0000354046-14-000017.txt : 20140827 0000354046-14-000017.hdr.sgml : 20140827 20140827110805 ACCESSION NUMBER: 0000354046-14-000017 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 35 CONFORMED PERIOD OF REPORT: 20140630 FILED AS OF DATE: 20140827 DATE AS OF CHANGE: 20140827 EFFECTIVENESS DATE: 20140827 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIDELITY HASTINGS STREET TRUST CENTRAL INDEX KEY: 0000035348 IRS NUMBER: 000000000 STATE OF INCORPORATION: MA FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-00215 FILM NUMBER: 141067189 BUSINESS ADDRESS: STREET 1: 245 SUMMER STREET CITY: BOSTON STATE: MA ZIP: 02110 BUSINESS PHONE: 617-563-7000 MAIL ADDRESS: STREET 1: 245 SUMMER STREET CITY: BOSTON STATE: MA ZIP: 02110 FORMER COMPANY: FORMER CONFORMED NAME: FIDELITY FUND DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: FIDELITY FUND INC DATE OF NAME CHANGE: 19851205 0000035348 S000007019 Fidelity Growth Discovery Fund C000019191 Fidelity Growth Discovery Fund FDSVX C000064239 Class K FGDKX 0000035348 S000007020 Fidelity Fifty C000019192 Fidelity Fifty FFTYX 0000035348 S000007021 Fidelity Fund C000019193 Fidelity Fund FFIDX C000064240 Class K FFDKX 0000035348 S000007022 Fidelity Mega Cap Stock Fund C000019194 Fidelity Mega Cap Stock Fund FGRTX C000059099 Fidelity Advisor Mega Cap Stock Fund: Class A FGTAX C000059100 Fidelity Advisor Mega Cap Stock Fund: Class B FGRBX C000059101 Fidelity Advisor Mega Cap Stock Fund: Class C FGRCX C000059102 Fidelity Advisor Mega Cap Stock Fund: Class T FTGRX C000059103 Fidelity Advisor Mega Cap Stock Fund: Institutional Class FTRIX C000130146 Fidelity Advisor Mega Cap Stock Fund: Class Z FZALX 0000035348 S000039214 Fidelity Series Growth & Income Fund C000120647 Fidelity Series Growth & Income Fund FGLGX C000120648 Class F FTBTX 0000035348 S000039215 Fidelity Advisor Series Growth & Income Fund C000120649 Fidelity Advisor Series Growth & Income Fund FMALX N-CSR 1 main.htm

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 811-215

Fidelity Hastings Street Trust
(Exact name of registrant as specified in charter)

245 Summer St., Boston, Massachusetts 02210
(Address of principal executive offices)       (Zip code)

Scott C. Goebel, 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:

June 30

 

 

Date of reporting period:

June 30, 2014

Item 1. Reports to Stockholders

Fidelity®

Growth Discovery Fund

Annual Report

June 30, 2014

(Fidelity Cover Art)


Contents

Performance

(Click Here)

How the fund has done over time.

Management's Discussion of Fund Performance

(Click Here)

The Portfolio Manager's review of fund performance and strategy.

Shareholder Expense Example

(Click Here)

An example of shareholder expenses.

Investment Changes

(Click Here)

A summary of major shifts in the fund's investments over the past six months.

Investments

(Click Here)

A complete list of the fund's investments with their market values.

Financial Statements

(Click Here)

Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights.

Notes

(Click Here)

Notes to the financial statements.

Report of Independent Registered Public Accounting Firm

(Click Here)

 

Trustees and Officers

(Click Here)

 

Distributions

(Click Here)

 

To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 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. © 2014 FMR LLC. All rights reserved.

Annual Report

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.advisor.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.

Annual Report


Performance: The Bottom Line

Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' 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 $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.

Average Annual Total Returns

Periods ended June 30, 2014

Past 1
year

Past 5
years

Past 10
years

Fidelity® Growth Discovery FundA

32.40%

21.13%

9.05%

A Prior to February 1, 2007, Fidelity® Growth Discovery Fund operated under certain different investment policies and compared its performance to a different 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 Growth Discovery Fund, a class of the fund, on June 30, 2004. The chart shows how the value of your investment would have changed, and also shows how the Russell 3000® Growth Index performed over the same period.

hhh1706665

Annual Report


Management's Discussion of Fund Performance

Market Recap: Despite intermittent volatility driven by geopolitical concerns, stocks posted a series of new highs during the 12 months ending June 30, 2014, amid a decidedly favorable environment for riskier assets. The S&P 500® Index rose 24.61% for the year, helped by a rise in consumer spending and the lowest unemployment rate since 2008. The U.S. Federal Reserve balanced stimulus reductions with continued low interest rates, aiding a broad advance. All 10 S&P 500® market sectors gained, seven by more than 20%. Materials (+33%) was tops, as investors seemed to anticipate sustained economic improvement and renewed infrastructure build-outs. Information technology (+32%) benefited from large cash balances, rising dividends and stock buybacks, and a bevy of innovations. Health care (+30%) was aided by new drugs and predictable reimbursements. Conversely, the biggest laggard, telecommunication services (+5%), battled slow growth and stiff pricing competition. Across size and style segments: overall, investors showed some preference for large-cap stocks over small-caps and growth stocks over value, although market leadership rotated during the year. With the "risk-on" trade alive and well, the growth-oriented Nasdaq Composite Index® flourished, advancing 31.17%, while the blue-chip Dow Jones Industrial AverageSM delivered a more subdued 15.56% return.

Comments from Jason Weiner, Portfolio Manager of Fidelity® Growth Discovery Fund: For the year, the fund's Retail Class shares advanced 32.40%, outpacing the 26.75% gain of the Russell 3000® Growth Index. Versus the Russell index, the software & services segment was a plus. Here, Facebook was the fund's biggest relative contributor by far and easily its largest holding. The social network giant reached an all-time high after posting a 63% increase in revenue for the fourth quarter of 2013, fueled by strong mobile advertising. Investors flocked to the stock as the surge in mobile Internet ad revenue eased concerns about Facebook's ability to evolve into a "mobile first" company. By contrast, an overweighting in Broadcom, on average, was the biggest relative detractor. The firm produces baseband chips that provide Internet connectivity to Apple's iPhone® smartphones and iPad® tablets, as well as some of Samsung Electronics' GalaxyTM mobile devices. Earlier in the period, I was optimistic the business would ride the coattails of the popular products it supports, along with its innovations in Internet connectivity. But the stock lagged, as the firm faced intensifying competition and setbacks in releasing new chips. Shares plummeted last summer after the company issued a lower-than-expected revenue forecast amid slowing smartphone sales. I sold Broadcom prior to period end.

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.

Annual Report


Shareholder Expense Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management 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 (January 1, 2014 to June 30, 2014).

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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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.

Annual Report

 

Annualized
Expense Ratio
B

Beginning
Account Value
January 1, 2014

Ending
Account Value
June 30, 2014

Expenses Paid
During Period
*
January 1, 2014 to June 30, 2014

Growth Discovery

.80%

 

 

 

Actual

 

$ 1,000.00

$ 1,086.70

$ 4.14

HypotheticalA

 

$ 1,000.00

$ 1,020.83

$ 4.01

Class K

.66%

 

 

 

Actual

 

$ 1,000.00

$ 1,087.10

$ 3.42

HypotheticalA

 

$ 1,000.00

$ 1,021.52

$ 3.31

A 5% return per year before expenses

B Annualized expense ratio reflects expenses net of applicable fee waivers.

* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

Annual Report


Investment Changes (Unaudited)

Top Ten Stocks as of June 30, 2014

 

% of fund's
net assets

% of fund's net assets
6 months ago

Facebook, Inc. Class A

7.4

6.6

Gilead Sciences, Inc.

4.2

1.6

Keurig Green Mountain, Inc.

3.0

2.5

Harley-Davidson, Inc.

3.0

3.0

Google, Inc. Class A

2.4

4.3

Google, Inc. Class C

2.4

0.0

Apple, Inc.

2.3

2.5

Actavis PLC

1.9

1.1

The Blackstone Group LP

1.9

0.9

Danaher Corp.

1.9

1.5

 

30.4

Top Five Market Sectors as of June 30, 2014

 

% of fund's
net assets

% of fund's net assets
6 months ago

Information Technology

28.0

29.1

Consumer Discretionary

15.2

19.5

Health Care

14.5

16.9

Industrials

10.5

7.8

Consumer Staples

8.7

9.3

Asset Allocation (% of fund's net assets)

As of June 30, 2014 *

As of December 31, 2013 **

hhh1706667

Stocks and
Equity Futures 99.4%

 

hhh1706667

Stocks 98.9%

 

hhh1706670

Convertible
Securities 0.3%

 

hhh1706670

Convertible
Securities 0.1%

 

hhh1706673

Short-Term
Investments and
Net Other Assets (Liabilities) 0.3%

 

hhh1706673

Short-Term
Investments and
Net Other Assets (Liabilities) 1.0%

 

* Foreign investments

11.0%

 

** Foreign investments

12.6%

 

hhh1706676

Annual Report


Investments June 30, 2014

Showing Percentage of Net Assets

Common Stocks - 98.1%

Shares

Value (000s)

CONSUMER DISCRETIONARY - 15.1%

Automobiles - 4.0%

Harley-Davidson, Inc.

540,194

$ 37,733

Tesla Motors, Inc. (a)(d)

51,610

12,389

 

50,122

Distributors - 0.2%

LKQ Corp. (a)

109,400

2,920

Diversified Consumer Services - 0.5%

Bright Horizons Family Solutions, Inc. (a)

61,200

2,628

H&R Block, Inc.

94,188

3,157

 

5,785

Hotels, Restaurants & Leisure - 3.4%

Chipotle Mexican Grill, Inc. (a)

8,521

5,049

Domino's Pizza, Inc.

10,233

748

Dunkin' Brands Group, Inc.

133,069

6,096

Las Vegas Sands Corp.

31,700

2,416

Starbucks Corp.

213,226

16,499

Yum! Brands, Inc.

143,037

11,615

 

42,423

Household Durables - 0.3%

Mohawk Industries, Inc. (a)

26,929

3,725

Internet & Catalog Retail - 1.0%

Amazon.com, Inc. (a)

19,024

6,179

TripAdvisor, Inc. (a)

58,383

6,344

 

12,523

Leisure Products - 0.1%

NJOY, Inc. (f)

56,145

950

Media - 0.7%

Comcast Corp. Class A (special) (non-vtg.)

176,643

9,420

Specialty Retail - 3.3%

CarMax, Inc. (a)

37,952

1,974

Five Below, Inc. (a)

40,900

1,632

Home Depot, Inc.

281,724

22,808

Ulta Salon, Cosmetics & Fragrance, Inc. (a)

88,104

8,054

Urban Outfitters, Inc. (a)

233,757

7,915

 

42,383

Textiles, Apparel & Luxury Goods - 1.6%

ECLAT Textile Co. Ltd.

332,900

4,034

Common Stocks - continued

Shares

Value (000s)

CONSUMER DISCRETIONARY - continued

Textiles, Apparel & Luxury Goods - continued

Michael Kors Holdings Ltd. (a)

67,300

$ 5,966

NIKE, Inc. Class B

134,967

10,467

 

20,467

TOTAL CONSUMER DISCRETIONARY

190,718

CONSUMER STAPLES - 8.7%

Beverages - 1.2%

Monster Beverage Corp. (a)

34,353

2,440

SABMiller PLC

120,224

6,971

The Coca-Cola Co.

136,336

5,775

 

15,186

Food & Staples Retailing - 0.9%

Costco Wholesale Corp.

53,700

6,184

Sprouts Farmers Market LLC

15,090

494

Whole Foods Market, Inc.

105,351

4,070

 

10,748

Food Products - 4.2%

Keurig Green Mountain, Inc.

305,872

38,115

Mead Johnson Nutrition Co. Class A

84,329

7,857

The Hershey Co.

77,697

7,565

 

53,537

Household Products - 1.6%

Procter & Gamble Co.

256,686

20,173

Personal Products - 0.8%

Estee Lauder Companies, Inc. Class A

25,500

1,894

Herbalife Ltd.

135,333

8,734

 

10,628

TOTAL CONSUMER STAPLES

110,272

ENERGY - 8.7%

Energy Equipment & Services - 3.4%

Dril-Quip, Inc. (a)

42,458

4,638

Halliburton Co.

291,500

20,699

Oceaneering International, Inc.

104,756

8,185

Pason Systems, Inc.

134,806

3,790

RigNet, Inc. (a)

104,061

5,601

 

42,913

Common Stocks - continued

Shares

Value (000s)

ENERGY - continued

Oil, Gas & Consumable Fuels - 5.3%

Cheniere Energy, Inc. (a)

106,700

$ 7,650

Continental Resources, Inc. (a)(d)

68,126

10,767

EOG Resources, Inc.

73,500

8,589

EQT Midstream Partners LP

38,200

3,695

Golar LNG Ltd.

161,461

9,704

Markwest Energy Partners LP

46,800

3,350

Noble Energy, Inc.

50,600

3,919

Phillips 66 Partners LP

103,504

7,821

Pioneer Natural Resources Co.

26,700

6,136

Targa Resources Corp.

36,439

5,086

 

66,717

TOTAL ENERGY

109,630

FINANCIALS - 7.6%

Banks - 0.9%

HDFC Bank Ltd. sponsored ADR

259,155

12,134

Capital Markets - 5.0%

BlackRock, Inc. Class A

23,394

7,477

E*TRADE Financial Corp. (a)

395,759

8,414

Fortress Investment Group LLC

166,100

1,236

Harvest Capital Credit Corp. (d)

26,130

388

Invesco Ltd.

337,384

12,736

KKR & Co. LP

146,609

3,567

Legg Mason, Inc.

98,300

5,044

The Blackstone Group LP

718,619

24,031

 

62,893

Consumer Finance - 0.7%

American Express Co.

70,084

6,649

Shriram Transport Finance Co. Ltd.

118,502

1,786

 

8,435

Diversified Financial Services - 0.8%

Berkshire Hathaway, Inc. Class B (a)

23,600

2,987

McGraw Hill Financial, Inc.

87,612

7,274

 

10,261

Common Stocks - continued

Shares

Value (000s)

FINANCIALS - continued

Real Estate Management & Development - 0.2%

Leopalace21 Corp. (a)

73,800

$ 381

Realogy Holdings Corp. (a)

47,381

1,787

 

2,168

TOTAL FINANCIALS

95,891

HEALTH CARE - 14.5%

Biotechnology - 9.5%

Acceleron Pharma, Inc.

48,400

1,644

Actelion Ltd.

17,384

2,199

Alexion Pharmaceuticals, Inc. (a)

52,594

8,218

Biogen Idec, Inc. (a)

71,579

22,570

BioMarin Pharmaceutical, Inc. (a)

89,996

5,599

Cytokinetics, Inc. warrants 6/25/17 (a)

288,420

6

Enanta Pharmaceuticals, Inc. (a)(d)

105,984

4,565

Gilead Sciences, Inc. (a)

641,363

53,175

Insmed, Inc. (a)

295,678

5,908

Kamada (a)

45,784

326

Ophthotech Corp.

48,445

2,050

uniQure B.V.

33,635

457

Vanda Pharmaceuticals, Inc. (a)

209,048

3,382

Vertex Pharmaceuticals, Inc. (a)

101,400

9,601

 

119,700

Health Care Equipment & Supplies - 0.5%

AxoGen, Inc. (a)

27,515

76

GI Dynamics, Inc. CDI (a)

161,679

88

The Cooper Companies, Inc.

45,107

6,113

 

6,277

Health Care Providers & Services - 0.4%

Apollo Hospitals Enterprise Ltd.

119,708

1,983

Qualicorp SA (a)

246,000

2,906

 

4,889

Health Care Technology - 0.1%

Cerner Corp. (a)

35,913

1,852

Life Sciences Tools & Services - 0.8%

Illumina, Inc. (a)

57,526

10,271

Pharmaceuticals - 3.2%

AbbVie, Inc.

152,602

8,613

Actavis PLC (a)

108,377

24,173

Common Stocks - continued

Shares

Value (000s)

HEALTH CARE - continued

Pharmaceuticals - continued

AVANIR Pharmaceuticals Class A (a)

260,300

$ 1,468

Perrigo Co. PLC

40,432

5,893

 

40,147

TOTAL HEALTH CARE

183,136

INDUSTRIALS - 10.5%

Aerospace & Defense - 2.4%

TransDigm Group, Inc.

54,527

9,120

United Technologies Corp.

186,612

21,544

 

30,664

Airlines - 0.2%

Ryanair Holdings PLC sponsored ADR (a)

36,953

2,062

Building Products - 0.4%

A.O. Smith Corp.

102,544

5,084

Commercial Services & Supplies - 0.5%

KAR Auction Services, Inc.

219,398

6,992

Construction & Engineering - 0.5%

Jacobs Engineering Group, Inc. (a)

99,891

5,322

MasTec, Inc. (a)

18,300

564

 

5,886

Electrical Equipment - 0.6%

AMETEK, Inc.

88,945

4,650

Power Solutions International, Inc. (a)

34,221

2,463

 

7,113

Industrial Conglomerates - 2.4%

Danaher Corp.

300,255

23,639

Roper Industries, Inc.

43,614

6,368

 

30,007

Machinery - 2.4%

Allison Transmission Holdings, Inc.

161,000

5,007

Caterpillar, Inc.

89,034

9,675

Manitowoc Co., Inc.

365,847

12,022

Sarine Technologies Ltd.

564,000

1,162

Sun Hydraulics Corp.

14,500

589

Weg SA

115,960

1,485

 

29,940

Common Stocks - continued

Shares

Value (000s)

INDUSTRIALS - continued

Professional Services - 0.6%

Verisk Analytics, Inc. (a)

103,867

$ 6,234

WageWorks, Inc. (a)

28,855

1,391

 

7,625

Road & Rail - 0.5%

J.B. Hunt Transport Services, Inc.

92,600

6,832

TOTAL INDUSTRIALS

132,205

INFORMATION TECHNOLOGY - 27.8%

Communications Equipment - 0.5%

QUALCOMM, Inc.

74,600

5,908

Electronic Equipment & Components - 0.7%

TE Connectivity Ltd.

138,863

8,587

Internet Software & Services - 15.5%

Cornerstone OnDemand, Inc. (a)

63,903

2,941

CoStar Group, Inc. (a)

9,900

1,566

Cvent, Inc. (d)

151,731

4,414

Demandware, Inc. (a)

48,000

3,330

Facebook, Inc. Class A (a)

1,395,991

93,936

Google, Inc.:

Class A (a)

51,752

30,258

Class C (a)

51,752

29,772

Naver Corp.

11,346

9,362

SPS Commerce, Inc. (a)

62,372

3,941

Textura Corp. (d)

286,739

6,779

Xoom Corp. (a)

16,800

443

Yahoo!, Inc. (a)

246,759

8,669

 

195,411

IT Services - 2.1%

Gartner, Inc. Class A (a)

97,798

6,897

Visa, Inc. Class A

96,724

20,381

 

27,278

Semiconductors & Semiconductor Equipment - 0.3%

M/A-COM Technology Solutions, Inc. (a)

23,100

519

MediaTek, Inc.

175,000

2,958

 

3,477

Software - 6.2%

Activision Blizzard, Inc.

97,687

2,178

ANSYS, Inc. (a)

1,222

93

Common Stocks - continued

Shares

Value (000s)

INFORMATION TECHNOLOGY - continued

Software - continued

Computer Modelling Group Ltd.

138,200

$ 3,836

Electronic Arts, Inc. (a)

322,634

11,573

Fleetmatics Group PLC (a)

40,850

1,321

Microsoft Corp.

535,100

22,314

salesforce.com, Inc. (a)

363,864

21,133

ServiceNow, Inc. (a)

27,200

1,685

SolarWinds, Inc. (a)

75,481

2,918

Solera Holdings, Inc.

20,000

1,343

SS&C Technologies Holdings, Inc. (a)

192,320

8,504

The Rubicon Project, Inc.

70,546

906

 

77,804

Technology Hardware, Storage & Peripherals - 2.5%

Apple, Inc.

307,146

28,543

Nimble Storage, Inc. (d)

104,300

3,204

 

31,747

TOTAL INFORMATION TECHNOLOGY

350,212

MATERIALS - 4.8%

Chemicals - 2.3%

FMC Corp.

94,042

6,695

Monsanto Co.

69,788

8,705

Sherwin-Williams Co.

47,095

9,744

Westlake Chemical Corp.

46,050

3,857

 

29,001

Construction Materials - 2.5%

CaesarStone Sdot-Yam Ltd.

13,200

648

Eagle Materials, Inc.

194,598

18,347

James Hardie Industries PLC sponsored ADR

52,527

3,434

Vulcan Materials Co.

151,624

9,666

 

32,095

TOTAL MATERIALS

61,096

TELECOMMUNICATION SERVICES - 0.1%

Diversified Telecommunication Services - 0.1%

8x8, Inc. (a)

178,860

1,445

Common Stocks - continued

Shares

Value (000s)

UTILITIES - 0.3%

Electric Utilities - 0.3%

ITC Holdings Corp.

102,774

$ 3,749

TOTAL COMMON STOCKS

(Cost $942,590)


1,238,354

Convertible Preferred Stocks - 0.3%

 

 

 

 

CONSUMER DISCRETIONARY - 0.1%

Household Durables - 0.1%

Blu Homes, Inc. Series A, 5.00% (f)

239,736

1,108

INFORMATION TECHNOLOGY - 0.2%

Internet Software & Services - 0.2%

Uber Technologies, Inc. 8.00% (f)

40,643

2,522

TOTAL CONVERTIBLE PREFERRED STOCKS

(Cost $3,630)


3,630

U.S. Treasury Obligations - 0.1%

 

Principal Amount (000s)

 

U.S. Treasury Bills, yield at date of purchase 0.02% 7/31/14 (e)
(Cost $990)

$ 990


990

Money Market Funds - 4.0%

Shares

 

Fidelity Cash Central Fund, 0.11% (b)

21,110,428

21,110

Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c)

29,500,646

29,501

TOTAL MONEY MARKET FUNDS

(Cost $50,611)


50,611

TOTAL INVESTMENT PORTFOLIO - 102.5%

(Cost $997,821)

1,293,585

NET OTHER ASSETS (LIABILITIES) - (2.5)%

(31,147)

NET ASSETS - 100%

$ 1,262,438

Futures Contracts

Expiration Date

Underlying Face Amount at Value (000s)

Unrealized Appreciation/
(Depreciation) (000s)

Purchased

Equity Index Contracts

168 ICE Russell 1000 Growth Index Contracts

Sept. 2014

$ 15,253

$ 249

12 ICE Russell 2000 Index Contracts

Sept. 2014

1,428

42

TOTAL EQUITY INDEX CONTRACTS

$ 16,681

$ 291

 

The face value of futures purchased as a percentage of net assets is 1.3%

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.

(c) Investment made with cash collateral received from securities on loan.

(d) Security or a portion of the security is on loan at period end.

(e) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At period end, the value of securities pledged amounted to $450,000.

(f) 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 $4,580,000 or 0.4% of net assets.

Additional information on each restricted holding is as follows:

Security

Acquisition Date

Acquisition Cost (000s)

Blu Homes, Inc. Series A, 5.00%

6/21/13

$ 1,108

NJOY, Inc.

9/11/13

$ 454

Uber Technologies, Inc. 8.00%

6/6/14

$ 2,522

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
(Amounts in thousands)

Fidelity Cash Central Fund

$ 38

Fidelity Securities Lending Cash Central Fund

257

Total

$ 295

Other Information

The following is a summary of the inputs used, as of June 30, 2014, 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 in the table below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.

Valuation Inputs at Reporting Date:

Description
(Amounts in thousands)

Total

Level 1

Level 2

Level 3

Investments in Securities:

Equities:

Consumer Discretionary

$ 191,826

$ 189,768

$ -

$ 2,058

Consumer Staples

110,272

110,272

-

-

Energy

109,630

109,630

-

-

Financials

95,891

95,510

381

-

Health Care

183,136

183,130

6

-

Industrials

132,205

132,205

-

-

Information Technology

352,734

350,212

-

2,522

Materials

61,096

61,096

-

-

Telecommunication Services

1,445

1,445

-

-

Utilities

3,749

3,749

-

-

U.S. Government and Government Agency Obligations

990

-

990

-

Money Market Funds

50,611

50,611

-

-

Total Investments in Securities:

$ 1,293,585

$ 1,287,628

$ 1,377

$ 4,580

Derivative Instruments:

Assets

Futures Contracts

$ 291

$ 291

$ -

$ -

Value of Derivative Instruments

The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of June 30, 2014. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.

Primary Risk Exposure /
Derivative Type

Value
(Amount in thousands)

 

Asset

Liability

Equity Risk

Futures Contracts (a)

$ 291

$ -

Total Value of Derivatives

$ 291

$ -

(a) Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. Only the period end receivable or payable for daily variation margin and net unrealized appreciation (depreciation) are presented in the Statement of Assets and Liabilities.

Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited):

United States of America

89.0%

Ireland

3.0%

Bermuda

1.8%

India

1.3%

Others (Individually Less Than 1%)

4.9%

 

100.0%

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

Annual Report


Financial Statements

Statement of Assets and Liabilities

 Amounts in thousands (except per-share amounts)

June 30, 2014

 

 

 

Assets

Investment in securities, at value (including securities loaned of $28,932) - See accompanying schedule:

Unaffiliated issuers (cost $947,210)

$ 1,242,974

 

Fidelity Central Funds (cost $50,611)

50,611

 

Total Investments (cost $997,821)

 

$ 1,293,585

Receivable for investments sold

5,110

Receivable for fund shares sold

2,712

Dividends receivable

559

Distributions receivable from Fidelity Central Funds

22

Receivable for daily variation margin for derivative instruments

27

Other receivables

28

Total assets

1,302,043

 

 

 

Liabilities

Payable for investments purchased

$ 8,331

Payable for fund shares redeemed

945

Accrued management fee

573

Other affiliated payables

194

Other payables and accrued expenses

61

Collateral on securities loaned, at value

29,501

Total liabilities

39,605

 

 

 

Net Assets

$ 1,262,438

Net Assets consist of:

 

Paid in capital

$ 1,253,738

Undistributed net investment income

717

Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions

(288,062)

Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies

296,045

Net Assets

$ 1,262,438

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

Annual Report

Financial Statements - continued

Statement of Assets and Liabilities - continued

 Amounts in thousands (except per-share amounts)

June 30, 2014

 

 

 

Growth Discovery:
Net Asset Value
, offering price and redemption price per share ($1,072,065 ÷ 46,465 shares)

$ 23.07

 

 

 

Class K:
Net Asset Value
, offering price and redemption price per share ($190,373 ÷ 8,244 shares)

$ 23.09

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

Annual Report

Statement of Operations

 Amounts in thousands

Year ended June 30, 2014

 

 

 

Investment Income

 

 

Dividends

 

$ 9,764

Income from Fidelity Central Funds

 

295

Total income

 

10,059

 

 

 

Expenses

Management fee
Basic fee

$ 6,098

Performance adjustment

289

Transfer agent fees

1,805

Accounting and security lending fees

370

Custodian fees and expenses

68

Independent trustees' compensation

5

Registration fees

58

Audit

57

Legal

6

Miscellaneous

9

Total expenses before reductions

8,765

Expense reductions

(39)

8,726

Net investment income (loss)

1,333

Realized and Unrealized Gain (Loss)

Net realized gain (loss) on:

Investment securities:

 

 

Unaffiliated issuers

168,737

Foreign currency transactions

(31)

Futures contracts

1,344

Total net realized gain (loss)

 

170,050

Change in net unrealized appreciation (depreciation) on:

Investment securities

124,386

Futures contracts

291

Total change in net unrealized appreciation (depreciation)

 

124,677

Net gain (loss)

294,727

Net increase (decrease) in net assets resulting from operations

$ 296,060

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

Annual Report

Financial Statements - continued

Statement of Changes in Net Assets

 Amounts in thousands

Year ended
June 30,
2014

Year ended
June 30,
2013

Increase (Decrease) in Net Assets

 

 

Operations

 

 

Net investment income (loss)

$ 1,333

$ 4,187

Net realized gain (loss)

170,050

115,817

Change in net unrealized appreciation (depreciation)

124,677

20,585

Net increase (decrease) in net assets resulting
from operations

296,060

140,589

Distributions to shareholders from net investment income

(1,240)

(3,920)

Distributions to shareholders from net realized gain

(308)

-

Total distributions

(1,548)

(3,920)

Share transactions - net increase (decrease)

64,284

(251,662)

Total increase (decrease) in net assets

358,796

(114,993)

 

 

 

Net Assets

Beginning of period

903,642

1,018,635

End of period (including undistributed net investment income of $717 and undistributed net investment income of $1,230, respectively)

$ 1,262,438

$ 903,642

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

Annual Report

Financial Highlights - Growth Discovery

Years ended June 30,

2014

2013

2012

2011

2010

Selected Per-Share Data

 

 

 

 

 

Net asset value, beginning of period

$ 17.45

$ 15.09

$ 14.88

$ 10.54

$ 9.04

Income from Investment Operations

 

 

 

 

 

Net investment income (loss) B

  .02

  .07

  .04

  .05

  .01

Net realized and unrealized gain (loss)

  5.63

  2.35

  .26

  4.37

  1.52

Total from investment operations

  5.65

  2.42

  .30

  4.42

  1.53

Distributions from net investment income

  (.02)

  (.06)

  (.03)

  (.03)

  (.03)

Distributions from net realized gain

  (.01)

  -

  (.06)

  (.05)

  (.01)

Total distributions

  (.03)

  (.06)

  (.09)

  (.08)

  (.03)F

Net asset value, end of period

$ 23.07

$ 17.45

$ 15.09

$ 14.88

$ 10.54

Total ReturnA

  32.40%

  16.09%

  2.07%

  42.09%

  16.96%

Ratios to Average Net Assets C, E

 

 

 

 

 

Expenses before reductions

  .81%

  .88%

  .81%

  .63%

  .76%

Expenses net of fee waivers, if any

  .81%

  .88%

  .81%

  .63%

  .76%

Expenses net of all reductions

  .81%

  .87%

  .80%

  .62%

  .75%

Net investment income (loss)

  .10%

  .42%

  .27%

  .39%

  .08%

Supplemental Data

 

 

 

 

 

Net assets, end of period (in millions)

$ 1,072

$ 767

$ 875

$ 932

$ 604

Portfolio turnover rateD

  70%

  62%

  74%

  72%

  87%

A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.

B Calculated based on average shares outstanding during the period.

C 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.

D Amount does not include the portfolio activity 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 Total distributions of $.03 per share is comprised of distributions from net investment income of $.027 and distributions from net realized gain of $.005 per share.

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

Annual Report

Financial Highlights - Class K

Years ended June 30,

2014

2013

2012

2011

2010

Selected Per-Share Data

 

 

 

 

 

Net asset value, beginning of period

$ 17.45

$ 15.09

$ 14.88

$ 10.55

$ 9.05

Income from Investment Operations

 

 

 

 

 

Net investment income (loss) B

  .05

  .09

  .06

  .08

  .03

Net realized and unrealized gain (loss)

  5.63

  2.36

  .26

  4.36

  1.53

Total from investment operations

  5.68

  2.45

  .32

  4.44

  1.56

Distributions from net investment income

  (.04)

  (.09)

  (.06)

  (.06)

  (.05)

Distributions from net realized gain

  (.01)

  -

  (.06)

  (.05)

  (.01)

Total distributions

  (.04)H

  (.09)

  (.11)G

  (.11)

  (.06)F

Net asset value, end of period

$ 23.09

$ 17.45

$ 15.09

$ 14.88

$ 10.55

Total ReturnA

  32.62%

  16.28%

  2.27%

  42.26%

  17.25%

Ratios to Average Net Assets C, E

 

 

 

 

 

Expenses before reductions

  .68%

  .72%

  .64%

  .44%

  .53%

Expenses net of fee waivers, if any

  .68%

  .72%

  .64%

  .44%

  .53%

Expenses net of all reductions

  .67%

  .71%

  .63%

  .43%

  .52%

Net investment income (loss)

  .24%

  .58%

  .44%

  .58%

  .31%

Supplemental Data

 

 

 

 

 

Net assets, end of period (in millions)

$ 190

$ 137

$ 144

$ 147

$ 43

Portfolio turnover rateD

  70%

  62%

  74%

  72%

  87%

A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.

B Calculated based on average shares outstanding during the period.

C 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.

D Amount does not include the portfolio activity 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 Total distributions of $.06 per share is comprised of distributions from net investment income of $.054 and distributions from net realized gain of $.005 per share.

G Total distributions of $.11 per share is comprised of distributions from net investment income of $.058 and distributions from net realized gain of $.055 per share.

H Total distributions of $.04 per share is comprised of distributions from net investment income of $.036 and distributions from net realized gain of $.006 per share.

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

Annual Report


Notes to Financial Statements

For the period ended June 30, 2014

(Amounts in thousands except percentages)

1. Organization.

Fidelity Growth Discovery Fund (the Fund) is a fund of Fidelity Hastings Street Trust (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Growth Discovery and Class K shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.

2. Investments in Fidelity Central Funds.

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 .01%.

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 contain the significant accounting policies (including investment valuation policies) of those 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

Annual Report

3. Significant Accounting Policies - continued

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. In accordance with valuation policies and procedures approved by the Board of Trustees (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 Fidelity Management & Research Company (FMR) Fair Value Committee (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, changes in interest rates and credit quality. 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 is responsible for approving and reporting to the Board all fair value determinations.

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.

Annual Report

Notes to Financial Statements - continued

(Amounts in thousands except percentages)

3. Significant Accounting Policies - continued

Investment Valuation - continued

Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. U.S. government and government agency obligations are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.

Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded and are categorized as Level 1 in the hierarchy. Investments in open-end mutual funds, including Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of June 30, 2014, is included at the end of the Fund's Schedule of Investments.

Foreign Currency. The Fund 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 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

Annual Report

3. Significant Accounting Policies - continued

Investment Transactions and Income - continued

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. 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 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 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.

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 June 30, 2014, 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. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.

Annual Report

Notes to Financial Statements - continued

(Amounts in thousands except percentages)

3. Significant Accounting Policies - continued

Income Tax Information and Distributions to Shareholders - continued

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.

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 futures contracts, foreign currency transactions, partnerships, capital loss carryforwards 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

$ 305,020

Gross unrealized depreciation

(11,882)

Net unrealized appreciation (depreciation) on securities and other investments

$ 293,138

 

 

Tax Cost

$ 1,000,447

The tax-based components of distributable earnings as of period end were as follows:

Undistributed ordinary income

$ 717

Capital loss carryforward

$ (285,145)

Net unrealized appreciation (depreciation)

$ 293,128

Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is 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.

Annual Report

3. Significant Accounting Policies - continued

Income Tax Information and Distributions to Shareholders - continued

Fiscal year of expiration

 

2017

$ (24,714)

2018

(260,431)

Total capital loss carryforward

$ (285,145)

The tax character of distributions paid was as follows:

 

June 30, 2014

June 30, 2013

Ordinary Income

$ 1,548

$ 3,920

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

4. Derivative Instruments.

Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.

The Fund used derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.

The Fund's use of derivatives increased or decreased its exposure to the following risk:

Equity Risk

Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment.

Annual Report

Notes to Financial Statements - continued

(Amounts in thousands except percentages)

4. Derivative Instruments - continued

Risk Exposures and the Use of Derivative Instruments - continued

The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Counterparty credit risk related to exchange-traded futures contracts may be mitigated by the protection provided by the exchange on which they trade.

Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.

Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.

Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent daily payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable, if any, is included in daily variation margin for derivative instruments in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.

Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts." The underlying face amount at value reflects each contract's exposure to the underlying instrument or index at period end and is representative of volume of activity during the period. Securities deposited to meet initial margin requirements are identified in the Schedule of Investments.

During the period the Fund recognized net realized gain (loss) of $1,344 and a change in net unrealized appreciation (depreciation) of $291 related to its investment in futures contracts. These amounts are included in the Statement of Operations.

5. Purchases and Sales of Investments.

Purchases and sales of securities, other than short-term securities, aggregated $805,090 and $750,433, respectively.

Annual Report

6. Fees and Other Transactions with Affiliates.

Management Fee. Fidelity Management & Research Company (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 the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Growth Discovery as compared to its benchmark index, the Russell 3000 Growth Index, over the same 36 month performance period. For the reporting period, the total annual management fee rate, including the performance adjustment, was .58% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.

Transfer Agent Fees. Fidelity Investments Institutional Operations Company, 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 Growth Discovery. FIIOC receives an asset-based fee of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.

For the period, transfer agent fees for each class were as follows:

 

Amount

% of
Average
Net Assets

Growth Discovery

$ 1,728

.18

Class K

77

.05

 

$ 1,805

 

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.

Annual Report

Notes to Financial Statements - continued

(Amounts in thousands except percentages)

6. Fees and Other Transactions with Affiliates - continued

Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser or Sub-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 $11 for the period.

7. 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 $2 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.

8. Security Lending.

The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. 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. 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. At period end, there were no security loans outstanding with FCM. 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 $257, including $2 from securities loaned to FCM.

Annual Report

9. 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 $28 for the period.

In addition, the investment adviser reimbursed a portion of the Fund's operating expenses during the period in the amount of $11.

10. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

Years ended June 30,

2014

2013

From net investment income

 

 

Growth Discovery

$ 959

$ 3,196

Class K

281

724

Total

$ 1,240

$ 3,920

From net realized gain

 

 

Growth Discovery

$ 261

$ -

Class K

47

-

Total

$ 308

$ -

11. Share Transactions.

Transactions for each class of shares were as follows:

 

Shares

Dollars

Years ended June 30,

2014

2013

2014

2013

Growth Discovery

 

 

 

 

Shares sold

11,432

5,161

$ 240,406

$ 82,537

Reinvestment of distributions

61

198

1,152

3,039

Shares redeemed

(8,980)

(19,383)

(186,625)

(309,727)

Net increase (decrease)

2,513

(14,024)

$ 54,933

$ (224,151)

Class K

 

 

 

 

Shares sold

2,259

3,128

$ 47,861

$ 49,663

Reinvestment of distributions

17

47

328

724

Shares redeemed

(1,868)

(4,878)

(38,838)

(77,898)

Net increase (decrease)

408

(1,703)

$ 9,351

$ (27,511)

Annual Report

Notes to Financial Statements - continued

(Amounts in thousands except percentages)

12. 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.

Annual Report


Report of Independent Registered Public Accounting Firm

To the Trustees of Fidelity Hastings Street Trust and the Shareholders of Fidelity Growth Discovery Fund:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Growth Discovery Fund (a fund of Fidelity Hastings Street Trust) at June 30, 2014, 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. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity Growth Discovery Fund's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements 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 are free of material misstatement. An audit 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, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at June 30, 2014 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

Boston, Massachusetts

August 11, 2014

Annual Report


Trustees and Officers

The Trustees, Member of the Advisory Board, 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. Except for James C. Curvey, each of the Trustees oversees 173 funds. Mr. Curvey oversees 397 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 (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. The officers and Advisory Board Member hold office without limit in time, except that any officer and 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.

Experience, Skills, Attributes, and Qualifications of the Fund's 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.

Annual Report

Board Structure and Oversight Function. James C. Curvey is an interested person (as defined in the 1940 Act) 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. Ned C. Lautenbach 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 equity and high income funds and another Board oversees Fidelity's investment-grade bond, money market, and asset allocation funds. The asset allocation funds may invest in Fidelity funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity funds overseen by each Board.

The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. For example, a working group comprised of Independent Trustees and FMR has worked and continues to work to review the Fidelity funds' valuation-related activities, reporting and risk management. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of FMR's risk management program for the Fidelity funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Fund's Trustees."

Annual Report

Trustees and Officers - continued

The fund's Statements of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.

Interested Trustees*:

Correspondence intended for each 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+

James C. Curvey (1935)

Year of Election or Appointment: 2007

Trustee

Chairman of the Board of Trustees

 

Mr. Curvey also serves as Trustee of other Fidelity funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (2009-present), and Vice Chairman (2007-present) and Director of FMR LLC. In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the Trustees of Villanova University. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (2009-2014), a Director of FMR (2007-2014), a Director of FMR Co., Inc. (2007-2014) and was the Vice Chairman (2006-2007) and Director (2000-2007) of FMR Corp.

Charles S. Morrison (1960)

Year of Election or Appointment: 2014

Trustee

 

Mr. Morrison also serves as Trustee of other funds. He serves as President, Asset Management (2014-present) and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.

* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR.

+ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for the fund.

Annual Report

Trustees and Officers - continued

Independent Trustees:

Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.

Name, Year of Birth; Principal Occupations and Other Relevant Experience+

Dennis J. Dirks (1948)

Year of Election or Appointment: 2005

Trustee

 

Mr. Dirks also serves as Trustee of other Fidelity funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), and as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008). Mr. Dirks is a member of the Independent Directors Council (IDC) Governing Council (2010-present) and Board of Directors for The Brookville Center for Children's Services, Inc. (2009-present).

Alan J. Lacy (1953)

Year of Election or Appointment: 2008

Trustee

 

Mr. Lacy also serves as Trustee of other Fidelity funds. Mr. Lacy serves as Senior Adviser (2007-present) of Oak Hill Capital Partners, L.P. (private equity). Mr. Lacy also served as Chief Executive Officer (2000-2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation and Sears, Roebuck and Co. (retail). In addition, Mr. Lacy serves as a member of the Board of Directors of Dave & Buster's Entertainment, Inc. (restaurant and entertainment complexes, 2010-present), Earth Fare, Inc. (retail grocery, 2012-present), The Hillman Companies, Inc. (hardware wholesalers, 2010-present), and Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). Mr. Lacy is a member of the Board of Trustees of The National Parks Conservation Association (2006-present). Previously, Mr. Lacy served as Chairman of the Board of Trustees of the National Parks Conservation Association (2008-2011) and as a member of the Board of Directors for the Western Union Company (global money transfer, 2006-2011).

Ned C. Lautenbach (1944)

Year of Election or Appointment: 2000

Trustee

Chairman of the Independent Trustees

 

Mr. Lautenbach also serves as Trustee of other Fidelity funds. Mr. Lautenbach currently serves as the Lead Director of the Eaton Corporation Board of Directors (diversified industrial, 1997-present). Mr. Lautenbach is Chairman of the Board of Directors of the Philharmonic Center for the Arts in Naples, Florida (2012-present) and a member of the Council on Foreign Relations (1994-present). Previously, Mr. Lautenbach was a Partner/Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007).

Joseph Mauriello (1944)

Year of Election or Appointment: 2008

Trustee

 

Mr. Mauriello also serves as Trustee of other Fidelity funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).

Robert W. Selander (1950)

Year of Election or Appointment: 2011

Trustee

 

Mr. Selander also serves as Trustee of other Fidelity funds. Previously, Mr. Selander served as a Member of the Advisory Board of other Fidelity funds (2011), and Executive Vice Chairman (2010), Chief Executive Officer (2009-2010), and President and Chief Executive Officer (1997-2009) of Mastercard, Inc.

Cornelia M. Small (1944)

Year of Election or Appointment: 2005

Trustee

 

Ms. Small also serves as Trustee of other Fidelity funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.

William S. Stavropoulos (1939)

Year of Election or Appointment: 2001

Trustee

Vice Chairman of the Independent Trustees

 

Mr. Stavropoulos also serves as Trustee of other Fidelity funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and Maersk Inc. (industrial conglomerate), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of the Naples Philharmonic Center for the Arts. Previously, Mr. Stavropoulos served as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).

David M. Thomas (1949)

Year of Election or Appointment: 2008

Trustee

 

Mr. Thomas also serves as Trustee of other Fidelity funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), and as a member of the Board of Directors of Interpublic Group of Companies, Inc. (marketing communication, 2004-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).

+ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for the fund.

Advisory Board Member and Officers:

Correspondence intended for each officer and Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.

Name, Year of Birth; Principal Occupation

Peter S. Lynch (1944)

Year of Election or Appointment: 2003

Member of the Advisory Board

 

Mr. Lynch also serves as Member of the Advisory Board of other Fidelity funds. Mr. Lynch is Vice Chairman and a Director of FMR and FMR Co., Inc. In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).

Elizabeth Paige Baumann (1968)

Year of Election or Appointment: 2012

Anti-Money Laundering (AML) Officer

 

Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer of FMR LLC (2012-present) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as Vice President and Deputy Anti-Money Laundering Officer (2007-2012).

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 (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. Mr. Davis is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (2003-2010).

Adrien E. Deberghes (1967)

Year of Election or Appointment: 2008

Deputy Treasurer

 

Mr. Deberghes also serves as an officer of other funds. He 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).

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. (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: 2008

Secretary and Chief Legal Officer (CLO)

 

Mr. Goebel serves as Secretary and CLO of other funds. Mr. Goebel also serves as Secretary of Fidelity SelectCo, LLC (2013-present), Fidelity Investments Money Management, Inc. (FIMM) (2010-present) and Fidelity Research and Analysis Company (FRAC) (2010-present); General Counsel, Secretary, and Senior Vice President of FMR (2008-present) and FMR Co., Inc. (2008-present); Chief Legal Officer of Fidelity Management & Research (Hong Kong) Limited (2008-present); and Assistant Secretary of Fidelity Management & Research (Japan) Inc. (2008-present) and Fidelity Management & Research (U.K.) Inc. (2008-present). Previously, Mr. Goebel served as Secretary and CLO of other Fidelity funds (2008-2013), 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). Mr. Goebel has been employed by FMR LLC or an affiliate since 2001.

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 President of FMR's Equity Division (2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager.

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 FMR's Program Management Group (2010-2013), and Vice President of Valuation Oversight (2008-2010).

Melissa M. Reilly (1971)

Year of Election or Appointment: 2014

Vice President of certain Equity Funds

 

Ms. Reilly also serves as Vice President of other funds. Ms. Reilly is an employee of Fidelity Investments (2004-present).

Kenneth B. Robins (1969)

Year of Election or Appointment: 2008

President and Treasurer

 

Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (2013-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served in other fund officer roles.

Stephen Sadoski (1971)

Year of Election or Appointment: 2012

Deputy Treasurer

 

Mr. Sadoski also serves as Deputy Treasurer of other funds. He is an employee of Fidelity Investments (2012-present) and has served in another fund officer role. Prior to joining Fidelity Investments, Mr. Sadoski served as an assistant chief accountant in the Division of Investment Management of the Securities and Exchange Commission (SEC) (2009-2012) and as a senior manager at Deloitte & Touche LLP (1997-2009).

Stacie M. Smith (1974)

Year of Election or Appointment: 2013

Deputy 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).

Renee Stagnone (1975)

Year of Election or Appointment: 2013

Deputy Treasurer

 

Ms. Stagnone also serves as Deputy Treasurer of other funds. Ms. Stagnone is an employee of Fidelity Investments.

Linda J. Wondrack (1964)

Year of Election or Appointment: 2014

Chief Compliance Officer

 

Ms. Wondrack also serves as Chief Compliance Officer of other funds. Ms. Wondrack is Executive Vice President and head of the Ethics Office and Asset Management Compliance for Fidelity Investments (2012-present). Ms. Wondrack also serves as Chief Compliance Officer of Fidelity SelectCo, LLC (2014-present); Chief Compliance Officer of Impresa Management LLC (2013-present); and Chief Compliance Officer of FMR Co., Inc., Fidelity Investments Money Management, Inc., Fidelity Management & Research (Japan) Inc., Fidelity Management & Research (U.K.) Inc., Fidelity Management & Research (Hong Kong), Fidelity Management & Research Company, Pyramis Global Advisors, LLC, and Strategic Advisers, Inc., Ballyrock Investment Advisors LLC, and Northern Neck Investors LLC (2012-present). Previously, Ms. Wondrack served as Senior Vice President and Chief Compliance Officer for Columbia Management Investment Advisers, LLC (2005-2012); Chief Compliance Officer for certain funds within the Columbia Family of Funds (2007-2012); and Senior Vice President of Compliance Risk Management at Bank of America (2005-2010).

Joseph F. Zambello (1957)

Year of Election or Appointment: 2011

Deputy Treasurer

 

Mr. Zambello also serves as Deputy Treasurer of other funds. Mr. Zambello is an employee of Fidelity Investments. Previously, Mr. Zambello served as Vice President of FMR's Program Management Group (2009-2011) and Vice President of the Transfer Agent Oversight Group (2005-2009).

Annual Report


Distributions (Unaudited)

Growth Discovery designates 100% of the dividend distributed during the fiscal year as qualifying for the dividends-received deduction for corporate shareholders.

Growth Discovery designates 100% of the dividend distributed during the fiscal year as amounts which may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.

The fund will notify shareholders in January 2015 of amounts for use in preparing 2014 income tax returns.

Annual Report

Investment Adviser

Fidelity Management &
Research Company

Boston, MA

Investment Sub-Advisers

FMR Co., Inc.

Fidelity Management & Research
(U.K.) Inc.

Fidelity Management & Research
(Japan) Inc.

Fidelity Management & Research
(Hong Kong) Limited

General Distributor

Fidelity Distributors Corporation

Smithfield, RI

Transfer and Service Agents

Fidelity Investments Institutional
Operations Company, Inc.

Boston, MA

Fidelity Service Company, Inc.
Boston, MA

Custodian

Brown Brothers Harriman & Co.

Boston, MA

The Fidelity Telephone Connection

Mutual Fund 24-Hour Service

Exchanges/Redemptions
and Account Assistance 1-800-544-6666

Product Information 1-800-544-6666

Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)

TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)

Fidelity Automated Service
Telephone (FAST ®) hhh1706678
1-800-544-5555

hhh1706678
Automated line for quickest service

(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St., Boston, MA 02210
www.fidelity.com

CII-UANN-0814
1.787730.111

Fidelity®

Growth Discovery
Fund -

Class K

Annual Report

June 30, 2014

(Fidelity Cover Art)


Contents

Performance

(Click Here)

How the fund has done over time.

Management's Discussion of Fund Performance

(Click Here)

The Portfolio Manager's review of fund performance and strategy.

Shareholder Expense Example

(Click Here)

An example of shareholder expenses.

Investment Changes

(Click Here)

A summary of major shifts in the fund's investments over the past six months.

Investments

(Click Here)

A complete list of the fund's investments with their market values.

Financial Statements

(Click Here)

Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights.

Notes

(Click Here)

Notes to the financial statements.

Report of Independent Registered Public Accounting Firm

(Click Here)

 

Trustees and Officers

(Click Here)

 

Distributions

(Click Here)

 

To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-835-5092 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. © 2014 FMR LLC. All rights reserved.

Annual Report

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.advisor.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.

Annual Report


Performance: The Bottom Line

Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' 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 $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.

Average Annual Total Returns

Periods ended June 30, 2014

Past 1
year

Past 5
years

Past 10
years

  Class K A, B

32.62%

21.34%

9.18%

A The initial offering of Class K shares took place on May 9, 2008. Returns prior to May 9, 2008, are those of Fidelity® Growth Discovery Fund, the original class of the fund.

B Prior to February 1, 2007, the fund operated under certain different investment policies and compared its performance to a different 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® Growth Discovery Fund - Class K on June 30, 2004. The chart shows how the value of your investment would have changed, and also shows how the Russell 3000® Growth Index performed over the same period. See footnote A above for additional information regarding the performance of Class K.

hhh1706691

Annual Report


Management's Discussion of Fund Performance

Market Recap: Despite intermittent volatility driven by geopolitical concerns, stocks posted a series of new highs during the 12 months ending June 30, 2014, amid a decidedly favorable environment for riskier assets. The S&P 500® Index rose 24.61% for the year, helped by a rise in consumer spending and the lowest unemployment rate since 2008. The U.S. Federal Reserve balanced stimulus reductions with continued low interest rates, aiding a broad advance. All 10 S&P 500® market sectors gained, seven by more than 20%. Materials (+33%) was tops, as investors seemed to anticipate sustained economic improvement and renewed infrastructure build-outs. Information technology (+32%) benefited from large cash balances, rising dividends and stock buybacks, and a bevy of innovations. Health care (+30%) was aided by new drugs and predictable reimbursements. Conversely, the biggest laggard, telecommunication services (+5%), battled slow growth and stiff pricing competition. Across size and style segments: overall, investors showed some preference for large-cap stocks over small-caps and growth stocks over value, although market leadership rotated during the year. With the "risk-on" trade alive and well, the growth-oriented Nasdaq Composite Index® flourished, advancing 31.17%, while the blue-chip Dow Jones Industrial AverageSM delivered a more subdued 15.56% return.

Comments from Jason Weiner, Portfolio Manager of Fidelity® Growth Discovery Fund: For the year, the fund's Class K shares advanced 32.62%, outpacing the 26.75% gain of the Russell 3000® Growth Index. Versus the Russell index, the software & services segment was a plus. Here, Facebook was the fund's biggest relative contributor by far and easily its largest holding. The social network giant reached an all-time high after posting a 63% increase in revenue for the fourth quarter of 2013, fueled by strong mobile advertising. Investors flocked to the stock as the surge in mobile Internet ad revenue eased concerns about Facebook's ability to evolve into a "mobile first" company. By contrast, an overweighting in Broadcom, on average, was the biggest relative detractor. The firm produces baseband chips that provide Internet connectivity to Apple's iPhone® smartphones and iPad® tablets, as well as some of Samsung Electronics' GalaxyTM mobile devices. Earlier in the period, I was optimistic the business would ride the coattails of the popular products it supports, along with its innovations in Internet connectivity. But the stock lagged, as the firm faced intensifying competition and setbacks in releasing new chips. Shares plummeted last summer after the company issued a lower-than-expected revenue forecast amid slowing smartphone sales. I sold Broadcom prior to period end.

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.

Annual Report


Shareholder Expense Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management 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 (January 1, 2014 to June 30, 2014).

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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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.

Annual Report

 

Annualized
Expense Ratio
B

Beginning
Account Value
January 1, 2014

Ending
Account Value
June 30, 2014

Expenses Paid
During Period
*
January 1, 2014 to June 30, 2014

Growth Discovery

.80%

 

 

 

Actual

 

$ 1,000.00

$ 1,086.70

$ 4.14

HypotheticalA

 

$ 1,000.00

$ 1,020.83

$ 4.01

Class K

.66%

 

 

 

Actual

 

$ 1,000.00

$ 1,087.10

$ 3.42

HypotheticalA

 

$ 1,000.00

$ 1,021.52

$ 3.31

A 5% return per year before expenses

B Annualized expense ratio reflects expenses net of applicable fee waivers.

* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

Annual Report


Investment Changes (Unaudited)

Top Ten Stocks as of June 30, 2014

 

% of fund's
net assets

% of fund's net assets
6 months ago

Facebook, Inc. Class A

7.4

6.6

Gilead Sciences, Inc.

4.2

1.6

Keurig Green Mountain, Inc.

3.0

2.5

Harley-Davidson, Inc.

3.0

3.0

Google, Inc. Class A

2.4

4.3

Google, Inc. Class C

2.4

0.0

Apple, Inc.

2.3

2.5

Actavis PLC

1.9

1.1

The Blackstone Group LP

1.9

0.9

Danaher Corp.

1.9

1.5

 

30.4

Top Five Market Sectors as of June 30, 2014

 

% of fund's
net assets

% of fund's net assets
6 months ago

Information Technology

28.0

29.1

Consumer Discretionary

15.2

19.5

Health Care

14.5

16.9

Industrials

10.5

7.8

Consumer Staples

8.7

9.3

Asset Allocation (% of fund's net assets)

As of June 30, 2014 *

As of December 31, 2013 **

hhh1706667

Stocks and
Equity Futures 99.4%

 

hhh1706667

Stocks 98.9%

 

hhh1706670

Convertible
Securities 0.3%

 

hhh1706670

Convertible
Securities 0.1%

 

hhh1706673

Short-Term
Investments and
Net Other Assets (Liabilities) 0.3%

 

hhh1706673

Short-Term
Investments and
Net Other Assets (Liabilities) 1.0%

 

* Foreign investments

11.0%

 

** Foreign investments

12.6%

 

hhh1706699

Annual Report


Investments June 30, 2014

Showing Percentage of Net Assets

Common Stocks - 98.1%

Shares

Value (000s)

CONSUMER DISCRETIONARY - 15.1%

Automobiles - 4.0%

Harley-Davidson, Inc.

540,194

$ 37,733

Tesla Motors, Inc. (a)(d)

51,610

12,389

 

50,122

Distributors - 0.2%

LKQ Corp. (a)

109,400

2,920

Diversified Consumer Services - 0.5%

Bright Horizons Family Solutions, Inc. (a)

61,200

2,628

H&R Block, Inc.

94,188

3,157

 

5,785

Hotels, Restaurants & Leisure - 3.4%

Chipotle Mexican Grill, Inc. (a)

8,521

5,049

Domino's Pizza, Inc.

10,233

748

Dunkin' Brands Group, Inc.

133,069

6,096

Las Vegas Sands Corp.

31,700

2,416

Starbucks Corp.

213,226

16,499

Yum! Brands, Inc.

143,037

11,615

 

42,423

Household Durables - 0.3%

Mohawk Industries, Inc. (a)

26,929

3,725

Internet & Catalog Retail - 1.0%

Amazon.com, Inc. (a)

19,024

6,179

TripAdvisor, Inc. (a)

58,383

6,344

 

12,523

Leisure Products - 0.1%

NJOY, Inc. (f)

56,145

950

Media - 0.7%

Comcast Corp. Class A (special) (non-vtg.)

176,643

9,420

Specialty Retail - 3.3%

CarMax, Inc. (a)

37,952

1,974

Five Below, Inc. (a)

40,900

1,632

Home Depot, Inc.

281,724

22,808

Ulta Salon, Cosmetics & Fragrance, Inc. (a)

88,104

8,054

Urban Outfitters, Inc. (a)

233,757

7,915

 

42,383

Textiles, Apparel & Luxury Goods - 1.6%

ECLAT Textile Co. Ltd.

332,900

4,034

Common Stocks - continued

Shares

Value (000s)

CONSUMER DISCRETIONARY - continued

Textiles, Apparel & Luxury Goods - continued

Michael Kors Holdings Ltd. (a)

67,300

$ 5,966

NIKE, Inc. Class B

134,967

10,467

 

20,467

TOTAL CONSUMER DISCRETIONARY

190,718

CONSUMER STAPLES - 8.7%

Beverages - 1.2%

Monster Beverage Corp. (a)

34,353

2,440

SABMiller PLC

120,224

6,971

The Coca-Cola Co.

136,336

5,775

 

15,186

Food & Staples Retailing - 0.9%

Costco Wholesale Corp.

53,700

6,184

Sprouts Farmers Market LLC

15,090

494

Whole Foods Market, Inc.

105,351

4,070

 

10,748

Food Products - 4.2%

Keurig Green Mountain, Inc.

305,872

38,115

Mead Johnson Nutrition Co. Class A

84,329

7,857

The Hershey Co.

77,697

7,565

 

53,537

Household Products - 1.6%

Procter & Gamble Co.

256,686

20,173

Personal Products - 0.8%

Estee Lauder Companies, Inc. Class A

25,500

1,894

Herbalife Ltd.

135,333

8,734

 

10,628

TOTAL CONSUMER STAPLES

110,272

ENERGY - 8.7%

Energy Equipment & Services - 3.4%

Dril-Quip, Inc. (a)

42,458

4,638

Halliburton Co.

291,500

20,699

Oceaneering International, Inc.

104,756

8,185

Pason Systems, Inc.

134,806

3,790

RigNet, Inc. (a)

104,061

5,601

 

42,913

Common Stocks - continued

Shares

Value (000s)

ENERGY - continued

Oil, Gas & Consumable Fuels - 5.3%

Cheniere Energy, Inc. (a)

106,700

$ 7,650

Continental Resources, Inc. (a)(d)

68,126

10,767

EOG Resources, Inc.

73,500

8,589

EQT Midstream Partners LP

38,200

3,695

Golar LNG Ltd.

161,461

9,704

Markwest Energy Partners LP

46,800

3,350

Noble Energy, Inc.

50,600

3,919

Phillips 66 Partners LP

103,504

7,821

Pioneer Natural Resources Co.

26,700

6,136

Targa Resources Corp.

36,439

5,086

 

66,717

TOTAL ENERGY

109,630

FINANCIALS - 7.6%

Banks - 0.9%

HDFC Bank Ltd. sponsored ADR

259,155

12,134

Capital Markets - 5.0%

BlackRock, Inc. Class A

23,394

7,477

E*TRADE Financial Corp. (a)

395,759

8,414

Fortress Investment Group LLC

166,100

1,236

Harvest Capital Credit Corp. (d)

26,130

388

Invesco Ltd.

337,384

12,736

KKR & Co. LP

146,609

3,567

Legg Mason, Inc.

98,300

5,044

The Blackstone Group LP

718,619

24,031

 

62,893

Consumer Finance - 0.7%

American Express Co.

70,084

6,649

Shriram Transport Finance Co. Ltd.

118,502

1,786

 

8,435

Diversified Financial Services - 0.8%

Berkshire Hathaway, Inc. Class B (a)

23,600

2,987

McGraw Hill Financial, Inc.

87,612

7,274

 

10,261

Common Stocks - continued

Shares

Value (000s)

FINANCIALS - continued

Real Estate Management & Development - 0.2%

Leopalace21 Corp. (a)

73,800

$ 381

Realogy Holdings Corp. (a)

47,381

1,787

 

2,168

TOTAL FINANCIALS

95,891

HEALTH CARE - 14.5%

Biotechnology - 9.5%

Acceleron Pharma, Inc.

48,400

1,644

Actelion Ltd.

17,384

2,199

Alexion Pharmaceuticals, Inc. (a)

52,594

8,218

Biogen Idec, Inc. (a)

71,579

22,570

BioMarin Pharmaceutical, Inc. (a)

89,996

5,599

Cytokinetics, Inc. warrants 6/25/17 (a)

288,420

6

Enanta Pharmaceuticals, Inc. (a)(d)

105,984

4,565

Gilead Sciences, Inc. (a)

641,363

53,175

Insmed, Inc. (a)

295,678

5,908

Kamada (a)

45,784

326

Ophthotech Corp.

48,445

2,050

uniQure B.V.

33,635

457

Vanda Pharmaceuticals, Inc. (a)

209,048

3,382

Vertex Pharmaceuticals, Inc. (a)

101,400

9,601

 

119,700

Health Care Equipment & Supplies - 0.5%

AxoGen, Inc. (a)

27,515

76

GI Dynamics, Inc. CDI (a)

161,679

88

The Cooper Companies, Inc.

45,107

6,113

 

6,277

Health Care Providers & Services - 0.4%

Apollo Hospitals Enterprise Ltd.

119,708

1,983

Qualicorp SA (a)

246,000

2,906

 

4,889

Health Care Technology - 0.1%

Cerner Corp. (a)

35,913

1,852

Life Sciences Tools & Services - 0.8%

Illumina, Inc. (a)

57,526

10,271

Pharmaceuticals - 3.2%

AbbVie, Inc.

152,602

8,613

Actavis PLC (a)

108,377

24,173

Common Stocks - continued

Shares

Value (000s)

HEALTH CARE - continued

Pharmaceuticals - continued

AVANIR Pharmaceuticals Class A (a)

260,300

$ 1,468

Perrigo Co. PLC

40,432

5,893

 

40,147

TOTAL HEALTH CARE

183,136

INDUSTRIALS - 10.5%

Aerospace & Defense - 2.4%

TransDigm Group, Inc.

54,527

9,120

United Technologies Corp.

186,612

21,544

 

30,664

Airlines - 0.2%

Ryanair Holdings PLC sponsored ADR (a)

36,953

2,062

Building Products - 0.4%

A.O. Smith Corp.

102,544

5,084

Commercial Services & Supplies - 0.5%

KAR Auction Services, Inc.

219,398

6,992

Construction & Engineering - 0.5%

Jacobs Engineering Group, Inc. (a)

99,891

5,322

MasTec, Inc. (a)

18,300

564

 

5,886

Electrical Equipment - 0.6%

AMETEK, Inc.

88,945

4,650

Power Solutions International, Inc. (a)

34,221

2,463

 

7,113

Industrial Conglomerates - 2.4%

Danaher Corp.

300,255

23,639

Roper Industries, Inc.

43,614

6,368

 

30,007

Machinery - 2.4%

Allison Transmission Holdings, Inc.

161,000

5,007

Caterpillar, Inc.

89,034

9,675

Manitowoc Co., Inc.

365,847

12,022

Sarine Technologies Ltd.

564,000

1,162

Sun Hydraulics Corp.

14,500

589

Weg SA

115,960

1,485

 

29,940

Common Stocks - continued

Shares

Value (000s)

INDUSTRIALS - continued

Professional Services - 0.6%

Verisk Analytics, Inc. (a)

103,867

$ 6,234

WageWorks, Inc. (a)

28,855

1,391

 

7,625

Road & Rail - 0.5%

J.B. Hunt Transport Services, Inc.

92,600

6,832

TOTAL INDUSTRIALS

132,205

INFORMATION TECHNOLOGY - 27.8%

Communications Equipment - 0.5%

QUALCOMM, Inc.

74,600

5,908

Electronic Equipment & Components - 0.7%

TE Connectivity Ltd.

138,863

8,587

Internet Software & Services - 15.5%

Cornerstone OnDemand, Inc. (a)

63,903

2,941

CoStar Group, Inc. (a)

9,900

1,566

Cvent, Inc. (d)

151,731

4,414

Demandware, Inc. (a)

48,000

3,330

Facebook, Inc. Class A (a)

1,395,991

93,936

Google, Inc.:

Class A (a)

51,752

30,258

Class C (a)

51,752

29,772

Naver Corp.

11,346

9,362

SPS Commerce, Inc. (a)

62,372

3,941

Textura Corp. (d)

286,739

6,779

Xoom Corp. (a)

16,800

443

Yahoo!, Inc. (a)

246,759

8,669

 

195,411

IT Services - 2.1%

Gartner, Inc. Class A (a)

97,798

6,897

Visa, Inc. Class A

96,724

20,381

 

27,278

Semiconductors & Semiconductor Equipment - 0.3%

M/A-COM Technology Solutions, Inc. (a)

23,100

519

MediaTek, Inc.

175,000

2,958

 

3,477

Software - 6.2%

Activision Blizzard, Inc.

97,687

2,178

ANSYS, Inc. (a)

1,222

93

Common Stocks - continued

Shares

Value (000s)

INFORMATION TECHNOLOGY - continued

Software - continued

Computer Modelling Group Ltd.

138,200

$ 3,836

Electronic Arts, Inc. (a)

322,634

11,573

Fleetmatics Group PLC (a)

40,850

1,321

Microsoft Corp.

535,100

22,314

salesforce.com, Inc. (a)

363,864

21,133

ServiceNow, Inc. (a)

27,200

1,685

SolarWinds, Inc. (a)

75,481

2,918

Solera Holdings, Inc.

20,000

1,343

SS&C Technologies Holdings, Inc. (a)

192,320

8,504

The Rubicon Project, Inc.

70,546

906

 

77,804

Technology Hardware, Storage & Peripherals - 2.5%

Apple, Inc.

307,146

28,543

Nimble Storage, Inc. (d)

104,300

3,204

 

31,747

TOTAL INFORMATION TECHNOLOGY

350,212

MATERIALS - 4.8%

Chemicals - 2.3%

FMC Corp.

94,042

6,695

Monsanto Co.

69,788

8,705

Sherwin-Williams Co.

47,095

9,744

Westlake Chemical Corp.

46,050

3,857

 

29,001

Construction Materials - 2.5%

CaesarStone Sdot-Yam Ltd.

13,200

648

Eagle Materials, Inc.

194,598

18,347

James Hardie Industries PLC sponsored ADR

52,527

3,434

Vulcan Materials Co.

151,624

9,666

 

32,095

TOTAL MATERIALS

61,096

TELECOMMUNICATION SERVICES - 0.1%

Diversified Telecommunication Services - 0.1%

8x8, Inc. (a)

178,860

1,445

Common Stocks - continued

Shares

Value (000s)

UTILITIES - 0.3%

Electric Utilities - 0.3%

ITC Holdings Corp.

102,774

$ 3,749

TOTAL COMMON STOCKS

(Cost $942,590)


1,238,354

Convertible Preferred Stocks - 0.3%

 

 

 

 

CONSUMER DISCRETIONARY - 0.1%

Household Durables - 0.1%

Blu Homes, Inc. Series A, 5.00% (f)

239,736

1,108

INFORMATION TECHNOLOGY - 0.2%

Internet Software & Services - 0.2%

Uber Technologies, Inc. 8.00% (f)

40,643

2,522

TOTAL CONVERTIBLE PREFERRED STOCKS

(Cost $3,630)


3,630

U.S. Treasury Obligations - 0.1%

 

Principal Amount (000s)

 

U.S. Treasury Bills, yield at date of purchase 0.02% 7/31/14 (e)
(Cost $990)

$ 990


990

Money Market Funds - 4.0%

Shares

 

Fidelity Cash Central Fund, 0.11% (b)

21,110,428

21,110

Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c)

29,500,646

29,501

TOTAL MONEY MARKET FUNDS

(Cost $50,611)


50,611

TOTAL INVESTMENT PORTFOLIO - 102.5%

(Cost $997,821)

1,293,585

NET OTHER ASSETS (LIABILITIES) - (2.5)%

(31,147)

NET ASSETS - 100%

$ 1,262,438

Futures Contracts

Expiration Date

Underlying Face Amount at Value (000s)

Unrealized Appreciation/
(Depreciation) (000s)

Purchased

Equity Index Contracts

168 ICE Russell 1000 Growth Index Contracts

Sept. 2014

$ 15,253

$ 249

12 ICE Russell 2000 Index Contracts

Sept. 2014

1,428

42

TOTAL EQUITY INDEX CONTRACTS

$ 16,681

$ 291

 

The face value of futures purchased as a percentage of net assets is 1.3%

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.

(c) Investment made with cash collateral received from securities on loan.

(d) Security or a portion of the security is on loan at period end.

(e) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At period end, the value of securities pledged amounted to $450,000.

(f) 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 $4,580,000 or 0.4% of net assets.

Additional information on each restricted holding is as follows:

Security

Acquisition Date

Acquisition Cost (000s)

Blu Homes, Inc. Series A, 5.00%

6/21/13

$ 1,108

NJOY, Inc.

9/11/13

$ 454

Uber Technologies, Inc. 8.00%

6/6/14

$ 2,522

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
(Amounts in thousands)

Fidelity Cash Central Fund

$ 38

Fidelity Securities Lending Cash Central Fund

257

Total

$ 295

Other Information

The following is a summary of the inputs used, as of June 30, 2014, 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 in the table below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.

Valuation Inputs at Reporting Date:

Description
(Amounts in thousands)

Total

Level 1

Level 2

Level 3

Investments in Securities:

Equities:

Consumer Discretionary

$ 191,826

$ 189,768

$ -

$ 2,058

Consumer Staples

110,272

110,272

-

-

Energy

109,630

109,630

-

-

Financials

95,891

95,510

381

-

Health Care

183,136

183,130

6

-

Industrials

132,205

132,205

-

-

Information Technology

352,734

350,212

-

2,522

Materials

61,096

61,096

-

-

Telecommunication Services

1,445

1,445

-

-

Utilities

3,749

3,749

-

-

U.S. Government and Government Agency Obligations

990

-

990

-

Money Market Funds

50,611

50,611

-

-

Total Investments in Securities:

$ 1,293,585

$ 1,287,628

$ 1,377

$ 4,580

Derivative Instruments:

Assets

Futures Contracts

$ 291

$ 291

$ -

$ -

Value of Derivative Instruments

The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of June 30, 2014. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.

Primary Risk Exposure /
Derivative Type

Value
(Amount in thousands)

 

Asset

Liability

Equity Risk

Futures Contracts (a)

$ 291

$ -

Total Value of Derivatives

$ 291

$ -

(a) Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. Only the period end receivable or payable for daily variation margin and net unrealized appreciation (depreciation) are presented in the Statement of Assets and Liabilities.

Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited):

United States of America

89.0%

Ireland

3.0%

Bermuda

1.8%

India

1.3%

Others (Individually Less Than 1%)

4.9%

 

100.0%

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

Annual Report


Financial Statements

Statement of Assets and Liabilities

 Amounts in thousands (except per-share amounts)

June 30, 2014

 

 

 

Assets

Investment in securities, at value (including securities loaned of $28,932) - See accompanying schedule:

Unaffiliated issuers (cost $947,210)

$ 1,242,974

 

Fidelity Central Funds (cost $50,611)

50,611

 

Total Investments (cost $997,821)

 

$ 1,293,585

Receivable for investments sold

5,110

Receivable for fund shares sold

2,712

Dividends receivable

559

Distributions receivable from Fidelity Central Funds

22

Receivable for daily variation margin for derivative instruments

27

Other receivables

28

Total assets

1,302,043

 

 

 

Liabilities

Payable for investments purchased

$ 8,331

Payable for fund shares redeemed

945

Accrued management fee

573

Other affiliated payables

194

Other payables and accrued expenses

61

Collateral on securities loaned, at value

29,501

Total liabilities

39,605

 

 

 

Net Assets

$ 1,262,438

Net Assets consist of:

 

Paid in capital

$ 1,253,738

Undistributed net investment income

717

Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions

(288,062)

Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies

296,045

Net Assets

$ 1,262,438

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

Annual Report

Financial Statements - continued

Statement of Assets and Liabilities - continued

 Amounts in thousands (except per-share amounts)

June 30, 2014

 

 

 

Growth Discovery:
Net Asset Value
, offering price and redemption price per share ($1,072,065 ÷ 46,465 shares)

$ 23.07

 

 

 

Class K:
Net Asset Value
, offering price and redemption price per share ($190,373 ÷ 8,244 shares)

$ 23.09

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

Annual Report

Statement of Operations

 Amounts in thousands

Year ended June 30, 2014

 

 

 

Investment Income

 

 

Dividends

 

$ 9,764

Income from Fidelity Central Funds

 

295

Total income

 

10,059

 

 

 

Expenses

Management fee
Basic fee

$ 6,098

Performance adjustment

289

Transfer agent fees

1,805

Accounting and security lending fees

370

Custodian fees and expenses

68

Independent trustees' compensation

5

Registration fees

58

Audit

57

Legal

6

Miscellaneous

9

Total expenses before reductions

8,765

Expense reductions

(39)

8,726

Net investment income (loss)

1,333

Realized and Unrealized Gain (Loss)

Net realized gain (loss) on:

Investment securities:

 

 

Unaffiliated issuers

168,737

Foreign currency transactions

(31)

Futures contracts

1,344

Total net realized gain (loss)

 

170,050

Change in net unrealized appreciation (depreciation) on:

Investment securities

124,386

Futures contracts

291

Total change in net unrealized appreciation (depreciation)

 

124,677

Net gain (loss)

294,727

Net increase (decrease) in net assets resulting from operations

$ 296,060

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

Annual Report

Financial Statements - continued

Statement of Changes in Net Assets

 Amounts in thousands

Year ended
June 30,
2014

Year ended
June 30,
2013

Increase (Decrease) in Net Assets

 

 

Operations

 

 

Net investment income (loss)

$ 1,333

$ 4,187

Net realized gain (loss)

170,050

115,817

Change in net unrealized appreciation (depreciation)

124,677

20,585

Net increase (decrease) in net assets resulting
from operations

296,060

140,589

Distributions to shareholders from net investment income

(1,240)

(3,920)

Distributions to shareholders from net realized gain

(308)

-

Total distributions

(1,548)

(3,920)

Share transactions - net increase (decrease)

64,284

(251,662)

Total increase (decrease) in net assets

358,796

(114,993)

 

 

 

Net Assets

Beginning of period

903,642

1,018,635

End of period (including undistributed net investment income of $717 and undistributed net investment income of $1,230, respectively)

$ 1,262,438

$ 903,642

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

Annual Report

Financial Highlights - Growth Discovery

Years ended June 30,

2014

2013

2012

2011

2010

Selected Per-Share Data

 

 

 

 

 

Net asset value, beginning of period

$ 17.45

$ 15.09

$ 14.88

$ 10.54

$ 9.04

Income from Investment Operations

 

 

 

 

 

Net investment income (loss) B

  .02

  .07

  .04

  .05

  .01

Net realized and unrealized gain (loss)

  5.63

  2.35

  .26

  4.37

  1.52

Total from investment operations

  5.65

  2.42

  .30

  4.42

  1.53

Distributions from net investment income

  (.02)

  (.06)

  (.03)

  (.03)

  (.03)

Distributions from net realized gain

  (.01)

  -

  (.06)

  (.05)

  (.01)

Total distributions

  (.03)

  (.06)

  (.09)

  (.08)

  (.03)F

Net asset value, end of period

$ 23.07

$ 17.45

$ 15.09

$ 14.88

$ 10.54

Total ReturnA

  32.40%

  16.09%

  2.07%

  42.09%

  16.96%

Ratios to Average Net Assets C, E

 

 

 

 

 

Expenses before reductions

  .81%

  .88%

  .81%

  .63%

  .76%

Expenses net of fee waivers, if any

  .81%

  .88%

  .81%

  .63%

  .76%

Expenses net of all reductions

  .81%

  .87%

  .80%

  .62%

  .75%

Net investment income (loss)

  .10%

  .42%

  .27%

  .39%

  .08%

Supplemental Data

 

 

 

 

 

Net assets, end of period (in millions)

$ 1,072

$ 767

$ 875

$ 932

$ 604

Portfolio turnover rateD

  70%

  62%

  74%

  72%

  87%

A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.

B Calculated based on average shares outstanding during the period.

C 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.

D Amount does not include the portfolio activity 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 Total distributions of $.03 per share is comprised of distributions from net investment income of $.027 and distributions from net realized gain of $.005 per share.

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

Annual Report

Financial Highlights - Class K

Years ended June 30,

2014

2013

2012

2011

2010

Selected Per-Share Data

 

 

 

 

 

Net asset value, beginning of period

$ 17.45

$ 15.09

$ 14.88

$ 10.55

$ 9.05

Income from Investment Operations

 

 

 

 

 

Net investment income (loss) B

  .05

  .09

  .06

  .08

  .03

Net realized and unrealized gain (loss)

  5.63

  2.36

  .26

  4.36

  1.53

Total from investment operations

  5.68

  2.45

  .32

  4.44

  1.56

Distributions from net investment income

  (.04)

  (.09)

  (.06)

  (.06)

  (.05)

Distributions from net realized gain

  (.01)

  -

  (.06)

  (.05)

  (.01)

Total distributions

  (.04)H

  (.09)

  (.11)G

  (.11)

  (.06)F

Net asset value, end of period

$ 23.09

$ 17.45

$ 15.09

$ 14.88

$ 10.55

Total ReturnA

  32.62%

  16.28%

  2.27%

  42.26%

  17.25%

Ratios to Average Net Assets C, E

 

 

 

 

 

Expenses before reductions

  .68%

  .72%

  .64%

  .44%

  .53%

Expenses net of fee waivers, if any

  .68%

  .72%

  .64%

  .44%

  .53%

Expenses net of all reductions

  .67%

  .71%

  .63%

  .43%

  .52%

Net investment income (loss)

  .24%

  .58%

  .44%

  .58%

  .31%

Supplemental Data

 

 

 

 

 

Net assets, end of period (in millions)

$ 190

$ 137

$ 144

$ 147

$ 43

Portfolio turnover rateD

  70%

  62%

  74%

  72%

  87%

A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.

B Calculated based on average shares outstanding during the period.

C 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.

D Amount does not include the portfolio activity 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 Total distributions of $.06 per share is comprised of distributions from net investment income of $.054 and distributions from net realized gain of $.005 per share.

G Total distributions of $.11 per share is comprised of distributions from net investment income of $.058 and distributions from net realized gain of $.055 per share.

H Total distributions of $.04 per share is comprised of distributions from net investment income of $.036 and distributions from net realized gain of $.006 per share.

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

Annual Report


Notes to Financial Statements

For the period ended June 30, 2014

(Amounts in thousands except percentages)

1. Organization.

Fidelity Growth Discovery Fund (the Fund) is a fund of Fidelity Hastings Street Trust (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Growth Discovery and Class K shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.

2. Investments in Fidelity Central Funds.

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 .01%.

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 contain the significant accounting policies (including investment valuation policies) of those 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

Annual Report

3. Significant Accounting Policies - continued

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. In accordance with valuation policies and procedures approved by the Board of Trustees (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 Fidelity Management & Research Company (FMR) Fair Value Committee (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, changes in interest rates and credit quality. 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 is responsible for approving and reporting to the Board all fair value determinations.

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.

Annual Report

Notes to Financial Statements - continued

(Amounts in thousands except percentages)

3. Significant Accounting Policies - continued

Investment Valuation - continued

Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. U.S. government and government agency obligations are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.

Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded and are categorized as Level 1 in the hierarchy. Investments in open-end mutual funds, including Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of June 30, 2014, is included at the end of the Fund's Schedule of Investments.

Foreign Currency. The Fund 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 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

Annual Report

3. Significant Accounting Policies - continued

Investment Transactions and Income - continued

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. 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 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 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.

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 June 30, 2014, 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. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.

Annual Report

Notes to Financial Statements - continued

(Amounts in thousands except percentages)

3. Significant Accounting Policies - continued

Income Tax Information and Distributions to Shareholders - continued

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.

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 futures contracts, foreign currency transactions, partnerships, capital loss carryforwards 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

$ 305,020

Gross unrealized depreciation

(11,882)

Net unrealized appreciation (depreciation) on securities and other investments

$ 293,138

 

 

Tax Cost

$ 1,000,447

The tax-based components of distributable earnings as of period end were as follows:

Undistributed ordinary income

$ 717

Capital loss carryforward

$ (285,145)

Net unrealized appreciation (depreciation)

$ 293,128

Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is 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.

Annual Report

3. Significant Accounting Policies - continued

Income Tax Information and Distributions to Shareholders - continued

Fiscal year of expiration

 

2017

$ (24,714)

2018

(260,431)

Total capital loss carryforward

$ (285,145)

The tax character of distributions paid was as follows:

 

June 30, 2014

June 30, 2013

Ordinary Income

$ 1,548

$ 3,920

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

4. Derivative Instruments.

Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.

The Fund used derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.

The Fund's use of derivatives increased or decreased its exposure to the following risk:

Equity Risk

Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment.

Annual Report

Notes to Financial Statements - continued

(Amounts in thousands except percentages)

4. Derivative Instruments - continued

Risk Exposures and the Use of Derivative Instruments - continued

The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Counterparty credit risk related to exchange-traded futures contracts may be mitigated by the protection provided by the exchange on which they trade.

Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.

Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.

Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent daily payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable, if any, is included in daily variation margin for derivative instruments in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.

Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts." The underlying face amount at value reflects each contract's exposure to the underlying instrument or index at period end and is representative of volume of activity during the period. Securities deposited to meet initial margin requirements are identified in the Schedule of Investments.

During the period the Fund recognized net realized gain (loss) of $1,344 and a change in net unrealized appreciation (depreciation) of $291 related to its investment in futures contracts. These amounts are included in the Statement of Operations.

5. Purchases and Sales of Investments.

Purchases and sales of securities, other than short-term securities, aggregated $805,090 and $750,433, respectively.

Annual Report

6. Fees and Other Transactions with Affiliates.

Management Fee. Fidelity Management & Research Company (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 the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Growth Discovery as compared to its benchmark index, the Russell 3000 Growth Index, over the same 36 month performance period. For the reporting period, the total annual management fee rate, including the performance adjustment, was .58% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.

Transfer Agent Fees. Fidelity Investments Institutional Operations Company, 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 Growth Discovery. FIIOC receives an asset-based fee of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.

For the period, transfer agent fees for each class were as follows:

 

Amount

% of
Average
Net Assets

Growth Discovery

$ 1,728

.18

Class K

77

.05

 

$ 1,805

 

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.

Annual Report

Notes to Financial Statements - continued

(Amounts in thousands except percentages)

6. Fees and Other Transactions with Affiliates - continued

Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser or Sub-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 $11 for the period.

7. 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 $2 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.

8. Security Lending.

The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. 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. 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. At period end, there were no security loans outstanding with FCM. 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 $257, including $2 from securities loaned to FCM.

Annual Report

9. 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 $28 for the period.

In addition, the investment adviser reimbursed a portion of the Fund's operating expenses during the period in the amount of $11.

10. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

Years ended June 30,

2014

2013

From net investment income

 

 

Growth Discovery

$ 959

$ 3,196

Class K

281

724

Total

$ 1,240

$ 3,920

From net realized gain

 

 

Growth Discovery

$ 261

$ -

Class K

47

-

Total

$ 308

$ -

11. Share Transactions.

Transactions for each class of shares were as follows:

 

Shares

Dollars

Years ended June 30,

2014

2013

2014

2013

Growth Discovery

 

 

 

 

Shares sold

11,432

5,161

$ 240,406

$ 82,537

Reinvestment of distributions

61

198

1,152

3,039

Shares redeemed

(8,980)

(19,383)

(186,625)

(309,727)

Net increase (decrease)

2,513

(14,024)

$ 54,933

$ (224,151)

Class K

 

 

 

 

Shares sold

2,259

3,128

$ 47,861

$ 49,663

Reinvestment of distributions

17

47

328

724

Shares redeemed

(1,868)

(4,878)

(38,838)

(77,898)

Net increase (decrease)

408

(1,703)

$ 9,351

$ (27,511)

Annual Report

Notes to Financial Statements - continued

(Amounts in thousands except percentages)

12. 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.

Annual Report


Report of Independent Registered Public Accounting Firm

To the Trustees of Fidelity Hastings Street Trust and the Shareholders of Fidelity Growth Discovery Fund:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Growth Discovery Fund (a fund of Fidelity Hastings Street Trust) at June 30, 2014, 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. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity Growth Discovery Fund's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements 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 are free of material misstatement. An audit 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, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at June 30, 2014 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

Boston, Massachusetts

August 11, 2014

Annual Report


Trustees and Officers

The Trustees, Member of the Advisory Board, 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. Except for James C. Curvey, each of the Trustees oversees 173 funds. Mr. Curvey oversees 397 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 (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. The officers and Advisory Board Member hold office without limit in time, except that any officer and 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.

Experience, Skills, Attributes, and Qualifications of the Fund's 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.

Annual Report

Board Structure and Oversight Function. James C. Curvey is an interested person (as defined in the 1940 Act) 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. Ned C. Lautenbach 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 equity and high income funds and another Board oversees Fidelity's investment-grade bond, money market, and asset allocation funds. The asset allocation funds may invest in Fidelity funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity funds overseen by each Board.

The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. For example, a working group comprised of Independent Trustees and FMR has worked and continues to work to review the Fidelity funds' valuation-related activities, reporting and risk management. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of FMR's risk management program for the Fidelity funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Fund's Trustees."

Annual Report

Trustees and Officers - continued

The fund's Statements of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-835-5092.

Interested Trustees*:

Correspondence intended for each 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+

James C. Curvey (1935)

Year of Election or Appointment: 2007

Trustee

Chairman of the Board of Trustees

 

Mr. Curvey also serves as Trustee of other Fidelity funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (2009-present), and Vice Chairman (2007-present) and Director of FMR LLC. In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the Trustees of Villanova University. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (2009-2014), a Director of FMR (2007-2014), a Director of FMR Co., Inc. (2007-2014) and was the Vice Chairman (2006-2007) and Director (2000-2007) of FMR Corp.

Charles S. Morrison (1960)

Year of Election or Appointment: 2014

Trustee

 

Mr. Morrison also serves as Trustee of other funds. He serves as President, Asset Management (2014-present) and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.

* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR.

+ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for the fund.

Annual Report

Trustees and Officers - continued

Independent Trustees:

Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.

Name, Year of Birth; Principal Occupations and Other Relevant Experience+

Dennis J. Dirks (1948)

Year of Election or Appointment: 2005

Trustee

 

Mr. Dirks also serves as Trustee of other Fidelity funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), and as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008). Mr. Dirks is a member of the Independent Directors Council (IDC) Governing Council (2010-present) and Board of Directors for The Brookville Center for Children's Services, Inc. (2009-present).

Alan J. Lacy (1953)

Year of Election or Appointment: 2008

Trustee

 

Mr. Lacy also serves as Trustee of other Fidelity funds. Mr. Lacy serves as Senior Adviser (2007-present) of Oak Hill Capital Partners, L.P. (private equity). Mr. Lacy also served as Chief Executive Officer (2000-2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation and Sears, Roebuck and Co. (retail). In addition, Mr. Lacy serves as a member of the Board of Directors of Dave & Buster's Entertainment, Inc. (restaurant and entertainment complexes, 2010-present), Earth Fare, Inc. (retail grocery, 2012-present), The Hillman Companies, Inc. (hardware wholesalers, 2010-present), and Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). Mr. Lacy is a member of the Board of Trustees of The National Parks Conservation Association (2006-present). Previously, Mr. Lacy served as Chairman of the Board of Trustees of the National Parks Conservation Association (2008-2011) and as a member of the Board of Directors for the Western Union Company (global money transfer, 2006-2011).

Ned C. Lautenbach (1944)

Year of Election or Appointment: 2000

Trustee

Chairman of the Independent Trustees

 

Mr. Lautenbach also serves as Trustee of other Fidelity funds. Mr. Lautenbach currently serves as the Lead Director of the Eaton Corporation Board of Directors (diversified industrial, 1997-present). Mr. Lautenbach is Chairman of the Board of Directors of the Philharmonic Center for the Arts in Naples, Florida (2012-present) and a member of the Council on Foreign Relations (1994-present). Previously, Mr. Lautenbach was a Partner/Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007).

Joseph Mauriello (1944)

Year of Election or Appointment: 2008

Trustee

 

Mr. Mauriello also serves as Trustee of other Fidelity funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).

Robert W. Selander (1950)

Year of Election or Appointment: 2011

Trustee

 

Mr. Selander also serves as Trustee of other Fidelity funds. Previously, Mr. Selander served as a Member of the Advisory Board of other Fidelity funds (2011), and Executive Vice Chairman (2010), Chief Executive Officer (2009-2010), and President and Chief Executive Officer (1997-2009) of Mastercard, Inc.

Cornelia M. Small (1944)

Year of Election or Appointment: 2005

Trustee

 

Ms. Small also serves as Trustee of other Fidelity funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.

William S. Stavropoulos (1939)

Year of Election or Appointment: 2001

Trustee

Vice Chairman of the Independent Trustees

 

Mr. Stavropoulos also serves as Trustee of other Fidelity funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and Maersk Inc. (industrial conglomerate), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of the Naples Philharmonic Center for the Arts. Previously, Mr. Stavropoulos served as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).

David M. Thomas (1949)

Year of Election or Appointment: 2008

Trustee

 

Mr. Thomas also serves as Trustee of other Fidelity funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), and as a member of the Board of Directors of Interpublic Group of Companies, Inc. (marketing communication, 2004-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).

+ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for the fund.

Advisory Board Member and Officers:

Correspondence intended for each officer and Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.

Name, Year of Birth; Principal Occupation

Peter S. Lynch (1944)

Year of Election or Appointment: 2003

Member of the Advisory Board

 

Mr. Lynch also serves as Member of the Advisory Board of other Fidelity funds. Mr. Lynch is Vice Chairman and a Director of FMR and FMR Co., Inc. In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).

Elizabeth Paige Baumann (1968)

Year of Election or Appointment: 2012

Anti-Money Laundering (AML) Officer

 

Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer of FMR LLC (2012-present) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as Vice President and Deputy Anti-Money Laundering Officer (2007-2012).

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 (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. Mr. Davis is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (2003-2010).

Adrien E. Deberghes (1967)

Year of Election or Appointment: 2008

Deputy Treasurer

 

Mr. Deberghes also serves as an officer of other funds. He 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).

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. (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: 2008

Secretary and Chief Legal Officer (CLO)

 

Mr. Goebel serves as Secretary and CLO of other funds. Mr. Goebel also serves as Secretary of Fidelity SelectCo, LLC (2013-present), Fidelity Investments Money Management, Inc. (FIMM) (2010-present) and Fidelity Research and Analysis Company (FRAC) (2010-present); General Counsel, Secretary, and Senior Vice President of FMR (2008-present) and FMR Co., Inc. (2008-present); Chief Legal Officer of Fidelity Management & Research (Hong Kong) Limited (2008-present); and Assistant Secretary of Fidelity Management & Research (Japan) Inc. (2008-present) and Fidelity Management & Research (U.K.) Inc. (2008-present). Previously, Mr. Goebel served as Secretary and CLO of other Fidelity funds (2008-2013), 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). Mr. Goebel has been employed by FMR LLC or an affiliate since 2001.

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 President of FMR's Equity Division (2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager.

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 FMR's Program Management Group (2010-2013), and Vice President of Valuation Oversight (2008-2010).

Melissa M. Reilly (1971)

Year of Election or Appointment: 2014

Vice President of certain Equity Funds

 

Ms. Reilly also serves as Vice President of other funds. Ms. Reilly is an employee of Fidelity Investments (2004-present).

Kenneth B. Robins (1969)

Year of Election or Appointment: 2008

President and Treasurer

 

Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (2013-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served in other fund officer roles.

Stephen Sadoski (1971)

Year of Election or Appointment: 2012

Deputy Treasurer

 

Mr. Sadoski also serves as Deputy Treasurer of other funds. He is an employee of Fidelity Investments (2012-present) and has served in another fund officer role. Prior to joining Fidelity Investments, Mr. Sadoski served as an assistant chief accountant in the Division of Investment Management of the Securities and Exchange Commission (SEC) (2009-2012) and as a senior manager at Deloitte & Touche LLP (1997-2009).

Stacie M. Smith (1974)

Year of Election or Appointment: 2013

Deputy 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).

Renee Stagnone (1975)

Year of Election or Appointment: 2013

Deputy Treasurer

 

Ms. Stagnone also serves as Deputy Treasurer of other funds. Ms. Stagnone is an employee of Fidelity Investments.

Linda J. Wondrack (1964)

Year of Election or Appointment: 2014

Chief Compliance Officer

 

Ms. Wondrack also serves as Chief Compliance Officer of other funds. Ms. Wondrack is Executive Vice President and head of the Ethics Office and Asset Management Compliance for Fidelity Investments (2012-present). Ms. Wondrack also serves as Chief Compliance Officer of Fidelity SelectCo, LLC (2014-present); Chief Compliance Officer of Impresa Management LLC (2013-present); and Chief Compliance Officer of FMR Co., Inc., Fidelity Investments Money Management, Inc., Fidelity Management & Research (Japan) Inc., Fidelity Management & Research (U.K.) Inc., Fidelity Management & Research (Hong Kong), Fidelity Management & Research Company, Pyramis Global Advisors, LLC, and Strategic Advisers, Inc., Ballyrock Investment Advisors LLC, and Northern Neck Investors LLC (2012-present). Previously, Ms. Wondrack served as Senior Vice President and Chief Compliance Officer for Columbia Management Investment Advisers, LLC (2005-2012); Chief Compliance Officer for certain funds within the Columbia Family of Funds (2007-2012); and Senior Vice President of Compliance Risk Management at Bank of America (2005-2010).

Joseph F. Zambello (1957)

Year of Election or Appointment: 2011

Deputy Treasurer

 

Mr. Zambello also serves as Deputy Treasurer of other funds. Mr. Zambello is an employee of Fidelity Investments. Previously, Mr. Zambello served as Vice President of FMR's Program Management Group (2009-2011) and Vice President of the Transfer Agent Oversight Group (2005-2009).

Annual Report


Distributions (Unaudited)

Class K designates 100% of the dividend distributed during the fiscal year as qualifying for the dividends-received deduction for corporate shareholders.

Class K designates 100% of the dividend distributed during the fiscal year as amounts which may be taken into account as a dividend for the purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.

The fund will notify shareholders in January 2015 of amounts for use in preparing 2014 income tax returns.

Annual Report

Investment Adviser

Fidelity Management &
Research Company

Boston, MA

Investment Sub-Advisers

FMR Co., Inc.

Fidelity Management & Research
(U.K.) Inc.

Fidelity Management & Research
(Japan) Inc.

Fidelity Management & Research
(Hong Kong) Limited

General Distributor

Fidelity Distributors Corporation

Smithfield, RI

Transfer and Service Agents

Fidelity Investments Institutional
Operations Company, Inc.

Boston, MA

Fidelity Service Company, Inc.
Boston, MA

Custodian

Brown Brothers Harriman & Co.

Boston, MA

(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St., Boston, MA 02210
www.fidelity.com

CII-K-UANN-0814
1.863270.105

Fidelity®

Mega Cap Stock

Fund

Annual Report

June 30, 2014

(Fidelity Cover Art)


Contents

Performance

(Click Here)

How the fund has done over time.

Management's Discussion of Fund Performance

(Click Here)

The Portfolio Manager's review of fund performance and strategy.

Shareholder Expense Example

(Click Here)

An example of shareholder expenses.

Investment Changes

(Click Here)

A summary of major shifts in the fund's investments over the past six months.

Investments

(Click Here)

A complete list of the fund's investments with their market values.

Financial Statements

(Click Here)

Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights.

Notes

(Click Here)

Notes to the financial statements.

Report of Independent Registered Public Accounting Firm

(Click Here)

 

Trustees and Officers

(Click Here)

 

Distributions

(Click Here)

 

To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 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. © 2014 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.advisor.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.

Annual Report


Performance: The Bottom Line

Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' 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 $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.

Average Annual Total Returns

Periods ended June 30, 2014

Past 1
year

Past 5
years

Past 10
years

Fidelity® Mega Cap Stock Fund A

24.18%

19.68%

8.24%

A Prior to December 1, 2007, Fidelity Mega Cap Stock Fund operated under certain different investment policies. 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® Mega Cap Stock Fund, a class of the fund, on June 30, 2004. 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.

hhh1706711

Annual Report


Management's Discussion of Fund Performance

Market Recap: Despite intermittent volatility driven by geopolitical concerns, stocks posted a series of new highs during the 12 months ending June 30, 2014, amid a decidedly favorable environment for riskier assets. The S&P 500® Index rose 24.61% for the year, helped by a rise in consumer spending and the lowest unemployment rate since 2008. The U.S. Federal Reserve balanced stimulus reductions with continued low interest rates, aiding a broad advance. All 10 S&P 500® market sectors gained, seven by more than 20%. Materials (+33%) was tops, as investors seemed to anticipate sustained economic improvement and renewed infrastructure build-outs. Information technology (+32%) benefited from large cash balances, rising dividends and stock buybacks, and a bevy of innovations. Health care (+30%) was aided by new drugs and predictable reimbursements. Conversely, the biggest laggard, telecommunication services (+5%), battled slow growth and stiff pricing competition. Across size and style segments: overall, investors showed some preference for large-cap stocks over small-caps and growth stocks over value, although market leadership rotated during the year. With the "risk-on" trade alive and well, the growth-oriented Nasdaq Composite Index® flourished, advancing 31.17%, while the blue-chip Dow Jones Industrial AverageSM delivered a more subdued 15.56% return.

Comments from Matthew Fruhan, Portfolio Manager of Fidelity® Mega Cap Stock Fund: For the year, the fund's Retail Class shares gained 24.18%. For comparison, the mega-cap proxy Russell Top 200® Index returned 24.69% and the S&P 500® Index advanced 24.61%. Relative to the Russell index, it hurt the most to overweight big-box retailer Target, which was among the fund's biggest holdings. The lingering effects of the firm's troubled expansion into Canada and a holiday-season credit breach continued to weigh on the stock, but this weak stretch allowed me to add notable exposure at a valuation I liked. In January, I established an underweight stake in Facebook, which detracted as shares of the social-media giant outperformed. Stock selection and an overweight in financials detracted, including investment banks JPMorgan Chase and Citigroup, both of which were among the fund's largest holdings. Stock selection in consumer staples helped, including drugstore chain Walgreen, while an underweight in the underperforming shares of IBM 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.

Annual Report


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 (January 1, 2014 to June 30, 2014).

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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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.

Annual Report

 

Annualized
Expense Ratio
B

Beginning
Account Value
January 1, 2014

Ending
Account Value
June 30, 2014

Expenses Paid
During Period
*
January 1, 2014
to June 30, 2014

Class A

.95%

 

 

 

Actual

 

$ 1,000.00

$ 1,064.60

$ 4.86

Hypothetical A

 

$ 1,000.00

$ 1,020.08

$ 4.76

Class T

1.21%

 

 

 

Actual

 

$ 1,000.00

$ 1,063.20

$ 6.19

Hypothetical A

 

$ 1,000.00

$ 1,018.79

$ 6.06

Class B

1.75%

 

 

 

Actual

 

$ 1,000.00

$ 1,060.20

$ 8.94

Hypothetical A

 

$ 1,000.00

$ 1,016.12

$ 8.75

Class C

1.70%

 

 

 

Actual

 

$ 1,000.00

$ 1,060.50

$ 8.69

Hypothetical A

 

$ 1,000.00

$ 1,016.36

$ 8.50

Mega Cap Stock

.68%

 

 

 

Actual

 

$ 1,000.00

$ 1,066.10

$ 3.48

Hypothetical A

 

$ 1,000.00

$ 1,021.42

$ 3.41

Institutional Class

.71%

 

 

 

Actual

 

$ 1,000.00

$ 1,065.70

$ 3.64

Hypothetical A

 

$ 1,000.00

$ 1,021.27

$ 3.56

Class Z

.53%

 

 

 

Actual

 

$ 1,000.00

$ 1,066.30

$ 2.72

Hypothetical A

 

$ 1,000.00

$ 1,022.17

$ 2.66

A 5% return per year before expenses

B Annualized expense ratio reflects expenses net of applicable fee waivers.

* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

Annual Report


Investment Changes (Unaudited)

Top Ten Stocks as of June 30, 2014

 

% of fund's
net assets

% of fund's net assets
6 months ago

Apple, Inc.

4.6

4.6

JPMorgan Chase & Co.

4.2

4.3

Microsoft Corp.

3.5

3.3

General Electric Co.

3.1

3.3

Chevron Corp.

2.6

2.2

Comcast Corp. Class A (special) (non-vtg.)

2.5

2.0

Verizon Communications, Inc.

2.3

1.2

Citigroup, Inc.

2.3

2.6

Bank of America Corp.

2.1

2.1

Target Corp.

2.0

1.9

 

29.2

Top Five Market Sectors as of June 30, 2014

 

% of fund's
net assets

% of fund's net assets
6 months ago

Information Technology

23.4

22.6

Financials

18.3

19.2

Energy

12.0

12.3

Consumer Staples

10.9

11.0

Health Care

9.9

11.1

Asset Allocation (% of fund's net assets)

As of June 30, 2014*

As of December 31, 2013**

hhh1706667

Stocks 98.2%

 

hhh1706667

Stocks 98.8%

 

hhh1706715

Convertible Securities 0.0%

 

hhh1706670

Convertible Securities 0.1%

 

hhh1706673

Short-Term Investments
and Net Other Assets (Liabilities) 1.8%

 

hhh1706673

Short-Term Investments
and Net Other Assets (Liabilities) 1.1%

 

* Foreign investments

10.7%

 

** Foreign investments

10.7%

 

hhh1706720

Annual Report


Investments June 30, 2014

Showing Percentage of Net Assets

Common Stocks - 98.2%

Shares

Value

CONSUMER DISCRETIONARY - 9.3%

Hotels, Restaurants & Leisure - 1.2%

McDonald's Corp.

152,600

$ 15,372,924

Yum! Brands, Inc.

357,600

29,037,120

 

44,410,044

Media - 4.6%

Comcast Corp. Class A (special) (non-vtg.) (d)

1,674,100

89,279,753

The Walt Disney Co.

169,000

14,490,060

Time Warner, Inc.

784,900

55,139,225

Twenty-First Century Fox, Inc. Class A

193,500

6,801,525

 

165,710,563

Multiline Retail - 2.0%

Target Corp.

1,261,300

73,092,335

Specialty Retail - 1.5%

Lowe's Companies, Inc.

1,149,600

55,169,304

TOTAL CONSUMER DISCRETIONARY

338,382,246

CONSUMER STAPLES - 10.9%

Beverages - 3.7%

Diageo PLC

500,803

15,950,125

PepsiCo, Inc.

432,905

38,675,733

SABMiller PLC

312,289

18,107,213

The Coca-Cola Co.

1,476,100

62,527,596

 

135,260,667

Food & Staples Retailing - 1.8%

CVS Caremark Corp.

389,100

29,326,467

Walgreen Co.

511,897

37,946,925

 

67,273,392

Food Products - 0.4%

Kellogg Co.

216,400

14,217,480

Household Products - 1.8%

Procter & Gamble Co.

818,700

64,341,633

Tobacco - 3.2%

British American Tobacco PLC sponsored ADR

519,400

61,850,152

Philip Morris International, Inc.

490,530

41,356,584

Reynolds American, Inc.

197,600

11,925,160

 

115,131,896

TOTAL CONSUMER STAPLES

396,225,068

Common Stocks - continued

Shares

Value

ENERGY - 12.0%

Energy Equipment & Services - 1.4%

National Oilwell Varco, Inc.

124,100

$ 10,219,635

Schlumberger Ltd.

344,800

40,669,160

 

50,888,795

Oil, Gas & Consumable Fuels - 10.6%

Anadarko Petroleum Corp.

76,400

8,363,508

Apache Corp.

412,505

41,506,253

BG Group PLC

1,699,000

35,909,707

Canadian Natural Resources Ltd.

568,600

26,126,665

Chevron Corp.

715,700

93,434,635

Exxon Mobil Corp.

358,271

36,070,724

Imperial Oil Ltd.

373,900

19,703,291

Occidental Petroleum Corp.

521,300

53,501,019

Suncor Energy, Inc.

948,700

40,453,446

The Williams Companies, Inc.

510,200

29,698,742

 

384,767,990

TOTAL ENERGY

435,656,785

FINANCIALS - 18.3%

Banks - 12.5%

Bank of America Corp.

5,029,700

77,306,489

Citigroup, Inc.

1,809,370

85,221,327

JPMorgan Chase & Co.

2,701,500

155,660,430

PNC Financial Services Group, Inc.

239,800

21,354,190

Standard Chartered PLC (United Kingdom)

1,566,208

32,004,076

U.S. Bancorp

732,800

31,744,896

Wells Fargo & Co.

1,022,730

53,754,689

 

457,046,097

Capital Markets - 3.1%

BlackRock, Inc. Class A

19,000

6,072,400

Charles Schwab Corp.

982,100

26,447,953

Goldman Sachs Group, Inc.

22,700

3,800,888

Morgan Stanley, Inc.

1,186,000

38,343,380

State Street Corp.

568,900

38,264,214

 

112,928,835

Diversified Financial Services - 0.1%

IntercontinentalExchange Group, Inc.

10,500

1,983,450

Insurance - 2.6%

AIA Group Ltd.

92,200

463,355

Common Stocks - continued

Shares

Value

FINANCIALS - continued

Insurance - continued

American International Group, Inc.

637,100

$ 34,772,918

Marsh & McLennan Companies, Inc.

213,580

11,067,716

MetLife, Inc.

849,095

47,175,718

Ping An Insurance (Group) Co. of China Ltd. (H Shares)

101,500

785,766

 

94,265,473

TOTAL FINANCIALS

666,223,855

HEALTH CARE - 9.9%

Biotechnology - 1.3%

Amgen, Inc.

318,690

37,723,335

Biogen Idec, Inc. (a)

34,200

10,783,602

 

48,506,937

Health Care Equipment & Supplies - 0.8%

Abbott Laboratories

465,100

19,022,590

Stryker Corp.

96,100

8,103,152

 

27,125,742

Health Care Providers & Services - 2.5%

Express Scripts Holding Co. (a)

318,907

22,109,822

McKesson Corp.

202,400

37,688,904

UnitedHealth Group, Inc.

400,048

32,703,924

 

92,502,650

Life Sciences Tools & Services - 0.3%

Thermo Fisher Scientific, Inc.

94,500

11,151,000

Pharmaceuticals - 5.0%

AbbVie, Inc.

243,900

13,765,716

GlaxoSmithKline PLC sponsored ADR

619,000

33,104,120

Johnson & Johnson

565,900

59,204,458

Merck & Co., Inc.

477,300

27,611,805

Novartis AG sponsored ADR

170,400

15,426,312

Sanofi SA

80,024

8,505,715

Teva Pharmaceutical Industries Ltd. sponsored ADR

487,200

25,539,024

 

183,157,150

TOTAL HEALTH CARE

362,443,479

INDUSTRIALS - 9.4%

Aerospace & Defense - 1.9%

Honeywell International, Inc.

118,700

11,033,165

Common Stocks - continued

Shares

Value

INDUSTRIALS - continued

Aerospace & Defense - continued

The Boeing Co.

309,000

$ 39,314,070

United Technologies Corp.

176,200

20,342,290

 

70,689,525

Air Freight & Logistics - 1.8%

FedEx Corp.

117,800

17,832,564

United Parcel Service, Inc. Class B

475,000

48,763,500

 

66,596,064

Industrial Conglomerates - 3.4%

Danaher Corp.

146,570

11,539,456

General Electric Co.

4,323,800

113,629,464

 

125,168,920

Machinery - 0.3%

Caterpillar, Inc.

86,500

9,399,955

Road & Rail - 2.0%

CSX Corp.

1,160,700

35,761,167

Norfolk Southern Corp.

207,800

21,409,634

Union Pacific Corp.

148,190

14,781,953

 

71,952,754

TOTAL INDUSTRIALS

343,807,218

INFORMATION TECHNOLOGY - 23.4%

Communications Equipment - 3.1%

Cisco Systems, Inc.

2,773,400

68,918,990

QUALCOMM, Inc.

531,900

42,126,480

 

111,045,470

Internet Software & Services - 4.2%

Facebook, Inc. Class A (a)

103,597

6,971,042

Google, Inc.:

Class A (a)

109,350

63,933,665

Class C (a)

95,750

55,083,060

Yahoo!, Inc. (a)

781,639

27,458,978

 

153,446,745

IT Services - 3.8%

Accenture PLC Class A

69,100

5,586,044

Cognizant Technology Solutions Corp. Class A (a)

523,400

25,599,494

IBM Corp.

156,000

28,278,120

Common Stocks - continued

Shares

Value

INFORMATION TECHNOLOGY - continued

IT Services - continued

MasterCard, Inc. Class A

555,900

$ 40,841,973

Visa, Inc. Class A

187,100

39,423,841

 

139,729,472

Semiconductors & Semiconductor Equipment - 1.4%

Applied Materials, Inc.

699,625

15,776,544

Broadcom Corp. Class A

973,036

36,119,096

 

51,895,640

Software - 5.3%

Adobe Systems, Inc. (a)

253,200

18,321,552

Microsoft Corp.

3,024,500

126,121,650

Oracle Corp.

899,900

36,472,947

salesforce.com, Inc. (a)

199,200

11,569,536

 

192,485,685

Technology Hardware, Storage & Peripherals - 5.6%

Apple, Inc.

1,808,507

168,064,558

EMC Corp.

1,051,000

27,683,340

First Data Holdings, Inc. Class B (e)

2,429,231

9,716,924

 

205,464,822

TOTAL INFORMATION TECHNOLOGY

854,067,834

MATERIALS - 2.7%

Chemicals - 2.1%

E.I. du Pont de Nemours & Co.

333,900

21,850,416

Monsanto Co.

315,310

39,331,769

Syngenta AG (Switzerland)

43,089

15,919,199

 

77,101,384

Metals & Mining - 0.6%

Freeport-McMoRan Copper & Gold, Inc.

538,000

19,637,000

TOTAL MATERIALS

96,738,384

TELECOMMUNICATION SERVICES - 2.3%

Diversified Telecommunication Services - 2.3%

Verizon Communications, Inc.

1,743,725

85,320,464

TOTAL COMMON STOCKS

(Cost $2,718,899,411)


3,578,865,333

Money Market Funds - 2.6%

Shares

Value

Fidelity Cash Central Fund, 0.11% (b)

74,761,932

$ 74,761,932

Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c)

22,517,000

22,517,000

TOTAL MONEY MARKET FUNDS

(Cost $97,278,932)


97,278,932

TOTAL INVESTMENT PORTFOLIO - 100.8%

(Cost $2,816,178,343)

3,676,144,265

NET OTHER ASSETS (LIABILITIES) - (0.8)%

(30,832,045)

NET ASSETS - 100%

$ 3,645,312,220

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.

(c) Investment made with cash collateral received from securities on loan.

(d) Security or a portion of the security is on loan at period end.

(e) 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 $9,716,924 or 0.3% of net assets.

Additional information on each restricted holding is as follows:

Security

Acquisition Date

Acquisition Cost

First Data Holdings, Inc. Class B

6/26/14

$ 9,716,924

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

$ 27,717

Fidelity Securities Lending Cash Central Fund

89,556

Total

$ 117,273

Other Information

The following is a summary of the inputs used, as of June 30, 2014, 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 in the table 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:

Equities:

Consumer Discretionary

$ 338,382,246

$ 338,382,246

$ -

$ -

Consumer Staples

396,225,068

380,274,943

15,950,125

-

Energy

435,656,785

435,656,785

-

-

Financials

666,223,855

666,223,855

-

-

Health Care

362,443,479

353,937,764

8,505,715

-

Industrials

343,807,218

343,807,218

-

-

Information Technology

854,067,834

844,350,910

-

9,716,924

Materials

96,738,384

80,819,185

15,919,199

-

Telecommunication Services

85,320,464

85,320,464

-

-

Money Market Funds

97,278,932

97,278,932

-

-

Total Investments in Securities:

$ 3,676,144,265

$ 3,626,052,302

$ 40,375,039

$ 9,716,924

Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited):

United States of America

89.3%

United Kingdom

5.4%

Canada

2.4%

Curacao

1.1%

Others (Individually Less Than 1%)

1.8%

 

100.0%

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

Annual Report


Financial Statements

Statement of Assets and Liabilities

 

June 30, 2014

 

 

 

Assets

Investment in securities, at value (including securities loaned of $21,833,302) - See accompanying schedule:

Unaffiliated issuers (cost $2,718,899,411)

$ 3,578,865,333

 

Fidelity Central Funds (cost $97,278,932)

97,278,932

 

Total Investments (cost $2,816,178,343)

 

$ 3,676,144,265

Receivable for investments sold

6,265,877

Receivable for fund shares sold

5,281,399

Dividends receivable

4,490,136

Distributions receivable from Fidelity Central Funds

19,236

Receivable from investment adviser for expense reductions

386

Other receivables

124,808

Total assets

3,692,326,107

 

 

 

Liabilities

Payable for investments purchased

$ 19,178,333

Payable for fund shares redeemed

3,159,924

Accrued management fee

1,355,067

Distribution and service plan fees payable

36,521

Other affiliated payables

644,371

Other payables and accrued expenses

122,671

Collateral on securities loaned, at value

22,517,000

Total liabilities

47,013,887

 

 

 

Net Assets

$ 3,645,312,220

Net Assets consist of:

 

Paid in capital

$ 2,686,009,603

Undistributed net investment income

25,146,366

Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions

74,183,358

Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies

859,972,893

Net Assets

$ 3,645,312,220

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

Annual Report

Financial Statements - continued

Statement of Assets and Liabilities - continued

 

June 30, 2014

 

 

 

Calculation of Maximum Offering Price

Class A:
Net Asset Value
and redemption price per share ($77,335,409 ÷ 4,739,947 shares)

$ 16.32

 

 

 

Maximum offering price per share (100/94.25 of $16.32)

$ 17.32

Class T:
Net Asset Value
and redemption price per share ($15,728,415 ÷ 964,584 shares)

$ 16.31

 

 

 

Maximum offering price per share (100/96.50 of $16.31)

$ 16.90

Class B:
Net Asset Value
and offering price per share ($918,549 ÷ 56,656 shares)A

$ 16.21

 

 

 

Class C:
Net Asset Value
and offering price per share ($16,599,716 ÷ 1,029,726 shares)A

$ 16.12

 

 

 

Mega Cap Stock:
Net Asset Value
, offering price and redemption price per share ($2,860,197,294 ÷ 173,984,386 shares)

$ 16.44

 

 

 

Institutional Class:
Net Asset Value
, offering price and redemption price per share ($674,415,747 ÷ 41,154,574 shares)

$ 16.39

 

 

 

Class Z:
Net Asset Value
, offering price and redemption price per share ($117,090 ÷ 7,138 shares)

$ 16.40

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.

Annual Report

Statement of Operations

 

Year ended June 30, 2014

 

 

 

Investment Income

 

 

Dividends

 

$ 64,598,075

Interest

 

3

Income from Fidelity Central Funds

 

117,273

Total income

 

64,715,351

 

 

 

Expenses

Management fee

$ 13,636,133

Transfer agent fees

5,746,426

Distribution and service plan fees

284,809

Accounting and security lending fees

887,108

Custodian fees and expenses

71,971

Independent trustees' compensation

12,515

Registration fees

231,217

Audit

55,093

Legal

11,095

Interest

2,824

Miscellaneous

22,803

Total expenses before reductions

20,961,994

Expense reductions

(36,926)

20,925,068

Net investment income (loss)

43,790,283

Realized and Unrealized Gain (Loss)

Net realized gain (loss) on:

Investment securities:

 

 

Unaffiliated issuers

143,561,768

Foreign currency transactions

(8,194)

Total net realized gain (loss)

 

143,553,574

Change in net unrealized appreciation (depreciation) on:

Investment securities

457,006,470

Assets and liabilities in foreign currencies

12,169

Total change in net unrealized appreciation (depreciation)

 

457,018,639

Net gain (loss)

600,572,213

Net increase (decrease) in net assets resulting from operations

$ 644,362,496

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

Annual Report

Financial Statements - continued

Statement of Changes in Net Assets

 

Year ended
June 30,
2014

Year ended
June 30,
2013

Increase (Decrease) in Net Assets

 

 

Operations

 

 

Net investment income (loss)

$ 43,790,283

$ 35,288,813

Net realized gain (loss)

143,553,574

104,876,418

Change in net unrealized appreciation (depreciation)

457,018,639

321,854,450

Net increase (decrease) in net assets resulting
from operations

644,362,496

462,019,681

Distributions to shareholders from net investment income

(35,705,336)

(27,575,489)

Distributions to shareholders from net realized gain

(41,770,691)

-

Total distributions

(77,476,027)

(27,575,489)

Share transactions - net increase (decrease)

513,653,074

652,982,078

Total increase (decrease) in net assets

1,080,539,543

1,087,426,270

 

 

 

Net Assets

Beginning of period

2,564,772,677

1,477,346,407

End of period (including undistributed net investment income of $25,146,366 and undistributed net investment income of $17,061,419, respectively)

$ 3,645,312,220

$ 2,564,772,677

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

Annual Report

Financial Highlights - Class A

Years ended June 30,

2014

2013

2012

2011

2010

Selected Per-Share Data

 

 

 

 

 

Net asset value, beginning of period

$ 13.51

$ 11.05

$ 10.37

$ 8.07

$ 7.20

Income from Investment Operations

 

 

 

 

 

Net investment income (loss) C

  .18

  .17

  .13

  .07

  .06

Net realized and unrealized gain (loss)

  3.00

  2.43

  .64

  2.28

  .92

Total from investment operations

  3.18

  2.60

  .77

  2.35

  .98

Distributions from net investment income

  (.16)

  (.14)

  (.09)

  (.05)

  (.11)

Distributions from net realized gain

  (.21)

  -

  -

  -

  -

Total distributions

  (.37)

  (.14)

  (.09)

  (.05)

  (.11)

Net asset value, end of period

$ 16.32

$ 13.51

$ 11.05

$ 10.37

$ 8.07

Total ReturnA, B

  23.88%

  23.78%

  7.57%

  29.23%

  13.65%

Ratios to Average Net Assets D, F

 

 

 

 

 

Expenses before reductions

  .96%

  .98%

  1.02%

  1.06%

  1.10%

Expenses net of fee waivers, if any

  .96%

  .98%

  1.02%

  1.06%

  1.10%

Expenses net of all reductions

  .96%

  .98%

  1.02%

  1.06%

  1.10%

Net investment income (loss)

  1.19%

  1.37%

  1.28%

  .76%

  .66%

Supplemental Data

 

 

 

 

 

Net assets, end of period (000 omitted)

$ 77,335

$ 20,336

$ 8,527

$ 4,169

$ 2,238

Portfolio turnover rateE

  28%

  29%

  57%

  53%

  97%

A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.

B Total returns do not include the effect of the sales charges.

C Calculated based on average shares outstanding during the period.

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 Amount does not include the portfolio activity 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.

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

Annual Report

Financial Highlights - Class T

Years ended June 30,

2014

2013

2012

2011

2010

Selected Per-Share Data

 

 

 

 

 

Net asset value, beginning of period

$ 13.51

$ 11.05

$ 10.38

$ 8.07

$ 7.20

Income from Investment Operations

 

 

 

 

 

Net investment income (loss) C

  .14

  .14

  .10

  .05

  .03

Net realized and unrealized gain (loss)

  3.00

  2.43

  .64

  2.29

  .93

Total from investment operations

  3.14

  2.57

  .74

  2.34

  .96

Distributions from net investment income

  (.13)

  (.11)

  (.07)

  (.03)

  (.09)

Distributions from net realized gain

  (.21)

  -

  -

  -

  -

Total distributions

  (.34)

  (.11)

  (.07)

  (.03)

  (.09)

Net asset value, end of period

$ 16.31

$ 13.51

$ 11.05

$ 10.38

$ 8.07

Total ReturnA, B

  23.54%

  23.44%

  7.19%

  29.08%

  13.32%

Ratios to Average Net Assets D, F

 

 

 

 

 

Expenses before reductions

  1.22%

  1.26%

  1.32%

  1.32%

  1.36%

Expenses net of fee waivers, if any

  1.22%

  1.26%

  1.32%

  1.32%

  1.36%

Expenses net of all reductions

  1.22%

  1.26%

  1.32%

  1.32%

  1.35%

Net investment income (loss)

  .92%

  1.09%

  .98%

  .50%

  .41%

Supplemental Data

 

 

 

 

 

Net assets, end of period (000 omitted)

$ 15,728

$ 8,377

$ 2,293

$ 1,682

$ 1,073

Portfolio turnover rateE

  28%

  29%

  57%

  53%

  97%

A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.

B Total returns do not include the effect of the sales charges.

C Calculated based on average shares outstanding during the period.

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 Amount does not include the portfolio activity 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.

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

Annual Report

Financial Highlights - Class B

Years ended June 30,

2014

2013

2012

2011

2010

Selected Per-Share Data

 

 

 

 

 

Net asset value, beginning of period

$ 13.43

$ 10.97

$ 10.30

$ 8.02

$ 7.19

Income from Investment Operations

 

 

 

 

 

Net investment income (loss) C

  .06

  .07

  .05

  - H

  (.01)

Net realized and unrealized gain (loss)

  2.98

  2.43

  .63

  2.28

  .92

Total from investment operations

  3.04

  2.50

  .68

  2.28

  .91

Distributions from net investment income

  (.04)

  (.04)

  (.01)

  -

  (.08)

Distributions from net realized gain

  (.21)

  -

  -

  -

  -

Total distributions

  (.26) I

  (.04)

  (.01)

  -

  (.08)

Net asset value, end of period

$ 16.21

$ 13.43

$ 10.97

$ 10.30

$ 8.02

Total ReturnA, B

  22.82%

  22.83%

  6.62%

  28.43%

  12.60%

Ratios to Average Net Assets D, G

 

 

 

 

 

Expenses before reductions

  1.78%

  1.80%

  1.82%

  1.83%

  1.88%

Expenses net of fee waivers, if any

  1.78%

  1.80%

  1.82%

  1.83%

  1.88%

Expenses net of all reductions

  1.78%

  1.80%

  1.81%

  1.82%

  1.88%

Net investment income (loss)

  .37%

  .55%

  .49%

  .00% F

  (.12)%

Supplemental Data

 

 

 

 

 

Net assets, end of period (000 omitted)

$ 919

$ 716

$ 704

$ 764

$ 667

Portfolio turnover rateE

  28%

  29%

  57%

  53%

  97%

A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.

B Total returns do not include the effect of the contingent deferred sales charge.

C Calculated based on average shares outstanding during the period.

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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

F Amount represents less than .01%.

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 represents less than $.01 per share.

I Total distributions of $.26 per share is comprised of distributions from net investment income of $.044 and distributions from net realized gain of $.213 per share.

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

Annual Report

Financial Highlights - Class C

Years ended June 30,

2014

2013

2012

2011

2010

Selected Per-Share Data

 

 

 

 

 

Net asset value, beginning of period

$ 13.38

$ 10.93

$ 10.28

$ 8.01

$ 7.16

Income from Investment Operations

 

 

 

 

 

Net investment income (loss) C

  .06

  .07

  .05

  - G

  (.01)

Net realized and unrealized gain (loss)

  2.97

  2.42

  .64

  2.27

  .92

Total from investment operations

  3.03

  2.49

  .69

  2.27

  .91

Distributions from net investment income

  (.08)

  (.04)

  (.04)

  -

  (.06)

Distributions from net realized gain

  (.21)

  -

  -

  -

  -

Total distributions

  (.29)

  (.04)

  (.04)

  -

  (.06)

Net asset value, end of period

$ 16.12

$ 13.38

$ 10.93

$ 10.28

$ 8.01

Total ReturnA, B

  22.90%

  22.83%

  6.74%

  28.34%

  12.72%

Ratios to Average Net Assets D, F

 

 

 

 

 

Expenses before reductions

  1.71%

  1.75%

  1.79%

  1.81%

  1.86%

Expenses net of fee waivers, if any

  1.71%

  1.75%

  1.79%

  1.81%

  1.86%

Expenses net of all reductions

  1.71%

  1.75%

  1.79%

  1.81%

  1.85%

Net investment income (loss)

  .43%

  .59%

  .51%

  .01%

  (.10)%

Supplemental Data

 

 

 

 

 

Net assets, end of period (000 omitted)

$ 16,600

$ 7,938

$ 2,845

$ 1,913

$ 807

Portfolio turnover rateE

  28%

  29%

  57%

  53%

  97%

A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.

B Total returns do not include the effect of the contingent deferred sales charge.

C Calculated based on average shares outstanding during the period.

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 Amount does not include the portfolio activity 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 represents less than $.01 per share.

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

Annual Report

Financial Highlights - Mega Cap Stock

Years ended June 30,

2014

2013

2012

2011

2010

Selected Per-Share Data

 

 

 

 

 

Net asset value, beginning of period

$ 13.60

$ 11.11

$ 10.43

$ 8.11

$ 7.23

Income from Investment Operations

 

 

 

 

 

Net investment income (loss) B

  .22

  .20

  .16

  .10

  .08

Net realized and unrealized gain (loss)

  3.02

  2.46

  .64

  2.29

  .93

Total from investment operations

  3.24

  2.66

  .80

  2.39

  1.01

Distributions from net investment income

  (.19)

  (.17)

  (.12)

  (.07)

  (.13)

Distributions from net realized gain

  (.21)

  -

  -

  -

  -

Total distributions

  (.40)

  (.17)

  (.12)

  (.07)

  (.13)

Net asset value, end of period

$ 16.44

$ 13.60

$ 11.11

$ 10.43

$ 8.11

Total ReturnA

  24.18%

  24.17%

  7.83%

  29.61%

  13.93%

Ratios to Average Net Assets C, E

 

 

 

 

 

Expenses before reductions

  .68%

  .70%

  .76%

  .79%

  .81%

Expenses net of fee waivers, if any

  .68%

  .70%

  .76%

  .79%

  .80%

Expenses net of all reductions

  .68%

  .70%

  .75%

  .78%

  .79%

Net investment income (loss)

  1.47%

  1.64%

  1.55%

  1.04%

  .96%

Supplemental Data

 

 

 

 

 

Net assets, end of period (000 omitted)

$ 2,860,197

$ 2,214,592

$ 1,287,144

$ 785,233

$ 500,407

Portfolio turnover rateD

  28%

  29%

  57%

  53%

  97%

A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.

B Calculated based on average shares outstanding during the period.

C 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.

D Amount does not include the portfolio activity 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.

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

Annual Report

Financial Highlights - Institutional Class

Years ended June 30,

2014

2013

2012

2011

2010

Selected Per-Share Data

 

 

 

 

 

Net asset value, beginning of period

$ 13.55

$ 11.08

$ 10.40

$ 8.09

$ 7.22

Income from Investment Operations

 

 

 

 

 

Net investment income (loss) B

  .22

  .20

  .16

  .10

  .08

Net realized and unrealized gain (loss)

  3.02

  2.44

  .63

  2.30

  .92

Total from investment operations

  3.24

  2.64

  .79

  2.40

  1.00

Distributions from net investment income

  (.18)

  (.17)

  (.11)

  (.09)

  (.13)

Distributions from net realized gain

  (.21)

  -

  -

  -

  -

Total distributions

  (.40) F

  (.17)

  (.11)

  (.09)

  (.13)

Net asset value, end of period

$ 16.39

$ 13.55

$ 11.08

$ 10.40

$ 8.09

Total ReturnA

  24.23%

  24.06%

  7.77%

  29.74%

  13.89%

Ratios to Average Net Assets C, E

 

 

 

 

 

Expenses before reductions

  .71%

  .74%

  .78%

  .79%

  .88%

Expenses net of fee waivers, if any

  .71%

  .74%

  .78%

  .79%

  .88%

Expenses net of all reductions

  .71%

  .74%

  .77%

  .78%

  .87%

Net investment income (loss)

  1.43%

  1.61%

  1.53%

  1.04%

  .88%

Supplemental Data

 

 

 

 

 

Net assets, end of period (000 omitted)

$ 674,416

$ 312,814

$ 175,833

$ 136,768

$ 1,568

Portfolio turnover rateD

  28%

  29%

  57%

  53%

  97%

A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.

B Calculated based on average shares outstanding during the period.

C 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.

D Amount does not include the portfolio activity 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 Total distributions of $.40 per share is comprised of distributions from net investment income of $.182 and distributions from net realized gain of $.213 per share.

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

Annual Report

Financial Highlights - Class Z

Year ended June 30,

2014 G

Selected Per-Share Data

 

Net asset value, beginning of period

$ 14.31

Income from Investment Operations

 

Net investment income (loss) D

  .21

Net realized and unrealized gain (loss)

  2.20

Total from investment operations

  2.41

Distributions from net investment income

  (.10)

Distributions from net realized gain

  (.21)

Total distributions

  (.32) I

Net asset value, end of period

$ 16.40

Total ReturnB, C

  17.06%

Ratios to Average Net Assets E, H

 

Expenses before reductions

  .54%A

Expenses net of fee waivers, if any

  .54%A

Expenses net of all reductions

  .54%A

Net investment income (loss)

  1.59% A

Supplemental Data

 

Net assets, end of period (000 omitted)

$ 117

Portfolio turnover rateF

  28% A

A Annualized

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

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

D Calculated based on average shares outstanding during the period.

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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

G For the period August 13, 2013 (commencement of sale of shares) to June 30, 2014.

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. Expense ratios before reductions for start-up periods may not be representative of longer-term operation periods. 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 Total distributions of $.32 per share is comprised of distributions from net investment income of $.104 and distributions from net realized gain of $.213 per share.

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

Annual Report


Notes to Financial Statements

For the period ended June 30, 2014

1. Organization.

Fidelity Mega Cap Stock Fund (the Fund) is a fund of Fidelity Hastings Street Trust (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund commenced sale of Class Z shares on August 13, 2013. The Fund offers Class A, Class T, Class C, Mega Cap Stock, Institutional Class and Class Z shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.

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 .01%.

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:

Annual Report

Notes to Financial Statements - continued

3. Significant Accounting Policies - continued

Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (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 Fidelity Management & Research Company (FMR) Fair Value Committee (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 is responsible for approving and reporting to the Board all fair value determinations.

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.

Annual Report

3. Significant Accounting Policies - continued

Investment Valuation - continued

Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of June 30, 2014 is included at the end of the Fund's Schedule of Investments.

Foreign Currency. The Fund 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 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. 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.

Annual Report

Notes to Financial Statements - continued

3. Significant Accounting Policies - continued

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.

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 June 30, 2014, 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. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.

Distributions are 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 foreign currency transactions, equity-debt classifications, capital loss carryforwards, and losses deferred due to wash sales.

Annual Report

3. Significant Accounting Policies - continued

Income Tax Information and Distributions to Shareholders - continued

The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:

Gross unrealized appreciation

$ 868,594,923

Gross unrealized depreciation

(16,059,631)

Net unrealized appreciation (depreciation) on securities and other investments

$ 852,535,292

 

 

Tax Cost

$ 2,823,608,973

The tax-based components of distributable earnings as of period end were as follows:

Undistributed ordinary income

$ 28,109,862

Undistributed long-term capital gain

$ 78,650,493

Net unrealized appreciation (depreciation)

$ 852,542,261

The tax character of distributions paid was as follows:

 

June 30, 2014

June 30, 2013

Ordinary Income

$ 36,293,656

$ 27,575,489

Long-term Capital Gains

41,182,371

Total

$ 77,476,027

$ 27,575,489

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

4. Purchases and Sales of Investments.

Purchases and sales of securities, other than short-term securities, aggregated $1,277,032,508 and $853,056,484, respectively.

5. Fees and Other Transactions with Affiliates.

Management Fee. Fidelity Management & Research Company (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 .20% of the Fund's

Annual Report

Notes to Financial Statements - continued

5. Fees and Other Transactions with Affiliates - continued

Management Fee - continued

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 the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of 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 .45% 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%

$ 87,546

$ 3,362

Class T

.25%

.25%

63,304

232

Class B

.75%

.25%

9,175

6,896

Class C

.75%

.25%

124,784

55,523

 

 

 

$ 284,809

$ 66,013

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, Class B, 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.

Annual Report

5. Fees and Other Transactions with Affiliates - continued

Sales Load - continued

For the period, sales charge amounts retained by FDC were as follows:

 

Retained
by FDC

Class A

$ 20,530

Class T

3,915

Class B*

699

Class C*

897

 

$ 26,041

* 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, except for Class Z. FIIOC receives an asset-based fee of Class Z's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.

For the period, transfer agent fees for each class were as follows:

 

Amount

% of
Average
Net Assets

Class A

$ 74,123

.21

Class T

28,367

.22

Class B

2,566

.28

Class C

26,868

.22

Mega Cap Stock

4,669,765

.18

Institutional Class

944,693

.22

Class Z

44

.05*

 

$ 5,746,426

 

* Annualized

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.

Annual Report

Notes to Financial Statements - continued

5. Fees and Other Transactions with Affiliates - continued

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 $17,995 for the period.

Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR 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. The 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

Borrower

$ 9,205,303

.30%

$ 2,541

6. Committed Line of Credit.

The Fund participates with other funds managed by the investment adviser FMR 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 $5,038 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. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. 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. 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

Annual Report

7. Security Lending - continued

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 $89,556. During the period, there were no securities loaned to FCM.

8. Bank Borrowings.

The Fund is permitted to have bank borrowings for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity requirements. The Fund has established borrowing arrangements with certain banks. The interest rate on the borrowings is the bank's base rate, as revised from time to time. The average loan balance during the period for which loans were outstanding amounted to $8,939,500. The weighted average interest rate was .57%. The interest expense amounted to $283 under the bank borrowing program. At period end, there were no bank borrowings outstanding.

9. Expense Reductions.

The investment adviser voluntarily agreed to reimburse each class 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 were in reimbursement during the period:

 

Reimbursement

Class A

$ 125

Class T

56

Class B

4

Class C

50

Mega Cap Stock

11,993

Institutional Class

1,697

 

$ 13,925

In addition, the investment adviser reimbursed a portion of the Fund's operating expenses during the period in the amount of $6,711.

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 $16,290 for the period.

Annual Report

Notes to Financial Statements - continued

10. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

Years ended June 30,

2014 A

2013

From net investment income

 

 

Class A

$ 295,572

$ 137,534

Class T

98,011

36,492

Class B

2,617

2,304

Class C

56,227

13,133

Mega Cap Stock

30,989,923

23,359,421

Institutional Class

4,262,259

4,026,605

Class Z

727

-

Total

$ 35,705,336

$ 27,575,489

From net realized gain

 

 

Class A

$ 453,140

$ -

Class T

181,208

-

Class B

13,697

-

Class C

173,595

-

Mega Cap Stock

35,870,113

-

Institutional Class

5,077,450

-

Class Z

1,488

-

Total

$ 41,770,691

$ -

A Distributions for Class Z are for the period August 13, 2013 (commencement of sale of shares) to June 30, 2014.

11. Share Transactions.

Transactions for each class of shares were as follows:

 

Shares

Dollars

Years ended June 30,

2014 A

2013

2014 A

2013

Class A

 

 

 

 

Shares sold

3,913,806

1,001,677

$ 60,286,671

$ 12,394,211

Reinvestment of distributions

45,968

11,084

673,798

127,952

Shares redeemed

(725,328)

(279,053)

(11,077,893)

(3,495,724)

Net increase (decrease)

3,234,446

733,708

$ 49,882,576

$ 9,026,439

Class T

 

 

 

 

Shares sold

595,712

517,456

$ 8,877,747

$ 6,404,547

Reinvestment of distributions

18,863

3,084

276,847

35,826

Shares redeemed

(270,157)

(107,959)

(4,055,631)

(1,368,248)

Net increase (decrease)

344,418

412,581

$ 5,098,963

$ 5,072,125

Annual Report

11. Share Transactions - continued

 

Shares

Dollars

Years ended June 30,

2014 A

2013

2014 A

2013

Class B

 

 

 

 

Shares sold

27,198

9,952

$ 400,691

$ 125,476

Reinvestment of distributions

1,081

196

15,861

2,261

Shares redeemed

(24,976)

(20,917)

(377,365)

(255,293)

Net increase (decrease)

3,303

(10,769)

$ 39,187

$ (127,556)

Class C

 

 

 

 

Shares sold

504,584

448,373

$ 7,460,222

$ 5,664,292

Reinvestment of distributions

15,230

988

221,741

11,494

Shares redeemed

(83,515)

(116,347)

(1,262,211)

(1,448,415)

Net increase (decrease)

436,299

333,014

$ 6,419,752

$ 4,227,371

Mega Cap Stock

 

 

 

 

Shares sold

53,817,396

84,998,537

$ 817,611,772

$ 1,035,668,817

Reinvestment of distributions

4,142,626

1,836,891

61,008,516

21,294,763

Shares redeemed

(46,852,676)

(39,801,746)

(705,756,204)

(498,490,773)

Net increase (decrease)

11,107,346

47,033,682

$ 172,864,084

$ 558,472,807

Institutional Class

 

 

 

 

Shares sold

19,497,644

11,389,839

$ 301,200,514

$ 129,734,591

Reinvestment of distributions

626,527

338,467

9,201,440

3,911,623

Shares redeemed

(2,047,800)

(4,517,962)

(31,155,657)

(57,335,322)

Net increase (decrease)

18,076,371

7,210,344

$ 279,246,297

$ 76,310,892

Class Z

 

 

 

 

Shares sold

6,988

-

$ 100,000

$ -

Reinvestment of distributions

150

-

2,215

-

Net increase (decrease)

7,138

-

$ 102,215

$ -

A Share transactions for Class Z are for the period August 13, 2013 (commencement of sale of shares) to June 30, 2014.

12. 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.

At the end of the period, Strategic Advisers U.S. Opportunity Fund was the owner of record of approximately 11% of the total outstanding shares of the Fund.

Annual Report


Report of Independent Registered Public Accounting Firm

To the Trustees of Fidelity Hastings Street Trust and the Shareholders of Fidelity Mega Cap Stock Fund:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Mega Cap Stock Fund (a fund of Fidelity Hastings Street Trust) at June 30, 2014, 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 periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity Mega Cap Stock Fund's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements 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 are free of material misstatement. An audit 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, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at June 30, 2014 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

Boston, Massachusetts

August 12, 2014

Annual Report


Trustees and Officers

The Trustees, Member of the Advisory Board, 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. Except for James C. Curvey, each of the Trustees oversees 173 funds. Mr. Curvey oversees 397 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 (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. The officers and Advisory Board Member hold office without limit in time, except that any officer and 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.

Experience, Skills, Attributes, and Qualifications of the Fund's 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.

Annual Report

Board Structure and Oversight Function. James C. Curvey is an interested person (as defined in the 1940 Act) 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. Ned C. Lautenbach 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 equity and high income funds and another Board oversees Fidelity's investment-grade bond, money market, and asset allocation funds. The asset allocation funds may invest in Fidelity funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity funds overseen by each Board.

The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. For example, a working group comprised of Independent Trustees and FMR has worked and continues to work to review the Fidelity funds' valuation-related activities, reporting and risk management. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of FMR's risk management program for the Fidelity funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Fund's Trustees."

Annual Report

Trustees and Officers - continued

The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.

Interested Trustees*:

Correspondence intended for each 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+

James C. Curvey (1935)

Year of Election or Appointment: 2007

Trustee

Chairman of the Board of Trustees

 

Mr. Curvey also serves as Trustee of other Fidelity funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (2009-present), and Vice Chairman (2007-present) and Director of FMR LLC. In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the Trustees of Villanova University. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (2009-2014), a Director of FMR (2007-2014), a Director of FMR Co., Inc. (2007-2014) and was the Vice Chairman (2006-2007) and Director (2000-2007) of FMR Corp.

Charles S. Morrison (1960)

Year of Election or Appointment: 2014

Trustee

 

Mr. Morrison also serves as Trustee of other funds. He serves as President, Asset Management (2014-present) and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.

* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR.

+ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for the fund.

Annual Report

Trustees and Officers - continued

Independent Trustees:

Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.

Dennis J. Dirks (1948)

Year of Election or Appointment: 2005

Trustee

 

Mr. Dirks also serves as Trustee of other Fidelity funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), and as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008). Mr. Dirks is a member of the Independent Directors Council (IDC) Governing Council (2010-present) and Board of Directors for The Brookville Center for Children's Services, Inc. (2009-present).

Alan J. Lacy (1953)

Year of Election or Appointment: 2008

Trustee

 

Mr. Lacy also serves as Trustee of other Fidelity funds. Mr. Lacy serves as Senior Adviser (2007-present) of Oak Hill Capital Partners, L.P. (private equity). Mr. Lacy also served as Chief Executive Officer (2000-2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation and Sears, Roebuck and Co. (retail). In addition, Mr. Lacy serves as a member of the Board of Directors of Dave & Buster's Entertainment, Inc. (restaurant and entertainment complexes, 2010-present), Earth Fare, Inc. (retail grocery, 2012-present), The Hillman Companies, Inc. (hardware wholesalers, 2010-present), and Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). Mr. Lacy is a member of the Board of Trustees of The National Parks Conservation Association (2006-present). Previously, Mr. Lacy served as Chairman of the Board of Trustees of the National Parks Conservation Association (2008-2011) and as a member of the Board of Directors for the Western Union Company (global money transfer, 2006-2011).

Name, Year of Birth; Principal Occupations and Other Relevant Experience+

Ned C. Lautenbach (1944)

Year of Election or Appointment: 2000

Trustee

Chairman of the Independent Trustees

 

Mr. Lautenbach also serves as Trustee of other Fidelity funds. Mr. Lautenbach currently serves as the Lead Director of the Eaton Corporation Board of Directors (diversified industrial, 1997-present). Mr. Lautenbach is Chairman of the Board of Directors of the Philharmonic Center for the Arts in Naples, Florida (2012-present) and a member of the Council on Foreign Relations (1994-present). Previously, Mr. Lautenbach was a Partner/Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007).

Joseph Mauriello (1944)

Year of Election or Appointment: 2008

Trustee

 

Mr. Mauriello also serves as Trustee of other Fidelity funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).

Robert W. Selander (1950)

Year of Election or Appointment: 2011

Trustee

 

Mr. Selander also serves as Trustee of other Fidelity funds. Previously, Mr. Selander served as a Member of the Advisory Board of other Fidelity funds (2011), and Executive Vice Chairman (2010), Chief Executive Officer (2009-2010), and President and Chief Executive Officer (1997-2009) of Mastercard, Inc.

Cornelia M. Small (1944)

Year of Election or Appointment: 2005

Trustee

 

Ms. Small also serves as Trustee of other Fidelity funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.

William S. Stavropoulos (1939)

Year of Election or Appointment: 2001

Trustee

Vice Chairman of the Independent Trustees

 

Mr. Stavropoulos also serves as Trustee of other Fidelity funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and Maersk Inc. (industrial conglomerate), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of the Naples Philharmonic Center for the Arts. Previously, Mr. Stavropoulos served as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).

David M. Thomas (1949)

Year of Election or Appointment: 2008

Trustee

 

Mr. Thomas also serves as Trustee of other Fidelity funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), and as a member of the Board of Directors of Interpublic Group of Companies, Inc. (marketing communication, 2004-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).

+ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for the fund.

Advisory Board Member and Officers:

Correspondence intended for each officer and Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.

Name, Year of Birth; Principal Occupation

Peter S. Lynch (1944)

Year of Election or Appointment: 2003

Member of the Advisory Board

 

Mr. Lynch also serves as Member of the Advisory Board of other Fidelity funds. Mr. Lynch is Vice Chairman and a Director of FMR and FMR Co., Inc. In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).

Elizabeth Paige Baumann (1968)

Year of Election or Appointment: 2012

Anti-Money Laundering (AML) Officer

 

Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer of FMR LLC (2012-present) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as Vice President and Deputy Anti-Money Laundering Officer (2007-2012).

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 (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. Mr. Davis is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (2003-2010).

Adrien E. Deberghes (1967)

Year of Election or Appointment: 2008

Deputy Treasurer

 

Mr. Deberghes also serves as an officer of other funds. He 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).

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. (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: 2008

Secretary and Chief Legal Officer (CLO)

 

Mr. Goebel serves as Secretary and CLO of other funds. Mr. Goebel also serves as Secretary of Fidelity SelectCo, LLC (2013-present), Fidelity Investments Money Management, Inc. (FIMM) (2010-present) and Fidelity Research and Analysis Company (FRAC) (2010-present); General Counsel, Secretary, and Senior Vice President of FMR (2008-present) and FMR Co., Inc. (2008-present); Chief Legal Officer of Fidelity Management & Research (Hong Kong) Limited (2008-present); and Assistant Secretary of Fidelity Management & Research (Japan) Inc. (2008-present) and Fidelity Management & Research (U.K.) Inc. (2008-present). Previously, Mr. Goebel served as Secretary and CLO of other Fidelity funds (2008-2013), 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). Mr. Goebel has been employed by FMR LLC or an affiliate since 2001.

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 President of FMR's Equity Division (2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager.

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 FMR's Program Management Group (2010-2013), and Vice President of Valuation Oversight (2008-2010).

Melissa M. Reilly (1971)

Year of Election or Appointment: 2014

Vice President of certain Equity Funds

 

Ms. Reilly also serves as Vice President of other funds. Ms. Reilly is an employee of Fidelity Investments (2004-present).

Kenneth B. Robins (1969)

Year of Election or Appointment: 2008

President and Treasurer

 

Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (2013-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served in other fund officer roles.

Stephen Sadoski (1971)

Year of Election or Appointment: 2012

Deputy Treasurer

 

Mr. Sadoski also serves as Deputy Treasurer of other funds. He is an employee of Fidelity Investments (2012-present) and has served in another fund officer role. Prior to joining Fidelity Investments, Mr. Sadoski served as an assistant chief accountant in the Division of Investment Management of the Securities and Exchange Commission (SEC) (2009-2012) and as a senior manager at Deloitte & Touche LLP (1997-2009).

Stacie M. Smith (1974)

Year of Election or Appointment: 2013

Deputy 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).

Renee Stagnone (1975)

Year of Election or Appointment: 2013

Deputy Treasurer

 

Ms. Stagnone also serves as Deputy Treasurer of other funds. Ms. Stagnone is an employee of Fidelity Investments.

Linda J. Wondrack (1964)

Year of Election or Appointment: 2014

Chief Compliance Officer

 

Ms. Wondrack also serves as Chief Compliance Officer of other funds. Ms. Wondrack is Executive Vice President and head of the Ethics Office and Asset Management Compliance for Fidelity Investments (2012-present). Ms. Wondrack also serves as Chief Compliance Officer of Fidelity SelectCo, LLC (2014-present); Chief Compliance Officer of Impresa Management LLC (2013-present); and Chief Compliance Officer of FMR Co., Inc., Fidelity Investments Money Management, Inc., Fidelity Management & Research (Japan) Inc., Fidelity Management & Research (U.K.) Inc., Fidelity Management & Research (Hong Kong), Fidelity Management & Research Company, Pyramis Global Advisors, LLC, and Strategic Advisers, Inc., Ballyrock Investment Advisors LLC, and Northern Neck Investors LLC (2012-present). Previously, Ms. Wondrack served as Senior Vice President and Chief Compliance Officer for Columbia Management Investment Advisers, LLC (2005-2012); Chief Compliance Officer for certain funds within the Columbia Family of Funds (2007-2012); and Senior Vice President of Compliance Risk Management at Bank of America (2005-2010).

Joseph F. Zambello (1957)

Year of Election or Appointment: 2011

Deputy Treasurer

 

Mr. Zambello also serves as Deputy Treasurer of other funds. Mr. Zambello is an employee of Fidelity Investments. Previously, Mr. Zambello served as Vice President of FMR's Program Management Group (2009-2011) and Vice President of the Transfer Agent Oversight Group (2005-2009).

Annual Report


Distributions (Unaudited)

The Board of Trustees of Fidelity Mega Cap Stock 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

Mega Cap Stock

08/11/14

08/08/14

$0.107

$0.341

The fund hereby designates as a capital gain dividend with respect to the taxable year ended June 30, 2014, $119,836,862, or, if subsequently determined to be different, the net capital gain of such year.

Mega Cap Stock designates 100% of the dividends distributed during the fiscal year as qualifying for the dividends-received deduction for corporate shareholders.

Mega Cap Stock designates 100% of the dividends distributed during the fiscal year as amounts which may be taken into account as a dividend for purposes of the maximum rate under Section 1(h)(11) of the Internal Revenue Code.

The fund will notify shareholders in January 2015 of amounts for use in preparing 2014 income tax returns.

Annual Report

Investment Adviser

Fidelity Management & Research Company

Boston, MA

Investment Sub-Advisers

FMR Co., Inc.

Fidelity Management & Research
(U.K.) Inc.

Fidelity Management & Research
(Hong Kong) Limited

Fidelity Management & Research
(Japan) Inc.

General Distributor

Fidelity Distributors Corporation

Smithfield, RI

Transfer and Service Agents

Fidelity Investments Institutional
Operations Company, Inc.

Boston, MA

Fidelity Service Company, Inc.

Boston, MA

Custodian

JPMorgan Chase Bank

New York, NY

(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St., Boston, MA 02210
www.fidelity.com

The Fidelity Telephone Connection

Mutual Fund 24-Hour Service

Exchanges/Redemptions
and Account Assistance 1-800-544-6666

Product Information 1-800-544-6666

Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)

TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)

Fidelity Automated Service
Telephone (FAST®) hhh1706678
1-800-544-5555

hhh1706678
Automated line for quickest service

GII-UANN-0814
1.787733.111

(Fidelity Investment logo)(registered trademark)

Fidelity Advisor®

Mega Cap Stock

Fund - Class A, Class T, Class B
and Class C

Annual Report

June 30, 2014

(Fidelity Cover Art)

Class A, Class T, Class B,
and Class C are classes of
Fidelity® Mega Cap Stock Fund


Contents

Performance

(Click Here)

How the fund has done over time.

Management's Discussion of Fund Performance

(Click Here)

The Portfolio Manager's review of fund performance and strategy.

Shareholder Expense Example

(Click Here)

An example of shareholder expenses.

Investment Changes

(Click Here)

A summary of major shifts in the fund's investments over the past six months.

Investments

(Click Here)

A complete list of the fund's investments with their market values.

Financial Statements

(Click Here)

Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights.

Notes

(Click Here)

Notes to the financial statements.

Report of Independent Registered Public Accounting Firm

(Click Here)

 

Trustees and Officers

(Click Here)

 

Distributions

(Click Here)

 

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. © 2014 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.advisor.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.

Annual Report


Performance: The Bottom Line

Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' 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 $10,000 table and the fund's 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. Returns reflect the conversion of Class B shares to Class A shares after a maximum of seven years.

Average Annual Total Returns

Periods ended June 30, 2014

Past 1
year

Past 5
years

Past 10
years

  Class A (incl. 5.75% sales charge) A, E

16.76%

17.96%

7.40%

  Class T (incl. 3.50% sales charge) B, E

19.22%

18.20%

7.47%

  Class B (incl. contingent deferred sales charge) C, E

17.82%

18.19%

7.49%

  Class C (incl. contingent deferred sales charge) D, E

21.90%

18.44%

7.52%

A Class A shares bear a 0.25% 12b-1 fee. The initial offering of Class A shares took place on February 5, 2008. Returns prior to February 5, 2008, are those of Fidelity® Mega Cap Stock Fund, the original class of the fund, which has no 12b-1 fee. Had Class A's 12b-1 fee been reflected, returns prior to February 5, 2008, would have been lower.

B Class T shares bear a 0.50% 12b-1 fee. The initial offering of Class T shares took place on February 5, 2008. Returns prior to February 5, 2008, are those of Fidelity® Mega Cap Stock Fund, the original class of the fund, which has no 12b-1 fee. Had Class T's 12b-1 fee been reflected, returns prior to February 5, 2008, would have been lower.

C Class B shares bear a 1.00% 12b-1 fee. The initial offering of Class B shares took place on February 5, 2008. Returns prior to February 5, 2008, are those of Fidelity Mega Cap Stock Fund, the original class of the fund, which has no 12b-1 fee. Had Class B's 12b-1 fee been reflected, returns prior to February 5, 2008, would have been lower. Class B shares' contingent deferred sales charges included in the past one year, past five years, and past ten years total return figures are 5%, 2%, and 0%, respectively.

D Class C shares bear a 1.00% 12b-1 fee. The initial offering of Class C shares took place on February 5, 2008. Returns prior to February 5, 2008, are those of Fidelity Mega Cap Stock Fund, the original class of the fund, which has no 12b-1 fee. Had Class C's 12b-1 fee been reflected, returns prior to February 5, 2008, would have been lower. 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.

E Prior to December 1, 2007, the fund operated under certain different investment policies. The fund's historical performance may not represent its current investment policies.

Annual Report

$10,000 Over 10 Years

Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Mega Cap Stock Fund - Class A on June 30, 2004, 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. See footnote A on the previous page for additional information regarding the performance of Class A.

hhh1706734

Annual Report


Management's Discussion of Fund Performance

Market Recap: Despite intermittent volatility driven by geopolitical concerns, stocks posted a series of new highs during the 12 months ending June 30, 2014, amid a decidedly favorable environment for riskier assets. The S&P 500® Index rose 24.61% for the year, helped by a rise in consumer spending and the lowest unemployment rate since 2008. The U.S. Federal Reserve balanced stimulus reductions with continued low interest rates, aiding a broad advance. All 10 S&P 500® market sectors gained, seven by more than 20%. Materials (+33%) was tops, as investors seemed to anticipate sustained economic improvement and renewed infrastructure build-outs. Information technology (+32%) benefited from large cash balances, rising dividends and stock buybacks, and a bevy of innovations. Health care (+30%) was aided by new drugs and predictable reimbursements. Conversely, the biggest laggard, telecommunication services (+5%), battled slow growth and stiff pricing competition. Across size and style segments: overall, investors showed some preference for large-cap stocks over small-caps and growth stocks over value, although market leadership rotated during the year. With the "risk-on" trade alive and well, the growth-oriented Nasdaq Composite Index® flourished, advancing 31.17%, while the blue-chip Dow Jones Industrial AverageSM delivered a more subdued 15.56% return.

Comments from Matthew Fruhan, Portfolio Manager of Fidelity Advisor® Mega Cap Stock Fund: For the year, the fund's Class A, Class T, Class B and Class C shares gained 23.88%, 23.54%, 22.82% and 22.90%, respectively (excluding sales charges). For comparison, the mega-cap proxy Russell Top 200® Index returned 24.69% and the S&P 500® Index advanced 24.61%. Relative to the Russell index, it hurt the most to overweight big-box retailer Target, which was among the fund's biggest holdings. The lingering effects of the firm's troubled expansion into Canada and a holiday-season credit breach continued to weigh on the stock, but this weak stretch allowed me to add notable exposure at a valuation I liked. In January, I established an underweight stake in Facebook, which detracted as shares of the social-media giant outperformed. Stock selection and an overweight in financials detracted, including investment banks JPMorgan Chase and Citigroup, both of which were among the fund's largest holdings. Stock selection in consumer staples helped, including drugstore chain Walgreen, while an underweight in the underperforming shares of IBM added value.

Comments from Matthew Fruhan, Portfolio Manager of Fidelity Advisor® Mega Cap Stock Fund: For the year, the fund's Institutional Class shares gained 24.23%. By comparison, the mega-cap proxy Russell Top 200® Index returned 24.69% and the S&P 500® Index advanced 24.61%. Relative to the Russell index, it hurt the most to overweight big-box retailer Target, which was among the fund's biggest holdings. The lingering effects of the firm's troubled expansion into Canada and a holiday-season credit breach continued to weigh on the stock, but this weak stretch allowed me to add notable exposure at a valuation I liked. In January, I established an underweight stake in Facebook, which detracted as shares of the social-media giant outperformed. Stock selection and an overweight in financials detracted, including investment banks JPMorgan Chase and Citigroup, both of which were among the fund's largest holdings. Stock selection in consumer staples also helped, including drugstore chain Walgreen, while an underweight in the underperforming shares of IBM added value.

Annual Report

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.

Annual Report


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 (January 1, 2014 to June 30, 2014).

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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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.

Annual Report

 

Annualized
Expense Ratio
B

Beginning
Account Value
January 1, 2014

Ending
Account Value
June 30, 2014

Expenses Paid
During Period
*
January 1, 2014
to June 30, 2014

Class A

.95%

 

 

 

Actual

 

$ 1,000.00

$ 1,064.60

$ 4.86

Hypothetical A

 

$ 1,000.00

$ 1,020.08

$ 4.76

Class T

1.21%

 

 

 

Actual

 

$ 1,000.00

$ 1,063.20

$ 6.19

Hypothetical A

 

$ 1,000.00

$ 1,018.79

$ 6.06

Class B

1.75%

 

 

 

Actual

 

$ 1,000.00

$ 1,060.20

$ 8.94

Hypothetical A

 

$ 1,000.00

$ 1,016.12

$ 8.75

Class C

1.70%

 

 

 

Actual

 

$ 1,000.00

$ 1,060.50

$ 8.69

Hypothetical A

 

$ 1,000.00

$ 1,016.36

$ 8.50

Mega Cap Stock

.68%

 

 

 

Actual

 

$ 1,000.00

$ 1,066.10

$ 3.48

Hypothetical A

 

$ 1,000.00

$ 1,021.42

$ 3.41

Institutional Class

.71%

 

 

 

Actual

 

$ 1,000.00

$ 1,065.70

$ 3.64

Hypothetical A

 

$ 1,000.00

$ 1,021.27

$ 3.56

Class Z

.53%

 

 

 

Actual

 

$ 1,000.00

$ 1,066.30

$ 2.72

Hypothetical A

 

$ 1,000.00

$ 1,022.17

$ 2.66

A 5% return per year before expenses

B Annualized expense ratio reflects expenses net of applicable fee waivers.

* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

Annual Report


Investment Changes (Unaudited)

Top Ten Stocks as of June 30, 2014

 

% of fund's
net assets

% of fund's net assets
6 months ago

Apple, Inc.

4.6

4.6

JPMorgan Chase & Co.

4.2

4.3

Microsoft Corp.

3.5

3.3

General Electric Co.

3.1

3.3

Chevron Corp.

2.6

2.2

Comcast Corp. Class A (special) (non-vtg.)

2.5

2.0

Verizon Communications, Inc.

2.3

1.2

Citigroup, Inc.

2.3

2.6

Bank of America Corp.

2.1

2.1

Target Corp.

2.0

1.9

 

29.2

Top Five Market Sectors as of June 30, 2014

 

% of fund's
net assets

% of fund's net assets
6 months ago

Information Technology

23.4

22.6

Financials

18.3

19.2

Energy

12.0

12.3

Consumer Staples

10.9

11.0

Health Care

9.9

11.1

Asset Allocation (% of fund's net assets)

As of June 30, 2014*

As of December 31, 2013**

hhh1706667

Stocks 98.2%

 

hhh1706667

Stocks 98.8%

 

hhh1706715

Convertible Securities 0.0%

 

hhh1706670

Convertible Securities 0.1%

 

hhh1706673

Short-Term Investments
and Net Other Assets (Liabilities) 1.8%

 

hhh1706673

Short-Term Investments
and Net Other Assets (Liabilities) 1.1%

 

* Foreign investments

10.7%

 

** Foreign investments

10.7%

 

hhh1706742

Annual Report


Investments June 30, 2014

Showing Percentage of Net Assets

Common Stocks - 98.2%

Shares

Value

CONSUMER DISCRETIONARY - 9.3%

Hotels, Restaurants & Leisure - 1.2%

McDonald's Corp.

152,600

$ 15,372,924

Yum! Brands, Inc.

357,600

29,037,120

 

44,410,044

Media - 4.6%

Comcast Corp. Class A (special) (non-vtg.) (d)

1,674,100

89,279,753

The Walt Disney Co.

169,000

14,490,060

Time Warner, Inc.

784,900

55,139,225

Twenty-First Century Fox, Inc. Class A

193,500

6,801,525

 

165,710,563

Multiline Retail - 2.0%

Target Corp.

1,261,300

73,092,335

Specialty Retail - 1.5%

Lowe's Companies, Inc.

1,149,600

55,169,304

TOTAL CONSUMER DISCRETIONARY

338,382,246

CONSUMER STAPLES - 10.9%

Beverages - 3.7%

Diageo PLC

500,803

15,950,125

PepsiCo, Inc.

432,905

38,675,733

SABMiller PLC

312,289

18,107,213

The Coca-Cola Co.

1,476,100

62,527,596

 

135,260,667

Food & Staples Retailing - 1.8%

CVS Caremark Corp.

389,100

29,326,467

Walgreen Co.

511,897

37,946,925

 

67,273,392

Food Products - 0.4%

Kellogg Co.

216,400

14,217,480

Household Products - 1.8%

Procter & Gamble Co.

818,700

64,341,633

Tobacco - 3.2%

British American Tobacco PLC sponsored ADR

519,400

61,850,152

Philip Morris International, Inc.

490,530

41,356,584

Reynolds American, Inc.

197,600

11,925,160

 

115,131,896

TOTAL CONSUMER STAPLES

396,225,068

Common Stocks - continued

Shares

Value

ENERGY - 12.0%

Energy Equipment & Services - 1.4%

National Oilwell Varco, Inc.

124,100

$ 10,219,635

Schlumberger Ltd.

344,800

40,669,160

 

50,888,795

Oil, Gas & Consumable Fuels - 10.6%

Anadarko Petroleum Corp.

76,400

8,363,508

Apache Corp.

412,505

41,506,253

BG Group PLC

1,699,000

35,909,707

Canadian Natural Resources Ltd.

568,600

26,126,665

Chevron Corp.

715,700

93,434,635

Exxon Mobil Corp.

358,271

36,070,724

Imperial Oil Ltd.

373,900

19,703,291

Occidental Petroleum Corp.

521,300

53,501,019

Suncor Energy, Inc.

948,700

40,453,446

The Williams Companies, Inc.

510,200

29,698,742

 

384,767,990

TOTAL ENERGY

435,656,785

FINANCIALS - 18.3%

Banks - 12.5%

Bank of America Corp.

5,029,700

77,306,489

Citigroup, Inc.

1,809,370

85,221,327

JPMorgan Chase & Co.

2,701,500

155,660,430

PNC Financial Services Group, Inc.

239,800

21,354,190

Standard Chartered PLC (United Kingdom)

1,566,208

32,004,076

U.S. Bancorp

732,800

31,744,896

Wells Fargo & Co.

1,022,730

53,754,689

 

457,046,097

Capital Markets - 3.1%

BlackRock, Inc. Class A

19,000

6,072,400

Charles Schwab Corp.

982,100

26,447,953

Goldman Sachs Group, Inc.

22,700

3,800,888

Morgan Stanley, Inc.

1,186,000

38,343,380

State Street Corp.

568,900

38,264,214

 

112,928,835

Diversified Financial Services - 0.1%

IntercontinentalExchange Group, Inc.

10,500

1,983,450

Insurance - 2.6%

AIA Group Ltd.

92,200

463,355

Common Stocks - continued

Shares

Value

FINANCIALS - continued

Insurance - continued

American International Group, Inc.

637,100

$ 34,772,918

Marsh & McLennan Companies, Inc.

213,580

11,067,716

MetLife, Inc.

849,095

47,175,718

Ping An Insurance (Group) Co. of China Ltd. (H Shares)

101,500

785,766

 

94,265,473

TOTAL FINANCIALS

666,223,855

HEALTH CARE - 9.9%

Biotechnology - 1.3%

Amgen, Inc.

318,690

37,723,335

Biogen Idec, Inc. (a)

34,200

10,783,602

 

48,506,937

Health Care Equipment & Supplies - 0.8%

Abbott Laboratories

465,100

19,022,590

Stryker Corp.

96,100

8,103,152

 

27,125,742

Health Care Providers & Services - 2.5%

Express Scripts Holding Co. (a)

318,907

22,109,822

McKesson Corp.

202,400

37,688,904

UnitedHealth Group, Inc.

400,048

32,703,924

 

92,502,650

Life Sciences Tools & Services - 0.3%

Thermo Fisher Scientific, Inc.

94,500

11,151,000

Pharmaceuticals - 5.0%

AbbVie, Inc.

243,900

13,765,716

GlaxoSmithKline PLC sponsored ADR

619,000

33,104,120

Johnson & Johnson

565,900

59,204,458

Merck & Co., Inc.

477,300

27,611,805

Novartis AG sponsored ADR

170,400

15,426,312

Sanofi SA

80,024

8,505,715

Teva Pharmaceutical Industries Ltd. sponsored ADR

487,200

25,539,024

 

183,157,150

TOTAL HEALTH CARE

362,443,479

INDUSTRIALS - 9.4%

Aerospace & Defense - 1.9%

Honeywell International, Inc.

118,700

11,033,165

Common Stocks - continued

Shares

Value

INDUSTRIALS - continued

Aerospace & Defense - continued

The Boeing Co.

309,000

$ 39,314,070

United Technologies Corp.

176,200

20,342,290

 

70,689,525

Air Freight & Logistics - 1.8%

FedEx Corp.

117,800

17,832,564

United Parcel Service, Inc. Class B

475,000

48,763,500

 

66,596,064

Industrial Conglomerates - 3.4%

Danaher Corp.

146,570

11,539,456

General Electric Co.

4,323,800

113,629,464

 

125,168,920

Machinery - 0.3%

Caterpillar, Inc.

86,500

9,399,955

Road & Rail - 2.0%

CSX Corp.

1,160,700

35,761,167

Norfolk Southern Corp.

207,800

21,409,634

Union Pacific Corp.

148,190

14,781,953

 

71,952,754

TOTAL INDUSTRIALS

343,807,218

INFORMATION TECHNOLOGY - 23.4%

Communications Equipment - 3.1%

Cisco Systems, Inc.

2,773,400

68,918,990

QUALCOMM, Inc.

531,900

42,126,480

 

111,045,470

Internet Software & Services - 4.2%

Facebook, Inc. Class A (a)

103,597

6,971,042

Google, Inc.:

Class A (a)

109,350

63,933,665

Class C (a)

95,750

55,083,060

Yahoo!, Inc. (a)

781,639

27,458,978

 

153,446,745

IT Services - 3.8%

Accenture PLC Class A

69,100

5,586,044

Cognizant Technology Solutions Corp. Class A (a)

523,400

25,599,494

IBM Corp.

156,000

28,278,120

Common Stocks - continued

Shares

Value

INFORMATION TECHNOLOGY - continued

IT Services - continued

MasterCard, Inc. Class A

555,900

$ 40,841,973

Visa, Inc. Class A

187,100

39,423,841

 

139,729,472

Semiconductors & Semiconductor Equipment - 1.4%

Applied Materials, Inc.

699,625

15,776,544

Broadcom Corp. Class A

973,036

36,119,096

 

51,895,640

Software - 5.3%

Adobe Systems, Inc. (a)

253,200

18,321,552

Microsoft Corp.

3,024,500

126,121,650

Oracle Corp.

899,900

36,472,947

salesforce.com, Inc. (a)

199,200

11,569,536

 

192,485,685

Technology Hardware, Storage & Peripherals - 5.6%

Apple, Inc.

1,808,507

168,064,558

EMC Corp.

1,051,000

27,683,340

First Data Holdings, Inc. Class B (e)

2,429,231

9,716,924

 

205,464,822

TOTAL INFORMATION TECHNOLOGY

854,067,834

MATERIALS - 2.7%

Chemicals - 2.1%

E.I. du Pont de Nemours & Co.

333,900

21,850,416

Monsanto Co.

315,310

39,331,769

Syngenta AG (Switzerland)

43,089

15,919,199

 

77,101,384

Metals & Mining - 0.6%

Freeport-McMoRan Copper & Gold, Inc.

538,000

19,637,000

TOTAL MATERIALS

96,738,384

TELECOMMUNICATION SERVICES - 2.3%

Diversified Telecommunication Services - 2.3%

Verizon Communications, Inc.

1,743,725

85,320,464

TOTAL COMMON STOCKS

(Cost $2,718,899,411)


3,578,865,333

Money Market Funds - 2.6%

Shares

Value

Fidelity Cash Central Fund, 0.11% (b)

74,761,932

$ 74,761,932

Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c)

22,517,000

22,517,000

TOTAL MONEY MARKET FUNDS

(Cost $97,278,932)


97,278,932

TOTAL INVESTMENT PORTFOLIO - 100.8%

(Cost $2,816,178,343)

3,676,144,265

NET OTHER ASSETS (LIABILITIES) - (0.8)%

(30,832,045)

NET ASSETS - 100%

$ 3,645,312,220

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.

(c) Investment made with cash collateral received from securities on loan.

(d) Security or a portion of the security is on loan at period end.

(e) 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 $9,716,924 or 0.3% of net assets.

Additional information on each restricted holding is as follows:

Security

Acquisition Date

Acquisition Cost

First Data Holdings, Inc. Class B

6/26/14

$ 9,716,924

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

$ 27,717

Fidelity Securities Lending Cash Central Fund

89,556

Total

$ 117,273

Other Information

The following is a summary of the inputs used, as of June 30, 2014, 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 in the table 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:

Equities:

Consumer Discretionary

$ 338,382,246

$ 338,382,246

$ -

$ -

Consumer Staples

396,225,068

380,274,943

15,950,125

-

Energy

435,656,785

435,656,785

-

-

Financials

666,223,855

666,223,855

-

-

Health Care

362,443,479

353,937,764

8,505,715

-

Industrials

343,807,218

343,807,218

-

-

Information Technology

854,067,834

844,350,910

-

9,716,924

Materials

96,738,384

80,819,185

15,919,199

-

Telecommunication Services

85,320,464

85,320,464

-

-

Money Market Funds

97,278,932

97,278,932

-

-

Total Investments in Securities:

$ 3,676,144,265

$ 3,626,052,302

$ 40,375,039

$ 9,716,924

Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited):

United States of America

89.3%

United Kingdom

5.4%

Canada

2.4%

Curacao

1.1%

Others (Individually Less Than 1%)

1.8%

 

100.0%

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

Annual Report


Financial Statements

Statement of Assets and Liabilities

 

June 30, 2014

 

 

 

Assets

Investment in securities, at value (including securities loaned of $21,833,302) - See accompanying schedule:

Unaffiliated issuers (cost $2,718,899,411)

$ 3,578,865,333

 

Fidelity Central Funds (cost $97,278,932)

97,278,932

 

Total Investments (cost $2,816,178,343)

 

$ 3,676,144,265

Receivable for investments sold

6,265,877

Receivable for fund shares sold

5,281,399

Dividends receivable

4,490,136

Distributions receivable from Fidelity Central Funds

19,236

Receivable from investment adviser for expense reductions

386

Other receivables

124,808

Total assets

3,692,326,107

 

 

 

Liabilities

Payable for investments purchased

$ 19,178,333

Payable for fund shares redeemed

3,159,924

Accrued management fee

1,355,067

Distribution and service plan fees payable

36,521

Other affiliated payables

644,371

Other payables and accrued expenses

122,671

Collateral on securities loaned, at value

22,517,000

Total liabilities

47,013,887

 

 

 

Net Assets

$ 3,645,312,220

Net Assets consist of:

 

Paid in capital

$ 2,686,009,603

Undistributed net investment income

25,146,366

Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions

74,183,358

Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies

859,972,893

Net Assets

$ 3,645,312,220

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

Annual Report

Financial Statements - continued

Statement of Assets and Liabilities - continued

 

June 30, 2014

 

 

 

Calculation of Maximum Offering Price

Class A:
Net Asset Value
and redemption price per share ($77,335,409 ÷ 4,739,947 shares)

$ 16.32

 

 

 

Maximum offering price per share (100/94.25 of $16.32)

$ 17.32

Class T:
Net Asset Value
and redemption price per share ($15,728,415 ÷ 964,584 shares)

$ 16.31

 

 

 

Maximum offering price per share (100/96.50 of $16.31)

$ 16.90

Class B:
Net Asset Value
and offering price per share ($918,549 ÷ 56,656 shares)A

$ 16.21

 

 

 

Class C:
Net Asset Value
and offering price per share ($16,599,716 ÷ 1,029,726 shares)A

$ 16.12

 

 

 

Mega Cap Stock:
Net Asset Value
, offering price and redemption price per share ($2,860,197,294 ÷ 173,984,386 shares)

$ 16.44

 

 

 

Institutional Class:
Net Asset Value
, offering price and redemption price per share ($674,415,747 ÷ 41,154,574 shares)

$ 16.39

 

 

 

Class Z:
Net Asset Value
, offering price and redemption price per share ($117,090 ÷ 7,138 shares)

$ 16.40

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.

Annual Report

Statement of Operations

 

Year ended June 30, 2014

 

 

 

Investment Income

 

 

Dividends

 

$ 64,598,075

Interest

 

3

Income from Fidelity Central Funds

 

117,273

Total income

 

64,715,351

 

 

 

Expenses

Management fee

$ 13,636,133

Transfer agent fees

5,746,426

Distribution and service plan fees

284,809

Accounting and security lending fees

887,108

Custodian fees and expenses

71,971

Independent trustees' compensation

12,515

Registration fees

231,217

Audit

55,093

Legal

11,095

Interest

2,824

Miscellaneous

22,803

Total expenses before reductions

20,961,994

Expense reductions

(36,926)

20,925,068

Net investment income (loss)

43,790,283

Realized and Unrealized Gain (Loss)

Net realized gain (loss) on:

Investment securities:

 

 

Unaffiliated issuers

143,561,768

Foreign currency transactions

(8,194)

Total net realized gain (loss)

 

143,553,574

Change in net unrealized appreciation (depreciation) on:

Investment securities

457,006,470

Assets and liabilities in foreign currencies

12,169

Total change in net unrealized appreciation (depreciation)

 

457,018,639

Net gain (loss)

600,572,213

Net increase (decrease) in net assets resulting from operations

$ 644,362,496

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

Annual Report

Financial Statements - continued

Statement of Changes in Net Assets

 

Year ended
June 30,
2014

Year ended
June 30,
2013

Increase (Decrease) in Net Assets

 

 

Operations

 

 

Net investment income (loss)

$ 43,790,283

$ 35,288,813

Net realized gain (loss)

143,553,574

104,876,418

Change in net unrealized appreciation (depreciation)

457,018,639

321,854,450

Net increase (decrease) in net assets resulting
from operations

644,362,496

462,019,681

Distributions to shareholders from net investment income

(35,705,336)

(27,575,489)

Distributions to shareholders from net realized gain

(41,770,691)

-

Total distributions

(77,476,027)

(27,575,489)

Share transactions - net increase (decrease)

513,653,074

652,982,078

Total increase (decrease) in net assets

1,080,539,543

1,087,426,270

 

 

 

Net Assets

Beginning of period

2,564,772,677

1,477,346,407

End of period (including undistributed net investment income of $25,146,366 and undistributed net investment income of $17,061,419, respectively)

$ 3,645,312,220

$ 2,564,772,677

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

Annual Report

Financial Highlights - Class A

Years ended June 30,

2014

2013

2012

2011

2010

Selected Per-Share Data

 

 

 

 

 

Net asset value, beginning of period

$ 13.51

$ 11.05

$ 10.37

$ 8.07

$ 7.20

Income from Investment Operations

 

 

 

 

 

Net investment income (loss) C

  .18

  .17

  .13

  .07

  .06

Net realized and unrealized gain (loss)

  3.00

  2.43

  .64

  2.28

  .92

Total from investment operations

  3.18

  2.60

  .77

  2.35

  .98

Distributions from net investment income

  (.16)

  (.14)

  (.09)

  (.05)

  (.11)

Distributions from net realized gain

  (.21)

  -

  -

  -

  -

Total distributions

  (.37)

  (.14)

  (.09)

  (.05)

  (.11)

Net asset value, end of period

$ 16.32

$ 13.51

$ 11.05

$ 10.37

$ 8.07

Total ReturnA, B

  23.88%

  23.78%

  7.57%

  29.23%

  13.65%

Ratios to Average Net Assets D, F

 

 

 

 

 

Expenses before reductions

  .96%

  .98%

  1.02%

  1.06%

  1.10%

Expenses net of fee waivers, if any

  .96%

  .98%

  1.02%

  1.06%

  1.10%

Expenses net of all reductions

  .96%

  .98%

  1.02%

  1.06%

  1.10%

Net investment income (loss)

  1.19%

  1.37%

  1.28%

  .76%

  .66%

Supplemental Data

 

 

 

 

 

Net assets, end of period (000 omitted)

$ 77,335

$ 20,336

$ 8,527

$ 4,169

$ 2,238

Portfolio turnover rateE

  28%

  29%

  57%

  53%

  97%

A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.

B Total returns do not include the effect of the sales charges.

C Calculated based on average shares outstanding during the period.

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 Amount does not include the portfolio activity 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.

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

Annual Report

Financial Highlights - Class T

Years ended June 30,

2014

2013

2012

2011

2010

Selected Per-Share Data

 

 

 

 

 

Net asset value, beginning of period

$ 13.51

$ 11.05

$ 10.38

$ 8.07

$ 7.20

Income from Investment Operations

 

 

 

 

 

Net investment income (loss) C

  .14

  .14

  .10

  .05

  .03

Net realized and unrealized gain (loss)

  3.00

  2.43

  .64

  2.29

  .93

Total from investment operations

  3.14

  2.57

  .74

  2.34

  .96

Distributions from net investment income

  (.13)

  (.11)

  (.07)

  (.03)

  (.09)

Distributions from net realized gain

  (.21)

  -

  -

  -

  -

Total distributions

  (.34)

  (.11)

  (.07)

  (.03)

  (.09)

Net asset value, end of period

$ 16.31

$ 13.51

$ 11.05

$ 10.38

$ 8.07

Total ReturnA, B

  23.54%

  23.44%

  7.19%

  29.08%

  13.32%

Ratios to Average Net Assets D, F

 

 

 

 

 

Expenses before reductions

  1.22%

  1.26%

  1.32%

  1.32%

  1.36%

Expenses net of fee waivers, if any

  1.22%

  1.26%

  1.32%

  1.32%

  1.36%

Expenses net of all reductions

  1.22%

  1.26%

  1.32%

  1.32%

  1.35%

Net investment income (loss)

  .92%

  1.09%

  .98%

  .50%

  .41%

Supplemental Data

 

 

 

 

 

Net assets, end of period (000 omitted)

$ 15,728

$ 8,377

$ 2,293

$ 1,682

$ 1,073

Portfolio turnover rateE

  28%

  29%

  57%

  53%

  97%

A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.

B Total returns do not include the effect of the sales charges.

C Calculated based on average shares outstanding during the period.

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 Amount does not include the portfolio activity 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.

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

Annual Report

Financial Highlights - Class B

Years ended June 30,

2014

2013

2012

2011

2010

Selected Per-Share Data

 

 

 

 

 

Net asset value, beginning of period

$ 13.43

$ 10.97

$ 10.30

$ 8.02

$ 7.19

Income from Investment Operations

 

 

 

 

 

Net investment income (loss) C

  .06

  .07

  .05

  - H

  (.01)

Net realized and unrealized gain (loss)

  2.98

  2.43

  .63

  2.28

  .92

Total from investment operations

  3.04

  2.50

  .68

  2.28

  .91

Distributions from net investment income

  (.04)

  (.04)

  (.01)

  -

  (.08)

Distributions from net realized gain

  (.21)

  -

  -

  -

  -

Total distributions

  (.26) I

  (.04)

  (.01)

  -

  (.08)

Net asset value, end of period

$ 16.21

$ 13.43

$ 10.97

$ 10.30

$ 8.02

Total ReturnA, B

  22.82%

  22.83%

  6.62%

  28.43%

  12.60%

Ratios to Average Net Assets D, G

 

 

 

 

 

Expenses before reductions

  1.78%

  1.80%

  1.82%

  1.83%

  1.88%

Expenses net of fee waivers, if any

  1.78%

  1.80%

  1.82%

  1.83%

  1.88%

Expenses net of all reductions

  1.78%

  1.80%

  1.81%

  1.82%

  1.88%

Net investment income (loss)

  .37%

  .55%

  .49%

  .00% F

  (.12)%

Supplemental Data

 

 

 

 

 

Net assets, end of period (000 omitted)

$ 919

$ 716

$ 704

$ 764

$ 667

Portfolio turnover rateE

  28%

  29%

  57%

  53%

  97%

A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.

B Total returns do not include the effect of the contingent deferred sales charge.

C Calculated based on average shares outstanding during the period.

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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

F Amount represents less than .01%.

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 represents less than $.01 per share.

I Total distributions of $.26 per share is comprised of distributions from net investment income of $.044 and distributions from net realized gain of $.213 per share.

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

Annual Report

Financial Highlights - Class C

Years ended June 30,

2014

2013

2012

2011

2010

Selected Per-Share Data

 

 

 

 

 

Net asset value, beginning of period

$ 13.38

$ 10.93

$ 10.28

$ 8.01

$ 7.16

Income from Investment Operations

 

 

 

 

 

Net investment income (loss) C

  .06

  .07

  .05

  - G

  (.01)

Net realized and unrealized gain (loss)

  2.97

  2.42

  .64

  2.27

  .92

Total from investment operations

  3.03

  2.49

  .69

  2.27

  .91

Distributions from net investment income

  (.08)

  (.04)

  (.04)

  -

  (.06)

Distributions from net realized gain

  (.21)

  -

  -

  -

  -

Total distributions

  (.29)

  (.04)

  (.04)

  -

  (.06)

Net asset value, end of period

$ 16.12

$ 13.38

$ 10.93

$ 10.28

$ 8.01

Total ReturnA, B

  22.90%

  22.83%

  6.74%

  28.34%

  12.72%

Ratios to Average Net Assets D, F

 

 

 

 

 

Expenses before reductions

  1.71%

  1.75%

  1.79%

  1.81%

  1.86%

Expenses net of fee waivers, if any

  1.71%

  1.75%

  1.79%

  1.81%

  1.86%

Expenses net of all reductions

  1.71%

  1.75%

  1.79%

  1.81%

  1.85%

Net investment income (loss)

  .43%

  .59%

  .51%

  .01%

  (.10)%

Supplemental Data

 

 

 

 

 

Net assets, end of period (000 omitted)

$ 16,600

$ 7,938

$ 2,845

$ 1,913

$ 807

Portfolio turnover rateE

  28%

  29%

  57%

  53%

  97%

A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.

B Total returns do not include the effect of the contingent deferred sales charge.

C Calculated based on average shares outstanding during the period.

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 Amount does not include the portfolio activity 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 represents less than $.01 per share.

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

Annual Report

Financial Highlights - Mega Cap Stock

Years ended June 30,

2014

2013

2012

2011

2010

Selected Per-Share Data

 

 

 

 

 

Net asset value, beginning of period

$ 13.60

$ 11.11

$ 10.43

$ 8.11

$ 7.23

Income from Investment Operations

 

 

 

 

 

Net investment income (loss) B

  .22

  .20

  .16

  .10

  .08

Net realized and unrealized gain (loss)

  3.02

  2.46

  .64

  2.29

  .93

Total from investment operations

  3.24

  2.66

  .80

  2.39

  1.01

Distributions from net investment income

  (.19)

  (.17)

  (.12)

  (.07)

  (.13)

Distributions from net realized gain

  (.21)

  -

  -

  -

  -

Total distributions

  (.40)

  (.17)

  (.12)

  (.07)

  (.13)

Net asset value, end of period

$ 16.44

$ 13.60

$ 11.11

$ 10.43

$ 8.11

Total ReturnA

  24.18%

  24.17%

  7.83%

  29.61%

  13.93%

Ratios to Average Net Assets C, E

 

 

 

 

 

Expenses before reductions

  .68%

  .70%

  .76%

  .79%

  .81%

Expenses net of fee waivers, if any

  .68%

  .70%

  .76%

  .79%

  .80%

Expenses net of all reductions

  .68%

  .70%

  .75%

  .78%

  .79%

Net investment income (loss)

  1.47%

  1.64%

  1.55%

  1.04%

  .96%

Supplemental Data

 

 

 

 

 

Net assets, end of period (000 omitted)

$ 2,860,197

$ 2,214,592

$ 1,287,144

$ 785,233

$ 500,407

Portfolio turnover rateD

  28%

  29%

  57%

  53%

  97%

A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.

B Calculated based on average shares outstanding during the period.

C 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.

D Amount does not include the portfolio activity 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.

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

Annual Report

Financial Highlights - Institutional Class

Years ended June 30,

2014

2013

2012

2011

2010

Selected Per-Share Data

 

 

 

 

 

Net asset value, beginning of period

$ 13.55

$ 11.08

$ 10.40

$ 8.09

$ 7.22

Income from Investment Operations

 

 

 

 

 

Net investment income (loss) B

  .22

  .20

  .16

  .10

  .08

Net realized and unrealized gain (loss)

  3.02

  2.44

  .63

  2.30

  .92

Total from investment operations

  3.24

  2.64

  .79

  2.40

  1.00

Distributions from net investment income

  (.18)

  (.17)

  (.11)

  (.09)

  (.13)

Distributions from net realized gain

  (.21)

  -

  -

  -

  -

Total distributions

  (.40) F

  (.17)

  (.11)

  (.09)

  (.13)

Net asset value, end of period

$ 16.39

$ 13.55

$ 11.08

$ 10.40

$ 8.09

Total ReturnA

  24.23%

  24.06%

  7.77%

  29.74%

  13.89%

Ratios to Average Net Assets C, E

 

 

 

 

 

Expenses before reductions

  .71%

  .74%

  .78%

  .79%

  .88%

Expenses net of fee waivers, if any

  .71%

  .74%

  .78%

  .79%

  .88%

Expenses net of all reductions

  .71%

  .74%

  .77%

  .78%

  .87%

Net investment income (loss)

  1.43%

  1.61%

  1.53%

  1.04%

  .88%

Supplemental Data

 

 

 

 

 

Net assets, end of period (000 omitted)

$ 674,416

$ 312,814

$ 175,833

$ 136,768

$ 1,568

Portfolio turnover rateD

  28%

  29%

  57%

  53%

  97%

A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.

B Calculated based on average shares outstanding during the period.

C 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.

D Amount does not include the portfolio activity 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 Total distributions of $.40 per share is comprised of distributions from net investment income of $.182 and distributions from net realized gain of $.213 per share.

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

Annual Report

Financial Highlights - Class Z

Year ended June 30,

2014 G

Selected Per-Share Data

 

Net asset value, beginning of period

$ 14.31

Income from Investment Operations

 

Net investment income (loss) D

  .21

Net realized and unrealized gain (loss)

  2.20

Total from investment operations

  2.41

Distributions from net investment income

  (.10)

Distributions from net realized gain

  (.21)

Total distributions

  (.32) I

Net asset value, end of period

$ 16.40

Total ReturnB, C

  17.06%

Ratios to Average Net Assets E, H

 

Expenses before reductions

  .54%A

Expenses net of fee waivers, if any

  .54%A

Expenses net of all reductions

  .54%A

Net investment income (loss)

  1.59% A

Supplemental Data

 

Net assets, end of period (000 omitted)

$ 117

Portfolio turnover rateF

  28% A

A Annualized

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

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

D Calculated based on average shares outstanding during the period.

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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

G For the period August 13, 2013 (commencement of sale of shares) to June 30, 2014.

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. Expense ratios before reductions for start-up periods may not be representative of longer-term operation periods. 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 Total distributions of $.32 per share is comprised of distributions from net investment income of $.104 and distributions from net realized gain of $.213 per share.

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

Annual Report


Notes to Financial Statements

For the period ended June 30, 2014

1. Organization.

Fidelity Mega Cap Stock Fund (the Fund) is a fund of Fidelity Hastings Street Trust (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund commenced sale of Class Z shares on August 13, 2013. The Fund offers Class A, Class T, Class C, Mega Cap Stock, Institutional Class and Class Z shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.

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 .01%.

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:

Annual Report

Notes to Financial Statements - continued

3. Significant Accounting Policies - continued

Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (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 Fidelity Management & Research Company (FMR) Fair Value Committee (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 is responsible for approving and reporting to the Board all fair value determinations.

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.

Annual Report

3. Significant Accounting Policies - continued

Investment Valuation - continued

Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of June 30, 2014 is included at the end of the Fund's Schedule of Investments.

Foreign Currency. The Fund 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 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. 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.

Annual Report

Notes to Financial Statements - continued

3. Significant Accounting Policies - continued

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.

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 June 30, 2014, 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. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.

Distributions are 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 foreign currency transactions, equity-debt classifications, capital loss carryforwards, and losses deferred due to wash sales.

Annual Report

3. Significant Accounting Policies - continued

Income Tax Information and Distributions to Shareholders - continued

The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:

Gross unrealized appreciation

$ 868,594,923

Gross unrealized depreciation

(16,059,631)

Net unrealized appreciation (depreciation) on securities and other investments

$ 852,535,292

 

 

Tax Cost

$ 2,823,608,973

The tax-based components of distributable earnings as of period end were as follows:

Undistributed ordinary income

$ 28,109,862

Undistributed long-term capital gain

$ 78,650,493

Net unrealized appreciation (depreciation)

$ 852,542,261

The tax character of distributions paid was as follows:

 

June 30, 2014

June 30, 2013

Ordinary Income

$ 36,293,656

$ 27,575,489

Long-term Capital Gains

41,182,371

Total

$ 77,476,027

$ 27,575,489

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

4. Purchases and Sales of Investments.

Purchases and sales of securities, other than short-term securities, aggregated $1,277,032,508 and $853,056,484, respectively.

5. Fees and Other Transactions with Affiliates.

Management Fee. Fidelity Management & Research Company (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 .20% of the Fund's

Annual Report

Notes to Financial Statements - continued

5. Fees and Other Transactions with Affiliates - continued

Management Fee - continued

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 the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of 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 .45% 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%

$ 87,546

$ 3,362

Class T

.25%

.25%

63,304

232

Class B

.75%

.25%

9,175

6,896

Class C

.75%

.25%

124,784

55,523

 

 

 

$ 284,809

$ 66,013

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, Class B, 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.

Annual Report

5. Fees and Other Transactions with Affiliates - continued

Sales Load - continued

For the period, sales charge amounts retained by FDC were as follows:

 

Retained
by FDC

Class A

$ 20,530

Class T

3,915

Class B*

699

Class C*

897

 

$ 26,041

* 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, except for Class Z. FIIOC receives an asset-based fee of Class Z's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.

For the period, transfer agent fees for each class were as follows:

 

Amount

% of
Average
Net Assets

Class A

$ 74,123

.21

Class T

28,367

.22

Class B

2,566

.28

Class C

26,868

.22

Mega Cap Stock

4,669,765

.18

Institutional Class

944,693

.22

Class Z

44

.05*

 

$ 5,746,426

 

* Annualized

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.

Annual Report

Notes to Financial Statements - continued

5. Fees and Other Transactions with Affiliates - continued

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 $17,995 for the period.

Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR 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. The 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

Borrower

$ 9,205,303

.30%

$ 2,541

6. Committed Line of Credit.

The Fund participates with other funds managed by the investment adviser FMR 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 $5,038 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. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. 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. 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

Annual Report

7. Security Lending - continued

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 $89,556. During the period, there were no securities loaned to FCM.

8. Bank Borrowings.

The Fund is permitted to have bank borrowings for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity requirements. The Fund has established borrowing arrangements with certain banks. The interest rate on the borrowings is the bank's base rate, as revised from time to time. The average loan balance during the period for which loans were outstanding amounted to $8,939,500. The weighted average interest rate was .57%. The interest expense amounted to $283 under the bank borrowing program. At period end, there were no bank borrowings outstanding.

9. Expense Reductions.

The investment adviser voluntarily agreed to reimburse each class 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 were in reimbursement during the period:

 

Reimbursement

Class A

$ 125

Class T

56

Class B

4

Class C

50

Mega Cap Stock

11,993

Institutional Class

1,697

 

$ 13,925

In addition, the investment adviser reimbursed a portion of the Fund's operating expenses during the period in the amount of $6,711.

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 $16,290 for the period.

Annual Report

Notes to Financial Statements - continued

10. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

Years ended June 30,

2014 A

2013

From net investment income

 

 

Class A

$ 295,572

$ 137,534

Class T

98,011

36,492

Class B

2,617

2,304

Class C

56,227

13,133

Mega Cap Stock

30,989,923

23,359,421

Institutional Class

4,262,259

4,026,605

Class Z

727

-

Total

$ 35,705,336

$ 27,575,489

From net realized gain

 

 

Class A

$ 453,140

$ -

Class T

181,208

-

Class B

13,697

-

Class C

173,595

-

Mega Cap Stock

35,870,113

-

Institutional Class

5,077,450

-

Class Z

1,488

-

Total

$ 41,770,691

$ -

A Distributions for Class Z are for the period August 13, 2013 (commencement of sale of shares) to June 30, 2014.

11. Share Transactions.

Transactions for each class of shares were as follows:

 

Shares

Dollars

Years ended June 30,

2014 A

2013

2014 A

2013

Class A

 

 

 

 

Shares sold

3,913,806

1,001,677

$ 60,286,671

$ 12,394,211

Reinvestment of distributions

45,968

11,084

673,798

127,952

Shares redeemed

(725,328)

(279,053)

(11,077,893)

(3,495,724)

Net increase (decrease)

3,234,446

733,708

$ 49,882,576

$ 9,026,439

Class T

 

 

 

 

Shares sold

595,712

517,456

$ 8,877,747

$ 6,404,547

Reinvestment of distributions

18,863

3,084

276,847

35,826

Shares redeemed

(270,157)

(107,959)

(4,055,631)

(1,368,248)

Net increase (decrease)

344,418

412,581

$ 5,098,963

$ 5,072,125

Annual Report

11. Share Transactions - continued

 

Shares

Dollars

Years ended June 30,

2014 A

2013

2014 A

2013

Class B

 

 

 

 

Shares sold

27,198

9,952

$ 400,691

$ 125,476

Reinvestment of distributions

1,081

196

15,861

2,261

Shares redeemed

(24,976)

(20,917)

(377,365)

(255,293)

Net increase (decrease)

3,303

(10,769)

$ 39,187

$ (127,556)

Class C

 

 

 

 

Shares sold

504,584

448,373

$ 7,460,222

$ 5,664,292

Reinvestment of distributions

15,230

988

221,741

11,494

Shares redeemed

(83,515)

(116,347)

(1,262,211)

(1,448,415)

Net increase (decrease)

436,299

333,014

$ 6,419,752

$ 4,227,371

Mega Cap Stock

 

 

 

 

Shares sold

53,817,396

84,998,537

$ 817,611,772

$ 1,035,668,817

Reinvestment of distributions

4,142,626

1,836,891

61,008,516

21,294,763

Shares redeemed

(46,852,676)

(39,801,746)

(705,756,204)

(498,490,773)

Net increase (decrease)

11,107,346

47,033,682

$ 172,864,084

$ 558,472,807

Institutional Class

 

 

 

 

Shares sold

19,497,644

11,389,839

$ 301,200,514

$ 129,734,591

Reinvestment of distributions

626,527

338,467

9,201,440

3,911,623

Shares redeemed

(2,047,800)

(4,517,962)

(31,155,657)

(57,335,322)

Net increase (decrease)

18,076,371

7,210,344

$ 279,246,297

$ 76,310,892

Class Z

 

 

 

 

Shares sold

6,988

-

$ 100,000

$ -

Reinvestment of distributions

150

-

2,215

-

Net increase (decrease)

7,138

-

$ 102,215

$ -

A Share transactions for Class Z are for the period August 13, 2013 (commencement of sale of shares) to June 30, 2014.

12. 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.

At the end of the period, Strategic Advisers U.S. Opportunity Fund was the owner of record of approximately 11% of the total outstanding shares of the Fund.

Annual Report


Report of Independent Registered Public Accounting Firm

To the Trustees of Fidelity Hastings Street Trust and the Shareholders of Fidelity Mega Cap Stock Fund:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Mega Cap Stock Fund (a fund of Fidelity Hastings Street Trust) at June 30, 2014, 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 periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity Mega Cap Stock Fund's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements 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 are free of material misstatement. An audit 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, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at June 30, 2014 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

Boston, Massachusetts

August 12, 2014

Annual Report


Trustees and Officers

The Trustees, Member of the Advisory Board, 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. Except for James C. Curvey, each of the Trustees oversees 173 funds. Mr. Curvey oversees 397 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 (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. The officers and Advisory Board Member hold office without limit in time, except that any officer and 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.

Experience, Skills, Attributes, and Qualifications of the Fund's 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.

Annual Report

Board Structure and Oversight Function. James C. Curvey is an interested person (as defined in the 1940 Act) 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. Ned C. Lautenbach 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 equity and high income funds and another Board oversees Fidelity's investment-grade bond, money market, and asset allocation funds. The asset allocation funds may invest in Fidelity funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity funds overseen by each Board.

The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. For example, a working group comprised of Independent Trustees and FMR has worked and continues to work to review the Fidelity funds' valuation-related activities, reporting and risk management. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of FMR's risk management program for the Fidelity funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Fund's Trustees."

Annual Report

Trustees and Officers - continued

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.

Interested Trustees*:

Correspondence intended for each 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+

James C. Curvey (1935)

Year of Election or Appointment: 2007

Trustee

Chairman of the Board of Trustees

 

Mr. Curvey also serves as Trustee of other Fidelity funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (2009-present), and Vice Chairman (2007-present) and Director of FMR LLC. In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the Trustees of Villanova University. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (2009-2014), a Director of FMR (2007-2014), a Director of FMR Co., Inc. (2007-2014) and was the Vice Chairman (2006-2007) and Director (2000-2007) of FMR Corp.

Charles S. Morrison (1960)

Year of Election or Appointment: 2014

Trustee

 

Mr. Morrison also serves as Trustee of other funds. He serves as President, Asset Management (2014-present) and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.

* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR.

+ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for the fund.

Annual Report

Trustees and Officers - continued

Independent Trustees:

Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.

Name, Year of Birth; Principal Occupations and Other Relevant Experience+

Dennis J. Dirks (1948)

Year of Election or Appointment: 2005

Trustee

 

Mr. Dirks also serves as Trustee of other Fidelity funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), and as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008). Mr. Dirks is a member of the Independent Directors Council (IDC) Governing Council (2010-present) and Board of Directors for The Brookville Center for Children's Services, Inc. (2009-present).

Alan J. Lacy (1953)

Year of Election or Appointment: 2008

Trustee

 

Mr. Lacy also serves as Trustee of other Fidelity funds. Mr. Lacy serves as Senior Adviser (2007-present) of Oak Hill Capital Partners, L.P. (private equity). Mr. Lacy also served as Chief Executive Officer (2000-2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation and Sears, Roebuck and Co. (retail). In addition, Mr. Lacy serves as a member of the Board of Directors of Dave & Buster's Entertainment, Inc. (restaurant and entertainment complexes, 2010-present), Earth Fare, Inc. (retail grocery, 2012-present), The Hillman Companies, Inc. (hardware wholesalers, 2010-present), and Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). Mr. Lacy is a member of the Board of Trustees of The National Parks Conservation Association (2006-present). Previously, Mr. Lacy served as Chairman of the Board of Trustees of the National Parks Conservation Association (2008-2011) and as a member of the Board of Directors for the Western Union Company (global money transfer, 2006-2011).

Ned C. Lautenbach (1944)

Year of Election or Appointment: 2000

Trustee

Chairman of the Independent Trustees

 

Mr. Lautenbach also serves as Trustee of other Fidelity funds. Mr. Lautenbach currently serves as the Lead Director of the Eaton Corporation Board of Directors (diversified industrial, 1997-present). Mr. Lautenbach is Chairman of the Board of Directors of the Philharmonic Center for the Arts in Naples, Florida (2012-present) and a member of the Council on Foreign Relations (1994-present). Previously, Mr. Lautenbach was a Partner/Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007).

Joseph Mauriello (1944)

Year of Election or Appointment: 2008

Trustee

 

Mr. Mauriello also serves as Trustee of other Fidelity funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).

Robert W. Selander (1950)

Year of Election or Appointment: 2011

Trustee

 

Mr. Selander also serves as Trustee of other Fidelity funds. Previously, Mr. Selander served as a Member of the Advisory Board of other Fidelity funds (2011), and Executive Vice Chairman (2010), Chief Executive Officer (2009-2010), and President and Chief Executive Officer (1997-2009) of Mastercard, Inc.

Cornelia M. Small (1944)

Year of Election or Appointment: 2005

Trustee

 

Ms. Small also serves as Trustee of other Fidelity funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.

William S. Stavropoulos (1939)

Year of Election or Appointment: 2001

Trustee

Vice Chairman of the Independent Trustees

 

Mr. Stavropoulos also serves as Trustee of other Fidelity funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and Maersk Inc. (industrial conglomerate), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of the Naples Philharmonic Center for the Arts. Previously, Mr. Stavropoulos served as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).

David M. Thomas (1949)

Year of Election or Appointment: 2008

Trustee

 

Mr. Thomas also serves as Trustee of other Fidelity funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), and as a member of the Board of Directors of Interpublic Group of Companies, Inc. (marketing communication, 2004-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).

+ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for the fund.

Advisory Board Member and Officers:

Correspondence intended for each officer and Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.

Name, Year of Birth; Principal Occupation

Peter S. Lynch (1944)

Year of Election or Appointment: 2003

Member of the Advisory Board

 

Mr. Lynch also serves as Member of the Advisory Board of other Fidelity funds. Mr. Lynch is Vice Chairman and a Director of FMR and FMR Co., Inc. In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).

Elizabeth Paige Baumann (1968)

Year of Election or Appointment: 2012

Anti-Money Laundering (AML) Officer

 

Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer of FMR LLC (2012-present) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as Vice President and Deputy Anti-Money Laundering Officer (2007-2012).

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 (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. Mr. Davis is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (2003-2010).

Adrien E. Deberghes (1967)

Year of Election or Appointment: 2008

Deputy Treasurer

 

Mr. Deberghes also serves as an officer of other funds. He 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).

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. (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: 2008

Secretary and Chief Legal Officer (CLO)

 

Mr. Goebel serves as Secretary and CLO of other funds. Mr. Goebel also serves as Secretary of Fidelity SelectCo, LLC (2013-present), Fidelity Investments Money Management, Inc. (FIMM) (2010-present) and Fidelity Research and Analysis Company (FRAC) (2010-present); General Counsel, Secretary, and Senior Vice President of FMR (2008-present) and FMR Co., Inc. (2008-present); Chief Legal Officer of Fidelity Management & Research (Hong Kong) Limited (2008-present); and Assistant Secretary of Fidelity Management & Research (Japan) Inc. (2008-present) and Fidelity Management & Research (U.K.) Inc. (2008-present). Previously, Mr. Goebel served as Secretary and CLO of other Fidelity funds (2008-2013), 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). Mr. Goebel has been employed by FMR LLC or an affiliate since 2001.

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 President of FMR's Equity Division (2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager.

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 FMR's Program Management Group (2010-2013), and Vice President of Valuation Oversight (2008-2010).

Melissa M. Reilly (1971)

Year of Election or Appointment: 2014

Vice President of certain Equity Funds

 

Ms. Reilly also serves as Vice President of other funds. Ms. Reilly is an employee of Fidelity Investments (2004-present).

Kenneth B. Robins (1969)

Year of Election or Appointment: 2008

President and Treasurer

 

Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (2013-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served in other fund officer roles.

Stephen Sadoski (1971)

Year of Election or Appointment: 2012

Deputy Treasurer

 

Mr. Sadoski also serves as Deputy Treasurer of other funds. He is an employee of Fidelity Investments (2012-present) and has served in another fund officer role. Prior to joining Fidelity Investments, Mr. Sadoski served as an assistant chief accountant in the Division of Investment Management of the Securities and Exchange Commission (SEC) (2009-2012) and as a senior manager at Deloitte & Touche LLP (1997-2009).

Stacie M. Smith (1974)

Year of Election or Appointment: 2013

Deputy 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).

Renee Stagnone (1975)

Year of Election or Appointment: 2013

Deputy Treasurer

 

Ms. Stagnone also serves as Deputy Treasurer of other funds. Ms. Stagnone is an employee of Fidelity Investments.

Linda J. Wondrack (1964)

Year of Election or Appointment: 2014

Chief Compliance Officer

 

Ms. Wondrack also serves as Chief Compliance Officer of other funds. Ms. Wondrack is Executive Vice President and head of the Ethics Office and Asset Management Compliance for Fidelity Investments (2012-present). Ms. Wondrack also serves as Chief Compliance Officer of Fidelity SelectCo, LLC (2014-present); Chief Compliance Officer of Impresa Management LLC (2013-present); and Chief Compliance Officer of FMR Co., Inc., Fidelity Investments Money Management, Inc., Fidelity Management & Research (Japan) Inc., Fidelity Management & Research (U.K.) Inc., Fidelity Management & Research (Hong Kong), Fidelity Management & Research Company, Pyramis Global Advisors, LLC, and Strategic Advisers, Inc., Ballyrock Investment Advisors LLC, and Northern Neck Investors LLC (2012-present). Previously, Ms. Wondrack served as Senior Vice President and Chief Compliance Officer for Columbia Management Investment Advisers, LLC (2005-2012); Chief Compliance Officer for certain funds within the Columbia Family of Funds (2007-2012); and Senior Vice President of Compliance Risk Management at Bank of America (2005-2010).

Joseph F. Zambello (1957)

Year of Election or Appointment: 2011

Deputy Treasurer

 

Mr. Zambello also serves as Deputy Treasurer of other funds. Mr. Zambello is an employee of Fidelity Investments. Previously, Mr. Zambello served as Vice President of FMR's Program Management Group (2009-2011) and Vice President of the Transfer Agent Oversight Group (2005-2009).

Annual Report


Distributions (Unaudited)

The Board of Trustees of Fidelity Mega Cap Stock 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

Class A

08/11/14

08/08/14

$0.098

$0.341

Class T

08/11/14

08/08/14

$0.065

$0.341

Class B

08/11/14

08/08/14

$0.000

$0.337

Class C

08/11/14

08/08/14

$0.035

$0.341

The fund hereby designates as a capital gain dividend with respect to the taxable year ended June 30, 2014, $119,836,862, or, if subsequently determined to be different, the net capital gain of such year.

Class A, Class T, Class B and Class C designate 100% of the dividends distributed during the fiscal year as qualifying for the dividends-received deduction for corporate shareholders.

Class A, Class T, Class B and Class C designate 100% of the dividends distributed during the fiscal year as amounts which may be taken into account as a dividend for purposes of the maximum rate under Section 1(h)(11) of the Internal Revenue Code.

The fund will notify shareholders in January 2015 of amounts for use in preparing 2014 income tax returns.

Annual Report

Investment Adviser

Fidelity Management & Research Company

Boston, MA

Investment Sub-Advisers

FMR Co., Inc.

Fidelity Management & Research
(U.K.) Inc.

Fidelity Management & Research
(Hong Kong) Limited

Fidelity Management & Research
(Japan) Inc.

General Distributor

Fidelity Distributors Corporation

Smithfield, RI

Transfer and Service Agents

Fidelity Investments Institutional Operations Company, Inc.

Boston, MA

Fidelity Service Company, Inc.

Boston, MA

Custodian

JPMorgan Chase Bank

New York, NY

(Fidelity Investment logo)(registered trademark)

AGII-UANN-0814
1.855226.106

(Fidelity Investment logo)(registered trademark)

Fidelity Advisor®

Mega Cap Stock

Fund - Institutional Class

Annual Report

June 30, 2014

(Fidelity Cover Art)

Institutional Class
is a class of Fidelity®
Mega Cap Stock Fund


Contents

Performance

(Click Here)

How the fund has done over time.

Management's Discussion of Fund Performance

(Click Here)

The Portfolio Manager's review of fund performance and strategy.

Shareholder Expense Example

(Click Here)

An example of shareholder expenses.

Investment Changes

(Click Here)

A summary of major shifts in the fund's investments over the past six months.

Investments

(Click Here)

A complete list of the fund's investments with their market values.

Financial Statements

(Click Here)

Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights.

Notes

(Click Here)

Notes to the financial statements.

Report of Independent Registered Public Accounting Firm

(Click Here)

 

Trustees and Officers

(Click Here)

 

Distributions

(Click Here)

 

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. © 2014 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.advisor.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.

Annual Report


Performance: The Bottom Line

Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' 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 $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.

Average Annual Total Returns

Periods ended June 30, 2014

Past 1
year

Past 5
years

Past 10
Years

  Institutional Class A, B

24.23%

19.67%

8.23%

A The initial offering of Institutional Class shares took place on February 5, 2008. Returns prior to February 5, 2008, are those of Fidelity® Mega Cap Stock Fund, the original class of the fund.

B Prior to December 1, 2007, the fund operated under certain different investment policies. 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® Mega Cap Stock Fund - Institutional Class on June 30, 2004. 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. See footnote A above for additional information regarding the performance of Institutional Class.

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Annual Report


Management's Discussion of Fund Performance

Market Recap: Despite intermittent volatility driven by geopolitical concerns, stocks posted a series of new highs during the 12 months ending June 30, 2014, amid a decidedly favorable environment for riskier assets. The S&P 500® Index rose 24.61% for the year, helped by a rise in consumer spending and the lowest unemployment rate since 2008. The U.S. Federal Reserve balanced stimulus reductions with continued low interest rates, aiding a broad advance. All 10 S&P 500® market sectors gained, seven by more than 20%. Materials (+33%) was tops, as investors seemed to anticipate sustained economic improvement and renewed infrastructure build-outs. Information technology (+32%) benefited from large cash balances, rising dividends and stock buybacks, and a bevy of innovations. Health care (+30%) was aided by new drugs and predictable reimbursements. Conversely, the biggest laggard, telecommunication services (+5%), battled slow growth and stiff pricing competition. Across size and style segments: overall, investors showed some preference for large-cap stocks over small-caps and growth stocks over value, although market leadership rotated during the year. With the "risk-on" trade alive and well, the growth-oriented Nasdaq Composite Index® flourished, advancing 31.17%, while the blue-chip Dow Jones Industrial AverageSM delivered a more subdued 15.56% return.

Comments from Matthew Fruhan, Portfolio Manager of Fidelity Advisor® Mega Cap Stock Fund: For the year, the fund's Class A, Class T, Class B and Class C shares gained 23.88%, 23.54%, 22.82% and 22.90%, respectively (excluding sales charges). For comparison, the mega-cap proxy Russell Top 200® Index returned 24.69% and the S&P 500® Index advanced 24.61%. Relative to the Russell index, it hurt the most to overweight big-box retailer Target, which was among the fund's biggest holdings. The lingering effects of the firm's troubled expansion into Canada and a holiday-season credit breach continued to weigh on the stock, but this weak stretch allowed me to add notable exposure at a valuation I liked. In January, I established an underweight stake in Facebook, which detracted as shares of the social-media giant outperformed. Stock selection and an overweight in financials detracted, including investment banks JPMorgan Chase and Citigroup, both of which were among the fund's largest holdings. Stock selection in consumer staples helped, including drugstore chain Walgreen, while an underweight in the underperforming shares of IBM added value.

Comments from Matthew Fruhan, Portfolio Manager of Fidelity Advisor® Mega Cap Stock Fund: For the year, the fund's Institutional Class shares gained 24.23%. By comparison, the mega-cap proxy Russell Top 200® Index returned 24.69% and the S&P 500® Index advanced 24.61%. Relative to the Russell index, it hurt the most to overweight big-box retailer Target, which was among the fund's biggest holdings. The lingering effects of the firm's troubled expansion into Canada and a holiday-season credit breach continued to weigh on the stock, but this weak stretch allowed me to add notable exposure at a valuation I liked. In January, I established an underweight stake in Facebook, which detracted as shares of the social-media giant outperformed. Stock selection and an overweight in financials detracted, including investment banks JPMorgan Chase and Citigroup, both of which were among the fund's largest holdings. Stock selection in consumer staples also helped, including drugstore chain Walgreen, while an underweight in the underperforming shares of IBM added value.

Annual Report

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.

Annual Report


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 (January 1, 2014 to June 30, 2014).

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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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.

Annual Report

 

Annualized
Expense Ratio
B

Beginning
Account Value
January 1, 2014

Ending
Account Value
June 30, 2014

Expenses Paid
During Period
*
January 1, 2014
to June 30, 2014

Class A

.95%

 

 

 

Actual

 

$ 1,000.00

$ 1,064.60

$ 4.86

Hypothetical A

 

$ 1,000.00

$ 1,020.08

$ 4.76

Class T

1.21%

 

 

 

Actual

 

$ 1,000.00

$ 1,063.20

$ 6.19

Hypothetical A

 

$ 1,000.00

$ 1,018.79

$ 6.06

Class B

1.75%

 

 

 

Actual

 

$ 1,000.00

$ 1,060.20

$ 8.94

Hypothetical A

 

$ 1,000.00

$ 1,016.12

$ 8.75

Class C

1.70%

 

 

 

Actual

 

$ 1,000.00

$ 1,060.50

$ 8.69

Hypothetical A

 

$ 1,000.00

$ 1,016.36

$ 8.50

Mega Cap Stock

.68%

 

 

 

Actual

 

$ 1,000.00

$ 1,066.10

$ 3.48

Hypothetical A

 

$ 1,000.00

$ 1,021.42

$ 3.41

Institutional Class

.71%

 

 

 

Actual

 

$ 1,000.00

$ 1,065.70

$ 3.64

Hypothetical A

 

$ 1,000.00

$ 1,021.27

$ 3.56

Class Z

.53%

 

 

 

Actual

 

$ 1,000.00

$ 1,066.30

$ 2.72

Hypothetical A

 

$ 1,000.00

$ 1,022.17

$ 2.66

A 5% return per year before expenses

B Annualized expense ratio reflects expenses net of applicable fee waivers.

* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

Annual Report


Investment Changes (Unaudited)

Top Ten Stocks as of June 30, 2014

 

% of fund's
net assets

% of fund's net assets
6 months ago

Apple, Inc.

4.6

4.6

JPMorgan Chase & Co.

4.2

4.3

Microsoft Corp.

3.5

3.3

General Electric Co.

3.1

3.3

Chevron Corp.

2.6

2.2

Comcast Corp. Class A (special) (non-vtg.)

2.5

2.0

Verizon Communications, Inc.

2.3

1.2

Citigroup, Inc.

2.3

2.6

Bank of America Corp.

2.1

2.1

Target Corp.

2.0

1.9

 

29.2

Top Five Market Sectors as of June 30, 2014

 

% of fund's
net assets

% of fund's net assets
6 months ago

Information Technology

23.4

22.6

Financials

18.3

19.2

Energy

12.0

12.3

Consumer Staples

10.9

11.0

Health Care

9.9

11.1

Asset Allocation (% of fund's net assets)

As of June 30, 2014*

As of December 31, 2013**

hhh1706667

Stocks 98.2%

 

hhh1706667

Stocks 98.8%

 

hhh1706715

Convertible Securities 0.0%

 

hhh1706670

Convertible Securities 0.1%

 

hhh1706673

Short-Term Investments
and Net Other Assets (Liabilities) 1.8%

 

hhh1706673

Short-Term Investments
and Net Other Assets (Liabilities) 1.1%

 

* Foreign investments

10.7%

 

** Foreign investments

10.7%

 

hhh1706762

Annual Report


Investments June 30, 2014

Showing Percentage of Net Assets

Common Stocks - 98.2%

Shares

Value

CONSUMER DISCRETIONARY - 9.3%

Hotels, Restaurants & Leisure - 1.2%

McDonald's Corp.

152,600

$ 15,372,924

Yum! Brands, Inc.

357,600

29,037,120

 

44,410,044

Media - 4.6%

Comcast Corp. Class A (special) (non-vtg.) (d)

1,674,100

89,279,753

The Walt Disney Co.

169,000

14,490,060

Time Warner, Inc.

784,900

55,139,225

Twenty-First Century Fox, Inc. Class A

193,500

6,801,525

 

165,710,563

Multiline Retail - 2.0%

Target Corp.

1,261,300

73,092,335

Specialty Retail - 1.5%

Lowe's Companies, Inc.

1,149,600

55,169,304

TOTAL CONSUMER DISCRETIONARY

338,382,246

CONSUMER STAPLES - 10.9%

Beverages - 3.7%

Diageo PLC

500,803

15,950,125

PepsiCo, Inc.

432,905

38,675,733

SABMiller PLC

312,289

18,107,213

The Coca-Cola Co.

1,476,100

62,527,596

 

135,260,667

Food & Staples Retailing - 1.8%

CVS Caremark Corp.

389,100

29,326,467

Walgreen Co.

511,897

37,946,925

 

67,273,392

Food Products - 0.4%

Kellogg Co.

216,400

14,217,480

Household Products - 1.8%

Procter & Gamble Co.

818,700

64,341,633

Tobacco - 3.2%

British American Tobacco PLC sponsored ADR

519,400

61,850,152

Philip Morris International, Inc.

490,530

41,356,584

Reynolds American, Inc.

197,600

11,925,160

 

115,131,896

TOTAL CONSUMER STAPLES

396,225,068

Common Stocks - continued

Shares

Value

ENERGY - 12.0%

Energy Equipment & Services - 1.4%

National Oilwell Varco, Inc.

124,100

$ 10,219,635

Schlumberger Ltd.

344,800

40,669,160

 

50,888,795

Oil, Gas & Consumable Fuels - 10.6%

Anadarko Petroleum Corp.

76,400

8,363,508

Apache Corp.

412,505

41,506,253

BG Group PLC

1,699,000

35,909,707

Canadian Natural Resources Ltd.

568,600

26,126,665

Chevron Corp.

715,700

93,434,635

Exxon Mobil Corp.

358,271

36,070,724

Imperial Oil Ltd.

373,900

19,703,291

Occidental Petroleum Corp.

521,300

53,501,019

Suncor Energy, Inc.

948,700

40,453,446

The Williams Companies, Inc.

510,200

29,698,742

 

384,767,990

TOTAL ENERGY

435,656,785

FINANCIALS - 18.3%

Banks - 12.5%

Bank of America Corp.

5,029,700

77,306,489

Citigroup, Inc.

1,809,370

85,221,327

JPMorgan Chase & Co.

2,701,500

155,660,430

PNC Financial Services Group, Inc.

239,800

21,354,190

Standard Chartered PLC (United Kingdom)

1,566,208

32,004,076

U.S. Bancorp

732,800

31,744,896

Wells Fargo & Co.

1,022,730

53,754,689

 

457,046,097

Capital Markets - 3.1%

BlackRock, Inc. Class A

19,000

6,072,400

Charles Schwab Corp.

982,100

26,447,953

Goldman Sachs Group, Inc.

22,700

3,800,888

Morgan Stanley, Inc.

1,186,000

38,343,380

State Street Corp.

568,900

38,264,214

 

112,928,835

Diversified Financial Services - 0.1%

IntercontinentalExchange Group, Inc.

10,500

1,983,450

Insurance - 2.6%

AIA Group Ltd.

92,200

463,355

Common Stocks - continued

Shares

Value

FINANCIALS - continued

Insurance - continued

American International Group, Inc.

637,100

$ 34,772,918

Marsh & McLennan Companies, Inc.

213,580

11,067,716

MetLife, Inc.

849,095

47,175,718

Ping An Insurance (Group) Co. of China Ltd. (H Shares)

101,500

785,766

 

94,265,473

TOTAL FINANCIALS

666,223,855

HEALTH CARE - 9.9%

Biotechnology - 1.3%

Amgen, Inc.

318,690

37,723,335

Biogen Idec, Inc. (a)

34,200

10,783,602

 

48,506,937

Health Care Equipment & Supplies - 0.8%

Abbott Laboratories

465,100

19,022,590

Stryker Corp.

96,100

8,103,152

 

27,125,742

Health Care Providers & Services - 2.5%

Express Scripts Holding Co. (a)

318,907

22,109,822

McKesson Corp.

202,400

37,688,904

UnitedHealth Group, Inc.

400,048

32,703,924

 

92,502,650

Life Sciences Tools & Services - 0.3%

Thermo Fisher Scientific, Inc.

94,500

11,151,000

Pharmaceuticals - 5.0%

AbbVie, Inc.

243,900

13,765,716

GlaxoSmithKline PLC sponsored ADR

619,000

33,104,120

Johnson & Johnson

565,900

59,204,458

Merck & Co., Inc.

477,300

27,611,805

Novartis AG sponsored ADR

170,400

15,426,312

Sanofi SA

80,024

8,505,715

Teva Pharmaceutical Industries Ltd. sponsored ADR

487,200

25,539,024

 

183,157,150

TOTAL HEALTH CARE

362,443,479

INDUSTRIALS - 9.4%

Aerospace & Defense - 1.9%

Honeywell International, Inc.

118,700

11,033,165

Common Stocks - continued

Shares

Value

INDUSTRIALS - continued

Aerospace & Defense - continued

The Boeing Co.

309,000

$ 39,314,070

United Technologies Corp.

176,200

20,342,290

 

70,689,525

Air Freight & Logistics - 1.8%

FedEx Corp.

117,800

17,832,564

United Parcel Service, Inc. Class B

475,000

48,763,500

 

66,596,064

Industrial Conglomerates - 3.4%

Danaher Corp.

146,570

11,539,456

General Electric Co.

4,323,800

113,629,464

 

125,168,920

Machinery - 0.3%

Caterpillar, Inc.

86,500

9,399,955

Road & Rail - 2.0%

CSX Corp.

1,160,700

35,761,167

Norfolk Southern Corp.

207,800

21,409,634

Union Pacific Corp.

148,190

14,781,953

 

71,952,754

TOTAL INDUSTRIALS

343,807,218

INFORMATION TECHNOLOGY - 23.4%

Communications Equipment - 3.1%

Cisco Systems, Inc.

2,773,400

68,918,990

QUALCOMM, Inc.

531,900

42,126,480

 

111,045,470

Internet Software & Services - 4.2%

Facebook, Inc. Class A (a)

103,597

6,971,042

Google, Inc.:

Class A (a)

109,350

63,933,665

Class C (a)

95,750

55,083,060

Yahoo!, Inc. (a)

781,639

27,458,978

 

153,446,745

IT Services - 3.8%

Accenture PLC Class A

69,100

5,586,044

Cognizant Technology Solutions Corp. Class A (a)

523,400

25,599,494

IBM Corp.

156,000

28,278,120

Common Stocks - continued

Shares

Value

INFORMATION TECHNOLOGY - continued

IT Services - continued

MasterCard, Inc. Class A

555,900

$ 40,841,973

Visa, Inc. Class A

187,100

39,423,841

 

139,729,472

Semiconductors & Semiconductor Equipment - 1.4%

Applied Materials, Inc.

699,625

15,776,544

Broadcom Corp. Class A

973,036

36,119,096

 

51,895,640

Software - 5.3%

Adobe Systems, Inc. (a)

253,200

18,321,552

Microsoft Corp.

3,024,500

126,121,650

Oracle Corp.

899,900

36,472,947

salesforce.com, Inc. (a)

199,200

11,569,536

 

192,485,685

Technology Hardware, Storage & Peripherals - 5.6%

Apple, Inc.

1,808,507

168,064,558

EMC Corp.

1,051,000

27,683,340

First Data Holdings, Inc. Class B (e)

2,429,231

9,716,924

 

205,464,822

TOTAL INFORMATION TECHNOLOGY

854,067,834

MATERIALS - 2.7%

Chemicals - 2.1%

E.I. du Pont de Nemours & Co.

333,900

21,850,416

Monsanto Co.

315,310

39,331,769

Syngenta AG (Switzerland)

43,089

15,919,199

 

77,101,384

Metals & Mining - 0.6%

Freeport-McMoRan Copper & Gold, Inc.

538,000

19,637,000

TOTAL MATERIALS

96,738,384

TELECOMMUNICATION SERVICES - 2.3%

Diversified Telecommunication Services - 2.3%

Verizon Communications, Inc.

1,743,725

85,320,464

TOTAL COMMON STOCKS

(Cost $2,718,899,411)


3,578,865,333

Money Market Funds - 2.6%

Shares

Value

Fidelity Cash Central Fund, 0.11% (b)

74,761,932

$ 74,761,932

Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c)

22,517,000

22,517,000

TOTAL MONEY MARKET FUNDS

(Cost $97,278,932)


97,278,932

TOTAL INVESTMENT PORTFOLIO - 100.8%

(Cost $2,816,178,343)

3,676,144,265

NET OTHER ASSETS (LIABILITIES) - (0.8)%

(30,832,045)

NET ASSETS - 100%

$ 3,645,312,220

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.

(c) Investment made with cash collateral received from securities on loan.

(d) Security or a portion of the security is on loan at period end.

(e) 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 $9,716,924 or 0.3% of net assets.

Additional information on each restricted holding is as follows:

Security

Acquisition Date

Acquisition Cost

First Data Holdings, Inc. Class B

6/26/14

$ 9,716,924

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

$ 27,717

Fidelity Securities Lending Cash Central Fund

89,556

Total

$ 117,273

Other Information

The following is a summary of the inputs used, as of June 30, 2014, 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 in the table 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:

Equities:

Consumer Discretionary

$ 338,382,246

$ 338,382,246

$ -

$ -

Consumer Staples

396,225,068

380,274,943

15,950,125

-

Energy

435,656,785

435,656,785

-

-

Financials

666,223,855

666,223,855

-

-

Health Care

362,443,479

353,937,764

8,505,715

-

Industrials

343,807,218

343,807,218

-

-

Information Technology

854,067,834

844,350,910

-

9,716,924

Materials

96,738,384

80,819,185

15,919,199

-

Telecommunication Services

85,320,464

85,320,464

-

-

Money Market Funds

97,278,932

97,278,932

-

-

Total Investments in Securities:

$ 3,676,144,265

$ 3,626,052,302

$ 40,375,039

$ 9,716,924

Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited):

United States of America

89.3%

United Kingdom

5.4%

Canada

2.4%

Curacao

1.1%

Others (Individually Less Than 1%)

1.8%

 

100.0%

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

Annual Report


Financial Statements

Statement of Assets and Liabilities

 

June 30, 2014

 

 

 

Assets

Investment in securities, at value (including securities loaned of $21,833,302) - See accompanying schedule:

Unaffiliated issuers (cost $2,718,899,411)

$ 3,578,865,333

 

Fidelity Central Funds (cost $97,278,932)

97,278,932

 

Total Investments (cost $2,816,178,343)

 

$ 3,676,144,265

Receivable for investments sold

6,265,877

Receivable for fund shares sold

5,281,399

Dividends receivable

4,490,136

Distributions receivable from Fidelity Central Funds

19,236

Receivable from investment adviser for expense reductions

386

Other receivables

124,808

Total assets

3,692,326,107

 

 

 

Liabilities

Payable for investments purchased

$ 19,178,333

Payable for fund shares redeemed

3,159,924

Accrued management fee

1,355,067

Distribution and service plan fees payable

36,521

Other affiliated payables

644,371

Other payables and accrued expenses

122,671

Collateral on securities loaned, at value

22,517,000

Total liabilities

47,013,887

 

 

 

Net Assets

$ 3,645,312,220

Net Assets consist of:

 

Paid in capital

$ 2,686,009,603

Undistributed net investment income

25,146,366

Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions

74,183,358

Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies

859,972,893

Net Assets

$ 3,645,312,220

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

Annual Report

Financial Statements - continued

Statement of Assets and Liabilities - continued

 

June 30, 2014

 

 

 

Calculation of Maximum Offering Price

Class A:
Net Asset Value
and redemption price per share ($77,335,409 ÷ 4,739,947 shares)

$ 16.32

 

 

 

Maximum offering price per share (100/94.25 of $16.32)

$ 17.32

Class T:
Net Asset Value
and redemption price per share ($15,728,415 ÷ 964,584 shares)

$ 16.31

 

 

 

Maximum offering price per share (100/96.50 of $16.31)

$ 16.90

Class B:
Net Asset Value
and offering price per share ($918,549 ÷ 56,656 shares)A

$ 16.21

 

 

 

Class C:
Net Asset Value
and offering price per share ($16,599,716 ÷ 1,029,726 shares)A

$ 16.12

 

 

 

Mega Cap Stock:
Net Asset Value
, offering price and redemption price per share ($2,860,197,294 ÷ 173,984,386 shares)

$ 16.44

 

 

 

Institutional Class:
Net Asset Value
, offering price and redemption price per share ($674,415,747 ÷ 41,154,574 shares)

$ 16.39

 

 

 

Class Z:
Net Asset Value
, offering price and redemption price per share ($117,090 ÷ 7,138 shares)

$ 16.40

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.

Annual Report

Statement of Operations

 

Year ended June 30, 2014

 

 

 

Investment Income

 

 

Dividends

 

$ 64,598,075

Interest

 

3

Income from Fidelity Central Funds

 

117,273

Total income

 

64,715,351

 

 

 

Expenses

Management fee

$ 13,636,133

Transfer agent fees

5,746,426

Distribution and service plan fees

284,809

Accounting and security lending fees

887,108

Custodian fees and expenses

71,971

Independent trustees' compensation

12,515

Registration fees

231,217

Audit

55,093

Legal

11,095

Interest

2,824

Miscellaneous

22,803

Total expenses before reductions

20,961,994

Expense reductions

(36,926)

20,925,068

Net investment income (loss)

43,790,283

Realized and Unrealized Gain (Loss)

Net realized gain (loss) on:

Investment securities:

 

 

Unaffiliated issuers

143,561,768

Foreign currency transactions

(8,194)

Total net realized gain (loss)

 

143,553,574

Change in net unrealized appreciation (depreciation) on:

Investment securities

457,006,470

Assets and liabilities in foreign currencies

12,169

Total change in net unrealized appreciation (depreciation)

 

457,018,639

Net gain (loss)

600,572,213

Net increase (decrease) in net assets resulting from operations

$ 644,362,496

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

Annual Report

Financial Statements - continued

Statement of Changes in Net Assets

 

Year ended
June 30,
2014

Year ended
June 30,
2013

Increase (Decrease) in Net Assets

 

 

Operations

 

 

Net investment income (loss)

$ 43,790,283

$ 35,288,813

Net realized gain (loss)

143,553,574

104,876,418

Change in net unrealized appreciation (depreciation)

457,018,639

321,854,450

Net increase (decrease) in net assets resulting
from operations

644,362,496

462,019,681

Distributions to shareholders from net investment income

(35,705,336)

(27,575,489)

Distributions to shareholders from net realized gain

(41,770,691)

-

Total distributions

(77,476,027)

(27,575,489)

Share transactions - net increase (decrease)

513,653,074

652,982,078

Total increase (decrease) in net assets

1,080,539,543

1,087,426,270

 

 

 

Net Assets

Beginning of period

2,564,772,677

1,477,346,407

End of period (including undistributed net investment income of $25,146,366 and undistributed net investment income of $17,061,419, respectively)

$ 3,645,312,220

$ 2,564,772,677

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

Annual Report

Financial Highlights - Class A

Years ended June 30,

2014

2013

2012

2011

2010

Selected Per-Share Data

 

 

 

 

 

Net asset value, beginning of period

$ 13.51

$ 11.05

$ 10.37

$ 8.07

$ 7.20

Income from Investment Operations

 

 

 

 

 

Net investment income (loss) C

  .18

  .17

  .13

  .07

  .06

Net realized and unrealized gain (loss)

  3.00

  2.43

  .64

  2.28

  .92

Total from investment operations

  3.18

  2.60

  .77

  2.35

  .98

Distributions from net investment income

  (.16)

  (.14)

  (.09)

  (.05)

  (.11)

Distributions from net realized gain

  (.21)

  -

  -

  -

  -

Total distributions

  (.37)

  (.14)

  (.09)

  (.05)

  (.11)

Net asset value, end of period

$ 16.32

$ 13.51

$ 11.05

$ 10.37

$ 8.07

Total ReturnA, B

  23.88%

  23.78%

  7.57%

  29.23%

  13.65%

Ratios to Average Net Assets D, F

 

 

 

 

 

Expenses before reductions

  .96%

  .98%

  1.02%

  1.06%

  1.10%

Expenses net of fee waivers, if any

  .96%

  .98%

  1.02%

  1.06%

  1.10%

Expenses net of all reductions

  .96%

  .98%

  1.02%

  1.06%

  1.10%

Net investment income (loss)

  1.19%

  1.37%

  1.28%

  .76%

  .66%

Supplemental Data

 

 

 

 

 

Net assets, end of period (000 omitted)

$ 77,335

$ 20,336

$ 8,527

$ 4,169

$ 2,238

Portfolio turnover rateE

  28%

  29%

  57%

  53%

  97%

A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.

B Total returns do not include the effect of the sales charges.

C Calculated based on average shares outstanding during the period.

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 Amount does not include the portfolio activity 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.

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

Annual Report

Financial Highlights - Class T

Years ended June 30,

2014

2013

2012

2011

2010

Selected Per-Share Data

 

 

 

 

 

Net asset value, beginning of period

$ 13.51

$ 11.05

$ 10.38

$ 8.07

$ 7.20

Income from Investment Operations

 

 

 

 

 

Net investment income (loss) C

  .14

  .14

  .10

  .05

  .03

Net realized and unrealized gain (loss)

  3.00

  2.43

  .64

  2.29

  .93

Total from investment operations

  3.14

  2.57

  .74

  2.34

  .96

Distributions from net investment income

  (.13)

  (.11)

  (.07)

  (.03)

  (.09)

Distributions from net realized gain

  (.21)

  -

  -

  -

  -

Total distributions

  (.34)

  (.11)

  (.07)

  (.03)

  (.09)

Net asset value, end of period

$ 16.31

$ 13.51

$ 11.05

$ 10.38

$ 8.07

Total ReturnA, B

  23.54%

  23.44%

  7.19%

  29.08%

  13.32%

Ratios to Average Net Assets D, F

 

 

 

 

 

Expenses before reductions

  1.22%

  1.26%

  1.32%

  1.32%

  1.36%

Expenses net of fee waivers, if any

  1.22%

  1.26%

  1.32%

  1.32%

  1.36%

Expenses net of all reductions

  1.22%

  1.26%

  1.32%

  1.32%

  1.35%

Net investment income (loss)

  .92%

  1.09%

  .98%

  .50%

  .41%

Supplemental Data

 

 

 

 

 

Net assets, end of period (000 omitted)

$ 15,728

$ 8,377

$ 2,293

$ 1,682

$ 1,073

Portfolio turnover rateE

  28%

  29%

  57%

  53%

  97%

A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.

B Total returns do not include the effect of the sales charges.

C Calculated based on average shares outstanding during the period.

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 Amount does not include the portfolio activity 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.

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

Annual Report

Financial Highlights - Class B

Years ended June 30,

2014

2013

2012

2011

2010

Selected Per-Share Data

 

 

 

 

 

Net asset value, beginning of period

$ 13.43

$ 10.97

$ 10.30

$ 8.02

$ 7.19

Income from Investment Operations

 

 

 

 

 

Net investment income (loss) C

  .06

  .07

  .05

  - H

  (.01)

Net realized and unrealized gain (loss)

  2.98

  2.43

  .63

  2.28

  .92

Total from investment operations

  3.04

  2.50

  .68

  2.28

  .91

Distributions from net investment income

  (.04)

  (.04)

  (.01)

  -

  (.08)

Distributions from net realized gain

  (.21)

  -

  -

  -

  -

Total distributions

  (.26) I

  (.04)

  (.01)

  -

  (.08)

Net asset value, end of period

$ 16.21

$ 13.43

$ 10.97

$ 10.30

$ 8.02

Total ReturnA, B

  22.82%

  22.83%

  6.62%

  28.43%

  12.60%

Ratios to Average Net Assets D, G

 

 

 

 

 

Expenses before reductions

  1.78%

  1.80%

  1.82%

  1.83%

  1.88%

Expenses net of fee waivers, if any

  1.78%

  1.80%

  1.82%

  1.83%

  1.88%

Expenses net of all reductions

  1.78%

  1.80%

  1.81%

  1.82%

  1.88%

Net investment income (loss)

  .37%

  .55%

  .49%

  .00% F

  (.12)%

Supplemental Data

 

 

 

 

 

Net assets, end of period (000 omitted)

$ 919

$ 716

$ 704

$ 764

$ 667

Portfolio turnover rateE

  28%

  29%

  57%

  53%

  97%

A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.

B Total returns do not include the effect of the contingent deferred sales charge.

C Calculated based on average shares outstanding during the period.

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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

F Amount represents less than .01%.

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 represents less than $.01 per share.

I Total distributions of $.26 per share is comprised of distributions from net investment income of $.044 and distributions from net realized gain of $.213 per share.

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

Annual Report

Financial Highlights - Class C

Years ended June 30,

2014

2013

2012

2011

2010

Selected Per-Share Data

 

 

 

 

 

Net asset value, beginning of period

$ 13.38

$ 10.93

$ 10.28

$ 8.01

$ 7.16

Income from Investment Operations

 

 

 

 

 

Net investment income (loss) C

  .06

  .07

  .05

  - G

  (.01)

Net realized and unrealized gain (loss)

  2.97

  2.42

  .64

  2.27

  .92

Total from investment operations

  3.03

  2.49

  .69

  2.27

  .91

Distributions from net investment income

  (.08)

  (.04)

  (.04)

  -

  (.06)

Distributions from net realized gain

  (.21)

  -

  -

  -

  -

Total distributions

  (.29)

  (.04)

  (.04)

  -

  (.06)

Net asset value, end of period

$ 16.12

$ 13.38

$ 10.93

$ 10.28

$ 8.01

Total ReturnA, B

  22.90%

  22.83%

  6.74%

  28.34%

  12.72%

Ratios to Average Net Assets D, F

 

 

 

 

 

Expenses before reductions

  1.71%

  1.75%

  1.79%

  1.81%

  1.86%

Expenses net of fee waivers, if any

  1.71%

  1.75%

  1.79%

  1.81%

  1.86%

Expenses net of all reductions

  1.71%

  1.75%

  1.79%

  1.81%

  1.85%

Net investment income (loss)

  .43%

  .59%

  .51%

  .01%

  (.10)%

Supplemental Data

 

 

 

 

 

Net assets, end of period (000 omitted)

$ 16,600

$ 7,938

$ 2,845

$ 1,913

$ 807

Portfolio turnover rateE

  28%

  29%

  57%

  53%

  97%

A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.

B Total returns do not include the effect of the contingent deferred sales charge.

C Calculated based on average shares outstanding during the period.

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 Amount does not include the portfolio activity 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 represents less than $.01 per share.

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

Annual Report

Financial Highlights - Mega Cap Stock

Years ended June 30,

2014

2013

2012

2011

2010

Selected Per-Share Data

 

 

 

 

 

Net asset value, beginning of period

$ 13.60

$ 11.11

$ 10.43

$ 8.11

$ 7.23

Income from Investment Operations

 

 

 

 

 

Net investment income (loss) B

  .22

  .20

  .16

  .10

  .08

Net realized and unrealized gain (loss)

  3.02

  2.46

  .64

  2.29

  .93

Total from investment operations

  3.24

  2.66

  .80

  2.39

  1.01

Distributions from net investment income

  (.19)

  (.17)

  (.12)

  (.07)

  (.13)

Distributions from net realized gain

  (.21)

  -

  -

  -

  -

Total distributions

  (.40)

  (.17)

  (.12)

  (.07)

  (.13)

Net asset value, end of period

$ 16.44

$ 13.60

$ 11.11

$ 10.43

$ 8.11

Total ReturnA

  24.18%

  24.17%

  7.83%

  29.61%

  13.93%

Ratios to Average Net Assets C, E

 

 

 

 

 

Expenses before reductions

  .68%

  .70%

  .76%

  .79%

  .81%

Expenses net of fee waivers, if any

  .68%

  .70%

  .76%

  .79%

  .80%

Expenses net of all reductions

  .68%

  .70%

  .75%

  .78%

  .79%

Net investment income (loss)

  1.47%

  1.64%

  1.55%

  1.04%

  .96%

Supplemental Data

 

 

 

 

 

Net assets, end of period (000 omitted)

$ 2,860,197

$ 2,214,592

$ 1,287,144

$ 785,233

$ 500,407

Portfolio turnover rateD

  28%

  29%

  57%

  53%

  97%

A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.

B Calculated based on average shares outstanding during the period.

C 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.

D Amount does not include the portfolio activity 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.

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

Annual Report

Financial Highlights - Institutional Class

Years ended June 30,

2014

2013

2012

2011

2010

Selected Per-Share Data

 

 

 

 

 

Net asset value, beginning of period

$ 13.55

$ 11.08

$ 10.40

$ 8.09

$ 7.22

Income from Investment Operations

 

 

 

 

 

Net investment income (loss) B

  .22

  .20

  .16

  .10

  .08

Net realized and unrealized gain (loss)

  3.02

  2.44

  .63

  2.30

  .92

Total from investment operations

  3.24

  2.64

  .79

  2.40

  1.00

Distributions from net investment income

  (.18)

  (.17)

  (.11)

  (.09)

  (.13)

Distributions from net realized gain

  (.21)

  -

  -

  -

  -

Total distributions

  (.40) F

  (.17)

  (.11)

  (.09)

  (.13)

Net asset value, end of period

$ 16.39

$ 13.55

$ 11.08

$ 10.40

$ 8.09

Total ReturnA

  24.23%

  24.06%

  7.77%

  29.74%

  13.89%

Ratios to Average Net Assets C, E

 

 

 

 

 

Expenses before reductions

  .71%

  .74%

  .78%

  .79%

  .88%

Expenses net of fee waivers, if any

  .71%

  .74%

  .78%

  .79%

  .88%

Expenses net of all reductions

  .71%

  .74%

  .77%

  .78%

  .87%

Net investment income (loss)

  1.43%

  1.61%

  1.53%

  1.04%

  .88%

Supplemental Data

 

 

 

 

 

Net assets, end of period (000 omitted)

$ 674,416

$ 312,814

$ 175,833

$ 136,768

$ 1,568

Portfolio turnover rateD

  28%

  29%

  57%

  53%

  97%

A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.

B Calculated based on average shares outstanding during the period.

C 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.

D Amount does not include the portfolio activity 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 Total distributions of $.40 per share is comprised of distributions from net investment income of $.182 and distributions from net realized gain of $.213 per share.

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

Annual Report

Financial Highlights - Class Z

Year ended June 30,

2014 G

Selected Per-Share Data

 

Net asset value, beginning of period

$ 14.31

Income from Investment Operations

 

Net investment income (loss) D

  .21

Net realized and unrealized gain (loss)

  2.20

Total from investment operations

  2.41

Distributions from net investment income

  (.10)

Distributions from net realized gain

  (.21)

Total distributions

  (.32) I

Net asset value, end of period

$ 16.40

Total ReturnB, C

  17.06%

Ratios to Average Net Assets E, H

 

Expenses before reductions

  .54%A

Expenses net of fee waivers, if any

  .54%A

Expenses net of all reductions

  .54%A

Net investment income (loss)

  1.59% A

Supplemental Data

 

Net assets, end of period (000 omitted)

$ 117

Portfolio turnover rateF

  28% A

A Annualized

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

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

D Calculated based on average shares outstanding during the period.

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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

G For the period August 13, 2013 (commencement of sale of shares) to June 30, 2014.

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. Expense ratios before reductions for start-up periods may not be representative of longer-term operation periods. 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 Total distributions of $.32 per share is comprised of distributions from net investment income of $.104 and distributions from net realized gain of $.213 per share.

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

Annual Report


Notes to Financial Statements

For the period ended June 30, 2014

1. Organization.

Fidelity Mega Cap Stock Fund (the Fund) is a fund of Fidelity Hastings Street Trust (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund commenced sale of Class Z shares on August 13, 2013. The Fund offers Class A, Class T, Class C, Mega Cap Stock, Institutional Class and Class Z shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.

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 .01%.

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:

Annual Report

Notes to Financial Statements - continued

3. Significant Accounting Policies - continued

Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (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 Fidelity Management & Research Company (FMR) Fair Value Committee (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 is responsible for approving and reporting to the Board all fair value determinations.

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.

Annual Report

3. Significant Accounting Policies - continued

Investment Valuation - continued

Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of June 30, 2014 is included at the end of the Fund's Schedule of Investments.

Foreign Currency. The Fund 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 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. 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.

Annual Report

Notes to Financial Statements - continued

3. Significant Accounting Policies - continued

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.

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 June 30, 2014, 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. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.

Distributions are 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 foreign currency transactions, equity-debt classifications, capital loss carryforwards, and losses deferred due to wash sales.

Annual Report

3. Significant Accounting Policies - continued

Income Tax Information and Distributions to Shareholders - continued

The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:

Gross unrealized appreciation

$ 868,594,923

Gross unrealized depreciation

(16,059,631)

Net unrealized appreciation (depreciation) on securities and other investments

$ 852,535,292

 

 

Tax Cost

$ 2,823,608,973

The tax-based components of distributable earnings as of period end were as follows:

Undistributed ordinary income

$ 28,109,862

Undistributed long-term capital gain

$ 78,650,493

Net unrealized appreciation (depreciation)

$ 852,542,261

The tax character of distributions paid was as follows:

 

June 30, 2014

June 30, 2013

Ordinary Income

$ 36,293,656

$ 27,575,489

Long-term Capital Gains

41,182,371

Total

$ 77,476,027

$ 27,575,489

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

4. Purchases and Sales of Investments.

Purchases and sales of securities, other than short-term securities, aggregated $1,277,032,508 and $853,056,484, respectively.

5. Fees and Other Transactions with Affiliates.

Management Fee. Fidelity Management & Research Company (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 .20% of the Fund's

Annual Report

Notes to Financial Statements - continued

5. Fees and Other Transactions with Affiliates - continued

Management Fee - continued

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 the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of 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 .45% 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%

$ 87,546

$ 3,362

Class T

.25%

.25%

63,304

232

Class B

.75%

.25%

9,175

6,896

Class C

.75%

.25%

124,784

55,523

 

 

 

$ 284,809

$ 66,013

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, Class B, 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.

Annual Report

5. Fees and Other Transactions with Affiliates - continued

Sales Load - continued

For the period, sales charge amounts retained by FDC were as follows:

 

Retained
by FDC

Class A

$ 20,530

Class T

3,915

Class B*

699

Class C*

897

 

$ 26,041

* 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, except for Class Z. FIIOC receives an asset-based fee of Class Z's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.

For the period, transfer agent fees for each class were as follows:

 

Amount

% of
Average
Net Assets

Class A

$ 74,123

.21

Class T

28,367

.22

Class B

2,566

.28

Class C

26,868

.22

Mega Cap Stock

4,669,765

.18

Institutional Class

944,693

.22

Class Z

44

.05*

 

$ 5,746,426

 

* Annualized

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.

Annual Report

Notes to Financial Statements - continued

5. Fees and Other Transactions with Affiliates - continued

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 $17,995 for the period.

Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR 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. The 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

Borrower

$ 9,205,303

.30%

$ 2,541

6. Committed Line of Credit.

The Fund participates with other funds managed by the investment adviser FMR 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 $5,038 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. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. 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. 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

Annual Report

7. Security Lending - continued

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 $89,556. During the period, there were no securities loaned to FCM.

8. Bank Borrowings.

The Fund is permitted to have bank borrowings for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity requirements. The Fund has established borrowing arrangements with certain banks. The interest rate on the borrowings is the bank's base rate, as revised from time to time. The average loan balance during the period for which loans were outstanding amounted to $8,939,500. The weighted average interest rate was .57%. The interest expense amounted to $283 under the bank borrowing program. At period end, there were no bank borrowings outstanding.

9. Expense Reductions.

The investment adviser voluntarily agreed to reimburse each class 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 were in reimbursement during the period:

 

Reimbursement

Class A

$ 125

Class T

56

Class B

4

Class C

50

Mega Cap Stock

11,993

Institutional Class

1,697

 

$ 13,925

In addition, the investment adviser reimbursed a portion of the Fund's operating expenses during the period in the amount of $6,711.

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 $16,290 for the period.

Annual Report

Notes to Financial Statements - continued

10. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

Years ended June 30,

2014 A

2013

From net investment income

 

 

Class A

$ 295,572

$ 137,534

Class T

98,011

36,492

Class B

2,617

2,304

Class C

56,227

13,133

Mega Cap Stock

30,989,923

23,359,421

Institutional Class

4,262,259

4,026,605

Class Z

727

-

Total

$ 35,705,336

$ 27,575,489

From net realized gain

 

 

Class A

$ 453,140

$ -

Class T

181,208

-

Class B

13,697

-

Class C

173,595

-

Mega Cap Stock

35,870,113

-

Institutional Class

5,077,450

-

Class Z

1,488

-

Total

$ 41,770,691

$ -

A Distributions for Class Z are for the period August 13, 2013 (commencement of sale of shares) to June 30, 2014.

11. Share Transactions.

Transactions for each class of shares were as follows:

 

Shares

Dollars

Years ended June 30,

2014 A

2013

2014 A

2013

Class A

 

 

 

 

Shares sold

3,913,806

1,001,677

$ 60,286,671

$ 12,394,211

Reinvestment of distributions

45,968

11,084

673,798

127,952

Shares redeemed

(725,328)

(279,053)

(11,077,893)

(3,495,724)

Net increase (decrease)

3,234,446

733,708

$ 49,882,576

$ 9,026,439

Class T

 

 

 

 

Shares sold

595,712

517,456

$ 8,877,747

$ 6,404,547

Reinvestment of distributions

18,863

3,084

276,847

35,826

Shares redeemed

(270,157)

(107,959)

(4,055,631)

(1,368,248)

Net increase (decrease)

344,418

412,581

$ 5,098,963

$ 5,072,125

Annual Report

11. Share Transactions - continued

 

Shares

Dollars

Years ended June 30,

2014 A

2013

2014 A

2013

Class B

 

 

 

 

Shares sold

27,198

9,952

$ 400,691

$ 125,476

Reinvestment of distributions

1,081

196

15,861

2,261

Shares redeemed

(24,976)

(20,917)

(377,365)

(255,293)

Net increase (decrease)

3,303

(10,769)

$ 39,187

$ (127,556)

Class C

 

 

 

 

Shares sold

504,584

448,373

$ 7,460,222

$ 5,664,292

Reinvestment of distributions

15,230

988

221,741

11,494

Shares redeemed

(83,515)

(116,347)

(1,262,211)

(1,448,415)

Net increase (decrease)

436,299

333,014

$ 6,419,752

$ 4,227,371

Mega Cap Stock

 

 

 

 

Shares sold

53,817,396

84,998,537

$ 817,611,772

$ 1,035,668,817

Reinvestment of distributions

4,142,626

1,836,891

61,008,516

21,294,763

Shares redeemed

(46,852,676)

(39,801,746)

(705,756,204)

(498,490,773)

Net increase (decrease)

11,107,346

47,033,682

$ 172,864,084

$ 558,472,807

Institutional Class

 

 

 

 

Shares sold

19,497,644

11,389,839

$ 301,200,514

$ 129,734,591

Reinvestment of distributions

626,527

338,467

9,201,440

3,911,623

Shares redeemed

(2,047,800)

(4,517,962)

(31,155,657)

(57,335,322)

Net increase (decrease)

18,076,371

7,210,344

$ 279,246,297

$ 76,310,892

Class Z

 

 

 

 

Shares sold

6,988

-

$ 100,000

$ -

Reinvestment of distributions

150

-

2,215

-

Net increase (decrease)

7,138

-

$ 102,215

$ -

A Share transactions for Class Z are for the period August 13, 2013 (commencement of sale of shares) to June 30, 2014.

12. 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.

At the end of the period, Strategic Advisers U.S. Opportunity Fund was the owner of record of approximately 11% of the total outstanding shares of the Fund.

Annual Report


Report of Independent Registered Public Accounting Firm

To the Trustees of Fidelity Hastings Street Trust and the Shareholders of Fidelity Mega Cap Stock Fund:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Mega Cap Stock Fund (a fund of Fidelity Hastings Street Trust) at June 30, 2014, 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 periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity Mega Cap Stock Fund's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements 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 are free of material misstatement. An audit 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, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at June 30, 2014 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

Boston, Massachusetts

August 12, 2014

Annual Report


Trustees and Officers

The Trustees, Member of the Advisory Board, 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. Except for James C. Curvey, each of the Trustees oversees 173 funds. Mr. Curvey oversees 397 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 (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. The officers and Advisory Board Member hold office without limit in time, except that any officer and 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.

Experience, Skills, Attributes, and Qualifications of the Fund's 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.

Annual Report

Board Structure and Oversight Function. James C. Curvey is an interested person (as defined in the 1940 Act) 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. Ned C. Lautenbach 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 equity and high income funds and another Board oversees Fidelity's investment-grade bond, money market, and asset allocation funds. The asset allocation funds may invest in Fidelity funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity funds overseen by each Board.

The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. For example, a working group comprised of Independent Trustees and FMR has worked and continues to work to review the Fidelity funds' valuation-related activities, reporting and risk management. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of FMR's risk management program for the Fidelity funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Fund's Trustees."

Annual Report

Trustees and Officers - continued

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.

Interested Trustees*:

Correspondence intended for each 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+

James C. Curvey (1935)

Year of Election or Appointment: 2007

Trustee

Chairman of the Board of Trustees

 

Mr. Curvey also serves as Trustee of other Fidelity funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (2009-present), and Vice Chairman (2007-present) and Director of FMR LLC. In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the Trustees of Villanova University. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (2009-2014), a Director of FMR (2007-2014), a Director of FMR Co., Inc. (2007-2014) and was the Vice Chairman (2006-2007) and Director (2000-2007) of FMR Corp.

Charles S. Morrison (1960)

Year of Election or Appointment: 2014

Trustee

 

Mr. Morrison also serves as Trustee of other funds. He serves as President, Asset Management (2014-present) and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.

* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR.

+ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for the fund.

Annual Report

Trustees and Officers - continued

Independent Trustees:

Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.

Name, Year of Birth; Principal Occupations and Other Relevant Experience+

Dennis J. Dirks (1948)

Year of Election or Appointment: 2005

Trustee

 

Mr. Dirks also serves as Trustee of other Fidelity funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), and as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008). Mr. Dirks is a member of the Independent Directors Council (IDC) Governing Council (2010-present) and Board of Directors for The Brookville Center for Children's Services, Inc. (2009-present).

Alan J. Lacy (1953)

Year of Election or Appointment: 2008

Trustee

 

Mr. Lacy also serves as Trustee of other Fidelity funds. Mr. Lacy serves as Senior Adviser (2007-present) of Oak Hill Capital Partners, L.P. (private equity). Mr. Lacy also served as Chief Executive Officer (2000-2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation and Sears, Roebuck and Co. (retail). In addition, Mr. Lacy serves as a member of the Board of Directors of Dave & Buster's Entertainment, Inc. (restaurant and entertainment complexes, 2010-present), Earth Fare, Inc. (retail grocery, 2012-present), The Hillman Companies, Inc. (hardware wholesalers, 2010-present), and Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). Mr. Lacy is a member of the Board of Trustees of The National Parks Conservation Association (2006-present). Previously, Mr. Lacy served as Chairman of the Board of Trustees of the National Parks Conservation Association (2008-2011) and as a member of the Board of Directors for the Western Union Company (global money transfer, 2006-2011).

Ned C. Lautenbach (1944)

Year of Election or Appointment: 2000

Trustee

Chairman of the Independent Trustees

 

Mr. Lautenbach also serves as Trustee of other Fidelity funds. Mr. Lautenbach currently serves as the Lead Director of the Eaton Corporation Board of Directors (diversified industrial, 1997-present). Mr. Lautenbach is Chairman of the Board of Directors of the Philharmonic Center for the Arts in Naples, Florida (2012-present) and a member of the Council on Foreign Relations (1994-present). Previously, Mr. Lautenbach was a Partner/Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007).

Joseph Mauriello (1944)

Year of Election or Appointment: 2008

Trustee

 

Mr. Mauriello also serves as Trustee of other Fidelity funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).

Robert W. Selander (1950)

Year of Election or Appointment: 2011

Trustee

 

Mr. Selander also serves as Trustee of other Fidelity funds. Previously, Mr. Selander served as a Member of the Advisory Board of other Fidelity funds (2011), and Executive Vice Chairman (2010), Chief Executive Officer (2009-2010), and President and Chief Executive Officer (1997-2009) of Mastercard, Inc.

Cornelia M. Small (1944)

Year of Election or Appointment: 2005

Trustee

 

Ms. Small also serves as Trustee of other Fidelity funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.

William S. Stavropoulos (1939)

Year of Election or Appointment: 2001

Trustee

Vice Chairman of the Independent Trustees

 

Mr. Stavropoulos also serves as Trustee of other Fidelity funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and Maersk Inc. (industrial conglomerate), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of the Naples Philharmonic Center for the Arts. Previously, Mr. Stavropoulos served as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).

David M. Thomas (1949)

Year of Election or Appointment: 2008

Trustee

 

Mr. Thomas also serves as Trustee of other Fidelity funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), and as a member of the Board of Directors of Interpublic Group of Companies, Inc. (marketing communication, 2004-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).

+ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for the fund.

Advisory Board Member and Officers:

Correspondence intended for each officer and Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.

Name, Year of Birth; Principal Occupation

Peter S. Lynch (1944)

Year of Election or Appointment: 2003

Member of the Advisory Board

 

Mr. Lynch also serves as Member of the Advisory Board of other Fidelity funds. Mr. Lynch is Vice Chairman and a Director of FMR and FMR Co., Inc. In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).

Elizabeth Paige Baumann (1968)

Year of Election or Appointment: 2012

Anti-Money Laundering (AML) Officer

 

Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer of FMR LLC (2012-present) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as Vice President and Deputy Anti-Money Laundering Officer (2007-2012).

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 (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. Mr. Davis is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (2003-2010).

Adrien E. Deberghes (1967)

Year of Election or Appointment: 2008

Deputy Treasurer

 

Mr. Deberghes also serves as an officer of other funds. He 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).

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. (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: 2008

Secretary and Chief Legal Officer (CLO)

 

Mr. Goebel serves as Secretary and CLO of other funds. Mr. Goebel also serves as Secretary of Fidelity SelectCo, LLC (2013-present), Fidelity Investments Money Management, Inc. (FIMM) (2010-present) and Fidelity Research and Analysis Company (FRAC) (2010-present); General Counsel, Secretary, and Senior Vice President of FMR (2008-present) and FMR Co., Inc. (2008-present); Chief Legal Officer of Fidelity Management & Research (Hong Kong) Limited (2008-present); and Assistant Secretary of Fidelity Management & Research (Japan) Inc. (2008-present) and Fidelity Management & Research (U.K.) Inc. (2008-present). Previously, Mr. Goebel served as Secretary and CLO of other Fidelity funds (2008-2013), 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). Mr. Goebel has been employed by FMR LLC or an affiliate since 2001.

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 President of FMR's Equity Division (2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager.

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 FMR's Program Management Group (2010-2013), and Vice President of Valuation Oversight (2008-2010).

Melissa M. Reilly (1971)

Year of Election or Appointment: 2014

Vice President of certain Equity Funds

 

Ms. Reilly also serves as Vice President of other funds. Ms. Reilly is an employee of Fidelity Investments (2004-present).

Kenneth B. Robins (1969)

Year of Election or Appointment: 2008

President and Treasurer

 

Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (2013-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served in other fund officer roles.

Stephen Sadoski (1971)

Year of Election or Appointment: 2012

Deputy Treasurer

 

Mr. Sadoski also serves as Deputy Treasurer of other funds. He is an employee of Fidelity Investments (2012-present) and has served in another fund officer role. Prior to joining Fidelity Investments, Mr. Sadoski served as an assistant chief accountant in the Division of Investment Management of the Securities and Exchange Commission (SEC) (2009-2012) and as a senior manager at Deloitte & Touche LLP (1997-2009).

Stacie M. Smith (1974)

Year of Election or Appointment: 2013

Deputy 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).

Renee Stagnone (1975)

Year of Election or Appointment: 2013

Deputy Treasurer

 

Ms. Stagnone also serves as Deputy Treasurer of other funds. Ms. Stagnone is an employee of Fidelity Investments.

Linda J. Wondrack (1964)

Year of Election or Appointment: 2014

Chief Compliance Officer

 

Ms. Wondrack also serves as Chief Compliance Officer of other funds. Ms. Wondrack is Executive Vice President and head of the Ethics Office and Asset Management Compliance for Fidelity Investments (2012-present). Ms. Wondrack also serves as Chief Compliance Officer of Fidelity SelectCo, LLC (2014-present); Chief Compliance Officer of Impresa Management LLC (2013-present); and Chief Compliance Officer of FMR Co., Inc., Fidelity Investments Money Management, Inc., Fidelity Management & Research (Japan) Inc., Fidelity Management & Research (U.K.) Inc., Fidelity Management & Research (Hong Kong), Fidelity Management & Research Company, Pyramis Global Advisors, LLC, and Strategic Advisers, Inc., Ballyrock Investment Advisors LLC, and Northern Neck Investors LLC (2012-present). Previously, Ms. Wondrack served as Senior Vice President and Chief Compliance Officer for Columbia Management Investment Advisers, LLC (2005-2012); Chief Compliance Officer for certain funds within the Columbia Family of Funds (2007-2012); and Senior Vice President of Compliance Risk Management at Bank of America (2005-2010).

Joseph F. Zambello (1957)

Year of Election or Appointment: 2011

Deputy Treasurer

 

Mr. Zambello also serves as Deputy Treasurer of other funds. Mr. Zambello is an employee of Fidelity Investments. Previously, Mr. Zambello served as Vice President of FMR's Program Management Group (2009-2011) and Vice President of the Transfer Agent Oversight Group (2005-2009).

Annual Report


Distributions (Unaudited)

The Board of Trustees of Fidelity Mega Cap Stock 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

Institutional Class

08/11/14

08/08/14

$0.056

$0.341

The fund hereby designates as a capital gain dividend with respect to the taxable year ended June 30, 2014, $119,836,862, or, if subsequently determined to be different, the net capital gain of such year.

Institutional Class designates 100% of the dividends distributed during the fiscal year as qualifying for the dividends-received deduction for corporate shareholders.

Institutional Class designates 100% of the dividends distributed during the fiscal year as amounts which may be taken into account as a dividend for purposes of the maximum rate under Section 1(h)(11) of the Internal Revenue Code.

The fund will notify shareholders in January 2015 of amounts for use in preparing 2014 income tax returns.

Annual Report

Investment Adviser

Fidelity Management & Research Company

Boston, MA

Investment Sub-Advisers

FMR Co., Inc.

Fidelity Management & Research
(U.K.) Inc.

Fidelity Management & Research
(Japan) Inc.

Fidelity Management & Research
(Hong Kong) Limited

General Distributor

Fidelity Distributors Corporation

Smithfield, RI

Transfer and Service Agents

Fidelity Investments Institutional Operations Company, Inc.

Boston, MA

Fidelity Service Company, Inc.

Boston, MA

Custodian

JPMorgan Chase Bank

New York, NY

(Fidelity Investment logo)(registered trademark)

AGIII-UANN-0814
1.855219.106

(Fidelity Investment logo)(registered trademark)

Fidelity Advisor®

Mega Cap Stock

Fund - Class Z

Annual Report

June 30, 2014

(Fidelity Cover Art)

Class Z
is a class of Fidelity®
Mega Cap Stock Fund


Contents

Performance

(Click Here)

How the fund has done over time.

Management's Discussion of Fund Performance

(Click Here)

The Portfolio Manager's review of fund performance and strategy.

Shareholder Expense Example

(Click Here)

An example of shareholder expenses.

Investment Changes

(Click Here)

A summary of major shifts in the fund's investments over the past six months.

Investments

(Click Here)

A complete list of the fund's investments with their market values.

Financial Statements

(Click Here)

Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights.

Notes

(Click Here)

Notes to the financial statements.

Report of Independent Registered Public Accounting Firm

(Click Here)

 

Trustees and Officers

(Click Here)

 

Distributions

(Click Here)

 

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. © 2014 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.advisor.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.

Annual Report


Performance: The Bottom Line

Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' 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 $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.

Average Annual Total Returns

Periods ended June 30, 2014

Past 1
year

Past 5
years

Past 10
Years

  Class Z A, B

24.40%

19.70%

8.24%

A The initial offering of Class Z shares took place on August 13, 2013. Returns between February 5, 2008 and August 13, 2013 are those of Institutional Class. Returns prior to February 5, 2008, are those of Fidelity® Mega Cap Stock Fund, the original class of the fund.

B Prior to December 1, 2007, the fund operated under certain different investment policies. 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® Mega Cap Stock Fund - Class Z on June 30, 2004. 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. See footnote A above for additional information regarding the performance of Class Z.

hhh1706774

Annual Report


Management's Discussion of Fund Performance

Market Recap: Despite intermittent volatility driven by geopolitical concerns, stocks posted a series of new highs during the 12 months ending June 30, 2014, amid a decidedly favorable environment for riskier assets. The S&P 500® Index rose 24.61% for the year, helped by a rise in consumer spending and the lowest unemployment rate since 2008. The U.S. Federal Reserve balanced stimulus reductions with continued low interest rates, aiding a broad advance. All 10 S&P 500® market sectors gained, seven by more than 20%. Materials (+33%) was tops, as investors seemed to anticipate sustained economic improvement and renewed infrastructure build-outs. Information technology (+32%) benefited from large cash balances, rising dividends and stock buybacks, and a bevy of innovations. Health care (+30%) was aided by new drugs and predictable reimbursements. Conversely, the biggest laggard, telecommunication services (+5%), battled slow growth and stiff pricing competition. Across size and style segments: overall, investors showed some preference for large-cap stocks over small-caps and growth stocks over value, although market leadership rotated during the year. With the "risk-on" trade alive and well, the growth-oriented Nasdaq Composite Index® flourished, advancing 31.17%, while the blue-chip Dow Jones Industrial AverageSM delivered a more subdued 15.56% return.

Comments from Matthew Fruhan, Portfolio Manager of Fidelity Advisor® Mega Cap Stock Fund: For the year, the fund's Class Z shares performed in line with the 24.69% and 24.61% returns of the mega-cap proxy Russell Top 200® Index and S&P 500® Index, respectively. (For specific class-level results, please refer to the performance section of this report.) Relative to the Russell index, it hurt the most to overweight big-box retailer Target, which was among the fund's biggest holdings. The lingering effects of the firm's troubled expansion into Canada and a holiday-season credit breach continued to weigh on the stock, but this weak stretch allowed me to add notable exposure at a valuation I liked. In January, I established an underweight stake in Facebook, which detracted as shares of the social-media giant outperformed. Stock selection and an overweight in financials detracted, including investment banks JPMorgan Chase and Citigroup, both of which were among the fund's largest holdings. Stock selection in consumer staples helped, including drugstore chain Walgreen, while an underweight in the underperforming shares of IBM 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.

Annual Report


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 (January 1, 2014 to June 30, 2014).

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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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.

Annual Report

 

Annualized
Expense Ratio
B

Beginning
Account Value
January 1, 2014

Ending
Account Value
June 30, 2014

Expenses Paid
During Period
*
January 1, 2014
to June 30, 2014

Class A

.95%

 

 

 

Actual

 

$ 1,000.00

$ 1,064.60

$ 4.86

Hypothetical A

 

$ 1,000.00

$ 1,020.08

$ 4.76

Class T

1.21%

 

 

 

Actual

 

$ 1,000.00

$ 1,063.20

$ 6.19

Hypothetical A

 

$ 1,000.00

$ 1,018.79

$ 6.06

Class B

1.75%

 

 

 

Actual

 

$ 1,000.00

$ 1,060.20

$ 8.94

Hypothetical A

 

$ 1,000.00

$ 1,016.12

$ 8.75

Class C

1.70%

 

 

 

Actual

 

$ 1,000.00

$ 1,060.50

$ 8.69

Hypothetical A

 

$ 1,000.00

$ 1,016.36

$ 8.50

Mega Cap Stock

.68%

 

 

 

Actual

 

$ 1,000.00

$ 1,066.10

$ 3.48

Hypothetical A

 

$ 1,000.00

$ 1,021.42

$ 3.41

Institutional Class

.71%

 

 

 

Actual

 

$ 1,000.00

$ 1,065.70

$ 3.64

Hypothetical A

 

$ 1,000.00

$ 1,021.27

$ 3.56

Class Z

.53%

 

 

 

Actual

 

$ 1,000.00

$ 1,066.30

$ 2.72

Hypothetical A

 

$ 1,000.00

$ 1,022.17

$ 2.66

A 5% return per year before expenses

B Annualized expense ratio reflects expenses net of applicable fee waivers.

* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

Annual Report


Investment Changes (Unaudited)

Top Ten Stocks as of June 30, 2014

 

% of fund's
net assets

% of fund's net assets
6 months ago

Apple, Inc.

4.6

4.6

JPMorgan Chase & Co.

4.2

4.3

Microsoft Corp.

3.5

3.3

General Electric Co.

3.1

3.3

Chevron Corp.

2.6

2.2

Comcast Corp. Class A (special) (non-vtg.)

2.5

2.0

Verizon Communications, Inc.

2.3

1.2

Citigroup, Inc.

2.3

2.6

Bank of America Corp.

2.1

2.1

Target Corp.

2.0

1.9

 

29.2

Top Five Market Sectors as of June 30, 2014

 

% of fund's
net assets

% of fund's net assets
6 months ago

Information Technology

23.4

22.6

Financials

18.3

19.2

Energy

12.0

12.3

Consumer Staples

10.9

11.0

Health Care

9.9

11.1

Asset Allocation (% of fund's net assets)

As of June 30, 2014*

As of December 31, 2013**

hhh1706667

Stocks 98.2%

 

hhh1706667

Stocks 98.8%

 

hhh1706715

Convertible Securities 0.0%

 

hhh1706670

Convertible Securities 0.1%

 

hhh1706673

Short-Term Investments
and Net Other Assets (Liabilities) 1.8%

 

hhh1706673

Short-Term Investments
and Net Other Assets (Liabilities) 1.1%

 

* Foreign investments

10.7%

 

** Foreign investments

10.7%

 

hhh1706782

Annual Report


Investments June 30, 2014

Showing Percentage of Net Assets

Common Stocks - 98.2%

Shares

Value

CONSUMER DISCRETIONARY - 9.3%

Hotels, Restaurants & Leisure - 1.2%

McDonald's Corp.

152,600

$ 15,372,924

Yum! Brands, Inc.

357,600

29,037,120

 

44,410,044

Media - 4.6%

Comcast Corp. Class A (special) (non-vtg.) (d)

1,674,100

89,279,753

The Walt Disney Co.

169,000

14,490,060

Time Warner, Inc.

784,900

55,139,225

Twenty-First Century Fox, Inc. Class A

193,500

6,801,525

 

165,710,563

Multiline Retail - 2.0%

Target Corp.

1,261,300

73,092,335

Specialty Retail - 1.5%

Lowe's Companies, Inc.

1,149,600

55,169,304

TOTAL CONSUMER DISCRETIONARY

338,382,246

CONSUMER STAPLES - 10.9%

Beverages - 3.7%

Diageo PLC

500,803

15,950,125

PepsiCo, Inc.

432,905

38,675,733

SABMiller PLC

312,289

18,107,213

The Coca-Cola Co.

1,476,100

62,527,596

 

135,260,667

Food & Staples Retailing - 1.8%

CVS Caremark Corp.

389,100

29,326,467

Walgreen Co.

511,897

37,946,925

 

67,273,392

Food Products - 0.4%

Kellogg Co.

216,400

14,217,480

Household Products - 1.8%

Procter & Gamble Co.

818,700

64,341,633

Tobacco - 3.2%

British American Tobacco PLC sponsored ADR

519,400

61,850,152

Philip Morris International, Inc.

490,530

41,356,584

Reynolds American, Inc.

197,600

11,925,160

 

115,131,896

TOTAL CONSUMER STAPLES

396,225,068

Common Stocks - continued

Shares

Value

ENERGY - 12.0%

Energy Equipment & Services - 1.4%

National Oilwell Varco, Inc.

124,100

$ 10,219,635

Schlumberger Ltd.

344,800

40,669,160

 

50,888,795

Oil, Gas & Consumable Fuels - 10.6%

Anadarko Petroleum Corp.

76,400

8,363,508

Apache Corp.

412,505

41,506,253

BG Group PLC

1,699,000

35,909,707

Canadian Natural Resources Ltd.

568,600

26,126,665

Chevron Corp.

715,700

93,434,635

Exxon Mobil Corp.

358,271

36,070,724

Imperial Oil Ltd.

373,900

19,703,291

Occidental Petroleum Corp.

521,300

53,501,019

Suncor Energy, Inc.

948,700

40,453,446

The Williams Companies, Inc.

510,200

29,698,742

 

384,767,990

TOTAL ENERGY

435,656,785

FINANCIALS - 18.3%

Banks - 12.5%

Bank of America Corp.

5,029,700

77,306,489

Citigroup, Inc.

1,809,370

85,221,327

JPMorgan Chase & Co.

2,701,500

155,660,430

PNC Financial Services Group, Inc.

239,800

21,354,190

Standard Chartered PLC (United Kingdom)

1,566,208

32,004,076

U.S. Bancorp

732,800

31,744,896

Wells Fargo & Co.

1,022,730

53,754,689

 

457,046,097

Capital Markets - 3.1%

BlackRock, Inc. Class A

19,000

6,072,400

Charles Schwab Corp.

982,100

26,447,953

Goldman Sachs Group, Inc.

22,700

3,800,888

Morgan Stanley, Inc.

1,186,000

38,343,380

State Street Corp.

568,900

38,264,214

 

112,928,835

Diversified Financial Services - 0.1%

IntercontinentalExchange Group, Inc.

10,500

1,983,450

Insurance - 2.6%

AIA Group Ltd.

92,200

463,355

Common Stocks - continued

Shares

Value

FINANCIALS - continued

Insurance - continued

American International Group, Inc.

637,100

$ 34,772,918

Marsh & McLennan Companies, Inc.

213,580

11,067,716

MetLife, Inc.

849,095

47,175,718

Ping An Insurance (Group) Co. of China Ltd. (H Shares)

101,500

785,766

 

94,265,473

TOTAL FINANCIALS

666,223,855

HEALTH CARE - 9.9%

Biotechnology - 1.3%

Amgen, Inc.

318,690

37,723,335

Biogen Idec, Inc. (a)

34,200

10,783,602

 

48,506,937

Health Care Equipment & Supplies - 0.8%

Abbott Laboratories

465,100

19,022,590

Stryker Corp.

96,100

8,103,152

 

27,125,742

Health Care Providers & Services - 2.5%

Express Scripts Holding Co. (a)

318,907

22,109,822

McKesson Corp.

202,400

37,688,904

UnitedHealth Group, Inc.

400,048

32,703,924

 

92,502,650

Life Sciences Tools & Services - 0.3%

Thermo Fisher Scientific, Inc.

94,500

11,151,000

Pharmaceuticals - 5.0%

AbbVie, Inc.

243,900

13,765,716

GlaxoSmithKline PLC sponsored ADR

619,000

33,104,120

Johnson & Johnson

565,900

59,204,458

Merck & Co., Inc.

477,300

27,611,805

Novartis AG sponsored ADR

170,400

15,426,312

Sanofi SA

80,024

8,505,715

Teva Pharmaceutical Industries Ltd. sponsored ADR

487,200

25,539,024

 

183,157,150

TOTAL HEALTH CARE

362,443,479

INDUSTRIALS - 9.4%

Aerospace & Defense - 1.9%

Honeywell International, Inc.

118,700

11,033,165

Common Stocks - continued

Shares

Value

INDUSTRIALS - continued

Aerospace & Defense - continued

The Boeing Co.

309,000

$ 39,314,070

United Technologies Corp.

176,200

20,342,290

 

70,689,525

Air Freight & Logistics - 1.8%

FedEx Corp.

117,800

17,832,564

United Parcel Service, Inc. Class B

475,000

48,763,500

 

66,596,064

Industrial Conglomerates - 3.4%

Danaher Corp.

146,570

11,539,456

General Electric Co.

4,323,800

113,629,464

 

125,168,920

Machinery - 0.3%

Caterpillar, Inc.

86,500

9,399,955

Road & Rail - 2.0%

CSX Corp.

1,160,700

35,761,167

Norfolk Southern Corp.

207,800

21,409,634

Union Pacific Corp.

148,190

14,781,953

 

71,952,754

TOTAL INDUSTRIALS

343,807,218

INFORMATION TECHNOLOGY - 23.4%

Communications Equipment - 3.1%

Cisco Systems, Inc.

2,773,400

68,918,990

QUALCOMM, Inc.

531,900

42,126,480

 

111,045,470

Internet Software & Services - 4.2%

Facebook, Inc. Class A (a)

103,597

6,971,042

Google, Inc.:

Class A (a)

109,350

63,933,665

Class C (a)

95,750

55,083,060

Yahoo!, Inc. (a)

781,639

27,458,978

 

153,446,745

IT Services - 3.8%

Accenture PLC Class A

69,100

5,586,044

Cognizant Technology Solutions Corp. Class A (a)

523,400

25,599,494

IBM Corp.

156,000

28,278,120

Common Stocks - continued

Shares

Value

INFORMATION TECHNOLOGY - continued

IT Services - continued

MasterCard, Inc. Class A

555,900

$ 40,841,973

Visa, Inc. Class A

187,100

39,423,841

 

139,729,472

Semiconductors & Semiconductor Equipment - 1.4%

Applied Materials, Inc.

699,625

15,776,544

Broadcom Corp. Class A

973,036

36,119,096

 

51,895,640

Software - 5.3%

Adobe Systems, Inc. (a)

253,200

18,321,552

Microsoft Corp.

3,024,500

126,121,650

Oracle Corp.

899,900

36,472,947

salesforce.com, Inc. (a)

199,200

11,569,536

 

192,485,685

Technology Hardware, Storage & Peripherals - 5.6%

Apple, Inc.

1,808,507

168,064,558

EMC Corp.

1,051,000

27,683,340

First Data Holdings, Inc. Class B (e)

2,429,231

9,716,924

 

205,464,822

TOTAL INFORMATION TECHNOLOGY

854,067,834

MATERIALS - 2.7%

Chemicals - 2.1%

E.I. du Pont de Nemours & Co.

333,900

21,850,416

Monsanto Co.

315,310

39,331,769

Syngenta AG (Switzerland)

43,089

15,919,199

 

77,101,384

Metals & Mining - 0.6%

Freeport-McMoRan Copper & Gold, Inc.

538,000

19,637,000

TOTAL MATERIALS

96,738,384

TELECOMMUNICATION SERVICES - 2.3%

Diversified Telecommunication Services - 2.3%

Verizon Communications, Inc.

1,743,725

85,320,464

TOTAL COMMON STOCKS

(Cost $2,718,899,411)


3,578,865,333

Money Market Funds - 2.6%

Shares

Value

Fidelity Cash Central Fund, 0.11% (b)

74,761,932

$ 74,761,932

Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c)

22,517,000

22,517,000

TOTAL MONEY MARKET FUNDS

(Cost $97,278,932)


97,278,932

TOTAL INVESTMENT PORTFOLIO - 100.8%

(Cost $2,816,178,343)

3,676,144,265

NET OTHER ASSETS (LIABILITIES) - (0.8)%

(30,832,045)

NET ASSETS - 100%

$ 3,645,312,220

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.

(c) Investment made with cash collateral received from securities on loan.

(d) Security or a portion of the security is on loan at period end.

(e) 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 $9,716,924 or 0.3% of net assets.

Additional information on each restricted holding is as follows:

Security

Acquisition Date

Acquisition Cost

First Data Holdings, Inc. Class B

6/26/14

$ 9,716,924

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

$ 27,717

Fidelity Securities Lending Cash Central Fund

89,556

Total

$ 117,273

Other Information

The following is a summary of the inputs used, as of June 30, 2014, 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 in the table 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:

Equities:

Consumer Discretionary

$ 338,382,246

$ 338,382,246

$ -

$ -

Consumer Staples

396,225,068

380,274,943

15,950,125

-

Energy

435,656,785

435,656,785

-

-

Financials

666,223,855

666,223,855

-

-

Health Care

362,443,479

353,937,764

8,505,715

-

Industrials

343,807,218

343,807,218

-

-

Information Technology

854,067,834

844,350,910

-

9,716,924

Materials

96,738,384

80,819,185

15,919,199

-

Telecommunication Services

85,320,464

85,320,464

-

-

Money Market Funds

97,278,932

97,278,932

-

-

Total Investments in Securities:

$ 3,676,144,265

$ 3,626,052,302

$ 40,375,039

$ 9,716,924

Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited):

United States of America

89.3%

United Kingdom

5.4%

Canada

2.4%

Curacao

1.1%

Others (Individually Less Than 1%)

1.8%

 

100.0%

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

Annual Report


Financial Statements

Statement of Assets and Liabilities

 

June 30, 2014

 

 

 

Assets

Investment in securities, at value (including securities loaned of $21,833,302) - See accompanying schedule:

Unaffiliated issuers (cost $2,718,899,411)

$ 3,578,865,333

 

Fidelity Central Funds (cost $97,278,932)

97,278,932

 

Total Investments (cost $2,816,178,343)

 

$ 3,676,144,265

Receivable for investments sold

6,265,877

Receivable for fund shares sold

5,281,399

Dividends receivable

4,490,136

Distributions receivable from Fidelity Central Funds

19,236

Receivable from investment adviser for expense reductions

386

Other receivables

124,808

Total assets

3,692,326,107

 

 

 

Liabilities

Payable for investments purchased

$ 19,178,333

Payable for fund shares redeemed

3,159,924

Accrued management fee

1,355,067

Distribution and service plan fees payable

36,521

Other affiliated payables

644,371

Other payables and accrued expenses

122,671

Collateral on securities loaned, at value

22,517,000

Total liabilities

47,013,887

 

 

 

Net Assets

$ 3,645,312,220

Net Assets consist of:

 

Paid in capital

$ 2,686,009,603

Undistributed net investment income

25,146,366

Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions

74,183,358

Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies

859,972,893

Net Assets

$ 3,645,312,220

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

Annual Report

Financial Statements - continued

Statement of Assets and Liabilities - continued

 

June 30, 2014

 

 

 

Calculation of Maximum Offering Price

Class A:
Net Asset Value
and redemption price per share ($77,335,409 ÷ 4,739,947 shares)

$ 16.32

 

 

 

Maximum offering price per share (100/94.25 of $16.32)

$ 17.32

Class T:
Net Asset Value
and redemption price per share ($15,728,415 ÷ 964,584 shares)

$ 16.31

 

 

 

Maximum offering price per share (100/96.50 of $16.31)

$ 16.90

Class B:
Net Asset Value
and offering price per share ($918,549 ÷ 56,656 shares)A

$ 16.21

 

 

 

Class C:
Net Asset Value
and offering price per share ($16,599,716 ÷ 1,029,726 shares)A

$ 16.12

 

 

 

Mega Cap Stock:
Net Asset Value
, offering price and redemption price per share ($2,860,197,294 ÷ 173,984,386 shares)

$ 16.44

 

 

 

Institutional Class:
Net Asset Value
, offering price and redemption price per share ($674,415,747 ÷ 41,154,574 shares)

$ 16.39

 

 

 

Class Z:
Net Asset Value
, offering price and redemption price per share ($117,090 ÷ 7,138 shares)

$ 16.40

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.

Annual Report

Statement of Operations

 

Year ended June 30, 2014

 

 

 

Investment Income

 

 

Dividends

 

$ 64,598,075

Interest

 

3

Income from Fidelity Central Funds

 

117,273

Total income

 

64,715,351

 

 

 

Expenses

Management fee

$ 13,636,133

Transfer agent fees

5,746,426

Distribution and service plan fees

284,809

Accounting and security lending fees

887,108

Custodian fees and expenses

71,971

Independent trustees' compensation

12,515

Registration fees

231,217

Audit

55,093

Legal

11,095

Interest

2,824

Miscellaneous

22,803

Total expenses before reductions

20,961,994

Expense reductions

(36,926)

20,925,068

Net investment income (loss)

43,790,283

Realized and Unrealized Gain (Loss)

Net realized gain (loss) on:

Investment securities:

 

 

Unaffiliated issuers

143,561,768

Foreign currency transactions

(8,194)

Total net realized gain (loss)

 

143,553,574

Change in net unrealized appreciation (depreciation) on:

Investment securities

457,006,470

Assets and liabilities in foreign currencies

12,169

Total change in net unrealized appreciation (depreciation)

 

457,018,639

Net gain (loss)

600,572,213

Net increase (decrease) in net assets resulting from operations

$ 644,362,496

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

Annual Report

Financial Statements - continued

Statement of Changes in Net Assets

 

Year ended
June 30,
2014

Year ended
June 30,
2013

Increase (Decrease) in Net Assets

 

 

Operations

 

 

Net investment income (loss)

$ 43,790,283

$ 35,288,813

Net realized gain (loss)

143,553,574

104,876,418

Change in net unrealized appreciation (depreciation)

457,018,639

321,854,450

Net increase (decrease) in net assets resulting
from operations

644,362,496

462,019,681

Distributions to shareholders from net investment income

(35,705,336)

(27,575,489)

Distributions to shareholders from net realized gain

(41,770,691)

-

Total distributions

(77,476,027)

(27,575,489)

Share transactions - net increase (decrease)

513,653,074

652,982,078

Total increase (decrease) in net assets

1,080,539,543

1,087,426,270

 

 

 

Net Assets

Beginning of period

2,564,772,677

1,477,346,407

End of period (including undistributed net investment income of $25,146,366 and undistributed net investment income of $17,061,419, respectively)

$ 3,645,312,220

$ 2,564,772,677

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

Annual Report

Financial Highlights - Class A

Years ended June 30,

2014

2013

2012

2011

2010

Selected Per-Share Data

 

 

 

 

 

Net asset value, beginning of period

$ 13.51

$ 11.05

$ 10.37

$ 8.07

$ 7.20

Income from Investment Operations

 

 

 

 

 

Net investment income (loss) C

  .18

  .17

  .13

  .07

  .06

Net realized and unrealized gain (loss)

  3.00

  2.43

  .64

  2.28

  .92

Total from investment operations

  3.18

  2.60

  .77

  2.35

  .98

Distributions from net investment income

  (.16)

  (.14)

  (.09)

  (.05)

  (.11)

Distributions from net realized gain

  (.21)

  -

  -

  -

  -

Total distributions

  (.37)

  (.14)

  (.09)

  (.05)

  (.11)

Net asset value, end of period

$ 16.32

$ 13.51

$ 11.05

$ 10.37

$ 8.07

Total ReturnA, B

  23.88%

  23.78%

  7.57%

  29.23%

  13.65%

Ratios to Average Net Assets D, F

 

 

 

 

 

Expenses before reductions

  .96%

  .98%

  1.02%

  1.06%

  1.10%

Expenses net of fee waivers, if any

  .96%

  .98%

  1.02%

  1.06%

  1.10%

Expenses net of all reductions

  .96%

  .98%

  1.02%

  1.06%

  1.10%

Net investment income (loss)

  1.19%

  1.37%

  1.28%

  .76%

  .66%

Supplemental Data

 

 

 

 

 

Net assets, end of period (000 omitted)

$ 77,335

$ 20,336

$ 8,527

$ 4,169

$ 2,238

Portfolio turnover rateE

  28%

  29%

  57%

  53%

  97%

A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.

B Total returns do not include the effect of the sales charges.

C Calculated based on average shares outstanding during the period.

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 Amount does not include the portfolio activity 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.

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

Annual Report

Financial Highlights - Class T

Years ended June 30,

2014

2013

2012

2011

2010

Selected Per-Share Data

 

 

 

 

 

Net asset value, beginning of period

$ 13.51

$ 11.05

$ 10.38

$ 8.07

$ 7.20

Income from Investment Operations

 

 

 

 

 

Net investment income (loss) C

  .14

  .14

  .10

  .05

  .03

Net realized and unrealized gain (loss)

  3.00

  2.43

  .64

  2.29

  .93

Total from investment operations

  3.14

  2.57

  .74

  2.34

  .96

Distributions from net investment income

  (.13)

  (.11)

  (.07)

  (.03)

  (.09)

Distributions from net realized gain

  (.21)

  -

  -

  -

  -

Total distributions

  (.34)

  (.11)

  (.07)

  (.03)

  (.09)

Net asset value, end of period

$ 16.31

$ 13.51

$ 11.05

$ 10.38

$ 8.07

Total ReturnA, B

  23.54%

  23.44%

  7.19%

  29.08%

  13.32%

Ratios to Average Net Assets D, F

 

 

 

 

 

Expenses before reductions

  1.22%

  1.26%

  1.32%

  1.32%

  1.36%

Expenses net of fee waivers, if any

  1.22%

  1.26%

  1.32%

  1.32%

  1.36%

Expenses net of all reductions

  1.22%

  1.26%

  1.32%

  1.32%

  1.35%

Net investment income (loss)

  .92%

  1.09%

  .98%

  .50%

  .41%

Supplemental Data

 

 

 

 

 

Net assets, end of period (000 omitted)

$ 15,728

$ 8,377

$ 2,293

$ 1,682

$ 1,073

Portfolio turnover rateE

  28%

  29%

  57%

  53%

  97%

A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.

B Total returns do not include the effect of the sales charges.

C Calculated based on average shares outstanding during the period.

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 Amount does not include the portfolio activity 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.

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

Annual Report

Financial Highlights - Class B

Years ended June 30,

2014

2013

2012

2011

2010

Selected Per-Share Data

 

 

 

 

 

Net asset value, beginning of period

$ 13.43

$ 10.97

$ 10.30

$ 8.02

$ 7.19

Income from Investment Operations

 

 

 

 

 

Net investment income (loss) C

  .06

  .07

  .05

  - H

  (.01)

Net realized and unrealized gain (loss)

  2.98

  2.43

  .63

  2.28

  .92

Total from investment operations

  3.04

  2.50

  .68

  2.28

  .91

Distributions from net investment income

  (.04)

  (.04)

  (.01)

  -

  (.08)

Distributions from net realized gain

  (.21)

  -

  -

  -

  -

Total distributions

  (.26) I

  (.04)

  (.01)

  -

  (.08)

Net asset value, end of period

$ 16.21

$ 13.43

$ 10.97

$ 10.30

$ 8.02

Total ReturnA, B

  22.82%

  22.83%

  6.62%

  28.43%

  12.60%

Ratios to Average Net Assets D, G

 

 

 

 

 

Expenses before reductions

  1.78%

  1.80%

  1.82%

  1.83%

  1.88%

Expenses net of fee waivers, if any

  1.78%

  1.80%

  1.82%

  1.83%

  1.88%

Expenses net of all reductions

  1.78%

  1.80%

  1.81%

  1.82%

  1.88%

Net investment income (loss)

  .37%

  .55%

  .49%

  .00% F

  (.12)%

Supplemental Data

 

 

 

 

 

Net assets, end of period (000 omitted)

$ 919

$ 716

$ 704

$ 764

$ 667

Portfolio turnover rateE

  28%

  29%

  57%

  53%

  97%

A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.

B Total returns do not include the effect of the contingent deferred sales charge.

C Calculated based on average shares outstanding during the period.

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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

F Amount represents less than .01%.

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 represents less than $.01 per share.

I Total distributions of $.26 per share is comprised of distributions from net investment income of $.044 and distributions from net realized gain of $.213 per share.

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

Annual Report

Financial Highlights - Class C

Years ended June 30,

2014

2013

2012

2011

2010

Selected Per-Share Data

 

 

 

 

 

Net asset value, beginning of period

$ 13.38

$ 10.93

$ 10.28

$ 8.01

$ 7.16

Income from Investment Operations

 

 

 

 

 

Net investment income (loss) C

  .06

  .07

  .05

  - G

  (.01)

Net realized and unrealized gain (loss)

  2.97

  2.42

  .64

  2.27

  .92

Total from investment operations

  3.03

  2.49

  .69

  2.27

  .91

Distributions from net investment income

  (.08)

  (.04)

  (.04)

  -

  (.06)

Distributions from net realized gain

  (.21)

  -

  -

  -

  -

Total distributions

  (.29)

  (.04)

  (.04)

  -

  (.06)

Net asset value, end of period

$ 16.12

$ 13.38

$ 10.93

$ 10.28

$ 8.01

Total ReturnA, B

  22.90%

  22.83%

  6.74%

  28.34%

  12.72%

Ratios to Average Net Assets D, F

 

 

 

 

 

Expenses before reductions

  1.71%

  1.75%

  1.79%

  1.81%

  1.86%

Expenses net of fee waivers, if any

  1.71%

  1.75%

  1.79%

  1.81%

  1.86%

Expenses net of all reductions

  1.71%

  1.75%

  1.79%

  1.81%

  1.85%

Net investment income (loss)

  .43%

  .59%

  .51%

  .01%

  (.10)%

Supplemental Data

 

 

 

 

 

Net assets, end of period (000 omitted)

$ 16,600

$ 7,938

$ 2,845

$ 1,913

$ 807

Portfolio turnover rateE

  28%

  29%

  57%

  53%

  97%

A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.

B Total returns do not include the effect of the contingent deferred sales charge.

C Calculated based on average shares outstanding during the period.

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 Amount does not include the portfolio activity 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 represents less than $.01 per share.

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

Annual Report

Financial Highlights - Mega Cap Stock

Years ended June 30,

2014

2013

2012

2011

2010

Selected Per-Share Data

 

 

 

 

 

Net asset value, beginning of period

$ 13.60

$ 11.11

$ 10.43

$ 8.11

$ 7.23

Income from Investment Operations

 

 

 

 

 

Net investment income (loss) B

  .22

  .20

  .16

  .10

  .08

Net realized and unrealized gain (loss)

  3.02

  2.46

  .64

  2.29

  .93

Total from investment operations

  3.24

  2.66

  .80

  2.39

  1.01

Distributions from net investment income

  (.19)

  (.17)

  (.12)

  (.07)

  (.13)

Distributions from net realized gain

  (.21)

  -

  -

  -

  -

Total distributions

  (.40)

  (.17)

  (.12)

  (.07)

  (.13)

Net asset value, end of period

$ 16.44

$ 13.60

$ 11.11

$ 10.43

$ 8.11

Total ReturnA

  24.18%

  24.17%

  7.83%

  29.61%

  13.93%

Ratios to Average Net Assets C, E

 

 

 

 

 

Expenses before reductions

  .68%

  .70%

  .76%

  .79%

  .81%

Expenses net of fee waivers, if any

  .68%

  .70%

  .76%

  .79%

  .80%

Expenses net of all reductions

  .68%

  .70%

  .75%

  .78%

  .79%

Net investment income (loss)

  1.47%

  1.64%

  1.55%

  1.04%

  .96%

Supplemental Data

 

 

 

 

 

Net assets, end of period (000 omitted)

$ 2,860,197

$ 2,214,592

$ 1,287,144

$ 785,233

$ 500,407

Portfolio turnover rateD

  28%

  29%

  57%

  53%

  97%

A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.

B Calculated based on average shares outstanding during the period.

C 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.

D Amount does not include the portfolio activity 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.

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

Annual Report

Financial Highlights - Institutional Class

Years ended June 30,

2014

2013

2012

2011

2010

Selected Per-Share Data

 

 

 

 

 

Net asset value, beginning of period

$ 13.55

$ 11.08

$ 10.40

$ 8.09

$ 7.22

Income from Investment Operations

 

 

 

 

 

Net investment income (loss) B

  .22

  .20

  .16

  .10

  .08

Net realized and unrealized gain (loss)

  3.02

  2.44

  .63

  2.30

  .92

Total from investment operations

  3.24

  2.64

  .79

  2.40

  1.00

Distributions from net investment income

  (.18)

  (.17)

  (.11)

  (.09)

  (.13)

Distributions from net realized gain

  (.21)

  -

  -

  -

  -

Total distributions

  (.40) F

  (.17)

  (.11)

  (.09)

  (.13)

Net asset value, end of period

$ 16.39

$ 13.55

$ 11.08

$ 10.40

$ 8.09

Total ReturnA

  24.23%

  24.06%

  7.77%

  29.74%

  13.89%

Ratios to Average Net Assets C, E

 

 

 

 

 

Expenses before reductions

  .71%

  .74%

  .78%

  .79%

  .88%

Expenses net of fee waivers, if any

  .71%

  .74%

  .78%

  .79%

  .88%

Expenses net of all reductions

  .71%

  .74%

  .77%

  .78%

  .87%

Net investment income (loss)

  1.43%

  1.61%

  1.53%

  1.04%

  .88%

Supplemental Data

 

 

 

 

 

Net assets, end of period (000 omitted)

$ 674,416

$ 312,814

$ 175,833

$ 136,768

$ 1,568

Portfolio turnover rateD

  28%

  29%

  57%

  53%

  97%

A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.

B Calculated based on average shares outstanding during the period.

C 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.

D Amount does not include the portfolio activity 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 Total distributions of $.40 per share is comprised of distributions from net investment income of $.182 and distributions from net realized gain of $.213 per share.

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

Annual Report

Financial Highlights - Class Z

Year ended June 30,

2014 G

Selected Per-Share Data

 

Net asset value, beginning of period

$ 14.31

Income from Investment Operations

 

Net investment income (loss) D

  .21

Net realized and unrealized gain (loss)

  2.20

Total from investment operations

  2.41

Distributions from net investment income

  (.10)

Distributions from net realized gain

  (.21)

Total distributions

  (.32) I

Net asset value, end of period

$ 16.40

Total ReturnB, C

  17.06%

Ratios to Average Net Assets E, H

 

Expenses before reductions

  .54%A

Expenses net of fee waivers, if any

  .54%A

Expenses net of all reductions

  .54%A

Net investment income (loss)

  1.59% A

Supplemental Data

 

Net assets, end of period (000 omitted)

$ 117

Portfolio turnover rateF

  28% A

A Annualized

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

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

D Calculated based on average shares outstanding during the period.

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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

G For the period August 13, 2013 (commencement of sale of shares) to June 30, 2014.

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. Expense ratios before reductions for start-up periods may not be representative of longer-term operation periods. 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 Total distributions of $.32 per share is comprised of distributions from net investment income of $.104 and distributions from net realized gain of $.213 per share.

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

Annual Report


Notes to Financial Statements

For the period ended June 30, 2014

1. Organization.

Fidelity Mega Cap Stock Fund (the Fund) is a fund of Fidelity Hastings Street Trust (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund commenced sale of Class Z shares on August 13, 2013. The Fund offers Class A, Class T, Class C, Mega Cap Stock, Institutional Class and Class Z shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.

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 .01%.

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:

Annual Report

Notes to Financial Statements - continued

3. Significant Accounting Policies - continued

Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (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 Fidelity Management & Research Company (FMR) Fair Value Committee (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 is responsible for approving and reporting to the Board all fair value determinations.

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.

Annual Report

3. Significant Accounting Policies - continued

Investment Valuation - continued

Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of June 30, 2014 is included at the end of the Fund's Schedule of Investments.

Foreign Currency. The Fund 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 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. 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.

Annual Report

Notes to Financial Statements - continued

3. Significant Accounting Policies - continued

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.

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 June 30, 2014, 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. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.

Distributions are 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 foreign currency transactions, equity-debt classifications, capital loss carryforwards, and losses deferred due to wash sales.

Annual Report

3. Significant Accounting Policies - continued

Income Tax Information and Distributions to Shareholders - continued

The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:

Gross unrealized appreciation

$ 868,594,923

Gross unrealized depreciation

(16,059,631)

Net unrealized appreciation (depreciation) on securities and other investments

$ 852,535,292

 

 

Tax Cost

$ 2,823,608,973

The tax-based components of distributable earnings as of period end were as follows:

Undistributed ordinary income

$ 28,109,862

Undistributed long-term capital gain

$ 78,650,493

Net unrealized appreciation (depreciation)

$ 852,542,261

The tax character of distributions paid was as follows:

 

June 30, 2014

June 30, 2013

Ordinary Income

$ 36,293,656

$ 27,575,489

Long-term Capital Gains

41,182,371

Total

$ 77,476,027

$ 27,575,489

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

4. Purchases and Sales of Investments.

Purchases and sales of securities, other than short-term securities, aggregated $1,277,032,508 and $853,056,484, respectively.

5. Fees and Other Transactions with Affiliates.

Management Fee. Fidelity Management & Research Company (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 .20% of the Fund's

Annual Report

Notes to Financial Statements - continued

5. Fees and Other Transactions with Affiliates - continued

Management Fee - continued

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 the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of 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 .45% 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%

$ 87,546

$ 3,362

Class T

.25%

.25%

63,304

232

Class B

.75%

.25%

9,175

6,896

Class C

.75%

.25%

124,784

55,523

 

 

 

$ 284,809

$ 66,013

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, Class B, 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.

Annual Report

5. Fees and Other Transactions with Affiliates - continued

Sales Load - continued

For the period, sales charge amounts retained by FDC were as follows:

 

Retained
by FDC

Class A

$ 20,530

Class T

3,915

Class B*

699

Class C*

897

 

$ 26,041

* 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, except for Class Z. FIIOC receives an asset-based fee of Class Z's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.

For the period, transfer agent fees for each class were as follows:

 

Amount

% of
Average
Net Assets

Class A

$ 74,123

.21

Class T

28,367

.22

Class B

2,566

.28

Class C

26,868

.22

Mega Cap Stock

4,669,765

.18

Institutional Class

944,693

.22

Class Z

44

.05*

 

$ 5,746,426

 

* Annualized

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.

Annual Report

Notes to Financial Statements - continued

5. Fees and Other Transactions with Affiliates - continued

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 $17,995 for the period.

Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR 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. The 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

Borrower

$ 9,205,303

.30%

$ 2,541

6. Committed Line of Credit.

The Fund participates with other funds managed by the investment adviser FMR 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 $5,038 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. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. 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. 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

Annual Report

7. Security Lending - continued

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 $89,556. During the period, there were no securities loaned to FCM.

8. Bank Borrowings.

The Fund is permitted to have bank borrowings for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity requirements. The Fund has established borrowing arrangements with certain banks. The interest rate on the borrowings is the bank's base rate, as revised from time to time. The average loan balance during the period for which loans were outstanding amounted to $8,939,500. The weighted average interest rate was .57%. The interest expense amounted to $283 under the bank borrowing program. At period end, there were no bank borrowings outstanding.

9. Expense Reductions.

The investment adviser voluntarily agreed to reimburse each class 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 were in reimbursement during the period:

 

Reimbursement

Class A

$ 125

Class T

56

Class B

4

Class C

50

Mega Cap Stock

11,993

Institutional Class

1,697

 

$ 13,925

In addition, the investment adviser reimbursed a portion of the Fund's operating expenses during the period in the amount of $6,711.

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 $16,290 for the period.

Annual Report

Notes to Financial Statements - continued

10. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

Years ended June 30,

2014 A

2013

From net investment income

 

 

Class A

$ 295,572

$ 137,534

Class T

98,011

36,492

Class B

2,617

2,304

Class C

56,227

13,133

Mega Cap Stock

30,989,923

23,359,421

Institutional Class

4,262,259

4,026,605

Class Z

727

-

Total

$ 35,705,336

$ 27,575,489

From net realized gain

 

 

Class A

$ 453,140

$ -

Class T

181,208

-

Class B

13,697

-

Class C

173,595

-

Mega Cap Stock

35,870,113

-

Institutional Class

5,077,450

-

Class Z

1,488

-

Total

$ 41,770,691

$ -

A Distributions for Class Z are for the period August 13, 2013 (commencement of sale of shares) to June 30, 2014.

11. Share Transactions.

Transactions for each class of shares were as follows:

 

Shares

Dollars

Years ended June 30,

2014 A

2013

2014 A

2013

Class A

 

 

 

 

Shares sold

3,913,806

1,001,677

$ 60,286,671

$ 12,394,211

Reinvestment of distributions

45,968

11,084

673,798

127,952

Shares redeemed

(725,328)

(279,053)

(11,077,893)

(3,495,724)

Net increase (decrease)

3,234,446

733,708

$ 49,882,576

$ 9,026,439

Class T

 

 

 

 

Shares sold

595,712

517,456

$ 8,877,747

$ 6,404,547

Reinvestment of distributions

18,863

3,084

276,847

35,826

Shares redeemed

(270,157)

(107,959)

(4,055,631)

(1,368,248)

Net increase (decrease)

344,418

412,581

$ 5,098,963

$ 5,072,125

Annual Report

11. Share Transactions - continued

 

Shares

Dollars

Years ended June 30,

2014 A

2013

2014 A

2013

Class B

 

 

 

 

Shares sold

27,198

9,952

$ 400,691

$ 125,476

Reinvestment of distributions

1,081

196

15,861

2,261

Shares redeemed

(24,976)

(20,917)

(377,365)

(255,293)

Net increase (decrease)

3,303

(10,769)

$ 39,187

$ (127,556)

Class C

 

 

 

 

Shares sold

504,584

448,373

$ 7,460,222

$ 5,664,292

Reinvestment of distributions

15,230

988

221,741

11,494

Shares redeemed

(83,515)

(116,347)

(1,262,211)

(1,448,415)

Net increase (decrease)

436,299

333,014

$ 6,419,752

$ 4,227,371

Mega Cap Stock

 

 

 

 

Shares sold

53,817,396

84,998,537

$ 817,611,772

$ 1,035,668,817

Reinvestment of distributions

4,142,626

1,836,891

61,008,516

21,294,763

Shares redeemed

(46,852,676)

(39,801,746)

(705,756,204)

(498,490,773)

Net increase (decrease)

11,107,346

47,033,682

$ 172,864,084

$ 558,472,807

Institutional Class

 

 

 

 

Shares sold

19,497,644

11,389,839

$ 301,200,514

$ 129,734,591

Reinvestment of distributions

626,527

338,467

9,201,440

3,911,623

Shares redeemed

(2,047,800)

(4,517,962)

(31,155,657)

(57,335,322)

Net increase (decrease)

18,076,371

7,210,344

$ 279,246,297

$ 76,310,892

Class Z

 

 

 

 

Shares sold

6,988

-

$ 100,000

$ -

Reinvestment of distributions

150

-

2,215

-

Net increase (decrease)

7,138

-

$ 102,215

$ -

A Share transactions for Class Z are for the period August 13, 2013 (commencement of sale of shares) to June 30, 2014.

12. 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.

At the end of the period, Strategic Advisers U.S. Opportunity Fund was the owner of record of approximately 11% of the total outstanding shares of the Fund.

Annual Report


Report of Independent Registered Public Accounting Firm

To the Trustees of Fidelity Hastings Street Trust and the Shareholders of Fidelity Mega Cap Stock Fund:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Mega Cap Stock Fund (a fund of Fidelity Hastings Street Trust) at June 30, 2014, 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 periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity Mega Cap Stock Fund's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements 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 are free of material misstatement. An audit 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, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at June 30, 2014 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

Boston, Massachusetts

August 12, 2014

Annual Report


Trustees and Officers

The Trustees, Member of the Advisory Board, 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. Except for James C. Curvey, each of the Trustees oversees 173 funds. Mr. Curvey oversees 397 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 (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. The officers and Advisory Board Member hold office without limit in time, except that any officer and 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.

Experience, Skills, Attributes, and Qualifications of the Fund's 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.

Annual Report

Board Structure and Oversight Function. James C. Curvey is an interested person (as defined in the 1940 Act) 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. Ned C. Lautenbach 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 equity and high income funds and another Board oversees Fidelity's investment-grade bond, money market, and asset allocation funds. The asset allocation funds may invest in Fidelity funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity funds overseen by each Board.

The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. For example, a working group comprised of Independent Trustees and FMR has worked and continues to work to review the Fidelity funds' valuation-related activities, reporting and risk management. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of FMR's risk management program for the Fidelity funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Fund's Trustees."

Annual Report

Trustees and Officers - continued

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.

Interested Trustees*:

Correspondence intended for each 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+

James C. Curvey (1935)

Year of Election or Appointment: 2007

Trustee

Chairman of the Board of Trustees

 

Mr. Curvey also serves as Trustee of other Fidelity funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (2009-present), and Vice Chairman (2007-present) and Director of FMR LLC. In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the Trustees of Villanova University. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (2009-2014), a Director of FMR (2007-2014), a Director of FMR Co., Inc. (2007-2014) and was the Vice Chairman (2006-2007) and Director (2000-2007) of FMR Corp.

Charles S. Morrison (1960)

Year of Election or Appointment: 2014

Trustee

 

Mr. Morrison also serves as Trustee of other funds. He serves as President, Asset Management (2014-present) and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.

* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR.

+ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for the fund.

Annual Report

Trustees and Officers - continued

Independent Trustees:

Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.

Name, Year of Birth; Principal Occupations and Other Relevant Experience+

Dennis J. Dirks (1948)

Year of Election or Appointment: 2005

Trustee

 

Mr. Dirks also serves as Trustee of other Fidelity funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), and as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008). Mr. Dirks is a member of the Independent Directors Council (IDC) Governing Council (2010-present) and Board of Directors for The Brookville Center for Children's Services, Inc. (2009-present).

Alan J. Lacy (1953)

Year of Election or Appointment: 2008

Trustee

 

Mr. Lacy also serves as Trustee of other Fidelity funds. Mr. Lacy serves as Senior Adviser (2007-present) of Oak Hill Capital Partners, L.P. (private equity). Mr. Lacy also served as Chief Executive Officer (2000-2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation and Sears, Roebuck and Co. (retail). In addition, Mr. Lacy serves as a member of the Board of Directors of Dave & Buster's Entertainment, Inc. (restaurant and entertainment complexes, 2010-present), Earth Fare, Inc. (retail grocery, 2012-present), The Hillman Companies, Inc. (hardware wholesalers, 2010-present), and Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). Mr. Lacy is a member of the Board of Trustees of The National Parks Conservation Association (2006-present). Previously, Mr. Lacy served as Chairman of the Board of Trustees of the National Parks Conservation Association (2008-2011) and as a member of the Board of Directors for the Western Union Company (global money transfer, 2006-2011).

Ned C. Lautenbach (1944)

Year of Election or Appointment: 2000

Trustee

Chairman of the Independent Trustees

 

Mr. Lautenbach also serves as Trustee of other Fidelity funds. Mr. Lautenbach currently serves as the Lead Director of the Eaton Corporation Board of Directors (diversified industrial, 1997-present). Mr. Lautenbach is Chairman of the Board of Directors of the Philharmonic Center for the Arts in Naples, Florida (2012-present) and a member of the Council on Foreign Relations (1994-present). Previously, Mr. Lautenbach was a Partner/Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007).

Joseph Mauriello (1944)

Year of Election or Appointment: 2008

Trustee

 

Mr. Mauriello also serves as Trustee of other Fidelity funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).

Robert W. Selander (1950)

Year of Election or Appointment: 2011

Trustee

 

Mr. Selander also serves as Trustee of other Fidelity funds. Previously, Mr. Selander served as a Member of the Advisory Board of other Fidelity funds (2011), and Executive Vice Chairman (2010), Chief Executive Officer (2009-2010), and President and Chief Executive Officer (1997-2009) of Mastercard, Inc.

Cornelia M. Small (1944)

Year of Election or Appointment: 2005

Trustee

 

Ms. Small also serves as Trustee of other Fidelity funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.

William S. Stavropoulos (1939)

Year of Election or Appointment: 2001

Trustee

Vice Chairman of the Independent Trustees

 

Mr. Stavropoulos also serves as Trustee of other Fidelity funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and Maersk Inc. (industrial conglomerate), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of the Naples Philharmonic Center for the Arts. Previously, Mr. Stavropoulos served as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).

David M. Thomas (1949)

Year of Election or Appointment: 2008

Trustee

 

Mr. Thomas also serves as Trustee of other Fidelity funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), and as a member of the Board of Directors of Interpublic Group of Companies, Inc. (marketing communication, 2004-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).

+ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for the fund.

Advisory Board Member and Officers:

Correspondence intended for each officer and Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.

Name, Year of Birth; Principal Occupation

Peter S. Lynch (1944)

Year of Election or Appointment: 2003

Member of the Advisory Board

 

Mr. Lynch also serves as Member of the Advisory Board of other Fidelity funds. Mr. Lynch is Vice Chairman and a Director of FMR and FMR Co., Inc. In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).

Elizabeth Paige Baumann (1968)

Year of Election or Appointment: 2012

Anti-Money Laundering (AML) Officer

 

Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer of FMR LLC (2012-present) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as Vice President and Deputy Anti-Money Laundering Officer (2007-2012).

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 (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. Mr. Davis is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (2003-2010).

Adrien E. Deberghes (1967)

Year of Election or Appointment: 2008

Deputy Treasurer

 

Mr. Deberghes also serves as an officer of other funds. He 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).

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. (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: 2008

Secretary and Chief Legal Officer (CLO)

 

Mr. Goebel serves as Secretary and CLO of other funds. Mr. Goebel also serves as Secretary of Fidelity SelectCo, LLC (2013-present), Fidelity Investments Money Management, Inc. (FIMM) (2010-present) and Fidelity Research and Analysis Company (FRAC) (2010-present); General Counsel, Secretary, and Senior Vice President of FMR (2008-present) and FMR Co., Inc. (2008-present); Chief Legal Officer of Fidelity Management & Research (Hong Kong) Limited (2008-present); and Assistant Secretary of Fidelity Management & Research (Japan) Inc. (2008-present) and Fidelity Management & Research (U.K.) Inc. (2008-present). Previously, Mr. Goebel served as Secretary and CLO of other Fidelity funds (2008-2013), 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). Mr. Goebel has been employed by FMR LLC or an affiliate since 2001.

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 President of FMR's Equity Division (2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager.

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 FMR's Program Management Group (2010-2013), and Vice President of Valuation Oversight (2008-2010).

Melissa M. Reilly (1971)

Year of Election or Appointment: 2014

Vice President of certain Equity Funds

 

Ms. Reilly also serves as Vice President of other funds. Ms. Reilly is an employee of Fidelity Investments (2004-present).

Kenneth B. Robins (1969)

Year of Election or Appointment: 2008

President and Treasurer

 

Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (2013-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served in other fund officer roles.

Stephen Sadoski (1971)

Year of Election or Appointment: 2012

Deputy Treasurer

 

Mr. Sadoski also serves as Deputy Treasurer of other funds. He is an employee of Fidelity Investments (2012-present) and has served in another fund officer role. Prior to joining Fidelity Investments, Mr. Sadoski served as an assistant chief accountant in the Division of Investment Management of the Securities and Exchange Commission (SEC) (2009-2012) and as a senior manager at Deloitte & Touche LLP (1997-2009).

Stacie M. Smith (1974)

Year of Election or Appointment: 2013

Deputy 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).

Renee Stagnone (1975)

Year of Election or Appointment: 2013

Deputy Treasurer

 

Ms. Stagnone also serves as Deputy Treasurer of other funds. Ms. Stagnone is an employee of Fidelity Investments.

Linda J. Wondrack (1964)

Year of Election or Appointment: 2014

Chief Compliance Officer

 

Ms. Wondrack also serves as Chief Compliance Officer of other funds. Ms. Wondrack is Executive Vice President and head of the Ethics Office and Asset Management Compliance for Fidelity Investments (2012-present). Ms. Wondrack also serves as Chief Compliance Officer of Fidelity SelectCo, LLC (2014-present); Chief Compliance Officer of Impresa Management LLC (2013-present); and Chief Compliance Officer of FMR Co., Inc., Fidelity Investments Money Management, Inc., Fidelity Management & Research (Japan) Inc., Fidelity Management & Research (U.K.) Inc., Fidelity Management & Research (Hong Kong), Fidelity Management & Research Company, Pyramis Global Advisors, LLC, and Strategic Advisers, Inc., Ballyrock Investment Advisors LLC, and Northern Neck Investors LLC (2012-present). Previously, Ms. Wondrack served as Senior Vice President and Chief Compliance Officer for Columbia Management Investment Advisers, LLC (2005-2012); Chief Compliance Officer for certain funds within the Columbia Family of Funds (2007-2012); and Senior Vice President of Compliance Risk Management at Bank of America (2005-2010).

Joseph F. Zambello (1957)

Year of Election or Appointment: 2011

Deputy Treasurer

 

Mr. Zambello also serves as Deputy Treasurer of other funds. Mr. Zambello is an employee of Fidelity Investments. Previously, Mr. Zambello served as Vice President of FMR's Program Management Group (2009-2011) and Vice President of the Transfer Agent Oversight Group (2005-2009).

Annual Report


Distributions (Unaudited)

The Board of Trustees of Fidelity Mega Cap Stock 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

Class Z

08/11/14

08/08/14

$0.115

$0.341

The fund hereby designates as a capital gain dividend with respect to the taxable year ended June 30, 2014, $119,836,862, or, if subsequently determined to be different, the net capital gain of such year.

Class Z designates 100% of the dividends distributed during the fiscal year as qualifying for the dividends-received deduction for corporate shareholders.

Class Z designates 100% of the dividends distributed during the fiscal year as amounts which may be taken into account as a dividend for purposes of the maximum rate under Section 1(h)(11) of the Internal Revenue Code.

The fund will notify shareholders in January 2015 of amounts for use in preparing 2014 income tax returns.

Annual Report

Investment Adviser

Fidelity Management & Research Company

Boston, MA

Investment Sub-Advisers

FMR Co., Inc.

Fidelity Management & Research
(U.K.) Inc.

Fidelity Management & Research
(Japan) Inc.

Fidelity Management & Research
(Hong Kong) Limited

General Distributor

Fidelity Distributors Corporation

Smithfield, RI

Transfer and Service Agents

Fidelity Investments Institutional Operations Company, Inc.

Boston, MA

Fidelity Service Company, Inc.

Boston, MA

Custodian

JPMorgan Chase Bank

New York, NY

(Fidelity Investment logo)(registered trademark)

AGIIZ-UANN-0814
1.9585879.100

Fidelity®

Fund

Annual Report

June 30, 2014

(Fidelity Cover Art)


Contents

Performance

(Click Here)

How the fund has done over time.

Management's Discussion of Fund Performance

(Click Here)

The Portfolio Manager's review of fund performance and strategy.

Shareholder Expense Example

(Click Here)

An example of shareholder expenses.

Investment Changes

(Click Here)

A summary of major shifts in the fund's investments over the past six months.

Investments

(Click Here)

A complete list of the fund's investments with their market values.

Financial Statements

(Click Here)

Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights.

Notes

(Click Here)

Notes to the financial statements.

Report of Independent Registered Public Accounting Firm

(Click Here)

 

Trustees and Officers

(Click Here)

 

Distributions

(Click Here)

 

To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 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. © 2014 FMR LLC. All rights reserved.

Annual Report

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.advisor.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.

Annual Report


Performance: The Bottom Line

Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' 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 $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.

Average Annual Total Returns

Periods ended June 30, 2014

Past 1
year

Past 5
years

Past 10
years

Fidelity® Fund

23.70%

16.50%

7.31%

$10,000 Over 10 Years

Let's say hypothetically that $10,000 was invested in Fidelity® Fund, a class of the fund, on June 30, 2004. 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.

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Annual Report


Management's Discussion of Fund Performance

Market Recap: Despite intermittent volatility driven by geopolitical concerns, stocks posted a series of new highs during the 12 months ending June 30, 2014, amid a decidedly favorable environment for riskier assets. The S&P 500® Index rose 24.61% for the year, helped by a rise in consumer spending and the lowest unemployment rate since 2008. The U.S. Federal Reserve balanced stimulus reductions with continued low interest rates, aiding a broad advance. All 10 S&P 500® market sectors gained, seven by more than 20%. Materials (+33%) was tops, as investors seemed to anticipate sustained economic improvement and renewed infrastructure build-outs. Information technology (+32%) benefited from large cash balances, rising dividends and stock buybacks, and a bevy of innovations. Health care (+30%) was aided by new drugs and predictable reimbursements. Conversely, the biggest laggard, telecommunication services (+5%), battled slow growth and stiff pricing competition. Across size and style segments: overall, investors showed some preference for large-cap stocks over small-caps and growth stocks over value, although market leadership rotated during the year. With the "risk-on" trade alive and well, the growth-oriented Nasdaq Composite Index® flourished, advancing 31.17%, while the blue-chip Dow Jones Industrial AverageSM delivered a more subdued 15.56% return.

Comments from John Avery, Portfolio Manager of Fidelity® Fund: For the year, the fund's Retail Class shares returned 23.70%, trailing the S&P 500®. Versus the index, software giant Microsoft was the fund's biggest detractor. This was mainly due to bad timing on my part, as I lightened up on our holdings or didn't own this index stock when it was gaining ground, although the fund had a slight overweighting here at period end. I sold our stake in index component and relative detractor Citigroup after the stock pulled back following the U.S. Federal Reserve's rejection of the bank's plan for boosting dividends and share buybacks. I also sold two other index stocks that were noteworthy detractors - networking equipment manufacturer Cisco Systems and homebuilder D.R. Horton - because I thought their prospects deteriorated, causing the fund to miss their subsequent rallies. Conversely, a non-index position in Netherlands-based NXP Semiconductors was the fund's top relative contributor. Increased demand for the company's chips helped its stock price more than double during the period. Other contributors included energy services provider Williams Companies, which benefited from the boom in shale oil and gas exploration and production, and social network provider Facebook.

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.

Annual Report


Shareholder Expense Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management 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 (January 1, 2014 to June 30, 2014).

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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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.

Annual Report

Shareholder Expense Example - continued

 

Annualized
Expense Ratio
B

Beginning
Account Value
January 1, 2014

Ending
Account Value
June 30, 2014

Expenses Paid
During Period
*
January 1, 2014 to June 30, 2014

Fidelity Fund

.53%

 

 

 

Actual

 

$ 1,000.00

$ 1,064.90

$ 2.71

HypotheticalA

 

$ 1,000.00

$ 1,022.17

$ 2.66

Class K

.41%

 

 

 

Actual

 

$ 1,000.00

$ 1,065.40

$ 2.10

HypotheticalA

 

$ 1,000.00

$ 1,022.76

$ 2.06

A 5% return per year before expenses

B Annualized expense ratio reflects expenses net of applicable fee waivers.

* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

Annual Report


Investment Changes (Unaudited)

Top Ten Stocks as of June 30, 2014

 

% of fund's
net assets

% of fund's net assets
6 months ago

Apple, Inc.

4.4

3.7

Wells Fargo & Co.

2.7

2.0

Microsoft Corp.

2.1

1.9

Johnson & Johnson

2.0

0.0

Monsanto Co.

2.0

2.0

The Walt Disney Co.

2.0

1.0

Google, Inc. Class A

2.0

3.8

Google, Inc. Class C

1.9

0.0

Amphenol Corp. Class A

1.9

1.8

Facebook, Inc. Class A

1.9

0.9

 

22.9

Top Five Market Sectors as of June 30, 2014

 

% of fund's
net assets

% of fund's net assets
6 months ago

Information Technology

20.2

18.2

Financials

15.8

18.5

Health Care

15.4

12.8

Industrials

13.9

13.7

Energy

12.0

6.6

Asset Allocation (% of fund's net assets)

As of June 30, 2014 *

As of December 31, 2013 **

hhh1706667

Stocks and
Equity Futures 98.2%

 

hhh1706667

Stocks 99.5%

 

hhh1706673

Short-Term
Investments and
Net Other Assets (Liabilities) 1.8%

 

hhh1706673

Short-Term
Investments and
Net Other Assets (Liabilities) 0.5%

 

* Foreign investments

8.5%

 

** Foreign investments

7.6%

 

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Annual Report


Investments June 30, 2014

Showing Percentage of Net Assets

Common Stocks - 96.4%

Shares

Value (000s)

CONSUMER DISCRETIONARY - 6.3%

Hotels, Restaurants & Leisure - 1.5%

Starbucks Corp.

1,145,098

$ 88,608

Media - 3.4%

Comcast Corp. Class A

1,607,000

86,264

The Walt Disney Co.

1,373,800

117,790

 

204,054

Specialty Retail - 0.6%

TJX Companies, Inc.

623,600

33,144

Textiles, Apparel & Luxury Goods - 0.8%

VF Corp.

800,000

50,400

TOTAL CONSUMER DISCRETIONARY

376,206

CONSUMER STAPLES - 5.9%

Beverages - 1.4%

The Coca-Cola Co.

2,000,000

84,720

Food & Staples Retailing - 1.8%

CVS Caremark Corp.

1,421,700

107,154

Food Products - 1.6%

Bunge Ltd.

588,800

44,537

Mondelez International, Inc.

1,375,000

51,714

 

96,251

Household Products - 0.8%

Procter & Gamble Co.

300,000

23,577

Svenska Cellulosa AB (SCA) (B Shares)

800,000

20,845

 

44,422

Tobacco - 0.3%

Lorillard, Inc.

300,000

18,291

TOTAL CONSUMER STAPLES

350,838

ENERGY - 12.0%

Energy Equipment & Services - 3.1%

Halliburton Co.

1,175,000

83,437

Schlumberger Ltd.

850,000

100,258

 

183,695

Oil, Gas & Consumable Fuels - 8.9%

Anadarko Petroleum Corp.

778,350

85,206

Cheniere Energy Partners LP

1,000,000

33,040

Chevron Corp.

500,000

65,275

Common Stocks - continued

Shares

Value (000s)

ENERGY - continued

Oil, Gas & Consumable Fuels - continued

EOG Resources, Inc.

940,000

$ 109,848

EQT Midstream Partners LP

550,000

53,207

MPLX LP

600,000

38,700

Phillips 66 Co.

850,000

68,366

The Williams Companies, Inc.

1,247,000

72,588

 

526,230

TOTAL ENERGY

709,925

FINANCIALS - 15.8%

Banks - 7.4%

Bank of America Corp.

6,877,200

105,703

JPMorgan Chase & Co.

1,857,000

107,000

SunTrust Banks, Inc.

1,664,900

66,696

Wells Fargo & Co.

2,969,167

156,059

 

435,458

Capital Markets - 2.2%

E*TRADE Financial Corp. (a)

1,481,700

31,501

Invesco Ltd.

1,200,000

45,300

Morgan Stanley, Inc.

1,698,700

54,919

 

131,720

Consumer Finance - 2.5%

American Express Co.

967,092

91,748

Discover Financial Services

923,400

57,232

 

148,980

Diversified Financial Services - 2.5%

Berkshire Hathaway, Inc. Class B (a)

600,000

75,936

McGraw Hill Financial, Inc.

835,625

69,382

 

145,318

Insurance - 0.8%

American International Group, Inc.

900,000

49,122

Real Estate Investment Trusts - 0.4%

Altisource Residential Corp. Class B

896,600

23,338

TOTAL FINANCIALS

933,936

HEALTH CARE - 15.4%

Biotechnology - 6.8%

Actelion Ltd.

175,000

22,141

Common Stocks - continued

Shares

Value (000s)

HEALTH CARE - continued

Biotechnology - continued

Alexion Pharmaceuticals, Inc. (a)

250,000

$ 39,063

Amgen, Inc.

719,900

85,215

Biogen Idec, Inc. (a)

319,600

100,773

Cubist Pharmaceuticals, Inc.

608,900

42,513

Genmab A/S (a)

470,000

20,061

Gilead Sciences, Inc. (a)

964,800

79,992

Seattle Genetics, Inc. (a)

314,300

12,022

 

401,780

Health Care Equipment & Supplies - 0.7%

Boston Scientific Corp. (a)

3,200,000

40,864

Health Care Providers & Services - 2.1%

HCA Holdings, Inc. (a)

450,000

25,371

Henry Schein, Inc. (a)

351,300

41,689

McKesson Corp.

300,000

55,863

 

122,923

Life Sciences Tools & Services - 1.6%

Illumina, Inc. (a)

251,864

44,968

Thermo Fisher Scientific, Inc.

450,000

53,100

 

98,068

Pharmaceuticals - 4.2%

Actavis PLC (a)

375,000

83,644

Johnson & Johnson

1,150,000

120,313

Teva Pharmaceutical Industries Ltd. sponsored ADR

500,000

26,210

Theravance, Inc. (a)(d)

746,233

22,223

 

252,390

TOTAL HEALTH CARE

916,025

INDUSTRIALS - 13.9%

Aerospace & Defense - 3.8%

Honeywell International, Inc.

704,200

65,455

Huntington Ingalls Industries, Inc.

350,000

33,107

Textron, Inc.

1,658,600

63,508

The Boeing Co.

515,000

65,523

 

227,593

Airlines - 0.7%

American Airlines Group, Inc.

1,000,000

42,960

Electrical Equipment - 0.5%

Generac Holdings, Inc.

579,965

28,267

Common Stocks - continued

Shares

Value (000s)

INDUSTRIALS - continued

Industrial Conglomerates - 3.1%

3M Co.

775,000

$ 111,011

Danaher Corp.

891,900

70,219

 

181,230

Machinery - 4.0%

Caterpillar, Inc.

950,000

103,237

Cummins, Inc.

589,000

90,877

Manitowoc Co., Inc.

1,350,000

44,361

 

238,475

Road & Rail - 1.8%

Union Pacific Corp.

1,061,600

105,895

TOTAL INDUSTRIALS

824,420

INFORMATION TECHNOLOGY - 20.2%

Electronic Equipment & Components - 1.9%

Amphenol Corp. Class A

1,172,738

112,982

Internet Software & Services - 6.4%

Facebook, Inc. Class A (a)

1,650,000

111,029

Google, Inc.:

Class A (a)

199,800

116,817

Class C (a)

199,800

114,941

Yahoo!, Inc. (a)

1,010,000

35,481

 

378,268

IT Services - 1.3%

Fidelity National Information Services, Inc.

760,700

41,641

Visa, Inc. Class A

180,600

38,054

 

79,695

Semiconductors & Semiconductor Equipment - 2.3%

Applied Materials, Inc.

1,850,000

41,718

Freescale Semiconductor, Inc. (a)(d)

1,209,485

28,423

NXP Semiconductors NV (a)

1,038,500

68,728

 

138,869

Software - 3.9%

Adobe Systems, Inc. (a)

1,175,000

85,023

Microsoft Corp.

3,000,000

125,100

salesforce.com, Inc. (a)

325,000

18,876

 

228,999

Common Stocks - continued

Shares

Value (000s)

INFORMATION TECHNOLOGY - continued

Technology Hardware, Storage & Peripherals - 4.4%

Apple, Inc.

2,790,200

$ 259,289

TOTAL INFORMATION TECHNOLOGY

1,198,102

MATERIALS - 6.9%

Chemicals - 4.0%

Airgas, Inc.

275,000

29,950

Celanese Corp. Class A

725,000

46,603

Methanex Corp.

112,800

6,974

Monsanto Co.

959,900

119,738

W.R. Grace & Co. (a)

348,100

32,906

 

236,171

Construction Materials - 2.1%

Martin Marietta Materials, Inc. (d)

502,000

66,289

Vulcan Materials Co.

902,954

57,563

 

123,852

Metals & Mining - 0.8%

Alcoa, Inc.

1,800,000

26,802

Freeport-McMoRan Copper & Gold, Inc.

600,000

21,900

 

48,702

TOTAL MATERIALS

408,725

TOTAL COMMON STOCKS

(Cost $4,219,319)


5,718,177

Nonconvertible Preferred Stocks - 0.7%

 

 

 

 

CONSUMER DISCRETIONARY - 0.7%

Automobiles - 0.7%

Porsche Automobil Holding SE (Germany)

425,000

44,281

TOTAL NONCONVERTIBLE PREFERRED STOCKS

(Cost $42,597)


44,281

U.S. Treasury Obligations - 0.1%

 

Principal Amount (000s)

 

U.S. Treasury Bills, yield at date of purchase 0.03% to 0.03% 8/21/14 (e)
(Cost $3,770)

$ 3,770


3,770

Money Market Funds - 3.7%

Shares

Value (000s)

Fidelity Cash Central Fund, 0.11% (b)

146,713,048

$ 146,713

Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c)

70,731,000

70,731

TOTAL MONEY MARKET FUNDS

(Cost $217,444)


217,444

TOTAL INVESTMENT PORTFOLIO - 100.9%

(Cost $4,483,130)

5,983,672

NET OTHER ASSETS (LIABILITIES) - (0.9)%

(53,826)

NET ASSETS - 100%

$ 5,929,846

Futures Contracts

Expiration Date

Underlying Face Amount at Value (000s)

Unrealized Appreciation/
(Depreciation) (000s)

Purchased

Equity Index Contracts

696 CME E-mini S&P 500 Index Contracts

Sept. 2014

$ 67,944

$ 453

 

The face value of futures purchased as a percentage of net assets is 1.1%

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.

(c) Investment made with cash collateral received from securities on loan.

(d) Security or a portion of the security is on loan at period end.

(e) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At period end, the value of securities pledged amounted to $2,870,000.

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
(Amounts in thousands)

Fidelity Cash Central Fund

$ 98

Fidelity Securities Lending Cash Central Fund

599

Total

$ 697

Other Information

The following is a summary of the inputs used, as of June 30, 2014, 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 in the table below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.

Valuation Inputs at Reporting Date:

Description
(Amounts in thousands)

Total

Level 1

Level 2

Level 3

Investments in Securities:

Equities:

Consumer Discretionary

$ 420,487

$ 420,487

$ -

$ -

Consumer Staples

350,838

350,838

-

-

Energy

709,925

709,925

-

-

Financials

933,936

933,936

-

-

Health Care

916,025

916,025

-

-

Industrials

824,420

824,420

-

-

Information Technology

1,198,102

1,198,102

-

-

Materials

408,725

408,725

-

-

U.S. Government and Government Agency Obligations

3,770

-

3,770

-

Money Market Funds

217,444

217,444

-

-

Total Investments in Securities:

$ 5,983,672

$ 5,979,902

$ 3,770

$ -

Derivative Instruments:

Assets

Futures Contracts

$ 453

$ 453

$ -

$ -

Value of Derivative Instruments

The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of June 30, 2014. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.

Primary Risk Exposure /
Derivative Type
(Amounts in thousands)

Value

 

Asset

Liability

Equity Risk

Futures Contracts (a)

$ 453

$ -

Total Value of Derivatives

$ 453

$ -

(a) Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. Only the period end receivable or payable for daily variation margin and net unrealized appreciation (depreciation) are presented in the Statement of Assets and Liabilities.

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

Annual Report


Financial Statements

Statement of Assets and Liabilities

 Amounts in thousands (except per-share amounts)

June 30, 2014

 

 

 

Assets

Investment in securities, at value (including securities loaned of $68,968) - See accompanying schedule:

Unaffiliated issuers (cost $4,265,686)

$ 5,766,228

 

Fidelity Central Funds (cost $217,444)

217,444

 

Total Investments (cost $4,483,130)

 

$ 5,983,672

Cash

 

1

Receivable for investments sold

39,762

Receivable for fund shares sold

1,375

Dividends receivable

2,626

Distributions receivable from Fidelity Central Funds

151

Receivable for daily variation margin for derivative instruments

13

Receivable from investment adviser for expense reductions

2

Other receivables

293

Total assets

6,027,895

 

 

 

Liabilities

Payable for investments purchased

$ 21,510

Payable for fund shares redeemed

3,088

Accrued management fee

1,672

Other affiliated payables

775

Other payables and accrued expenses

273

Collateral on securities loaned, at value

70,731

Total liabilities

98,049

 

 

 

Net Assets

$ 5,929,846

Net Assets consist of:

 

Paid in capital

$ 4,042,380

Undistributed net investment income

20,644

Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions

365,812

Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies

1,501,010

Net Assets

$ 5,929,846

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

Annual Report

Financial Statements - continued

Statement of Assets and Liabilities - continued

 Amounts in thousands (except per-share amounts)

June 30, 2014

 

 

 

Fidelity Fund:
Net Asset Value
, offering price and redemption price per share ($4,811,282 ÷ 105,934 shares)

$ 45.42

 

 

 

Class K:
Net Asset Value
, offering price and redemption price per share ($1,118,564 ÷ 24,625 shares)

$ 45.42

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

Annual Report

Statement of Operations

 Amounts in thousands

Year ended June 30, 2014

 

 

 

Investment Income

 

 

Dividends

 

$ 77,194

Income from Fidelity Central Funds

 

697

Total income

 

77,891

 

 

 

Expenses

Management fee

$ 19,712

Transfer agent fees

8,235

Accounting and security lending fees

1,119

Custodian fees and expenses

103

Independent trustees' compensation

25

Appreciation in deferred trustee compensation account

1

Registration fees

66

Audit

76

Legal

32

Interest

2

Miscellaneous

49

Total expenses before reductions

29,420

Expense reductions

(213)

29,207

Net investment income (loss)

48,684

Realized and Unrealized Gain (Loss)

Net realized gain (loss) on:

Investment securities:

 

 

Unaffiliated issuers

555,116

Foreign currency transactions

44

Futures contracts

4,011

Total net realized gain (loss)

 

559,171

Change in net unrealized appreciation (depreciation) on:

Investment securities

617,457

Assets and liabilities in foreign currencies

26

Futures contracts

453

Total change in net unrealized appreciation (depreciation)

 

617,936

Net gain (loss)

1,177,107

Net increase (decrease) in net assets resulting from operations

$ 1,225,791

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

Annual Report

Financial Statements - continued

Statement of Changes in Net Assets

 Amounts in thousands

Year ended
June 30,
2014

Year ended
June 30,
2013

Increase (Decrease) in Net Assets

 

 

Operations

 

 

Net investment income (loss)

$ 48,684

$ 64,671

Net realized gain (loss)

559,171

526,204

Change in net unrealized appreciation (depreciation)

617,936

240,754

Net increase (decrease) in net assets resulting
from operations

1,225,791

831,629

Distributions to shareholders from net investment income

(45,770)

(73,239)

Distributions to shareholders from net realized gain

(408,221)

-

Total distributions

(453,991)

(73,239)

Share transactions - net increase (decrease)

(286,775)

(492,060)

Total increase (decrease) in net assets

485,025

266,330

 

 

 

Net Assets

Beginning of period

5,444,821

5,178,491

End of period (including undistributed net investment income of $20,644 and undistributed net investment income of $20,378, respectively)

$ 5,929,846

$ 5,444,821

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

Annual Report

Financial Highlights - Fidelity Fund

Years ended June 30,

2014

2013

2012

2011

2010

Selected Per-Share Data

 

 

 

 

 

Net asset value, beginning of period

$ 39.77

$ 34.51

$ 34.35

$ 26.08

$ 23.95

Income from Investment Operations

 

 

 

 

 

Net investment income (loss) B

  .35

  .44

  .37

  .27E

  .23

Net realized and unrealized gain (loss)

  8.61

  5.31

  .02

  8.27

  2.25

Total from investment operations

  8.96

  5.75

  .39

  8.54

  2.48

Distributions from net investment income

  (.32)

  (.49)

  (.23)

  (.27)

  (.35)

Distributions from net realized gain

  (2.98)

  -

  -

  -

  -

Total distributions

  (3.31) G

  (.49)

  (.23)

  (.27)

  (.35)

Net asset value, end of period

$ 45.42

$ 39.77

$ 34.51

$ 34.35

$ 26.08

Total ReturnA

  23.70%

  16.85%

  1.21%

  32.89%

  10.40%

Ratios to Average Net Assets C, F

 

 

 

 

 

Expenses before reductions

  .53%

  .56%

  .58%

  .59%

  .61%

Expenses net of fee waivers, if any

  .53%

  .56%

  .58%

  .59%

  .61%

Expenses net of all reductions

  .53%

  .55%

  .58%

  .58%

  .60%

Net investment income (loss)

  .82%

  1.18%

  1.13%

  .86% E

  .82%

Supplemental Data

 

 

 

 

 

Net assets, end of period (in millions)

$ 4,811

$ 4,451

$ 4,364

$ 5,072

$ 4,412

Portfolio turnover rateD

  93%

  113%

  102%

  88%

  77%

A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.

B Calculated based on average shares outstanding during the period.

C 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.

D Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

E 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 .60%.

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 Total distributions of $3.31 per share is comprised of distributions from net investment income of $.324 and distributions from net realized gain of $2.984 per share.

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

Annual Report

Financial Highlights - Class K

Years ended June 30,

2014

2013

2012

2011

2010

Selected Per-Share Data

 

 

 

 

 

Net asset value, beginning of period

$ 39.78

$ 34.52

$ 34.35

$ 26.08

$ 23.96

Income from Investment Operations

 

 

 

 

 

Net investment income (loss) B

  .40

  .49

  .42

  .32 E

  .28

Net realized and unrealized gain (loss)

  8.60

  5.31

  .02

  8.27

  2.24

Total from investment operations

  9.00

  5.80

  .44

  8.59

  2.52

Distributions from net investment income

  (.38)

  (.54)

  (.27)

  (.32)

  (.40)

Distributions from net realized gain

  (2.98)

  -

  -

  -

  -

Total distributions

  (3.36)

  (.54)

  (.27)

  (.32)

  (.40)

Net asset value, end of period

$ 45.42

$ 39.78

$ 34.52

$ 34.35

$ 26.08

Total ReturnA

  23.83%

  17.03%

  1.37%

  33.10%

  10.54%

Ratios to Average Net Assets C, F

 

 

 

 

 

Expenses before reductions

  .41%

  .42%

  .43%

  .43%

  .44%

Expenses net of fee waivers, if any

  .41%

  .42%

  .43%

  .43%

  .44%

Expenses net of all reductions

  .41%

  .41%

  .42%

  .42%

  .43%

Net investment income (loss)

  .94%

  1.32%

  1.29%

  1.02%E

  .99%

Supplemental Data

 

 

 

 

 

Net assets, end of period (in millions)

$ 1,119

$ 994

$ 814

$ 663

$ 426

Portfolio turnover rateD

  93%

  113%

  102%

  88%

  77%

A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.

B Calculated based on average shares outstanding during the period.

C 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.

D Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

E 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 .76%.

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.

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

Annual Report


Notes to Financial Statements

For the period ended June 30, 2014

(Amounts in thousands except percentages)

1. Organization.

Fidelity Fund (the Fund) is a fund of Fidelity Hastings Street Trust (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Fidelity Fund and Class K shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.

2. Investments in Fidelity Central Funds.

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 .01%.

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:

Annual Report

Notes to Financial Statements - continued

(Amounts in thousands except percentages)

3. Significant Accounting Policies - continued

Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (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 Fidelity Management & Research Company (FMR) Fair Value Committee (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, changes in interest rates and credit quality. 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 is responsible for approving and reporting to the Board all fair value determinations.

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.

Annual Report

3. Significant Accounting Policies - continued

Investment Valuation - continued

Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. U.S. government and government agency obligations are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.

Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded and are categorized as Level 1 in the hierarchy. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of June 30, 2014, is included at the end of the Fund's Schedule of Investments.

Foreign Currency. The Fund 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 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),

Annual Report

Notes to Financial Statements - continued

(Amounts in thousands except percentages)

3. Significant Accounting Policies - continued

Investment Transactions and Income - continued

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. 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 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 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.

Annual Report

3. Significant Accounting Policies - continued

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 June 30, 2014, 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. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.

Distributions are 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 futures contracts, foreign currency transactions, partnerships, 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

$ 1,509,416

Gross unrealized depreciation

(17,610)

Net unrealized appreciation (depreciation) on securities and other investments

$ 1,491,806

 

 

Tax Cost

$ 4,491,866

Annual Report

Notes to Financial Statements - continued

(Amounts in thousands except percentages)

3. Significant Accounting Policies - continued

Income Tax Information and Distributions to Shareholders - continued

The tax-based components of distributable earnings as of period end were as follows:

Undistributed ordinary income

$ 79,833

Undistributed long-term capital gain

$ 315,999

Net unrealized appreciation (depreciation)

$ 1,491,821

The tax character of distributions paid was as follows:

 

June 30, 2014

June 30, 2013

Ordinary Income

$ 71,607

$ 73,239

Long-term Capital Gains

382,384

-

Total

$ 453,991

$ 73,239

4. Derivative Instruments.

Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.

The Fund used derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.

The Fund's use of derivatives increased or decreased its exposure to the following risk:

Equity Risk

Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment.

Annual Report

4. Derivative Instruments - continued

Risk Exposures and the Use of Derivative Instruments - continued

The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Counterparty credit risk related to exchange-traded futures contracts may be mitigated by the protection provided by the exchange on which they trade.

Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.

Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.

Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent daily payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable, if any, is included in daily variation margin for derivative instruments in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.

Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts". The underlying face amount at value reflects each contract's exposure to the underlying instrument or index at period end and is representative of volume of activity during the period. Securities deposited to meet initial margin requirements are identified in the Schedule of Investments.

During the period the Fund recognized net realized gain (loss) of $4,011 and a change in net unrealized appreciation (depreciation) of $453 related to its investment in futures contracts. These amounts are included in the Statement of Operations.

5. Purchases and Sales of Investments.

Purchases and sales of securities, other than short-term securities, aggregated $5,249,903 and $5,975,882, respectively.

Annual Report

Notes to Financial Statements - continued

(Amounts in thousands except percentages)

6. Fees and Other Transactions with Affiliates.

Management Fee. Fidelity Management & Research Company (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 .09% 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 the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of 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 .34% of the Fund's average net assets.

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 Fidelity Fund. FIIOC receives an asset-based fee of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.

For the period, transfer agent fees for each class were as follows:

 

Amount

% of
Average
Net Assets

Fidelity Fund

$ 7,738

.16

Class K

497

.05

 

$ 8,235

 

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 $120 for the period.

Annual Report

6. Fees and Other Transactions with Affiliates - continued

Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR 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. The 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

Borrower

$ 44,379

.32%

$ 2

7. 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 $10 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.

8. Security Lending.

The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. 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. 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. At period end, there were no security loans outstanding with FCM. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent

Annual Report

Notes to Financial Statements - continued

(Amounts in thousands except percentages)

8. Security Lending - continued

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 $599, including $1 from securities loaned to FCM.

9. 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 $185 for the period.

In addition, the investment adviser reimbursed a portion of the Fund's operating expenses during the period in the amount of $28.

10. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

Years ended June 30,

2014

2013

From net investment income

 

 

Fidelity Fund

$ 36,308

$ 59,871

Class K

9,462

13,368

Total

$ 45,770

$ 73,239

From net realized gain

 

 

Fidelity Fund

$ 333,629

$ -

Class K

74,592

-

Total

$ 408,221

$ -

Annual Report

11. Share Transactions.

Transactions for each class of shares were as follows:

 

Shares

Dollars

Years ended June 30,

2014

2013

2014

2013

Fidelity Fund

 

 

 

 

Shares sold

4,764

6,586

$ 199,883

$ 245,372

Reinvestment of distributions

8,565

1,584

347,036

55,780

Shares redeemed

(19,322)

(22,706)

(815,615)

(844,733)

Net increase (decrease)

(5,993)

(14,536)

$ (268,696)

$ (543,581)

Class K

 

 

 

 

Shares sold

3,722

6,352

$ 157,689

$ 236,538

Reinvestment of distributions

2,075

380

84,054

13,368

Shares redeemed

(6,150)

(5,340)

(259,822)

(198,385)

Net increase (decrease)

(353)

1,392

$ (18,079)

$ 51,521

12. 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.

Annual Report


Report of Independent Registered Public Accounting Firm

To the Trustees of Fidelity Hastings Street Trust and the Shareholders of Fidelity Fund:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Fund (a fund of Fidelity Hastings Street Trust) at June 30, 2014, 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. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity Fund's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements 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 are free of material misstatement. An audit 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, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at June 30, 2014 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

Boston, Massachusetts

August 11, 2014

Annual Report


Trustees and Officers

The Trustees, Member of the Advisory Board, 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. Except for James C. Curvey, each of the Trustees oversees 173 funds. Mr. Curvey oversees 397 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 (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. The officers and Advisory Board Member hold office without limit in time, except that any officer and 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.

Experience, Skills, Attributes, and Qualifications of the Fund's 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.

Annual Report

Board Structure and Oversight Function. James C. Curvey is an interested person (as defined in the 1940 Act) 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. Ned C. Lautenbach 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 equity and high income funds and another Board oversees Fidelity's investment-grade bond, money market, and asset allocation funds. The asset allocation funds may invest in Fidelity funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity funds overseen by each Board.

The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. For example, a working group comprised of Independent Trustees and FMR has worked and continues to work to review the Fidelity funds' valuation-related activities, reporting and risk management. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of FMR's risk management program for the Fidelity funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Fund's Trustees."

Annual Report

Trustees and Officers - continued

The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.

Interested Trustees*:

Correspondence intended for each 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+

James C. Curvey (1935)

Year of Election or Appointment: 2007

Trustee

Chairman of the Board of Trustees

 

Mr. Curvey also serves as Trustee of other Fidelity funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (2009-present), and Vice Chairman (2007-present) and Director of FMR LLC. In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the Trustees of Villanova University. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (2009-2014), a Director of FMR (2007-2014), a Director of FMR Co., Inc. (2007-2014) and was the Vice Chairman (2006-2007) and Director (2000-2007) of FMR Corp.

Charles S. Morrison (1960)

Year of Election or Appointment: 2014

Trustee

 

Mr. Morrison also serves as Trustee of other funds. He serves as President, Asset Management (2014-present) and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.

* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR.

+ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for each fund.

Annual Report

Trustees and Officers - continued

Independent Trustees:

Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.

Name, Year of Birth; Principal Occupations and Other Relevant Experience+

Dennis J. Dirks (1948)

Year of Election or Appointment: 2005

Trustee

 

Mr. Dirks also serves as Trustee of other Fidelity funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), and as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008). Mr. Dirks is a member of the Independent Directors Council (IDC) Governing Council (2010-present) and Board of Directors for The Brookville Center for Children's Services, Inc. (2009-present).

Alan J. Lacy (1953)

Year of Election or Appointment: 2008

Trustee

 

Mr. Lacy also serves as Trustee of other Fidelity funds. Mr. Lacy serves as Senior Adviser (2007-present) of Oak Hill Capital Partners, L.P. (private equity). Mr. Lacy also served as Chief Executive Officer (2000-2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation and Sears, Roebuck and Co. (retail). In addition, Mr. Lacy serves as a member of the Board of Directors of Dave & Buster's Entertainment, Inc. (restaurant and entertainment complexes, 2010-present), Earth Fare, Inc. (retail grocery, 2012-present), The Hillman Companies, Inc. (hardware wholesalers, 2010-present), and Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). Mr. Lacy is a member of the Board of Trustees of The National Parks Conservation Association (2006-present). Previously, Mr. Lacy served as Chairman of the Board of Trustees of the National Parks Conservation Association (2008-2011) and as a member of the Board of Directors for the Western Union Company (global money transfer, 2006-2011).

Ned C. Lautenbach (1944)

Year of Election or Appointment: 2000

Trustee

Chairman of the Independent Trustees

 

Mr. Lautenbach also serves as Trustee of other Fidelity funds. Mr. Lautenbach currently serves as the Lead Director of the Eaton Corporation Board of Directors (diversified industrial, 1997-present). Mr. Lautenbach is Chairman of the Board of Directors of the Philharmonic Center for the Arts in Naples, Florida (2012-present) and a member of the Council on Foreign Relations (1994-present). Previously, Mr. Lautenbach was a Partner/Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007).

Joseph Mauriello (1944)

Year of Election or Appointment: 2008

Trustee

 

Mr. Mauriello also serves as Trustee of other Fidelity funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).

Robert W. Selander (1950)

Year of Election or Appointment: 2011

Trustee

 

Mr. Selander also serves as Trustee of other Fidelity funds. Previously, Mr. Selander served as a Member of the Advisory Board of other Fidelity funds (2011), and Executive Vice Chairman (2010), Chief Executive Officer (2009-2010), and President and Chief Executive Officer (1997-2009) of Mastercard, Inc.

Cornelia M. Small (1944)

Year of Election or Appointment: 2005

Trustee

 

Ms. Small also serves as Trustee of other Fidelity funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.

William S. Stavropoulos (1939)

Year of Election or Appointment: 2001

Trustee

Vice Chairman of the Independent Trustees

 

Mr. Stavropoulos also serves as Trustee of other Fidelity funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and Maersk Inc. (industrial conglomerate), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of the Naples Philharmonic Center for the Arts. Previously, Mr. Stavropoulos served as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).

David M. Thomas (1949)

Year of Election or Appointment: 2008

Trustee

 

Mr. Thomas also serves as Trustee of other Fidelity funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), and as a member of the Board of Directors of Interpublic Group of Companies, Inc. (marketing communication, 2004-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).

+ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for each fund.

Advisory Board Member and Officers:

Correspondence intended for each officer and Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.

Name, Year of Birth; Principal Occupation

Peter S. Lynch (1944)

Year of Election or Appointment: 2003

Member of the Advisory Board

 

Mr. Lynch also serves as Member of the Advisory Board of other Fidelity funds. Mr. Lynch is Vice Chairman and a Director of FMR and FMR Co., Inc. In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).

Elizabeth Paige Baumann (1968)

Year of Election or Appointment: 2012

Anti-Money Laundering (AML) Officer

 

Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer of FMR LLC (2012-present) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as Vice President and Deputy Anti-Money Laundering Officer (2007-2012).

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 (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. Mr. Davis is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (2003-2010).

Adrien E. Deberghes (1967)

Year of Election or Appointment: 2008

Deputy Treasurer

 

Mr. Deberghes also serves as an officer of other funds. He 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).

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. (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: 2008

Secretary and Chief Legal Officer (CLO)

 

Mr. Goebel serves as Secretary and CLO of other funds. Mr. Goebel also serves as Secretary of Fidelity SelectCo, LLC (2013-present), Fidelity Investments Money Management, Inc. (FIMM) (2010-present) and Fidelity Research and Analysis Company (FRAC) (2010-present); General Counsel, Secretary, and Senior Vice President of FMR (2008-present) and FMR Co., Inc. (2008-present); Chief Legal Officer of Fidelity Management & Research (Hong Kong) Limited (2008-present); and Assistant Secretary of Fidelity Management & Research (Japan) Inc. (2008-present) and Fidelity Management & Research (U.K.) Inc. (2008-present). Previously, Mr. Goebel served as Secretary and CLO of other Fidelity funds (2008-2013), 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). Mr. Goebel has been employed by FMR LLC or an affiliate since 2001.

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 President of FMR's Equity Division (2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager.

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 FMR's Program Management Group (2010-2013), and Vice President of Valuation Oversight (2008-2010).

Melissa M. Reilly (1971)

Year of Election or Appointment: 2014

Vice President of certain Equity Funds

 

Ms. Reilly also serves as Vice President of other funds. Ms. Reilly is an employee of Fidelity Investments (2004-present).

Kenneth B. Robins (1969)

Year of Election or Appointment: 2008

President and Treasurer

 

Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (2013-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served in other fund officer roles.

Stephen Sadoski (1971)

Year of Election or Appointment: 2012

Deputy Treasurer

 

Mr. Sadoski also serves as Deputy Treasurer of other funds. He is an employee of Fidelity Investments (2012-present) and has served in another fund officer role. Prior to joining Fidelity Investments, Mr. Sadoski served as an assistant chief accountant in the Division of Investment Management of the Securities and Exchange Commission (SEC) (2009-2012) and as a senior manager at Deloitte & Touche LLP (1997-2009).

Stacie M. Smith (1974)

Year of Election or Appointment: 2013

Deputy 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).

Renee Stagnone (1975)

Year of Election or Appointment: 2013

Deputy Treasurer

 

Ms. Stagnone also serves as Deputy Treasurer of other funds. Ms. Stagnone is an employee of Fidelity Investments.

Linda J. Wondrack (1964)

Year of Election or Appointment: 2014

Chief Compliance Officer

 

Ms. Wondrack also serves as Chief Compliance Officer of other funds. Ms. Wondrack is Executive Vice President and head of the Ethics Office and Asset Management Compliance for Fidelity Investments (2012-present). Ms. Wondrack also serves as Chief Compliance Officer of Fidelity SelectCo, LLC (2014-present); Chief Compliance Officer of Impresa Management LLC (2013-present); and Chief Compliance Officer of FMR Co., Inc., Fidelity Investments Money Management, Inc., Fidelity Management & Research (Japan) Inc., Fidelity Management & Research (U.K.) Inc., Fidelity Management & Research (Hong Kong), Fidelity Management & Research Company, Pyramis Global Advisors, LLC, and Strategic Advisers, Inc., Ballyrock Investment Advisors LLC, and Northern Neck Investors LLC (2012-present). Previously, Ms. Wondrack served as Senior Vice President and Chief Compliance Officer for Columbia Management Investment Advisers, LLC (2005-2012); Chief Compliance Officer for certain funds within the Columbia Family of Funds (2007-2012); and Senior Vice President of Compliance Risk Management at Bank of America (2005-2010).

Joseph F. Zambello (1957)

Year of Election or Appointment: 2011

Deputy Treasurer

 

Mr. Zambello also serves as Deputy Treasurer of other funds. Mr. Zambello is an employee of Fidelity Investments. Previously, Mr. Zambello served as Vice President of FMR's Program Management Group (2009-2011) and Vice President of the Transfer Agent Oversight Group (2005-2009).

Annual Report


Distributions (Unaudited)

The Board of Trustees of Fidelity 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 Fund

08/11/14

08/08/14

$0.158

$2.934

The fund hereby designates as a capital gain dividend with respect to the taxable year ended June 30, 2014, $426,561,852, or, if subsequently determined to be different, the net capital gain of such year.

Fidelity Fund designates 100% and 70% of the dividends distributed in August and December, respectively during the fiscal year as qualifying for the dividends-received deduction for corporate shareholders.

Fidelity Fund designates 100% and 79% of the dividends distributed in August and December, respectively during the fiscal year as amounts which may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.

The fund will notify shareholders in January 2015 of amounts for use in preparing 2014 income tax returns.

Annual Report

Investment Adviser

Fidelity Management &
Research Company

Boston, MA

Investment Sub-Advisers

FMR Co., Inc.

Fidelity Management & Research
(U.K.) Inc.

Fidelity Management & Research
(Hong Kong) Limited

Fidelity Management & Research
(Japan) Inc.

General Distributor

Fidelity Distributors Corporation

Smithfield, RI

Transfer and Service Agents

Fidelity Investments Institutional
Operations Company, Inc.

Boston, MA

Fidelity Service Company, Inc.

Boston, MA

Custodian

The Northern Trust Company

Chicago, IL

The Fidelity Telephone Connection

Mutual Fund 24-Hour Service

Exchanges/Redemptions
and Account Assistance 1-800-544-6666

Product Information 1-800-544-6666

Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)

TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)

Fidelity Automated Service
Telephone (FAST®) hhh1706678
1-800-544-5555

hhh1706678
Automated line for quickest service

(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St., Boston, MA 02210
www.fidelity.com

FID-UANN-0814
1.787731.111

Fidelity®

Fund -
Class K

Annual Report

June 30, 2014

(Fidelity Cover Art)


Contents

Performance

(Click Here)

How the fund has done over time.

Management's Discussion of Fund Performance

(Click Here)

The Portfolio Manager's review of fund performance and strategy.

Shareholder Expense Example

(Click Here)

An example of shareholder expenses.

Investment Changes

(Click Here)

A summary of major shifts in the fund's investments over the past six months.

Investments

(Click Here)

A complete list of the fund's investments with their market values.

Financial Statements

(Click Here)

Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights.

Notes

(Click Here)

Notes to the financial statements.

Report of Independent Registered Public Accounting Firm

(Click Here)

 

Trustees and Officers

(Click Here)

 

Distributions

(Click Here)

 

To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-835-5092 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. © 2014 FMR LLC. All rights reserved.

Annual Report

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.advisor.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.

Annual Report


Performance: The Bottom Line

Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' 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 $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.

Average Annual Total Returns

Periods ended June 30, 2014

Past 1
year

Past 5
years

Past 10
years

  Class K A

23.83%

16.67%

7.42%

A The initial offering of Class K shares took place on May 9, 2008. Returns prior to May 9, 2008 are those of Fidelity® Fund, the original class of the fund.

$10,000 Over 10 Years

Let's say hypothetically that $10,000 was invested in Fidelity® Fund - Class K on June 30, 2004. 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. The initial offering of Class K took place on May 9, 2008. See above for additional information regarding the performance of Class K.

hhh1706814

Annual Report


Management's Discussion of Fund Performance

Market Recap: Despite intermittent volatility driven by geopolitical concerns, stocks posted a series of new highs during the 12 months ending June 30, 2014, amid a decidedly favorable environment for riskier assets. The S&P 500® Index rose 24.61% for the year, helped by a rise in consumer spending and the lowest unemployment rate since 2008. The U.S. Federal Reserve balanced stimulus reductions with continued low interest rates, aiding a broad advance. All 10 S&P 500® market sectors gained, seven by more than 20%. Materials (+33%) was tops, as investors seemed to anticipate sustained economic improvement and renewed infrastructure build-outs. Information technology (+32%) benefited from large cash balances, rising dividends and stock buybacks, and a bevy of innovations. Health care (+30%) was aided by new drugs and predictable reimbursements. Conversely, the biggest laggard, telecommunication services (+5%), battled slow growth and stiff pricing competition. Across size and style segments: overall, investors showed some preference for large-cap stocks over small-caps and growth stocks over value, although market leadership rotated during the year. With the "risk-on" trade alive and well, the growth-oriented Nasdaq Composite Index® flourished, advancing 31.17%, while the blue-chip Dow Jones Industrial AverageSM delivered a more subdued 15.56% return.

Comments from John Avery, Portfolio Manager of Fidelity® Fund: For the year, the fund's Class K shares returned 23.83%, trailing the S&P 500®. Versus the index, software giant Microsoft was the fund's biggest detractor. This was mainly due to bad timing on my part, as I lightened up on our holdings or didn't own this index stock when it was gaining ground, although the fund had a slight overweighting here at period end. I sold our stake in index component and relative detractor Citigroup after the stock pulled back following the U.S. Federal Reserve's rejection of the bank's plan for boosting dividends and share buybacks. I also sold two other index stocks that were noteworthy detractors - networking equipment manufacturer Cisco Systems and homebuilder D.R. Horton - because I thought their prospects deteriorated, causing the fund to miss their subsequent rallies. Conversely, a non-index position in Netherlands-based NXP Semiconductors was the fund's top relative contributor. Increased demand for the company's chips helped its stock price more than double during the period. Other contributors included energy services provider Williams Companies, which benefited from the boom in shale oil and gas exploration and production, and social network provider Facebook.

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.

Annual Report


Shareholder Expense Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management 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 (January 1, 2014 to June 30, 2014).

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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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.

Annual Report

 

Annualized
Expense Ratio
B

Beginning
Account Value
January 1, 2014

Ending
Account Value
June 30, 2014

Expenses Paid
During Period
*
January 1, 2014 to June 30, 2014

Fidelity Fund

.53%

 

 

 

Actual

 

$ 1,000.00

$ 1,064.90

$ 2.71

HypotheticalA

 

$ 1,000.00

$ 1,022.17

$ 2.66

Class K

.41%

 

 

 

Actual

 

$ 1,000.00

$ 1,065.40

$ 2.10

HypotheticalA

 

$ 1,000.00

$ 1,022.76

$ 2.06

A 5% return per year before expenses

B Annualized expense ratio reflects expenses net of applicable fee waivers.

* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

Annual Report


Investment Changes (Unaudited)

Top Ten Stocks as of June 30, 2014

 

% of fund's
net assets

% of fund's net assets
6 months ago

Apple, Inc.

4.4

3.7

Wells Fargo & Co.

2.7

2.0

Microsoft Corp.

2.1

1.9

Johnson & Johnson

2.0

0.0

Monsanto Co.

2.0

2.0

The Walt Disney Co.

2.0

1.0

Google, Inc. Class A

2.0

3.8

Google, Inc. Class C

1.9

0.0

Amphenol Corp. Class A

1.9

1.8

Facebook, Inc. Class A

1.9

0.9

 

22.9

Top Five Market Sectors as of June 30, 2014

 

% of fund's
net assets

% of fund's net assets
6 months ago

Information Technology

20.2

18.2

Financials

15.8

18.5

Health Care

15.4

12.8

Industrials

13.9

13.7

Energy

12.0

6.6

Asset Allocation (% of fund's net assets)

As of June 30, 2014 *

As of December 31, 2013 **

hhh1706667

Stocks and
Equity Futures 98.2%

 

hhh1706667

Stocks 99.5%

 

hhh1706673

Short-Term
Investments and
Net Other Assets (Liabilities) 1.8%

 

hhh1706673

Short-Term
Investments and
Net Other Assets (Liabilities) 0.5%

 

* Foreign investments

8.5%

 

** Foreign investments

7.6%

 

hhh1706820

Annual Report


Investments June 30, 2014

Showing Percentage of Net Assets

Common Stocks - 96.4%

Shares

Value (000s)

CONSUMER DISCRETIONARY - 6.3%

Hotels, Restaurants & Leisure - 1.5%

Starbucks Corp.

1,145,098

$ 88,608

Media - 3.4%

Comcast Corp. Class A

1,607,000

86,264

The Walt Disney Co.

1,373,800

117,790

 

204,054

Specialty Retail - 0.6%

TJX Companies, Inc.

623,600

33,144

Textiles, Apparel & Luxury Goods - 0.8%

VF Corp.

800,000

50,400

TOTAL CONSUMER DISCRETIONARY

376,206

CONSUMER STAPLES - 5.9%

Beverages - 1.4%

The Coca-Cola Co.

2,000,000

84,720

Food & Staples Retailing - 1.8%

CVS Caremark Corp.

1,421,700

107,154

Food Products - 1.6%

Bunge Ltd.

588,800

44,537

Mondelez International, Inc.

1,375,000

51,714

 

96,251

Household Products - 0.8%

Procter & Gamble Co.

300,000

23,577

Svenska Cellulosa AB (SCA) (B Shares)

800,000

20,845

 

44,422

Tobacco - 0.3%

Lorillard, Inc.

300,000

18,291

TOTAL CONSUMER STAPLES

350,838

ENERGY - 12.0%

Energy Equipment & Services - 3.1%

Halliburton Co.

1,175,000

83,437

Schlumberger Ltd.

850,000

100,258

 

183,695

Oil, Gas & Consumable Fuels - 8.9%

Anadarko Petroleum Corp.

778,350

85,206

Cheniere Energy Partners LP

1,000,000

33,040

Chevron Corp.

500,000

65,275

Common Stocks - continued

Shares

Value (000s)

ENERGY - continued

Oil, Gas & Consumable Fuels - continued

EOG Resources, Inc.

940,000

$ 109,848

EQT Midstream Partners LP

550,000

53,207

MPLX LP

600,000

38,700

Phillips 66 Co.

850,000

68,366

The Williams Companies, Inc.

1,247,000

72,588

 

526,230

TOTAL ENERGY

709,925

FINANCIALS - 15.8%

Banks - 7.4%

Bank of America Corp.

6,877,200

105,703

JPMorgan Chase & Co.

1,857,000

107,000

SunTrust Banks, Inc.

1,664,900

66,696

Wells Fargo & Co.

2,969,167

156,059

 

435,458

Capital Markets - 2.2%

E*TRADE Financial Corp. (a)

1,481,700

31,501

Invesco Ltd.

1,200,000

45,300

Morgan Stanley, Inc.

1,698,700

54,919

 

131,720

Consumer Finance - 2.5%

American Express Co.

967,092

91,748

Discover Financial Services

923,400

57,232

 

148,980

Diversified Financial Services - 2.5%

Berkshire Hathaway, Inc. Class B (a)

600,000

75,936

McGraw Hill Financial, Inc.

835,625

69,382

 

145,318

Insurance - 0.8%

American International Group, Inc.

900,000

49,122

Real Estate Investment Trusts - 0.4%

Altisource Residential Corp. Class B

896,600

23,338

TOTAL FINANCIALS

933,936

HEALTH CARE - 15.4%

Biotechnology - 6.8%

Actelion Ltd.

175,000

22,141

Common Stocks - continued

Shares

Value (000s)

HEALTH CARE - continued

Biotechnology - continued

Alexion Pharmaceuticals, Inc. (a)

250,000

$ 39,063

Amgen, Inc.

719,900

85,215

Biogen Idec, Inc. (a)

319,600

100,773

Cubist Pharmaceuticals, Inc.

608,900

42,513

Genmab A/S (a)

470,000

20,061

Gilead Sciences, Inc. (a)

964,800

79,992

Seattle Genetics, Inc. (a)

314,300

12,022

 

401,780

Health Care Equipment & Supplies - 0.7%

Boston Scientific Corp. (a)

3,200,000

40,864

Health Care Providers & Services - 2.1%

HCA Holdings, Inc. (a)

450,000

25,371

Henry Schein, Inc. (a)

351,300

41,689

McKesson Corp.

300,000

55,863

 

122,923

Life Sciences Tools & Services - 1.6%

Illumina, Inc. (a)

251,864

44,968

Thermo Fisher Scientific, Inc.

450,000

53,100

 

98,068

Pharmaceuticals - 4.2%

Actavis PLC (a)

375,000

83,644

Johnson & Johnson

1,150,000

120,313

Teva Pharmaceutical Industries Ltd. sponsored ADR

500,000

26,210

Theravance, Inc. (a)(d)

746,233

22,223

 

252,390

TOTAL HEALTH CARE

916,025

INDUSTRIALS - 13.9%

Aerospace & Defense - 3.8%

Honeywell International, Inc.

704,200

65,455

Huntington Ingalls Industries, Inc.

350,000

33,107

Textron, Inc.

1,658,600

63,508

The Boeing Co.

515,000

65,523

 

227,593

Airlines - 0.7%

American Airlines Group, Inc.

1,000,000

42,960

Electrical Equipment - 0.5%

Generac Holdings, Inc.

579,965

28,267

Common Stocks - continued

Shares

Value (000s)

INDUSTRIALS - continued

Industrial Conglomerates - 3.1%

3M Co.

775,000

$ 111,011

Danaher Corp.

891,900

70,219

 

181,230

Machinery - 4.0%

Caterpillar, Inc.

950,000

103,237

Cummins, Inc.

589,000

90,877

Manitowoc Co., Inc.

1,350,000

44,361

 

238,475

Road & Rail - 1.8%

Union Pacific Corp.

1,061,600

105,895

TOTAL INDUSTRIALS

824,420

INFORMATION TECHNOLOGY - 20.2%

Electronic Equipment & Components - 1.9%

Amphenol Corp. Class A

1,172,738

112,982

Internet Software & Services - 6.4%

Facebook, Inc. Class A (a)

1,650,000

111,029

Google, Inc.:

Class A (a)

199,800

116,817

Class C (a)

199,800

114,941

Yahoo!, Inc. (a)

1,010,000

35,481

 

378,268

IT Services - 1.3%

Fidelity National Information Services, Inc.

760,700

41,641

Visa, Inc. Class A

180,600

38,054

 

79,695

Semiconductors & Semiconductor Equipment - 2.3%

Applied Materials, Inc.

1,850,000

41,718

Freescale Semiconductor, Inc. (a)(d)

1,209,485

28,423

NXP Semiconductors NV (a)

1,038,500

68,728

 

138,869

Software - 3.9%

Adobe Systems, Inc. (a)

1,175,000

85,023

Microsoft Corp.

3,000,000

125,100

salesforce.com, Inc. (a)

325,000

18,876

 

228,999

Common Stocks - continued

Shares

Value (000s)

INFORMATION TECHNOLOGY - continued

Technology Hardware, Storage & Peripherals - 4.4%

Apple, Inc.

2,790,200

$ 259,289

TOTAL INFORMATION TECHNOLOGY

1,198,102

MATERIALS - 6.9%

Chemicals - 4.0%

Airgas, Inc.

275,000

29,950

Celanese Corp. Class A

725,000

46,603

Methanex Corp.

112,800

6,974

Monsanto Co.

959,900

119,738

W.R. Grace & Co. (a)

348,100

32,906

 

236,171

Construction Materials - 2.1%

Martin Marietta Materials, Inc. (d)

502,000

66,289

Vulcan Materials Co.

902,954

57,563

 

123,852

Metals & Mining - 0.8%

Alcoa, Inc.

1,800,000

26,802

Freeport-McMoRan Copper & Gold, Inc.

600,000

21,900

 

48,702

TOTAL MATERIALS

408,725

TOTAL COMMON STOCKS

(Cost $4,219,319)


5,718,177

Nonconvertible Preferred Stocks - 0.7%

 

 

 

 

CONSUMER DISCRETIONARY - 0.7%

Automobiles - 0.7%

Porsche Automobil Holding SE (Germany)

425,000

44,281

TOTAL NONCONVERTIBLE PREFERRED STOCKS

(Cost $42,597)


44,281

U.S. Treasury Obligations - 0.1%

 

Principal Amount (000s)

 

U.S. Treasury Bills, yield at date of purchase 0.03% to 0.03% 8/21/14 (e)
(Cost $3,770)

$ 3,770


3,770

Money Market Funds - 3.7%

Shares

Value (000s)

Fidelity Cash Central Fund, 0.11% (b)

146,713,048

$ 146,713

Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c)

70,731,000

70,731

TOTAL MONEY MARKET FUNDS

(Cost $217,444)


217,444

TOTAL INVESTMENT PORTFOLIO - 100.9%

(Cost $4,483,130)

5,983,672

NET OTHER ASSETS (LIABILITIES) - (0.9)%

(53,826)

NET ASSETS - 100%

$ 5,929,846

Futures Contracts

Expiration Date

Underlying Face Amount at Value (000s)

Unrealized Appreciation/
(Depreciation) (000s)

Purchased

Equity Index Contracts

696 CME E-mini S&P 500 Index Contracts

Sept. 2014

$ 67,944

$ 453

 

The face value of futures purchased as a percentage of net assets is 1.1%

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.

(c) Investment made with cash collateral received from securities on loan.

(d) Security or a portion of the security is on loan at period end.

(e) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At period end, the value of securities pledged amounted to $2,870,000.

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
(Amounts in thousands)

Fidelity Cash Central Fund

$ 98

Fidelity Securities Lending Cash Central Fund

599

Total

$ 697

Other Information

The following is a summary of the inputs used, as of June 30, 2014, 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 in the table below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.

Valuation Inputs at Reporting Date:

Description
(Amounts in thousands)

Total

Level 1

Level 2

Level 3

Investments in Securities:

Equities:

Consumer Discretionary

$ 420,487

$ 420,487

$ -

$ -

Consumer Staples

350,838

350,838

-

-

Energy

709,925

709,925

-

-

Financials

933,936

933,936

-

-

Health Care

916,025

916,025

-

-

Industrials

824,420

824,420

-

-

Information Technology

1,198,102

1,198,102

-

-

Materials

408,725

408,725

-

-

U.S. Government and Government Agency Obligations

3,770

-

3,770

-

Money Market Funds

217,444

217,444

-

-

Total Investments in Securities:

$ 5,983,672

$ 5,979,902

$ 3,770

$ -

Derivative Instruments:

Assets

Futures Contracts

$ 453

$ 453

$ -

$ -

Value of Derivative Instruments

The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of June 30, 2014. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.

Primary Risk Exposure /
Derivative Type
(Amounts in thousands)

Value

 

Asset

Liability

Equity Risk

Futures Contracts (a)

$ 453

$ -

Total Value of Derivatives

$ 453

$ -

(a) Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. Only the period end receivable or payable for daily variation margin and net unrealized appreciation (depreciation) are presented in the Statement of Assets and Liabilities.

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

Annual Report


Financial Statements

Statement of Assets and Liabilities

 Amounts in thousands (except per-share amounts)

June 30, 2014

 

 

 

Assets

Investment in securities, at value (including securities loaned of $68,968) - See accompanying schedule:

Unaffiliated issuers (cost $4,265,686)

$ 5,766,228

 

Fidelity Central Funds (cost $217,444)

217,444

 

Total Investments (cost $4,483,130)

 

$ 5,983,672

Cash

 

1

Receivable for investments sold

39,762

Receivable for fund shares sold

1,375

Dividends receivable

2,626

Distributions receivable from Fidelity Central Funds

151

Receivable for daily variation margin for derivative instruments

13

Receivable from investment adviser for expense reductions

2

Other receivables

293

Total assets

6,027,895

 

 

 

Liabilities

Payable for investments purchased

$ 21,510

Payable for fund shares redeemed

3,088

Accrued management fee

1,672

Other affiliated payables

775

Other payables and accrued expenses

273

Collateral on securities loaned, at value

70,731

Total liabilities

98,049

 

 

 

Net Assets

$ 5,929,846

Net Assets consist of:

 

Paid in capital

$ 4,042,380

Undistributed net investment income

20,644

Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions

365,812

Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies

1,501,010

Net Assets

$ 5,929,846

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

Annual Report

Statement of Assets and Liabilities - continued

 Amounts in thousands (except per-share amounts)

June 30, 2014

 

 

 

Fidelity Fund:
Net Asset Value
, offering price and redemption price per share ($4,811,282 ÷ 105,934 shares)

$ 45.42

 

 

 

Class K:
Net Asset Value
, offering price and redemption price per share ($1,118,564 ÷ 24,625 shares)

$ 45.42

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

Annual Report

Financial Statements - continued

Statement of Operations

 Amounts in thousands

Year ended June 30, 2014

 

 

 

Investment Income

 

 

Dividends

 

$ 77,194

Income from Fidelity Central Funds

 

697

Total income

 

77,891

 

 

 

Expenses

Management fee

$ 19,712

Transfer agent fees

8,235

Accounting and security lending fees

1,119

Custodian fees and expenses

103

Independent trustees' compensation

25

Appreciation in deferred trustee compensation account

1

Registration fees

66

Audit

76

Legal

32

Interest

2

Miscellaneous

49

Total expenses before reductions

29,420

Expense reductions

(213)

29,207

Net investment income (loss)

48,684

Realized and Unrealized Gain (Loss)

Net realized gain (loss) on:

Investment securities:

 

 

Unaffiliated issuers

555,116

Foreign currency transactions

44

Futures contracts

4,011

Total net realized gain (loss)

 

559,171

Change in net unrealized appreciation (depreciation) on:

Investment securities

617,457

Assets and liabilities in foreign currencies

26

Futures contracts

453

Total change in net unrealized appreciation (depreciation)

 

617,936

Net gain (loss)

1,177,107

Net increase (decrease) in net assets resulting from operations

$ 1,225,791

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

Annual Report

Statement of Changes in Net Assets

 Amounts in thousands

Year ended
June 30,
2014

Year ended
June 30,
2013

Increase (Decrease) in Net Assets

 

 

Operations

 

 

Net investment income (loss)

$ 48,684

$ 64,671

Net realized gain (loss)

559,171

526,204

Change in net unrealized appreciation (depreciation)

617,936

240,754

Net increase (decrease) in net assets resulting
from operations

1,225,791

831,629

Distributions to shareholders from net investment income

(45,770)

(73,239)

Distributions to shareholders from net realized gain

(408,221)

-

Total distributions

(453,991)

(73,239)

Share transactions - net increase (decrease)

(286,775)

(492,060)

Total increase (decrease) in net assets

485,025

266,330

 

 

 

Net Assets

Beginning of period

5,444,821

5,178,491

End of period (including undistributed net investment income of $20,644 and undistributed net investment income of $20,378, respectively)

$ 5,929,846

$ 5,444,821

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

Annual Report

Financial Highlights - Fidelity Fund

Years ended June 30,

2014

2013

2012

2011

2010

Selected Per-Share Data

 

 

 

 

 

Net asset value, beginning of period

$ 39.77

$ 34.51

$ 34.35

$ 26.08

$ 23.95

Income from Investment Operations

 

 

 

 

 

Net investment income (loss) B

  .35

  .44

  .37

  .27E

  .23

Net realized and unrealized gain (loss)

  8.61

  5.31

  .02

  8.27

  2.25

Total from investment operations

  8.96

  5.75

  .39

  8.54

  2.48

Distributions from net investment income

  (.32)

  (.49)

  (.23)

  (.27)

  (.35)

Distributions from net realized gain

  (2.98)

  -

  -

  -

  -

Total distributions

  (3.31) G

  (.49)

  (.23)

  (.27)

  (.35)

Net asset value, end of period

$ 45.42

$ 39.77

$ 34.51

$ 34.35

$ 26.08

Total ReturnA

  23.70%

  16.85%

  1.21%

  32.89%

  10.40%

Ratios to Average Net Assets C, F

 

 

 

 

 

Expenses before reductions

  .53%

  .56%

  .58%

  .59%

  .61%

Expenses net of fee waivers, if any

  .53%

  .56%

  .58%

  .59%

  .61%

Expenses net of all reductions

  .53%

  .55%

  .58%

  .58%

  .60%

Net investment income (loss)

  .82%

  1.18%

  1.13%

  .86% E

  .82%

Supplemental Data

 

 

 

 

 

Net assets, end of period (in millions)

$ 4,811

$ 4,451

$ 4,364

$ 5,072

$ 4,412

Portfolio turnover rateD

  93%

  113%

  102%

  88%

  77%

A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.

B Calculated based on average shares outstanding during the period.

C 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.

D Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

E 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 .60%.

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 Total distributions of $3.31 per share is comprised of distributions from net investment income of $.324 and distributions from net realized gain of $2.984 per share.

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

Annual Report

Financial Highlights - Class K

Years ended June 30,

2014

2013

2012

2011

2010

Selected Per-Share Data

 

 

 

 

 

Net asset value, beginning of period

$ 39.78

$ 34.52

$ 34.35

$ 26.08

$ 23.96

Income from Investment Operations

 

 

 

 

 

Net investment income (loss) B

  .40

  .49

  .42

  .32 E

  .28

Net realized and unrealized gain (loss)

  8.60

  5.31

  .02

  8.27

  2.24

Total from investment operations

  9.00

  5.80

  .44

  8.59

  2.52

Distributions from net investment income

  (.38)

  (.54)

  (.27)

  (.32)

  (.40)

Distributions from net realized gain

  (2.98)

  -

  -

  -

  -

Total distributions

  (3.36)

  (.54)

  (.27)

  (.32)

  (.40)

Net asset value, end of period

$ 45.42

$ 39.78

$ 34.52

$ 34.35

$ 26.08

Total ReturnA

  23.83%

  17.03%

  1.37%

  33.10%

  10.54%

Ratios to Average Net Assets C, F

 

 

 

 

 

Expenses before reductions

  .41%

  .42%

  .43%

  .43%

  .44%

Expenses net of fee waivers, if any

  .41%

  .42%

  .43%

  .43%

  .44%

Expenses net of all reductions

  .41%

  .41%

  .42%

  .42%

  .43%

Net investment income (loss)

  .94%

  1.32%

  1.29%

  1.02%E

  .99%

Supplemental Data

 

 

 

 

 

Net assets, end of period (in millions)

$ 1,119

$ 994

$ 814

$ 663

$ 426

Portfolio turnover rateD

  93%

  113%

  102%

  88%

  77%

A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.

B Calculated based on average shares outstanding during the period.

C 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.

D Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

E 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 .76%.

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.

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

Annual Report


Notes to Financial Statements

For the period ended June 30, 2014

(Amounts in thousands except percentages)

1. Organization.

Fidelity Fund (the Fund) is a fund of Fidelity Hastings Street Trust (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Fidelity Fund and Class K shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.

2. Investments in Fidelity Central Funds.

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 .01%.

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:

Annual Report

Notes to Financial Statements - continued

(Amounts in thousands except percentages)

3. Significant Accounting Policies - continued

Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (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 Fidelity Management & Research Company (FMR) Fair Value Committee (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, changes in interest rates and credit quality. 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 is responsible for approving and reporting to the Board all fair value determinations.

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.

Annual Report

3. Significant Accounting Policies - continued

Investment Valuation - continued

Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. U.S. government and government agency obligations are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.

Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded and are categorized as Level 1 in the hierarchy. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of June 30, 2014, is included at the end of the Fund's Schedule of Investments.

Foreign Currency. The Fund 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 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),

Annual Report

Notes to Financial Statements - continued

(Amounts in thousands except percentages)

3. Significant Accounting Policies - continued

Investment Transactions and Income - continued

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. 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 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 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.

Annual Report

3. Significant Accounting Policies - continued

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 June 30, 2014, 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. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.

Distributions are 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 futures contracts, foreign currency transactions, partnerships, 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

$ 1,509,416

Gross unrealized depreciation

(17,610)

Net unrealized appreciation (depreciation) on securities and other investments

$ 1,491,806

 

 

Tax Cost

$ 4,491,866

Annual Report

Notes to Financial Statements - continued

(Amounts in thousands except percentages)

3. Significant Accounting Policies - continued

Income Tax Information and Distributions to Shareholders - continued

The tax-based components of distributable earnings as of period end were as follows:

Undistributed ordinary income

$ 79,833

Undistributed long-term capital gain

$ 315,999

Net unrealized appreciation (depreciation)

$ 1,491,821

The tax character of distributions paid was as follows:

 

June 30, 2014

June 30, 2013

Ordinary Income

$ 71,607

$ 73,239

Long-term Capital Gains

382,384

-

Total

$ 453,991

$ 73,239

4. Derivative Instruments.

Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.

The Fund used derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.

The Fund's use of derivatives increased or decreased its exposure to the following risk:

Equity Risk

Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment.

Annual Report

4. Derivative Instruments - continued

Risk Exposures and the Use of Derivative Instruments - continued

The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Counterparty credit risk related to exchange-traded futures contracts may be mitigated by the protection provided by the exchange on which they trade.

Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.

Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.

Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent daily payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable, if any, is included in daily variation margin for derivative instruments in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.

Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts". The underlying face amount at value reflects each contract's exposure to the underlying instrument or index at period end and is representative of volume of activity during the period. Securities deposited to meet initial margin requirements are identified in the Schedule of Investments.

During the period the Fund recognized net realized gain (loss) of $4,011 and a change in net unrealized appreciation (depreciation) of $453 related to its investment in futures contracts. These amounts are included in the Statement of Operations.

5. Purchases and Sales of Investments.

Purchases and sales of securities, other than short-term securities, aggregated $5,249,903 and $5,975,882, respectively.

Annual Report

Notes to Financial Statements - continued

(Amounts in thousands except percentages)

6. Fees and Other Transactions with Affiliates.

Management Fee. Fidelity Management & Research Company (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 .09% 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 the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of 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 .34% of the Fund's average net assets.

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 Fidelity Fund. FIIOC receives an asset-based fee of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.

For the period, transfer agent fees for each class were as follows:

 

Amount

% of
Average
Net Assets

Fidelity Fund

$ 7,738

.16

Class K

497

.05

 

$ 8,235

 

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 $120 for the period.

Annual Report

6. Fees and Other Transactions with Affiliates - continued

Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR 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. The 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

Borrower

$ 44,379

.32%

$ 2

7. 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 $10 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.

8. Security Lending.

The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. 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. 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. At period end, there were no security loans outstanding with FCM. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent

Annual Report

Notes to Financial Statements - continued

(Amounts in thousands except percentages)

8. Security Lending - continued

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 $599, including $1 from securities loaned to FCM.

9. 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 $185 for the period.

In addition, the investment adviser reimbursed a portion of the Fund's operating expenses during the period in the amount of $28.

10. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

Years ended June 30,

2014

2013

From net investment income

 

 

Fidelity Fund

$ 36,308

$ 59,871

Class K

9,462

13,368

Total

$ 45,770

$ 73,239

From net realized gain

 

 

Fidelity Fund

$ 333,629

$ -

Class K

74,592

-

Total

$ 408,221

$ -

Annual Report

11. Share Transactions.

Transactions for each class of shares were as follows:

 

Shares

Dollars

Years ended June 30,

2014

2013

2014

2013

Fidelity Fund

 

 

 

 

Shares sold

4,764

6,586

$ 199,883

$ 245,372

Reinvestment of distributions

8,565

1,584

347,036

55,780

Shares redeemed

(19,322)

(22,706)

(815,615)

(844,733)

Net increase (decrease)

(5,993)

(14,536)

$ (268,696)

$ (543,581)

Class K

 

 

 

 

Shares sold

3,722

6,352

$ 157,689

$ 236,538

Reinvestment of distributions

2,075

380

84,054

13,368

Shares redeemed

(6,150)

(5,340)

(259,822)

(198,385)

Net increase (decrease)

(353)

1,392

$ (18,079)

$ 51,521

12. 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.

Annual Report


Report of Independent Registered Public Accounting Firm

To the Trustees of Fidelity Hastings Street Trust and the Shareholders of Fidelity Fund:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Fund (a fund of Fidelity Hastings Street Trust) at June 30, 2014, 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. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity Fund's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements 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 are free of material misstatement. An audit 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, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at June 30, 2014 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

Boston, Massachusetts

August 11, 2014

Annual Report


Trustees and Officers

The Trustees, Member of the Advisory Board, 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. Except for James C. Curvey, each of the Trustees oversees 173 funds. Mr. Curvey oversees 397 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 (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. The officers and Advisory Board Member hold office without limit in time, except that any officer and 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.

Experience, Skills, Attributes, and Qualifications of the Fund's 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.

Annual Report

Board Structure and Oversight Function. James C. Curvey is an interested person (as defined in the 1940 Act) 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. Ned C. Lautenbach 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 equity and high income funds and another Board oversees Fidelity's investment-grade bond, money market, and asset allocation funds. The asset allocation funds may invest in Fidelity funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity funds overseen by each Board.

The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. For example, a working group comprised of Independent Trustees and FMR has worked and continues to work to review the Fidelity funds' valuation-related activities, reporting and risk management. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of FMR's risk management program for the Fidelity funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Fund's Trustees."

Annual Report

Trustees and Officers - continued

The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-835-5092.

Interested Trustees*:

Correspondence intended for each 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+

James C. Curvey (1935)

Year of Election or Appointment: 2007

Trustee

Chairman of the Board of Trustees

 

Mr. Curvey also serves as Trustee of other Fidelity funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (2009-present), and Vice Chairman (2007-present) and Director of FMR LLC. In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the Trustees of Villanova University. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (2009-2014), a Director of FMR (2007-2014), a Director of FMR Co., Inc. (2007-2014) and was the Vice Chairman (2006-2007) and Director (2000-2007) of FMR Corp.

Charles S. Morrison (1960)

Year of Election or Appointment: 2014

Trustee

 

Mr. Morrison also serves as Trustee of other funds. He serves as President, Asset Management (2014-present) and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.

* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR.

+ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for each fund.

Annual Report

Trustees and Officers - continued

Independent Trustees:

Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.

Name, Year of Birth; Principal Occupations and Other Relevant Experience+

Dennis J. Dirks (1948)

Year of Election or Appointment: 2005

Trustee

 

Mr. Dirks also serves as Trustee of other Fidelity funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), and as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008). Mr. Dirks is a member of the Independent Directors Council (IDC) Governing Council (2010-present) and Board of Directors for The Brookville Center for Children's Services, Inc. (2009-present).

Alan J. Lacy (1953)

Year of Election or Appointment: 2008

Trustee

 

Mr. Lacy also serves as Trustee of other Fidelity funds. Mr. Lacy serves as Senior Adviser (2007-present) of Oak Hill Capital Partners, L.P. (private equity). Mr. Lacy also served as Chief Executive Officer (2000-2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation and Sears, Roebuck and Co. (retail). In addition, Mr. Lacy serves as a member of the Board of Directors of Dave & Buster's Entertainment, Inc. (restaurant and entertainment complexes, 2010-present), Earth Fare, Inc. (retail grocery, 2012-present), The Hillman Companies, Inc. (hardware wholesalers, 2010-present), and Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). Mr. Lacy is a member of the Board of Trustees of The National Parks Conservation Association (2006-present). Previously, Mr. Lacy served as Chairman of the Board of Trustees of the National Parks Conservation Association (2008-2011) and as a member of the Board of Directors for the Western Union Company (global money transfer, 2006-2011).

Ned C. Lautenbach (1944)

Year of Election or Appointment: 2000

Trustee

Chairman of the Independent Trustees

 

Mr. Lautenbach also serves as Trustee of other Fidelity funds. Mr. Lautenbach currently serves as the Lead Director of the Eaton Corporation Board of Directors (diversified industrial, 1997-present). Mr. Lautenbach is Chairman of the Board of Directors of the Philharmonic Center for the Arts in Naples, Florida (2012-present) and a member of the Council on Foreign Relations (1994-present). Previously, Mr. Lautenbach was a Partner/Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007).

Joseph Mauriello (1944)

Year of Election or Appointment: 2008

Trustee

 

Mr. Mauriello also serves as Trustee of other Fidelity funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).

Robert W. Selander (1950)

Year of Election or Appointment: 2011

Trustee

 

Mr. Selander also serves as Trustee of other Fidelity funds. Previously, Mr. Selander served as a Member of the Advisory Board of other Fidelity funds (2011), and Executive Vice Chairman (2010), Chief Executive Officer (2009-2010), and President and Chief Executive Officer (1997-2009) of Mastercard, Inc.

Cornelia M. Small (1944)

Year of Election or Appointment: 2005

Trustee

 

Ms. Small also serves as Trustee of other Fidelity funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.

William S. Stavropoulos (1939)

Year of Election or Appointment: 2001

Trustee

Vice Chairman of the Independent Trustees

 

Mr. Stavropoulos also serves as Trustee of other Fidelity funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and Maersk Inc. (industrial conglomerate), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of the Naples Philharmonic Center for the Arts. Previously, Mr. Stavropoulos served as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).

David M. Thomas (1949)

Year of Election or Appointment: 2008

Trustee

 

Mr. Thomas also serves as Trustee of other Fidelity funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), and as a member of the Board of Directors of Interpublic Group of Companies, Inc. (marketing communication, 2004-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).

+ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for each fund.

Advisory Board Member and Officers:

Correspondence intended for each officer and Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.

Name, Year of Birth; Principal Occupation

Peter S. Lynch (1944)

Year of Election or Appointment: 2003

Member of the Advisory Board

 

Mr. Lynch also serves as Member of the Advisory Board of other Fidelity funds. Mr. Lynch is Vice Chairman and a Director of FMR and FMR Co., Inc. In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).

Elizabeth Paige Baumann (1968)

Year of Election or Appointment: 2012

Anti-Money Laundering (AML) Officer

 

Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer of FMR LLC (2012-present) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as Vice President and Deputy Anti-Money Laundering Officer (2007-2012).

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 (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. Mr. Davis is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (2003-2010).

Adrien E. Deberghes (1967)

Year of Election or Appointment: 2008

Deputy Treasurer

 

Mr. Deberghes also serves as an officer of other funds. He 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).

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. (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: 2008

Secretary and Chief Legal Officer (CLO)

 

Mr. Goebel serves as Secretary and CLO of other funds. Mr. Goebel also serves as Secretary of Fidelity SelectCo, LLC (2013-present), Fidelity Investments Money Management, Inc. (FIMM) (2010-present) and Fidelity Research and Analysis Company (FRAC) (2010-present); General Counsel, Secretary, and Senior Vice President of FMR (2008-present) and FMR Co., Inc. (2008-present); Chief Legal Officer of Fidelity Management & Research (Hong Kong) Limited (2008-present); and Assistant Secretary of Fidelity Management & Research (Japan) Inc. (2008-present) and Fidelity Management & Research (U.K.) Inc. (2008-present). Previously, Mr. Goebel served as Secretary and CLO of other Fidelity funds (2008-2013), 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). Mr. Goebel has been employed by FMR LLC or an affiliate since 2001.

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 President of FMR's Equity Division (2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager.

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 FMR's Program Management Group (2010-2013), and Vice President of Valuation Oversight (2008-2010).

Melissa M. Reilly (1971)

Year of Election or Appointment: 2014

Vice President of certain Equity Funds

 

Ms. Reilly also serves as Vice President of other funds. Ms. Reilly is an employee of Fidelity Investments (2004-present).

Kenneth B. Robins (1969)

Year of Election or Appointment: 2008

President and Treasurer

 

Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (2013-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served in other fund officer roles.

Stephen Sadoski (1971)

Year of Election or Appointment: 2012

Deputy Treasurer

 

Mr. Sadoski also serves as Deputy Treasurer of other funds. He is an employee of Fidelity Investments (2012-present) and has served in another fund officer role. Prior to joining Fidelity Investments, Mr. Sadoski served as an assistant chief accountant in the Division of Investment Management of the Securities and Exchange Commission (SEC) (2009-2012) and as a senior manager at Deloitte & Touche LLP (1997-2009).

Stacie M. Smith (1974)

Year of Election or Appointment: 2013

Deputy 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).

Renee Stagnone (1975)

Year of Election or Appointment: 2013

Deputy Treasurer

 

Ms. Stagnone also serves as Deputy Treasurer of other funds. Ms. Stagnone is an employee of Fidelity Investments.

Linda J. Wondrack (1964)

Year of Election or Appointment: 2014

Chief Compliance Officer

 

Ms. Wondrack also serves as Chief Compliance Officer of other funds. Ms. Wondrack is Executive Vice President and head of the Ethics Office and Asset Management Compliance for Fidelity Investments (2012-present). Ms. Wondrack also serves as Chief Compliance Officer of Fidelity SelectCo, LLC (2014-present); Chief Compliance Officer of Impresa Management LLC (2013-present); and Chief Compliance Officer of FMR Co., Inc., Fidelity Investments Money Management, Inc., Fidelity Management & Research (Japan) Inc., Fidelity Management & Research (U.K.) Inc., Fidelity Management & Research (Hong Kong), Fidelity Management & Research Company, Pyramis Global Advisors, LLC, and Strategic Advisers, Inc., Ballyrock Investment Advisors LLC, and Northern Neck Investors LLC (2012-present). Previously, Ms. Wondrack served as Senior Vice President and Chief Compliance Officer for Columbia Management Investment Advisers, LLC (2005-2012); Chief Compliance Officer for certain funds within the Columbia Family of Funds (2007-2012); and Senior Vice President of Compliance Risk Management at Bank of America (2005-2010).

Joseph F. Zambello (1957)

Year of Election or Appointment: 2011

Deputy Treasurer

 

Mr. Zambello also serves as Deputy Treasurer of other funds. Mr. Zambello is an employee of Fidelity Investments. Previously, Mr. Zambello served as Vice President of FMR's Program Management Group (2009-2011) and Vice President of the Transfer Agent Oversight Group (2005-2009).

Annual Report


Distributions (Unaudited)

The Board of Trustees of Fidelity 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

Class K

08/11/14

08/08/14

$0.184

$2.934

The fund hereby designates as a capital gain dividend with respect to the taxable year ended June 30, 2014, $426,561,852, or, if subsequently determined to be different, the net capital gain of such year.

Class K designates 98% and 66% of the dividends distributed in August and December, respectively during the fiscal year as qualifying for the dividends-received deduction for corporate shareholders.

Class K designates 99% and 74% of the dividends distributed in August and December, respectively during the fiscal year as amounts which may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.

The fund will notify shareholders in January 2015 of amounts for use in preparing 2014 income tax returns.

Annual Report

Investment Adviser

Fidelity Management &
Research Company

Boston, MA

Investment Sub-Advisers

FMR Co., Inc.

Fidelity Management & Research
(U.K.) Inc.

Fidelity Management & Research
(Hong Kong) Limited

Fidelity Management & Research
(Japan) Inc.

General Distributor

Fidelity Distributors Corporation

Smithfield, RI

Transfer and Service Agents

Fidelity Investments Institutional
Operations Company, Inc.

Boston, MA

Fidelity Service Company, Inc.

Boston, MA

Custodian

The Northern Trust Company

Chicago, IL

(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St., Boston, MA 02210
www.fidelity.com

FID-K-UANN-0814
1.863249.105

Fidelity Fifty®

Annual Report

June 30, 2014

(Fidelity Cover Art)


Contents

Performance

(Click Here)

How the fund has done over time.

Management's Discussion of Fund Performance

(Click Here)

The Portfolio Manager's review of fund performance and strategy.

Shareholder Expense Example

(Click Here)

An example of shareholder expenses.

Investment Changes

(Click Here)

A summary of major shifts in the fund's investments over the past six months.

Investments

(Click Here)

A complete list of the fund's investments with their market values.

Financial Statements

(Click Here)

Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights.

Notes

(Click Here)

Notes to the financial statements.

Report of Independent Registered Public Accounting Firm

(Click Here)

 

Trustees and Officers

(Click Here)

 

To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 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. © 2014 FMR LLC. All rights reserved.

Annual Report

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.advisor.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.

Annual Report


Performance: The Bottom Line

Average annual total return reflects the change in the value of an investment, assuming reinvestment of the fund's 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 $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.

Average Annual Total Returns

Periods ended June 30, 2014

Past 1
year

Past 5
years

Past 10
years

Fidelity Fifty®

27.96%

18.88%

7.33%

$10,000 Over 10 Years

Let's say hypothetically that $10,000 was invested in Fidelity Fifty® on June 30, 2004. 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.

hhh1706831

Annual Report


Management's Discussion of Fund Performance

Market Recap: Despite a rough patch early in 2014, stocks posted a series of highs in a risk-taking environment. The S&P 500® Index returned 24.61% for the 12 months ending June 30, 2014, helped by a rise in consumer spending and the lowest unemployment rate since 2008. The U.S. Federal Reserve balanced stimulus reductions with continued low interest rates, aiding a broad advance: All 10 S&P 500® market sectors gained, seven by more than 20%. Materials (+33%) was tops, as investors seemed to anticipate continued economic improvement and renewed infrastructure build-outs. Information technology (+32%) benefited from large cash balances, rising dividends and stock buybacks, and innovative new products. Health care (+30%) was aided by new drugs and predictable reimbursements. Conversely, biggest laggard telecommunication services (+5%) battled slow growth and stiff pricing competition. Volatility remained low for much of the period, despite some spikes on geopolitical concerns over Russia and China. Examining stock returns across size and style segments: overall, investors showed some preference for large-cap stocks over small-caps and growth-oriented stocks over value. Lastly and for reference, the blue-chip Dow Jones Industrial AverageSM lagged the S&P 500® with a 15.56% return, while the growth-oriented Nasdaq Composite Index® advanced 31.17%.

Comments from Stephen DuFour, Portfolio Manager of Fidelity Fifty®: For the year, the fund returned 27.96%, outpacing the S&P 500®. The fund benefited from strong security selection in the health care, financials, information technology and industrials sectors. Top individual contributors included Illumina, which makes gene-sequencing tools, and Onyx Pharmaceuticals, a cancer drug company. Illumina's share price rose from about $75 to $179 during the period, buoyed by the company's leadership in the fast-growing gene-sequencing market. Onyx benefited from receiving a buyout offer at a premium price, and was no longer held at period end. In industrials, airline operator American Airlines Group saw its stock rise on improved industry pricing and faster-than-expected cost savings synergies from its merger with US Airways Group. None of these stocks was in the index. The fund lost ground in energy, mostly from a sizable overweighting in exploration-and-production company Cabot Oil & Gas. Its stock was pressured as pipeline capacity lagged production capacity in the Marcellus Shale. Not owning consumer technology leader and index component Apple also hurt results, as strong iPhone® sales, better-than-expected earnings and a huge stock buyback drove the stock sharply higher.

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.

Annual Report


Shareholder Expense Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management 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 (January 1, 2014 to June 30, 2014).

Actual Expenses

The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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 provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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.

Annual Report

Shareholder Expense Example - continued

 

Annualized
Expense Ratio
B

Beginning
Account Value
January 1, 2014

Ending
Account Value
June 30, 2014

Expenses Paid
During Period
*
January 1, 2014
to June 30, 2014

Actual

.84%

$ 1,000.00

$ 1,056.00

$ 4.28

HypotheticalA

 

$ 1,000.00

$ 1,020.63

$ 4.21

A 5% return per year before expenses

B Annualized expense ratio reflects expenses net of applicable fee waivers.

* Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

Annual Report


Investment Changes (Unaudited)

Top Ten Stocks as of June 30, 2014

 

% of fund's
net assets

% of fund's net assets
6 months ago

Adobe Systems, Inc.

5.4

3.1

Ameriprise Financial, Inc.

5.1

3.3

McGraw Hill Financial, Inc.

4.9

5.1

Cummins, Inc.

4.9

4.8

American Airlines Group, Inc.

4.8

0.3

Google, Inc. Class A

4.5

4.9

Cabot Oil & Gas Corp.

4.1

5.3

Halliburton Co.

3.2

0.0

Range Resources Corp.

3.1

0.0

Noble Energy, Inc.

3.0

2.8

 

43.0

Top Five Market Sectors as of June 30, 2014

 

% of fund's
net assets

% of fund's net assets
6 months ago

Information Technology

24.2

27.0

Energy

19.0

12.8

Industrials

16.0

13.3

Financials

13.0

16.4

Health Care

11.8

15.1

Asset Allocation (% of fund's net assets)

As of June 30, 2014*

As of December 31, 2013**

hhh1706667

Stocks 99.5%

 

hhh1706667

Stocks 99.7%

 

hhh1706673

Short-Term
Investments and
Net Other Assets
(Liabilities) 0.5%

 

hhh1706673

Short-Term
Investments and
Net Other Assets
(Liabilities) 0.3%

 

* Foreign investments

5.1%

 

** Foreign investments

4.2%

 

hhh1706837

Annual Report


Investments June 30, 2014

Showing Percentage of Net Assets

Common Stocks - 99.5%

Shares

Value

CONSUMER DISCRETIONARY - 7.6%

Hotels, Restaurants & Leisure - 2.2%

Marriott International, Inc. Class A

268,000

$ 17,178,800

Media - 2.9%

Comcast Corp. Class A

304,000

16,318,720

The Walt Disney Co.

76,000

6,516,240

 

22,834,960

Specialty Retail - 2.5%

AutoZone, Inc. (a)

37,200

19,948,128

TOTAL CONSUMER DISCRETIONARY

59,961,888

CONSUMER STAPLES - 3.4%

Food & Staples Retailing - 2.4%

CVS Caremark Corp.

254,000

19,143,980

Personal Products - 1.0%

Estee Lauder Companies, Inc. Class A

106,000

7,871,560

TOTAL CONSUMER STAPLES

27,015,540

ENERGY - 19.0%

Energy Equipment & Services - 3.2%

Halliburton Co.

357,000

25,350,570

Oil, Gas & Consumable Fuels - 15.8%

Cabot Oil & Gas Corp.

956,000

32,637,840

Devon Energy Corp.

133,000

10,560,200

EOG Resources, Inc.

90,000

10,517,400

Newfield Exploration Co. (a)

307,000

13,569,400

Noble Energy, Inc.

311,798

24,151,873

Pioneer Natural Resources Co.

44,500

10,226,545

Range Resources Corp.

278,000

24,172,100

 

125,835,358

TOTAL ENERGY

151,185,928

FINANCIALS - 13.0%

Banks - 1.7%

Wells Fargo & Co.

259,000

13,613,040

Capital Markets - 5.1%

Ameriprise Financial, Inc.

336,200

40,344,000

Consumer Finance - 0.5%

American Express Co.

39,000

3,699,930

Common Stocks - continued

Shares

Value

FINANCIALS - continued

Diversified Financial Services - 5.7%

McGraw Hill Financial, Inc.

472,000

$ 39,190,160

Moody's Corp.

72,000

6,311,520

 

45,501,680

TOTAL FINANCIALS

103,158,650

HEALTH CARE - 11.8%

Biotechnology - 2.8%

Biogen Idec, Inc. (a)

45,000

14,188,950

Intercept Pharmaceuticals, Inc. (a)

34,477

8,158,293

 

22,347,243

Health Care Equipment & Supplies - 1.7%

Covidien PLC

109,000

9,829,620

The Cooper Companies, Inc.

27,327

3,703,628

 

13,533,248

Life Sciences Tools & Services - 3.4%

Illumina, Inc. (a)

31,700

5,659,718

Thermo Fisher Scientific, Inc.

183,000

21,594,000

 

27,253,718

Pharmaceuticals - 3.9%

Actavis PLC (a)

40,720

9,082,596

Johnson & Johnson

135,000

14,123,700

Prestige Brands Holdings, Inc. (a)

221,000

7,489,690

 

30,695,986

TOTAL HEALTH CARE

93,830,195

INDUSTRIALS - 16.0%

Airlines - 5.2%

American Airlines Group, Inc.

880,000

37,804,800

Spirit Airlines, Inc. (a)

56,107

3,548,207

 

41,353,007

Machinery - 4.9%

Cummins, Inc.

251,200

38,757,648

Road & Rail - 5.0%

Norfolk Southern Corp.

194,100

19,998,123

Union Pacific Corp.

197,000

19,650,750

 

39,648,873

Common Stocks - continued

Shares

Value

INDUSTRIALS - continued

Trading Companies & Distributors - 0.9%

AerCap Holdings NV (a)

158,000

$ 7,236,400

TOTAL INDUSTRIALS

126,995,928

INFORMATION TECHNOLOGY - 24.2%

Electronic Equipment & Components - 3.7%

TE Connectivity Ltd.

239,000

14,779,760

Zebra Technologies Corp. Class A (a)

182,000

14,982,240

 

29,762,000

Internet Software & Services - 6.1%

Facebook, Inc. Class A (a)

185,300

12,468,837

Google, Inc. Class A (a)

61,200

35,781,804

 

48,250,641

IT Services - 2.4%

Fidelity National Information Services, Inc.

263,000

14,396,620

MasterCard, Inc. Class A

63,000

4,628,610

 

19,025,230

Semiconductors & Semiconductor Equipment - 2.0%

Applied Materials, Inc.

345,000

7,779,750

Micron Technology, Inc. (a)

253,000

8,336,350

 

16,116,100

Software - 10.0%

Adobe Systems, Inc. (a)

595,025

43,056,008

Microsoft Corp.

500,000

20,850,000

Oracle Corp.

159,000

6,444,270

salesforce.com, Inc. (a)

152,700

8,868,816

 

79,219,094

TOTAL INFORMATION TECHNOLOGY

192,373,065

MATERIALS - 0.5%

Chemicals - 0.5%

Monsanto Co.

30,000

3,742,200

UTILITIES - 4.0%

Independent Power and Renewable Electricity Producers - 0.1%

NextEra Energy Partners LP

12,000

402,120

Common Stocks - continued

Shares

Value

UTILITIES - continued

Independent Power Producers & Energy Traders - 1.5%

Dynegy, Inc. (a)

136,884

$ 4,763,563

NRG Energy, Inc.

193,000

7,179,600

 

11,943,163

Multi-Utilities - 2.4%

Sempra Energy

183,000

19,161,930

TOTAL UTILITIES

31,507,213

TOTAL COMMON STOCKS

(Cost $717,108,646)


789,770,607

Money Market Funds - 0.3%

 

 

 

 

Fidelity Cash Central Fund, 0.11% (b)
(Cost $2,551,460)

2,551,460


2,551,460

TOTAL INVESTMENT PORTFOLIO - 99.8%

(Cost $719,660,106)

792,322,067

NET OTHER ASSETS (LIABILITIES) - 0.2%

1,524,449

NET ASSETS - 100%

$ 793,846,516

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

$ 7,983

Fidelity Securities Lending Cash Central Fund

21,476

Total

$ 29,459

Other Information

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.

Annual Report


Financial Statements

Statement of Assets and Liabilities

 

June 30, 2014

 

 

 

Assets

Investment in securities, at value - See accompanying schedule:

Unaffiliated issuers (cost $717,108,646)

$ 789,770,607

 

Fidelity Central Funds (cost $2,551,460)

2,551,460

 

Total Investments (cost $719,660,106)

 

$ 792,322,067

Receivable for investments sold

5,923,975

Receivable for fund shares sold

219,373

Dividends receivable

368,700

Distributions receivable from Fidelity Central Funds

264

Receivable from investment adviser for expense reductions

568

Other receivables

7,797

Total assets

798,842,744

 

 

 

Liabilities

Payable to custodian bank

$ 6,480

Payable for investments purchased

4,101,735

Payable for fund shares redeemed

353,281

Accrued management fee

332,947

Other affiliated payables

145,071

Other payables and accrued expenses

56,714

Total liabilities

4,996,228

 

 

 

Net Assets

$ 793,846,516

Net Assets consist of:

 

Paid in capital

$ 753,635,813

Distributions in excess of net investment income

(760,067)

Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions

(31,690,440)

Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies

72,661,210

Net Assets, for 26,976,826 shares outstanding

$ 793,846,516

Net Asset Value, offering price and redemption price per share ($793,846,516 ÷ 26,976,826 shares)

$ 29.43

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

Annual Report

Statement of Operations

 

Year ended June 30, 2014

 

 

 

Investment Income

 

 

Dividends

 

$ 5,006,284

Interest

 

4

Income from Fidelity Central Funds

 

29,459

Total income

 

5,035,747

 

 

 

Expenses

Management fee
Basic fee

$ 4,150,988

Performance adjustment

233,775

Transfer agent fees

1,464,010

Accounting and security lending fees

266,426

Custodian fees and expenses

58,255

Independent trustees' compensation

3,259

Registration fees

36,997

Audit

46,698

Legal

4,239

Miscellaneous

6,412

Total expenses before reductions

6,271,059

Expense reductions

(29,280)

6,241,779

Net investment income (loss)

(1,206,032)

Realized and Unrealized Gain (Loss)

Net realized gain (loss) on:

Investment securities:

 

 

Unaffiliated issuers

171,815,865

Foreign currency transactions

6,340

Total net realized gain (loss)

 

171,822,205

Change in net unrealized appreciation (depreciation) on:

Investment securities

9,994,553

Assets and liabilities in foreign currencies

683

Total change in net unrealized appreciation (depreciation)

 

9,995,236

Net gain (loss)

181,817,441

Net increase (decrease) in net assets resulting from operations

$ 180,611,409

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

Annual Report

Financial Statements - continued

Statement of Changes in Net Assets

 

Year ended
June 30,
2014

Year ended
June 30,
2013

Increase (Decrease) in Net Assets

 

 

Operations

 

 

Net investment income (loss)

$ (1,206,032)

$ 1,374,363

Net realized gain (loss)

171,822,205

113,784,552

Change in net unrealized appreciation (depreciation)

9,995,236

12,277,520

Net increase (decrease) in net assets resulting
from operations

180,611,409

127,436,435

Distributions to shareholders from net investment income

-

(2,203,361)

Share transactions
Proceeds from sales of shares

57,920,748

44,588,976

Reinvestment of distributions

-

2,146,958

Cost of shares redeemed

(111,976,261)

(176,512,715)

Net increase (decrease) in net assets resulting from share transactions

(54,055,513)

(129,776,781)

Total increase (decrease) in net assets

126,555,896

(4,543,707)

 

 

 

Net Assets

Beginning of period

667,290,620

671,834,327

End of period (including distributions in excess of net investment income of $760,067 and distributions in excess of net investment income of $467,918, respectively)

$ 793,846,516

$ 667,290,620

Other Information

Shares

Sold

2,124,009

2,140,763

Issued in reinvestment of distributions

-

108,835

Redeemed

(4,165,726)

(8,424,922)

Net increase (decrease)

(2,041,717)

(6,175,324)

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

Annual Report

Financial Highlights

Years ended June 30,

2014

2013

2012

2011

2010

Selected Per-Share Data

 

 

 

 

 

Net asset value, beginning of period

$ 23.00

$ 19.09

$ 18.97

$ 13.95

$ 12.59

Income from Investment Operations

 

 

 

 

 

Net investment income (loss) B

  (.04)

  .04

  .05

  .06

  .07

Net realized and unrealized gain (loss)

  6.47

  3.94

  .12

  5.05

  1.35

Total from investment operations

  6.43

  3.98

  .17

  5.11

  1.42

Distributions from net investment income

  -

  (.07)

  (.05)

  (.09)

  (.05)

Distributions from net realized gain

  -

  -

  -

  -

  (.02)

Total distributions

  -

  (.07)

  (.05)

  (.09)

  (.06)F

Net asset value, end of period

$ 29.43

$ 23.00

$ 19.09

$ 18.97

$ 13.95

Total ReturnA

  27.96%

  20.89%

  .93%

  36.71%

  11.26%

Ratios to Average Net AssetsC, E

 

 

 

 

 

Expenses before reductions

  .83%

  .83%

  .94%

  .71%

  .73%

Expenses net of fee waivers, if any

  .83%

  .83%

  .94%

  .71%

  .73%

Expenses net of all reductions

  .83%

  .80%

  .92%

  .69%

  .69%

Net investment income (loss)

  (.16)%

  .20%

  .26%

  .36%

  .50%

Supplemental Data

 

 

 

 

 

Net assets, end of period (000 omitted)

$ 793,847

$ 667,291

$ 671,834

$ 825,367

$ 646,032

Portfolio turnover rateD

  197%

  246%

  277%

  257%

  246%

A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.

B Calculated based on average shares outstanding during the period.

C 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.

D Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

E Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the Fund 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 Fund.

F Total distributions of $.06 per share is comprised of distributions from net investment income of $.045 and distributions from net realized gain of $.015 per share.

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

Annual Report


Notes to Financial Statements

For the period ended June 30, 2014

1. Organization.

Fidelity Fifty (the Fund) is a non-diversified fund of Fidelity Hastings Street Trust (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. Effective after the close of business on October 12, 2012, the Fund was closed to new accounts with certain exceptions.

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 .01%.

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. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When

Annual Report

Notes to Financial Statements - continued

3. Significant Accounting Policies - continued

Investment Valuation - continued

current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (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 is responsible for approving and reporting to the Board all fair value determinations.

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.

Annual Report

3. Significant Accounting Policies - continued

Investment Valuation - continued

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy.

Foreign Currency. The Fund 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 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. 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.

Expenses. 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

Annual Report

Notes to Financial Statements - continued

3. Significant Accounting Policies - continued

Expenses - continued

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.

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 June 30, 2014, 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. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.

Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.

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, 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:

Gross unrealized appreciation

$ 76,748,633

Gross unrealized depreciation

(4,826,875)

Net unrealized appreciation (depreciation) on securities and other investments

$ 71,921,758

 

 

Tax Cost

$ 720,400,309

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3. Significant Accounting Policies - continued

Income Tax Information and Distributions to Shareholders - continued

The tax-based components of distributable earnings as of period end were as follows:

Capital loss carryforward

$ (30,950,236)

Net unrealized appreciation (depreciation)

$ 71,921,007

Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is 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

$ (30,950,236)

The tax character of distributions paid was as follows:

 

June 30, 2014

June 30, 2013

Ordinary Income

$ -

$ 2,203,361

4. Purchases and Sales of Investments.

Purchases and sales of securities, other than short-term securities, aggregated $1,458,199,024 and $1,510,137,017, respectively.

5. Fees and Other Transactions with Affiliates.

Management Fee. Fidelity Management & Research Company (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 the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to

Annual Report

Notes to Financial Statements - continued

5. Fees and Other Transactions with Affiliates - continued

Management Fee - continued

the management fee is based on the Fund's relative investment performance as compared to its benchmark index, the S&P 500 Index, over the same 36 month performance period. For the reporting period, the total annual management fee rate, including the performance adjustment, was ..58% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.

Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of the investment adviser, is the Fund's transfer, dividend disbursing and shareholder servicing agent. FIIOC receives account fees and asset-based fees that vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to an annual rate of .19% of average net assets.

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 $28,343 for the period.

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 $1,322 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. For equity securities, a lending agent is used and may loan

Annual Report

7. Security Lending - continued

securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. 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. 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. At period end, there were no security loans outstanding. 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 $21,476, including $652 from securities loaned to FCM.

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 $18,274 for the period.

In addition, the investment adviser reimbursed a portion of the Fund's operating expenses during the period in the amount of $11,006.

9. 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.

Annual Report


Report of Independent Registered Public Accounting Firm

To the Trustees of Fidelity Hastings Street Trust and the Shareholders of Fidelity Fifty:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Fifty (a fund of Fidelity Hastings Street Trust) at June 30, 2014, 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. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity Fifty's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements 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 are free of material misstatement. An audit 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, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at June 30, 2014 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

Boston, Massachusetts

August 14, 2014

Annual Report


Trustees and Officers

The Trustees, Member of the Advisory Board, 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. Except for James C. Curvey, each of the Trustees oversees 173 funds. Mr. Curvey oversees 397 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 (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. The officers and Advisory Board Member hold office without limit in time, except that any officer and 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.

Experience, Skills, Attributes, and Qualifications of the Fund's 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.

Annual Report

Trustees and Officers - continued

Board Structure and Oversight Function. James C. Curvey is an interested person (as defined in the 1940 Act) 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. Ned C. Lautenbach 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 equity and high income funds and another Board oversees Fidelity's investment-grade bond, money market, and asset allocation funds. The asset allocation funds may invest in Fidelity funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity funds overseen by each Board.

The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. For example, a working group comprised of Independent Trustees and FMR has worked and continues to work to review the Fidelity funds' valuation-related activities, reporting and risk management. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of FMR's risk management program for the Fidelity funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Fund's Trustees."

Annual Report

The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.

Interested Trustees*:

Correspondence intended for each 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+

James C. Curvey (1935)

Year of Election or Appointment: 2007

Trustee

Chairman of the Board of Trustees

 

Mr. Curvey also serves as Trustee of other Fidelity funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (2009-present), and Vice Chairman (2007-present) and Director of FMR LLC. In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the Trustees of Villanova University. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (2009-2014), a Director of FMR (2007-2014), a Director of FMR Co., Inc. (2007-2014) and was the Vice Chairman (2006-2007) and Director (2000-2007) of FMR Corp.

Charles S. Morrison (1960)

Year of Election or Appointment: 2014

Trustee

 

Mr. Morrison also serves as Trustee of other funds. He serves as President, Asset Management (2014-present) and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.

* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR.

+ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for the fund.

Annual Report

Independent Trustees:

Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.

Name, Year of Birth; Principal Occupations and Other Relevant Experience+

Dennis J. Dirks (1948)

Year of Election or Appointment: 2005

Trustee

 

Mr. Dirks also serves as Trustee of other Fidelity funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), and as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008). Mr. Dirks is a member of the Independent Directors Council (IDC) Governing Council (2010-present) and Board of Directors for The Brookville Center for Children's Services, Inc. (2009-present).

Alan J. Lacy (1953)

Year of Election or Appointment: 2008

Trustee

 

Mr. Lacy also serves as Trustee of other Fidelity funds. Mr. Lacy serves as Senior Adviser (2007-present) of Oak Hill Capital Partners, L.P. (private equity). Mr. Lacy also served as Chief Executive Officer (2000-2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation and Sears, Roebuck and Co. (retail). In addition, Mr. Lacy serves as a member of the Board of Directors of Dave & Buster's Entertainment, Inc. (restaurant and entertainment complexes, 2010-present), Earth Fare, Inc. (retail grocery, 2012-present), The Hillman Companies, Inc. (hardware wholesalers, 2010-present), and Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). Mr. Lacy is a member of the Board of Trustees of The National Parks Conservation Association (2006-present). Previously, Mr. Lacy served as Chairman of the Board of Trustees of the National Parks Conservation Association (2008-2011) and as a member of the Board of Directors for the Western Union Company (global money transfer, 2006-2011).

Ned C. Lautenbach (1944)

Year of Election or Appointment: 2000

Trustee

Chairman of the Independent Trustees

 

Mr. Lautenbach also serves as Trustee of other Fidelity funds. Mr. Lautenbach currently serves as the Lead Director of the Eaton Corporation Board of Directors (diversified industrial, 1997-present). Mr. Lautenbach is Chairman of the Board of Directors of the Philharmonic Center for the Arts in Naples, Florida (2012-present) and a member of the Council on Foreign Relations (1994-present). Previously, Mr. Lautenbach was a Partner/Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007).

Joseph Mauriello (1944)

Year of Election or Appointment: 2008

Trustee

 

Mr. Mauriello also serves as Trustee of other Fidelity funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).

Robert W. Selander (1950)

Year of Election or Appointment: 2011

Trustee

 

Mr. Selander also serves as Trustee of other Fidelity funds. Previously, Mr. Selander served as a Member of the Advisory Board of other Fidelity funds (2011), and Executive Vice Chairman (2010), Chief Executive Officer (2009-2010), and President and Chief Executive Officer (1997-2009) of Mastercard, Inc.

Cornelia M. Small (1944)

Year of Election or Appointment: 2005

Trustee

 

Ms. Small also serves as Trustee of other Fidelity funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.

William S. Stavropoulos (1939)

Year of Election or Appointment: 2001

Trustee

Vice Chairman of the Independent Trustees

 

Mr. Stavropoulos also serves as Trustee of other Fidelity funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and Maersk Inc. (industrial conglomerate), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of the Naples Philharmonic Center for the Arts. Previously, Mr. Stavropoulos served as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).

David M. Thomas (1949)

Year of Election or Appointment: 2008

Trustee

 

Mr. Thomas also serves as Trustee of other Fidelity funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), and as a member of the Board of Directors of Interpublic Group of Companies, Inc. (marketing communication, 2004-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).

+ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for the fund.

Advisory Board Member and Officers:

Correspondence intended for each officer and Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.

Name, Year of Birth; Principal Occupation

Peter S. Lynch (1944)

Year of Election or Appointment: 2003

Member of the Advisory Board

 

Mr. Lynch also serves as Member of the Advisory Board of other Fidelity funds. Mr. Lynch is Vice Chairman and a Director of FMR and FMR Co., Inc. In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).

Elizabeth Paige Baumann (1968)

Year of Election or Appointment: 2012

Anti-Money Laundering (AML) Officer

 

Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer of FMR LLC (2012-present) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as Vice President and Deputy Anti-Money Laundering Officer (2007-2012).

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 (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. Mr. Davis is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (2003-2010).

Adrien E. Deberghes (1967)

Year of Election or Appointment: 2008

Deputy Treasurer

 

Mr. Deberghes also serves as an officer of other funds. He 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).

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. (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: 2008

Secretary and Chief Legal Officer (CLO)

 

Mr. Goebel serves as Secretary and CLO of other funds. Mr. Goebel also serves as Secretary of Fidelity SelectCo, LLC (2013-present), Fidelity Investments Money Management, Inc. (FIMM) (2010-present) and Fidelity Research and Analysis Company (FRAC) (2010-present); General Counsel, Secretary, and Senior Vice President of FMR (2008-present) and FMR Co., Inc. (2008-present); Chief Legal Officer of Fidelity Management & Research (Hong Kong) Limited (2008-present); and Assistant Secretary of Fidelity Management & Research (Japan) Inc. (2008-present) and Fidelity Management & Research (U.K.) Inc. (2008-present). Previously, Mr. Goebel served as Secretary and CLO of other Fidelity funds (2008-2013), 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). Mr. Goebel has been employed by FMR LLC or an affiliate since 2001.

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 President of FMR's Equity Division (2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager.

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 FMR's Program Management Group (2010-2013), and Vice President of Valuation Oversight (2008-2010).

Melissa M. Reilly (1971)

Year of Election or Appointment: 2014

Vice President of certain Equity Funds

 

Ms. Reilly also serves as Vice President of other funds. Ms. Reilly is an employee of Fidelity Investments (2004-present).

Kenneth B. Robins (1969)

Year of Election or Appointment: 2008

President and Treasurer

 

Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (2013-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served in other fund officer roles.

Stephen Sadoski (1971)

Year of Election or Appointment: 2012

Deputy Treasurer

 

Mr. Sadoski also serves as Deputy Treasurer of other funds. He is an employee of Fidelity Investments (2012-present) and has served in another fund officer role. Prior to joining Fidelity Investments, Mr. Sadoski served as an assistant chief accountant in the Division of Investment Management of the Securities and Exchange Commission (SEC) (2009-2012) and as a senior manager at Deloitte & Touche LLP (1997-2009).

Stacie M. Smith (1974)

Year of Election or Appointment: 2013

Deputy 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).

Renee Stagnone (1975)

Year of Election or Appointment: 2013

Deputy Treasurer

 

Ms. Stagnone also serves as Deputy Treasurer of other funds. Ms. Stagnone is an employee of Fidelity Investments.

Linda J. Wondrack (1964)

Year of Election or Appointment: 2014

Chief Compliance Officer

 

Ms. Wondrack also serves as Chief Compliance Officer of other funds. Ms. Wondrack is Executive Vice President and head of the Ethics Office and Asset Management Compliance for Fidelity Investments (2012-present). Ms. Wondrack also serves as Chief Compliance Officer of Fidelity SelectCo, LLC (2014-present); Chief Compliance Officer of Impresa Management LLC (2013-present); and Chief Compliance Officer of FMR Co., Inc., Fidelity Investments Money Management, Inc., Fidelity Management & Research (Japan) Inc., Fidelity Management & Research (U.K.) Inc., Fidelity Management & Research (Hong Kong), Fidelity Management & Research Company, Pyramis Global Advisors, LLC, and Strategic Advisers, Inc., Ballyrock Investment Advisors LLC, and Northern Neck Investors LLC (2012-present). Previously, Ms. Wondrack served as Senior Vice President and Chief Compliance Officer for Columbia Management Investment Advisers, LLC (2005-2012); Chief Compliance Officer for certain funds within the Columbia Family of Funds (2007-2012); and Senior Vice President of Compliance Risk Management at Bank of America (2005-2010).

Joseph F. Zambello (1957)

Year of Election or Appointment: 2011

Deputy Treasurer

 

Mr. Zambello also serves as Deputy Treasurer of other funds. Mr. Zambello is an employee of Fidelity Investments. Previously, Mr. Zambello served as Vice President of FMR's Program Management Group (2009-2011) and Vice President of the Transfer Agent Oversight Group (2005-2009).

Annual Report

Investment Adviser

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Boston, MA

Investment Sub-Advisers

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(Hong Kong) Limited

Fidelity Management & Research
(Japan) Inc.

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(U.K.) Inc.

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Smithfield, RI

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Operations Company, Inc.

Boston, MA

Fidelity Service Company, Inc.

Boston, MA

Custodian

Citibank, N.A.

New York, NY

The Fidelity Telephone Connection

Mutual Fund 24-Hour Service

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and Account Assistance 1-800-544-6666

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for the deaf and hearing impaired
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hhh1706678
Automated line for quickest service

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www.fidelity.com

FIF-UANN-0814
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(Fidelity Investment logo)(registered trademark)

Fidelity Advisor®

Series Growth & Income

Fund

Annual Report

June 30, 2014

(Fidelity Cover Art)


Contents

Performance

(Click Here)

How the fund has done over time.

Management's Discussion of Fund Performance

(Click Here)

The Portfolio Manager's review of fund performance and strategy.

Shareholder Expense Example

(Click Here)

An example of shareholder expenses.

Investment Changes

(Click Here)

A summary of major shifts in the fund's investments over the past six months.

Investments

(Click Here)

A complete list of the fund's investments with their market values.

Financial Statements

(Click Here)

Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights.

Notes

(Click Here)

Notes to the financial statements.

Report of Independent Registered Public Accounting Firm

(Click Here)

 

Trustees and Officers

(Click Here)

 

Distributions

(Click Here)

 

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. © 2014 FMR LLC. All rights reserved.

Annual Report

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.advisor.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.

Annual Report


Performance: The Bottom Line

Average annual total return reflects the change in the value of an investment, assuming reinvestment of the fund's 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 $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.

Average Annual Total Returns

Periods ended June 30, 2014

 

Past 1 year

Life of
Fund
A

  Fidelity Advisor® Series Growth & Income Fund B

 

22.48%

25.04%

A From December 6, 2012

B Prior to August 1, 2013, Fidelity Advisor® Series Growth & Income Fund was named Fidelity Advisor Series Mega Cap 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 Life of Fund

Let's say hypothetically that $10,000 was invested in Fidelity Advisor Series Growth & Income Fund on December 6, 2012, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index and the Russell Top 200® Index performed over the same period.

Effective August 1, 2013, Fidelity Advisor Series Growth & Income Fund began comparing its performance to the S&P 500® Index rather than the Russell Top 200® Index because the S&P 500 Index provides a more appropriate performance comparison for the fund.

hhh1706851

Annual Report


Management's Discussion of Fund Performance

Market Recap: Despite intermittent volatility driven by geopolitical concerns, stocks posted a series of new highs during the 12 months ending June 30, 2014, amid a decidedly favorable environment for riskier assets. The S&P 500® Index rose 24.61% for the year, helped by a rise in consumer spending and the lowest unemployment rate since 2008. The U.S. Federal Reserve balanced stimulus reductions with continued low interest rates, aiding a broad advance. All 10 S&P 500® market sectors gained, seven by more than 20%. Materials (+33%) was tops, as investors seemed to anticipate sustained economic improvement and renewed infrastructure build-outs. Information technology (+32%) benefited from large cash balances, rising dividends and stock buybacks, and a bevy of innovations. Health care (+30%) was aided by new drugs and predictable reimbursements. Conversely, the biggest laggard, telecommunication services (+5%), battled slow growth and stiff pricing competition. Across size and style segments: overall, investors showed some preference for large-cap stocks over small-caps and growth stocks over value, although market leadership rotated during the year. With the "risk-on" trade alive and well, the growth-oriented Nasdaq Composite Index® flourished, advancing 31.17%, while the blue-chip Dow Jones Industrial AverageSM delivered a more subdued 15.56% return.

Comments from Matthew Fruhan, Portfolio Manager of Fidelity Advisor® Series Growth & Income Fund: For the year, the fund returned 22.48%. For comparison, the S&P 500® advanced 24.61%, the Russell Top 200® Index returned 24.69% and the custom linked index specific to this fund added 24.69%. Relative to the linked index, it hurt the most by far to overweight big-box retailer Target, which was among the fund's biggest holdings. The lingering effects of the firm's troubled expansion into Canada and a holiday-season credit breach continued to weigh on the stock, but this weak stretch allowed me to add notable exposure at a valuation I liked. Picks in information technology hurt, as we didn't own outperforming index component Facebook, while choices in industrials and consumer discretionary also were weak. Stock selection and an overweight in financials detracted, including investment banks JPMorgan Chase and Citigroup, both of which were among the fund's largest holdings. Stock selection in consumer staples helped the most, especially drugstore chain Walgreen, while an overweight in the outperforming shares of natural gas pipeline firm Williams Companies 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.

Annual Report


Shareholder Expense Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management 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 (January 1, 2014 to June 30, 2014).

Actual Expenses

The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line 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 provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's 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.

Annual Report

 

Annualized
Expense Ratio
B

Beginning
Account Value
January 1, 2014

Ending
Account Value
June 30, 2014

Expenses Paid
During Period
*
January 1, 2014
to June 30, 2014

Actual

.67%

$ 1,000.00

$ 1,063.20

$ 3.43

HypotheticalA

 

$ 1,000.00

$ 1,021.47

$ 3.36

A 5% return per year before expenses

B Annualized expense ratio reflects expenses net of applicable fee waivers.

* Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

Annual Report


Investment Changes (Unaudited)

Top Ten Stocks as of June 30, 2014

 

% of fund's
net assets

% of fund's net assets
6 months ago

JPMorgan Chase & Co.

4.0

3.9

Apple, Inc.

3.7

3.8

Microsoft Corp.

3.2

2.8

General Electric Co.

3.0

3.1

Chevron Corp.

2.8

2.4

Citigroup, Inc.

2.1

2.1

Target Corp.

2.0

1.8

Verizon Communications, Inc.

1.9

1.2

Comcast Corp. Class A (special) (non-vtg.)

1.9

1.7

Procter & Gamble Co.

1.8

1.9

 

26.4

Top Five Market Sectors as of June 30, 2014

 

% of fund's
net assets

% of fund's net assets
6 months ago

Information Technology

19.4

19.0

Financials

19.1

19.1

Consumer Staples

12.2

12.0

Energy

12.0

12.0

Industrials

11.4

11.3

Asset Allocation (% of fund's net assets)

As of June 30, 2014*

As of December 31, 2013**

hhh1706667

Stocks 99.1%

 

hhh1706667

Stocks 98.8%

 

hhh1706855

Convertible
Securities 0.8%

 

hhh1706855

Convertible
Securities 0.8%

 

hhh1706858

Other Investments 0.1%

 

hhh1706858

Other Investments 0.1%

 

hhh1706673

Short-Term
Investments and
Net Other Assets (Liabilities) 0.0%

 

hhh1706673

Short-Term
Investments and
Net Other Assets (Liabilities) 0.3%

 

* Foreign investments

13.5%

 

** Foreign investments

13.7%

 

hhh1706863

Amount represents less than 0.1%

Annual Report


Investments June 30, 2014

Showing Percentage of Net Assets

Common Stocks - 99.1%

Shares

Value

CONSUMER DISCRETIONARY - 9.8%

Diversified Consumer Services - 0.3%

H&R Block, Inc.

138,600

$ 4,645,872

Hotels, Restaurants & Leisure - 1.9%

Darden Restaurants, Inc.

89,500

4,141,165

Domino's Pizza, Inc.

7,600

555,484

McDonald's Corp.

88,895

8,955,282

Yum! Brands, Inc.

144,201

11,709,121

 

25,361,052

Household Durables - 0.1%

Tupperware Brands Corp.

18,900

1,581,930

Media - 3.8%

Comcast Corp. Class A (special) (non-vtg.)

481,490

25,677,862

Lamar Advertising Co. Class A

22,600

1,197,800

Scripps Networks Interactive, Inc. Class A

12,350

1,002,079

Sinclair Broadcast Group, Inc. Class A (d)

160,271

5,569,417

Time Warner, Inc.

254,841

17,902,580

 

51,349,738

Multiline Retail - 2.0%

Target Corp.

460,009

26,657,522

Specialty Retail - 1.6%

DSW, Inc. Class A

56,700

1,584,198

Lewis Group Ltd.

82,463

502,454

Lowe's Companies, Inc.

377,877

18,134,317

Sally Beauty Holdings, Inc. (a)

5,400

135,432

Staples, Inc.

115,028

1,246,904

 

21,603,305

Textiles, Apparel & Luxury Goods - 0.1%

adidas AG

15,900

1,610,465

TOTAL CONSUMER DISCRETIONARY

132,809,884

CONSUMER STAPLES - 12.2%

Beverages - 3.7%

Diageo PLC

140,155

4,463,811

Molson Coors Brewing Co. Class B

56,860

4,216,738

PepsiCo, Inc.

130,194

11,631,532

Pernod Ricard SA (d)

11,100

1,332,972

Remy Cointreau SA

5,205

478,877

Common Stocks - continued

Shares

Value

CONSUMER STAPLES - continued

Beverages - continued

SABMiller PLC

99,829

$ 5,788,308

The Coca-Cola Co.

521,748

22,101,245

 

50,013,483

Food & Staples Retailing - 1.6%

CVS Caremark Corp.

105,790

7,973,392

Kroger Co.

87,963

4,348,011

Walgreen Co.

134,238

9,951,063

 

22,272,466

Food Products - 0.5%

Kellogg Co.

97,879

6,430,650

Household Products - 1.9%

Procter & Gamble Co.

305,317

23,994,863

Svenska Cellulosa AB (SCA) (B Shares)

67,906

1,769,415

 

25,764,278

Tobacco - 4.5%

British American Tobacco PLC sponsored ADR

195,885

23,325,986

Lorillard, Inc.

289,486

17,649,961

Philip Morris International, Inc.

158,987

13,404,194

Reynolds American, Inc.

108,100

6,523,835

 

60,903,976

TOTAL CONSUMER STAPLES

165,384,853

ENERGY - 11.8%

Energy Equipment & Services - 1.2%

Ensco PLC Class A

91,000

5,056,870

National Oilwell Varco, Inc.

8,600

708,210

Oceaneering International, Inc.

23,200

1,812,616

Schlumberger Ltd.

72,420

8,541,939

 

16,119,635

Oil, Gas & Consumable Fuels - 10.6%

Access Midstream Partners LP

43,560

2,768,238

Apache Corp.

106,547

10,720,759

Atlas Pipeline Partners LP

76,674

2,637,586

BG Group PLC

579,864

12,255,884

Canadian Natural Resources Ltd.

162,245

7,455,014

Chevron Corp.

286,488

37,401,008

EQT Midstream Partners LP

12,100

1,170,554

EV Energy Partners LP

10,600

419,972

Common Stocks - continued

Shares

Value

ENERGY - continued

Oil, Gas & Consumable Fuels - continued

Exxon Mobil Corp.

26,660

$ 2,684,129

Golar LNG Ltd. (d)

30,700

1,845,070

Imperial Oil Ltd.

138,400

7,293,222

Magellan Midstream Partners LP

1,320

110,933

Markwest Energy Partners LP

152,771

10,935,348

MPLX LP

14,500

935,250

Occidental Petroleum Corp.

152,891

15,691,203

Peabody Energy Corp.

76,660

1,253,391

PrairieSky Royalty Ltd.

5,400

196,354

Suncor Energy, Inc.

322,590

13,755,536

The Williams Companies, Inc.

220,074

12,810,508

Western Gas Partners LP

17,760

1,358,285

 

143,698,244

TOTAL ENERGY

159,817,879

FINANCIALS - 19.0%

Banks - 11.2%

Bank of America Corp.

1,250,837

19,225,365

Citigroup, Inc.

593,731

27,964,730

JPMorgan Chase & Co.

954,998

55,026,984

M&T Bank Corp.

17,580

2,180,799

PNC Financial Services Group, Inc.

104,844

9,336,358

Standard Chartered PLC (United Kingdom)

581,507

11,882,582

SunTrust Banks, Inc.

33,550

1,344,013

U.S. Bancorp

256,371

11,105,992

Wells Fargo & Co.

269,000

14,138,640

 

152,205,463

Capital Markets - 4.5%

Apollo Investment Corp.

54,100

465,801

Ares Capital Corp.

56,830

1,014,984

Artisan Partners Asset Management, Inc.

7,300

413,764

BlackRock, Inc. Class A

4,600

1,470,160

Carlyle Group LP

36,907

1,253,362

Charles Schwab Corp.

429,854

11,575,968

Greenhill & Co., Inc.

5,000

246,250

Invesco Ltd.

29,900

1,128,725

KKR & Co. LP

380,778

9,264,329

Morgan Stanley, Inc.

270,980

8,760,783

Northern Trust Corp.

135,310

8,688,255

Common Stocks - continued

Shares

Value

FINANCIALS - continued

Capital Markets - continued

State Street Corp.

219,574

$ 14,768,547

The Blackstone Group LP

65,600

2,193,664

 

61,244,592

Diversified Financial Services - 0.7%

IntercontinentalExchange Group, Inc.

26,798

5,062,142

TPG Specialty Lending, Inc. (d)

169,100

3,691,453

 

8,753,595

Insurance - 1.8%

Arthur J. Gallagher & Co.

45,080

2,100,728

Brown & Brown, Inc.

22,060

677,463

Genworth Financial, Inc. Class A (a)

46,900

816,060

Marsh & McLennan Companies, Inc.

61,819

3,203,461

MetLife, Inc.

276,859

15,382,286

MetLife, Inc. unit

52,000

1,660,880

Ping An Insurance (Group) Co. of China Ltd. (H Shares)

13,000

100,640

 

23,941,518

Real Estate Investment Trusts - 0.5%

CBL & Associates Properties, Inc.

183,488

3,486,272

First Potomac Realty Trust

34,579

453,676

Gaming & Leisure Properties

16,100

546,917

Sun Communities, Inc.

53,700

2,676,408

 

7,163,273

Thrifts & Mortgage Finance - 0.3%

MGIC Investment Corp. (a)

62,400

576,576

Radian Group, Inc.

236,565

3,503,528

 

4,080,104

TOTAL FINANCIALS

257,388,545

HEALTH CARE - 10.1%

Biotechnology - 1.1%

Amgen, Inc.

119,265

14,117,398

Intercept Pharmaceuticals, Inc. (a)

3,400

804,542

 

14,921,940

Health Care Equipment & Supplies - 1.6%

Abbott Laboratories

89,591

3,664,272

Ansell Ltd.

49,724

929,774

ResMed, Inc. (d)

52,930

2,679,846

St. Jude Medical, Inc.

55,570

3,848,223

Common Stocks - continued

Shares

Value

HEALTH CARE - continued

Health Care Equipment & Supplies - continued

Steris Corp.

10,900

$ 582,932

Stryker Corp.

49,366

4,162,541

The Cooper Companies, Inc.

14,732

1,996,628

Zimmer Holdings, Inc.

33,200

3,448,152

 

21,312,368

Health Care Providers & Services - 1.9%

Fresenius Medical Care AG & Co. KGaA

21,100

1,419,635

McKesson Corp.

53,025

9,873,785

Patterson Companies, Inc.

72,477

2,863,566

Quest Diagnostics, Inc. (d)

87,831

5,154,801

UnitedHealth Group, Inc.

75,378

6,162,152

 

25,473,939

Health Care Technology - 0.1%

Quality Systems, Inc.

53,959

866,042

Life Sciences Tools & Services - 0.0%

Lonza Group AG

6,742

733,652

Pharmaceuticals - 5.4%

AbbVie, Inc.

122,979

6,940,935

Astellas Pharma, Inc.

163,300

2,147,488

AstraZeneca PLC sponsored ADR

7,400

549,894

GlaxoSmithKline PLC sponsored ADR

247,340

13,227,743

Johnson & Johnson

196,374

20,544,648

Merck & Co., Inc.

114,555

6,627,007

Novartis AG sponsored ADR

87,032

7,879,007

Sanofi SA

35,610

3,784,971

Teva Pharmaceutical Industries Ltd. sponsored ADR

185,949

9,747,447

Zoetis, Inc. Class A

63,200

2,039,464

 

73,488,604

TOTAL HEALTH CARE

136,796,545

INDUSTRIALS - 11.4%

Aerospace & Defense - 2.0%

Meggitt PLC

414,600

3,590,305

Rolls-Royce Group PLC

159,489

2,917,830

The Boeing Co.

103,479

13,165,633

United Technologies Corp.

68,420

7,899,089

 

27,572,857

Common Stocks - continued

Shares

Value

INDUSTRIALS - continued

Air Freight & Logistics - 1.7%

C.H. Robinson Worldwide, Inc.

73,413

$ 4,683,015

PostNL NV (a)

131,000

618,855

United Parcel Service, Inc. Class B

170,470

17,500,450

 

22,802,320

Airlines - 0.0%

Copa Holdings SA Class A

4,300

613,051

Commercial Services & Supplies - 0.5%

ADT Corp. (d)

100,900

3,525,446

KAR Auction Services, Inc.

93,297

2,973,375

Ritchie Brothers Auctioneers, Inc.

3,870

95,385

 

6,594,206

Electrical Equipment - 0.4%

General Cable Corp.

43,697

1,121,265

Hubbell, Inc. Class B

38,437

4,733,517

 

5,854,782

Industrial Conglomerates - 3.0%

General Electric Co.

1,569,766

41,253,450

Machinery - 0.3%

Ingersoll-Rand PLC

59,324

3,708,343

Stanley Black & Decker, Inc.

6,000

526,920

Valmont Industries, Inc.

2,700

410,265

 

4,645,528

Professional Services - 0.5%

Acacia Research Corp.

93,900

1,666,725

Bureau Veritas SA (d)

148,550

4,123,111

Exova Group Ltd. PLC (a)

138,200

581,828

 

6,371,664

Road & Rail - 2.3%

CSX Corp.

431,612

13,297,966

J.B. Hunt Transport Services, Inc.

103,165

7,611,514

Kansas City Southern

16,000

1,720,160

Norfolk Southern Corp.

62,680

6,457,920

TransForce, Inc.

64,800

1,492,091

 

30,579,651

Trading Companies & Distributors - 0.7%

Beijer Ref AB Series B

9,747

221,737

Brenntag AG

3,300

589,689

Common Stocks - continued

Shares

Value

INDUSTRIALS - continued

Trading Companies & Distributors - continued

W.W. Grainger, Inc.

18,770

$ 4,772,648

Watsco, Inc.

35,051

3,601,841

 

9,185,915

TOTAL INDUSTRIALS

155,473,424

INFORMATION TECHNOLOGY - 19.4%

Communications Equipment - 2.4%

Cisco Systems, Inc.

843,740

20,966,939

QUALCOMM, Inc.

148,110

11,730,312

 

32,697,251

Internet Software & Services - 2.9%

Google, Inc.:

Class A (a)

29,759

17,399,195

Class C (a)

26,759

15,393,918

Yahoo!, Inc. (a)

199,386

7,004,430

 

39,797,543

IT Services - 4.8%

Amadeus IT Holding SA Class A

6,200

255,709

Cognizant Technology Solutions Corp. Class A (a)

115,602

5,654,094

Computer Sciences Corp.

91,387

5,775,658

Fidelity National Information Services, Inc.

67,511

3,695,552

IBM Corp.

27,474

4,980,212

MasterCard, Inc. Class A

163,750

12,030,713

Paychex, Inc.

387,714

16,113,394

Quindell PLC

233,420

918,792

The Western Union Co.

196,830

3,413,032

Visa, Inc. Class A

59,770

12,594,137

 

65,431,293

Semiconductors & Semiconductor Equipment - 1.6%

Applied Materials, Inc.

383,226

8,641,746

Broadcom Corp. Class A

292,137

10,844,125

Maxim Integrated Products, Inc.

78,345

2,648,844

 

22,134,715

Software - 3.3%

Microsoft Corp.

1,031,708

43,022,224

Oracle Corp.

36,713

1,487,978

 

44,510,202

Common Stocks - continued

Shares

Value

INFORMATION TECHNOLOGY - continued

Technology Hardware, Storage & Peripherals - 4.4%

Apple, Inc.

547,406

$ 50,870,440

EMC Corp.

181,223

4,773,414

First Data Holdings, Inc. Class B (h)(i)

911,424

3,645,696

 

59,289,550

TOTAL INFORMATION TECHNOLOGY

263,860,554

MATERIALS - 3.5%

Chemicals - 3.0%

Airgas, Inc.

68,919

7,505,968

E.I. du Pont de Nemours & Co.

66,130

4,327,547

FMC Corp.

49,671

3,536,078

Johnson Matthey PLC

19,562

1,037,831

Methanex Corp.

12,200

754,261

Monsanto Co.

99,214

12,375,954

Potash Corp. of Saskatchewan, Inc.

37,310

1,418,902

Royal DSM NV

33,362

2,429,857

Syngenta AG (Switzerland)

15,636

5,776,709

Tronox Ltd. Class A

37,589

1,011,144

 

40,174,251

Metals & Mining - 0.5%

Freeport-McMoRan Copper & Gold, Inc.

187,300

6,836,450

SunCoke Energy Partners LP

19,138

577,968

 

7,414,418

TOTAL MATERIALS

47,588,669

TELECOMMUNICATION SERVICES - 1.9%

Diversified Telecommunication Services - 1.9%

Verizon Communications, Inc.

534,359

26,146,186

UTILITIES - 0.0%

Electric Utilities - 0.0%

ITC Holdings Corp.

16,730

610,310

TOTAL COMMON STOCKS

(Cost $1,189,349,566)

1,345,876,849

Convertible Preferred Stocks - 0.6%

Shares

Value

CONSUMER DISCRETIONARY - 0.0%

Leisure Products - 0.0%

NJOY, Inc. Series D (i)

12,494

$ 211,475

HEALTH CARE - 0.6%

Health Care Equipment & Supplies - 0.6%

Alere, Inc. 3.00%

26,487

8,339,697

TOTAL CONVERTIBLE PREFERRED STOCKS

(Cost $7,402,337)

8,551,172

Convertible Bonds - 0.2%

 

Principal Amount (g)

 

ENERGY - 0.2%

Oil, Gas & Consumable Fuels - 0.2%

Amyris, Inc.:

3% 2/27/17

$ 820,000

682,601

5% 10/15/18 (i)

750,000

599,700

Peabody Energy Corp. 4.75% 12/15/41

1,920,000

1,441,200

TOTAL CONVERTIBLE BONDS

(Cost $2,960,958)

2,723,501

Preferred Securities - 0.1%

 

FINANCIALS - 0.1%

Diversified Financial Services - 0.1%

Baggot Securities Ltd. 10.24% (e)(f)

(Cost $829,241)

EUR

540,000

840,539

Money Market Funds - 2.0%

Shares

Value

Fidelity Cash Central Fund, 0.11% (b)

4,952,255

$ 4,952,255

Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c)

22,221,038

22,221,038

TOTAL MONEY MARKET FUNDS

(Cost $27,173,293)

27,173,293

TOTAL INVESTMENT PORTFOLIO - 102.0%

(Cost $1,227,715,395)

1,385,165,354

NET OTHER ASSETS (LIABILITIES) - (2.0)%

(27,310,860)

NET ASSETS - 100%

$ 1,357,854,494

Currency Abbreviations

EUR

-

European Monetary Unit

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.

(c) Investment made with cash collateral received from securities on loan.

(d) Security or a portion of the security is on loan at period end.

(e) 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 $840,539 or 0.1% of net assets.

(f) Security is perpetual in nature with no stated maturity date.

(g) Amount is stated in United States dollars unless otherwise noted.

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

(i) 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 $4,456,871 or 0.3% of net assets.

Additional information on each restricted holding is as follows:

Security

Acquisition Date

Acquisition Cost

Amyris, Inc. 5% 10/15/18

10/16/13

$ 750,000

First Data Holdings, Inc. Class B

6/26/14

$ 3,645,696

NJOY, Inc. Series D

2/14/14

$ 211,475

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

$ 4,605

Fidelity Securities Lending Cash Central Fund

111,543

Total

$ 116,148

Other Information

The following is a summary of the inputs used, as of June 30, 2014, 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 in the table 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:

Equities:

Consumer Discretionary

$ 133,021,359

$ 132,809,884

$ -

$ 211,475

Consumer Staples

165,384,853

160,921,042

4,463,811

-

Energy

159,817,879

159,817,879

-

-

Financials

257,388,545

255,727,665

1,660,880

-

Health Care

145,136,242

137,784,148

7,352,094

-

Industrials

155,473,424

155,473,424

-

-

Information Technology

263,860,554

260,214,858

-

3,645,696

Materials

47,588,669

41,811,960

5,776,709

-

Telecommunication Services

26,146,186

26,146,186

-

-

Utilities

610,310

610,310

-

-

Corporate Bonds

2,723,501

-

2,723,501

-

Preferred Securities

840,539

-

840,539

-

Money Market Funds

27,173,293

27,173,293

-

-

Total Investments in Securities:

$ 1,385,165,354

$ 1,358,490,649

$ 22,817,534

$ 3,857,171

Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited):

United States of America

86.5%

United Kingdom

6.3%

Canada

2.4%

Switzerland

1.0%

Others (Individually Less Than 1%)

3.8%

 

100.0%

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

Annual Report


Financial Statements

Statement of Assets and Liabilities

 

June 30, 2014

 

 

 

Assets

Investment in securities, at value (including securities loaned of $21,711,703) - See accompanying schedule:

Unaffiliated issuers (cost $1,200,542,102)

$ 1,357,992,061

 

Fidelity Central Funds (cost $27,173,293)

27,173,293

 

Total Investments (cost $1,227,715,395)

 

$ 1,385,165,354

Cash

 

265,498

Receivable for investments sold

 

Regular delivery

 

11,497,611

Delayed delivery

 

29,948

Receivable for fund shares sold

23,057

Dividends receivable

1,948,442

Interest receivable

33,854

Distributions receivable from Fidelity Central Funds

20,985

Other affiliated receivables

10,596

Other receivables

6,325

Total assets

1,399,001,670

 

 

 

Liabilities

Payable for investments purchased

 

Regular delivery

$ 8,013,661

Delayed delivery

3,645,696

Payable for fund shares redeemed

6,423,834

Accrued management fee

508,601

Other affiliated payables

230,212

Other payables and accrued expenses

104,134

Collateral on securities loaned, at value

22,221,038

Total liabilities

41,147,176

 

 

 

Net Assets

$ 1,357,854,494

Net Assets consist of:

 

Paid in capital

$ 1,168,192,307

Undistributed net investment income

6,351,276

Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions

25,859,566

Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies

157,451,345

Net Assets, for 98,894,100 shares outstanding

$ 1,357,854,494

Net Asset Value, offering price and redemption price per
share ($1,357,854,494 ÷ 98,894,100 shares)

$ 13.73

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

Annual Report

Financial Statements - continued

Statement of Operations

 

Year ended June 30, 2014

 

 

 

Investment Income

 

 

Dividends

 

$ 26,278,386

Interest

 

201,156

Income from Fidelity Central Funds

 

116,148

Total income

 

26,595,690

 

 

 

Expenses

Management fee

$ 4,826,606

Transfer agent fees

1,901,594

Accounting and security lending fees

348,272

Custodian fees and expenses

119,141

Independent trustees' compensation

3,941

Registration fees

27,894

Audit

44,284

Legal

2,103

Interest

2,960

Miscellaneous

3,171

Total expenses before reductions

7,279,966

Expense reductions

(16,989)

7,262,977

Net investment income (loss)

19,332,713

Realized and Unrealized Gain (Loss)

Net realized gain (loss) on:

Investment securities:

 

 

Unaffiliated issuers

35,035,946

Foreign currency transactions

(6,559)

Futures contracts

(39,243)

Total net realized gain (loss)

 

34,990,144

Change in net unrealized appreciation (depreciation) on:

Investment securities

137,214,729

Assets and liabilities in foreign currencies

1,386

Total change in net unrealized appreciation (depreciation)

 

137,216,115

Net gain (loss)

172,206,259

Net increase (decrease) in net assets resulting from operations

$ 191,538,972

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

Annual Report

Statement of Changes in Net Assets

 

Year ended
June 30,
2014

For the period
December 6, 2012
(commencement of
operations) to
June 30, 2013

Increase (Decrease) in Net Assets

 

 

Operations

 

 

Net investment income (loss)

$ 19,332,713

$ 1,224,506

Net realized gain (loss)

34,990,144

2,233,113

Change in net unrealized appreciation (depreciation)

137,216,115

20,235,230

Net increase (decrease) in net assets resulting
from operations

191,538,972

23,692,849

Distributions to shareholders from net investment income

(13,325,330)

(136,030)

Distributions to shareholders from net realized gain

(12,109,121)

-

Total distributions

(25,434,451)

(136,030)

Share transactions
Proceeds from sales of shares

1,214,105,931

157,115,877

Reinvestment of distributions

25,434,451

136,030

Cost of shares redeemed

(217,746,396)

(10,852,739)

Net increase (decrease) in net assets resulting from share transactions

1,021,793,986

146,399,168

Total increase (decrease) in net assets

1,187,898,507

169,955,987

 

 

 

Net Assets

Beginning of period

169,955,987

-

End of period (including undistributed net investment income of $6,351,276 and undistributed net investment income of $1,086,549, respectively)

$ 1,357,854,494

$ 169,955,987

Other Information

Shares

Sold

99,056,916

15,645,460

Issued in reinvestment of distributions

2,006,948

13,468

Redeemed

(16,855,464)

(973,228)

Net increase (decrease)

84,208,400

14,685,700

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

Annual Report

Financial Highlights

Years ended June 30,

2014

2013 G

Selected Per-Share Data

 

 

Net asset value, beginning of period

$ 11.57

$ 10.00

Income from Investment Operations

 

 

Net investment income (loss) D

  .23

  .08

Net realized and unrealized gain (loss)

  2.33

  1.50

Total from investment operations

  2.56

  1.58

Distributions from net investment income

  (.15)

  (.01)

Distributions from net realized gain

  (.25)

  -

Total distributions

  (.40)

  (.01)

Net asset value, end of period

$ 13.73

$ 11.57

Total ReturnB, C

  22.48%

  15.80%

Ratios to Average Net AssetsE,H

 

 

Expenses before reductions

  .69%

  .84%A

Expenses net of fee waivers, if any

  .69%

  .84%A

Expenses net of all reductions

  .69%

  .83%A

Net investment income (loss)

  1.83%

  1.33% A

Supplemental Data

 

 

Net assets, end of period (000 omitted)

$ 1,357,854

$ 169,956

Portfolio turnover rateF

  60% I

  50% A

A Annualized

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

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

D Calculated based on average shares outstanding during the period.

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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

G For the period December 6, 2012 (commencement of operations) to June 30, 2013.

H Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer term operating periods. Expenses net of 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 Fund.

I Portfolio turnover rate excludes securities received or delivered in-kind.

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

Annual Report


Notes to Financial Statements

For the period ended June 30, 2014

1. Organization.

Fidelity Advisor Series Growth & Income Fund (the Fund) is a fund of Fidelity Hastings Street Trust (the Trust) and is authorized to issue an unlimited number of shares. Shares of the Fund are only available for purchase by mutual funds for which Fidelity Management & Research Company (FMR) or an affiliate serves as an investment manager. 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.

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 .01%.

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. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When

Annual Report

Notes to Financial Statements - continued

3. Significant Accounting Policies - continued

Investment Valuation - continued

current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the FMR Fair Value Committee (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, changes in interest rates and credit quality. 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 is responsible for approving and reporting to the Board all fair value determinations.

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.

Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds and preferred securities are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality,

Annual Report

3. Significant Accounting Policies - continued

Investment Valuation - continued

coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.

Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of June 30, 2014, is included at the end of the Fund's Schedule of Investments.

Foreign Currency. The Fund 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 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

Annual Report

Notes to Financial Statements - continued

3. Significant Accounting Policies - continued

Investment Transactions and Income - continued

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. 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.

Expenses. 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.

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 June 30, 2014, 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. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.

Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.

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 futures contracts, foreign currency transactions, market discount, equity-debt classifications, partnerships and losses deferred due to wash sales.

Annual Report

3. Significant Accounting Policies - continued

Income Tax Information and Distributions to Shareholders - continued

The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:

Gross unrealized appreciation

$ 171,073,254

Gross unrealized depreciation

(14,648,301)

Net unrealized appreciation (depreciation) on securities and other investments

$ 156,424,953

 

 

Tax Cost

$ 1,228,740,401

The tax-based components of distributable earnings as of period end were as follows:

Undistributed ordinary income

$ 27,345,042

Undistributed long-term capital gain

$ 5,896,683

Net unrealized appreciation (depreciation)

$ 156,426,339

The tax character of distributions paid was as follows:

 

June 30, 2014

June 30, 2013

Ordinary Income

$ 25,434,451

$ 136,030

Delayed Delivery Transactions and When-Issued Securities. During the period, the Fund transacted in securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. The securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. The Fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.

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

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Notes to Financial Statements - continued

4. Derivative Instruments.

Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.

The Fund used derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.

The Fund's use of derivatives increased or decreased its exposure to the following risk:

Equity Risk

Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment.

The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Counterparty credit risk related to exchange-traded futures contracts may be mitigated by the protection provided by the exchange on which they trade.

Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.

Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.

Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent daily payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized

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4. Derivative Instruments - continued

Futures Contracts - continued

appreciation or (depreciation). This receivable and/or payable, if any, is included in daily variation margin for derivative instruments in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.

Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts." The underlying face amount at value reflects each contract's exposure to the underlying instrument or index at period end.

During the period the Fund recognized net realized gain (loss) of $(39,243) related to its investment in futures contracts. This amount is included in the Statement of Operations.

5. Purchases and Sales of Investments.

Purchases and sales of securities, other than short-term securities and in-kind transactions, aggregated $619,949,210 and $577,957,054, respectively.

6. Fees and Other Transactions with Affiliates.

Management Fee. Fidelity Management & Research Company (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 the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee would have been subject to a performance adjustment effective December 1, 2013. However, effective August 1, 2013, the performance adjustment was removed and the individual fund fee rate decreased from .30% to .20% of the Fund's average net assets. For the reporting period, the total annual management fee rate was .46% of the Fund's average net assets.

Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of the investment adviser, is the Fund's transfer, dividend disbursing and shareholder servicing agent. FIIOC receives account fees and asset-based fees that vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to an annual rate of .18% of average net assets.

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Notes to Financial Statements - continued

6. Fees and Other Transactions with Affiliates - continued

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 $11,051 for the period.

Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR 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. The 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

Borrower

$ 11,172,333

.32%

$ 2,934

Exchanges In-Kind. During the period, certain investment companies managed by the investment adviser or its affiliates (Investing Funds) completed exchanges in-kind with the Fund. The Investing Funds delivered securities and other assets, including accrued interest, valued at $984,552,932 in exchange for 80,754,305 shares of the Fund. The amount of in-kind exchanges is included in share transactions in the accompanying Statement of Changes in Net Assets. The Fund recognized no gain or loss for federal income tax purposes.

7. 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 $1,421 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.

Annual Report

8. Security Lending.

The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. 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. 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. At period end, there were no security loans outstanding with FCM. 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 $111,543, including $3,037 from securities loaned to FCM.

9. Bank Borrowings.

The Fund is permitted to have bank borrowings for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity requirements. The Fund has established borrowing arrangements with certain banks. The interest rate on the borrowings is the bank's base rate, as revised from time to time. The average loan balance during the period for which loans were outstanding amounted to $772,000. The weighted average interest rate was .60%. The interest expense amounted to $26 under the bank borrowing program. At period end, there were no bank borrowings outstanding.

10. 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 $16,989 for the period.

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Notes to Financial Statements - continued

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.

At the end of the period, mutual funds managed by the investment adviser or its affiliates were the owners of record of all of the outstanding shares of the Fund.

Annual Report


Report of Independent Registered Public Accounting Firm

To the Trustees of Fidelity Hastings Street Trust and the Shareholders of Fidelity Advisor Series Growth & Income Fund:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Advisor Series Growth & Income Fund (a fund of Fidelity Hastings Street Trust) at June 30, 2014, the results of its operations for the year then ended, the changes in its net assets for each of the periods indicated and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity Advisor Series Growth & Income Fund's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements 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 are free of material misstatement. An audit 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, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at June 30, 2014 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

Boston, Massachusetts

August 14, 2014

Annual Report


Trustees and Officers

The Trustees, Member of the Advisory Board, 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. Except for James C. Curvey, each of the Trustees oversees 173 funds. Mr. Curvey oversees 397 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 (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. The officers and Advisory Board Member hold office without limit in time, except that any officer and 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.

Experience, Skills, Attributes, and Qualifications of the Fund's 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.

Annual Report

Board Structure and Oversight Function. James C. Curvey is an interested person (as defined in the 1940 Act) 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. Ned C. Lautenbach 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 equity and high income funds and another Board oversees Fidelity's investment-grade bond, money market, and asset allocation funds. The asset allocation funds may invest in Fidelity funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity funds overseen by each Board.

The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. For example, a working group comprised of Independent Trustees and FMR has worked and continues to work to review the Fidelity funds' valuation-related activities, reporting and risk management. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of FMR's risk management program for the Fidelity funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Fund's Trustees."

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Trustees and Officers - continued

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.

Interested Trustees*:

Correspondence intended for each 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+

James C. Curvey (1935)

Year of Election or Appointment: 2007

Trustee

Chairman of the Board of Trustees

 

Mr. Curvey also serves as Trustee of other Fidelity funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (2009-present), and Vice Chairman (2007-present) and Director of FMR LLC. In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the Trustees of Villanova University. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (2009-2014), a Director of FMR (2007-2014), a Director of FMR Co., Inc. (2007-2014) and was the Vice Chairman (2006-2007) and Director (2000-2007) of FMR Corp.

Charles S. Morrison (1960)

Year of Election or Appointment: 2014

Trustee

 

Mr. Morrison also serves as Trustee of other funds. He serves as President, Asset Management (2014-present) and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.

* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR.

+ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for the fund.

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Trustees and Officers - continued

Independent Trustees:

Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.

Name, Year of Birth; Principal Occupations and Other Relevant Experience+

Dennis J. Dirks (1948)

Year of Election or Appointment: 2005

Trustee

 

Mr. Dirks also serves as Trustee of other Fidelity funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), and as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008). Mr. Dirks is a member of the Independent Directors Council (IDC) Governing Council (2010-present) and Board of Directors for The Brookville Center for Children's Services, Inc. (2009-present).

Alan J. Lacy (1953)

Year of Election or Appointment: 2008

Trustee

 

Mr. Lacy also serves as Trustee of other Fidelity funds. Mr. Lacy serves as Senior Adviser (2007-present) of Oak Hill Capital Partners, L.P. (private equity). Mr. Lacy also served as Chief Executive Officer (2000-2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation and Sears, Roebuck and Co. (retail). In addition, Mr. Lacy serves as a member of the Board of Directors of Dave & Buster's Entertainment, Inc. (restaurant and entertainment complexes, 2010-present), Earth Fare, Inc. (retail grocery, 2012-present), The Hillman Companies, Inc. (hardware wholesalers, 2010-present), and Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). Mr. Lacy is a member of the Board of Trustees of The National Parks Conservation Association (2006-present). Previously, Mr. Lacy served as Chairman of the Board of Trustees of the National Parks Conservation Association (2008-2011) and as a member of the Board of Directors for the Western Union Company (global money transfer, 2006-2011).

Ned C. Lautenbach (1944)

Year of Election or Appointment: 2000

Trustee

Chairman of the Independent Trustees

 

Mr. Lautenbach also serves as Trustee of other Fidelity funds. Mr. Lautenbach currently serves as the Lead Director of the Eaton Corporation Board of Directors (diversified industrial, 1997-present). Mr. Lautenbach is Chairman of the Board of Directors of the Philharmonic Center for the Arts in Naples, Florida (2012-present) and a member of the Council on Foreign Relations (1994-present). Previously, Mr. Lautenbach was a Partner/Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007).

Joseph Mauriello (1944)

Year of Election or Appointment: 2008

Trustee

 

Mr. Mauriello also serves as Trustee of other Fidelity funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).

Robert W. Selander (1950)

Year of Election or Appointment: 2011

Trustee

 

Mr. Selander also serves as Trustee of other Fidelity funds. Previously, Mr. Selander served as a Member of the Advisory Board of other Fidelity funds (2011), and Executive Vice Chairman (2010), Chief Executive Officer (2009-2010), and President and Chief Executive Officer (1997-2009) of Mastercard, Inc.

Cornelia M. Small (1944)

Year of Election or Appointment: 2005

Trustee

 

Ms. Small also serves as Trustee of other Fidelity funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.

William S. Stavropoulos (1939)

Year of Election or Appointment: 2001

Trustee

Vice Chairman of the Independent Trustees

 

Mr. Stavropoulos also serves as Trustee of other Fidelity funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and Maersk Inc. (industrial conglomerate), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of the Naples Philharmonic Center for the Arts. Previously, Mr. Stavropoulos served as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).

David M. Thomas (1949)

Year of Election or Appointment: 2008

Trustee

 

Mr. Thomas also serves as Trustee of other Fidelity funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), and as a member of the Board of Directors of Interpublic Group of Companies, Inc. (marketing communication, 2004-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).

+ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for the fund.

Advisory Board Member and Officers:

Correspondence intended for each officer and Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.

Name, Year of Birth; Principal Occupation

Peter S. Lynch (1944)

Year of Election or Appointment: 2003

Member of the Advisory Board

 

Mr. Lynch also serves as Member of the Advisory Board of other Fidelity funds. Mr. Lynch is Vice Chairman and a Director of FMR and FMR Co., Inc. In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).

Elizabeth Paige Baumann (1968)

Year of Election or Appointment: 2012

Anti-Money Laundering (AML) Officer

 

Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer of FMR LLC (2012-present) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as Vice President and Deputy Anti-Money Laundering Officer (2007-2012).

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 (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. Mr. Davis is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (2003-2010).

Adrien E. Deberghes (1967)

Year of Election or Appointment: 2008

Deputy Treasurer

 

Mr. Deberghes also serves as an officer of other funds. He 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).

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. (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: 2008

Secretary and Chief Legal Officer (CLO)

 

Mr. Goebel serves as Secretary and CLO of other funds. Mr. Goebel also serves as Secretary of Fidelity SelectCo, LLC (2013-present), Fidelity Investments Money Management, Inc. (FIMM) (2010-present) and Fidelity Research and Analysis Company (FRAC) (2010-present); General Counsel, Secretary, and Senior Vice President of FMR (2008-present) and FMR Co., Inc. (2008-present); Chief Legal Officer of Fidelity Management & Research (Hong Kong) Limited (2008-present); and Assistant Secretary of Fidelity Management & Research (Japan) Inc. (2008-present) and Fidelity Management & Research (U.K.) Inc. (2008-present). Previously, Mr. Goebel served as Secretary and CLO of other Fidelity funds (2008-2013), 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). Mr. Goebel has been employed by FMR LLC or an affiliate since 2001.

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 President of FMR's Equity Division (2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager.

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 FMR's Program Management Group (2010-2013), and Vice President of Valuation Oversight (2008-2010).

Melissa M. Reilly (1971)

Year of Election or Appointment: 2014

Vice President of certain Equity Funds

 

Ms. Reilly also serves as Vice President of other funds. Ms. Reilly is an employee of Fidelity Investments (2004-present).

Kenneth B. Robins (1969)

Year of Election or Appointment: 2008

President and Treasurer

 

Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (2013-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served in other fund officer roles.

Stephen Sadoski (1971)

Year of Election or Appointment: 2012

Deputy Treasurer

 

Mr. Sadoski also serves as Deputy Treasurer of other funds. He is an employee of Fidelity Investments (2012-present) and has served in another fund officer role. Prior to joining Fidelity Investments, Mr. Sadoski served as an assistant chief accountant in the Division of Investment Management of the Securities and Exchange Commission (SEC) (2009-2012) and as a senior manager at Deloitte & Touche LLP (1997-2009).

Stacie M. Smith (1974)

Year of Election or Appointment: 2013

Deputy 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).

Renee Stagnone (1975)

Year of Election or Appointment: 2013

Deputy Treasurer

 

Ms. Stagnone also serves as Deputy Treasurer of other funds. Ms. Stagnone is an employee of Fidelity Investments.

Linda J. Wondrack (1964)

Year of Election or Appointment: 2014

Chief Compliance Officer

 

Ms. Wondrack also serves as Chief Compliance Officer of other funds. Ms. Wondrack is Executive Vice President and head of the Ethics Office and Asset Management Compliance for Fidelity Investments (2012-present). Ms. Wondrack also serves as Chief Compliance Officer of Fidelity SelectCo, LLC (2014-present); Chief Compliance Officer of Impresa Management LLC (2013-present); and Chief Compliance Officer of FMR Co., Inc., Fidelity Investments Money Management, Inc., Fidelity Management & Research (Japan) Inc., Fidelity Management & Research (U.K.) Inc., Fidelity Management & Research (Hong Kong), Fidelity Management & Research Company, Pyramis Global Advisors, LLC, and Strategic Advisers, Inc., Ballyrock Investment Advisors LLC, and Northern Neck Investors LLC (2012-present). Previously, Ms. Wondrack served as Senior Vice President and Chief Compliance Officer for Columbia Management Investment Advisers, LLC (2005-2012); Chief Compliance Officer for certain funds within the Columbia Family of Funds (2007-2012); and Senior Vice President of Compliance Risk Management at Bank of America (2005-2010).

Joseph F. Zambello (1957)

Year of Election or Appointment: 2011

Deputy Treasurer

 

Mr. Zambello also serves as Deputy Treasurer of other funds. Mr. Zambello is an employee of Fidelity Investments. Previously, Mr. Zambello served as Vice President of FMR's Program Management Group (2009-2011) and Vice President of the Transfer Agent Oversight Group (2005-2009).

Annual Report


Distributions (Unaudited)

The Board of Trustees of Fidelity Advisor Series Growth & Income Fund voted to pay on August 11, 2014, to shareholders of record at the opening of business on August 8, 2014, a distribution of $0.275 per share derived from capital gains realized from sales of portfolio securities.

The fund hereby designates as a capital gain dividend with respect to the taxable year ended June 30, 2014, $5,896,683, or, if subsequently determined to be different, the net capital gain of such year.

A total of 0.01% 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 designates 54%, 49%, 46% and 100% of the dividends distributed in August, October, December and April, respectively during the fiscal year as qualifying for the dividends-received deduction for corporate shareholders.

The fund designates 54%, 53%, 52% and 100% of the dividends distributed in August, October, December and April, respectively during the fiscal year as amounts which may be taken into account as a dividend for the purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.

The fund will notify shareholders in January 2015 of amounts for use in preparing 2014 income tax returns.

Annual Report

Investment Adviser

Fidelity Management & Research Company

Boston, MA

Investment Sub-Advisers

FMR Co., Inc.

Fidelity Management & Research
(U.K.) Inc.

Fidelity Management & Research
(Japan) Inc.

Fidelity Management & Research
(Hong Kong) Limited

General Distributor

Fidelity Distributors Corporation

Smithfield, RI

Transfer and Service Agents

Fidelity Investments Institutional
Operations Company, Inc.

Boston, MA

Fidelity Service Company, Inc.

Boston, MA

Custodian

The Northern Trust Company

Chicago, IL

(Fidelity Investment logo)(registered trademark)

AMHTI-ANN-0814
1.950941.102

Fidelity®

Series Growth & Income Fund

Fidelity Series Growth & Income Fund

Class F

Annual Report

June 30, 2014

(Fidelity Cover Art)


Contents

Performance

(Click Here)

How the fund has done over time.

Management's Discussion of Fund Performance

(Click Here)

The Portfolio Manager's review of fund performance and strategy.

Shareholder Expense Example

(Click Here)

An example of shareholder expenses.

Investment Changes

(Click Here)

A summary of major shifts in the fund's investments over the past six months.

Investments

(Click Here)

A complete list of the fund's investments with their market values.

Financial Statements

(Click Here)

Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights.

Notes

(Click Here)

Notes to the financial statements.

Report of Independent Registered Public Accounting Firm

(Click Here)

 

Trustees and Officers

(Click Here)

 

Distributions

(Click Here)

 

To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 for Fidelity® Series Growth & Income Fund or 1-800-835-5092 for Class F of the fund 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. © 2014 FMR LLC. All rights reserved.

Annual Report

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.advisor.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.

Annual Report


Performance: The Bottom Line

Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' 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 $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.

Average Annual Total Returns

Periods ended June 30, 2014

Past 1
year

Life of
fund
A

  Fidelity® Series Growth & Income Fund B

22.40%

24.72%

  Class F B

22.61%

24.94%

A From December 6, 2012.

B Prior to August 1, 2013, Fidelity® Series Growth & Income Fund was named Fidelity Series Mega Cap 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.

Annual Report

$10,000 Over Life of Fund

Let's say hypothetically that $10,000 was invested in Fidelity Series Growth & Income Fund, a class of the fund, on December 6, 2012, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index and the Russell Top 200® Index performed over the same period.

Effective August 1, 2013, Fidelity Series Growth & Income Fund began comparing its performance to the S&P 500® Index rather than the Russell Top 200® Index because the S&P 500 Index provides a more appropriate performance comparison for the fund.

hhh1706875

Annual Report


Management's Discussion of Fund Performance

Market Recap: Despite intermittent volatility driven by geopolitical concerns, stocks posted a series of new highs during the 12 months ending June 30, 2014, amid a decidedly favorable environment for riskier assets. The S&P 500® Index rose 24.61% for the year, helped by a rise in consumer spending and the lowest unemployment rate since 2008. The U.S. Federal Reserve balanced stimulus reductions with continued low interest rates, aiding a broad advance. All 10 S&P 500® market sectors gained, seven by more than 20%. Materials (+33%) was tops, as investors seemed to anticipate sustained economic improvement and renewed infrastructure build-outs. Information technology (+32%) benefited from large cash balances, rising dividends and stock buybacks, and a bevy of innovations. Health care (+30%) was aided by new drugs and predictable reimbursements. Conversely, the biggest laggard, telecommunication services (+5%), battled slow growth and stiff pricing competition. Across size and style segments: overall, investors showed some preference for large-cap stocks over small-caps and growth stocks over value, although market leadership rotated during the year. With the "risk-on" trade alive and well, the growth-oriented Nasdaq Composite Index® flourished, advancing 31.17%, while the blue-chip Dow Jones Industrial AverageSM delivered a more subdued 15.56% return.

Comments from Matthew Fruhan, Portfolio Manager of Fidelity® Series Growth & Income Fund: For the year, the fund's Series Growth & Income and Class F shares returned 22.40% and 22.61%, respectively. For comparison, the S&P 500® advanced 24.61%, the Russell Top 200® Index returned 24.69% and the custom linked index specific to this fund added 24.69%. Relative to the linked index, it hurt the most by far to overweight big-box retailer Target, which was among the fund's biggest holdings. The lingering effects of the firm's troubled expansion into Canada and a holiday-season credit breach continued to weigh on the stock, but this weak stretch allowed me to add notable exposure at a valuation I liked. Picks in information technology hurt, as we didn't own outperforming index component Facebook, while choices in industrials and consumer discretionary also were weak. Stock selection and an overweight in financials detracted, including investment banks JPMorgan Chase and Citigroup, both of which were among the fund's largest holdings. Stock selection in consumer staples helped the most, especially drugstore chain Walgreen, while an overweight in the outperforming shares of natural gas pipeline firm Williams Companies 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.

Annual Report


Shareholder Expense Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management 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 (January 1, 2014 to June 30, 2014).

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.

Annual Report

 

Annualized
Expense Ratio
B

Beginning
Account Value
January 1, 2014

Ending
Account Value
June 30, 2014

Expenses Paid
During Period
*
January 1, 2014
to June 30, 2014

Series Growth & Income

.64%

 

 

 

Actual

 

$ 1,000.00

$ 1,062.70

$ 3.27

HypotheticalA

 

$ 1,000.00

$ 1,021.62

$ 3.21

Class F

.47%

 

 

 

Actual

 

$ 1,000.00

$ 1,064.00

$ 2.41

HypotheticalA

 

$ 1,000.00

$ 1,022.46

$ 2.36

A 5% return per year before expenses

B Annualized expense ratio reflects expenses net of applicable fee waivers.

* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

Annual Report


Investment Changes (Unaudited)

Top Ten Stocks as of June 30, 2014

 

% of fund's
net assets

% of fund's net assets
6 months ago

JPMorgan Chase & Co.

4.1

3.8

Apple, Inc.

3.8

3.8

Microsoft Corp.

3.2

2.9

General Electric Co.

3.1

3.1

Chevron Corp.

2.8

2.4

Citigroup, Inc.

2.1

2.1

Comcast Corp. Class A (special) (non-vtg.)

2.0

1.7

Target Corp.

2.0

1.8

Verizon Communications, Inc.

2.0

1.2

Procter & Gamble Co.

1.8

1.9

 

26.9

Top Five Market Sectors as of June 30, 2014

 

% of fund's
net assets

% of fund's net assets
6 months ago

Information Technology

19.6

19.1

Financials

18.9

18.8

Consumer Staples

12.3

12.0

Energy

11.9

12.0

Industrials

11.5

11.3

Asset Allocation (% of fund's net assets)

As of June 30, 2014*

As of December 31, 2013**

hhh1706667

Stocks 99.7%

 

hhh1706667

Stocks 98.8%

 

hhh1706670

Convertible
Securities 0.4%

 

hhh1706670

Convertible
Securities 0.4%

 

hhh1706881

Other Investments 0.0%

 

hhh1706881

Other Investments 0.0%

 

hhh1706884

Short-Term
Investments and
Net Other Assets (Liabilities) (0.1)%††

 

hhh1706673

Short-Term
Investments and
Net Other Assets (Liabilities) 0.8%

 

* Foreign investments

13.3%

 

** Foreign investments

13.8%

 

hhh1706887

Amount represents less than 0.1%

†† Net Other Assets (Liabilities) are not included in the pie chart.

Annual Report


Investments June 30, 2014

Showing Percentage of Net Assets

Common Stocks - 99.7%

Shares

Value

CONSUMER DISCRETIONARY - 9.9%

Diversified Consumer Services - 0.3%

H&R Block, Inc.

872,364

$ 29,241,641

Hotels, Restaurants & Leisure - 1.9%

Darden Restaurants, Inc.

616,600

28,530,082

Domino's Pizza, Inc.

52,400

3,829,916

McDonald's Corp.

611,710

61,623,665

Yum! Brands, Inc.

988,355

80,254,426

 

174,238,089

Household Durables - 0.1%

Tupperware Brands Corp.

129,900

10,872,630

Media - 3.9%

Comcast Corp. Class A (special) (non-vtg.)

3,431,400

182,996,562

Lamar Advertising Co. Class A

155,700

8,252,100

Scripps Networks Interactive, Inc. Class A

85,014

6,898,036

Sinclair Broadcast Group, Inc. Class A (e)

1,103,823

38,357,849

Time Warner, Inc.

1,756,377

123,385,484

 

359,890,031

Multiline Retail - 2.0%

Target Corp.

3,153,475

182,743,876

Specialty Retail - 1.6%

DSW, Inc. Class A

390,200

10,902,188

Lewis Group Ltd.

565,073

3,443,040

Lowe's Companies, Inc.

2,616,700

125,575,433

Sally Beauty Holdings, Inc. (a)

37,400

937,992

Staples, Inc.

788,484

8,547,167

 

149,405,820

Textiles, Apparel & Luxury Goods - 0.1%

adidas AG

108,750

11,014,974

TOTAL CONSUMER DISCRETIONARY

917,407,061

CONSUMER STAPLES - 12.3%

Beverages - 3.7%

Diageo PLC

962,995

30,670,525

Molson Coors Brewing Co. Class B

392,700

29,122,632

PepsiCo, Inc.

892,400

79,727,016

Pernod Ricard SA (e)

77,800

9,342,816

Remy Cointreau SA

35,802

3,293,901

Common Stocks - continued

Shares

Value

CONSUMER STAPLES - continued

Beverages - continued

SABMiller PLC

687,213

$ 39,846,144

The Coca-Cola Co.

3,576,918

151,518,246

 

343,521,280

Food & Staples Retailing - 1.7%

CVS Caremark Corp.

725,400

54,673,398

Kroger Co.

601,228

29,718,700

Walgreen Co.

920,193

68,213,907

 

152,606,005

Food Products - 0.5%

Kellogg Co.

668,973

43,951,526

Household Products - 1.9%

Procter & Gamble Co.

2,100,000

165,039,000

Svenska Cellulosa AB (SCA) (B Shares)

468,953

12,219,428

 

177,258,428

Tobacco - 4.5%

British American Tobacco PLC sponsored ADR

1,347,459

160,455,418

Lorillard, Inc.

1,992,265

121,468,397

Philip Morris International, Inc.

1,094,866

92,308,152

Reynolds American, Inc.

741,600

44,755,560

 

418,987,527

TOTAL CONSUMER STAPLES

1,136,324,766

ENERGY - 11.8%

Energy Equipment & Services - 1.2%

Ensco PLC Class A

621,600

34,542,312

National Oilwell Varco, Inc.

60,800

5,006,880

Oceaneering International, Inc.

159,900

12,492,987

Schlumberger Ltd.

490,607

57,867,096

 

109,909,275

Oil, Gas & Consumable Fuels - 10.6%

Access Midstream Partners LP

300,700

19,109,485

Apache Corp.

730,441

73,496,973

Atlas Pipeline Partners LP

534,061

18,371,698

BG Group PLC

3,990,450

84,341,314

Canadian Natural Resources Ltd.

1,116,600

51,306,779

Chevron Corp.

1,964,435

256,456,989

EQT Midstream Partners LP

83,800

8,106,812

Common Stocks - continued

Shares

Value

ENERGY - continued

Oil, Gas & Consumable Fuels - continued

EV Energy Partners LP

73,300

$ 2,904,146

Exxon Mobil Corp.

183,565

18,481,324

Golar LNG Ltd. (e)

211,600

12,717,160

Imperial Oil Ltd.

955,200

50,335,876

Magellan Midstream Partners LP

8,800

739,552

Markwest Energy Partners LP

1,051,940

75,297,865

MPLX LP

99,383

6,410,204

Occidental Petroleum Corp.

1,047,960

107,552,135

Peabody Energy Corp.

528,487

8,640,762

PrairieSky Royalty Ltd.

36,900

1,341,755

Suncor Energy, Inc.

2,226,200

94,927,229

The Williams Companies, Inc.

1,506,457

87,690,862

Western Gas Partners LP

124,000

9,483,520

 

987,712,440

TOTAL ENERGY

1,097,621,715

FINANCIALS - 18.9%

Banks - 11.3%

Bank of America Corp.

8,686,405

133,510,045

Citigroup, Inc.

4,107,983

193,485,999

JPMorgan Chase & Co.

6,607,554

380,727,264

M&T Bank Corp.

120,309

14,924,331

PNC Financial Services Group, Inc.

718,724

64,002,372

Standard Chartered PLC (United Kingdom)

4,010,807

81,957,296

SunTrust Banks, Inc.

231,300

9,265,878

U.S. Bancorp

1,757,639

76,140,921

Wells Fargo & Co.

1,851,199

97,299,019

 

1,051,313,125

Capital Markets - 4.5%

Apollo Investment Corp.

353,700

3,045,357

Ares Capital Corp.

389,914

6,963,864

Artisan Partners Asset Management, Inc.

50,600

2,868,008

BlackRock, Inc. Class A

31,300

10,003,480

Carlyle Group LP

245,400

8,333,784

Charles Schwab Corp.

2,966,081

79,876,561

Greenhill & Co., Inc.

34,200

1,684,350

Invesco Ltd.

205,600

7,761,400

Common Stocks - continued

Shares

Value

FINANCIALS - continued

Capital Markets - continued

KKR & Co. LP

2,338,362

$ 56,892,347

Morgan Stanley, Inc.

1,864,700

60,285,751

Northern Trust Corp.

927,451

59,551,629

State Street Corp.

1,512,536

101,733,171

The Blackstone Group LP

451,500

15,098,160

 

414,097,862

Diversified Financial Services - 0.7%

IntercontinentalExchange Group, Inc.

185,325

35,007,893

TPG Specialty Lending, Inc.

1,130,400

24,676,632

 

59,684,525

Insurance - 1.8%

Arthur J. Gallagher & Co.

311,050

14,494,930

Brown & Brown, Inc.

151,400

4,649,494

Genworth Financial, Inc. Class A (a)

580,900

10,107,660

Marsh & McLennan Companies, Inc.

431,007

22,334,783

MetLife, Inc.

1,898,300

105,469,548

MetLife, Inc. unit

360,900

11,527,146

Ping An Insurance (Group) Co. of China Ltd. (H Shares)

89,500

692,867

 

169,276,428

Real Estate Investment Trusts - 0.4%

CBL & Associates Properties, Inc.

1,263,936

24,014,784

First Potomac Realty Trust

236,931

3,108,535

Gaming & Leisure Properties

111,000

3,770,670

Sun Communities, Inc.

79,369

3,955,751

 

34,849,740

Thrifts & Mortgage Finance - 0.2%

MGIC Investment Corp. (a)

689,400

6,370,056

Radian Group, Inc.

944,594

13,989,437

 

20,359,493

TOTAL FINANCIALS

1,749,581,173

HEALTH CARE - 10.2%

Biotechnology - 1.1%

Amgen, Inc.

823,219

97,444,433

Intercept Pharmaceuticals, Inc. (a)

21,400

5,063,882

 

102,508,315

Common Stocks - continued

Shares

Value

HEALTH CARE - continued

Health Care Equipment & Supplies - 1.6%

Abbott Laboratories

617,249

$ 25,245,484

Ansell Ltd.

354,030

6,619,900

ResMed, Inc. (e)

364,657

18,462,584

St. Jude Medical, Inc.

382,085

26,459,386

Steris Corp.

74,600

3,989,608

Stryker Corp.

340,200

28,685,664

The Cooper Companies, Inc.

103,198

13,986,425

Zimmer Holdings, Inc.

227,600

23,638,536

 

147,087,587

Health Care Providers & Services - 1.9%

Fresenius Medical Care AG & Co. KGaA

145,240

9,771,934

McKesson Corp.

365,247

68,012,644

Patterson Companies, Inc.

499,360

19,729,714

Quest Diagnostics, Inc.

605,718

35,549,589

UnitedHealth Group, Inc.

517,242

42,284,534

 

175,348,415

Health Care Technology - 0.1%

Quality Systems, Inc.

372,088

5,972,012

Life Sciences Tools & Services - 0.1%

Lonza Group AG

45,749

4,978,325

Pharmaceuticals - 5.4%

AbbVie, Inc.

864,820

48,810,441

Astellas Pharma, Inc.

1,126,900

14,819,373

AstraZeneca PLC sponsored ADR

50,500

3,752,655

GlaxoSmithKline PLC sponsored ADR

1,703,500

91,103,180

Johnson & Johnson

1,345,970

140,815,381

Merck & Co., Inc.

785,217

45,424,803

Novartis AG sponsored ADR

596,730

54,021,967

Sanofi SA

245,473

26,091,215

Teva Pharmaceutical Industries Ltd. sponsored ADR

1,272,384

66,698,369

Zoetis, Inc. Class A

436,009

14,070,010

 

505,607,394

TOTAL HEALTH CARE

941,502,048

INDUSTRIALS - 11.5%

Aerospace & Defense - 2.0%

Meggitt PLC

2,836,100

24,559,730

Rolls-Royce Group PLC

1,100,350

20,130,756

Common Stocks - continued

Shares

Value

INDUSTRIALS - continued

Aerospace & Defense - continued

The Boeing Co.

712,041

$ 90,592,976

United Technologies Corp.

469,200

54,169,140

 

189,452,602

Air Freight & Logistics - 1.7%

C.H. Robinson Worldwide, Inc.

501,047

31,961,788

PostNL NV (a)

898,200

4,243,173

United Parcel Service, Inc. Class B

1,179,745

121,112,622

 

157,317,583

Airlines - 0.0%

Copa Holdings SA Class A

29,300

4,177,301

Commercial Services & Supplies - 0.5%

ADT Corp.

694,700

24,272,818

KAR Auction Services, Inc.

637,385

20,313,460

Ritchie Brothers Auctioneers, Inc.

26,300

648,226

 

45,234,504

Electrical Equipment - 0.4%

General Cable Corp.

301,624

7,739,672

Hubbell, Inc. Class B

264,592

32,584,505

 

40,324,177

Industrial Conglomerates - 3.1%

General Electric Co.

10,810,956

284,111,924

Machinery - 0.3%

Ingersoll-Rand PLC

406,398

25,403,939

Stanley Black & Decker, Inc.

40,500

3,556,710

Valmont Industries, Inc.

16,367

2,486,966

 

31,447,615

Professional Services - 0.5%

Acacia Research Corp.

582,945

10,347,274

Bureau Veritas SA

1,015,555

28,187,451

Exova Group Ltd. PLC (a)

933,800

3,931,339

 

42,466,064

Road & Rail - 2.3%

CSX Corp.

2,978,508

91,767,831

J.B. Hunt Transport Services, Inc.

711,388

52,486,207

Kansas City Southern

110,000

11,826,100

Norfolk Southern Corp.

429,934

44,296,100

TransForce, Inc.

446,000

10,269,641

 

210,645,879

Common Stocks - continued

Shares

Value

INDUSTRIALS - continued

Trading Companies & Distributors - 0.7%

Beijer Ref AB Series B

66,640

$ 1,516,008

Brenntag AG

22,400

4,002,738

W.W. Grainger, Inc.

128,300

32,622,841

Watsco, Inc.

241,947

24,862,474

 

63,004,061

TOTAL INDUSTRIALS

1,068,181,710

INFORMATION TECHNOLOGY - 19.6%

Communications Equipment - 2.4%

Cisco Systems, Inc.

5,784,633

143,748,130

QUALCOMM, Inc.

1,021,900

80,934,480

 

224,682,610

Internet Software & Services - 3.0%

Google, Inc.:

Class A (a)

205,609

120,213,414

Class C (a)

183,709

105,684,114

Yahoo!, Inc. (a)

1,372,142

48,203,348

 

274,100,876

IT Services - 4.8%

Amadeus IT Holding SA Class A

41,800

1,723,971

Cognizant Technology Solutions Corp. Class A (a)

794,618

38,864,766

Computer Sciences Corp.

625,988

39,562,442

Fidelity National Information Services, Inc.

459,900

25,174,926

IBM Corp.

188,994

34,258,942

MasterCard, Inc. Class A

1,121,800

82,418,646

Paychex, Inc.

2,658,341

110,480,652

Quindell PLC

1,563,786

6,155,406

The Western Union Co.

1,327,000

23,010,180

Visa, Inc. Class A

409,600

86,306,816

 

447,956,747

Semiconductors & Semiconductor Equipment - 1.7%

Applied Materials, Inc.

2,644,500

59,633,475

Broadcom Corp. Class A

2,016,460

74,850,995

Maxim Integrated Products, Inc.

546,010

18,460,598

 

152,945,068

Common Stocks - continued

Shares

Value

INFORMATION TECHNOLOGY - continued

Software - 3.3%

Microsoft Corp.

7,137,217

$ 297,621,949

Oracle Corp.

251,869

10,208,251

 

307,830,200

Technology Hardware, Storage & Peripherals - 4.4%

Apple, Inc.

3,770,360

350,379,555

EMC Corp.

1,241,169

32,692,391

First Data Holdings, Inc. Class B (h)(i)

6,283,849

25,135,396

 

408,207,342

TOTAL INFORMATION TECHNOLOGY

1,815,722,843

MATERIALS - 3.5%

Chemicals - 3.0%

Airgas, Inc.

475,432

51,779,299

E.I. du Pont de Nemours & Co.

453,631

29,685,613

FMC Corp.

342,080

24,352,675

Johnson Matthey PLC

135,384

7,182,582

Methanex Corp.

84,200

5,205,636

Monsanto Co.

694,921

86,684,446

Potash Corp. of Saskatchewan, Inc.

256,600

9,758,519

Royal DSM NV

230,225

16,767,993

Syngenta AG (Switzerland)

107,197

39,603,853

Tronox Ltd. Class A

250,150

6,729,035

 

277,749,651

Metals & Mining - 0.5%

Freeport-McMoRan Copper & Gold, Inc.

1,280,000

46,720,000

SunCoke Energy Partners LP

133,499

4,031,670

 

50,751,670

TOTAL MATERIALS

328,501,321

TELECOMMUNICATION SERVICES - 2.0%

Diversified Telecommunication Services - 2.0%

Verizon Communications, Inc.

3,699,023

180,993,195

Common Stocks - continued

Shares

Value

UTILITIES - 0.0%

Electric Utilities - 0.0%

ITC Holdings Corp.

121,084

$ 4,417,144

TOTAL COMMON STOCKS

(Cost $8,203,498,803)


9,240,252,976

Convertible Preferred Stocks - 0.3%

 

 

 

 

CONSUMER DISCRETIONARY - 0.0%

Leisure Products - 0.0%

NJOY, Inc. Series D (i)

81,101

1,372,724

HEALTH CARE - 0.3%

Health Care Equipment & Supplies - 0.3%

Alere, Inc. 3.00%

72,255

22,750,209

TOTAL CONVERTIBLE PREFERRED STOCKS

(Cost $22,003,530)


24,122,933

Convertible Bonds - 0.1%

 

Principal Amount (d)

 

ENERGY - 0.1%

Oil, Gas & Consumable Fuels - 0.1%

Amyris, Inc. 5% 10/15/18 (i)

$ 2,350,000

1,879,060

Peabody Energy Corp. 4.75% 12/15/41

13,140,000

9,863,213

 

11,742,273

TOTAL CONVERTIBLE BONDS

(Cost $13,360,202)


11,742,273

Preferred Securities - 0.0%

 

FINANCIALS - 0.0%

Diversified Financial Services - 0.0%

Baggot Securities Ltd. 10.24% (f)(g)

(Cost $5,175,080)

EUR

3,370,000


5,245,587

Money Market Funds - 0.9%

Shares

Value

Fidelity Cash Central Fund, 0.11% (b)

55,129,962

$ 55,129,962

Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c)

24,898,201

24,898,201

TOTAL MONEY MARKET FUNDS

(Cost $80,028,163)


80,028,163

TOTAL INVESTMENT PORTFOLIO - 101.0%

(Cost $8,324,065,778)

9,361,391,932

NET OTHER ASSETS (LIABILITIES) - (1.0)%

(90,334,606)

NET ASSETS - 100%

$ 9,271,057,326

Currency Abbreviations

EUR

-

European Monetary Unit

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.

(c) Investment made with cash collateral received from securities on loan.

(d) Amount is stated in United States dollars unless otherwise noted.

(e) Security or a portion of the security is on loan at period end.

(f) 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 $5,245,587 or 0.0% of net assets.

(g) Security is perpetual in nature with no stated maturity date.

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

(i) 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 $28,387,180 or 0.3% of net assets.

Additional information on each restricted holding is as follows:

Security

Acquisition Date

Acquisition Cost

Amyris, Inc. 5% 10/15/18

10/16/13

$ 2,350,000

Security

Acquisition Date

Acquisition Cost

First Data Holdings, Inc. Class B

6/26/14

$ 25,135,396

NJOY, Inc.
Series D

2/14/14

$ 1,372,724

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

$ 70,041

Fidelity Securities Lending Cash Central Fund

461,394

Total

$ 531,435

Other Information

The following is a summary of the inputs used, as of June 30, 2014, 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 in the table 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:

Equities:

Consumer Discretionary

$ 918,779,785

$ 917,407,061

$ -

$ 1,372,724

Consumer Staples

1,136,324,766

1,105,654,241

30,670,525

-

Energy

1,097,621,715

1,097,621,715

-

-

Financials

1,749,581,173

1,738,054,027

11,527,146

-

Health Care

964,252,257

913,569,735

50,682,522

-

Industrials

1,068,181,710

1,068,181,710

-

-

Valuation Inputs at Reporting Date:

Description

Total

Level 1

Level 2

Level 3

Investments in Securities:

Equities:

Information Technology

$ 1,815,722,843

$ 1,790,587,447

$ -

$ 25,135,396

Materials

328,501,321

288,897,468

39,603,853

-

Telecommunication Services

180,993,195

180,993,195

-

-

Utilities

4,417,144

4,417,144

-

-

Corporate Bonds

11,742,273

-

11,742,273

-

Preferred Securities

5,245,587

-

5,245,587

-

Money Market Funds

80,028,163

80,028,163

-

-

Total Investments in Securities:

$ 9,361,391,932

$ 9,185,411,906

$ 149,471,906

$ 26,508,120

Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited):

United States of America

86.7%

United Kingdom

6.3%

Canada

2.3%

Switzerland

1.1%

Others (Individually Less Than 1%)

3.6%

 

100.0%

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

Annual Report


Financial Statements

Statement of Assets and Liabilities

 

June 30, 2014

 

 

 

Assets

Investment in securities, at value (including securities loaned of $23,937,160) - See accompanying schedule:

Unaffiliated issuers (cost $8,244,037,615)

$ 9,281,363,769

 

Fidelity Central Funds (cost $80,028,163)

80,028,163

 

Total Investments (cost $8,324,065,778)

 

$ 9,361,391,932

Cash

 

1,077,399

Receivable for investments sold
Regular delivery

 

119,278,698

Delayed delivery

 

202,324

Receivable for fund shares sold

6,180

Dividends receivable

12,889,286

Interest receivable

77,576

Distributions receivable from Fidelity Central Funds

68,902

Other affiliated receivables

50,782

Other receivables

39,181

Total assets

9,495,082,260

 

 

 

Liabilities

Payable for investments purchased
Regular delivery

$ 48,329,386

Delayed delivery

25,135,396

Payable for fund shares redeemed

121,205,674

Accrued management fee

3,501,227

Other affiliated payables

641,751

Other payables and accrued expenses

313,299

Collateral on securities loaned, at value

24,898,201

Total liabilities

224,024,934

 

 

 

Net Assets

$ 9,271,057,326

Net Assets consist of:

 

Paid in capital

$ 8,056,109,065

Undistributed net investment income

46,483,923

Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions

131,131,758

Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies

1,037,332,580

Net Assets

$ 9,271,057,326

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

Annual Report

Financial Statements - continued

Statement of Assets and Liabilities - continued

 

June 30, 2014

 

 

 

Series Growth & Income:
Net Asset Value
, offering price and redemption price per share ($3,910,454,637 ÷ 288,007,923 shares)

$ 13.58

 

 

 

Class F:
Net Asset Value
, offering price and redemption price per share ($5,360,602,689 ÷ 394,205,503 shares)

$ 13.60

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

Annual Report

Statement of Operations

 

Year ended June 30, 2014

 

 

 

Investment Income

 

 

Dividends

 

$ 162,314,009

Interest

 

752,073

Income from Fidelity Central Funds

 

531,435

Total income

 

163,597,517

 

 

 

Expenses

Management fee

$ 29,733,096

Transfer agent fees

4,874,360

Accounting and security lending fees

1,072,688

Custodian fees and expenses

250,692

Independent trustees' compensation

24,416

Registration fees

194,280

Audit

54,561

Legal

13,383

Interest

1,426

Miscellaneous

24,693

Total expenses before reductions

36,243,595

Expense reductions

(111,867)

36,131,728

Net investment income (loss)

127,465,789

Realized and Unrealized Gain (Loss)

Net realized gain (loss) on:

Investment securities:

 

 

Unaffiliated issuers

229,516,527

Foreign currency transactions

(1,712)

Futures contracts

(18,511)

Total net realized gain (loss)

 

229,496,304

Change in net unrealized appreciation (depreciation) on:

Investment securities

792,729,366

Assets and liabilities in foreign currencies

6,426

Total change in net unrealized appreciation (depreciation)

 

792,735,792

Net gain (loss)

1,022,232,096

Net increase (decrease) in net assets resulting from operations

$ 1,149,697,885

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

Annual Report

Financial Statements - continued

Statement of Changes in Net Assets

 

Year ended
June 30,
2014

For the period
December 6, 2012
(Commencement of Operations) to
June 30, 2013

Increase (Decrease) in Net Assets

 

 

Operations

 

 

Net investment income (loss)

$ 127,465,789

$ 17,353,281

Net realized gain (loss)

229,496,304

20,427,078

Change in net unrealized appreciation (depreciation)

792,735,792

244,596,788

Net increase (decrease) in net assets resulting from operations

1,149,697,885

282,377,147

Distributions to shareholders from net investment income

(91,176,470)

(1,959,964)

Distributions to shareholders from net realized gain

(123,990,338)

-

Total distributions

(215,166,808)

(1,959,964)

Share transactions - net increase (decrease)

6,107,960,785

1,948,148,281

Total increase (decrease) in net assets

7,042,491,862

2,228,565,464

 

 

 

Net Assets

Beginning of period

2,228,565,464

-

End of period (including undistributed net investment income of $46,483,923 and undistributed net investment income of $15,366,382, respectively)

$ 9,271,057,326

$ 2,228,565,464

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

Annual Report

Financial Highlights - Series Growth & Income

Years ended June 30,

2014

2013 G

Selected Per-Share Data

 

 

Net asset value, beginning of period

$ 11.53

$ 10.00

Income from Investment Operations

 

 

Net investment income (loss) D

  .24

  .09

Net realized and unrealized gain (loss)

  2.29

  1.45

Total from investment operations

  2.53

  1.54

Distributions from net investment income

  (.21)

  (.01)

Distributions from net realized gain

  (.27)

  -

Total distributions

  (.48)

  (.01)

Net asset value, end of period

$ 13.58

$ 11.53

Total Return B, C

  22.40%

  15.41%

Ratios to Average Net Assets E, H

 

 

Expenses before reductions

  .66%

  .78% A

Expenses net of fee waivers, if any

  .66%

  .78% A

Expenses net of all reductions

  .66%

  .77% A

Net investment income (loss)

  1.87%

  1.42% A

Supplemental Data

 

 

Net assets, end of period (000 omitted)

$ 3,910,455

$ 1,000,854

Portfolio turnover rate F

  53% I

  80% A

A Annualized

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

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

D Calculated based on average shares outstanding during the period.

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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

G For the period December 6, 2012 (commencement of operations) to June 30, 2013.

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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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 Portfolio turnover rate excludes securities received or delivered in-kind.

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

Annual Report

Financial Highlights - Class F

Years ended June 30,

2014

2013 G

Selected Per-Share Data

 

 

Net asset value, beginning of period

$ 11.54

$ 10.00

Income from Investment Operations

 

 

Net investment income (loss) D

  .26

  .10

Net realized and unrealized gain (loss)

  2.29

  1.45

Total from investment operations

  2.55

  1.55

Distributions from net investment income

  (.23)

  (.01)

Distributions from net realized gain

  (.27)

  -

Total distributions

  (.49) J

  (.01)

Net asset value, end of period

$ 13.60

$ 11.54

Total Return B, C

  22.61%

  15.53%

Ratios to Average Net Assets E, H

 

 

Expenses before reductions

  .48%

  .59% A

Expenses net of fee waivers, if any

  .48%

  .59% A

Expenses net of all reductions

  .48%

  .58% A

Net investment income (loss)

  2.04%

  1.60% A

Supplemental Data

 

 

Net assets, end of period (000 omitted)

$ 5,360,603

$ 1,227,712

Portfolio turnover rate F

  53% I

  80% A

A Annualized

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

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

D Calculated based on average shares outstanding during the period.

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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

G For the period December 6, 2012 (commencement of operations) to June 30, 2013.

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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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 Portfolio turnover rate excludes securities received or delivered in-kind.

J Total distributions of $.49 per share is comprised of distributions from net investment income of $.228 and distributions from net realized gain of $.266 per share.

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

Annual Report


Notes to Financial Statements

For the period ended June 30, 2014

1. Organization.

Fidelity Series Growth & Income Fund (the Fund) is a fund of Fidelity Hastings Street Trust (the Trust) and is authorized to issue an unlimited number of shares. Shares of the Fund are only available for purchase by mutual funds for which Fidelity Management & Research Company (FMR) or an affiliate serves as an investment manager. 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 Series Growth & Income and Class F, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.

2. Investments in Fidelity Central Funds.

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 .01%.

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

Annual Report

Notes to Financial Statements - continued

3. Significant Accounting Policies - continued

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. In accordance with valuation policies and procedures approved by the Board of Trustees (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 FMR Fair Value Committee (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, changes in interest rates and credit quality. 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 is responsible for approving and reporting to the Board all fair value determinations.

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

Annual Report

3. Significant Accounting Policies - continued

Investment Valuation - continued

limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.

Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds and preferred securities are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.

Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of June 30, 2014 is included at the end of the Fund's Schedule of Investments.

Foreign Currency. The Fund 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 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

Annual Report

Notes to Financial Statements - continued

3. Significant Accounting Policies - continued

Investment Transactions and Income - continued

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. 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 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 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.

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 June 30, 2014, 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. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.

Annual Report

3. Significant Accounting Policies - continued

Income Tax Information and Distributions to Shareholders - continued

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.

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 futures contracts, foreign currency transactions, market discount, partnerships, equity-debt classifications 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

$ 1,136,827,885

Gross unrealized depreciation

(100,599,532)

Net unrealized appreciation (depreciation) on securities and other investments

$ 1,036,228,353

 

 

Tax Cost

$ 8,325,163,579

The tax-based components of distributable earnings as of period end were as follows:

Undistributed ordinary income

$ 137,914,980

Undistributed long-term capital gain

$ 40,839,288

Net unrealized appreciation (depreciation)

$ 1,036,234,779

The tax character of distributions paid was as follows:

 

June 30, 2014

June 30, 2013

 

 

 

Ordinary Income

$ 215,166,808

$ 1,959,964

Delayed Delivery Transactions and When-Issued Securities. During the period, the Fund transacted in securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. The securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of

Annual Report

Notes to Financial Statements - continued

3. Significant Accounting Policies - continued

Delayed Delivery Transactions and When-Issued Securities - continued

Investments. The Fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.

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

4. Derivative Instruments.

Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.

The Fund used derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.

The Fund's use of derivatives increased or decreased its exposure to the following risk:

Equity Risk

Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment.

The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be

Annual Report

4. Derivative Instruments - continued

Risk Exposures and the Use of Derivative Instruments - continued

unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Counterparty credit risk related to exchange-traded futures contracts may be mitigated by the protection provided by the exchange on which they trade.

Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.

Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.

Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent daily payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable, if any, is included in daily variation margin for derivative instruments in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.

Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts." The underlying face amount at value reflects each contract's exposure to the underlying instrument or index at period end.

During the period the Fund recognized net realized gain (loss) of $(18,511) related to its investment in futures contracts. This amount is included in the Statement of Operations.

5. Purchases and Sales of Investments.

Purchases and sales of securities excluding in-kind transactions, other than short-term securities, aggregated $7,182,302,684 and $3,303,579,073, respectively.

6. Fees and Other Transactions with Affiliates.

Management Fee. Fidelity Management & Research Company (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

Annual Report

Notes to Financial Statements - continued

6. Fees and Other Transactions with Affiliates - continued

Management Fee - continued

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 the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee would have been subject to a performance adjustment effective December 1, 2013. However, effective August 1, 2013, the performance adjustment was removed and the individual fund fee rate decreased from .30% to .20% of the Fund's average net assets. For the reporting period, the total annual management fee rate was .46% of the Fund's average net assets.

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 Series Growth & Income. FIIOC receives no fees for providing transfer agency services to Class F. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.

For the period, transfer agent fees for each applicable class were as follows:

 

Amount

% of
Average
Net Assets

Series Growth & Income

$ 4,874,360

.17

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 $110,997 for the period.

Annual Report

6. Fees and Other Transactions with Affiliates - continued

Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR 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. The 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

Borrower

$ 16,702,300

.31%

$ 1,426

Exchanges In-Kind. During the period, certain investment companies managed by the investment adviser or its affiliates (Investing Funds) completed exchanges in-kind with the Fund. The Investing Funds delivered securities and other assets, including accrued interest, valued at $2,210,665,953 in exchange for 175,851,233 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. The Fund recognized no gain or loss for federal income tax purposes.

7. 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 $8,839 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.

8. Security Lending.

The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. 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

Annual Report

Notes to Financial Statements - continued

8. Security Lending - continued

additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, 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. At period end, there were no security loans outstanding with FCM. 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 $461,394, including $31,052 from securities loaned to FCM.

9. 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 $111,715 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $152.

10. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

Years ended June 30,

2014

2013 A

From net investment income

 

 

Series Growth & Income

$ 37,541,666

$ 905,843

Class F

53,634,804

1,054,121

Total

$ 91,176,470

$ 1,959,964

From net realized gain

 

 

Series Growth & Income

$ 54,222,177

$ -

Class F

69,768,161

-

Total

$ 123,990,338

$ -

A For the period December 6, 2012(commencement of operations) to June 30, 2013.

Annual Report

11. Share Transactions.

Transactions for each class of shares were as follows:

 

Shares

Dollars

Years ended June 30,

2014

2013 A

2014

2013 A

Series Growth & Income

 

 

 

 

Shares sold

242,743,841 B

96,902,349 C

$ 3,040,662,355B

$ 979,211,727 C

Reinvestment of distributions

7,325,735

90,044

91,763,843

905,843

Shares redeemed

(48,854,269)

(10,199,777)

(623,276,343)

(110,540,125)

Net increase (decrease)

201,215,307

86,792,616

$ 2,509,149,855

$ 869,577,445

Class F

 

 

 

 

Shares sold

330,002,977 B

109,570,857 C

$ 4,146,555,651 B

$ 1,113,133,023 C

Reinvestment of distributions

9,833,824

104,783

123,402,965

1,054,121

Shares redeemed

(51,994,506)

(3,312,432)

(671,147,686)

(35,616,308)

Net increase (decrease)

287,842,295

106,363,208

$ 3,598,810,930

$ 1,078,570,836

A For the period December 6, 2012 (commencement of operations) to June 30, 2013.

B Amount includes in-kind exchanges (see Note 6: Exchanges In-Kind).

C Amount includes in-kind exchanges.

12. 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.

At the end of the period, mutual funds managed by the investment adviser or its affiliates were the owners of record of all of the outstanding shares of the Fund.

Annual Report


Report of Independent Registered Public Accounting Firm

To the Trustees of Fidelity Hastings Street Trust and the Shareholders of Fidelity Series Growth & Income Fund:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Series Growth & Income Fund (a fund of Fidelity Hastings Street Trust) at June 30, 2014, 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 periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity Series Growth & Income Fund's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements 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 are free of material misstatement. An audit 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, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at June 30, 2014 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

Boston, Massachusetts

August 14, 2014

Annual Report


Trustees and Officers

The Trustees, Member of the Advisory Board, 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. Except for James C. Curvey, each of the Trustees oversees 173 funds. Mr. Curvey oversees 397 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 (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. The officers and Advisory Board Member hold office without limit in time, except that any officer and 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.

Experience, Skills, Attributes, and Qualifications of the Fund's 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.

Annual Report

Board Structure and Oversight Function. James C. Curvey is an interested person (as defined in the 1940 Act) 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. Ned C. Lautenbach 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 equity and high income funds and another Board oversees Fidelity's investment-grade bond, money market, and asset allocation funds. The asset allocation funds may invest in Fidelity funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity funds overseen by each Board.

The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. For example, a working group comprised of Independent Trustees and FMR has worked and continues to work to review the Fidelity funds' valuation-related activities, reporting and risk management. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of FMR's risk management program for the Fidelity funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Fund's Trustees."

Annual Report

Trustees and Officers - continued

The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544 for Fidelity Series Growth & Income Fund, or 1-800-835-5092 for Class F.

Interested Trustees*:

Correspondence intended for each 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+

James C. Curvey (1935)

Year of Election or Appointment: 2007

Trustee

Chairman of the Board of Trustees

 

Mr. Curvey also serves as Trustee of other Fidelity funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (2009-present), and Vice Chairman (2007-present) and Director of FMR LLC. In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the Trustees of Villanova University. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (2009-2014), a Director of FMR (2007-2014), a Director of FMR Co., Inc. (2007-2014) and was the Vice Chairman (2006-2007) and Director (2000-2007) of FMR Corp.

Charles S. Morrison (1960)

Year of Election or Appointment: 2014

Trustee

 

Mr. Morrison also serves as Trustee of other funds. He serves as President, Asset Management (2014-present) and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.

* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR.

+ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for the fund.

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Trustees and Officers - continued

Independent Trustees:

Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.

Name, Year of Birth; Principal Occupations and Other Relevant Experience+

Dennis J. Dirks (1948)

Year of Election or Appointment: 2005

Trustee

 

Mr. Dirks also serves as Trustee of other Fidelity funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), and as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008). Mr. Dirks is a member of the Independent Directors Council (IDC) Governing Council (2010-present) and Board of Directors for The Brookville Center for Children's Services, Inc. (2009-present).

Alan J. Lacy (1953)

Year of Election or Appointment: 2008

Trustee

 

Mr. Lacy also serves as Trustee of other Fidelity funds. Mr. Lacy serves as Senior Adviser (2007-present) of Oak Hill Capital Partners, L.P. (private equity). Mr. Lacy also served as Chief Executive Officer (2000-2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation and Sears, Roebuck and Co. (retail). In addition, Mr. Lacy serves as a member of the Board of Directors of Dave & Buster's Entertainment, Inc. (restaurant and entertainment complexes, 2010-present), Earth Fare, Inc. (retail grocery, 2012-present), The Hillman Companies, Inc. (hardware wholesalers, 2010-present), and Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). Mr. Lacy is a member of the Board of Trustees of The National Parks Conservation Association (2006-present). Previously, Mr. Lacy served as Chairman of the Board of Trustees of the National Parks Conservation Association (2008-2011) and as a member of the Board of Directors for the Western Union Company (global money transfer, 2006-2011).

Ned C. Lautenbach (1944)

Year of Election or Appointment: 2000

Trustee

Chairman of the Independent Trustees

 

Mr. Lautenbach also serves as Trustee of other Fidelity funds. Mr. Lautenbach currently serves as the Lead Director of the Eaton Corporation Board of Directors (diversified industrial, 1997-present). Mr. Lautenbach is Chairman of the Board of Directors of the Philharmonic Center for the Arts in Naples, Florida (2012-present) and a member of the Council on Foreign Relations (1994-present). Previously, Mr. Lautenbach was a Partner/Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007).

Joseph Mauriello (1944)

Year of Election or Appointment: 2008

Trustee

 

Mr. Mauriello also serves as Trustee of other Fidelity funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).

Robert W. Selander (1950)

Year of Election or Appointment: 2011

Trustee

 

Mr. Selander also serves as Trustee of other Fidelity funds. Previously, Mr. Selander served as a Member of the Advisory Board of other Fidelity funds (2011), and Executive Vice Chairman (2010), Chief Executive Officer (2009-2010), and President and Chief Executive Officer (1997-2009) of Mastercard, Inc.

Cornelia M. Small (1944)

Year of Election or Appointment: 2005

Trustee

 

Ms. Small also serves as Trustee of other Fidelity funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.

William S. Stavropoulos (1939)

Year of Election or Appointment: 2001

Trustee

Vice Chairman of the Independent Trustees

 

Mr. Stavropoulos also serves as Trustee of other Fidelity funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and Maersk Inc. (industrial conglomerate), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of the Naples Philharmonic Center for the Arts. Previously, Mr. Stavropoulos served as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).

David M. Thomas (1949)

Year of Election or Appointment: 2008

Trustee

 

Mr. Thomas also serves as Trustee of other Fidelity funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), and as a member of the Board of Directors of Interpublic Group of Companies, Inc. (marketing communication, 2004-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).

+ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for the fund.

Advisory Board Member and Officers:

Correspondence intended for each officer and Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.

Name, Year of Birth; Principal Occupation

Peter S. Lynch (1944)

Year of Election or Appointment: 2003

Member of the Advisory Board

 

Mr. Lynch also serves as Member of the Advisory Board of other Fidelity funds. Mr. Lynch is Vice Chairman and a Director of FMR and FMR Co., Inc. In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).

Elizabeth Paige Baumann (1968)

Year of Election or Appointment: 2012

Anti-Money Laundering (AML) Officer

 

Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer of FMR LLC (2012-present) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as Vice President and Deputy Anti-Money Laundering Officer (2007-2012).

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 (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. Mr. Davis is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (2003-2010).

Adrien E. Deberghes (1967)

Year of Election or Appointment: 2008

Deputy Treasurer

 

Mr. Deberghes also serves as an officer of other funds. He 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).

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. (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: 2008

Secretary and Chief Legal Officer (CLO)

 

Mr. Goebel serves as Secretary and CLO of other funds. Mr. Goebel also serves as Secretary of Fidelity SelectCo, LLC (2013-present), Fidelity Investments Money Management, Inc. (FIMM) (2010-present) and Fidelity Research and Analysis Company (FRAC) (2010-present); General Counsel, Secretary, and Senior Vice President of FMR (2008-present) and FMR Co., Inc. (2008-present); Chief Legal Officer of Fidelity Management & Research (Hong Kong) Limited (2008-present); and Assistant Secretary of Fidelity Management & Research (Japan) Inc. (2008-present) and Fidelity Management & Research (U.K.) Inc. (2008-present). Previously, Mr. Goebel served as Secretary and CLO of other Fidelity funds (2008-2013), 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). Mr. Goebel has been employed by FMR LLC or an affiliate since 2001.

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 President of FMR's Equity Division (2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager.

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 FMR's Program Management Group (2010-2013), and Vice President of Valuation Oversight (2008-2010).

Melissa M. Reilly (1971)

Year of Election or Appointment: 2014

Vice President of certain Equity Funds

 

Ms. Reilly also serves as Vice President of other funds. Ms. Reilly is an employee of Fidelity Investments (2004-present).

Kenneth B. Robins (1969)

Year of Election or Appointment: 2008

President and Treasurer

 

Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (2013-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served in other fund officer roles.

Stephen Sadoski (1971)

Year of Election or Appointment: 2012

Deputy Treasurer

 

Mr. Sadoski also serves as Deputy Treasurer of other funds. He is an employee of Fidelity Investments (2012-present) and has served in another fund officer role. Prior to joining Fidelity Investments, Mr. Sadoski served as an assistant chief accountant in the Division of Investment Management of the Securities and Exchange Commission (SEC) (2009-2012) and as a senior manager at Deloitte & Touche LLP (1997-2009).

Stacie M. Smith (1974)

Year of Election or Appointment: 2013

Deputy 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).

Renee Stagnone (1975)

Year of Election or Appointment: 2013

Deputy Treasurer

 

Ms. Stagnone also serves as Deputy Treasurer of other funds. Ms. Stagnone is an employee of Fidelity Investments.

Linda J. Wondrack (1964)

Year of Election or Appointment: 2014

Chief Compliance Officer

 

Ms. Wondrack also serves as Chief Compliance Officer of other funds. Ms. Wondrack is Executive Vice President and head of the Ethics Office and Asset Management Compliance for Fidelity Investments (2012-present). Ms. Wondrack also serves as Chief Compliance Officer of Fidelity SelectCo, LLC (2014-present); Chief Compliance Officer of Impresa Management LLC (2013-present); and Chief Compliance Officer of FMR Co., Inc., Fidelity Investments Money Management, Inc., Fidelity Management & Research (Japan) Inc., Fidelity Management & Research (U.K.) Inc., Fidelity Management & Research (Hong Kong), Fidelity Management & Research Company, Pyramis Global Advisors, LLC, and Strategic Advisers, Inc., Ballyrock Investment Advisors LLC, and Northern Neck Investors LLC (2012-present). Previously, Ms. Wondrack served as Senior Vice President and Chief Compliance Officer for Columbia Management Investment Advisers, LLC (2005-2012); Chief Compliance Officer for certain funds within the Columbia Family of Funds (2007-2012); and Senior Vice President of Compliance Risk Management at Bank of America (2005-2010).

Joseph F. Zambello (1957)

Year of Election or Appointment: 2011

Deputy Treasurer

 

Mr. Zambello also serves as Deputy Treasurer of other funds. Mr. Zambello is an employee of Fidelity Investments. Previously, Mr. Zambello served as Vice President of FMR's Program Management Group (2009-2011) and Vice President of the Transfer Agent Oversight Group (2005-2009).

Annual Report


Distributions (Unaudited)

The Board of Trustees of Fidelity Series Growth & Income 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:

 

Pay Date

Record Date

Capital Gains

Series Growth & Income

08/11/14

08/08/14

$0.194

 

 

 

 

Class F

08/11/14

08/08/14

$0.194

The fund hereby designates as a capital gain dividend with respect to the taxable year ended June 30, 2014, $40,839,288, or, if subsequently determined to be different, the net capital gain of such year.

A total of 0.02% 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.

Series Growth & Income designates 60%, 49%, 30% and 100%; and Class F designates 60%, 47%, 29% and 100% of the dividends distributed in August, October, December and April, respectively during the fiscal year as qualifying for the dividends-received deduction for corporate shareholders.

Series Growth & Income designates 61%, 51%, 34% and 100%; and Class F designates 61%, 49%, 33% and 100% of the dividends distributed in August, October, December and April, respectively during the fiscal year as amounts which may be taken into account as a dividend for the purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.

The fund will notify shareholders in January 2015 of amounts for use in preparing 2014 income tax returns.

Annual Report

Investment Adviser

Fidelity Management & Research Company

Boston, MA

Investment Sub-Advisers

FMR Co., Inc.

Fidelity Management & Research
(U.K.) Inc.

Fidelity Management & Research
(Hong Kong) Limited

Fidelity Management & Research
(Japan) Inc.

General Distributor

Fidelity Distributors Corporation

Smithfield, RI

Transfer and Service Agents

Fidelity Investments Institutional
Operations Company, Inc.

Boston, MA

Fidelity Service Company, Inc.

Boston, MA

Custodian

The Northern Trust Company

Chicago, IL

(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St., Boston, MA 02210
www.fidelity.com

MHT-ANN-0814
1.951035.101

Item 2. Code of Ethics

As of the end of the period, June 30, 2014, Fidelity Hastings Street Trust (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 Joseph Mauriello is an audit committee financial expert, as defined in Item 3 of Form N-CSR.   Mr. Mauriello 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 PricewaterhouseCoopers LLP ("PwC") in each of the last two fiscal years for services rendered to Fidelity Advisor Series Growth & Income Fund, Fidelity Fifty, Fidelity Fund, Fidelity Growth Discovery Fund, Fidelity Mega Cap Stock Fund and Fidelity Series Growth & Income Fund (the "Funds"):

Services Billed by PwC

June 30, 2014 FeesA

 

Audit Fees

Audit-Related Fees

Tax Fees

All Other Fees

Fidelity Advisor Series Growth & Income Fund

$38,000

$-

$3,600

$1,900

Fidelity Fifty

$39,000

$-

$4,000

$1,800

Fidelity Fund

$66,000

$-

$4,200

$3,900

Fidelity Growth Discovery Fund

$43,000

$-

$3,600

$1,900

Fidelity Mega Cap Stock Fund

$48,000

$-

$3,400

$2,600

Fidelity Series Growth & Income Fund

$45,000

$-

$3,400

$3,600

June 30, 2013 FeesA,B

 

Audit Fees

Audit-Related Fees

Tax Fees

All Other Fees

Fidelity Advisor Series Growth & Income Fund

$26,000

$-

$3,300

$800

Fidelity Fifty

$39,000

$-

$3,300

$1,800

Fidelity Fund

$65,000

$-

$3,300

$3,700

Fidelity Growth Discovery Fund

$42,000

$-

$3,300

$1,900

Fidelity Mega Cap Stock Fund

$42,000

$-

$3,300

$2,300

Fidelity Series Growth & Income Fund

$29,000

$-

$3,300

$1,100

A Amounts may reflect rounding.

B The Fidelity Advisor Series Growth & Income Fund and Fidelity Series Growth & Income Fund commenced operations on December 6, 2012.

The following table presents fees billed by PwC 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 Management & Research Company ("FMR") and entities controlling, controlled by, or under common control with FMR (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 PwC

 

June 30, 2014A

June 30, 2013A,B

Audit-Related Fees

$6,795,000

$3,665,000

Tax Fees

$-

$-

All Other Fees

$50,000

$-

A Amounts may reflect rounding.

B May include amounts billed prior to the Fidelity Advisor Series Growth & Income Fund and Fidelity Series Growth & Income Fund's commencement of operations.

"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 PwC for services rendered to the Funds, FMR (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

June 30, 2014 A

June 30, 2013 A,B

PwC

$8,285,000

$4,255,000

A Amounts may reflect rounding.

B May include amounts billed prior to the Fidelity Advisor Series Growth & Income Fund and Fidelity Series Growth & Income Fund's commencement of operations.

The trust's Audit Committee has considered non-audit services that were not pre-approved that were provided by PwC to Fund Service Providers to be compatible with maintaining the independence of PwC in its audit of the Funds, taking into account representations from PwC, in accordance with Public Company Accounting Oversight Board rules, regarding its independence from the Funds and their related entities and FMR'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 Hastings Street Trust

By:

/s/Kenneth B. Robins

 

Kenneth B. Robins

 

President and Treasurer

 

 

Date:

August 27, 2014

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/Kenneth B. Robins

 

Kenneth B. Robins

 

President and Treasurer

 

 

Date:

August 27, 2014

By:

/s/Howard J. Galligan III

 

Howard J. Galligan III

 

Chief Financial Officer

 

 

Date:

August 27, 2014

EX-99.CODE ETH 2 coe.htm

EXHIBIT EX-99.CODE ETH

FIDELITY FUNDS' CODE OF ETHICS FOR

PRESIDENT, TREASURER AND PRINCIPAL ACCOUNTING OFFICER

I. Purposes of the Code/Covered Officers

This document constitutes the Code of Ethics (Code) adopted by the Fidelity Funds (Funds) pursuant to the provisions of Rule 30b2-1(a) under the Investment Company Act of 1940), which Rule implements Sections 406 of the Sarbanes-Oxley Act of 2002 with respect to registered investment companies. The Code applies to the Fidelity Funds' President and Treasurer, and Chief Financial Officer (Covered Officers). Fidelity's Ethics Office, a part of Corporate Compliance Group within Core Compliance, administers the Code.

The purposes of the Code are to deter wrongdoing and to promote, on the part of the Covered Officers:

  • honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;
  • full, fair, accurate, timely and understandable disclosure in reports and documents that the Fidelity Funds submit to the Securities and Exchange Commission (SEC), and in other public communications by a Fidelity Fund;
  • compliance with applicable laws and governmental rules and regulations;
  • the prompt internal reporting to an appropriate person or persons identified in the Code of violations of the Code; and
  • accountability for adherence to the Code.

Each Covered Officer should adhere to a high standard of business ethics and should be sensitive to situations that may give rise to actual as well as apparent conflicts of interest.

II. Covered Officers Should Handle Ethically

Actual and Apparent Conflicts of Interest

Overview. A "conflict of interest" occurs when a Covered Officer's private interest interferes with the interests of, or his service to, the Fidelity Funds. For example, a conflict of interest would arise if a Covered Officer, or a member of his family, receives improper personal benefits as a result of his position with the Fidelity Funds.

Certain conflicts of interest arise out of the relationships between Covered Officers and the Fidelity Funds and already are subject to conflict of interest provisions in the Investment Company Act of 1940 (Investment Company Act) and the Investment Advisers Act of 1940 (Investment Advisers Act). For example, Covered Officers may not individually engage in certain transactions (such as the purchase or sale of securities or other property) with a Fidelity Fund because of their status as "affiliated persons" of the Fund. Separate compliance programs and procedures of the Fidelity Funds, Fidelity Management & Research Company (FMR) and the other Fidelity companies are designed to prevent, or identify and correct, violations of these provisions. This Code does not, and is not intended to, repeat or replace these programs and procedures, and such conflicts fall outside of the parameters of this Code.

Although typically not presenting an opportunity for improper personal benefit, conflicts arise from, or as a result of, the contractual relationship between the Fidelity Funds and FMR (or another Fidelity company) of which the Covered Officers are also officers or employees. As a result, this Code recognizes that the Covered Officers will, in the normal course of their duties (whether formally for the Fidelity Funds, FMR or another Fidelity company), be involved in establishing policies and implementing decisions that have different effects on the Fidelity Funds, FMR and other Fidelity companies. The participation of the Covered Officers in such activities is inherent in the contractual relationship between the Fidelity Funds and FMR (or another Fidelity company), and is consistent with the performance by the Covered Officers of their duties as officers of the Fidelity Funds. Thus, if performed in conformity with the provisions of the Investment Company Act and the Investment Advisers Act, such activities will be deemed to have been handled ethically. In addition, it is recognized by the Funds' Board of Trustees (Board) that the Covered Officers also may be officers or employees of one or more other Fidelity Funds covered by this Code.

Other conflicts of interest are covered by the Code, even if such conflicts of interest are not subject to provisions in the Investment Company Act and the Investment Advisers Act. The following list provides examples of conflicts of interest under the Code, but Covered Officers should keep in mind that these examples are not exhaustive. The overarching principle is that the personal interest of a Covered Officer should not be placed improperly before the interest of a Fidelity Fund.

* * *

Each Covered Officer must:

  • not use his or her personal influence or personal relationships improperly to influence investment decisions or financial reporting by any Fidelity Fund whereby the Covered Officer would benefit personally to the detriment of any Fidelity Fund;
  • not cause a Fidelity Fund to take action, or fail to take action, for the individual personal benefit of the Covered Officer rather than the benefit of the Fidelity Fund;
  • not engage in any outside business activity, including serving as a director or trustee, that prevents the Covered Officer from devoting appropriate time and attention to the Covered Officer's responsibilities with the Fidelity Funds;
  • not have a consulting or employment relationship with any of the Fidelity Funds' service providers that are not affiliated with Fidelity; and
  • not retaliate against any employee or Covered Officer for reports of actual or potential misconduct, which are made in good faith.

With respect to other fact patterns, if a Covered Officer is in doubt, other potential conflict of interest situations should be described immediately to the Fidelity Ethics Office for resolution. Similarly, any questions a Covered Officer has generally regarding the application or interpretation of the Code should be directed to the Fidelity Ethics Office immediately.

III. Disclosure and Compliance

  • Each Covered Officer should familiarize himself with the disclosure requirements generally applicable to the Fidelity Funds.
  • Each Covered Officer should not knowingly misrepresent, or cause others to misrepresent, facts about any Fidelity Fund to others, whether within or outside Fidelity, including to the Board and auditors, and to governmental regulators and self-regulatory organizations;
  • Each Covered Officer should, to the extent appropriate within his area of responsibility, consult with other officers and employees of the Fidelity Funds, FMR and the Fidelity service providers, and with the Board's Compliance Committee, with the goal of promoting full, fair, accurate, timely and understandable disclosure in the reports and documents the Fidelity Funds file with, or submit to, the SEC and in other public communications made by the Fidelity Funds; and
  • It is the responsibility of each Covered Officer to promote compliance with the standards and restrictions imposed by applicable laws, rules and regulations.

IV. Reporting and Accountability

Each Covered Officer must:

  • upon receipt of the Code, and annually thereafter, submit to the Fidelity Ethics Office an acknowledgement stating that he or she has received, read, and understands the Code; and
  • notify the Fidelity Ethics Office promptly if he or she knows of any violation of the Code. Failure to do so is itself a violation of this Code.

The Fidelity Ethics Office shall take all action it considers appropriate to investigate any actual or potential violations reported to it. Upon completion of the investigation, if necessary, the matter will be reviewed with senior management or other appropriate parties, and a determination will be made as to whether any action should be taken as detailed below. The Covered Officer will be informed of any action determined to be appropriate. The Fidelity Ethics Office will inform the Personal Trading Committee of all Code violations and actions taken in response. Without implied limitation, appropriate remedial, disciplinary or preventive action may include a written warning, a letter of censure, suspension, dismissal or, in the event of criminal or other serious violations of law, notification of the SEC or other appropriate law enforcement authorities. Additionally, other legal remedies may be pursued.

The policies and procedures described in the Code do not create any obligations to any person or entity other than the Fidelity Funds. The Code is intended solely for the internal use by the Fidelity Funds and does not constitute a promise, contract or an admission by or on behalf of any Fidelity Fund as to any fact, circumstance, or legal conclusion. The Fidelity Funds, the Fidelity companies and the Fidelity Chief Ethics Officer retain the discretion to decide whether the Code applies to a specific situation, and how it should be interpreted.

V. Oversight

Material violations of this Code will be reported promptly by FMR to the Board's Compliance Committee. In addition, at least once each year, FMR will provide a written report to the Board, which describes any issues arising under the Code since the last report to the Board, including, but not limited to, information about material violations of the Code and action taken in response to the material violations.

VI. Other Policies and Procedures

This Code shall be the sole code of ethics adopted by the Fidelity Funds for purposes of Section 406 of the Sarbanes-Oxley Act and the rules and forms applicable to registered investment companies thereunder. Other Fidelity policies or procedures that cover the behavior or activities of Covered Officers are separate requirements applying to the Covered Officers (and others), and are not part of this Code.

VII. Amendments

Any material amendments or changes to this Code must be approved or ratified by a majority vote of the Board, including a majority of the Trustees who are not interested persons of the Fidelity Funds.

VIII. Records and Confidentiality

Records of any violation of the Code and of the actions taken as a result of such violations will be kept by the Fidelity Ethics Office. All reports and records prepared or maintained pursuant to this Code will be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone other than the Fidelity Ethics Office, the Personal Trading Committee, the Board, appropriate personnel at the relevant Fidelity company or companies and the legal counsel of any or all of the foregoing.

EX-99.CERT 3 ex99.htm

Exhibit EX-99.CERT

I, Kenneth B. Robins, certify that:

1. I have reviewed this report on Form N-CSR of Fidelity Hastings Street Trust;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based upon such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting 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 registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 27, 2014

/s/Kenneth B. Robins

Kenneth B. Robins

President and Treasurer

I, Howard J. Galligan III, certify that:

1. I have reviewed this report on Form N-CSR of Fidelity Hastings Street Trust;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based upon such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting 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 registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 27, 2014

/s/Howard J. Galligan III

Howard J. Galligan III

Chief Financial Officer

EX-99.906 CERT 4 ex906.htm

Exhibit EX-99.906CERT

Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code)

In connection with the attached Report of Fidelity Hastings Street Trust (the "Trust") on Form N-CSR to be filed with the Securities and Exchange Commission (the "Report"), each of the undersigned officers of the Trust does hereby certify that, to the best of such officer's knowledge:

1. The Report fully complies with the requirements of 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Trust as of, and for, the periods presented in the Report.

Dated: August 27, 2014

/s/Kenneth B. Robins

Kenneth B. Robins

President and Treasurer

Dated: August 27, 2014

/s/Howard J. Galligan III

Howard J. Galligan III

Chief Financial Officer

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to the Trust and will be retained by the Trust and furnished to the Securities and Exchange Commission or its staff upon request.

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