N-CSRS 1 EMC_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, 2015

Item 1. Reports to Stockholders

Shareholder Expense Example Investment Changes (Unaudited) Investments June 30, 2015 (Unaudited) Financial Statements Notes to Financial Statements

Fidelity® Emerging Markets Debt
Central Fund

Semiannual Report

June 30, 2015

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. © 2015 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-0815
1.926208.104

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, 2015 to June 30, 2015).

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 Ratio B

Beginning
Account Value
January 1, 2015

Ending
Account Value
June 30, 2015

Expenses Paid
During Period*
January 1, 2015
to June 30, 2015

Actual

.0074%

$ 1,000.00

$ 1,038.60

$ .04

Hypothetical A

 

$ 1,000.00

$ 1,024.76

$ .04

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, 2015

(excluding cash equivalents)

% of fund's
net assets

% of fund's net assets
6 months ago

Mexico

9.9

10.5

Argentina

9.4

9.1

Venezuela

7.3

7.7

Turkey

6.4

6.7

Indonesia

6.1

7.1

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

Top Five Holdings as of June 30, 2015

(by issuer, excluding cash equivalents)

% of fund's
net assets

% of fund's net assets
6 months ago

Turkish Republic

6.0

6.3

Russian Federation

5.1

4.6

Petroleos Mexicanos

4.5

5.0

Indonesian Republic

4.5

5.4

Argentine Republic

4.3

4.4

 

24.4

Asset Allocation (% of fund's net assets)

As of June 30, 2015

As of December 31, 2014

emc404

Corporate Bonds 31.3%

 

emc406

Corporate Bonds 32.7%

 

emc408

Government
Obligations 58.7%

 

emc410

Government
Obligations 57.2%

 

emc412

Supranational Obligations 0.1%

 

emc414

Supranational Obligations 0.4%

 

emc416

Preferred Securities 2.1%

 

emc418

Preferred Securities 1.8%

 

emc420

Other Investments 0.6%

 

emc422

Other Investments 0.6%

 

emc424

Short-Term
Investments and
Net Other Assets
(Liabilities) 7.2%

 

emc426

Short-Term
Investments and
Net Other Assets
(Liabilities) 7.3%

 

emc428

Semiannual Report

Investments June 30, 2015 (Unaudited)

Showing Percentage of Net Assets

Nonconvertible Bonds - 31.3%

 

Principal Amount (d)

Value

Argentina - 2.9%

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

$ 486,640

$ 520,705

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

167,049

175,402

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

35,000

39,550

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

155,000

158,681

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

765,341

772,995

YPF SA:

8.5% 7/28/25 (f)

325,000

321,750

8.75% 4/4/24 (f)

670,000

680,050

8.875% 12/19/18 (f)

495,000

525,938

TOTAL ARGENTINA

3,195,071

Azerbaijan - 0.2%

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

200,000

190,395

Bailiwick of Jersey - 0.6%

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

650,000

611,000

Bangladesh - 0.4%

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

400,000

404,000

Bermuda - 0.2%

Kosmos Energy Ltd. 7.875% 8/1/21 (f)

200,000

193,000

Brazil - 0.1%

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

175,000

170,188

British Virgin Islands - 0.8%

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

BRL

1,600,000

479,238

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

400,000

366,000

TOTAL BRITISH VIRGIN ISLANDS

845,238

Canada - 0.7%

Pacific Rubiales Energy Corp. 7.25% 12/12/21 (f)

945,000

774,900

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

420,000

0

TOTAL CANADA

774,900

Cayman Islands - 0.4%

Petrobras International Finance Co. Ltd. 6.875% 1/20/40

505,000

449,884

Georgia - 0.8%

Georgia Bank Joint Stock Co.:

7.75% 7/5/17 (f)

400,000

413,221

Nonconvertible Bonds - continued

 

Principal Amount (d)

Value

Georgia - continued

Georgia Bank Joint Stock Co.: - continued

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

$ 200,000

$ 206,610

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

200,000

201,500

TOTAL GEORGIA

821,331

Indonesia - 1.6%

PT Pertamina Persero:

4.3% 5/20/23 (f)

200,000

191,500

4.875% 5/3/22 (f)

200,000

201,750

5.25% 5/23/21 (f)

235,000

243,531

5.625% 5/20/43 (f)

200,000

177,500

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

400,000

355,000

6% 5/3/42 (f)

200,000

185,540

6.5% 5/27/41 (f)

400,000

396,520

TOTAL INDONESIA

1,751,341

Ireland - 1.7%

EDC Finance Ltd. 4.875% 4/17/20 (f)

400,000

349,400

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

550,000

592,873

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

920,000

923,450

TOTAL IRELAND

1,865,723

Kazakhstan - 0.8%

KazMunaiGaz Finance Sub BV 6% 11/7/44 (f)

200,000

171,500

KazMunaiGaz National Co. 5.75% 4/30/43 (f)

200,000

166,883

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

530,000

501,513

TOTAL KAZAKHSTAN

839,896

Korea (South) - 0.1%

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

INR

7,100,000

110,942

Luxembourg - 2.3%

EVRAZ Group SA:

6.5% 4/22/20 (f)

400,000

361,800

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

650,000

669,312

OJSC Russian Agricultural Bank:

6.299% 5/15/17 (Issued by RSHB Capital SA for OJSC Russian Agricultural Bank) (f)

300,000

302,250

7.75% 5/29/18 (Issued by RSHB Capital SA for OJSC Russian Agricultural Bank) (f)

240,000

247,680

SB Capital SA 5.5% 2/26/24 (f)(h)

650,000

538,127

Nonconvertible Bonds - continued

 

Principal Amount (d)

Value

Luxembourg - continued

TMK Capital SA:

6.75% 4/3/20 (Reg. S)

$ 200,000

$ 173,000

7.75% 1/27/18

200,000

194,860

TOTAL LUXEMBOURG

2,487,029

Malaysia - 0.4%

Malaysia Sovereign Sukuk Bhd 3.043% 4/22/25 (f)

240,000

238,601

Petronas Capital Ltd. 3.5% 3/18/25 (f)

200,000

197,859

TOTAL MALAYSIA

436,460

Mexico - 6.6%

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

MXN

6,500,000

396,183

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

200,000

210,000

Pemex Project Funding Master Trust:

6.625% 6/15/35

920,000

982,100

6.625% 6/15/38

25,000

26,375

Petroleos Mexicanos:

3.5% 1/30/23

310,000

294,097

4.875% 1/24/22

260,000

270,366

4.875% 1/18/24

190,000

194,750

5.5% 1/21/21

255,000

276,548

5.5% 6/27/44 (f)

210,000

193,200

5.5% 6/27/44

540,000

496,800

5.625% 1/23/46 (f)

165,000

154,061

6.375% 1/23/45

830,000

851,788

6.5% 6/2/41

735,000

764,400

6.625% (f)(g)

1,380,000

1,374,825

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

600,000

619,440

TOTAL MEXICO

7,104,933

Netherlands - 3.5%

GTB Finance BV 6% 11/8/18 (f)

800,000

758,800

HSBK BV:

7.25% 5/3/17 (f)

500,000

516,250

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

100,000

103,250

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

150,000

154,500

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

120,000

138,750

Metinvest BV 10.5% 11/28/17 (f)

993,000

570,975

Nord Gold NV 6.375% 5/7/18 (f)

400,000

396,000

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

430,000

403,125

Petrobras Global Finance BV:

2.4153% 1/15/19 (h)

70,000

64,715

Nonconvertible Bonds - continued

 

Principal Amount (d)

Value

Netherlands - continued

Petrobras Global Finance BV: - continued

3% 1/15/19

$ 175,000

$ 161,728

6.85% 6/5/15

325,000

266,617

VimpelCom Holdings BV:

9% 2/13/18 (f)

RUB

5,000,000

83,030

9% 2/13/18 (Reg S.)

RUB

7,000,000

116,242

TOTAL NETHERLANDS

3,733,982

Nigeria - 0.6%

Zenith Bank PLC 6.25% 4/22/19 (f)

700,000

671,125

Paraguay - 0.4%

BBVA Paraguay SA 9.75% 2/11/16 (f)

375,000

388,388

Philippines - 0.5%

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

485,000

509,315

Tunisia - 0.2%

Banque Centrale de Tunisie 5.75% 1/30/25 (f)

270,000

263,588

Turkey - 0.4%

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

400,000

405,520

United Kingdom - 0.7%

Afren PLC:

6.625% 12/9/20 (c)(f)

400,000

176,000

10.25% 4/8/19 (Reg. S) (c)

600,000

264,000

Ferrexpo Finance PLC 10.375% 4/7/19 (f)

450,000

375,750

TOTAL UNITED KINGDOM

815,750

United States of America - 0.4%

Southern Copper Corp. 7.5% 7/27/35

350,000

391,979

Venezuela - 4.0%

Petroleos de Venezuela SA:

5.375% 4/12/27

150,000

51,375

5.5% 4/12/37

165,000

56,595

6% 11/15/26 (f)

390,000

137,475

8.5% 11/2/17 (f)

4,410,000

3,031,875

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

240,000

165,000

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

240,000

97,800

Nonconvertible Bonds - continued

 

Principal Amount (d)

Value

Venezuela - continued

Petroleos de Venezuela SA: - continued

9.75% 5/17/35 (f)

$ 1,170,000

$ 473,265

12.75% 2/17/22 (f)

695,000

342,983

TOTAL VENEZUELA

4,356,368

TOTAL NONCONVERTIBLE BONDS

(Cost $36,671,830)


33,787,346

Government Obligations - 58.7%

 

Argentina - 6.5%

Argentine Republic:

7% 10/3/15

915,000

910,883

7% 4/17/17

3,835,000

3,686,270

Buenos Aires Province:

9.375% 9/14/18 (f)

100,000

98,250

9.95% 6/9/21

240,000

234,600

10.875% 1/26/21 (Reg. S)

850,000

854,250

City of Buenos Aires:

8.95% 2/19/21 (f)

405,000

413,100

9.95% 3/1/17 (f)

300,000

310,500

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

450,000

459,000

TOTAL ARGENTINA

6,966,853

Armenia - 0.5%

Republic of Armenia:

6% 9/30/20 (f)

400,000

390,760

7.15% 3/26/25 (f)

200,000

198,000

TOTAL ARMENIA

588,760

Belarus - 2.4%

Belarus Republic:

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

1,385,000

1,369,073

8.95% 1/26/18

1,310,000

1,250,068

TOTAL BELARUS

2,619,141

Bolivia - 0.2%

Plurinational State of Bolivia 5.95% 8/22/23 (f)

200,000

212,000

Government Obligations - continued

 

Principal Amount (d)

Value

Brazil - 3.3%

Brazilian Federative Republic:

4.25% 1/7/25

$ 200,000

$ 193,100

5.625% 1/7/41

965,000

921,575

7.125% 1/20/37

940,000

1,062,200

8.25% 1/20/34

910,000

1,130,675

10% 1/1/17

BRL

765,000

233,776

TOTAL BRAZIL

3,541,326

Colombia - 2.0%

Colombian Republic:

4.375% 3/21/23

COP

541,000,000

187,621

5% 6/15/45

200,000

185,000

5.625% 2/26/44

200,000

202,500

6.125% 1/18/41

415,000

449,238

7.375% 9/18/37

275,000

338,938

10.375% 1/28/33

525,000

789,075

TOTAL COLOMBIA

2,152,372

Congo - 0.9%

Congo Republic 4% 6/30/29

1,075,020

954,618

Costa Rica - 0.5%

Costa Rican Republic:

4.25% 1/26/23 (f)

200,000

184,600

7% 4/4/44 (f)

400,000

387,000

TOTAL COSTA RICA

571,600

Croatia - 1.3%

Croatia Republic:

5.5% 4/4/23 (f)

200,000

205,626

6% 1/26/24 (f)

400,000

422,901

6.375% 3/24/21 (f)

250,000

269,688

6.625% 7/14/20 (f)

175,000

191,378

6.75% 11/5/19 (f)

300,000

330,186

TOTAL CROATIA

1,419,779

Dominican Republic - 2.0%

Dominican Republic:

1.25% 8/30/24 (h)

500,000

485,250

5.5% 1/27/25 (f)

280,000

280,700

5.875% 4/18/24 (f)

150,000

155,625

6.85% 1/27/45 (f)

355,000

362,100

Government Obligations - continued

 

Principal
Amount (d)

Value

Dominican Republic - continued

Dominican Republic: - continued

7.45% 4/30/44 (f)

$ 455,000

$ 497,088

7.5% 5/6/21 (f)

325,000

364,813

TOTAL DOMINICAN REPUBLIC

2,145,576

Egypt - 0.3%

Arab Republic 5.875% 6/11/25 (f)

320,000

312,480

El Salvador - 0.4%

El Salvador Republic:

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

275,000

276,375

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

100,000

109,250

TOTAL EL SALVADOR

385,625

Georgia - 0.2%

Georgia Republic 6.875% 4/12/21 (f)

200,000

216,000

Hungary - 0.8%

Hungarian Republic:

5.375% 3/25/24

116,000

125,715

5.75% 11/22/23

231,000

255,833

7.625% 3/29/41

392,000

519,455

TOTAL HUNGARY

901,003

Iceland - 0.1%

Republic of Iceland 5.875% 5/11/22 (f)

120,000

135,496

Indonesia - 3.9%

Indonesian Republic:

3.375% 4/15/23 (f)

200,000

188,500

4.875% 5/5/21 (f)

300,000

318,390

5.25% 1/17/42 (f)

200,000

192,250

5.375% 10/17/23

200,000

215,250

5.875% 3/13/20 (f)

190,000

211,375

6.625% 2/17/37 (f)

375,000

423,750

6.75% 1/15/44 (f)

400,000

464,000

7.75% 1/17/38 (f)

855,000

1,089,099

7.875% 4/15/19

IDR

2,013,000,000

149,665

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

675,000

911,250

TOTAL INDONESIA

4,163,529

Iraq - 0.8%

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

1,050,000

849,030

Government Obligations - continued

 

Principal Amount (d)

Value

Ivory Coast - 0.9%

Ivory Coast 5.75% 12/31/32

$ 1,025,000

$ 961,143

Lebanon - 1.3%

Lebanese Republic:

4% 12/31/17

395,000

392,038

4.75% 11/2/16

155,000

155,676

5.15% 11/12/18

250,000

251,563

5.45% 11/28/19

330,000

332,063

6.375% 3/9/20

230,000

238,913

TOTAL LEBANON

1,370,253

Mexico - 3.3%

United Mexican States:

4.6% 1/23/46

200,000

185,000

4.75% 3/8/44

754,000

716,300

5.55% 1/21/45

150,000

159,563

6.05% 1/11/40

876,000

994,260

6.5% 6/10/21

MXN

2,360,000

156,351

6.75% 9/27/34

610,000

765,550

7.5% 4/8/33

230,000

309,350

8.3% 8/15/31

170,000

250,325

TOTAL MEXICO

3,536,699

Morocco - 0.2%

Moroccan Kingdom 4.25% 12/11/22 (f)

200,000

204,000

Nigeria - 0.2%

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

250

30,464

Republic of Nigeria 5.125% 7/12/18 (f)

200,000

200,750

TOTAL NIGERIA

231,214

Pakistan - 1.4%

Islamic Republic of Pakistan:

7.125% 3/31/16 (f)

575,000

590,094

7.25% 4/15/19 (f)

640,000

670,806

8.25% 4/15/24 (f)

200,000

217,500

TOTAL PAKISTAN

1,478,400

Panama - 0.5%

Panamanian Republic:

6.7% 1/26/36

150,000

185,250

Government Obligations - continued

 

Principal Amount (d)

Value

Panama - continued

Panamanian Republic: - continued

8.875% 9/30/27

$ 100,000

$ 141,500

9.375% 4/1/29

170,000

251,600

TOTAL PANAMA

578,350

Peru - 0.7%

Peruvian Republic:

4% 3/7/27 (e)

380,000

380,000

8.75% 11/21/33

235,000

354,850

TOTAL PERU

734,850

Philippines - 1.2%

Philippine Republic:

7.75% 1/14/31

370,000

533,725

9.5% 2/2/30

290,000

469,438

10.625% 3/16/25

200,000

319,250

TOTAL PHILIPPINES

1,322,413

Romania - 0.8%

Romanian Republic:

4.375% 8/22/23 (f)

258,000

264,424

6.125% 1/22/44 (f)

228,000

255,816

6.75% 2/7/22 (f)

254,000

296,545

TOTAL ROMANIA

816,785

Russia - 5.1%

Russian Federation:

4.875% 9/16/23 (f)

600,000

593,400

5% 4/29/20 (f)

300,000

307,890

5.875% 9/16/43 (f)

1,000,000

963,240

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

1,125,000

1,317,924

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

1,505,000

2,356,589

TOTAL RUSSIA

5,539,043

Serbia - 1.1%

Republic of Serbia:

5.25% 11/21/17 (f)

400,000

413,240

5.875% 12/3/18 (f)

200,000

210,250

6.75% 11/1/24 (f)

301,669

306,647

Government Obligations - continued

 

Principal Amount (d)

Value

Serbia - continued

Republic of Serbia: - continued

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

$ 81,532

$ 82,877

7.25% 9/28/21 (f)

200,000

224,000

TOTAL SERBIA

1,237,014

South Africa - 0.2%

South African Republic 5.875% 9/16/25

200,000

221,569

Sri Lanka - 0.9%

Democratic Socialist Republic of Sri Lanka:

5.125% 4/11/19 (f)

200,000

199,000

5.875% 7/25/22 (f)

200,000

196,500

6.25% 10/4/20 (f)

275,000

281,545

6.25% 7/27/21 (f)

250,000

253,438

TOTAL SRI LANKA

930,483

Turkey - 6.0%

Turkish Republic:

3.25% 3/23/23

200,000

186,000

4.875% 4/16/43

200,000

181,992

5.125% 3/25/22

220,000

230,450

5.625% 3/30/21

425,000

458,108

6.25% 9/26/22

405,000

450,538

6.75% 4/3/18

350,000

385,957

6.75% 5/30/40

400,000

460,000

6.875% 3/17/36

795,000

922,200

7% 3/11/19

200,000

224,780

7.25% 3/5/38

545,000

659,861

7.375% 2/5/25

750,000

900,000

7.5% 11/7/19

630,000

726,390

8% 2/14/34

140,000

180,530

11.875% 1/15/30

315,000

529,736

TOTAL TURKEY

6,496,542

Ukraine - 0.9%

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

200,000

97,501

Ukraine Government:

7.75% 9/23/20 (f)

240,000

118,200

7.8% 11/28/22 (f)

600,000

309,000

Government Obligations - continued

 

Principal Amount (d)

Value

Ukraine - continued

Ukraine Government: - continued

7.95% 2/23/21 (f)

$ 200,000

$ 104,000

9.25% 7/24/17 (f)

725,000

348,725

TOTAL UKRAINE

977,426

United States of America - 3.0%

U.S. Treasury Bonds 2.5% 2/15/45

1,222,000

1,070,396

U.S. Treasury Notes 1.375% 4/30/20

2,141,000

2,115,743

TOTAL UNITED STATES OF AMERICA

3,186,139

Uruguay - 0.6%

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

505,000

677,962

Venezuela - 3.3%

Venezuelan Republic:

oil recovery rights 4/15/20 (i)

5,800

58,000

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

2,175,000

1,797,094

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

400,000

155,000

9.25% 9/15/27

310,000

130,975

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

350,000

133,875

9.375% 1/13/34

270,000

105,300

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

460,000

197,800

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

1,495,000

639,113

12.75% 8/23/22

715,000

330,688

13.625% 8/15/18

95,000

67,450

TOTAL VENEZUELA

3,615,295

Vietnam - 1.0%

Vietnamese Socialist Republic:

1.2139% 3/12/16 (h)

73,913

72,897

4% 3/12/28 (e)

1,008,333

983,125

TOTAL VIETNAM

1,056,022

TOTAL GOVERNMENT OBLIGATIONS

(Cost $64,466,253)


63,306,790

Supranational Obligations - 0.1%

 

European Bank for Reconstruction & Development 6% 3/3/16
(Cost $163,249)

INR

10,500,000


164,600

Sovereign Loan Participations - 0.6%

 

Principal Amount (d)

Value

Indonesia - 0.6%

Indonesian Republic loan participation:

Goldman Sachs 1.25% 12/14/19 (h)

$ 500,000

$ 490,000

Mizuho 1.25% 12/14/19 (h)

139,655

136,862

TOTAL SOVEREIGN LOAN PARTICIPATIONS

(Cost $618,763)


626,862

Preferred Securities - 2.1%

 

Brazil - 0.7%

Cosan Overseas Ltd. 8.25% (g)

360,000

362,798

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

400,000

404,445

TOTAL BRAZIL

767,243

British Virgin Islands - 0.2%

Magnesita Finance Ltd. 8.625% (f)(g)

200,000

166,103

Cayman Islands - 1.2%

Banco Do Brasil SA 9% (f)(g)(h)

200,000

181,079

CSN Islands XII Corp. 7% (Reg. S) (g)

450,000

302,185

Odebrecht Finance Ltd. 7.5% (f)(g)

1,050,000

833,145

TOTAL CAYMAN ISLANDS

1,316,409

TOTAL PREFERRED SECURITIES

(Cost $2,622,203)


2,249,755

Money Market Funds - 5.4%

Shares

 

Fidelity Cash Central Fund, 0.15% (b)
(Cost $5,817,733)

5,817,733


5,817,733

TOTAL INVESTMENT PORTFOLIO - 98.2%

(Cost $110,360,031)

105,953,086

NET OTHER ASSETS (LIABILITIES) - 1.8%

1,918,091

NET ASSETS - 100%

$ 107,871,177

Currency Abbreviations

BRL

-

Brazilian real

COP

-

Colombian peso

IDR

-

Indonesian rupiah

INR

-

Indian rupee

MXN

-

Mexican peso

RUB

-

Russian ruble

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 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 $41,736,846 or 38.7% 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.

(i) Quantity represents share amount.

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

$ 3,990

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, 2015, 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 tables 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

$ 33,787,346

$ -

$ 33,787,346

$ -

Government Obligations

63,306,790

-

62,795,893

510,897

Supranational Obligations

164,600

-

164,600

-

Sovereign Loan Participations

626,862

-

-

626,862

Preferred Securities

2,249,755

-

2,249,755

-

Money Market Funds

5,817,733

5,817,733

-

-

Total Investments in Securities:

$ 105,953,086

$ 5,817,733

$ 98,997,594

$ 1,137,759

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:

Government Obligations

Beginning Balance

$ 1,816,121

Net Realized Gain (Loss) on Investment Securities

(3,669)

Net Unrealized Gain (Loss) on Investment Securities

11,529

Cost of Purchases

-

Proceeds of Sales

(314,481)

Amortization/Accretion

2,397

Transfers into Level 3

-

Transfers out of Level 3

(1,001,000)

Ending Balance

$ 510,897

The change in unrealized gain (loss) for the period attributable to Level 3 securities held at June 30, 2015

$ 6,698

Investments in Securities - continued

Other Investments in Securities

Beginning Balance

$ 755,534

Net Realized Gain (Loss) on Investment Securities

879

Net Unrealized Gain (Loss) on Investment Securities

5,684

Cost of Purchases

-

Proceeds of Sales

(26,652)

Amortization/Accretion

2,299

Transfers into Level 3

-

Transfers out of Level 3

(110,882)

Ending Balance

$ 626,862

The change in unrealized gain (loss) for the period attributable to Level 3 securities held at June 30, 2015

$ 5,684

The information used in the above reconciliation 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 into Level 3 were attributable to a lack of observable market data resulting from decreases in market activity, decreases in liquidity, security restructurings or corporate actions. Transfers out of Level 3 were attributable to observable market data becoming available for those securities. 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.

Other Information

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

3.0%

AAA,AA,A

10.4%

BBB

22.5%

BB

20.4%

B

10.6%

CCC,CC,C

15.6%

D

0.4%

Not Rated

9.9%

Equities

0.0%

Short-Term Investments and Net
Other Assets

7.2%

 

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, 2015 (Unaudited)

 

 

 

Assets

Investment in securities, at value - See accompanying schedule:

Unaffiliated issuers (cost $104,542,298)

$ 100,135,353

 

Fidelity Central Funds (cost $5,817,733)

5,817,733

 

Total Investments (cost $110,360,031)

 

$ 105,953,086

Cash

 

444,701

Receivable for investments sold

354,679

Receivable for fund shares sold

8,116

Interest receivable

1,860,183

Distributions receivable from Fidelity Central Funds

667

Total assets 

108,621,432

 

 

 

Liabilities

Payable for investments purchased

$ 670,718

Payable for fund shares redeemed

75,899

Other payables and accrued expenses

3,638

Total liabilities 

750,255

 

 

 

Net Assets

$ 107,871,177

Net Assets consist of:

 

Paid in capital

$ 112,975,958

Undistributed net investment income

1,549,099

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

(2,245,097)

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

(4,408,783)

Net Assets, for 11,332,805 shares outstanding

$ 107,871,177

Net Asset Value, offering price and redemption price per share ($107,871,177 ÷ 11,332,805 shares)

$ 9.52

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, 2015 (Unaudited)

 

 

 

Investment Income

 

 

Dividends

 

$ 110,448

Interest

 

3,923,490

Income from Fidelity Central Funds

 

3,990

Total income 

 

4,037,928

 

 

 

Expenses

Custodian fees and expenses

$ 3,897

Independent trustees' compensation

221

Total expenses before reductions

4,118

Expense reductions

(250)

3,868

Net investment income (loss)

4,034,060

Realized and Unrealized Gain (Loss)

Net realized gain (loss) on:

Investment securities:

 

 

Unaffiliated issuers

(1,677,345)

Foreign currency transactions

(13,635)

Total net realized gain (loss)

 

(1,690,980)

Change in net unrealized appreciation (depreciation) on:

Investment securities

1,716,045

Assets and liabilities in foreign currencies

6,877

Total change in net unrealized appreciation (depreciation)

 

1,722,922

Net gain (loss)

31,942

Net increase (decrease) in net assets resulting from operations

$ 4,066,002

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, 2015
(Unaudited)

Year ended
December 31,
2014

Increase (Decrease) in Net Assets

 

 

Operations

 

 

Net investment income (loss)

$ 4,034,060

$ 7,452,357

Net realized gain (loss)

(1,690,980)

(505,863)

Change in net unrealized appreciation (depreciation)

1,722,922

(6,174,115)

Net increase (decrease) in net assets resulting from operations 

4,066,002

772,379

Distributions to shareholders from net investment income

(3,491,842)

(6,622,037)

Distributions to shareholders from net realized gain

-

(496,491)

Total distributions 

(3,491,842)

(7,118,528)

Share transactions

 

 

Proceeds from sales of shares

2,540,881

49,666,316

Reinvestment of distributions

3,491,841

7,082,301

Cost of shares redeemed

(2,860,389)

(22,517,501)

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

3,172,333

34,231,116

Total increase (decrease) in net assets 

3,746,493

27,884,967

 

 

 

Net Assets

Beginning of period

104,124,684

76,239,717

End of period (including undistributed net investment income of $1,549,099 and undistributed net investment income of $1,006,881, respectively)

$ 107,871,177

$ 104,124,684

Other Information

Shares

Sold

266,222

4,887,263

Issued in reinvestment of distributions

364,698

702,089

Redeemed

(298,968)

(2,256,244)

Net increase (decrease)

331,952

3,333,108

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

Semiannual Report

Financial Highlights

 

Six months ended
June 30, 2015

Years ended December 31,

 

(Unaudited)

2014

2013

2012

2011 G

Selected Per-Share Data

 

 

 

 

 

Net asset value, beginning of period

$ 9.47

$ 9.94

$ 11.21

$ 9.98

$ 10.00

Income from Investment Operations

 

 

 

 

 

Net investment income (loss) D

  .361

  .702

  .711

  .743

  .526

Net realized and unrealized gain (loss)

  .002

  (.501)

  (1.070)

  1.287

  (.017)

Total from investment operations

  .363

  .201

  (.359)

  2.030

  .509

Distributions from net investment income

  (.313)

  (.627)

  (.650)

  (.680)

  (.489)

Distributions from net realized gain

  -

  (.044)

  (.261)

  (.120)

  (.040)

Total distributions

  (.313)

  (.671)

  (.911)

  (.800)

  (.529)

Net asset value, end of period

$ 9.52

$ 9.47

$ 9.94

$ 11.21

$ 9.98

Total ReturnB, C

  3.86%

  1.81%

  (3.22)%

  20.99%

  5.18%

Ratios to Average Net AssetsE, H

 

 

 

 

 

Expenses before reductions

  .01%A

  .01%

  .02%

  .01%

  .02%A

Expenses net of fee waivers, if any

  .01%A

  .01%

  .01%

  .01%

  .02%A

Expenses net of all reductions

  .01%A

  .01%

  .01%

  .01%

  .02%A

Net investment income (loss)

  7.62%A

  6.96%

  6.69%

  6.99%

  6.61%A

Supplemental Data

 

 

 

 

 

Net assets, end of period (000 omitted)

$ 107,871

$ 104,125

$ 76,240

$ 114,200

$ 111,537

Portfolio turnover rate F

  38%A

  42%

  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, 2015 (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. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the FMR Fair Value Committee (the Committee). In accordance with valuation policies and procedures

Semiannual Report

3. Significant Accounting Policies - continued

Investment Valuation - continued

approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, 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 reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.

The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:

Level 1 - quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)

Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)

Valuation techniques used to value the Fund's investments by major category are as follows:

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. Independent prices obtained from a single source or broker are evaluated by management and may be categorized as Level 3 in the hierarchy. 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

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

3. Significant Accounting Policies - continued

Investment Valuation - continued

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.

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, 2015, 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

Semiannual Report

3. Significant Accounting Policies - continued

Investment Transactions and Income - continued

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.

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 market discount, foreign currency transactions, capital loss carryforward and losses deferred due to wash sales and excise tax regulations.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

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

$ 3,422,777

Gross unrealized depreciation

(6,688,452)

Net unrealized appreciation (depreciation) on securities

$ (3,265,675)

 

 

Tax cost

$ 109,218,761

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 prior fiscal period end and is subject to adjustment.

No expiration

 

Short-term

$ (394,410)

Long-term

(127,683)

Total capital loss carryforward

$ (522,093)

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.

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. The Fund did not have any unfunded loan commitments, which are contractual obligations for future funding, at period end.

Semiannual Report

4. Purchases and Sales of Investments.

Purchases and sales of securities, other than short-term securities and U.S. government securities, aggregated $16,357,802 and $16,098,424, 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.

FMR has voluntarily agreed to reimburse a portion of the Fund's operating expenses. For the period, the reimbursement reduced the expenses by $221.

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 $29.

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.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

7. Other - continued

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, 2015

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, 2015

By:

/s/Howard J. Galligan III

 

Howard J. Galligan III

 

Chief Financial Officer

 

 

Date:

August 26, 2015