (17,859,819) |
| Net increase (decrease) | (436,040) | 1,306,854 | $(6,218,887) | $20,276,061 |
| Class T | ||||
| Shares sold | 103,928 | 393,756 | $1,432,589 | $5,963,896 |
| Reinvestment of distributions | 74,441 | 2,215 | 959,873 | 33,619 |
| Shares redeemed | (295,752) | (195,977) | (3,952,788) | (2,908,278) |
| Net increase (decrease) | (117,383) | 199,994 | $(1,560,326) | $3,089,237 |
| Class B | ||||
| Shares sold | 526 | 8,518 | $6,775 | $118,987 |
| Reinvestment of distributions | 2,652 | 39 | 31,733 | 551 |
| Shares redeemed | (26,335) | (16,542) | (340,997) | (232,148) |
| Net increase (decrease) | (23,157) | (7,985) | $(302,489) | $(112,610) |
| Class C | ||||
| Shares sold | 367,363 | 1,188,406 | $4,677,334 | $16,685,789 |
| Reinvestment of distributions | 160,178 | 2,732 | 1,907,126 | 38,744 |
| Shares redeemed | (604,623) | (265,701) | (7,649,533) | (3,757,943) |
| Net increase (decrease) | (77,082) | 925,437 | $(1,065,073) | $12,966,590 |
| Class I | ||||
| Shares sold | 790,386 | 3,205,885 | $12,303,195 | $51,968,937 |
| Reinvestment of distributions | 135,996 | 10,497 | 1,894,884 | 170,367 |
| Shares redeemed | (1,690,148) | (2,698,476) | (24,919,896) | (43,445,677) |
| Net increase (decrease) | (763,766) | 517,906 | $(10,721,817) | $8,693,627 |
| Fidelity Advisor Energy Fund | ||||
| Class A | ||||
| Shares sold | 5,025,799 | 4,817,511 | $143,627,691 | $172,397,292 |
| Reinvestment of distributions | 66,472 | 346,427 | 1,828,245 | 15,023,137 |
| Shares redeemed | (3,353,686) | (3,804,502) | (97,107,576) | (141,434,625) |
| Net increase (decrease) | 1,738,585 | 1,359,436 | $48,348,360 | $45,985,804 |
| Class T | ||||
| Shares sold | 872,793 | 895,677 | $25,702,490 | $32,882,150 |
| Reinvestment of distributions | 18,373 | 229,140 | 511,190 | 10,214,195 |
| Shares redeemed | (1,205,049) | (1,183,564) | (35,414,324) | (44,251,675) |
| Net increase (decrease) | (313,883) | (58,747) | $(9,200,644) | $(1,155,330) |
| Class B | ||||
| Shares sold | 5,109 | 43,535 | $134,216 | $1,451,766 |
| Reinvestment of distributions | 35 | 16,323 | 864 | 661,892 |
| Shares redeemed | (292,489) | (186,733) | (8,008,782) | (6,263,061) |
| Net increase (decrease) | (287,345) | (126,875) | $(7,873,702) | $(4,149,403) |
| Class C | ||||
| Shares sold | 4,491,809 | 3,704,544 | $118,552,042 | $122,458,966 |
| Reinvestment of distributions | 7,392 | 130,140 | 181,396 | 5,288,652 |
| Shares redeemed | (1,780,198) | (1,241,801) | (47,478,698) | (41,167,367) |
| Net increase (decrease) | 2,719,003 | 2,592,883 | $71,254,740 | $86,580,251 |
| Class I | ||||
| Shares sold | 4,747,633 | 3,563,036 | $143,380,782 | $133,557,103 |
| Reinvestment of distributions | 40,692 | 99,377 | 1,182,189 | 4,498,001 |
| Shares redeemed | (2,875,822) | (1,973,125) | (86,056,094) | (74,761,878) |
| Net increase (decrease) | 1,912,503 | 1,689,288 | $58,506,877 | $63,293,226 |
| Fidelity Advisor Financial Services Fund | ||||
| Class A | ||||
| Shares sold | 2,461,428 | 2,375,926 | $37,745,282 | $38,271,380 |
| Reinvestment of distributions | 34,331 | 37,600 | 519,430 | 601,602 |
| Shares redeemed | (2,437,261) | (1,370,832) | (35,887,745) | (21,745,625) |
| Net increase (decrease) | 58,498 | 1,042,694 | $2,376,967 | $17,127,357 |
| Class T | ||||
| Shares sold | 329,948 | 282,748 | $5,036,365 | $4,530,961 |
| Reinvestment of distributions | 8,782 | 9,927 | 131,908 | 158,623 |
| Shares redeemed | (464,648) | (327,213) | (6,810,235) | (5,144,018) |
| Net increase (decrease) | (125,918) | (34,538) | $(1,641,962) | $(454,434) |
| Class B | ||||
| Shares sold | 9,988 | 9,940 | $147,548 | $153,403 |
| Reinvestment of distributions | 304 | 462 | 4,404 | 7,229 |
| Shares redeemed | (252,485) | (154,232) | (3,578,817) | (2,370,354) |
| Net increase (decrease) | (242,193) | (143,830) | $(3,426,865) | $(2,209,722) |
| Class C | ||||
| Shares sold | 1,154,577 | 1,276,982 | $16,736,102 | $19,580,585 |
| Reinvestment of distributions | 9,045 | 5,490 | 129,709 | 84,931 |
| Shares redeemed | (1,103,196) | (661,896) | (15,422,240) | (9,959,897) |
| Net increase (decrease) | 60,426 | 620,576 | $1,443,571 | $9,705,619 |
| Class I | ||||
| Shares sold | 1,492,860 | 2,718,004 | $23,191,855 | $44,696,215 |
| Reinvestment of distributions | 13,725 | 9,845 | 212,871 | 161,164 |
| Shares redeemed | (2,712,520) | (1,276,123) | (40,632,527) | (20,659,247) |
| Net increase (decrease) | (1,205,935) | 1,451,726 | $(17,227,801) | $24,198,132 |
| Fidelity Advisor Health Care Fund | ||||
| Class A | ||||
| Shares sold | 9,336,496 | 16,613,714 | $350,828,959 | $685,795,856 |
| Reinvestment of distributions | 1,936,613 | 1,907,379 | 75,411,722 | 71,987,733 |
| Shares redeemed | (11,369,542) | (4,365,455) | (411,793,615) | (177,799,342) |
| Net increase (decrease) | (96,433) | 14,155,638 | $14,447,066 | $579,984,247 |
| Class T | ||||
| Shares sold | 1,352,279 | 2,292,430 | $47,552,154 | $89,470,281 |
| Reinvestment of distributions | 545,495 | 737,547 | 20,019,680 | 26,321,410 |
| Shares redeemed | (1,905,048) | (905,351) | (64,841,826) | (35,007,523) |
| Net increase (decrease) | (7,274) | 2,124,626 | $2,730,008 | $80,784,168 |
| Class B | ||||
| Shares sold | 16,220 | 49,985 | $514,491 | $1,711,713 |
| Reinvestment of distributions | 22,031 | 47,751 | 711,834 | 1,514,650 |
| Shares redeemed | (380,480) | (172,141) | (11,210,414) | (5,890,995) |
| Net increase (decrease) | (342,229) | (74,405) | $(9,984,089) | $(2,664,632) |
| Class C | ||||
| Shares sold | 6,641,532 | 12,628,362 | $205,634,061 | $437,473,337 |
| Reinvestment of distributions | 1,474,771 | 1,088,220 | 47,059,934 | 34,383,515 |
| Shares redeemed | (6,093,606) | (1,445,818) | (179,489,602) | (49,753,436) |
| Net increase (decrease) | 2,022,697 | 12,270,764 | $73,204,393 | $422,103,416 |
| Class I | ||||
| Shares sold | 10,191,430 | 13,587,551 | $405,731,198 | $597,091,181 |
| Reinvestment of distributions | 979,448 | 926,189 | 41,117,225 | 37,490,066 |
| Shares redeemed | (12,376,027) | (4,637,021) | (487,979,152) | (204,139,010) |
| Net increase (decrease) | (1,205,149) | 9,876,719 | $(41,130,729) | $430,442,237 |
| Fidelity Advisor Industrials Fund | ||||
| Class A | ||||
| Shares sold | 1,099,603 | 1,896,772 | $36,767,902 | $70,041,684 |
| Reinvestment of distributions | 771,777 | 707,344 | 24,606,761 | 25,707,295 |
| Shares redeemed | (3,011,685) | (3,868,022) | (100,345,381) | (142,586,857) |
| Net increase (decrease) | (1,140,305) | (1,263,906) | $(38,970,718) | $(46,837,878) |
| Class T | ||||
| Shares sold | 146,735 | 223,605 | $4,821,874 | $8,111,419 |
| Reinvestment of distributions | 219,403 | 183,489 | 6,858,376 | 6,551,657 |
| Shares redeemed | (513,052) | (477,116) | (16,678,141) | (17,277,571) |
| Net increase (decrease) | (146,914) | (70,022) | $(4,997,891) | $(2,614,495) |
| Class B | ||||
| Shares sold | 8,518 | 7,145 | $250,086 | $236,954 |
| Reinvestment of distributions | 16,748 | 23,129 | 482,266 | 769,253 |
| Shares redeemed | (223,888) | (197,915) | (6,773,722) | (6,710,202) |
| Net increase (decrease) | (198,622) | (167,641) | $(6,041,370) | $(5,703,995) |
| Class C | ||||
| Shares sold | 426,741 | 897,971 | $12,983,156 | $30,459,518 |
| Reinvestment of distributions | 324,873 | 266,310 | 9,447,456 | 8,933,204 |
| Shares redeemed | (1,423,756) | (1,333,978) | (43,021,482) | (45,225,201) |
| Net increase (decrease) | (672,142) | (169,697) | $(20,590,870) | $(5,832,479) |
| Class I | ||||
| Shares sold | 1,450,552 | 2,703,369 | $51,166,989 | $103,567,578 |
| Reinvestment of distributions | 386,271 | 388,187 | 12,880,051 | 14,699,436 |
| Shares redeemed | (3,622,247) | (4,045,495) | (125,352,471) | (154,607,514) |
| Net increase (decrease) | (1,785,424) | (953,939) | $(61,305,431) | $(36,340,500) |
| Fidelity Advisor Technology Fund | ||||
| Class A | ||||
| Shares sold | 2,819,642 | 2,913,106 | $96,436,633 | $105,555,201 |
| Reinvestment of distributions | 590,741 | 901,782 | 19,252,239 | 31,562,947 |
| Shares redeemed | (3,447,017) | (2,417,005) | (117,531,802) | (86,800,900) |
| Net increase (decrease) | (36,634) | 1,397,883 | $(1,842,930) | $50,317,248 |
| Class T | ||||
| Shares sold | 654,081 | 637,105 | $21,462,874 | $22,054,709 |
| Reinvestment of distributions | 284,010 | 476,624 | 8,858,269 | 16,015,842 |
| Shares redeemed | (1,204,815) | (866,616) | (39,345,718) | (29,828,780) |
| Net increase (decrease) | (266,724) | 247,113 | $(9,024,575) | $8,241,771 |
| Class B | ||||
| Shares sold | 6,709 | 11,273 | $200,635 | $348,144 |
| Reinvestment of distributions | 12,391 | 29,273 | 352,034 | 901,739 |
| Shares redeemed | (295,468) | (142,494) | (8,775,496) | (4,494,534) |
| Net increase (decrease) | (276,368) | (101,948) | $(8,222,827) | $(3,244,651) |
| Class C | ||||
| Shares sold | 1,051,890 | 1,277,139 | $31,371,226 | $40,629,084 |
| Reinvestment of distributions | 202,969 | 261,235 | 5,774,470 | 8,065,851 |
| Shares redeemed | (927,337) | (554,231) | (27,369,639) | (17,408,387) |
| Net increase (decrease) | 327,522 | 984,143 | $9,776,057 | $31,286,548 |
| Class I | ||||
| Shares sold | 2,328,486 | 23,671,191(a) | $84,913,369 | $899,915,317(a) |
| Reinvestment of distributions | 955,239 | 1,510,080 | 33,041,700 | 55,853,504 |
| Shares redeemed | (6,751,997) | (17,066,384)(b) | (246,495,833) | (649,080,123)(b) |
| Net increase (decrease) | (3,468,272) | 8,114,887 | $(128,540,764) | $306,688,698 |
| Fidelity Advisor Utilities Fund | ||||
| Class A | ||||
| Shares sold | 2,397,271 | 1,888,559 | $60,596,711 | $50,338,260 |
| Reinvestment of distributions | 240,305 | 365,507 | 5,414,225 | 9,845,503 |
| Shares redeemed | (1,682,909) | (2,512,099) | (41,634,818) | (66,117,493) |
| Net increase (decrease) | 954,667 | (258,033) | $24,376,118 | $(5,933,730) |
| Class T | ||||
| Shares sold | 543,660 | 388,662 | $14,096,302 | $10,348,248 |
| Reinvestment of distributions | 76,233 | 123,166 | 1,721,689 | 3,324,380 |
| Shares redeemed | (396,425) | (532,785) | (9,632,575) | (14,023,975) |
| Net increase (decrease) | 223,468 | (20,957) | $6,185,416 | $(351,347) |
| Class B | ||||
| Shares sold | 6,017 | 10,961 | $148,347 | $290,048 |
| Reinvestment of distributions | 2,783 | 9,053 | 62,667 | 242,668 |
| Shares redeemed | (114,968) | (87,257) | (2,921,136) | (2,288,453) |
| Net increase (decrease) | (106,168) | (67,243) | $(2,710,122) | $(1,755,737) |
| Class C | ||||
| Shares sold | 1,063,727 | 773,976 | $26,276,925 | $20,247,064 |
| Reinvestment of distributions | 71,102 | 116,026 | 1,573,006 | 3,068,131 |
| Shares redeemed | (599,522) | (884,724) | (14,443,544) | (22,817,991) |
| Net increase (decrease) | 535,307 | 5,278 | $13,406,387 | $497,204 |
| Class I | ||||
| Shares sold | 2,301,270 | 1,143,014 | $58,694,241 | $31,002,673 |
| Reinvestment of distributions | 49,611 | 90,001 | 1,138,487 | 2,465,972 |
| Shares redeemed | (1,347,589) | (1,705,406) | (34,650,031) | (45,532,863) |
| Net increase (decrease) | 1,003,292 | (472,391) | $25,182,697 | $(12,064,218) |
(a) Amount includes in-kind exchanges (see Note 5: Prior Year Exchanges In-Kind).
(b) Amount includes in-kind redemptions (see Note 5: Prior Year Redemptions In-Kind).
12. Other.
The Funds' organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Funds. In the normal course of business, the Funds may also enter into contracts that provide general indemnifications. The Funds' maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Funds. The risk of material loss from such claims is considered remote.
At the end of the period, Strategic Advisers Core Fund was the owner of record of approximately 30% of the total outstanding shares of Fidelity Advisor Technology Fund.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Advisor Series VII and the Shareholders of Fidelity Advisor Biotechnology Fund, Fidelity Advisor Communications Equipment Fund, Fidelity Advisor Consumer Discretionary Fund, Fidelity Advisor Electronics Fund, Fidelity Advisor Energy Fund, Fidelity Advisor Financial Services Fund, Fidelity Advisor Health Care Fund, Fidelity Advisor Industrials Fund, Fidelity Advisor Technology Fund and Fidelity Advisor Utilities Fund:
We have audited the accompanying statements of assets and liabilities of Fidelity Advisor Biotechnology Fund, Fidelity Advisor Communications Equipment Fund, Fidelity Advisor Consumer Discretionary Fund, Fidelity Advisor Electronics Fund, Fidelity Advisor Energy Fund, Fidelity Advisor Financial Services Fund, Fidelity Advisor Health Care Fund, Fidelity Advisor Industrials Fund, Fidelity Advisor Technology Fund and Fidelity Advisor Utilities Fund (the Funds), each a fund of the Fidelity Advisor Series VII, including the schedules of investments, as of July 31, 2016, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds' internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of July 31, 2016, by correspondence with the custodians and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Funds as of July 31, 2016, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
September 19, 2016
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and funds, as applicable, are listed below. The Board of Trustees governs each fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee each fund's activities, review contractual arrangements with companies that provide services to each fund, oversee management of the risks associated with such activities and contractual arrangements, and review each fund's performance. Each of the Trustees oversees 76 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the funds is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
Each fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing each fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the funds, is provided below.
Board Structure and Oversight Function. Brian B. Hogan is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the funds. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Michael E. Wiley serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The funds' Board oversees Fidelity's sector portfolios. Other Boards oversee Fidelity's equity and high income funds, and Fidelity's investment grade bond, money market, and asset allocation funds. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, each fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the funds' activities and associated risks. The Board, acting through its committees, has charged SelectCo and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the funds' business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the funds are carried out by or through SelectCo, its affiliates, and other service providers, the funds' exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the funds' activities, oversight is exercised primarily through the Operations and Audit Committees. Appropriate personnel, including but not limited to the funds' Chief Compliance Officer (CCO), SelectCo's internal auditor, the independent accountants, the funds' Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Brian B. Hogan (1964)
Year of Election or Appointment: 2014
Trustee
Chairman of the Board of Trustees
Mr. Hogan also serves as Trustee or Vice President of other funds. Mr. Hogan serves as a Director of FMR Investment Management (U.K.) Limited (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present) and President of the Equity Division of FMR (investment adviser firm, 2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager. Mr. Brian B. Hogan is not related to Mr. Colm A. Hogan.
* Determined to be an "Interested Trustee" by virtue of, among other things, his or her affiliation with the trust or various entities under common control with SelectCo.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for each fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
David A. Rosow (1942)
Year of Election or Appointment: 2013
Trustee
Mr. Rosow also serves as Trustee of other Fidelity® funds. Prior to his retirement in 2006, Mr. Rosow was the Chief Executive Officer, owner and operator of a number of private companies, which encompassed oil refining, drilling and marketing of petroleum products (including specialty petroleum products), the recreation industry, and real estate development. Mr. Rosow currently serves as a Director of Oxbow Carbon LLC (upgraders, marketers, and distributors of petroleum byproducts of the oil refining process, 2015-present) and Oxbridge Academy of the Palm Beaches (2015-present). Previously, Mr. Rosow served on the Fairfield Country Day School Board for 27 years, including as its President for 3 years, stepping down in 2006, as Lead Director and Chairman of the Audit Committee of Hudson United Bancorp (1996-2006), Chairman of the Board of Westport Bank and Trust (1992-1996), and as a Director of TD Banknorth (2006-2007). In addition, Mr. Rosow served as a member (2008-2014) and President (2009-2014) of the Town Council of Palm Beach, Florida. Mr. Rosow also served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013).
Garnett A. Smith (1947)
Year of Election or Appointment: 2013
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to Mr. Smith's retirement, he served as Chairman and Chief Executive Officer of Inbrand Corp. (manufacturer of personal absorbent products, 1990-1997). He also served as President (1986-1990) of Inbrand Corp. Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank. In addition, Mr. Smith served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013) and as a board member of the Jackson Hole Land Trust (2009-2012).
Michael E. Wiley (1950)
Year of Election or Appointment: 2008
Trustee
Chairman of the Independent Trustees
Mr. Wiley also serves as Trustee of other Fidelity® funds. Mr. Wiley serves as a Director of Tesoro Corporation (independent oil refiner and marketer, 2005-present), a Director of Tesoro Logistics LP (natural resources logistics, 2015-present), and a Director of Bill Barrett Corporation (exploration and production, 2005-present). In addition, Mr. Wiley also serves as a Director of Post Oak Bank (privately-held bank, 2004-present). Previously, Mr. Wiley served as a Trustee of other Fidelity® funds (2008-2013), as a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-2013), as a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-2010), as a Senior Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), as an Advisory Director of Riverstone Holdings (private investment), Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004), and as Director of Spinnaker Exploration Company (exploration and production, 2001-2005).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for each fund.
Advisory Board Members and Officers:
Correspondence intended for a Member of the Advisory Board may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Except for Anthony R. Rochte, correspondence intended for an officer may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Correspondence intended for Mr. Rochte may be sent to SelectCo, 1225 17th Street, Denver, Colorado 80202-5541. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Donald F. Donahue (1950)
Year of Election or Appointment: 2015
Member of the Advisory Board
Mr. Donahue also serves as a Member of the Advisory Board of other Fidelity® funds. Mr. Donahue is President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present) and a consultant for the Institute for Defense Analyses (national security, 2012-present). Previously, Mr. Donahue served as Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006), and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue serves as a Member (2012-present) and Co-Chairman (2016-present) of the Board of Directors of United Way of New York, Member of the Board of Directors of NYC Leadership Academy (2012-present) and Physicians for Human Rights (2013-present), and Member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). He also served as Chairman (2010-2012) and Member of the Board of Directors (2012-2013) of Omgeo, LLC (financial services), Treasurer of United Way of New York (2012-2016), and Member of the Board of Directors of XBRL US (financial services non-profit, 2009-2012) and the International Securities Services Association (2009-2012).
Christopher S. Bartel (1971)
Year of Election or Appointment: 2009
Vice President
Mr. Bartel also serves as Vice President of other funds. Mr. Bartel serves as a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present) and Fidelity Management & Research (Hong Kong) (investment adviser firm, 2012-present) and Head of Global Equity Research (2010-present). Previously, Mr. Bartel served as a Director, President, and Chief Executive Officer of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2012-2016), Senior Vice President of Equity Research (2009-2010), Managing Director of Research (2006-2009), and an analyst and portfolio manager (2000-2006).
Marc R. Bryant (1966)
Year of Election or Appointment: 2013
Secretary and Chief Legal Officer (CLO)
Mr. Bryant also serves as Secretary and CLO of other funds. Mr. Bryant serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company (investment adviser firm, 2015-present) and FMR Co., Inc. (investment adviser firm, 2015-present); Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2015-present) and Fidelity Investments Money Management, Inc. (investment adviser firm, 2015-present); and CLO of Fidelity Management & Research (Hong Kong) Limited and FMR Investment Management (U.K.) Limited (investment adviser firms, 2015-present) and Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and CLO of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006).
Jeffrey S. Christian (1961)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Christian also serves as Assistant Treasurer of other funds. Mr. Christian is an employee of Fidelity Investments (2003-present).
William C. Coffey (1969)
Year of Election or Appointment: 2009
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds, and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2013
President and Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Joseph DeSantis (1959)
Year of Election or Appointment: 2015
Vice President
Mr. DeSantis also serves as Vice President of other funds. Mr. DeSantis serves as Group Chief Investment Officer, Equities (2010-present) and is an employee of Fidelity Investments.
Stephanie J. Dorsey (1969)
Year of Election or Appointment: 2010
Assistant Treasurer
Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank.
Howard J. Galligan III (1966)
Year of Election or Appointment: 2014
Chief Financial Officer
Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (investment adviser firm, 2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011).
Scott C. Goebel (1968)
Year of Election or Appointment: 2015
Vice President
Mr. Goebel serves as Vice President of other funds and is an employee of Fidelity Investments (2001-present). Mr. Goebel serves as Senior Vice President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present). Previously, Mr. Goebel served as Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2013-2015), Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2010-2015), and Fidelity Research and Analysis Company (FRAC) (investment adviser firm, 2010-2015); General Counsel, Secretary, and Senior Vice President of FMR (investment adviser firm, 2008-2015) and FMR Co., Inc. (investment adviser firm, 2008-2015); Assistant Secretary of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2008-2015) and Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2008-2015); Chief Legal Officer (CLO) of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2008-2015); Secretary and CLO of certain Fidelity® funds (2008-2015); Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and certain funds (2007-2008); and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007).
James D. Gryglewicz (1972)
Year of Election or Appointment: 2014
Chief Compliance Officer
Mr. Gryglewicz also serves as Chief Compliance Officer of other funds. Mr. Gryglewicz serves as Compliance Officer of Strategic Advisers, Inc. (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present), Senior Vice President of Asset Management Compliance (2009-present), and is an employee of Fidelity Investments (2004-present).
Brian B. Hogan (1964)
Year of Election or Appointment: 2009
Vice President
Mr. Hogan also serves as Trustee or Vice President of other funds. Mr. Hogan serves as a Director of FMR Investment Management (U.K.) Limited (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present) and President of the Equity Division of FMR (investment adviser firm, 2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager. Mr. Brian B. Hogan is not related to Mr. Colm A. Hogan.
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan is an employee of Fidelity Investments (2005-present). Mr. Colm A. Hogan is not related to Mr. Brian B. Hogan.
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
John F. Papandrea (1972)
Year of Election or Appointment: 2016
Anti-Money Laundering (AML) Officer
Mr. Papandrea also serves as AML Officer of other funds. Mr. Papandrea is Vice President of FMR LLC (diversified financial services company, 2008-present) and is an employee of Fidelity Investments (2005-present).
Anthony R. Rochte (1968)
Year of Election or Appointment: 2013
Vice President
Mr. Rochte also serves as Vice President of other funds. Mr. Rochte serves as President of Fidelity SelectCo, LLC (investment adviser firm, 2012-present) and is an employee of Fidelity Investments (2012-present). Prior to joining Fidelity Investments, Mr. Rochte served as Senior Managing Director and head of State Street Global Advisors' North American Intermediary Business Group (2006-2012).
Stacie M. Smith (1974)
Year of Election or Appointment: 2013
Assistant Treasurer
Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (1996-2009). Previously, Ms. Smith served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Renee Stagnone (1975)
Year of Election or Appointment: 2016
Assistant Treasurer
Ms. Stagnone also serves as an officer of other funds. Ms. Stagnone is an employee of Fidelity Investments (1997-present). Previously, Ms. Stagnone served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (February 1, 2016 to July 31, 2016).
Actual Expenses
The first line of the accompanying table for each class of each fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, each Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of each fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, each Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Annualized Expense Ratio-A | Beginning Account Value February 1, 2016 | Ending Account Value July 31, 2016 | Expenses Paid During Period-B February 1, 2016 to July 31, 2016 |
|
| Fidelity Advisor Biotechnology Fund | ||||
| Class A | 1.04% | |||
| Actual | $1,000.00 | $1,114.60 | $5.47 | |
| Hypothetical-C | $1,000.00 | $1,019.69 | $5.22 | |
| Class T | 1.39% | |||
| Actual | $1,000.00 | $1,113.00 | $7.30 | |
| Hypothetical-C | $1,000.00 | $1,017.95 | $6.97 | |
| Class C | 1.79% | |||
| Actual | $1,000.00 | $1,110.40 | $9.39 | |
| Hypothetical-C | $1,000.00 | $1,015.96 | $8.97 | |
| Class I | .77% | |||
| Actual | $1,000.00 | $1,116.50 | $4.05 | |
| Hypothetical-C | $1,000.00 | $1,021.03 | $3.87 | |
| Fidelity Advisor Communications Equipment Fund | ||||
| Class A | 1.40% | |||
| Actual | $1,000.00 | $1,205.40 | $7.68 | |
| Hypothetical-C | $1,000.00 | $1,017.90 | $7.02 | |
| Class T | 1.65% | |||
| Actual | $1,000.00 | $1,203.50 | $9.04 | |
| Hypothetical-C | $1,000.00 | $1,016.66 | $8.27 | |
| Class C | 2.15% | |||
| Actual | $1,000.00 | $1,200.00 | $11.76 | |
| Hypothetical-C | $1,000.00 | $1,014.17 | $10.77 | |
| Class I | 1.15% | |||
| Actual | $1,000.00 | $1,205.80 | $6.31 | |
| Hypothetical-C | $1,000.00 | $1,019.14 | $5.77 | |
| Fidelity Advisor Consumer Discretionary Fund | ||||
| Class A | 1.09% | |||
| Actual | $1,000.00 | $1,096.30 | $5.68 | |
| Hypothetical-C | $1,000.00 | $1,019.44 | $5.47 | |
| Class T | 1.38% | |||
| Actual | $1,000.00 | $1,094.70 | $7.19 | |
| Hypothetical-C | $1,000.00 | $1,018.00 | $6.92 | |
| Class C | 1.84% | |||
| Actual | $1,000.00 | $1,092.20 | $9.57 | |
| Hypothetical-C | $1,000.00 | $1,015.71 | $9.22 | |
| Class I | .82% | |||
| Actual | $1,000.00 | $1,097.70 | $4.28 | |
| Hypothetical-C | $1,000.00 | $1,020.79 | $4.12 | |
| Fidelity Advisor Electronics Fund | ||||
| Class A | 1.25% | |||
| Actual | $1,000.00 | $1,264.40 | $7.04 | |
| Hypothetical-C | $1,000.00 | $1,018.65 | $6.27 | |
| Class T | 1.65% | |||
| Actual | $1,000.00 | $1,261.70 | $9.28 | |
| Hypothetical-C | $1,000.00 | $1,016.66 | $8.27 | |
| Class C | 2.01% | |||
| Actual | $1,000.00 | $1,258.80 | $11.29 | |
| Hypothetical-C | $1,000.00 | $1,014.87 | $10.07 | |
| Class I | .90% | |||
| Actual | $1,000.00 | $1,265.80 | $5.07 | |
| Hypothetical-C | $1,000.00 | $1,020.39 | $4.52 | |
| Fidelity Advisor Energy Fund | ||||
| Class A | 1.11% | |||
| Actual | $1,000.00 | $1,175.20 | $6.00 | |
| Hypothetical-C | $1,000.00 | $1,019.34 | $5.57 | |
| Class T | 1.38% | |||
| Actual | $1,000.00 | $1,173.70 | $7.46 | |
| Hypothetical-C | $1,000.00 | $1,018.00 | $6.92 | |
| Class C | 1.83% | |||
| Actual | $1,000.00 | $1,171.00 | $9.88 | |
| Hypothetical-C | $1,000.00 | $1,015.76 | $9.17 | |
| Class I | .84% | |||
| Actual | $1,000.00 | $1,176.60 | $4.55 | |
| Hypothetical-C | $1,000.00 | $1,020.69 | $4.22 | |
| Fidelity Advisor Financial Services Fund | ||||
| Class A | 1.14% | |||
| Actual | $1,000.00 | $1,094.30 | $5.94 | |
| Hypothetical-C | $1,000.00 | $1,019.19 | $5.72 | |
| Class T | 1.44% | |||
| Actual | $1,000.00 | $1,092.90 | $7.49 | |
| Hypothetical-C | $1,000.00 | $1,017.70 | $7.22 | |
| Class C | 1.88% | |||
| Actual | $1,000.00 | $1,090.70 | $9.77 | |
| Hypothetical-C | $1,000.00 | $1,015.51 | $9.42 | |
| Class I | .83% | |||
| Actual | $1,000.00 | $1,096.20 | $4.33 | |
| Hypothetical-C | $1,000.00 | $1,020.74 | $4.17 | |
| Fidelity Advisor Health Care Fund | ||||
| Class A | 1.04% | |||
| Actual | $1,000.00 | $1,115.20 | $5.47 | |
| Hypothetical-C | $1,000.00 | $1,019.69 | $5.22 | |
| Class T | 1.31% | |||
| Actual | $1,000.00 | $1,113.70 | $6.88 | |
| Hypothetical-C | $1,000.00 | $1,018.35 | $6.57 | |
| Class C | 1.79% | |||
| Actual | $1,000.00 | $1,111.00 | $9.40 | |
| Hypothetical-C | $1,000.00 | $1,015.96 | $8.97 | |
| Class I | .78% | |||
| Actual | $1,000.00 | $1,116.80 | $4.11 | |
| Hypothetical-C | $1,000.00 | $1,020.98 | $3.92 | |
| Fidelity Advisor Industrials Fund | ||||
| Class A | 1.06% | |||
| Actual | $1,000.00 | $1,154.70 | $5.68 | |
| Hypothetical-C | $1,000.00 | $1,019.59 | $5.32 | |
| Class T | 1.32% | |||
| Actual | $1,000.00 | $1,153.20 | $7.07 | |
| Hypothetical-C | $1,000.00 | $1,018.30 | $6.62 | |
| Class C | 1.81% | |||
| Actual | $1,000.00 | $1,150.60 | $9.68 | |
| Hypothetical-C | $1,000.00 | $1,015.86 | $9.07 | |
| Class I | .79% | |||
| Actual | $1,000.00 | $1,156.30 | $4.24 | |
| Hypothetical-C | $1,000.00 | $1,020.93 | $3.97 | |
| Fidelity Advisor Technology Fund | ||||
| Class A | 1.09% | |||
| Actual | $1,000.00 | $1,170.70 | $5.88 | |
| Hypothetical-C | $1,000.00 | $1,019.44 | $5.47 | |
| Class T | 1.35% | |||
| Actual | $1,000.00 | $1,169.20 | $7.28 | |
| Hypothetical-C | $1,000.00 | $1,018.15 | $6.77 | |
| Class C | 1.84% | |||
| Actual | $1,000.00 | $1,166.30 | $9.91 | |
| Hypothetical-C | $1,000.00 | $1,015.71 | $9.22 | |
| Class I | .75% | |||
| Actual | $1,000.00 | $1,172.50 | $4.05 | |
| Hypothetical-C | $1,000.00 | $1,021.13 | $3.77 | |
| Fidelity Advisor Utilities Fund | ||||
| Class A | 1.11% | |||
| Actual | $1,000.00 | $1,164.10 | $5.97 | |
| Hypothetical-C | $1,000.00 | $1,019.34 | $5.57 | |
| Class T | 1.41% | |||
| Actual | $1,000.00 | $1,162.50 | $7.58 | |
| Hypothetical-C | $1,000.00 | $1,017.85 | $7.07 | |
| Class C | 1.87% | |||
| Actual | $1,000.00 | $1,159.90 | $10.04 | |
| Hypothetical-C | $1,000.00 | $1,015.56 | $9.37 | |
| Class I | .84% | |||
| Actual | $1,000.00 | $1,165.70 | $4.52 | |
| Hypothetical-C | $1,000.00 | $1,020.69 | $4.22 | |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/ 366 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
The funds hereby designate as capital gain dividend the amounts noted below for the taxable year ended July 31, 2016, or, if subsequently determined to be different, the net capital gain of such year.
| Fidelity Advisor Health Care Fund | $0 |
| Fidelity Advisor Financial Services Fund | $0 |
| Fidelity Advisor Industrials Fund | $31,385,115 |
| Fidelity Advisor Consumer Discretionary Fund | $0 |
| Fidelity Advisor Utilities Fund | $0 |
| Fidelity Advisor Technology Fund | $0 |
| Fidelity Advisor Energy Fund | $0 |
| Fidelity Advisor Biotechnology Fund | $0 |
| Fidelity Advisor Communications Equipment Fund | $352,771 |
| Fidelity Advisor Electronics Fund | $ 0 |
A percentage of the dividends distributed during the fiscal year for the following funds qualify for the dividends–received deduction for corporate shareholders:
| Class A | Class T | Class B | Class C | Class I | |
| Fidelity Advisor Health Care Fund | |||||
| September, 2015 | 5% | 5% | 6% | 5% | 5% |
| Fidelity Advisor Financial Services Fund | |||||
| December, 2015 | 97% | 100% | 100% | 100% | 79% |
| Fidelity Advisor Industrials Fund | |||||
| September, 2015 | 100% | 100% | 0% | 0% | 100% |
| December, 2015 | 100% | 100% | 0% | 0% | 100% |
| Fidelity Advisor Consumer Discretionary Fund | |||||
| September, 2015 | 100% | 0% | 0% | 0% | 100% |
| December, 2015 | 100% | 0% | 0% | 0% | 100% |
| Fidelity Advisor Utilities Fund | |||||
| September, 2015 | 100% | 100% | 100% | 100% | 100% |
| December, 2015 | 100% | 100% | 100% | 100% | 100% |
| Fidelity Advisor Technology Fund | |||||
| September, 2015 | 10% | 11% | 13% | 12% | 10% |
| Fidelity Advisor Energy Fund | |||||
| September, 2015 | 100% | 100% | 0% | 0% | 100% |
| December, 2015 | 100% | 100% | 100% | 100% | 100% |
| Fidelity Advisor Biotechnology Fund | |||||
| September, 2015 | 6% | 7% | 10% | 8% | 5% |
| Fidelity Advisor Communications Equipment Fund | |||||
| December, 2015 | 100% | 100% | 0% | 0% | 100% |
| Fidelity Advisor Electronics Fund | |||||
| September, 2015 | 10% | 11% | 11% | 11% | 10% |
| December, 2015 | 100% | 100% | 100% | 100% | 100% |
A percentage of the dividends distributed during the fiscal year for the following funds may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
| Class A | Class T | Class B | Class C | Class I | |
| Fidelity Advisor Health Care Fund | |||||
| September, 2015 | 8% | 9% | 9% | 9% | 8% |
| Fidelity Advisor Financial Services Fund | |||||
| December, 2015 | 100% | 100% | 100% | 100% | 100% |
| Fidelity Advisor Industrials Fund | |||||
| September, 2015 | 100% | 100% | 0% | 0% | 100% |
| December, 2015 | 100% | 100% | 0% | 0% | 100% |
| Fidelity Advisor Consumer Discretionary Fund | |||||
| September, 2015 | 100% | 0% | 0% | 0% | 100% |
| December, 2015 | 100% | 0% | 0% | 0% | 100% |
| Fidelity Advisor Utilities Fund | |||||
| September, 2015 | 100% | 100% | 100% | 100% | 100% |
| December, 2015 | 100% | 100% | 100% | 100% | 100% |
| Fidelity Advisor Technology Fund | |||||
| September, 2015 | 13% | 13% | 15% | 14% | 12% |
| Fidelity Advisor Energy Fund | |||||
| September, 2015 | 100% | 100% | 0% | 0% | 100% |
| December, 2015 | 100% | 100% | 100% | 100% | 100% |
| Fidelity Advisor Biotechnology Fund | |||||
| September, 2015 | 7% | 8% | 12% | 10% | 7% |
| Fidelity Advisor Communications Equipment Fund | |||||
| December, 2015 | 100% | 100% | 0% | 0% | 100% |
| Fidelity Advisor Electronics Fund | |||||
| September, 2015 | 12% | 13% | 13% | 13% | 12% |
| December, 2015 | 100% | 100% | 100% | 100% | 100% |
The funds will notify shareholders in January 2017 of amounts for use in preparing 2016 income tax returns.
AFOC-ANN-0916
1.762411.115
|
Fidelity Advisor® Real Estate Fund Class A, Class T, Class C and Class I Annual Report July 31, 2016 |
|
|
Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2016 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended July 31, 2016 | Past 1 year | Past 5 years | Past 10 years |
| Class A (incl. 5.75% sales charge) | 11.53% | 10.79% | 6.38% |
| Class T (incl. 3.50% sales charge) | 13.89% | 11.05% | 6.37% |
| Class C (incl. contingent deferred sales charge) | 16.40% | 11.26% | 6.20% |
| Class I | 18.61% | 12.40% | 7.28% |
Class C shares' contingent deferred sales charges included in the past one year, past five years and past ten years total return figures are 1%, 0% and 0%, respectively.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Real Estate Fund - Class A on July 31, 2006, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
| Period Ending Values | ||
|
| $18,556 | Fidelity Advisor® Real Estate Fund - Class A |
|
| $21,089 | S&P 500® Index |
Management's Discussion of Fund Performance
Market Recap: U.S. equities gained modestly for the year ending July 31, 2016, overcoming persistent concern about global economic growth, uncertainty regarding U.S. monetary policy and the U.K.’s late-June vote to leave the European Union, dubbed Brexit. The S&P 500® index rose 5.61%, with larger-cap, value-oriented stocks and defensive sectors shining brightest. Volatility peaked in the early weeks of 2016, as continued oil-price weakness and U.S.-dollar strength pushed the S&P 500® to its worst January since 2009. Markets then rose beginning in February amid U.S. job gains, a broad rally in energy and materials markets, global economic stimulus and perceived softening of monetary policy by the U.S. Federal Reserve. The June 23 Brexit vote surprised markets and resulted in a sharp two-day decline for stocks, followed by a rebound as investor sentiment shifted and remained positive through July 31. For the year, dividend-rich telecom services (+26%), utilities (+23%) and consumer staples (+12%) led the way amid strong investor demand for yield. Industrials (+10%) and information technology (+10%) also outperformed, as did materials (+8%), despite a weak commodities environment overall. Conversely, a strong run for real estate stocks couldn’t keep financials (-4%) from losing ground, as low interest rates continued to squeeze bank profits. Comments from Portfolio Manager Samuel Wald: For the year, the fund’s share classes (excluding sales charges, if applicable) posted gains in the high teens that trailed the 20.92% return of the sector benchmark, the Dow Jones U.S. Select Real Estate Securities Index. The fund also far outstripped the broader S&P 500®. Versus the benchmark, the fund was hampered by security selection in the industrial/office, residential and hotels categories. Conversely, stock picking among health care and diversified real estate investment trusts (REITs), along with an underweighting in the lagging hotels group, helped the most. FelCor Lodging Trust was the fund’s biggest individual detractor by a wide margin, as the market appeared skeptical of the hotel company’s ability to reduce debt by selling lower-quality properties. Another large detractor was Digital Realty Trust, an operator of data centers that I chose to underweight in favor of competitors, DuPont Fabros and CoreSite, which together more than offset the former's negative impact. DuPont Fabros was not held at period end. In residential REITs, an overweighting in apartment operator Essex Property Trust hurt most. In contrast, the fund benefited from increased exposure to outperforming health care REITs Healthcare Realty Trust and Ventas. Our top individual contributor was DCT Industrial Trust, which produced strong results this period in line with growth in electronic commerce.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| Simon Property Group, Inc. | 11.9 | 11.7 |
| Ventas, Inc. | 5.8 | 5.0 |
| Boston Properties, Inc. | 5.8 | 5.4 |
| AvalonBay Communities, Inc. | 5.2 | 3.0 |
| Public Storage | 4.3 | 5.3 |
| Extra Space Storage, Inc. | 4.1 | 4.7 |
| DCT Industrial Trust, Inc. | 3.4 | 2.9 |
| Mid-America Apartment Communities, Inc. | 3.4 | 3.3 |
| Urban Edge Properties | 3.2 | 3.1 |
| Essex Property Trust, Inc. | 3.1 | 4.6 |
| 50.2 |
Top Five REIT Sectors as of July 31, 2016
| % of fund's net assets | % of fund's net assets 6 months ago | |
| REITs - Apartments | 17.2 | 18.2 |
| REITs - Regional Malls | 16.0 | 16.1 |
| REITs - Office Property | 15.4 | 13.0 |
| REITs - Health Care | 11.9 | 10.5 |
| REITs - Shopping Centers | 9.1 | 9.4 |
Asset Allocation (% of fund's net assets)
| As of July 31, 2016 | ||
| Stocks | 98.5% | |
| Short-Term Investments and Net Other Assets (Liabilities) | 1.5% | |
| As of January 31, 2016 | ||
| Stocks | 98.2% | |
| Short-Term Investments and Net Other Assets (Liabilities) | 1.8% | |
Investments July 31, 2016
Showing Percentage of Net Assets
| Common Stocks - 98.5% | |||
| Shares | Value | ||
| Hotels, Restaurants & Leisure - 1.0% | |||
| Hotels, Resorts & Cruise Lines - 1.0% | |||
| Hilton Worldwide Holdings, Inc. | 453,000 | $10,505,070 | |
| Real Estate Investment Trusts - 97.5% | |||
| REITs - Apartments - 17.2% | |||
| American Homes 4 Rent Class A | 251,300 | 5,453,210 | |
| AvalonBay Communities, Inc. | 301,240 | 55,925,206 | |
| Equity Residential (SBI) | 373,009 | 25,360,882 | |
| Essex Property Trust, Inc. | 145,347 | 33,993,756 | |
| Mid-America Apartment Communities, Inc. | 343,700 | 36,439,074 | |
| Monogram Residential Trust, Inc. | 70,300 | 752,913 | |
| UDR, Inc. | 741,600 | 27,609,768 | |
| 185,534,809 | |||
| REITs - Diversified - 4.9% | |||
| Digital Realty Trust, Inc. (a) | 100,200 | 10,466,892 | |
| Forest City Realty Trust, Inc. | 822,835 | 19,460,048 | |
| Liberty Property Trust (SBI) | 386,500 | 15,993,370 | |
| Vornado Realty Trust | 60,083 | 6,452,914 | |
| 52,373,224 | |||
| REITs - Health Care - 11.9% | |||
| HCP, Inc. | 5,700 | 223,611 | |
| Healthcare Realty Trust, Inc. | 849,600 | 30,721,536 | |
| Sabra Health Care REIT, Inc. | 502,500 | 12,014,775 | |
| Ventas, Inc. | 827,005 | 62,984,701 | |
| Welltower, Inc. | 290,619 | 23,054,805 | |
| 128,999,428 | |||
| REITs - Hotels - 4.0% | |||
| Ashford Hospitality Prime, Inc. | 208,500 | 3,135,840 | |
| Chesapeake Lodging Trust | 99,100 | 2,504,257 | |
| FelCor Lodging Trust, Inc. | 1,936,289 | 12,295,435 | |
| Host Hotels & Resorts, Inc. | 1,171,234 | 20,777,691 | |
| LaSalle Hotel Properties (SBI) | 180,600 | 4,975,530 | |
| 43,688,753 | |||
| REITs - Management/Investment - 4.1% | |||
| American Assets Trust, Inc. | 109,100 | 5,005,508 | |
| Coresite Realty Corp. | 257,200 | 21,226,716 | |
| Empire State Realty Trust, Inc. | 877,800 | 18,425,022 | |
| 44,657,246 | |||
| REITs - Manufactured Homes - 1.0% | |||
| Equity Lifestyle Properties, Inc. | 134,403 | 11,053,303 | |
| REITs - Office Property - 15.4% | |||
| Boston Properties, Inc. | 442,347 | 62,870,779 | |
| Douglas Emmett, Inc. | 542,000 | 20,617,680 | |
| Highwoods Properties, Inc. (SBI) | 305,700 | 17,033,604 | |
| Mack-Cali Realty Corp. | 1,188,400 | 33,512,880 | |
| New York (REIT), Inc. | 279,800 | 2,669,292 | |
| SL Green Realty Corp. | 104,765 | 12,343,412 | |
| VEREIT, Inc. | 1,539,500 | 17,026,870 | |
| 166,074,517 | |||
| REITs - Regional Malls - 16.0% | |||
| General Growth Properties, Inc. | 619,200 | 19,783,440 | |
| Pennsylvania Real Estate Investment Trust (SBI) | 494,600 | 12,582,624 | |
| Simon Property Group, Inc. | 565,450 | 128,379,769 | |
| Taubman Centers, Inc. | 145,500 | 11,773,860 | |
| 172,519,693 | |||
| REITs - Shopping Centers - 9.1% | |||
| Brixmor Property Group, Inc. | 507,300 | 14,407,320 | |
| Cedar Shopping Centers, Inc. | 1,449,643 | 11,655,130 | |
| DDR Corp. | 100,400 | 1,981,896 | |
| Federal Realty Investment Trust (SBI) | 85,302 | 14,475,749 | |
| Kite Realty Group Trust | 252,732 | 7,685,580 | |
| Ramco-Gershenson Properties Trust (SBI) | 508,322 | 10,085,108 | |
| Urban Edge Properties | 1,143,841 | 34,212,284 | |
| WP Glimcher, Inc. | 299,200 | 3,793,856 | |
| 98,296,923 | |||
| REITs - Storage - 8.4% | |||
| Extra Space Storage, Inc. | 519,900 | 44,721,798 | |
| Public Storage | 192,150 | 45,908,478 | |
| 90,630,276 | |||
| REITs - Warehouse/Industrial - 5.5% | |||
| DCT Industrial Trust, Inc. | 727,050 | 36,512,451 | |
| Prologis, Inc. | 281,077 | 15,315,886 | |
| Terreno Realty Corp. | 252,600 | 7,034,910 | |
| 58,863,247 | |||
| TOTAL REAL ESTATE INVESTMENT TRUSTS | 1,052,691,419 | ||
| TOTAL COMMON STOCKS | |||
| (Cost $759,119,511) | 1,063,196,489 | ||
| Money Market Funds - 2.0% | |||
| Fidelity Cash Central Fund, 0.42% (b) | 20,227,702 | 20,227,702 | |
| Fidelity Securities Lending Cash Central Fund, 0.45% (b)(c) | 1,463,000 | 1,463,000 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $21,690,702) | 21,690,702 | ||
| TOTAL INVESTMENT PORTFOLIO - 100.5% | |||
| (Cost $780,810,213) | 1,084,887,191 | ||
| NET OTHER ASSETS (LIABILITIES) - (0.5)% | (5,445,658) | ||
| NET ASSETS - 100% | $1,079,441,533 |
Legend
(a) Security or a portion of the security is on loan at period end.
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(c) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
| Fund | Income earned |
| Fidelity Cash Central Fund | $51,737 |
| Fidelity Securities Lending Cash Central Fund | 987 |
| Total | $52,724 |
Investment Valuation
All investments are categorized as Level 1 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| July 31, 2016 | ||
| Assets | ||
| Investment in securities, at value (including securities loaned of $1,389,318) — See accompanying schedule: Unaffiliated issuers (cost $759,119,511) | $1,063,196,489 | |
| Fidelity Central Funds (cost $21,690,702) | 21,690,702 | |
| Total Investments (cost $780,810,213) | $1,084,887,191 | |
| Receivable for investments sold | 11,881,143 | |
| Receivable for fund shares sold | 1,489,359 | |
| Dividends receivable | 283,939 | |
| Distributions receivable from Fidelity Central Funds | 7,255 | |
| Other receivables | 46,464 | |
| Total assets | 1,098,595,351 | |
| Liabilities | ||
| Payable for investments purchased | $14,844,109 | |
| Payable for fund shares redeemed | 1,845,130 | |
| Accrued management fee | 481,298 | |
| Distribution and service plan fees payable | 227,615 | |
| Other affiliated payables | 212,772 | |
| Other payables and accrued expenses | 79,894 | |
| Collateral on securities loaned, at value | 1,463,000 | |
| Total liabilities | 19,153,818 | |
| Net Assets | $1,079,441,533 | |
| Net Assets consist of: | ||
| Paid in capital | $747,791,692 | |
| Undistributed net investment income | 2,886,835 | |
| Accumulated undistributed net realized gain (loss) on investments | 24,686,028 | |
| Net unrealized appreciation (depreciation) on investments | 304,076,978 | |
| Net Assets | $1,079,441,533 | |
| Calculation of Maximum Offering Price | ||
| Class A: | ||
| Net Asset Value and redemption price per share ($370,408,276 ÷ 14,287,287 shares) | $25.93 | |
| Maximum offering price per share (100/94.25 of $25.93) | $27.51 | |
| Class T: | ||
| Net Asset Value and redemption price per share ($199,430,553 ÷ 7,698,852 shares) | $25.90 | |
| Maximum offering price per share (100/96.50 of $25.90) | $26.84 | |
| Class C: | ||
| Net Asset Value and offering price per share ($86,754,543 ÷ 3,411,451 shares)(a) | $25.43 | |
| Class I: | ||
| Net Asset Value, offering price and redemption price per share ($422,848,161 ÷ 16,170,629 shares) | $26.15 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Year ended July 31, 2016 | ||
| Investment Income | ||
| Dividends | $25,270,164 | |
| Income from Fidelity Central Funds | 52,724 | |
| Total income | 25,322,888 | |
| Expenses | ||
| Management fee | $5,150,329 | |
| Transfer agent fees | 2,168,383 | |
| Distribution and service plan fees | 2,480,010 | |
| Accounting and security lending fees | 315,013 | |
| Custodian fees and expenses | 32,927 | |
| Independent trustees' fees and expenses | 18,758 | |
| Registration fees | 93,079 | |
| Audit | 53,840 | |
| Legal | 10,211 | |
| Miscellaneous | 10,794 | |
| Total expenses before reductions | 10,333,344 | |
| Expense reductions | (74,486) | 10,258,858 |
| Net investment income (loss) | 15,064,030 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 29,473,051 | |
| Total net realized gain (loss) | 29,473,051 | |
| Change in net unrealized appreciation (depreciation) on investment securities | 119,116,271 | |
| Net gain (loss) | 148,589,322 | |
| Net increase (decrease) in net assets resulting from operations | $163,653,352 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended July 31, 2016 | Year ended July 31, 2015 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $15,064,030 | $11,937,523 |
| Net realized gain (loss) | 29,473,051 | 43,067,889 |
| Change in net unrealized appreciation (depreciation) | 119,116,271 | 17,845,717 |
| Net increase (decrease) in net assets resulting from operations | 163,653,352 | 72,851,129 |
| Distributions to shareholders from net investment income | (14,426,839) | (11,243,675) |
| Distributions to shareholders from net realized gain | (23,588,298) | (53,617,748) |
| Total distributions | (38,015,137) | (64,861,423) |
| Share transactions - net increase (decrease) | 25,518,551 | 137,991,224 |
| Total increase (decrease) in net assets | 151,156,766 | 145,980,930 |
| Net Assets | ||
| Beginning of period | 928,284,767 | 782,303,837 |
| End of period | $1,079,441,533 | $928,284,767 |
| Other Information | ||
| Undistributed net investment income end of period | $2,886,835 | $2,441,287 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Real Estate Fund Class A
| Years ended July 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $22.90 | $22.57 | $20.92 | $19.83 | $18.24 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .37 | .30 | .31 | .22 | .17 |
| Net realized and unrealized gain (loss) | 3.61 | 1.82 | 2.13 | 1.27 | 2.02 |
| Total from investment operations | 3.98 | 2.12 | 2.44 | 1.49 | 2.19 |
| Distributions from net investment income | (.36) | (.30) | (.27) | (.23) | (.13) |
| Distributions from net realized gain | (.59) | (1.49) | (.52) | (.17) | (.47) |
| Total distributions | (.95) | (1.79) | (.79) | (.40) | (.60) |
| Net asset value, end of period | $25.93 | $22.90 | $22.57 | $20.92 | $19.83 |
| Total ReturnB,C | 18.33% | 9.70% | 12.34% | 7.66% | 12.81% |
| Ratios to Average Net AssetsD,E | |||||
| Expenses before reductions | 1.09% | 1.10% | 1.16% | 1.17% | 1.19% |
| Expenses net of fee waivers, if any | 1.09% | 1.10% | 1.16% | 1.17% | 1.19% |
| Expenses net of all reductions | 1.08% | 1.09% | 1.15% | 1.16% | 1.18% |
| Net investment income (loss) | 1.62% | 1.32% | 1.47% | 1.06% | .98% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $370,408 | $327,489 | $274,136 | $246,323 | $199,303 |
| Portfolio turnover rateF | 62% | 57% | 83% | 63% | 48% |
A Calculated based on average shares outstanding during the period.
B Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
C Total returns do not include the effect of the sales charges.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Real Estate Fund Class T
| Years ended July 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $22.88 | $22.55 | $20.91 | $19.82 | $18.24 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .32 | .25 | .26 | .17 | .13 |
| Net realized and unrealized gain (loss) | 3.60 | 1.82 | 2.13 | 1.28 | 2.02 |
| Total from investment operations | 3.92 | 2.07 | 2.39 | 1.45 | 2.15 |
| Distributions from net investment income | (.30) | (.25) | (.23) | (.19) | (.10) |
| Distributions from net realized gain | (.59) | (1.49) | (.52) | (.17) | (.47) |
| Total distributions | (.90)B | (1.74) | (.75) | (.36) | (.57) |
| Net asset value, end of period | $25.90 | $22.88 | $22.55 | $20.91 | $19.82 |
| Total ReturnC,D | 18.02% | 9.46% | 12.07% | 7.43% | 12.52% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | 1.33% | 1.34% | 1.37% | 1.38% | 1.43% |
| Expenses net of fee waivers, if any | 1.33% | 1.34% | 1.37% | 1.38% | 1.43% |
| Expenses net of all reductions | 1.32% | 1.33% | 1.36% | 1.38% | 1.43% |
| Net investment income (loss) | 1.38% | 1.09% | 1.26% | .85% | .73% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $199,431 | $168,375 | $138,783 | $114,717 | $86,987 |
| Portfolio turnover rateG | 62% | 57% | 83% | 63% | 48% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $.90 per share is comprised of distributions from net investment income of $.303 and distributions from net realized gain of $.594 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Real Estate Fund Class C
| Years ended July 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $22.49 | $22.23 | $20.61 | $19.55 | $18.03 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .19 | .13 | .15 | .07 | .04 |
| Net realized and unrealized gain (loss) | 3.54 | 1.78 | 2.10 | 1.26 | 1.98 |
| Total from investment operations | 3.73 | 1.91 | 2.25 | 1.33 | 2.02 |
| Distributions from net investment income | (.20) | (.16) | (.11) | (.10) | (.03) |
| Distributions from net realized gain | (.59) | (1.49) | (.52) | (.17) | (.47) |
| Total distributions | (.79) | (1.65) | (.63) | (.27) | (.50) |
| Net asset value, end of period | $25.43 | $22.49 | $22.23 | $20.61 | $19.55 |
| Total ReturnB,C | 17.40% | 8.85% | 11.52% | 6.89% | 11.92% |
| Ratios to Average Net AssetsD,E | |||||
| Expenses before reductions | 1.86% | 1.87% | 1.90% | 1.90% | 1.93% |
| Expenses net of fee waivers, if any | 1.86% | 1.87% | 1.90% | 1.90% | 1.93% |
| Expenses net of all reductions | 1.85% | 1.86% | 1.89% | 1.89% | 1.93% |
| Net investment income (loss) | .85% | .56% | .73% | .33% | .23% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $86,755 | $79,291 | $64,822 | $75,461 | $55,064 |
| Portfolio turnover rateF | 62% | 57% | 83% | 63% | 48% |
A Calculated based on average shares outstanding during the period.
B Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
C Total returns do not include the effect of the contingent deferred sales charge.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Fidelity Advisor Real Estate Fund Class I
| Years ended July 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $23.09 | $22.74 | $21.07 | $19.97 | $18.36 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .43 | .36 | .36 | .28 | .22 |
| Net realized and unrealized gain (loss) | 3.64 | 1.83 | 2.15 | 1.27 | 2.03 |
| Total from investment operations | 4.07 | 2.19 | 2.51 | 1.55 | 2.25 |
| Distributions from net investment income | (.41) | (.35) | (.32) | (.28) | (.17) |
| Distributions from net realized gain | (.59) | (1.49) | (.52) | (.17) | (.47) |
| Total distributions | (1.01)B | (1.84) | (.84) | (.45) | (.64) |
| Net asset value, end of period | $26.15 | $23.09 | $22.74 | $21.07 | $19.97 |
| Total ReturnC | 18.61% | 9.99% | 12.64% | 7.92% | 13.12% |
| Ratios to Average Net AssetsD,E | |||||
| Expenses before reductions | .84% | .85% | .89% | .90% | .93% |
| Expenses net of fee waivers, if any | .83% | .85% | .89% | .90% | .93% |
| Expenses net of all reductions | .83% | .84% | .88% | .89% | .93% |
| Net investment income (loss) | 1.87% | 1.57% | 1.74% | 1.33% | 1.23% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $422,848 | $349,301 | $298,932 | $305,619 | $283,054 |
| Portfolio turnover rateF | 62% | 57% | 83% | 63% | 48% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $1.01 per share is comprised of distributions from net investment income of $.413 and distributions from net realized gain of $.594 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended July 31, 2016
1. Organization.
Fidelity Advisor Real Estate Fund (the Fund) is a non-diversified fund of Fidelity Advisor Series VII (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, and Class I shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.
After the close of business on June 24, 2016, all outstanding Class B shares were converted to Class A shares. All current fiscal period dollar and share amounts for Class B presented in the Notes to Financial Statements are for the period August 1, 2015 through June 24, 2016.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fidelity SelectCo, LLC (SelectCo) Fair Value Committee (the Committee). In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of July 31, 2016, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to deferred trustees compensation and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
| Gross unrealized appreciation | $310,026,840 |
| Gross unrealized depreciation | (9,199,095) |
| Net unrealized appreciation (depreciation) on securities | $300,827,745 |
| Tax Cost | $784,059,446 |
The tax-based components of distributable earnings as of period end were as follows:
| Undistributed ordinary income | $2,913,878 |
| Undistributed long-term capital gain | $27,935,262 |
| Net unrealized appreciation (depreciation) on securities and other investments | $300,827,745 |
The tax character of distributions paid was as follows:
| July 31, 2016 | July 31, 2015 | |
| Ordinary Income | $14,426,839 | $ 11,243,675 |
| Long-term Capital Gains | 23,588,298 | 53,617,748 |
| Total | $38,015,137 | $ 64,861,423 |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $578,191,801 and $576,090,042, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity SelectCo, LLC (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by Fidelity Management & Research Company (FMR) and the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annual management fee rate was .55% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution Fee | Service Fee | Total Fees | Retained by FDC |
|
| Class A | -% | .25% | $814,280 | $2,245 |
| Class T | .25% | .25% | 870,556 | – |
| Class B | .75% | .25% | 27,655 | 20,741 |
| Class C | .75% | .25% | 767,519 | 121,060 |
| $2,480,010 | $144,046 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained by FDC |
|
| Class A | $56,774 |
| Class T | 9,749 |
| Class B(a) | 302 |
| Class C(a) | 11,001 |
| $77,826 |
(a) When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| Amount | % of Class-Level Average Net Assets |
|
| Class A | $759,710 | .23 |
| Class T | 383,429 | .22 |
| Class B | 7,892 | .29 |
| Class C | 194,644 | .25 |
| Class I | 822,708 | .23 |
| $2,168,383 |
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $4,055 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $1,936 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. On the settlement date of the loan, 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. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $987.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $67,790 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $35.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $6,661.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Year ended July 31, 2016 | Year ended July 31, 2015 | |
| From net investment income | ||
| Class A | $5,067,842 | $4,035,347 |
| Class T | 2,282,274 | 1,622,788 |
| Class B | 23,309 | 34,655 |
| Class C | 668,898 | 511,454 |
| Class I | 6,384,516 | 5,039,431 |
| Total | $14,426,839 | $11,243,675 |
| From net realized gain | ||
| Class A | $8,321,843 | $19,013,153 |
| Class T | 4,346,704 | 9,450,491 |
| Class B | 96,771 | 364,345 |
| Class C | 2,036,085 | 4,547,430 |
| Class I | 8,786,895 | 20,242,329 |
| Total | $23,588,298 | $53,617,748 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| Shares | Shares | Dollars | Dollars | |
| Year ended July 31, 2016 | Year ended July 31, 2015 | Year ended July 31, 2016 | Year ended July 31, 2015 | |
| Class A | ||||
| Shares sold | 4,736,671 | 6,477,452 | $108,878,379 | $150,703,408 |
| Reinvestment of distributions | 609,681 | 994,050 | 12,982,247 | 22,291,454 |
| Shares redeemed | (5,361,287) | (5,315,431) | (121,804,208) | (122,321,981) |
| Net increase (decrease) | (14,935) | 2,156,071 | $56,418 | $50,672,881 |
| Class T | ||||
| Shares sold | 1,880,765 | 2,562,977 | $42,893,613 | $59,571,645 |
| Reinvestment of distributions | 305,958 | 484,775 | 6,498,077 | 10,861,687 |
| Shares redeemed | (1,847,070) | (1,841,950) | (42,128,667) | (42,022,412) |
| Net increase (decrease) | 339,653 | 1,205,802 | $7,263,023 | $28,410,920 |
| Class B | ||||
| Shares sold | 1,732 | 16,002 | $39,637 | $364,459 |
| Reinvestment of distributions | 5,627 | 16,893 | 116,514 | 373,842 |
| Shares redeemed | (177,126) | (115,814) | (4,084,276) | (2,618,545) |
| Net increase (decrease) | (169,767) | (82,919) | $(3,928,125) | $(1,880,244) |
| Class C | ||||
| Shares sold | 728,624 | 1,502,434 | $16,601,869 | $34,498,632 |
| Reinvestment of distributions | 120,168 | 210,658 | 2,492,064 | 4,650,868 |
| Shares redeemed | (963,362) | (1,103,640) | (21,459,688) | (24,943,789) |
| Net increase (decrease) | (114,570) | 609,452 | $(2,365,755) | $14,205,711 |
| Class I | ||||
| Shares sold | 6,231,007 | 6,270,229 | $143,673,256 | $146,901,080 |
| Reinvestment of distributions | 571,386 | 857,158 | 12,312,697 | 19,361,443 |
| Shares redeemed | (5,761,958) | (5,142,590) | (131,492,963) | (119,680,567) |
| Net increase (decrease) | 1,040,435 | 1,984,797 | $24,492,990 | $46,581,956 |
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Advisor Series VII and Shareholders of Fidelity Advisor Real Estate Fund:
We have audited the accompanying statement of assets and liabilities of Fidelity Advisor Real Estate Fund (the Fund), a fund of Fidelity Advisor Series VII, including the schedule of investments, as of July 31, 2016, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of July 31, 2016, by correspondence with the custodians and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Fidelity Advisor Real Estate Fund as of July 31, 2016, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
September 14, 2016
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Each of the Trustees oversees 76 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. Brian B. Hogan is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Michael E. Wiley serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's sector portfolios. Other Boards oversee Fidelity's equity and high income funds, and Fidelity's investment grade bond, money market, and asset allocation funds. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged SelectCo and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through SelectCo, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations and Audit Committees. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), SelectCo's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Brian B. Hogan (1964)
Year of Election or Appointment: 2014
Trustee
Chairman of the Board of Trustees
Mr. Hogan also serves as Trustee or Vice President of other funds. Mr. Hogan serves as a Director of FMR Investment Management (U.K.) Limited (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present) and President of the Equity Division of FMR (investment adviser firm, 2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager. Mr. Brian B. Hogan is not related to Mr. Colm A. Hogan.
* Determined to be an "Interested Trustee" by virtue of, among other things, his or her affiliation with the trust or various entities under common control with SelectCo.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
David A. Rosow (1942)
Year of Election or Appointment: 2013
Trustee
Mr. Rosow also serves as Trustee of other Fidelity® funds. Prior to his retirement in 2006, Mr. Rosow was the Chief Executive Officer, owner and operator of a number of private companies, which encompassed oil refining, drilling and marketing of petroleum products (including specialty petroleum products), the recreation industry, and real estate development. Mr. Rosow currently serves as a Director of Oxbow Carbon LLC (upgraders, marketers, and distributors of petroleum byproducts of the oil refining process, 2015-present) and Oxbridge Academy of the Palm Beaches (2015-present). Previously, Mr. Rosow served on the Fairfield Country Day School Board for 27 years, including as its President for 3 years, stepping down in 2006, as Lead Director and Chairman of the Audit Committee of Hudson United Bancorp (1996-2006), Chairman of the Board of Westport Bank and Trust (1992-1996), and as a Director of TD Banknorth (2006-2007). In addition, Mr. Rosow served as a member (2008-2014) and President (2009-2014) of the Town Council of Palm Beach, Florida. Mr. Rosow also served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013).
Garnett A. Smith (1947)
Year of Election or Appointment: 2013
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to Mr. Smith's retirement, he served as Chairman and Chief Executive Officer of Inbrand Corp. (manufacturer of personal absorbent products, 1990-1997). He also served as President (1986-1990) of Inbrand Corp. Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank. In addition, Mr. Smith served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013) and as a board member of the Jackson Hole Land Trust (2009-2012).
Michael E. Wiley (1950)
Year of Election or Appointment: 2008
Trustee
Chairman of the Independent Trustees
Mr. Wiley also serves as Trustee of other Fidelity® funds. Mr. Wiley serves as a Director of Tesoro Corporation (independent oil refiner and marketer, 2005-present), a Director of Tesoro Logistics LP (natural resources logistics, 2015-present), and a Director of Bill Barrett Corporation (exploration and production, 2005-present). In addition, Mr. Wiley also serves as a Director of Post Oak Bank (privately-held bank, 2004-present). Previously, Mr. Wiley served as a Trustee of other Fidelity® funds (2008-2013), as a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-2013), as a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-2010), as a Senior Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), as an Advisory Director of Riverstone Holdings (private investment), Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004), and as Director of Spinnaker Exploration Company (exploration and production, 2001-2005).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for a Member of the Advisory Board may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Except for Anthony R. Rochte, correspondence intended for an officer may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Correspondence intended for Mr. Rochte may be sent to SelectCo, 1225 17th Street, Denver, Colorado 80202-5541. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Donald F. Donahue (1950)
Year of Election or Appointment: 2015
Member of the Advisory Board
Mr. Donahue also serves as a Member of the Advisory Board of other Fidelity® funds. Mr. Donahue is President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present) and a consultant for the Institute for Defense Analyses (national security, 2012-present). Previously, Mr. Donahue served as Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006), and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue serves as a Member (2012-present) and Co-Chairman (2016-present) of the Board of Directors of United Way of New York, Member of the Board of Directors of NYC Leadership Academy (2012-present) and Physicians for Human Rights (2013-present), and Member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). He also served as Chairman (2010-2012) and Member of the Board of Directors (2012-2013) of Omgeo, LLC (financial services), Treasurer of United Way of New York (2012-2016), and Member of the Board of Directors of XBRL US (financial services non-profit, 2009-2012) and the International Securities Services Association (2009-2012).
Christopher S. Bartel (1971)
Year of Election or Appointment: 2009
Vice President
Mr. Bartel also serves as Vice President of other funds. Mr. Bartel serves as a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present) and Fidelity Management & Research (Hong Kong) (investment adviser firm, 2012-present) and Head of Global Equity Research (2010-present). Previously, Mr. Bartel served as a Director, President, and Chief Executive Officer of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2012-2016), Senior Vice President of Equity Research (2009-2010), Managing Director of Research (2006-2009), and an analyst and portfolio manager (2000-2006).
Marc R. Bryant (1966)
Year of Election or Appointment: 2013
Secretary and Chief Legal Officer (CLO)
Mr. Bryant also serves as Secretary and CLO of other funds. Mr. Bryant serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company (investment adviser firm, 2015-present) and FMR Co., Inc. (investment adviser firm, 2015-present); Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2015-present) and Fidelity Investments Money Management, Inc. (investment adviser firm, 2015-present); and CLO of Fidelity Management & Research (Hong Kong) Limited and FMR Investment Management (U.K.) Limited (investment adviser firms, 2015-present) and Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and CLO of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006).
Jeffrey S. Christian (1961)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Christian also serves as Assistant Treasurer of other funds. Mr. Christian is an employee of Fidelity Investments (2003-present).
William C. Coffey (1969)
Year of Election or Appointment: 2009
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds, and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2013
President and Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Joseph DeSantis (1959)
Year of Election or Appointment: 2015
Vice President
Mr. DeSantis also serves as Vice President of other funds. Mr. DeSantis serves as Group Chief Investment Officer, Equities (2010-present) and is an employee of Fidelity Investments.
Stephanie J. Dorsey (1969)
Year of Election or Appointment: 2010
Assistant Treasurer
Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank.
Howard J. Galligan III (1966)
Year of Election or Appointment: 2014
Chief Financial Officer
Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (investment adviser firm, 2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011).
Scott C. Goebel (1968)
Year of Election or Appointment: 2015
Vice President
Mr. Goebel serves as Vice President of other funds and is an employee of Fidelity Investments (2001-present). Mr. Goebel serves as Senior Vice President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present). Previously, Mr. Goebel served as Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2013-2015), Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2010-2015), and Fidelity Research and Analysis Company (FRAC) (investment adviser firm, 2010-2015); General Counsel, Secretary, and Senior Vice President of FMR (investment adviser firm, 2008-2015) and FMR Co., Inc. (investment adviser firm, 2008-2015); Assistant Secretary of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2008-2015) and Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2008-2015); Chief Legal Officer (CLO) of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2008-2015); Secretary and CLO of certain Fidelity® funds (2008-2015); Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and certain funds (2007-2008); and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007).
James D. Gryglewicz (1972)
Year of Election or Appointment: 2014
Chief Compliance Officer
Mr. Gryglewicz also serves as Chief Compliance Officer of other funds. Mr. Gryglewicz serves as Compliance Officer of Strategic Advisers, Inc. (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present), Senior Vice President of Asset Management Compliance (2009-present), and is an employee of Fidelity Investments (2004-present).
Brian B. Hogan (1964)
Year of Election or Appointment: 2009
Vice President
Mr. Hogan also serves as Trustee or Vice President of other funds. Mr. Hogan serves as a Director of FMR Investment Management (U.K.) Limited (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present) and President of the Equity Division of FMR (investment adviser firm, 2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager. Mr. Brian B. Hogan is not related to Mr. Colm A. Hogan.
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan is an employee of Fidelity Investments (2005-present). Mr. Colm A. Hogan is not related to Mr. Brian B. Hogan.
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
John F. Papandrea (1972)
Year of Election or Appointment: 2016
Anti-Money Laundering (AML) Officer
Mr. Papandrea also serves as AML Officer of other funds. Mr. Papandrea is Vice President of FMR LLC (diversified financial services company, 2008-present) and is an employee of Fidelity Investments (2005-present).
Anthony R. Rochte (1968)
Year of Election or Appointment: 2013
Vice President
Mr. Rochte also serves as Vice President of other funds. Mr. Rochte serves as President of Fidelity SelectCo, LLC (investment adviser firm, 2012-present) and is an employee of Fidelity Investments (2012-present). Prior to joining Fidelity Investments, Mr. Rochte served as Senior Managing Director and head of State Street Global Advisors' North American Intermediary Business Group (2006-2012).
Stacie M. Smith (1974)
Year of Election or Appointment: 2013
Assistant Treasurer
Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (1996-2009). Previously, Ms. Smith served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Renee Stagnone (1975)
Year of Election or Appointment: 2016
Assistant Treasurer
Ms. Stagnone also serves as an officer of other funds. Ms. Stagnone is an employee of Fidelity Investments (1997-present). Previously, Ms. Stagnone served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (February 1, 2016 to July 31, 2016).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Annualized Expense Ratio-A | Beginning Account Value February 1, 2016 | Ending Account Value July 31, 2016 | Expenses Paid During Period-B February 1, 2016 to July 31, 2016 |
|
| Class A | 1.08% | |||
| Actual | $1,000.00 | $1,194.20 | $5.89 | |
| Hypothetical-C | $1,000.00 | $1,019.49 | $5.42 | |
| Class T | 1.32% | |||
| Actual | $1,000.00 | $1,192.20 | $7.19 | |
| Hypothetical-C | $1,000.00 | $1,018.30 | $6.62 | |
| Class C | 1.85% | |||
| Actual | $1,000.00 | $1,189.50 | $10.07 | |
| Hypothetical-C | $1,000.00 | $1,015.66 | $9.27 | |
| Class I | .82% | |||
| Actual | $1,000.00 | $1,195.60 | $4.48 | |
| Hypothetical-C | $1,000.00 | $1,020.79 | $4.12 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
The Board of Trustees of Fidelity Advisor Real Estate Fund voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities, and dividends derived from net investment income:
| Pay Date | Record Date | Dividends | Capital Gains | |
| Fidelity Advisor Real Estate Fund | ||||
| Class A | 09/12/16 | 09/09/16 | $0.082 | $0.673 |
| Class T | 09/12/16 | 09/09/16 | $0.067 | $0.673 |
| Class I | 09/12/16 | 09/09/16 | $0.099 | $0.673 |
| Class C | 09/12/16 | 09/09/16 | $0.035 | $0.673 |
The fund hereby designates as a capital gain dividend with respect to the taxable year ended July 31, 2016, $28,936,190, or, if subsequently determined to be different, the net capital gain of such year.
A total of 0.04% of the dividends distributed during the fiscal year was derived from interest on U.S. Government securities which is generally exempt from state income tax.
The fund will notify shareholders in January 2017 of amounts for use in preparing 2016 income tax returns.
ARE-ANN-0916
1.789690.113
Item 2.
Code of Ethics
As of the end of the period, July 31, 2016, Fidelity Advisor Series VII (the trust) has adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its President and Treasurer and its Chief Financial Officer. A copy of the code of ethics is filed as an exhibit to this Form N-CSR.
Item 3.
Audit Committee Financial Expert
The Board of Trustees of the trust has determined that David A. Rosow is an audit committee financial expert, as defined in Item 3 of Form N-CSR. Mr. Rosow is independent for purposes of Item 3 of Form N-CSR.
Item 4.
Principal Accountant Fees and Services
Fees and Services
The following table presents fees billed by Deloitte & Touche LLP, the member firms of Deloitte Touche Tohmatsu, and their respective affiliates (collectively, “Deloitte Entities”) in each of the last two fiscal years for services rendered to Fidelity Advisor Biotechnology Fund, Fidelity Advisor Communications Equipment Fund, Fidelity Advisor Consumer Discretionary Fund, Fidelity Advisor Electronics Fund, Fidelity Advisor Energy Fund, Fidelity Advisor Financial Services Fund, Fidelity Advisor Health Care Fund, Fidelity Advisor Industrials Fund, Fidelity Advisor Real Estate Fund, Fidelity Advisor Technology Fund, and Fidelity Advisor Utilities Fund (the “Funds”):
Services Billed by Deloitte Entities
July 31, 2016 FeesA
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
Fidelity Advisor Biotechnology Fund | $59,000 | $- | $5,100 | $1,300 |
Fidelity Advisor Communications Equipment Fund | $38,000 | $- | $4,900 | $900 |
Fidelity Advisor Consumer Discretionary Fund | $36,000 | $- | $6,100 | $900 |
Fidelity Advisor Electronics Fund | $36,000 | $- | $5,200 | $900 |
Fidelity Advisor Energy Fund | $38,000 | $- | $7,300 | $1,000 |
Fidelity Advisor Financial Services Fund | $38,000 | $- | $6,900 | $1,000 |
Fidelity Advisor Health Care Fund | $39,000 | $- | $6,200 | $1,200 |
Fidelity Advisor Industrials Fund | $37,000 | $- | $6,100 | $1,000 |
Fidelity Advisor Real Estate Fund | $41,000 | $- | $6,100 | $1,100 |
Fidelity Advisor Technology Fund | $53,000 | $- | $6,100 | $1,100 |
Fidelity Advisor Utilities Fund | $36,000 | $- | $6,400 | $900 |
July 31, 2015 FeesA
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
Fidelity Advisor Biotechnology Fund | $38,000 | $- | $4,700 | $1,100 |
Fidelity Advisor Communications Equipment Fund | $38,000 | $- | $4,700 | $600 |
Fidelity Advisor Consumer Discretionary Fund | $37,000 | $- | $5,800 | $700 |
Fidelity Advisor Electronics Fund | $37,000 | $- | $4,700 | $600 |
Fidelity Advisor Energy Fund | $38,000 | $- | $7,300 | $800 |
Fidelity Advisor Financial Services Fund | $38,000 | $- | $7,500 | $700 |
Fidelity Advisor Health Care Fund | $38,000 | $- | $5,800 | $1,100 |
Fidelity Advisor Industrials Fund | $37,000 | $- | $5,800 | $800 |
Fidelity Advisor Real Estate Fund | $41,000 | $- | $5,800 | $800 |
Fidelity Advisor Technology Fund | $50,000 | $- | $5,800 | $900 |
Fidelity Advisor Utilities Fund | $36,000 | $- | $6,500 | $700 |
A Amounts may reflect rounding.
The following table presents fees billed by Deloitte Entities that were required to be approved by the Audit Committee for services that relate directly to the operations and financial reporting of the Funds and that are rendered on behalf of Fidelity SelectCo, LLC (“SelectCo”) and entities controlling, controlled by, or under common control with SelectCo (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) that provide ongoing services to the Funds (“Fund Service Providers”):
Services Billed by Deloitte Entities
| July 31, 2016A | July 31, 2015A |
Audit-Related Fees | $35,000 | $- |
Tax Fees | $10,000 | $- |
All Other Fees | $- | $175,000 |
A Amounts may reflect rounding.
“Audit-Related Fees” represent fees billed for assurance and related services that are reasonably related to the performance of the fund audit or the review of the fund's financial statements and that are not reported under Audit Fees.
“Tax Fees” represent fees billed for tax compliance, tax advice or tax planning that relate directly to the operations and financial reporting of the fund.
“All Other Fees” represent fees billed for services provided to the fund or Fund Service Provider, a significant portion of which are assurance related, that relate directly to the operations and financial reporting of the fund, excluding those services that are reported under Audit Fees, Audit-Related Fees or Tax Fees.
Assurance services must be performed by an independent public accountant.
* * *
The aggregate non-audit fees billed by Deloitte Entities for services rendered to the Funds, SelectCo (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any Fund Service Provider for each of the last two fiscal years of the Funds are as follows:
Billed By | July 31, 2016 A | July 31, 2015 A |
Deloitte Entities | $155,000 | $610,000 |
A Amounts may reflect rounding.
The trust's Audit Committee has considered non-audit services that were not pre-approved that were provided by Deloitte Entities to Fund Service Providers to be compatible with maintaining the independence of Deloitte Entities in its audit of the Funds, taking into account representations from Deloitte Entities, in accordance with Public Company Accounting Oversight Board rules, regarding its independence from the Funds and their related entities and SelectCo’s review of the appropriateness and permissibility under applicable law of such non-audit services prior to their provision to the Fund Service Providers.
Audit Committee Pre-Approval Policies and Procedures
The trust’s Audit Committee must pre-approve all audit and non-audit services provided by a fund’s independent registered public accounting firm relating to the operations or financial reporting of the fund. Prior to the commencement of any audit or non-audit services to a fund, the Audit Committee reviews the services to determine whether they are appropriate and permissible under applicable law.
The Audit Committee has adopted policies and procedures to, among other purposes, provide a framework for the Committee’s consideration of non-audit services by the audit firms that audit the Fidelity funds. The policies and procedures require that any non-audit service provided by a fund audit firm to a Fidelity fund and any non-audit service provided by a fund auditor to a Fund Service Provider that relates directly to the operations and financial reporting of a Fidelity fund (“Covered Service”) are subject to approval by the Audit Committee before such service is provided.
All Covered Services must be approved in advance of provision of the service either: (i) by formal resolution of the Audit Committee, or (ii) by oral or written approval of the service by the Chair of the Audit Committee (or if the Chair is unavailable, such other member of the Audit Committee as may be designated by the Chair to act in the Chair’s absence). The approval contemplated by (ii) above is permitted where the Treasurer determines that action on such an engagement is necessary before the next meeting of the Audit Committee.
Non-audit services provided by a fund audit firm to a Fund Service Provider that do not relate directly to the operations and financial reporting of a Fidelity fund are reported to the Audit Committee on a periodic basis.
Non-Audit Services Approved Pursuant to Rule 2-01(c)(7)(i)(C) and (ii) of Regulation S-X (“De Minimis Exception”)
There were no non-audit services approved or required to be approved by the Audit Committee pursuant to the De Minimis Exception during the Funds’ last two fiscal years relating to services provided to (i) the Funds or (ii) any Fund Service Provider that relate directly to the operations and financial reporting of the Funds.
Item 5.
Audit Committee of Listed Registrants
Not applicable.
Item 6.
Investments
(a)
Not applicable.
(b)
Not applicable
Item 7.
Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8.
Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9.
Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10.
Submission of Matters to a Vote of Security Holders
There were no material changes to the procedures by which shareholders may recommend nominees to the trust’s Board of Trustees.
Item 11.
Controls and Procedures
(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the trust’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) provide reasonable assurances that material information relating to the trust is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.
(a)(ii) There was no change in the trust’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the trust’s internal control over financial reporting.
Item 12.
Exhibits
(a) | (1) | Code of Ethics pursuant to Item 2 of Form N-CSR is filed and attached hereto as EX-99.CODE ETH. |
(a) | (2) | Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT. |
(a) | (3) | Not applicable. |
(b) |
| Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Fidelity Advisor Series VII
By: | /s/Adrien E. Deberghes |
| Adrien E. Deberghes |
| President and Treasurer |
|
|
Date: | September 27, 2016 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/Adrien E. Deberghes |
| Adrien E. Deberghes |
| President and Treasurer |
|
|
Date: | September 27, 2016 |
By: | /s/Howard J. Galligan III |
| Howard J. Galligan III |
| Chief Financial Officer |
|
|
Date: | September 27, 2016 |