N-CSRS 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 811-03466

Fidelity Hanover 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:

December 31

 

 

Date of reporting period:

June 30, 2014

Item 1. Reports to Stockholders

Fidelity® Emerging Markets Debt
Central Fund

Semiannual Report

June 30, 2014

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.

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. 

EMC-SANN-0814
1.926208.103

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.

Semiannual Report

Shareholder Expense Example - continued

 

Annualized
Expense RatioB

Beginning
Account Value
January 1, 2014

Ending
Account Value
June 30, 2014

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

Actual

.0099%

$ 1,000.00

$ 1,083.10

$ .05

HypotheticalA

 

$ 1,000.00

$ 1,024.75

$ .05

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).

Semiannual Report

Investment Changes (Unaudited)

Top Five Countries as of June 30, 2014

(excluding cash equivalents)

% of fund's
net assets

% of fund's net assets
6 months ago

Venezuela

12.2

8.8

Mexico

9.2

7.6

Indonesia

7.2

6.4

Argentina

6.5

5.5

Turkey

5.9

5.8

Percentages are adjusted for the effect of open futures contracts, if applicable.

Top Five Holdings as of June 30, 2014

(by issuer, excluding cash equivalents)

% of fund's
net assets

% of fund's net assets
6 months ago

Venezuelan Republic

7.3

4.3

Russian Federation

5.5

5.2

Petroleos de Venezuela SA

4.9

4.5

Indonesian Republic

4.7

4.2

Turkish Republic

4.7

5.0

 

27.1

Asset Allocation (% of fund's net assets)

As of June 30, 2014

As of December 31, 2013

hhh101724

Corporate
Bonds 37.0%

 

hhh101724

Corporate
Bonds 35.2%

 

hhh101727

Government
Obligations 54.9%

 

hhh101727

Government
Obligations 53.6%

 

hhh101730

Supranational Obligations 0.4%

 

hhh101732

Supranational Obligations 0.0%

 

hhh101734

Stocks 0.0%

 

hhh101736

Stocks 0.0%

 

hhh101738

Preferred Securities 0.9%

 

hhh101738

Preferred Securities 1.2%

 

hhh101741

Other Investments 0.5%

 

hhh101741

Other Investments 0.9%

 

hhh101744

Short-Term
Investments and
Net Other Assets (Liabilities) 6.3%

 

hhh101744

Short-Term
Investments and
Net Other Assets (Liabilities) 9.1%

 

hhh101747

Semiannual Report

Investments June 30, 2014 (Unaudited)

Showing Percentage of Net Assets

Nonconvertible Bonds - 37.0%

 

Principal Amount (d)

Value

Argentina - 2.7%

Aeropuertos Argentina 2000 SA 10.75% 12/1/20 (f)

$ 543,520

$ 570,696

Banco de Galicia y Buenos Aires SA 16% 1/1/19(Reg. S)

129,000

135,450

City of Buenos Aires 9.95% 3/1/17 (f)

500,000

506,750

Empresa Distribuidora y Comercializadora Norte SA 9.75% 10/25/22 (f)

215,000

165,550

Inversiones y Representaciones SA 11.5% 7/20/20 (Reg. S)

35,000

37,510

Pan American Energy LLC 7.875% 5/7/21 (f)

200,000

209,000

Transportadora de Gas del Sur SA 9.625% 5/14/20 (f)

765,341

780,648

YPF SA:

8.75% 4/4/24 (f)

230,000

240,327

8.875% 12/19/18 (f)

740,000

780,700

TOTAL ARGENTINA

3,426,631

Bailiwick of Jersey - 0.5%

Polyus Gold International Ltd. 5.625% 4/29/20 (f)

650,000

643,500

Bangladesh - 0.3%

Banglalink Digital Communications Ltd. 8.625% 5/6/19 (f)

400,000

424,000

Bermuda - 0.1%

Digicel Group Ltd. 8.25% 9/1/17 (f)

70,000

72,016

Brazil - 0.4%

Banco Daycoval SA 5.75% 3/19/19 (f)

150,000

156,450

Itau Unibanco Holding SA 6.2% 12/21/21 (f)

200,000

213,500

Rearden G Holdings Eins GmbH 7.875% 3/30/20 (f)

175,000

185,063

TOTAL BRAZIL

555,013

British Virgin Islands - 1.0%

Arcos Dorados Holdings, Inc. 10.25% 7/13/16 (f)

BRL

1,350,000

577,393

Gold Fields Orogen Holding BVI Ltd. 4.875% 10/7/20 (f)

600,000

552,000

Magnesita Finance Ltd. 8.625% (f)(g)

200,000

198,000

TOTAL BRITISH VIRGIN ISLANDS

1,327,393

Canada - 0.6%

Pacific Rubiales Energy Corp.:

5.375% 1/26/19 (f)

115,000

119,888

7.25% 12/12/21 (f)

545,000

604,950

Sino-Forest Corp. 6.25% 10/21/17 (c)(f)

420,000

0

TOTAL CANADA

724,838

Nonconvertible Bonds - continued

 

Principal Amount (d)

Value

Cayman Islands - 2.0%

Comcel Trust 6.875% 2/6/24 (f)

$ 120,000

$ 129,600

KWG Property Holding Ltd. 12.5% 8/18/17 (f)

200,000

214,000

Odebrecht Finance Ltd. 7.5% (f)(g)

850,000

876,563

Petrobras International Finance Co. Ltd.:

5.375% 1/27/21

430,000

448,159

6.875% 1/20/40

520,000

544,700

8.375% 12/10/18

305,000

362,198

TOTAL CAYMAN ISLANDS

2,575,220

El Salvador - 0.2%

Telemovil Finance Co. Ltd. 8% 10/1/17 (f)

249,000

261,774

Georgia - 0.8%

Georgia Bank Joint Stock Co.:

7.75% 7/5/17 (f)

400,000

428,000

7.75% 7/5/17 (Reg. S)

200,000

214,000

Georgian Oil & Gas Corp. 6.875% 5/16/17 (f)

200,000

211,160

JSC Georgian Railway 7.75% 7/11/22 (f)

200,000

224,000

TOTAL GEORGIA

1,077,160

Guatemala - 0.2%

Cementos Progreso Trust 7.125% 11/6/23 (f)

200,000

216,000

Indonesia - 2.5%

Perusahaan Penerbit SBSN 6.125% 3/15/19 (f)

200,000

222,250

PT Adaro Indonesia 7.625% 10/22/19 (f)

625,000

656,250

PT Gadjah Tunggal Tbk 7.75% 2/6/18 (f)

400,000

410,560

PT Pertamina Persero:

4.3% 5/20/23 (f)

200,000

189,130

4.875% 5/3/22 (f)

400,000

397,000

5.25% 5/23/21 (f)

235,000

242,050

5.625% 5/20/43 (f)

200,000

179,500

5.625% 5/20/43 (Reg. S)

400,000

359,000

6% 5/3/42 (f)

200,000

187,000

6.5% 5/27/41 (f)

400,000

399,000

TOTAL INDONESIA

3,241,740

Ireland - 1.8%

MTS International Funding Ltd. 8.625% 6/22/20 (f)

775,000

916,748

Nonconvertible Bonds - continued

 

Principal Amount (d)

Value

Ireland - continued

Vimpel Communications OJSC 7.748% 2/2/21 (Issued by VIP Finance Ireland Ltd. for Vimpel Communications) (f)

$ 1,120,000

$ 1,223,600

Vnesheconombank Via VEB Finance PLC 6.902% 7/9/20 (f)

165,000

179,446

TOTAL IRELAND

2,319,794

Kazakhstan - 1.5%

Development Bank of Kazakhstan JSC 4.125% 12/10/22 (f)

200,000

189,780

Kazagro National Management Holding JSC 4.625% 5/24/23 (f)

200,000

193,480

KazMunaiGaz Finance Sub BV:

6.375% 4/9/21 (f)

200,000

222,700

7% 5/5/20 (f)

275,000

312,813

9.125% 7/2/18 (f)

175,000

210,849

KazMunaiGaz National Co.:

4.4% 4/30/23 (f)

200,000

196,100

5.75% 4/30/43 (f)

200,000

192,000

Zhaikmunai International BV 7.125% 11/13/19 (f)

330,000

358,875

TOTAL KAZAKHSTAN

1,876,597

Korea (South) - 0.1%

Export-Import Bank of Korea 6% 6/4/16 (Reg. S)

INR

7,100,000

116,052

Luxembourg - 2.8%

Alrosa Finance SA 7.75% 11/3/20 (f)

600,000

663,780

Aquarius Investments Luxemburg 8.25% 2/18/16

200,000

206,500

EVRAZ Group SA:

6.5% 4/22/20 (f)

200,000

186,500

8.25% 11/10/15 (f)

600,000

626,580

9.5% 4/24/18 (Reg. S)

450,000

484,313

RSHB Capital SA 6% 6/3/21 (f)(h)

200,000

201,000

SB Capital SA 5.5% 2/26/24 (f)(h)

400,000

389,000

TMK Capital SA 7.75% 1/27/18

800,000

830,000

TOTAL LUXEMBOURG

3,587,673

Mexico - 6.6%

America Movil S.A.B. de CV 6.45% 12/5/22

MXN

4,500,000

343,957

Comision Federal de Electricid 5.75% 2/14/42 (f)

200,000

212,500

Credito Real S.A.B. de CV 7.5% 3/13/19 (f)

200,000

216,000

Gruma S.A.B. de CV 7.75% (Reg. S) (g)

450,000

455,625

Office Depot de Mexico SA de CV 6.875% 9/20/20 (f)

200,000

213,500

Nonconvertible Bonds - continued

 

Principal Amount (d)

Value

Mexico - continued

Pemex Project Funding Master Trust:

6.625% 6/15/35

$ 780,000

$ 918,450

6.625% 6/15/38

25,000

29,250

Petroleos Mexicanos:

3.5% 1/30/23

380,000

371,070

4.875% 1/24/22

260,000

281,268

4.875% 1/18/24

180,000

193,050

4.875% 1/18/24 (f)

10,000

10,725

5.5% 1/21/21

435,000

488,288

5.5% 6/27/44

490,000

510,090

6% 3/5/20

225,000

257,400

6.375% 1/23/45 (f)

650,000

754,813

6.5% 6/2/41

795,000

924,188

6.625% (f)(g)

1,380,000

1,431,750

8% 5/3/19

90,000

111,510

Tenedora Nemak SA de CV 5.5% 2/28/23 (f)

200,000

203,500

TV Azteca SA de CV 7.5% 5/25/18 (Reg. S)

600,000

639,000

TOTAL MEXICO

8,565,934

Netherlands - 3.6%

DTEK Finance BV 9.5% 4/28/15 (Reg. S)

410,000

386,425

GTB Finance BV 6% 11/8/18 (f)

800,000

796,000

HSBK BV:

7.25% 5/3/17 (f)

200,000

215,760

7.25% 5/3/17 (Reg. S)

100,000

107,880

Indosat Palapa Co. BV 7.375% 7/29/20 (f)

200,000

216,760

Intergas Finance BV 6.375% 5/14/17 (Reg. S)

325,000

350,188

Majapahit Holding BV 7.75% 1/20/20 (f)

120,000

140,400

Metinvest BV 10.25% 5/20/15 (f)

825,000

794,063

Mozambique Ematum Finance 2020 6.305% 9/11/20 (Reg. S)

200,000

202,000

Nord Gold NV 6.375% 5/7/18 (f)

600,000

593,250

Nostrum Oil & Gas Finance BV 6.375% 2/14/19 (f)

430,000

449,350

Petrobras Global Finance BV 2.3665% 1/15/19 (h)

435,000

432,825

TOTAL NETHERLANDS

4,684,901

Nigeria - 0.3%

FBN Finance Co. BV 8.25% 8/7/20 (f)(h)

200,000

207,500

Zenith Bank PLC 6.25% 4/22/19 (f)

200,000

199,260

TOTAL NIGERIA

406,760

Nonconvertible Bonds - continued

 

Principal Amount (d)

Value

Paraguay - 0.4%

BBVA Paraguay SA 9.75% 2/11/16 (f)

$ 225,000

$ 241,875

Telefonica Celular del Paraguay SA 6.75% 12/13/22 (f)

200,000

215,250

TOTAL PARAGUAY

457,125

Philippines - 0.5%

Development Bank of Philippines 8.375% (g)(h)

485,000

518,604

Power Sector Assets and Liabilities Management Corp. 7.39% 12/2/24 (f)

100,000

128,500

TOTAL PHILIPPINES

647,104

Turkey - 1.2%

Finansbank A/S:

5.5% 5/11/16 (Reg. S)

400,000

410,360

6.25% 4/30/19 (f)

520,000

536,952

Yapi ve Kredi Bankasi A/S:

5.25% 12/3/18 (f)

200,000

204,760

6.75% 2/8/17 (f)

400,000

428,000

TOTAL TURKEY

1,580,072

Ukraine - 0.2%

Naftogaz of Ukraine NJSC 9.5% 9/30/14

320,000

313,600

United Kingdom - 1.3%

Afren PLC:

6.625% 12/9/20 (f)

200,000

206,500

10.25% 4/8/19 (Reg. S)

200,000

226,750

Biz Finance PLC 8.375% 4/27/15 (Reg. S)

925,000

864,875

Ferrexpo Finance PLC 7.875% 4/7/16 (f)

400,000

385,000

TOTAL UNITED KINGDOM

1,683,125

United States of America - 0.5%

Southern Copper Corp.:

6.75% 4/16/40

175,000

190,279

7.5% 7/27/35

350,000

407,444

TOTAL UNITED STATES OF AMERICA

597,723

Venezuela - 4.9%

Petroleos de Venezuela SA:

4.9% 10/28/14

865,000

863,184

6% 11/15/26 (f)

440,000

283,800

8.5% 11/2/17 (f)

3,330,000

3,114,528

8.5% 11/2/17 (Reg. S)

240,000

224,472

9% 11/17/21 (Reg. S)

240,000

203,976

Nonconvertible Bonds - continued

 

Principal Amount (d)

Value

Venezuela - continued

Petroleos de Venezuela SA: - continued

9.75% 5/17/35 (f)

$ 1,170,000

$ 958,230

12.75% 2/17/22 (f)

715,000

723,044

TOTAL VENEZUELA

6,371,234

TOTAL NONCONVERTIBLE BONDS

(Cost $45,965,165)


47,752,979

Government Obligations - 54.9%

 

Argentina - 3.8%

Argentine Republic:

7% 10/3/15

2,200,000

2,088,900

7% 4/17/17

1,705,000

1,567,274

Buenos Aires Province 10.875% 1/26/21 (Reg. S)

500,000

477,500

City of Buenos Aires 12.5% 4/6/15 (f)

125,000

127,188

Provincia de Cordoba 12.375% 8/17/17 (f)

350,000

336,875

Provincia de Neuquen Argentina 7.875% 4/26/21 (Reg. S)

255,000

251,813

TOTAL ARGENTINA

4,849,550

Armenia - 0.5%

Republic of Armenia 6% 9/30/20 (f)

600,000

633,000

Aruba - 0.1%

Aruba Government 4.625% 9/14/23 (f)

200,000

195,200

Azerbaijan - 0.3%

Azerbaijan Republic 4.75% 3/18/24 (f)

200,000

206,000

State Oil Co. of Azerbaijan Republic 4.75% 3/13/23 (Reg. S)

200,000

199,000

TOTAL AZERBAIJAN

405,000

Barbados - 0.0%

Barbados Government 7% 8/4/22 (f)

70,000

63,525

Belarus - 1.0%

Belarus Republic:

8.75% 8/3/15 (Reg. S)

1,060,000

1,090,528

8.95% 1/26/18

175,000

189,000

TOTAL BELARUS

1,279,528

Government Obligations - continued

 

Principal Amount (d)

Value

Bolivia - 0.5%

Plurinational State of Bolivia:

4.875% 10/29/22 (f)

$ 200,000

$ 200,600

5.95% 8/22/23 (f)

400,000

422,000

TOTAL BOLIVIA

622,600

Brazil - 3.0%

Brazilian Federative Republic:

4.25% 1/7/25

200,000

202,700

5.625% 1/7/41

990,000

1,064,250

7.125% 1/20/37

840,000

1,062,600

8.25% 1/20/34

685,000

948,725

12.25% 3/6/30

320,000

592,000

TOTAL BRAZIL

3,870,275

Colombia - 1.5%

Colombian Republic:

5.625% 2/26/44

200,000

224,000

6.125% 1/18/41

215,000

257,463

7.375% 9/18/37

375,000

510,000

10.375% 1/28/33

575,000

908,500

TOTAL COLOMBIA

1,899,963

Congo - 0.5%

Congo Republic 3.5% 6/30/29 (e)

734,251

666,803

Costa Rica - 0.4%

Costa Rican Republic:

4.25% 1/26/23 (f)

200,000

192,000

4.375% 4/30/25 (f)

200,000

186,800

7% 4/4/44 (f)

200,000

208,000

TOTAL COSTA RICA

586,800

Croatia - 1.6%

Croatia Republic:

5.5% 4/4/23 (f)

400,000

415,500

6% 1/26/24 (f)

400,000

429,000

6.25% 4/27/17 (f)

355,000

384,508

6.375% 3/24/21 (f)

250,000

274,688

6.625% 7/14/20 (f)

175,000

195,563

6.75% 11/5/19 (f)

300,000

336,375

TOTAL CROATIA

2,035,634

Government Obligations - continued

 

Principal Amount (d)

Value

Dominican Republic - 1.3%

Dominican Republic:

1.1344% 8/30/24 (h)

$ 500,000

$ 435,000

5.875% 4/18/24 (f)

150,000

156,525

7.45% 4/30/44 (f)

455,000

487,168

7.5% 5/6/21 (f)

425,000

485,138

9.04% 1/23/18 (f)

118,042

130,259

TOTAL DOMINICAN REPUBLIC

1,694,090

El Salvador - 0.3%

El Salvador Republic:

7.65% 6/15/35 (Reg. S)

275,000

297,413

8.25% 4/10/32 (Reg. S)

100,000

113,750

TOTAL EL SALVADOR

411,163

Georgia - 0.2%

Georgia Republic 6.875% 4/12/21 (f)

200,000

226,500

Hungary - 1.1%

Hungarian Republic:

4.125% 2/19/18

368,000

383,640

5.375% 3/25/24

116,000

124,120

5.75% 11/22/23

291,000

320,828

7.625% 3/29/41

502,000

642,871

TOTAL HUNGARY

1,471,459

Indonesia - 4.2%

Indonesian Republic:

3.375% 4/15/23 (f)

200,000

185,500

4.875% 5/5/21 (f)

500,000

525,000

5.25% 1/17/42 (f)

200,000

190,000

5.375% 10/17/23

200,000

212,250

5.875% 3/13/20 (f)

400,000

444,000

6.625% 2/17/37 (f)

375,000

416,250

6.75% 1/15/44 (f)

400,000

460,000

6.875% 1/17/18 (f)

250,000

285,938

7.75% 1/17/38 (f)

855,000

1,065,544

8.5% 10/12/35 (Reg. S)

775,000

1,026,875

11.625% 3/4/19 (f)

450,000

613,463

TOTAL INDONESIA

5,424,820

Iraq - 0.6%

Republic of Iraq 5.8% 1/15/28 (Reg. S)

800,000

720,000

Government Obligations - continued

 

Principal Amount (d)

Value

Ivory Coast - 0.5%

Ivory Coast 7.7743% 12/31/32 (e)

$ 650,000

$ 629,688

Jordan - 0.2%

Jordanian Kingdom 3.875% 11/12/15

200,000

201,000

Lebanon - 1.3%

Lebanese Republic:

4% 12/31/17

553,000

551,618

4.75% 11/2/16

155,000

156,783

5.15% 11/12/18

250,000

251,250

5.45% 11/28/19

440,000

441,100

6.375% 3/9/20

230,000

240,925

TOTAL LEBANON

1,641,676

Lithuania - 0.4%

Lithuanian Republic:

6.125% 3/9/21 (f)

270,000

315,468

6.625% 2/1/22 (f)

200,000

241,750

TOTAL LITHUANIA

557,218

Mexico - 2.6%

United Mexican States:

4.75% 3/8/44

824,000

840,480

5.55% 1/21/45

115,000

130,813

6.05% 1/11/40

876,000

1,061,712

6.75% 9/27/34

595,000

770,525

7.5% 4/8/33

230,000

317,400

8.3% 8/15/31

190,000

278,635

TOTAL MEXICO

3,399,565

Morocco - 0.2%

Moroccan Kingdom 4.25% 12/11/22 (f)

200,000

200,250

Namibia - 0.2%

Republic of Namibia 5.5% 11/3/21 (f)

200,000

214,246

Netherlands - 0.2%

Republic of Angola 7% 8/16/19 (Issued by Northern Lights III BV for Republic of Angola) (Reg. S)

250,000

272,550

Nigeria - 0.2%

Central Bank of Nigeria warrants 11/15/20 (a)

250

42,006

Republic of Nigeria 6.75% 1/28/21 (f)

150,000

165,563

TOTAL NIGERIA

207,569

Government Obligations - continued

 

Principal Amount (d)

Value

Pakistan - 1.4%

Islamic Republic of Pakistan:

7.125% 3/31/16 (f)

$ 675,000

$ 695,250

7.25% 4/15/19 (f)

840,000

858,900

8.25% 4/15/24 (f)

200,000

206,250

TOTAL PAKISTAN

1,760,400

Panama - 0.4%

Panamanian Republic:

6.7% 1/26/36

110,000

135,685

8.875% 9/30/27

100,000

143,000

9.375% 4/1/29

170,000

252,960

TOTAL PANAMA

531,645

Peru - 0.9%

Peruvian Republic:

4% 3/7/27 (e)

380,000

380,000

8.75% 11/21/33

520,000

791,440

TOTAL PERU

1,171,440

Philippines - 1.5%

Philippine Republic:

7.75% 1/14/31

420,000

580,125

9.5% 2/2/30

450,000

703,688

10.625% 3/16/25

395,000

619,656

TOTAL PHILIPPINES

1,903,469

Romania - 0.8%

Romanian Republic:

4.375% 8/22/23 (f)

208,000

213,158

6.125% 1/22/44 (f)

228,000

259,088

6.75% 2/7/22 (f)

494,000

589,713

TOTAL ROMANIA

1,061,959

Russia - 5.5%

Russian Federation:

4.5% 4/4/22 (f)

200,000

204,500

4.875% 9/16/23 (f)

600,000

619,500

5.875% 9/16/43 (f)

800,000

854,000

7.5% 3/31/30 (Reg. S)

2,582,450

2,990,839

12.75% 6/24/28 (Reg. S)

1,430,000

2,476,045

TOTAL RUSSIA

7,144,884

Government Obligations - continued

 

Principal Amount (d)

Value

Serbia - 1.0%

Republic of Serbia:

5.25% 11/21/17 (f)

$ 400,000

$ 417,000

5.875% 12/3/18 (f)

200,000

212,750

6.75% 11/1/24 (f)

333,424

337,258

6.75% 11/1/24 (Reg. S)

90,115

91,151

7.25% 9/28/21 (f)

200,000

228,000

TOTAL SERBIA

1,286,159

South Africa - 0.2%

South African Republic 5.875% 9/16/25

200,000

222,300

Sri Lanka - 1.3%

Democratic Socialist Republic of Sri Lanka:

5.125% 4/11/19 (f)

200,000

203,250

5.875% 7/25/22 (f)

400,000

411,500

6% 1/14/19 (f)

200,000

210,500

6.25% 10/4/20 (f)

500,000

531,725

6.25% 7/27/21 (f)

250,000

263,750

7.4% 1/22/15 (f)

125,000

128,625

TOTAL SRI LANKA

1,749,350

Tanzania - 0.2%

United Republic of Tanzania 6.332% 3/9/20 (h)

200,000

213,000

Turkey - 4.7%

Turkish Republic:

5.125% 3/25/22

220,000

232,430

5.625% 3/30/21

425,000

463,250

6.25% 9/26/22

405,000

456,354

6.75% 4/3/18

450,000

508,050

6.75% 5/30/40

400,000

466,720

6.875% 3/17/36

545,000

641,738

7% 3/11/19

300,000

345,300

7.25% 3/5/38

445,000

549,575

7.375% 2/5/25

750,000

911,250

7.5% 11/7/19

630,000

746,865

8% 2/14/34

140,000

184,114

11.875% 1/15/30

315,000

538,902

TOTAL TURKEY

6,044,548

Ukraine - 0.7%

Ukraine Financing of Infrastructure Projects State Enterprise 8.375% 11/3/17 (f)

200,000

189,000

Government Obligations - continued

 

Principal Amount (d)

Value

Ukraine - continued

Ukraine Government:

7.75% 9/23/20 (f)

$ 175,000

$ 166,950

9.25% 7/24/17 (f)

600,000

607,500

TOTAL UKRAINE

963,450

United States of America - 0.5%

U.S. Treasury Bonds 3.625% 8/15/43

609,000

641,924

Uruguay - 0.7%

Uruguay Republic 7.875% 1/15/33 pay-in-kind

650,000

883,999

Venezuela - 7.3%

Venezuelan Republic:

oil recovery rights 4/15/20 (a)

5,800

127,600

5.75% 2/26/16 (Reg S.)

1,960,000

1,856,120

6% 12/9/20

330,000

253,275

7% 3/31/38

175,000

122,938

8.5% 10/8/14

1,450,000

1,453,625

9% 5/7/23 (Reg. S)

1,290,000

1,102,950

9.25% 9/15/27

380,000

326,800

9.25% 5/7/28 (Reg. S)

420,000

352,800

9.375% 1/13/34

375,000

315,938

11.75% 10/21/26 (Reg. S)

665,000

651,035

11.95% 8/5/31 (Reg. S)

1,410,000

1,381,800

12.75% 8/23/22

1,115,000

1,145,663

13.625% 8/15/18

355,000

383,400

TOTAL VENEZUELA

9,473,944

Vietnam - 1.0%

Vietnamese Socialist Republic:

1.1875% 3/12/16 (h)

147,826

130,087

4% 3/12/28 (e)

1,045,000

950,950

6.875% 1/15/16 (f)

175,000

187,250

TOTAL VIETNAM

1,268,287

Zambia - 0.1%

Republic of Zambia 5.375% 9/20/22 (f)

200,000

188,260

TOTAL GOVERNMENT OBLIGATIONS

(Cost $67,546,372)


70,888,690

Supranational Obligations - 0.4%

 

Principal Amount (d)

Value

European Bank for Reconstruction & Development 6.2% 6/27/15

INR

10,700,000

$ 177,514

Inter-American Development Bank 4.75% 10/25/15(Reg. S)

INR

11,000,000

178,443

International Finance Corp. 7.75% 12/3/16

INR

7,000,000

117,689

TOTAL SUPRANATIONAL OBLIGATIONS

(Cost $479,640)


473,646

Sovereign Loan Participations - 0.5%

 

Indonesia - 0.5%

Indonesian Republic loan participation:

Goldman Sachs 1.1875% 12/14/19 (h)

$ 541,667

525,417

Mizuho 1.1875% 12/14/19 (h)

151,293

146,754

TOTAL SOVEREIGN LOAN PARTICIPATIONS

(Cost $665,530)


672,171

Preferred Securities - 0.9%

 

Brazil - 0.4%

Cosan Overseas Ltd. 8.25% (g)

160,000

168,685

Globo Comunicacoes e Participacoes SA 6.25% (e)(f)(g)

300,000

317,584

TOTAL BRAZIL

486,269

Cayman Islands - 0.4%

CSN Islands XII Corp. 7% (Reg. S) (g)

550,000

520,587

India - 0.1%

Reliance Industries Ltd. 5.875% (f)(g)

200,000

200,739

TOTAL PREFERRED SECURITIES

(Cost $1,223,929)


1,207,595

Money Market Funds - 4.8%

Shares

Value

Fidelity Cash Central Fund, 0.11% (b)
(Cost $6,208,839)

6,208,839

$ 6,208,839

TOTAL INVESTMENT PORTFOLIO - 98.5%

(Cost $122,089,475)

127,203,920

NET OTHER ASSETS (LIABILITIES) - 1.5%

1,891,190

NET ASSETS - 100%

$ 129,095,110

Currency Abbreviations

BRL

-

Brazilian real

INR

-

Indian rupee

MXN

-

Mexican peso

Legend

(a) Quantity represents share amount.

(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 are available on the SEC's website or upon request.

(c) Non-income producing - Security is in default.

(d) Amount is stated in United States dollars unless otherwise noted.

(e) Security initially issued at one coupon which converts to a higher coupon at a specified date. The rate shown is the rate 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 $53,706,473 or 41.6% of net assets.

(g) Security is perpetual in nature with no stated maturity date.

(h) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end.

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

$ 4,120

Other Information

Categorizations in the Schedule of Investments are based on country or territory of incorporation.

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:

Corporate Bonds

$ 47,752,979

$ -

$ 47,752,979

$ -

Government Obligations

70,888,690

-

70,508,690

380,000

Supranational Obligations

473,646

-

473,646

-

Sovereign Loan Participations

672,171

-

-

672,171

Preferred Securities

1,207,595

-

1,207,595

-

Money Market Funds

6,208,839

6,208,839

-

-

Total Investments in Securities:

$ 127,203,920

$ 6,208,839

$ 119,942,910

$ 1,052,171

Valuation Inputs at Reporting Date:

The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value:

Investments in Securities:

Beginning Balance

$ 1,044,530

Net Realized Gain (Loss) on Investment Securities

708

Net Unrealized Gain (Loss) on Investment Securities

20,671

Cost of Purchases

-

Proceeds of Sales

(17,890)

Amortization/Accretion

4,152

Transfers into Level 3

-

Transfers out of Level 3

-

Ending Balance

$ 1,052,771

The change in unrealized gain (loss) for the period attributable to Level 3 securities held at June 30, 2014

$ 20,671

The information used in the above reconciliations represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliations are included in Net Gain (Loss) on the Fund's Statement of Operations.

The composition of credit quality ratings as a percentage of net assets is as follows (Unaudited):

U.S. Government and U.S. Government Agency Obligations

0.5%

AAA,AA,A

8.2%

BBB

32.7%

BB

15.8%

B

13.2%

CCC,CC,C

15.4%

Not Rated

7.7%

Other Investments

0.2%

Short-Term Investments and Net Other Assets

6.3%

 

100.0%

We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes.

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

Semiannual Report

Financial Statements

Statement of Assets and Liabilities

 

June 30, 2014 (Unaudited)

 

 

 

Assets

Investment in securities, at value - See accompanying schedule:

Unaffiliated issuers (cost $115,880,636)

$ 120,995,081

 

Fidelity Central Funds (cost $6,208,839)

6,208,839

 

Total Investments (cost $122,089,475)

 

$ 127,203,920

Cash

 

342,069

Receivable for investments sold

292,440

Receivable for fund shares sold

17,227

Interest receivable

2,127,502

Distributions receivable from Fidelity Central Funds

730

Total assets

129,983,888

 

 

 

Liabilities

Payable for investments purchased

$ 827,314

Payable for fund shares redeemed

58,140

Other payables and accrued expenses

3,324

Total liabilities

888,778

 

 

 

Net Assets

$ 129,095,110

Net Assets consist of:

 

Paid in capital

$ 123,239,379

Undistributed net investment income

1,128,732

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

(387,966)

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

5,114,965

Net Assets, for 12,350,387 shares outstanding

$ 129,095,110

Net Asset Value, offering price and redemption price per share ($129,095,110 ÷ 12,350,387 shares)

$ 10.45

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

Semiannual Report

Financial Statements - continued

Statement of Operations

Six months ended June 30, 2014 (Unaudited)

 

 

 

Investment Income

 

 

Dividends

 

$ 40,475

Interest

 

3,121,830

Income from Fidelity Central Funds

 

4,120

Total income

 

3,166,425

 

 

 

Expenses

Custodian fees and expenses

$ 4,673

Independent trustees' compensation

173

Total expenses before reductions

4,846

Expense reductions

(235)

4,611

Net investment income (loss)

3,161,814

Realized and Unrealized Gain (Loss)

Net realized gain (loss) on:

Investment securities:

 

 

Unaffiliated issuers

(228,934)

Foreign currency transactions

1,274

Total net realized gain (loss)

 

(227,660)

Change in net unrealized appreciation (depreciation) on:

Investment securities

5,069,667

Assets and liabilities in foreign currencies

2,888

Total change in net unrealized appreciation (depreciation)

 

5,072,555

Net gain (loss)

4,844,895

Net increase (decrease) in net assets resulting from operations

$ 8,006,709

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

Semiannual Report

Statement of Changes in Net Assets

 

Six months ended
June 30, 2014
(Unaudited)

Year ended
December 31,
2013

Increase (Decrease) in Net Assets

 

 

Operations

 

 

Net investment income (loss)

$ 3,161,814

$ 6,047,544

Net realized gain (loss)

(227,660)

1,539,348

Change in net unrealized appreciation (depreciation)

5,072,555

(11,248,978)

Net increase (decrease) in net assets resulting
from operations

8,006,709

(3,662,086)

Distributions to shareholders from net investment income

(2,814,682)

(5,543,690)

Distributions to shareholders from net realized gain

-

(2,073,847)

Total distributions

(2,814,682)

(7,617,537)

Share transactions
Proceeds from sales of shares

46,151,352

6,448,806

Reinvestment of distributions

2,790,898

7,611,575

Cost of shares redeemed

(1,278,884)

(40,741,364)

Net increase (decrease) in net assets resulting from share transactions

47,663,366

(26,680,983)

Total increase (decrease) in net assets

52,855,393

(37,960,606)

 

 

 

Net Assets

Beginning of period

76,239,717

114,200,323

End of period (including undistributed net investment income of $1,128,732 and undistributed net investment income of $781,600, respectively)

$ 129,095,110

$ 76,239,717

Other Information

Shares

Sold

4,534,853

605,655

Issued in reinvestment of distributions

274,146

730,537

Redeemed

(126,357)

(3,857,916)

Net increase (decrease)

4,682,642

(2,521,724)

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

Semiannual Report

Financial Highlights

 

Six months ended
June 30, 2014

Years ended December 31,

 

(Unaudited)

2013

2012

2011G

Selected Per-Share Data

 

 

 

 

Net asset value, beginning of period

$ 9.94

$ 11.21

$ 9.98

$ 10.00

Income from Investment Operations

 

 

 

 

Net investment income (loss) D

  .336

  .711

  .743

  .526

Net realized and unrealized gain (loss)

  .477

  (1.070)

  1.287

  (.017)

Total from investment operations

  .813

  (.359)

  2.030

  .509

Distributions from net investment income

  (.303)

  (.650)

  (.680)

  (.489)

Distributions from net realized gain

  -

  (.261)

  (.120)

  (.040)

Total distributions

  (.303)

  (.911)

  (.800)

  (.529)

Net asset value, end of period

$ 10.45

$ 9.94

$ 11.21

$ 9.98

Total ReturnB, C

  8.31%

  (3.22)%

  20.99%

  5.18%

Ratios to Average Net AssetsE, H

 

 

 

 

Expenses before reductions

  .01%A

  .02%

  .01%

  .02%A

Expenses net of fee waivers, if any

  .01%A

  .01%

  .01%

  .02%A

Expenses net of all reductions

  .01%A

  .01%

  .01%

  .02%A

Net investment income (loss)

  6.71%A

  6.69%

  6.99%

  6.61%A

Supplemental Data

 

 

 

 

Net assets, end of period (000 omitted)

$ 129,095

$ 76,240

$ 114,200

$ 111,537

Portfolio turnover rateF

  29%A

  35%

  49%

  55%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 March 17, 2011 (commencement of operations) to December 31, 2011.

H Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from 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 expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.

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

Semiannual Report

Notes to Financial Statements

For the period ended June 30, 2014 (Unaudited)

1. Organization.

Fidelity® Emerging Markets Debt Central Fund (the Fund) is a non-diversified fund of Fidelity Hanover 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. Shares of the Fund are only offered to other investment companies and accounts managed by Fidelity Management & Research Company (FMR), or its affiliates (the Investing Funds).

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 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

Semiannual Report

Notes to Financial Statements (Unaudited) - 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:

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, foreign government and government agency obligations, preferred securities, supranational obligations, U.S. government and government agency obligations and sovereign loan participations 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. The Fund invests a significant portion of its assets in below investment grade securities. The value of these securities can be more volatile due to changes in the credit quality of the issuer and is sensitive to changes in economic, market and regulatory conditions.

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.

Semiannual 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. The aggregate value of investments by input level, as of June 30, 2014, as well as a roll forward of Level 3 investments, 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. 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. 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. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

3. Significant Accounting Policies - continued

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. 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.

Dividends are declared and recorded daily and paid monthly from net investment income. Distributions from realized gains, if any, 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, market discount, 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

$ 6,529,831

Gross unrealized depreciation

(524,959)

Net unrealized appreciation (depreciation) on securities and other investments

$ 6,004,872

 

 

Tax cost

$ 121,199,048

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.

Semiannual Report

3. Significant Accounting Policies - continued

Restricted Securities - continued

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.

Loans and Other Direct Debt Instruments. The Fund invests in direct debt instruments which are interests in amounts owed to lenders by corporate or other borrowers. These instruments may be in the form of loans, trade claims or other receivables and may include standby financing commitments such as revolving credit facilities that obligate the Fund to supply additional cash to the borrower on demand. Loans may be acquired through assignment or participation, or may be made directly to a borrower. The Fund may be contractually obligated to receive approval from the agent bank and/or borrower prior to the sale of these loans. The Fund did not have any unfunded loan commitments, which are contractual obligations for future funding, at period end.

4. Purchases and Sales of Investments.

Purchases and sales of securities, other than short-term securities and U.S. government securities, aggregated $56,409,632 and $12,206,419, respectively.

5. Fees and Other Transactions with Affiliates.

Management Fee and Expense Contract. FMR Co., Inc.( the investment adviser), an affiliate of FMR, provides the Fund with investment management services. The Fund does not pay any fees for these services. Pursuant to the Fund's management contract with the investment adviser, FMR pays the investment adviser a portion of the management fees it receives from the Investing Funds. In addition, under an expense contract, FMR also pays all other expenses of the Fund, excluding custody fees, the compensation of the independent Trustees, and certain exceptions such as interest expense.

6. Expense Reductions.

The investment adviser has voluntarily agreed to reimburse a portion of the Fund's operating expenses. For the period, the reimbursement reduced the expenses by $173.

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 $62.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

7. 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.

8. Credit Risk.

The Fund's relatively large investment in countries with limited or developing capital markets may involve greater risks than investments in more developed markets and the prices of such investments may be volatile. The yields of emerging market debt obligations reflect, among other things, perceived credit risk. The consequences of political, social or economic changes in these markets may have disruptive effects on the market prices of the Fund's investments and the income they generate, as well as the Fund's ability to repatriate such amounts.

Semiannual Report

Item 2. Code of Ethics

Not applicable.

Item 3. Audit Committee Financial Expert

Not applicable.

Item 4. Principal Accountant Fees and Services

Not applicable.

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 Fidelity Hanover Street 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 Fidelity Hanover Street Trust's (the "Trust") 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)

Not applicable.

(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 Hanover Street Trust

By:

/s/Kenneth B. Robins

 

Kenneth B. Robins

 

President and Treasurer

 

 

Date:

August 26, 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 26, 2014

By:

/s/Howard J. Galligan III

 

Howard J. Galligan III

 

Chief Financial Officer

 

 

Date:

August 26, 2014