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 811-3785
Fidelity Advisor Series I
(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: |
November 30 |
|
|
Date of reporting period: |
May 31, 2014 |
This report on Form N-CSR relates solely to the Registrant's Fidelity Advisor Dividend Growth Fund, Fidelity Advisor Equity Income Fund, Fidelity Advisor Equity Growth Fund, Fidelity Advisor Series Growth Opportunities Fund, Fidelity Advisor Series Small Cap Fund, Fidelity Advisor Stock Selector Mid Cap Fund, and Fidelity Advisor Value Strategies Fund series (each, a "Fund" and collectively, the "Funds").
Item 1. Reports to Stockholders
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Dividend Growth
Fund - Institutional Class
Semiannual Report
May 31, 2014
(Fidelity Cover Art)
Shareholder Expense Example |
An example of shareholder expenses. |
|
Investment Changes |
A summary of major shifts in the fund's investments over the past six months. |
|
Investments |
A complete list of the fund's investments with their market values. |
|
Financial Statements |
Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
|
Notes |
Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (December 1, 2013 to May 31, 2014).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
|
Annualized |
Beginning |
Ending |
Expenses Paid |
Class A |
.91% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,061.20 |
$ 4.68 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,020.39 |
$ 4.58 |
Class T |
1.15% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,059.90 |
$ 5.91 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,019.20 |
$ 5.79 |
Class B |
1.75% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,057.20 |
$ 8.98 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,016.21 |
$ 8.80 |
Class C |
1.66% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,056.70 |
$ 8.51 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,016.65 |
$ 8.35 |
Institutional Class |
.66% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,062.60 |
$ 3.39 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,021.64 |
$ 3.33 |
Class Z |
.49% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,063.50 |
$ 2.52 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,022.49 |
$ 2.47 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
Semiannual Report
Top Ten Stocks as of May 31, 2014 |
||
|
% of fund's |
% of fund's net assets |
Apple, Inc. |
4.0 |
3.2 |
Microsoft Corp. |
2.5 |
1.8 |
Johnson & Johnson |
2.4 |
0.8 |
Wells Fargo & Co. |
2.4 |
1.4 |
JPMorgan Chase & Co. |
2.3 |
1.8 |
Chevron Corp. |
2.1 |
0.0 |
Verizon Communications, Inc. |
1.9 |
0.0 |
Exxon Mobil Corp. |
1.9 |
0.0 |
Merck & Co., Inc. |
1.7 |
0.0 |
Oracle Corp. |
1.7 |
0.8 |
|
22.9 |
|
Top Five Market Sectors as of May 31, 2014 |
||
|
% of fund's |
% of fund's net assets |
Information Technology |
20.4 |
17.9 |
Financials |
15.7 |
15.5 |
Health Care |
13.8 |
13.4 |
Consumer Discretionary |
11.1 |
14.2 |
Consumer Staples |
10.3 |
10.1 |
Asset Allocation (% of fund's net assets) |
|||||||
As of May 31, 2014* |
As of November 30, 2013** |
||||||
Stocks and |
|
Stocks 98.6% |
|
||||
Convertible |
|
Convertible |
|
||||
Other Investments 0.1% |
|
Other Investments 0.0% |
|
||||
Short-Term |
|
Short-Term |
|
||||
* Foreign investments |
13.8% |
|
** Foreign investments |
18.1% |
|
Semiannual Report
Showing Percentage of Net Assets
Common Stocks - 96.3% |
|||
Shares |
Value (000s) |
||
CONSUMER DISCRETIONARY - 11.1% |
|||
Auto Components - 0.8% |
|||
Johnson Controls, Inc. |
174,917 |
$ 8,459 |
|
Diversified Consumer Services - 0.5% |
|||
H&R Block, Inc. |
193,564 |
5,764 |
|
Hotels, Restaurants & Leisure - 2.2% |
|||
ARAMARK Holdings Corp. |
205,000 |
5,408 |
|
Bloomin' Brands, Inc. (a) |
19,763 |
412 |
|
Brinker International, Inc. |
152,028 |
7,548 |
|
Darden Restaurants, Inc. |
92,700 |
4,646 |
|
Sonic Corp. (a) |
84,206 |
1,751 |
|
Wyndham Worldwide Corp. |
42,252 |
3,124 |
|
|
22,889 |
||
Household Durables - 0.5% |
|||
Taylor Wimpey PLC |
2,815,664 |
5,111 |
|
Media - 4.1% |
|||
Altice S.A. |
44,800 |
3,255 |
|
Atresmedia Corporacion de Medios de Comunicacion SA |
232,299 |
3,654 |
|
CBS Corp. Class B |
120,702 |
7,195 |
|
Comcast Corp. Class A |
310,925 |
16,230 |
|
DISH Network Corp. Class A (a) |
32,900 |
1,930 |
|
MDC Partners, Inc. Class A (sub. vtg.) |
132,201 |
2,779 |
|
Time Warner, Inc. |
119,881 |
8,371 |
|
|
43,414 |
||
Specialty Retail - 1.8% |
|||
AutoZone, Inc. (a) |
16,600 |
8,840 |
|
Foot Locker, Inc. |
105,791 |
5,097 |
|
GameStop Corp. Class A |
129,200 |
4,890 |
|
Staples, Inc. |
13,411 |
151 |
|
|
18,978 |
||
Textiles, Apparel & Luxury Goods - 1.2% |
|||
NIKE, Inc. Class B |
78,185 |
6,013 |
|
VF Corp. |
106,300 |
6,699 |
|
|
12,712 |
||
TOTAL CONSUMER DISCRETIONARY |
117,327 |
||
CONSUMER STAPLES - 10.3% |
|||
Beverages - 3.7% |
|||
Anheuser-Busch InBev SA NV |
25,500 |
2,800 |
|
Dr. Pepper Snapple Group, Inc. |
155,611 |
8,979 |
|
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
CONSUMER STAPLES - continued |
|||
Beverages - continued |
|||
PepsiCo, Inc. |
136,800 |
$ 12,084 |
|
The Coca-Cola Co. |
367,910 |
15,051 |
|
|
38,914 |
||
Food & Staples Retailing - 2.6% |
|||
Alimentation Couche-Tard, Inc. Class B (sub. vtg.) |
131,500 |
3,570 |
|
Kroger Co. |
217,360 |
10,377 |
|
Rami Levi Chain Stores Hashikma Marketing 2006 Ltd. |
60,793 |
2,942 |
|
Walgreen Co. |
143,523 |
10,321 |
|
|
27,210 |
||
Food Products - 1.2% |
|||
Archer Daniels Midland Co. |
120,820 |
5,430 |
|
Bunge Ltd. |
36,660 |
2,849 |
|
Greencore Group PLC |
823,505 |
4,022 |
|
Hilton Food Group PLC |
74,631 |
646 |
|
|
12,947 |
||
Household Products - 0.0% |
|||
Svenska Cellulosa AB (SCA) (B Shares) |
20,900 |
582 |
|
Tobacco - 2.8% |
|||
British American Tobacco PLC (United Kingdom) |
212,157 |
12,846 |
|
Japan Tobacco, Inc. |
238,300 |
8,095 |
|
Lorillard, Inc. |
135,754 |
8,440 |
|
|
29,381 |
||
TOTAL CONSUMER STAPLES |
109,034 |
||
ENERGY - 9.5% |
|||
Energy Equipment & Services - 0.6% |
|||
National Oilwell Varco, Inc. |
70,886 |
5,803 |
|
Oil, Gas & Consumable Fuels - 8.9% |
|||
Access Midstream Partners LP |
114,871 |
7,236 |
|
Chevron Corp. |
181,690 |
22,310 |
|
ConocoPhillips Co. |
191,673 |
15,322 |
|
Emerald Oil, Inc. warrants 2/4/16 (a) |
16,536 |
0 |
|
EQT Midstream Partners LP |
61,300 |
5,035 |
|
Exxon Mobil Corp. |
202,188 |
20,326 |
|
MPLX LP |
106,108 |
6,065 |
|
Northern Oil & Gas, Inc. (a) |
231,694 |
3,533 |
|
Phillips 66 Partners LP |
72,745 |
4,405 |
|
PrairieSky Royalty Ltd. |
111,000 |
3,711 |
|
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
ENERGY - continued |
|||
Oil, Gas & Consumable Fuels - continued |
|||
Suncor Energy, Inc. |
134,380 |
$ 5,172 |
|
TAG Oil Ltd. (a) |
473,900 |
1,128 |
|
TAG Oil Ltd. (a)(f) |
15,900 |
38 |
|
|
94,281 |
||
TOTAL ENERGY |
100,084 |
||
FINANCIALS - 15.6% |
|||
Banks - 10.2% |
|||
Bank of America Corp. |
1,144,003 |
17,320 |
|
Citigroup, Inc. |
286,523 |
13,630 |
|
JPMorgan Chase & Co. |
445,993 |
24,784 |
|
Nordea Bank AB |
584,597 |
8,622 |
|
SunTrust Banks, Inc. |
139,900 |
5,361 |
|
U.S. Bancorp |
322,117 |
13,590 |
|
Wells Fargo & Co. |
495,190 |
25,146 |
|
|
108,453 |
||
Capital Markets - 1.2% |
|||
BlackRock, Inc. Class A |
14,719 |
4,488 |
|
Carlyle Group LP |
26,800 |
830 |
|
Fortress Investment Group LLC |
146,000 |
1,037 |
|
Monex Group, Inc. |
595,800 |
2,017 |
|
The Blackstone Group LP |
147,790 |
4,593 |
|
|
12,965 |
||
Consumer Finance - 1.0% |
|||
Capital One Financial Corp. |
130,482 |
10,294 |
|
Diversified Financial Services - 0.7% |
|||
McGraw Hill Financial, Inc. |
87,567 |
7,160 |
|
Insurance - 2.3% |
|||
Allied World Assurance Co. Holdings Ltd. |
203,364 |
7,626 |
|
Aspen Insurance Holdings Ltd. |
120,040 |
5,516 |
|
Reinsurance Group of America, Inc. |
45,740 |
3,575 |
|
The Travelers Companies, Inc. |
78,762 |
7,360 |
|
|
24,077 |
||
Thrifts & Mortgage Finance - 0.2% |
|||
WSFS Financial Corp. |
31,561 |
2,144 |
|
TOTAL FINANCIALS |
165,093 |
||
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
HEALTH CARE - 13.8% |
|||
Biotechnology - 2.6% |
|||
Amgen, Inc. |
143,637 |
$ 16,660 |
|
Gilead Sciences, Inc. (a) |
134,462 |
10,920 |
|
|
27,580 |
||
Health Care Equipment & Supplies - 1.5% |
|||
Covidien PLC |
138,300 |
10,111 |
|
The Cooper Companies, Inc. |
40,502 |
5,226 |
|
|
15,337 |
||
Health Care Providers & Services - 1.8% |
|||
Cardinal Health, Inc. |
135,842 |
9,595 |
|
McKesson Corp. |
52,232 |
9,905 |
|
|
19,500 |
||
Health Care Technology - 0.1% |
|||
CompuGroup Medical AG |
46,600 |
1,257 |
|
Life Sciences Tools & Services - 0.9% |
|||
Agilent Technologies, Inc. |
106,200 |
6,047 |
|
Lonza Group AG |
28,411 |
3,054 |
|
|
9,101 |
||
Pharmaceuticals - 6.9% |
|||
AbbVie, Inc. |
201,250 |
10,934 |
|
Astellas Pharma, Inc. |
284,700 |
3,663 |
|
Horizon Pharma, Inc. warrants 9/25/17 (a) |
109,700 |
1,072 |
|
Johnson & Johnson |
252,602 |
25,629 |
|
Merck & Co., Inc. |
315,600 |
18,261 |
|
Perrigo Co. PLC |
37,882 |
5,235 |
|
Teva Pharmaceutical Industries Ltd. sponsored ADR |
152,400 |
7,695 |
|
|
72,489 |
||
TOTAL HEALTH CARE |
145,264 |
||
INDUSTRIALS - 8.6% |
|||
Aerospace & Defense - 2.9% |
|||
The Boeing Co. |
101,700 |
13,755 |
|
United Technologies Corp. |
150,401 |
17,480 |
|
|
31,235 |
||
Air Freight & Logistics - 0.9% |
|||
FedEx Corp. |
63,306 |
9,126 |
|
Airlines - 0.5% |
|||
Delta Air Lines, Inc. |
133,600 |
5,332 |
|
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
INDUSTRIALS - continued |
|||
Electrical Equipment - 0.3% |
|||
Generac Holdings, Inc. |
59,506 |
$ 2,897 |
|
Industrial Conglomerates - 1.9% |
|||
Danaher Corp. |
137,394 |
10,776 |
|
Roper Industries, Inc. |
64,596 |
9,152 |
|
|
19,928 |
||
Machinery - 0.3% |
|||
Manitowoc Co., Inc. |
118,803 |
3,214 |
|
Professional Services - 0.5% |
|||
Dun & Bradstreet Corp. |
53,766 |
5,551 |
|
Road & Rail - 1.3% |
|||
CSX Corp. |
99,662 |
2,930 |
|
Union Pacific Corp. |
54,815 |
10,923 |
|
|
13,853 |
||
TOTAL INDUSTRIALS |
91,136 |
||
INFORMATION TECHNOLOGY - 20.3% |
|||
Communications Equipment - 2.1% |
|||
Cisco Systems, Inc. |
451,979 |
11,128 |
|
QUALCOMM, Inc. |
137,878 |
11,092 |
|
|
22,220 |
||
Electronic Equipment & Components - 0.6% |
|||
TE Connectivity Ltd. |
114,443 |
6,805 |
|
Internet Software & Services - 2.4% |
|||
Google, Inc.: |
|
|
|
Class A (a) |
21,903 |
12,521 |
|
Class C (a) |
21,903 |
12,287 |
|
|
24,808 |
||
IT Services - 5.0% |
|||
Amdocs Ltd. |
115,580 |
5,562 |
|
ASAC II LP (i) |
298,480 |
4,256 |
|
Computer Sciences Corp. |
68,411 |
4,302 |
|
Fidelity National Information Services, Inc. |
161,998 |
8,772 |
|
MasterCard, Inc. Class A |
111,320 |
8,510 |
|
Total System Services, Inc. |
191,020 |
5,780 |
|
Visa, Inc. Class A |
49,276 |
10,586 |
|
Xerox Corp. |
373,303 |
4,610 |
|
|
52,378 |
||
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
INFORMATION TECHNOLOGY - continued |
|||
Semiconductors & Semiconductor Equipment - 0.2% |
|||
MediaTek, Inc. |
153,000 |
$ 2,481 |
|
Software - 5.2% |
|||
Activision Blizzard, Inc. |
207,867 |
4,319 |
|
Comverse, Inc. (a) |
113,340 |
2,805 |
|
Electronic Arts, Inc. (a) |
109,986 |
3,864 |
|
Microsoft Corp. |
639,263 |
26,171 |
|
Oracle Corp. |
426,928 |
17,940 |
|
|
55,099 |
||
Technology Hardware, Storage & Peripherals - 4.8% |
|||
Apple, Inc. |
66,232 |
41,923 |
|
EMC Corp. |
328,500 |
8,725 |
|
|
50,648 |
||
TOTAL INFORMATION TECHNOLOGY |
214,439 |
||
MATERIALS - 2.5% |
|||
Chemicals - 2.3% |
|||
Cabot Corp. |
71,756 |
4,058 |
|
Eastman Chemical Co. |
42,347 |
3,738 |
|
LyondellBasell Industries NV Class A |
63,926 |
6,365 |
|
Potash Corp. of Saskatchewan, Inc. (e) |
186,600 |
6,772 |
|
W.R. Grace & Co. (a) |
37,809 |
3,481 |
|
|
24,414 |
||
Containers & Packaging - 0.2% |
|||
Nampak Ltd. |
586,428 |
2,029 |
|
TOTAL MATERIALS |
26,443 |
||
TELECOMMUNICATION SERVICES - 2.6% |
|||
Diversified Telecommunication Services - 2.1% |
|||
Verizon Communications, Inc. |
414,000 |
20,683 |
|
Verizon Communications, Inc. CDI |
35,521 |
1,772 |
|
|
22,455 |
||
Wireless Telecommunication Services - 0.5% |
|||
T-Mobile U.S., Inc. (a) |
31,600 |
1,085 |
|
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
TELECOMMUNICATION SERVICES - continued |
|||
Wireless Telecommunication Services - continued |
|||
Telephone & Data Systems, Inc. |
58,858 |
$ 1,631 |
|
Vodafone Group PLC |
736,711 |
2,583 |
|
|
5,299 |
||
TOTAL TELECOMMUNICATION SERVICES |
27,754 |
||
UTILITIES - 2.0% |
|||
Electric Utilities - 1.0% |
|||
Edison International |
85,700 |
4,725 |
|
ITC Holdings Corp. |
68,814 |
2,519 |
|
Xcel Energy, Inc. |
119,364 |
3,672 |
|
|
10,916 |
||
Multi-Utilities - 1.0% |
|||
CMS Energy Corp. |
168,450 |
5,011 |
|
Sempra Energy |
50,614 |
5,079 |
|
|
10,090 |
||
TOTAL UTILITIES |
21,006 |
||
TOTAL COMMON STOCKS (Cost $843,034) |
|
||
Convertible Preferred Stocks - 0.1% |
|||
|
|
|
|
INFORMATION TECHNOLOGY - 0.1% |
|||
Software - 0.1% |
|||
Mobileye NV Series F (i) (Cost $1,144) |
32,777 |
|
Convertible Bonds - 0.1% |
||||
|
Principal Amount (000s) (d) |
|
||
ENERGY - 0.0% |
||||
Oil, Gas & Consumable Fuels - 0.0% |
||||
Amyris, Inc. 3% 2/27/17 |
|
$ 791 |
645 |
|
Convertible Bonds - continued |
||||
|
Principal Amount (000s) (d) |
Value (000s) |
||
INDUSTRIALS - 0.1% |
||||
Building Products - 0.1% |
||||
Aspen Aerogels, Inc. 8% 6/1/16 (i) |
|
$ 487 |
$ 712 |
|
TOTAL CONVERTIBLE BONDS (Cost $1,278) |
|
|||
U.S. Treasury Obligations - 0.1% |
||||
|
||||
U.S. Treasury Bills, yield at date of purchase 0.03% 8/21/14 (h) |
|
520 |
|
Preferred Securities - 0.1% |
|||
|
|
|
|
FINANCIALS - 0.1% |
|||
Diversified Financial Services - 0.1% |
Baggot Securities Ltd. 10.24% (f)(g) (Cost $1,305) |
EUR |
850 |
|
Money Market Funds - 3.3% |
|||
Shares |
|
||
Fidelity Cash Central Fund, 0.10% (b) |
30,753,219 |
30,753 |
|
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) |
3,726,315 |
3,726 |
|
TOTAL MONEY MARKET FUNDS (Cost $34,479) |
|
||
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $881,760) |
1,056,380 |
||
NET OTHER ASSETS (LIABILITIES) - 0.0% |
207 |
||
NET ASSETS - 100% |
$ 1,056,587 |
Futures Contracts |
|||||
|
Expiration Date |
Underlying Face Amount at Value (000s) |
Unrealized Appreciation/ |
||
Purchased |
|||||
Equity Index Contracts |
|||||
113 CME E-mini S&P 500 Index Contracts (United States) |
June 2014 |
$ 10,856 |
$ 343 |
|
The face value of futures purchased as a percentage of net assets is 1% |
Currency Abbreviations |
||
EUR |
- |
European Monetary Unit |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Amount is stated in United States dollars unless otherwise noted. |
(e) Security or a portion of the security is on loan at period end. |
(f) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $1,338,000 or 0.1% of net assets. |
(g) Security is perpetual in nature with no stated maturity date. |
(h) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At period end, the value of securities pledged amounted to $520,000. |
(i) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $6,112,000 or 0.6% of net assets. |
Additional information on each restricted holding is as follows: |
Security |
Acquisition Date |
Acquisition Cost (000s) |
ASAC II LP |
10/10/13 |
$ 2,985 |
Aspen Aerogels, Inc. 8% 6/1/16 |
6/1/11 - 12/31/13 |
$ 488 |
Mobileye NV Series F |
8/15/13 |
$ 1,144 |
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 |
$ 17 |
Fidelity Securities Lending Cash Central Fund |
63 |
Total |
$ 80 |
Other Information |
The following is a summary of the inputs used, as of May 31, 2014, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
||||
Description |
Total |
Level 1 |
Level 2 |
Level 3 |
Investments in Securities: |
||||
Equities: |
||||
Consumer Discretionary |
$ 117,327 |
$ 117,327 |
$ - |
$ - |
Consumer Staples |
109,034 |
85,293 |
23,741 |
- |
Energy |
100,084 |
100,084 |
- |
- |
Financials |
165,093 |
163,076 |
2,017 |
- |
Health Care |
145,264 |
140,529 |
4,735 |
- |
Industrials |
91,136 |
91,136 |
- |
- |
Information Technology |
215,583 |
210,183 |
- |
5,400 |
Materials |
26,443 |
26,443 |
- |
- |
Telecommunication Services |
27,754 |
25,171 |
2,583 |
- |
Utilities |
21,006 |
21,006 |
- |
- |
Corporate Bonds |
1,357 |
- |
645 |
712 |
U.S. Government and Government Agency Obligations |
520 |
- |
520 |
- |
Preferred Securities |
1,300 |
- |
1,300 |
- |
Money Market Funds |
34,479 |
34,479 |
- |
- |
Total Investments in Securities: |
$ 1,056,380 |
$ 1,014,727 |
$ 35,541 |
$ 6,112 |
Derivative Instruments: |
||||
Assets |
||||
Futures Contracts |
$ 343 |
$ 343 |
$ - |
$ - |
Value of Derivative Instruments |
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of May 31, 2014. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements. |
Primary Risk Exposure / |
Value |
|
|
Asset |
Liability |
Equity Risk |
||
Futures Contracts (a) |
$ 343 |
$ - |
Total Value of Derivatives |
$ 343 |
$ - |
(a) Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. Only the period end receivable or payable for daily variation margin and net unrealized appreciation (depreciation) are presented in the Statement of Assets and Liabilities. |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited): |
United States of America |
86.2% |
Canada |
2.2% |
Ireland |
2.0% |
United Kingdom |
1.9% |
Switzerland |
1.6% |
Japan |
1.4% |
Israel |
1.0% |
Others (Individually Less Than 1%) |
3.7% |
|
100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Amounts in thousands (except per-share amounts) |
May 31, 2014 (Unaudited) |
|
|
|
|
Assets |
|
|
Investment in securities, at value (including securities loaned of $3,533) - See accompanying schedule: Unaffiliated issuers (cost $847,281) |
$ 1,021,901 |
|
Fidelity Central Funds (cost $34,479) |
34,479 |
|
Total Investments (cost $881,760) |
|
$ 1,056,380 |
Cash |
|
8 |
Receivable for investments sold |
|
21,274 |
Receivable for fund shares sold |
|
861 |
Dividends receivable |
|
2,116 |
Interest receivable |
|
16 |
Distributions receivable from Fidelity Central Funds |
|
4 |
Receivable for daily variation margin for derivative instruments |
|
20 |
Other receivables |
|
3 |
Total assets |
|
1,080,682 |
|
|
|
Liabilities |
|
|
Payable for investments purchased |
$ 18,335 |
|
Payable for fund shares redeemed |
1,070 |
|
Accrued management fee |
326 |
|
Distribution and service plan fees payable |
380 |
|
Other affiliated payables |
213 |
|
Other payables and accrued expenses |
45 |
|
Collateral on securities loaned, at value |
3,726 |
|
Total liabilities |
|
24,095 |
|
|
|
Net Assets |
|
$ 1,056,587 |
Net Assets consist of: |
|
|
Paid in capital |
|
$ 789,144 |
Undistributed net investment income |
|
5,678 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions |
|
86,808 |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies |
|
174,957 |
Net Assets |
|
$ 1,056,587 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Amounts in thousands (except per-share amounts) |
May 31, 2014 (Unaudited) |
|
|
|
|
Calculation of Maximum Offering Price Class A: |
|
$ 18.18 |
|
|
|
Maximum offering price per share (100/94.25 of $18.18) |
|
$ 19.29 |
Class T: |
|
$ 18.11 |
|
|
|
Maximum offering price per share (100/96.50 of $18.11) |
|
$ 18.77 |
Class B: |
|
$ 17.51 |
|
|
|
Class C: |
|
$ 17.47 |
|
|
|
Institutional Class: |
|
$ 18.87 |
|
|
|
Class Z: |
|
$ 18.87 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Amounts in thousands |
Six months ended May 31, 2014 |
|
|
|
|
Investment Income |
|
|
Dividends |
|
$ 9,953 |
Special dividends |
|
2,353 |
Interest |
|
35 |
Income from Fidelity Central Funds |
|
80 |
Total income |
|
12,421 |
|
|
|
Expenses |
|
|
Management fee |
$ 2,856 |
|
Performance adjustment |
(916) |
|
Transfer agent fees |
1,102 |
|
Distribution and service plan fees |
2,268 |
|
Accounting and security lending fees |
172 |
|
Custodian fees and expenses |
69 |
|
Independent trustees' compensation |
2 |
|
Registration fees |
82 |
|
Audit |
32 |
|
Legal |
3 |
|
Miscellaneous |
4 |
|
Total expenses before reductions |
5,674 |
|
Expense reductions |
(11) |
5,663 |
Net investment income (loss) |
|
6,758 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: |
|
|
Investment securities: |
|
|
Unaffiliated issuers |
90,517 |
|
Foreign currency transactions |
(58) |
|
Futures contracts |
863 |
|
Total net realized gain (loss) |
|
91,322 |
Change in net unrealized appreciation (depreciation) on: Investment securities |
(37,988) |
|
Assets and liabilities in foreign currencies |
(6) |
|
Futures contracts |
343 |
|
Total change in net unrealized appreciation (depreciation) |
|
(37,651) |
Net gain (loss) |
|
53,671 |
Net increase (decrease) in net assets resulting from operations |
|
$ 60,429 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Amounts in thousands |
Six months ended May 31, 2014
|
Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) |
$ 6,758 |
$ 6,658 |
Net realized gain (loss) |
91,322 |
96,937 |
Change in net unrealized appreciation (depreciation) |
(37,651) |
145,253 |
Net increase (decrease) in net assets resulting |
60,429 |
248,848 |
Distributions to shareholders from net investment income |
(4,242) |
(5,093) |
Distributions to shareholders from net realized gain |
(420) |
- |
Total distributions |
(4,662) |
(5,093) |
Share transactions - net increase (decrease) |
(59,716) |
(30,529) |
Total increase (decrease) in net assets |
(3,949) |
213,226 |
|
|
|
Net Assets |
|
|
Beginning of period |
1,060,536 |
847,310 |
End of period (including undistributed net investment income of $5,678 and undistributed net investment income of $3,162, respectively) |
$ 1,056,587 |
$ 1,060,536 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 17.23 |
$ 13.33 |
$ 11.45 |
$ 11.58 |
$ 9.95 |
$ 6.64 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E |
.13 K |
.13 |
.07 |
.02 |
.03H |
.04 |
Net realized and unrealized gain (loss) |
.92 |
3.87 |
1.81 |
(.09) |
1.66 |
3.41 |
Total from investment operations |
1.05 |
4.00 |
1.88 |
(.07) |
1.69 |
3.45 |
Distributions from net investment income |
(.09) |
(.10) |
- |
- |
(.02) |
(.14) |
Distributions from net realized gain |
(.01) |
- |
- |
(.06) |
(.05) |
- |
Total distributions |
(.10) |
(.10) |
- |
(.06) |
(.06)J |
(.14) |
Net asset value, end of period |
$ 18.18 |
$ 17.23 |
$ 13.33 |
$ 11.45 |
$ 11.58 |
$ 9.95 |
Total ReturnB, C, D |
6.12% |
30.26% |
16.42% |
(.63)% |
17.09% |
52.97% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions |
.91%A |
.98% |
1.21% |
1.36% |
1.36% |
1.08% |
Expenses net of fee waivers, if any |
.91%A |
.98% |
1.21% |
1.33% |
1.25% |
1.08% |
Expenses net of all reductions |
.91%A |
.97% |
1.20% |
1.33% |
1.24% |
1.08% |
Net investment income (loss) |
1.48%A,K |
.87% |
.53% |
.16% |
.24%H |
.56% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 369 |
$ 369 |
$ 301 |
$ 295 |
$ 285 |
$ 240 |
Portfolio turnover rateG |
141%A |
70% |
64% |
68% |
80% |
88% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .10%. IExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. JTotal distributions of $.06 per share is comprised of distributions from net investment income of $.018 and distributions from net realized gain of $.045 per share. KInvestment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.03%. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 17.15 |
$ 13.26 |
$ 11.42 |
$ 11.55 |
$ 9.92 |
$ 6.60 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E |
.11 L |
.10 |
.04 |
(.01) |
-H,J |
.03 |
Net realized and unrealized gain (loss) |
.91 |
3.86 |
1.80 |
(.09) |
1.67 |
3.39 |
Total from investment operations |
1.02 |
3.96 |
1.84 |
(.10) |
1.67 |
3.42 |
Distributions from net investment income |
(.06) |
(.07) |
- |
- |
- |
(.10) |
Distributions from net realized gain |
(.01) |
- |
- |
(.03) |
(.04) |
- |
Total distributions |
(.06)K |
(.07) |
- |
(.03) |
(.04) |
(.10) |
Net asset value, end of period |
$ 18.11 |
$ 17.15 |
$ 13.26 |
$ 11.42 |
$ 11.55 |
$ 9.92 |
Total ReturnB, C, D |
5.99% |
30.05% |
16.11% |
(.90)% |
16.88% |
52.60% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions |
1.15%A |
1.20% |
1.42% |
1.57% |
1.57% |
1.31% |
Expenses net of fee waivers, if any |
1.15%A |
1.20% |
1.42% |
1.55% |
1.50% |
1.31% |
Expenses net of all reductions |
1.14%A |
1.19% |
1.42% |
1.54% |
1.49% |
1.30% |
Net investment income (loss) |
1.25%A,L |
.65% |
.32% |
(.06)% |
(.01)%H |
.34% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 385 |
$ 375 |
$ 304 |
$ 294 |
$ 322 |
$ 305 |
Portfolio turnover rateG |
141%A |
70% |
64% |
68% |
80% |
88% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.15)%. IExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. JAmount represents less than $.01 per share. KTotal distributions of $.06 per share is comprised of distributions from net investment income of $.055 and distributions from net realized gain of $.007 per share. LInvestment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .80%. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 16.57 |
$ 12.82 |
$ 11.11 |
$ 11.26 |
$ 9.68 |
$ 6.42 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E |
.05J |
.01 |
(.03) |
(.07) |
(.05) H |
(.01) |
Net realized and unrealized gain (loss) |
.90 |
3.74 |
1.74 |
(.08) |
1.63 |
3.31 |
Total from investment operations |
.95 |
3.75 |
1.71 |
(.15) |
1.58 |
3.30 |
Distributions from net investment income |
- |
- |
- |
- |
- |
(.04) |
Distributions from net realized gain |
(.01) |
- |
- |
- |
- |
- |
Total distributions |
(.01) |
- |
- |
- |
- |
(.04) |
Net asset value, end of period |
$ 17.51 |
$ 16.57 |
$ 12.82 |
$ 11.11 |
$ 11.26 |
$ 9.68 |
Total ReturnB, C, D |
5.72% |
29.25% |
15.39% |
(1.33)% |
16.32% |
51.61% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions |
1.75%A |
1.79% |
1.99% |
2.14% |
2.13% |
1.81% |
Expenses net of fee waivers, if any |
1.75%A |
1.79% |
1.99% |
2.09% |
2.00% |
1.81% |
Expenses net of all reductions |
1.74%A |
1.78% |
1.99% |
2.09% |
2.00% |
1.80% |
Net investment income (loss) |
.65%A,J |
.06% |
(.25)% |
(.61)% |
(.51)%H |
(.17)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 12 |
$ 15 |
$ 17 |
$ 22 |
$ 43 |
$ 69 |
Portfolio turnover rateG |
141%A |
70% |
64% |
68% |
80% |
88% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.66)%. IExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. JInvestment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .20%. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 16.54 |
$ 12.79 |
$ 11.07 |
$ 11.22 |
$ 9.65 |
$ 6.41 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E |
.06K |
.02 |
(.02) |
(.07) |
(.05) H |
(.01) |
Net realized and unrealized gain (loss) |
.88 |
3.73 |
1.74 |
(.08) |
1.62 |
3.30 |
Total from investment operations |
.94 |
3.75 |
1.72 |
(.15) |
1.57 |
3.29 |
Distributions from net investment income |
- |
-J |
- |
- |
- |
(.05) |
Distributions from net realized gain |
(.01) |
- |
- |
- |
-J |
- |
Total distributions |
(.01) |
-J |
- |
- |
-J |
(.05) |
Net asset value, end of period |
$ 17.47 |
$ 16.54 |
$ 12.79 |
$ 11.07 |
$ 11.22 |
$ 9.65 |
Total ReturnB, C, D |
5.67% |
29.36% |
15.54% |
(1.34)% |
16.31% |
51.79% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions |
1.66%A |
1.72% |
1.94% |
2.08% |
2.08% |
1.81% |
Expenses net of fee waivers, if any |
1.66%A |
1.72% |
1.94% |
2.06% |
2.00% |
1.81% |
Expenses net of all reductions |
1.66%A |
1.71% |
1.93% |
2.05% |
1.99% |
1.81% |
Net investment income (loss) |
.73%A,K |
.13% |
(.20)% |
(.57)% |
(.51)%H |
(.17)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 167 |
$ 160 |
$ 123 |
$ 124 |
$ 129 |
$ 125 |
Portfolio turnover rateG |
141%A |
70% |
64% |
68% |
80% |
88% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.65)%. IExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. JAmount represents less than $.01 per share. K Investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .28%. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 17.91 |
$ 13.86 |
$ 11.88 |
$ 12.00 |
$ 10.31 |
$ 6.73 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D |
.16I |
.18 |
.11 |
.06 |
.05G |
.08 |
Net realized and unrealized gain (loss) |
.95 |
4.02 |
1.87 |
(.09) |
1.74 |
3.52 |
Total from investment operations |
1.11 |
4.20 |
1.98 |
(.03) |
1.79 |
3.60 |
Distributions from net investment income |
(.14) |
(.15) |
- |
(.02) |
(.06) |
(.02) |
Distributions from net realized gain |
(.01) |
- |
- |
(.07) |
(.04) |
- |
Total distributions |
(.15) |
(.15) |
- |
(.09) |
(.10) |
(.02) |
Net asset value, end of period |
$ 18.87 |
$ 17.91 |
$ 13.86 |
$ 11.88 |
$ 12.00 |
$ 10.31 |
Total ReturnB, C |
6.26% |
30.63% |
16.67% |
(.33)% |
17.47% |
53.57% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions |
.66%A |
.70% |
.91% |
1.04% |
1.03% |
.70% |
Expenses net of fee waivers, if any |
.66%A |
.70% |
.91% |
1.03% |
1.00% |
.70% |
Expenses net of all reductions |
.66%A |
.69% |
.90% |
1.02% |
.99% |
.69% |
Net investment income (loss) |
1.74%A,I |
1.15% |
.83% |
.46% |
.49%G |
.94% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 123 |
$ 135 |
$ 103 |
$ 83 |
$ 73 |
$ 66 |
Portfolio turnover rateF |
141%A |
70% |
64% |
68% |
80% |
88% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DCalculated based on average shares outstanding during the period. EFees 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. FAmount does not include the portfolio activity of any underlying Fidelity Central Funds. GInvestment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .35%. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. IInvestment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.28%. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Year ended |
|
(Unaudited) |
2013 G |
Selected Per-Share Data |
|
|
Net asset value, beginning of period |
$ 17.92 |
$ 16.59 |
Income from Investment Operations |
|
|
Net investment income (loss) D |
.17J |
.06 |
Net realized and unrealized gain (loss) |
.95 |
1.27 |
Total from investment operations |
1.12 |
1.33 |
Distributions from net investment income |
(.17) |
- |
Distributions from net realized gain |
(.01) |
- |
Total distributions |
(.17)I |
- |
Net asset value, end of period |
$ 18.87 |
$ 17.92 |
Total ReturnB, C |
6.35% |
8.02% |
Ratios to Average Net Assets E, H |
|
|
Expenses before reductions |
.49%A |
.54%A |
Expenses net of fee waivers, if any |
.49%A |
.54%A |
Expenses net of all reductions |
.49%A |
.52%A |
Net investment income (loss) |
1.91%A,J |
1.26% |
Supplemental Data |
|
|
Net assets, end of period (000 omitted) |
$ - |
$ 7 |
Portfolio turnover rateF |
141%A |
70% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DCalculated based on average shares outstanding during the period. EFees 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. FAmount does not include the portfolio activity of any underlying Fidelity Central Funds. GFor the period August 13, 2013 (commencement of sale of shares) to November 30, 2013. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. ITotal distributions of $.17 per share is comprised of distributions from net investment income of $.166 and distributions from net realized gain of $.007 per share. JInvestment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.45%. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
For the period ended May 31, 2014 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor® Dividend Growth Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, Institutional Class and Class Z shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds 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:
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds, preferred securities and U.S. government and government agency obligations are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded and are categorized as Level 1 in the hierarchy. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of May 31, 2014, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), market discount, partnerships, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation |
$ 184,521 |
Gross unrealized depreciation |
(13,324) |
Net unrealized appreciation (depreciation) on securities and other investments |
$ 171,197 |
Tax cost |
$ 885,183 |
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
Semiannual Report
4. Derivative Instruments - continued
Risk Exposures and the Use of Derivative Instruments - continued
The Fund used derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
The Fund's use of derivatives increased or decreased its exposure to the following risk:
Equity Risk |
Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Counterparty credit risk related to exchange-traded futures contracts may be mitigated by the protection provided by the exchange on which they trade.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent daily payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable, if any, is included in daily variation margin for derivative instruments in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
4. Derivative Instruments - continued
Futures Contracts - continued
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts." The underlying face amount at value reflects each contract's exposure to the underlying instrument or index at period end and is representative of volume of activity during the period. Securities deposited to meet initial margin requirements are identified in the Schedule of Investments.
During the period the Fund recognized net realized gain (loss) of eight hundred and sixty three dollars and a change in net unrealized appreciation (depreciation) of three hundred and forty three dollars related to its investment in futures contracts. These amounts are included in the Statement of Operations.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $713,163 and $792,684, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of the Institutional Class of the Fund as compared to its benchmark index, the S&P 500® Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .37% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
|
Distribution |
Service |
Total Fees |
Retained |
Class A |
-% |
.25% |
$ 454 |
$ 9 |
Class T |
.25% |
.25% |
937 |
7 |
Class B |
.75% |
.25% |
67 |
51 |
Class C |
.75% |
.25% |
810 |
69 |
|
|
|
$ 2,268 |
$ 136 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
|
Retained |
Class A |
$ 45 |
Class T |
10 |
Class B* |
4 |
Class C* |
3 |
|
$ 62 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund, except for Class Z. FIIOC receives an asset-based fee of Class Z's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
|
Amount |
% of |
Class A |
$ 399 |
.22 |
Class T |
378 |
.20 |
Class B |
20 |
.30 |
Class C |
177 |
.22 |
Institutional Class |
126 |
.22 |
Class Z |
2 |
.05 |
|
$ 1,102 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $15 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $1 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Semiannual Report
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. At period end, there were no security loans outstanding with FCM. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $63, including $3 from securities loaned to FCM.
9. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $11 for the period.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
|
Six months ended |
Year ended |
From net investment income |
|
|
Class A |
$ 1,902 |
$ 2,287 |
Class T |
1,201 |
1,666 |
Class C |
- |
38 |
Institutional Class |
1,071 |
1,102 |
Class Z |
68 |
- |
Total |
$ 4,242 |
$ 5,093 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
10. Distributions to Shareholders - continued
|
Six months ended |
Year ended |
From net realized gain |
|
|
Class A |
$ 147 |
$ - |
Class T |
152 |
- |
Class B |
6 |
- |
Class C |
68 |
- |
Institutional Class |
44 |
- |
Class Z |
3 |
- |
Total |
$ 420 |
$ - |
A Distributions for Class Z are for the period August 13, 2013 (commencement of sale of shares) to November 30, 2013.
11. Share Transactions.
Transactions for each class of shares were as follows:
|
Shares |
Dollars |
||
|
Six months ended May 31, |
Year ended |
Six months ended May 31, |
Year ended |
Class A |
|
|
|
|
Shares sold |
1,400 |
3,250 |
$ 24,360 |
$ 49,173 |
Reinvestment of distributions |
107 |
152 |
1,806 |
2,006 |
Shares redeemed |
(2,583) |
(4,572) |
(45,054) |
(69,790) |
Net increase (decrease) |
(1,076) |
(1,170) |
$ (18,888) |
$ (18,611) |
Class T |
|
|
|
|
Shares sold |
1,991 |
4,665 |
$ 34,556 |
$ 69,969 |
Reinvestment of distributions |
77 |
122 |
1,302 |
1,600 |
Shares redeemed |
(2,680) |
(5,859) |
(46,453) |
(87,860) |
Net increase (decrease) |
(612) |
(1,072) |
$ (10,595) |
$ (16,291) |
Class B |
|
|
|
|
Shares sold |
23 |
81 |
$ 374 |
$ 1,199 |
Reinvestment of distributions |
0 * |
- |
5 |
- |
Shares redeemed |
(202) |
(486) |
(3,384) |
(7,004) |
Net increase (decrease) |
(179) |
(405) |
$ (3,005) |
$ (5,805) |
Class C |
|
|
|
|
Shares sold |
581 |
1,435 |
$ 9,731 |
$ 21,000 |
Reinvestment of distributions |
3 |
3 |
58 |
32 |
Shares redeemed |
(669) |
(1,415) |
(11,239) |
(20,479) |
Net increase (decrease) |
(85) |
23 |
$ (1,450) |
$ 553 |
Institutional Class |
|
|
|
|
Shares sold |
896 |
1,599 |
$ 16,196 |
$ 25,325 |
Reinvestment of distributions |
59 |
75 |
1,027 |
1,032 |
Shares redeemed |
(2,009) |
(1,526) |
(35,555) |
(24,057) |
Net increase (decrease) |
(1,054) |
148 |
$ (18,332) |
$ 2,300 |
Semiannual Report
11. Share Transactions - continued
|
Shares |
Dollars |
||
|
Six months ended May 31, |
Year ended |
Six months ended May 31, |
Year ended |
Class Z |
|
|
|
|
Shares sold |
23 |
420 |
$ 420 |
$ 7,441 |
Reinvestment of distributions |
4 |
- |
71 |
- |
Shares redeemed |
(434) |
(7) |
(7,937) |
(116) |
Net increase (decrease) |
(407) |
413 |
$ (7,446) |
$ 7,325 |
A Share transactions for Class Z are for the period August 13, 2013 (commencement of sale of shares) to November 30, 2013.
* Amount represents less than 1,000 shares.
12. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
State Street Bank and Trust Company
Quincy, MA
(Fidelity Investment logo)(registered trademark)
ADGFI-USAN-0714 1.786780.111
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Dividend Growth
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
May 31, 2014
(Fidelity Cover Art)
Shareholder Expense Example |
An example of shareholder expenses. |
|
Investment Changes |
A summary of major shifts in the fund's investments over the past six months. |
|
Investments |
A complete list of the fund's investments with their market values. |
|
Financial Statements |
Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
|
Notes |
Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (December 1, 2013 to May 31, 2014).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
|
Annualized |
Beginning |
Ending |
Expenses Paid |
Class A |
.91% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,061.20 |
$ 4.68 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,020.39 |
$ 4.58 |
Class T |
1.15% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,059.90 |
$ 5.91 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,019.20 |
$ 5.79 |
Class B |
1.75% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,057.20 |
$ 8.98 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,016.21 |
$ 8.80 |
Class C |
1.66% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,056.70 |
$ 8.51 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,016.65 |
$ 8.35 |
Institutional Class |
.66% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,062.60 |
$ 3.39 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,021.64 |
$ 3.33 |
Class Z |
.49% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,063.50 |
$ 2.52 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,022.49 |
$ 2.47 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
Semiannual Report
Top Ten Stocks as of May 31, 2014 |
||
|
% of fund's |
% of fund's net assets |
Apple, Inc. |
4.0 |
3.2 |
Microsoft Corp. |
2.5 |
1.8 |
Johnson & Johnson |
2.4 |
0.8 |
Wells Fargo & Co. |
2.4 |
1.4 |
JPMorgan Chase & Co. |
2.3 |
1.8 |
Chevron Corp. |
2.1 |
0.0 |
Verizon Communications, Inc. |
1.9 |
0.0 |
Exxon Mobil Corp. |
1.9 |
0.0 |
Merck & Co., Inc. |
1.7 |
0.0 |
Oracle Corp. |
1.7 |
0.8 |
|
22.9 |
|
Top Five Market Sectors as of May 31, 2014 |
||
|
% of fund's |
% of fund's net assets |
Information Technology |
20.4 |
17.9 |
Financials |
15.7 |
15.5 |
Health Care |
13.8 |
13.4 |
Consumer Discretionary |
11.1 |
14.2 |
Consumer Staples |
10.3 |
10.1 |
Asset Allocation (% of fund's net assets) |
|||||||
As of May 31, 2014* |
As of November 30, 2013** |
||||||
Stocks and |
|
Stocks 98.6% |
|
||||
Convertible |
|
Convertible |
|
||||
Other Investments 0.1% |
|
Other Investments 0.0% |
|
||||
Short-Term |
|
Short-Term |
|
||||
* Foreign investments |
13.8% |
|
** Foreign investments |
18.1% |
|
Semiannual Report
Showing Percentage of Net Assets
Common Stocks - 96.3% |
|||
Shares |
Value (000s) |
||
CONSUMER DISCRETIONARY - 11.1% |
|||
Auto Components - 0.8% |
|||
Johnson Controls, Inc. |
174,917 |
$ 8,459 |
|
Diversified Consumer Services - 0.5% |
|||
H&R Block, Inc. |
193,564 |
5,764 |
|
Hotels, Restaurants & Leisure - 2.2% |
|||
ARAMARK Holdings Corp. |
205,000 |
5,408 |
|
Bloomin' Brands, Inc. (a) |
19,763 |
412 |
|
Brinker International, Inc. |
152,028 |
7,548 |
|
Darden Restaurants, Inc. |
92,700 |
4,646 |
|
Sonic Corp. (a) |
84,206 |
1,751 |
|
Wyndham Worldwide Corp. |
42,252 |
3,124 |
|
|
22,889 |
||
Household Durables - 0.5% |
|||
Taylor Wimpey PLC |
2,815,664 |
5,111 |
|
Media - 4.1% |
|||
Altice S.A. |
44,800 |
3,255 |
|
Atresmedia Corporacion de Medios de Comunicacion SA |
232,299 |
3,654 |
|
CBS Corp. Class B |
120,702 |
7,195 |
|
Comcast Corp. Class A |
310,925 |
16,230 |
|
DISH Network Corp. Class A (a) |
32,900 |
1,930 |
|
MDC Partners, Inc. Class A (sub. vtg.) |
132,201 |
2,779 |
|
Time Warner, Inc. |
119,881 |
8,371 |
|
|
43,414 |
||
Specialty Retail - 1.8% |
|||
AutoZone, Inc. (a) |
16,600 |
8,840 |
|
Foot Locker, Inc. |
105,791 |
5,097 |
|
GameStop Corp. Class A |
129,200 |
4,890 |
|
Staples, Inc. |
13,411 |
151 |
|
|
18,978 |
||
Textiles, Apparel & Luxury Goods - 1.2% |
|||
NIKE, Inc. Class B |
78,185 |
6,013 |
|
VF Corp. |
106,300 |
6,699 |
|
|
12,712 |
||
TOTAL CONSUMER DISCRETIONARY |
117,327 |
||
CONSUMER STAPLES - 10.3% |
|||
Beverages - 3.7% |
|||
Anheuser-Busch InBev SA NV |
25,500 |
2,800 |
|
Dr. Pepper Snapple Group, Inc. |
155,611 |
8,979 |
|
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
CONSUMER STAPLES - continued |
|||
Beverages - continued |
|||
PepsiCo, Inc. |
136,800 |
$ 12,084 |
|
The Coca-Cola Co. |
367,910 |
15,051 |
|
|
38,914 |
||
Food & Staples Retailing - 2.6% |
|||
Alimentation Couche-Tard, Inc. Class B (sub. vtg.) |
131,500 |
3,570 |
|
Kroger Co. |
217,360 |
10,377 |
|
Rami Levi Chain Stores Hashikma Marketing 2006 Ltd. |
60,793 |
2,942 |
|
Walgreen Co. |
143,523 |
10,321 |
|
|
27,210 |
||
Food Products - 1.2% |
|||
Archer Daniels Midland Co. |
120,820 |
5,430 |
|
Bunge Ltd. |
36,660 |
2,849 |
|
Greencore Group PLC |
823,505 |
4,022 |
|
Hilton Food Group PLC |
74,631 |
646 |
|
|
12,947 |
||
Household Products - 0.0% |
|||
Svenska Cellulosa AB (SCA) (B Shares) |
20,900 |
582 |
|
Tobacco - 2.8% |
|||
British American Tobacco PLC (United Kingdom) |
212,157 |
12,846 |
|
Japan Tobacco, Inc. |
238,300 |
8,095 |
|
Lorillard, Inc. |
135,754 |
8,440 |
|
|
29,381 |
||
TOTAL CONSUMER STAPLES |
109,034 |
||
ENERGY - 9.5% |
|||
Energy Equipment & Services - 0.6% |
|||
National Oilwell Varco, Inc. |
70,886 |
5,803 |
|
Oil, Gas & Consumable Fuels - 8.9% |
|||
Access Midstream Partners LP |
114,871 |
7,236 |
|
Chevron Corp. |
181,690 |
22,310 |
|
ConocoPhillips Co. |
191,673 |
15,322 |
|
Emerald Oil, Inc. warrants 2/4/16 (a) |
16,536 |
0 |
|
EQT Midstream Partners LP |
61,300 |
5,035 |
|
Exxon Mobil Corp. |
202,188 |
20,326 |
|
MPLX LP |
106,108 |
6,065 |
|
Northern Oil & Gas, Inc. (a) |
231,694 |
3,533 |
|
Phillips 66 Partners LP |
72,745 |
4,405 |
|
PrairieSky Royalty Ltd. |
111,000 |
3,711 |
|
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
ENERGY - continued |
|||
Oil, Gas & Consumable Fuels - continued |
|||
Suncor Energy, Inc. |
134,380 |
$ 5,172 |
|
TAG Oil Ltd. (a) |
473,900 |
1,128 |
|
TAG Oil Ltd. (a)(f) |
15,900 |
38 |
|
|
94,281 |
||
TOTAL ENERGY |
100,084 |
||
FINANCIALS - 15.6% |
|||
Banks - 10.2% |
|||
Bank of America Corp. |
1,144,003 |
17,320 |
|
Citigroup, Inc. |
286,523 |
13,630 |
|
JPMorgan Chase & Co. |
445,993 |
24,784 |
|
Nordea Bank AB |
584,597 |
8,622 |
|
SunTrust Banks, Inc. |
139,900 |
5,361 |
|
U.S. Bancorp |
322,117 |
13,590 |
|
Wells Fargo & Co. |
495,190 |
25,146 |
|
|
108,453 |
||
Capital Markets - 1.2% |
|||
BlackRock, Inc. Class A |
14,719 |
4,488 |
|
Carlyle Group LP |
26,800 |
830 |
|
Fortress Investment Group LLC |
146,000 |
1,037 |
|
Monex Group, Inc. |
595,800 |
2,017 |
|
The Blackstone Group LP |
147,790 |
4,593 |
|
|
12,965 |
||
Consumer Finance - 1.0% |
|||
Capital One Financial Corp. |
130,482 |
10,294 |
|
Diversified Financial Services - 0.7% |
|||
McGraw Hill Financial, Inc. |
87,567 |
7,160 |
|
Insurance - 2.3% |
|||
Allied World Assurance Co. Holdings Ltd. |
203,364 |
7,626 |
|
Aspen Insurance Holdings Ltd. |
120,040 |
5,516 |
|
Reinsurance Group of America, Inc. |
45,740 |
3,575 |
|
The Travelers Companies, Inc. |
78,762 |
7,360 |
|
|
24,077 |
||
Thrifts & Mortgage Finance - 0.2% |
|||
WSFS Financial Corp. |
31,561 |
2,144 |
|
TOTAL FINANCIALS |
165,093 |
||
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
HEALTH CARE - 13.8% |
|||
Biotechnology - 2.6% |
|||
Amgen, Inc. |
143,637 |
$ 16,660 |
|
Gilead Sciences, Inc. (a) |
134,462 |
10,920 |
|
|
27,580 |
||
Health Care Equipment & Supplies - 1.5% |
|||
Covidien PLC |
138,300 |
10,111 |
|
The Cooper Companies, Inc. |
40,502 |
5,226 |
|
|
15,337 |
||
Health Care Providers & Services - 1.8% |
|||
Cardinal Health, Inc. |
135,842 |
9,595 |
|
McKesson Corp. |
52,232 |
9,905 |
|
|
19,500 |
||
Health Care Technology - 0.1% |
|||
CompuGroup Medical AG |
46,600 |
1,257 |
|
Life Sciences Tools & Services - 0.9% |
|||
Agilent Technologies, Inc. |
106,200 |
6,047 |
|
Lonza Group AG |
28,411 |
3,054 |
|
|
9,101 |
||
Pharmaceuticals - 6.9% |
|||
AbbVie, Inc. |
201,250 |
10,934 |
|
Astellas Pharma, Inc. |
284,700 |
3,663 |
|
Horizon Pharma, Inc. warrants 9/25/17 (a) |
109,700 |
1,072 |
|
Johnson & Johnson |
252,602 |
25,629 |
|
Merck & Co., Inc. |
315,600 |
18,261 |
|
Perrigo Co. PLC |
37,882 |
5,235 |
|
Teva Pharmaceutical Industries Ltd. sponsored ADR |
152,400 |
7,695 |
|
|
72,489 |
||
TOTAL HEALTH CARE |
145,264 |
||
INDUSTRIALS - 8.6% |
|||
Aerospace & Defense - 2.9% |
|||
The Boeing Co. |
101,700 |
13,755 |
|
United Technologies Corp. |
150,401 |
17,480 |
|
|
31,235 |
||
Air Freight & Logistics - 0.9% |
|||
FedEx Corp. |
63,306 |
9,126 |
|
Airlines - 0.5% |
|||
Delta Air Lines, Inc. |
133,600 |
5,332 |
|
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
INDUSTRIALS - continued |
|||
Electrical Equipment - 0.3% |
|||
Generac Holdings, Inc. |
59,506 |
$ 2,897 |
|
Industrial Conglomerates - 1.9% |
|||
Danaher Corp. |
137,394 |
10,776 |
|
Roper Industries, Inc. |
64,596 |
9,152 |
|
|
19,928 |
||
Machinery - 0.3% |
|||
Manitowoc Co., Inc. |
118,803 |
3,214 |
|
Professional Services - 0.5% |
|||
Dun & Bradstreet Corp. |
53,766 |
5,551 |
|
Road & Rail - 1.3% |
|||
CSX Corp. |
99,662 |
2,930 |
|
Union Pacific Corp. |
54,815 |
10,923 |
|
|
13,853 |
||
TOTAL INDUSTRIALS |
91,136 |
||
INFORMATION TECHNOLOGY - 20.3% |
|||
Communications Equipment - 2.1% |
|||
Cisco Systems, Inc. |
451,979 |
11,128 |
|
QUALCOMM, Inc. |
137,878 |
11,092 |
|
|
22,220 |
||
Electronic Equipment & Components - 0.6% |
|||
TE Connectivity Ltd. |
114,443 |
6,805 |
|
Internet Software & Services - 2.4% |
|||
Google, Inc.: |
|
|
|
Class A (a) |
21,903 |
12,521 |
|
Class C (a) |
21,903 |
12,287 |
|
|
24,808 |
||
IT Services - 5.0% |
|||
Amdocs Ltd. |
115,580 |
5,562 |
|
ASAC II LP (i) |
298,480 |
4,256 |
|
Computer Sciences Corp. |
68,411 |
4,302 |
|
Fidelity National Information Services, Inc. |
161,998 |
8,772 |
|
MasterCard, Inc. Class A |
111,320 |
8,510 |
|
Total System Services, Inc. |
191,020 |
5,780 |
|
Visa, Inc. Class A |
49,276 |
10,586 |
|
Xerox Corp. |
373,303 |
4,610 |
|
|
52,378 |
||
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
INFORMATION TECHNOLOGY - continued |
|||
Semiconductors & Semiconductor Equipment - 0.2% |
|||
MediaTek, Inc. |
153,000 |
$ 2,481 |
|
Software - 5.2% |
|||
Activision Blizzard, Inc. |
207,867 |
4,319 |
|
Comverse, Inc. (a) |
113,340 |
2,805 |
|
Electronic Arts, Inc. (a) |
109,986 |
3,864 |
|
Microsoft Corp. |
639,263 |
26,171 |
|
Oracle Corp. |
426,928 |
17,940 |
|
|
55,099 |
||
Technology Hardware, Storage & Peripherals - 4.8% |
|||
Apple, Inc. |
66,232 |
41,923 |
|
EMC Corp. |
328,500 |
8,725 |
|
|
50,648 |
||
TOTAL INFORMATION TECHNOLOGY |
214,439 |
||
MATERIALS - 2.5% |
|||
Chemicals - 2.3% |
|||
Cabot Corp. |
71,756 |
4,058 |
|
Eastman Chemical Co. |
42,347 |
3,738 |
|
LyondellBasell Industries NV Class A |
63,926 |
6,365 |
|
Potash Corp. of Saskatchewan, Inc. (e) |
186,600 |
6,772 |
|
W.R. Grace & Co. (a) |
37,809 |
3,481 |
|
|
24,414 |
||
Containers & Packaging - 0.2% |
|||
Nampak Ltd. |
586,428 |
2,029 |
|
TOTAL MATERIALS |
26,443 |
||
TELECOMMUNICATION SERVICES - 2.6% |
|||
Diversified Telecommunication Services - 2.1% |
|||
Verizon Communications, Inc. |
414,000 |
20,683 |
|
Verizon Communications, Inc. CDI |
35,521 |
1,772 |
|
|
22,455 |
||
Wireless Telecommunication Services - 0.5% |
|||
T-Mobile U.S., Inc. (a) |
31,600 |
1,085 |
|
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
TELECOMMUNICATION SERVICES - continued |
|||
Wireless Telecommunication Services - continued |
|||
Telephone & Data Systems, Inc. |
58,858 |
$ 1,631 |
|
Vodafone Group PLC |
736,711 |
2,583 |
|
|
5,299 |
||
TOTAL TELECOMMUNICATION SERVICES |
27,754 |
||
UTILITIES - 2.0% |
|||
Electric Utilities - 1.0% |
|||
Edison International |
85,700 |
4,725 |
|
ITC Holdings Corp. |
68,814 |
2,519 |
|
Xcel Energy, Inc. |
119,364 |
3,672 |
|
|
10,916 |
||
Multi-Utilities - 1.0% |
|||
CMS Energy Corp. |
168,450 |
5,011 |
|
Sempra Energy |
50,614 |
5,079 |
|
|
10,090 |
||
TOTAL UTILITIES |
21,006 |
||
TOTAL COMMON STOCKS (Cost $843,034) |
|
||
Convertible Preferred Stocks - 0.1% |
|||
|
|
|
|
INFORMATION TECHNOLOGY - 0.1% |
|||
Software - 0.1% |
|||
Mobileye NV Series F (i) (Cost $1,144) |
32,777 |
|
Convertible Bonds - 0.1% |
||||
|
Principal Amount (000s) (d) |
|
||
ENERGY - 0.0% |
||||
Oil, Gas & Consumable Fuels - 0.0% |
||||
Amyris, Inc. 3% 2/27/17 |
|
$ 791 |
645 |
|
Convertible Bonds - continued |
||||
|
Principal Amount (000s) (d) |
Value (000s) |
||
INDUSTRIALS - 0.1% |
||||
Building Products - 0.1% |
||||
Aspen Aerogels, Inc. 8% 6/1/16 (i) |
|
$ 487 |
$ 712 |
|
TOTAL CONVERTIBLE BONDS (Cost $1,278) |
|
|||
U.S. Treasury Obligations - 0.1% |
||||
|
||||
U.S. Treasury Bills, yield at date of purchase 0.03% 8/21/14 (h) |
|
520 |
|
Preferred Securities - 0.1% |
|||
|
|
|
|
FINANCIALS - 0.1% |
|||
Diversified Financial Services - 0.1% |
Baggot Securities Ltd. 10.24% (f)(g) (Cost $1,305) |
EUR |
850 |
|
Money Market Funds - 3.3% |
|||
Shares |
|
||
Fidelity Cash Central Fund, 0.10% (b) |
30,753,219 |
30,753 |
|
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) |
3,726,315 |
3,726 |
|
TOTAL MONEY MARKET FUNDS (Cost $34,479) |
|
||
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $881,760) |
1,056,380 |
||
NET OTHER ASSETS (LIABILITIES) - 0.0% |
207 |
||
NET ASSETS - 100% |
$ 1,056,587 |
Futures Contracts |
|||||
|
Expiration Date |
Underlying Face Amount at Value (000s) |
Unrealized Appreciation/ |
||
Purchased |
|||||
Equity Index Contracts |
|||||
113 CME E-mini S&P 500 Index Contracts (United States) |
June 2014 |
$ 10,856 |
$ 343 |
|
The face value of futures purchased as a percentage of net assets is 1% |
Currency Abbreviations |
||
EUR |
- |
European Monetary Unit |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Amount is stated in United States dollars unless otherwise noted. |
(e) Security or a portion of the security is on loan at period end. |
(f) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $1,338,000 or 0.1% of net assets. |
(g) Security is perpetual in nature with no stated maturity date. |
(h) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At period end, the value of securities pledged amounted to $520,000. |
(i) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $6,112,000 or 0.6% of net assets. |
Additional information on each restricted holding is as follows: |
Security |
Acquisition Date |
Acquisition Cost (000s) |
ASAC II LP |
10/10/13 |
$ 2,985 |
Aspen Aerogels, Inc. 8% 6/1/16 |
6/1/11 - 12/31/13 |
$ 488 |
Mobileye NV Series F |
8/15/13 |
$ 1,144 |
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 |
$ 17 |
Fidelity Securities Lending Cash Central Fund |
63 |
Total |
$ 80 |
Other Information |
The following is a summary of the inputs used, as of May 31, 2014, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
||||
Description |
Total |
Level 1 |
Level 2 |
Level 3 |
Investments in Securities: |
||||
Equities: |
||||
Consumer Discretionary |
$ 117,327 |
$ 117,327 |
$ - |
$ - |
Consumer Staples |
109,034 |
85,293 |
23,741 |
- |
Energy |
100,084 |
100,084 |
- |
- |
Financials |
165,093 |
163,076 |
2,017 |
- |
Health Care |
145,264 |
140,529 |
4,735 |
- |
Industrials |
91,136 |
91,136 |
- |
- |
Information Technology |
215,583 |
210,183 |
- |
5,400 |
Materials |
26,443 |
26,443 |
- |
- |
Telecommunication Services |
27,754 |
25,171 |
2,583 |
- |
Utilities |
21,006 |
21,006 |
- |
- |
Corporate Bonds |
1,357 |
- |
645 |
712 |
U.S. Government and Government Agency Obligations |
520 |
- |
520 |
- |
Preferred Securities |
1,300 |
- |
1,300 |
- |
Money Market Funds |
34,479 |
34,479 |
- |
- |
Total Investments in Securities: |
$ 1,056,380 |
$ 1,014,727 |
$ 35,541 |
$ 6,112 |
Derivative Instruments: |
||||
Assets |
||||
Futures Contracts |
$ 343 |
$ 343 |
$ - |
$ - |
Value of Derivative Instruments |
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of May 31, 2014. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements. |
Primary Risk Exposure / |
Value |
|
|
Asset |
Liability |
Equity Risk |
||
Futures Contracts (a) |
$ 343 |
$ - |
Total Value of Derivatives |
$ 343 |
$ - |
(a) Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. Only the period end receivable or payable for daily variation margin and net unrealized appreciation (depreciation) are presented in the Statement of Assets and Liabilities. |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited): |
United States of America |
86.2% |
Canada |
2.2% |
Ireland |
2.0% |
United Kingdom |
1.9% |
Switzerland |
1.6% |
Japan |
1.4% |
Israel |
1.0% |
Others (Individually Less Than 1%) |
3.7% |
|
100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Amounts in thousands (except per-share amounts) |
May 31, 2014 (Unaudited) |
|
|
|
|
Assets |
|
|
Investment in securities, at value (including securities loaned of $3,533) - See accompanying schedule: Unaffiliated issuers (cost $847,281) |
$ 1,021,901 |
|
Fidelity Central Funds (cost $34,479) |
34,479 |
|
Total Investments (cost $881,760) |
|
$ 1,056,380 |
Cash |
|
8 |
Receivable for investments sold |
|
21,274 |
Receivable for fund shares sold |
|
861 |
Dividends receivable |
|
2,116 |
Interest receivable |
|
16 |
Distributions receivable from Fidelity Central Funds |
|
4 |
Receivable for daily variation margin for derivative instruments |
|
20 |
Other receivables |
|
3 |
Total assets |
|
1,080,682 |
|
|
|
Liabilities |
|
|
Payable for investments purchased |
$ 18,335 |
|
Payable for fund shares redeemed |
1,070 |
|
Accrued management fee |
326 |
|
Distribution and service plan fees payable |
380 |
|
Other affiliated payables |
213 |
|
Other payables and accrued expenses |
45 |
|
Collateral on securities loaned, at value |
3,726 |
|
Total liabilities |
|
24,095 |
|
|
|
Net Assets |
|
$ 1,056,587 |
Net Assets consist of: |
|
|
Paid in capital |
|
$ 789,144 |
Undistributed net investment income |
|
5,678 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions |
|
86,808 |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies |
|
174,957 |
Net Assets |
|
$ 1,056,587 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Amounts in thousands (except per-share amounts) |
May 31, 2014 (Unaudited) |
|
|
|
|
Calculation of Maximum Offering Price Class A: |
|
$ 18.18 |
|
|
|
Maximum offering price per share (100/94.25 of $18.18) |
|
$ 19.29 |
Class T: |
|
$ 18.11 |
|
|
|
Maximum offering price per share (100/96.50 of $18.11) |
|
$ 18.77 |
Class B: |
|
$ 17.51 |
|
|
|
Class C: |
|
$ 17.47 |
|
|
|
Institutional Class: |
|
$ 18.87 |
|
|
|
Class Z: |
|
$ 18.87 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Amounts in thousands |
Six months ended May 31, 2014 |
|
|
|
|
Investment Income |
|
|
Dividends |
|
$ 9,953 |
Special dividends |
|
2,353 |
Interest |
|
35 |
Income from Fidelity Central Funds |
|
80 |
Total income |
|
12,421 |
|
|
|
Expenses |
|
|
Management fee |
$ 2,856 |
|
Performance adjustment |
(916) |
|
Transfer agent fees |
1,102 |
|
Distribution and service plan fees |
2,268 |
|
Accounting and security lending fees |
172 |
|
Custodian fees and expenses |
69 |
|
Independent trustees' compensation |
2 |
|
Registration fees |
82 |
|
Audit |
32 |
|
Legal |
3 |
|
Miscellaneous |
4 |
|
Total expenses before reductions |
5,674 |
|
Expense reductions |
(11) |
5,663 |
Net investment income (loss) |
|
6,758 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: |
|
|
Investment securities: |
|
|
Unaffiliated issuers |
90,517 |
|
Foreign currency transactions |
(58) |
|
Futures contracts |
863 |
|
Total net realized gain (loss) |
|
91,322 |
Change in net unrealized appreciation (depreciation) on: Investment securities |
(37,988) |
|
Assets and liabilities in foreign currencies |
(6) |
|
Futures contracts |
343 |
|
Total change in net unrealized appreciation (depreciation) |
|
(37,651) |
Net gain (loss) |
|
53,671 |
Net increase (decrease) in net assets resulting from operations |
|
$ 60,429 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Amounts in thousands |
Six months ended May 31, 2014
|
Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) |
$ 6,758 |
$ 6,658 |
Net realized gain (loss) |
91,322 |
96,937 |
Change in net unrealized appreciation (depreciation) |
(37,651) |
145,253 |
Net increase (decrease) in net assets resulting |
60,429 |
248,848 |
Distributions to shareholders from net investment income |
(4,242) |
(5,093) |
Distributions to shareholders from net realized gain |
(420) |
- |
Total distributions |
(4,662) |
(5,093) |
Share transactions - net increase (decrease) |
(59,716) |
(30,529) |
Total increase (decrease) in net assets |
(3,949) |
213,226 |
|
|
|
Net Assets |
|
|
Beginning of period |
1,060,536 |
847,310 |
End of period (including undistributed net investment income of $5,678 and undistributed net investment income of $3,162, respectively) |
$ 1,056,587 |
$ 1,060,536 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 17.23 |
$ 13.33 |
$ 11.45 |
$ 11.58 |
$ 9.95 |
$ 6.64 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E |
.13 K |
.13 |
.07 |
.02 |
.03H |
.04 |
Net realized and unrealized gain (loss) |
.92 |
3.87 |
1.81 |
(.09) |
1.66 |
3.41 |
Total from investment operations |
1.05 |
4.00 |
1.88 |
(.07) |
1.69 |
3.45 |
Distributions from net investment income |
(.09) |
(.10) |
- |
- |
(.02) |
(.14) |
Distributions from net realized gain |
(.01) |
- |
- |
(.06) |
(.05) |
- |
Total distributions |
(.10) |
(.10) |
- |
(.06) |
(.06)J |
(.14) |
Net asset value, end of period |
$ 18.18 |
$ 17.23 |
$ 13.33 |
$ 11.45 |
$ 11.58 |
$ 9.95 |
Total ReturnB, C, D |
6.12% |
30.26% |
16.42% |
(.63)% |
17.09% |
52.97% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions |
.91%A |
.98% |
1.21% |
1.36% |
1.36% |
1.08% |
Expenses net of fee waivers, if any |
.91%A |
.98% |
1.21% |
1.33% |
1.25% |
1.08% |
Expenses net of all reductions |
.91%A |
.97% |
1.20% |
1.33% |
1.24% |
1.08% |
Net investment income (loss) |
1.48%A,K |
.87% |
.53% |
.16% |
.24%H |
.56% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 369 |
$ 369 |
$ 301 |
$ 295 |
$ 285 |
$ 240 |
Portfolio turnover rateG |
141%A |
70% |
64% |
68% |
80% |
88% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .10%. IExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. JTotal distributions of $.06 per share is comprised of distributions from net investment income of $.018 and distributions from net realized gain of $.045 per share. KInvestment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.03%. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 17.15 |
$ 13.26 |
$ 11.42 |
$ 11.55 |
$ 9.92 |
$ 6.60 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E |
.11 L |
.10 |
.04 |
(.01) |
-H,J |
.03 |
Net realized and unrealized gain (loss) |
.91 |
3.86 |
1.80 |
(.09) |
1.67 |
3.39 |
Total from investment operations |
1.02 |
3.96 |
1.84 |
(.10) |
1.67 |
3.42 |
Distributions from net investment income |
(.06) |
(.07) |
- |
- |
- |
(.10) |
Distributions from net realized gain |
(.01) |
- |
- |
(.03) |
(.04) |
- |
Total distributions |
(.06)K |
(.07) |
- |
(.03) |
(.04) |
(.10) |
Net asset value, end of period |
$ 18.11 |
$ 17.15 |
$ 13.26 |
$ 11.42 |
$ 11.55 |
$ 9.92 |
Total ReturnB, C, D |
5.99% |
30.05% |
16.11% |
(.90)% |
16.88% |
52.60% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions |
1.15%A |
1.20% |
1.42% |
1.57% |
1.57% |
1.31% |
Expenses net of fee waivers, if any |
1.15%A |
1.20% |
1.42% |
1.55% |
1.50% |
1.31% |
Expenses net of all reductions |
1.14%A |
1.19% |
1.42% |
1.54% |
1.49% |
1.30% |
Net investment income (loss) |
1.25%A,L |
.65% |
.32% |
(.06)% |
(.01)%H |
.34% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 385 |
$ 375 |
$ 304 |
$ 294 |
$ 322 |
$ 305 |
Portfolio turnover rateG |
141%A |
70% |
64% |
68% |
80% |
88% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.15)%. IExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. JAmount represents less than $.01 per share. KTotal distributions of $.06 per share is comprised of distributions from net investment income of $.055 and distributions from net realized gain of $.007 per share. LInvestment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .80%. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 16.57 |
$ 12.82 |
$ 11.11 |
$ 11.26 |
$ 9.68 |
$ 6.42 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E |
.05J |
.01 |
(.03) |
(.07) |
(.05) H |
(.01) |
Net realized and unrealized gain (loss) |
.90 |
3.74 |
1.74 |
(.08) |
1.63 |
3.31 |
Total from investment operations |
.95 |
3.75 |
1.71 |
(.15) |
1.58 |
3.30 |
Distributions from net investment income |
- |
- |
- |
- |
- |
(.04) |
Distributions from net realized gain |
(.01) |
- |
- |
- |
- |
- |
Total distributions |
(.01) |
- |
- |
- |
- |
(.04) |
Net asset value, end of period |
$ 17.51 |
$ 16.57 |
$ 12.82 |
$ 11.11 |
$ 11.26 |
$ 9.68 |
Total ReturnB, C, D |
5.72% |
29.25% |
15.39% |
(1.33)% |
16.32% |
51.61% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions |
1.75%A |
1.79% |
1.99% |
2.14% |
2.13% |
1.81% |
Expenses net of fee waivers, if any |
1.75%A |
1.79% |
1.99% |
2.09% |
2.00% |
1.81% |
Expenses net of all reductions |
1.74%A |
1.78% |
1.99% |
2.09% |
2.00% |
1.80% |
Net investment income (loss) |
.65%A,J |
.06% |
(.25)% |
(.61)% |
(.51)%H |
(.17)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 12 |
$ 15 |
$ 17 |
$ 22 |
$ 43 |
$ 69 |
Portfolio turnover rateG |
141%A |
70% |
64% |
68% |
80% |
88% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.66)%. IExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. JInvestment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .20%. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 16.54 |
$ 12.79 |
$ 11.07 |
$ 11.22 |
$ 9.65 |
$ 6.41 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E |
.06K |
.02 |
(.02) |
(.07) |
(.05) H |
(.01) |
Net realized and unrealized gain (loss) |
.88 |
3.73 |
1.74 |
(.08) |
1.62 |
3.30 |
Total from investment operations |
.94 |
3.75 |
1.72 |
(.15) |
1.57 |
3.29 |
Distributions from net investment income |
- |
-J |
- |
- |
- |
(.05) |
Distributions from net realized gain |
(.01) |
- |
- |
- |
-J |
- |
Total distributions |
(.01) |
-J |
- |
- |
-J |
(.05) |
Net asset value, end of period |
$ 17.47 |
$ 16.54 |
$ 12.79 |
$ 11.07 |
$ 11.22 |
$ 9.65 |
Total ReturnB, C, D |
5.67% |
29.36% |
15.54% |
(1.34)% |
16.31% |
51.79% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions |
1.66%A |
1.72% |
1.94% |
2.08% |
2.08% |
1.81% |
Expenses net of fee waivers, if any |
1.66%A |
1.72% |
1.94% |
2.06% |
2.00% |
1.81% |
Expenses net of all reductions |
1.66%A |
1.71% |
1.93% |
2.05% |
1.99% |
1.81% |
Net investment income (loss) |
.73%A,K |
.13% |
(.20)% |
(.57)% |
(.51)%H |
(.17)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 167 |
$ 160 |
$ 123 |
$ 124 |
$ 129 |
$ 125 |
Portfolio turnover rateG |
141%A |
70% |
64% |
68% |
80% |
88% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.65)%. IExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. JAmount represents less than $.01 per share. K Investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .28%. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 17.91 |
$ 13.86 |
$ 11.88 |
$ 12.00 |
$ 10.31 |
$ 6.73 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D |
.16I |
.18 |
.11 |
.06 |
.05G |
.08 |
Net realized and unrealized gain (loss) |
.95 |
4.02 |
1.87 |
(.09) |
1.74 |
3.52 |
Total from investment operations |
1.11 |
4.20 |
1.98 |
(.03) |
1.79 |
3.60 |
Distributions from net investment income |
(.14) |
(.15) |
- |
(.02) |
(.06) |
(.02) |
Distributions from net realized gain |
(.01) |
- |
- |
(.07) |
(.04) |
- |
Total distributions |
(.15) |
(.15) |
- |
(.09) |
(.10) |
(.02) |
Net asset value, end of period |
$ 18.87 |
$ 17.91 |
$ 13.86 |
$ 11.88 |
$ 12.00 |
$ 10.31 |
Total ReturnB, C |
6.26% |
30.63% |
16.67% |
(.33)% |
17.47% |
53.57% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions |
.66%A |
.70% |
.91% |
1.04% |
1.03% |
.70% |
Expenses net of fee waivers, if any |
.66%A |
.70% |
.91% |
1.03% |
1.00% |
.70% |
Expenses net of all reductions |
.66%A |
.69% |
.90% |
1.02% |
.99% |
.69% |
Net investment income (loss) |
1.74%A,I |
1.15% |
.83% |
.46% |
.49%G |
.94% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 123 |
$ 135 |
$ 103 |
$ 83 |
$ 73 |
$ 66 |
Portfolio turnover rateF |
141%A |
70% |
64% |
68% |
80% |
88% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DCalculated based on average shares outstanding during the period. EFees 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. FAmount does not include the portfolio activity of any underlying Fidelity Central Funds. GInvestment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .35%. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. IInvestment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.28%. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Year ended |
|
(Unaudited) |
2013 G |
Selected Per-Share Data |
|
|
Net asset value, beginning of period |
$ 17.92 |
$ 16.59 |
Income from Investment Operations |
|
|
Net investment income (loss) D |
.17J |
.06 |
Net realized and unrealized gain (loss) |
.95 |
1.27 |
Total from investment operations |
1.12 |
1.33 |
Distributions from net investment income |
(.17) |
- |
Distributions from net realized gain |
(.01) |
- |
Total distributions |
(.17)I |
- |
Net asset value, end of period |
$ 18.87 |
$ 17.92 |
Total ReturnB, C |
6.35% |
8.02% |
Ratios to Average Net Assets E, H |
|
|
Expenses before reductions |
.49%A |
.54%A |
Expenses net of fee waivers, if any |
.49%A |
.54%A |
Expenses net of all reductions |
.49%A |
.52%A |
Net investment income (loss) |
1.91%A,J |
1.26% |
Supplemental Data |
|
|
Net assets, end of period (000 omitted) |
$ - |
$ 7 |
Portfolio turnover rateF |
141%A |
70% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DCalculated based on average shares outstanding during the period. EFees 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. FAmount does not include the portfolio activity of any underlying Fidelity Central Funds. GFor the period August 13, 2013 (commencement of sale of shares) to November 30, 2013. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. ITotal distributions of $.17 per share is comprised of distributions from net investment income of $.166 and distributions from net realized gain of $.007 per share. JInvestment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.45%. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
For the period ended May 31, 2014 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor® Dividend Growth Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, Institutional Class and Class Z shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds 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:
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds, preferred securities and U.S. government and government agency obligations are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded and are categorized as Level 1 in the hierarchy. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of May 31, 2014, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), market discount, partnerships, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation |
$ 184,521 |
Gross unrealized depreciation |
(13,324) |
Net unrealized appreciation (depreciation) on securities and other investments |
$ 171,197 |
Tax cost |
$ 885,183 |
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
Semiannual Report
4. Derivative Instruments - continued
Risk Exposures and the Use of Derivative Instruments - continued
The Fund used derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
The Fund's use of derivatives increased or decreased its exposure to the following risk:
Equity Risk |
Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Counterparty credit risk related to exchange-traded futures contracts may be mitigated by the protection provided by the exchange on which they trade.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent daily payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable, if any, is included in daily variation margin for derivative instruments in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
4. Derivative Instruments - continued
Futures Contracts - continued
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts." The underlying face amount at value reflects each contract's exposure to the underlying instrument or index at period end and is representative of volume of activity during the period. Securities deposited to meet initial margin requirements are identified in the Schedule of Investments.
During the period the Fund recognized net realized gain (loss) of eight hundred and sixty three dollars and a change in net unrealized appreciation (depreciation) of three hundred and forty three dollars related to its investment in futures contracts. These amounts are included in the Statement of Operations.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $713,163 and $792,684, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of the Institutional Class of the Fund as compared to its benchmark index, the S&P 500® Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .37% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
|
Distribution |
Service |
Total Fees |
Retained |
Class A |
-% |
.25% |
$ 454 |
$ 9 |
Class T |
.25% |
.25% |
937 |
7 |
Class B |
.75% |
.25% |
67 |
51 |
Class C |
.75% |
.25% |
810 |
69 |
|
|
|
$ 2,268 |
$ 136 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
|
Retained |
Class A |
$ 45 |
Class T |
10 |
Class B* |
4 |
Class C* |
3 |
|
$ 62 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund, except for Class Z. FIIOC receives an asset-based fee of Class Z's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
|
Amount |
% of |
Class A |
$ 399 |
.22 |
Class T |
378 |
.20 |
Class B |
20 |
.30 |
Class C |
177 |
.22 |
Institutional Class |
126 |
.22 |
Class Z |
2 |
.05 |
|
$ 1,102 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $15 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $1 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Semiannual Report
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. At period end, there were no security loans outstanding with FCM. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $63, including $3 from securities loaned to FCM.
9. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $11 for the period.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
|
Six months ended |
Year ended |
From net investment income |
|
|
Class A |
$ 1,902 |
$ 2,287 |
Class T |
1,201 |
1,666 |
Class C |
- |
38 |
Institutional Class |
1,071 |
1,102 |
Class Z |
68 |
- |
Total |
$ 4,242 |
$ 5,093 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
10. Distributions to Shareholders - continued
|
Six months ended |
Year ended |
From net realized gain |
|
|
Class A |
$ 147 |
$ - |
Class T |
152 |
- |
Class B |
6 |
- |
Class C |
68 |
- |
Institutional Class |
44 |
- |
Class Z |
3 |
- |
Total |
$ 420 |
$ - |
A Distributions for Class Z are for the period August 13, 2013 (commencement of sale of shares) to November 30, 2013.
11. Share Transactions.
Transactions for each class of shares were as follows:
|
Shares |
Dollars |
||
|
Six months ended May 31, |
Year ended |
Six months ended May 31, |
Year ended |
Class A |
|
|
|
|
Shares sold |
1,400 |
3,250 |
$ 24,360 |
$ 49,173 |
Reinvestment of distributions |
107 |
152 |
1,806 |
2,006 |
Shares redeemed |
(2,583) |
(4,572) |
(45,054) |
(69,790) |
Net increase (decrease) |
(1,076) |
(1,170) |
$ (18,888) |
$ (18,611) |
Class T |
|
|
|
|
Shares sold |
1,991 |
4,665 |
$ 34,556 |
$ 69,969 |
Reinvestment of distributions |
77 |
122 |
1,302 |
1,600 |
Shares redeemed |
(2,680) |
(5,859) |
(46,453) |
(87,860) |
Net increase (decrease) |
(612) |
(1,072) |
$ (10,595) |
$ (16,291) |
Class B |
|
|
|
|
Shares sold |
23 |
81 |
$ 374 |
$ 1,199 |
Reinvestment of distributions |
0 * |
- |
5 |
- |
Shares redeemed |
(202) |
(486) |
(3,384) |
(7,004) |
Net increase (decrease) |
(179) |
(405) |
$ (3,005) |
$ (5,805) |
Class C |
|
|
|
|
Shares sold |
581 |
1,435 |
$ 9,731 |
$ 21,000 |
Reinvestment of distributions |
3 |
3 |
58 |
32 |
Shares redeemed |
(669) |
(1,415) |
(11,239) |
(20,479) |
Net increase (decrease) |
(85) |
23 |
$ (1,450) |
$ 553 |
Institutional Class |
|
|
|
|
Shares sold |
896 |
1,599 |
$ 16,196 |
$ 25,325 |
Reinvestment of distributions |
59 |
75 |
1,027 |
1,032 |
Shares redeemed |
(2,009) |
(1,526) |
(35,555) |
(24,057) |
Net increase (decrease) |
(1,054) |
148 |
$ (18,332) |
$ 2,300 |
Semiannual Report
11. Share Transactions - continued
|
Shares |
Dollars |
||
|
Six months ended May 31, |
Year ended |
Six months ended May 31, |
Year ended |
Class Z |
|
|
|
|
Shares sold |
23 |
420 |
$ 420 |
$ 7,441 |
Reinvestment of distributions |
4 |
- |
71 |
- |
Shares redeemed |
(434) |
(7) |
(7,937) |
(116) |
Net increase (decrease) |
(407) |
413 |
$ (7,446) |
$ 7,325 |
A Share transactions for Class Z are for the period August 13, 2013 (commencement of sale of shares) to November 30, 2013.
* Amount represents less than 1,000 shares.
12. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
State Street Bank and Trust Company
Quincy, MA
(Fidelity Investment logo)(registered trademark)
ADGF-USAN-0714 1.786779.111
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Dividend Growth
Fund - Class Z
Semiannual Report
May 31, 2014
(Fidelity Cover Art)
Shareholder Expense Example |
An example of shareholder expenses. |
|
Investment Changes |
A summary of major shifts in the fund's investments over the past six months. |
|
Investments |
A complete list of the fund's investments with their market values. |
|
Financial Statements |
Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
|
Notes |
Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (December 1, 2013 to May 31, 2014).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
|
Annualized |
Beginning |
Ending |
Expenses Paid |
Class A |
.91% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,061.20 |
$ 4.68 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,020.39 |
$ 4.58 |
Class T |
1.15% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,059.90 |
$ 5.91 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,019.20 |
$ 5.79 |
Class B |
1.75% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,057.20 |
$ 8.98 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,016.21 |
$ 8.80 |
Class C |
1.66% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,056.70 |
$ 8.51 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,016.65 |
$ 8.35 |
Institutional Class |
.66% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,062.60 |
$ 3.39 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,021.64 |
$ 3.33 |
Class Z |
.49% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,063.50 |
$ 2.52 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,022.49 |
$ 2.47 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
Semiannual Report
Top Ten Stocks as of May 31, 2014 |
||
|
% of fund's |
% of fund's net assets |
Apple, Inc. |
4.0 |
3.2 |
Microsoft Corp. |
2.5 |
1.8 |
Johnson & Johnson |
2.4 |
0.8 |
Wells Fargo & Co. |
2.4 |
1.4 |
JPMorgan Chase & Co. |
2.3 |
1.8 |
Chevron Corp. |
2.1 |
0.0 |
Verizon Communications, Inc. |
1.9 |
0.0 |
Exxon Mobil Corp. |
1.9 |
0.0 |
Merck & Co., Inc. |
1.7 |
0.0 |
Oracle Corp. |
1.7 |
0.8 |
|
22.9 |
|
Top Five Market Sectors as of May 31, 2014 |
||
|
% of fund's |
% of fund's net assets |
Information Technology |
20.4 |
17.9 |
Financials |
15.7 |
15.5 |
Health Care |
13.8 |
13.4 |
Consumer Discretionary |
11.1 |
14.2 |
Consumer Staples |
10.3 |
10.1 |
Asset Allocation (% of fund's net assets) |
|||||||
As of May 31, 2014* |
As of November 30, 2013** |
||||||
Stocks and |
|
Stocks 98.6% |
|
||||
Convertible |
|
Convertible |
|
||||
Other Investments 0.1% |
|
Other Investments 0.0% |
|
||||
Short-Term |
|
Short-Term |
|
||||
* Foreign investments |
13.8% |
|
** Foreign investments |
18.1% |
|
Semiannual Report
Showing Percentage of Net Assets
Common Stocks - 96.3% |
|||
Shares |
Value (000s) |
||
CONSUMER DISCRETIONARY - 11.1% |
|||
Auto Components - 0.8% |
|||
Johnson Controls, Inc. |
174,917 |
$ 8,459 |
|
Diversified Consumer Services - 0.5% |
|||
H&R Block, Inc. |
193,564 |
5,764 |
|
Hotels, Restaurants & Leisure - 2.2% |
|||
ARAMARK Holdings Corp. |
205,000 |
5,408 |
|
Bloomin' Brands, Inc. (a) |
19,763 |
412 |
|
Brinker International, Inc. |
152,028 |
7,548 |
|
Darden Restaurants, Inc. |
92,700 |
4,646 |
|
Sonic Corp. (a) |
84,206 |
1,751 |
|
Wyndham Worldwide Corp. |
42,252 |
3,124 |
|
|
22,889 |
||
Household Durables - 0.5% |
|||
Taylor Wimpey PLC |
2,815,664 |
5,111 |
|
Media - 4.1% |
|||
Altice S.A. |
44,800 |
3,255 |
|
Atresmedia Corporacion de Medios de Comunicacion SA |
232,299 |
3,654 |
|
CBS Corp. Class B |
120,702 |
7,195 |
|
Comcast Corp. Class A |
310,925 |
16,230 |
|
DISH Network Corp. Class A (a) |
32,900 |
1,930 |
|
MDC Partners, Inc. Class A (sub. vtg.) |
132,201 |
2,779 |
|
Time Warner, Inc. |
119,881 |
8,371 |
|
|
43,414 |
||
Specialty Retail - 1.8% |
|||
AutoZone, Inc. (a) |
16,600 |
8,840 |
|
Foot Locker, Inc. |
105,791 |
5,097 |
|
GameStop Corp. Class A |
129,200 |
4,890 |
|
Staples, Inc. |
13,411 |
151 |
|
|
18,978 |
||
Textiles, Apparel & Luxury Goods - 1.2% |
|||
NIKE, Inc. Class B |
78,185 |
6,013 |
|
VF Corp. |
106,300 |
6,699 |
|
|
12,712 |
||
TOTAL CONSUMER DISCRETIONARY |
117,327 |
||
CONSUMER STAPLES - 10.3% |
|||
Beverages - 3.7% |
|||
Anheuser-Busch InBev SA NV |
25,500 |
2,800 |
|
Dr. Pepper Snapple Group, Inc. |
155,611 |
8,979 |
|
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
CONSUMER STAPLES - continued |
|||
Beverages - continued |
|||
PepsiCo, Inc. |
136,800 |
$ 12,084 |
|
The Coca-Cola Co. |
367,910 |
15,051 |
|
|
38,914 |
||
Food & Staples Retailing - 2.6% |
|||
Alimentation Couche-Tard, Inc. Class B (sub. vtg.) |
131,500 |
3,570 |
|
Kroger Co. |
217,360 |
10,377 |
|
Rami Levi Chain Stores Hashikma Marketing 2006 Ltd. |
60,793 |
2,942 |
|
Walgreen Co. |
143,523 |
10,321 |
|
|
27,210 |
||
Food Products - 1.2% |
|||
Archer Daniels Midland Co. |
120,820 |
5,430 |
|
Bunge Ltd. |
36,660 |
2,849 |
|
Greencore Group PLC |
823,505 |
4,022 |
|
Hilton Food Group PLC |
74,631 |
646 |
|
|
12,947 |
||
Household Products - 0.0% |
|||
Svenska Cellulosa AB (SCA) (B Shares) |
20,900 |
582 |
|
Tobacco - 2.8% |
|||
British American Tobacco PLC (United Kingdom) |
212,157 |
12,846 |
|
Japan Tobacco, Inc. |
238,300 |
8,095 |
|
Lorillard, Inc. |
135,754 |
8,440 |
|
|
29,381 |
||
TOTAL CONSUMER STAPLES |
109,034 |
||
ENERGY - 9.5% |
|||
Energy Equipment & Services - 0.6% |
|||
National Oilwell Varco, Inc. |
70,886 |
5,803 |
|
Oil, Gas & Consumable Fuels - 8.9% |
|||
Access Midstream Partners LP |
114,871 |
7,236 |
|
Chevron Corp. |
181,690 |
22,310 |
|
ConocoPhillips Co. |
191,673 |
15,322 |
|
Emerald Oil, Inc. warrants 2/4/16 (a) |
16,536 |
0 |
|
EQT Midstream Partners LP |
61,300 |
5,035 |
|
Exxon Mobil Corp. |
202,188 |
20,326 |
|
MPLX LP |
106,108 |
6,065 |
|
Northern Oil & Gas, Inc. (a) |
231,694 |
3,533 |
|
Phillips 66 Partners LP |
72,745 |
4,405 |
|
PrairieSky Royalty Ltd. |
111,000 |
3,711 |
|
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
ENERGY - continued |
|||
Oil, Gas & Consumable Fuels - continued |
|||
Suncor Energy, Inc. |
134,380 |
$ 5,172 |
|
TAG Oil Ltd. (a) |
473,900 |
1,128 |
|
TAG Oil Ltd. (a)(f) |
15,900 |
38 |
|
|
94,281 |
||
TOTAL ENERGY |
100,084 |
||
FINANCIALS - 15.6% |
|||
Banks - 10.2% |
|||
Bank of America Corp. |
1,144,003 |
17,320 |
|
Citigroup, Inc. |
286,523 |
13,630 |
|
JPMorgan Chase & Co. |
445,993 |
24,784 |
|
Nordea Bank AB |
584,597 |
8,622 |
|
SunTrust Banks, Inc. |
139,900 |
5,361 |
|
U.S. Bancorp |
322,117 |
13,590 |
|
Wells Fargo & Co. |
495,190 |
25,146 |
|
|
108,453 |
||
Capital Markets - 1.2% |
|||
BlackRock, Inc. Class A |
14,719 |
4,488 |
|
Carlyle Group LP |
26,800 |
830 |
|
Fortress Investment Group LLC |
146,000 |
1,037 |
|
Monex Group, Inc. |
595,800 |
2,017 |
|
The Blackstone Group LP |
147,790 |
4,593 |
|
|
12,965 |
||
Consumer Finance - 1.0% |
|||
Capital One Financial Corp. |
130,482 |
10,294 |
|
Diversified Financial Services - 0.7% |
|||
McGraw Hill Financial, Inc. |
87,567 |
7,160 |
|
Insurance - 2.3% |
|||
Allied World Assurance Co. Holdings Ltd. |
203,364 |
7,626 |
|
Aspen Insurance Holdings Ltd. |
120,040 |
5,516 |
|
Reinsurance Group of America, Inc. |
45,740 |
3,575 |
|
The Travelers Companies, Inc. |
78,762 |
7,360 |
|
|
24,077 |
||
Thrifts & Mortgage Finance - 0.2% |
|||
WSFS Financial Corp. |
31,561 |
2,144 |
|
TOTAL FINANCIALS |
165,093 |
||
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
HEALTH CARE - 13.8% |
|||
Biotechnology - 2.6% |
|||
Amgen, Inc. |
143,637 |
$ 16,660 |
|
Gilead Sciences, Inc. (a) |
134,462 |
10,920 |
|
|
27,580 |
||
Health Care Equipment & Supplies - 1.5% |
|||
Covidien PLC |
138,300 |
10,111 |
|
The Cooper Companies, Inc. |
40,502 |
5,226 |
|
|
15,337 |
||
Health Care Providers & Services - 1.8% |
|||
Cardinal Health, Inc. |
135,842 |
9,595 |
|
McKesson Corp. |
52,232 |
9,905 |
|
|
19,500 |
||
Health Care Technology - 0.1% |
|||
CompuGroup Medical AG |
46,600 |
1,257 |
|
Life Sciences Tools & Services - 0.9% |
|||
Agilent Technologies, Inc. |
106,200 |
6,047 |
|
Lonza Group AG |
28,411 |
3,054 |
|
|
9,101 |
||
Pharmaceuticals - 6.9% |
|||
AbbVie, Inc. |
201,250 |
10,934 |
|
Astellas Pharma, Inc. |
284,700 |
3,663 |
|
Horizon Pharma, Inc. warrants 9/25/17 (a) |
109,700 |
1,072 |
|
Johnson & Johnson |
252,602 |
25,629 |
|
Merck & Co., Inc. |
315,600 |
18,261 |
|
Perrigo Co. PLC |
37,882 |
5,235 |
|
Teva Pharmaceutical Industries Ltd. sponsored ADR |
152,400 |
7,695 |
|
|
72,489 |
||
TOTAL HEALTH CARE |
145,264 |
||
INDUSTRIALS - 8.6% |
|||
Aerospace & Defense - 2.9% |
|||
The Boeing Co. |
101,700 |
13,755 |
|
United Technologies Corp. |
150,401 |
17,480 |
|
|
31,235 |
||
Air Freight & Logistics - 0.9% |
|||
FedEx Corp. |
63,306 |
9,126 |
|
Airlines - 0.5% |
|||
Delta Air Lines, Inc. |
133,600 |
5,332 |
|
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
INDUSTRIALS - continued |
|||
Electrical Equipment - 0.3% |
|||
Generac Holdings, Inc. |
59,506 |
$ 2,897 |
|
Industrial Conglomerates - 1.9% |
|||
Danaher Corp. |
137,394 |
10,776 |
|
Roper Industries, Inc. |
64,596 |
9,152 |
|
|
19,928 |
||
Machinery - 0.3% |
|||
Manitowoc Co., Inc. |
118,803 |
3,214 |
|
Professional Services - 0.5% |
|||
Dun & Bradstreet Corp. |
53,766 |
5,551 |
|
Road & Rail - 1.3% |
|||
CSX Corp. |
99,662 |
2,930 |
|
Union Pacific Corp. |
54,815 |
10,923 |
|
|
13,853 |
||
TOTAL INDUSTRIALS |
91,136 |
||
INFORMATION TECHNOLOGY - 20.3% |
|||
Communications Equipment - 2.1% |
|||
Cisco Systems, Inc. |
451,979 |
11,128 |
|
QUALCOMM, Inc. |
137,878 |
11,092 |
|
|
22,220 |
||
Electronic Equipment & Components - 0.6% |
|||
TE Connectivity Ltd. |
114,443 |
6,805 |
|
Internet Software & Services - 2.4% |
|||
Google, Inc.: |
|
|
|
Class A (a) |
21,903 |
12,521 |
|
Class C (a) |
21,903 |
12,287 |
|
|
24,808 |
||
IT Services - 5.0% |
|||
Amdocs Ltd. |
115,580 |
5,562 |
|
ASAC II LP (i) |
298,480 |
4,256 |
|
Computer Sciences Corp. |
68,411 |
4,302 |
|
Fidelity National Information Services, Inc. |
161,998 |
8,772 |
|
MasterCard, Inc. Class A |
111,320 |
8,510 |
|
Total System Services, Inc. |
191,020 |
5,780 |
|
Visa, Inc. Class A |
49,276 |
10,586 |
|
Xerox Corp. |
373,303 |
4,610 |
|
|
52,378 |
||
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
INFORMATION TECHNOLOGY - continued |
|||
Semiconductors & Semiconductor Equipment - 0.2% |
|||
MediaTek, Inc. |
153,000 |
$ 2,481 |
|
Software - 5.2% |
|||
Activision Blizzard, Inc. |
207,867 |
4,319 |
|
Comverse, Inc. (a) |
113,340 |
2,805 |
|
Electronic Arts, Inc. (a) |
109,986 |
3,864 |
|
Microsoft Corp. |
639,263 |
26,171 |
|
Oracle Corp. |
426,928 |
17,940 |
|
|
55,099 |
||
Technology Hardware, Storage & Peripherals - 4.8% |
|||
Apple, Inc. |
66,232 |
41,923 |
|
EMC Corp. |
328,500 |
8,725 |
|
|
50,648 |
||
TOTAL INFORMATION TECHNOLOGY |
214,439 |
||
MATERIALS - 2.5% |
|||
Chemicals - 2.3% |
|||
Cabot Corp. |
71,756 |
4,058 |
|
Eastman Chemical Co. |
42,347 |
3,738 |
|
LyondellBasell Industries NV Class A |
63,926 |
6,365 |
|
Potash Corp. of Saskatchewan, Inc. (e) |
186,600 |
6,772 |
|
W.R. Grace & Co. (a) |
37,809 |
3,481 |
|
|
24,414 |
||
Containers & Packaging - 0.2% |
|||
Nampak Ltd. |
586,428 |
2,029 |
|
TOTAL MATERIALS |
26,443 |
||
TELECOMMUNICATION SERVICES - 2.6% |
|||
Diversified Telecommunication Services - 2.1% |
|||
Verizon Communications, Inc. |
414,000 |
20,683 |
|
Verizon Communications, Inc. CDI |
35,521 |
1,772 |
|
|
22,455 |
||
Wireless Telecommunication Services - 0.5% |
|||
T-Mobile U.S., Inc. (a) |
31,600 |
1,085 |
|
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
TELECOMMUNICATION SERVICES - continued |
|||
Wireless Telecommunication Services - continued |
|||
Telephone & Data Systems, Inc. |
58,858 |
$ 1,631 |
|
Vodafone Group PLC |
736,711 |
2,583 |
|
|
5,299 |
||
TOTAL TELECOMMUNICATION SERVICES |
27,754 |
||
UTILITIES - 2.0% |
|||
Electric Utilities - 1.0% |
|||
Edison International |
85,700 |
4,725 |
|
ITC Holdings Corp. |
68,814 |
2,519 |
|
Xcel Energy, Inc. |
119,364 |
3,672 |
|
|
10,916 |
||
Multi-Utilities - 1.0% |
|||
CMS Energy Corp. |
168,450 |
5,011 |
|
Sempra Energy |
50,614 |
5,079 |
|
|
10,090 |
||
TOTAL UTILITIES |
21,006 |
||
TOTAL COMMON STOCKS (Cost $843,034) |
|
||
Convertible Preferred Stocks - 0.1% |
|||
|
|
|
|
INFORMATION TECHNOLOGY - 0.1% |
|||
Software - 0.1% |
|||
Mobileye NV Series F (i) (Cost $1,144) |
32,777 |
|
Convertible Bonds - 0.1% |
||||
|
Principal Amount (000s) (d) |
|
||
ENERGY - 0.0% |
||||
Oil, Gas & Consumable Fuels - 0.0% |
||||
Amyris, Inc. 3% 2/27/17 |
|
$ 791 |
645 |
|
Convertible Bonds - continued |
||||
|
Principal Amount (000s) (d) |
Value (000s) |
||
INDUSTRIALS - 0.1% |
||||
Building Products - 0.1% |
||||
Aspen Aerogels, Inc. 8% 6/1/16 (i) |
|
$ 487 |
$ 712 |
|
TOTAL CONVERTIBLE BONDS (Cost $1,278) |
|
|||
U.S. Treasury Obligations - 0.1% |
||||
|
||||
U.S. Treasury Bills, yield at date of purchase 0.03% 8/21/14 (h) |
|
520 |
|
Preferred Securities - 0.1% |
|||
|
|
|
|
FINANCIALS - 0.1% |
|||
Diversified Financial Services - 0.1% |
Baggot Securities Ltd. 10.24% (f)(g) (Cost $1,305) |
EUR |
850 |
|
Money Market Funds - 3.3% |
|||
Shares |
|
||
Fidelity Cash Central Fund, 0.10% (b) |
30,753,219 |
30,753 |
|
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) |
3,726,315 |
3,726 |
|
TOTAL MONEY MARKET FUNDS (Cost $34,479) |
|
||
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $881,760) |
1,056,380 |
||
NET OTHER ASSETS (LIABILITIES) - 0.0% |
207 |
||
NET ASSETS - 100% |
$ 1,056,587 |
Futures Contracts |
|||||
|
Expiration Date |
Underlying Face Amount at Value (000s) |
Unrealized Appreciation/ |
||
Purchased |
|||||
Equity Index Contracts |
|||||
113 CME E-mini S&P 500 Index Contracts (United States) |
June 2014 |
$ 10,856 |
$ 343 |
|
The face value of futures purchased as a percentage of net assets is 1% |
Currency Abbreviations |
||
EUR |
- |
European Monetary Unit |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Amount is stated in United States dollars unless otherwise noted. |
(e) Security or a portion of the security is on loan at period end. |
(f) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $1,338,000 or 0.1% of net assets. |
(g) Security is perpetual in nature with no stated maturity date. |
(h) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At period end, the value of securities pledged amounted to $520,000. |
(i) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $6,112,000 or 0.6% of net assets. |
Additional information on each restricted holding is as follows: |
Security |
Acquisition Date |
Acquisition Cost (000s) |
ASAC II LP |
10/10/13 |
$ 2,985 |
Aspen Aerogels, Inc. 8% 6/1/16 |
6/1/11 - 12/31/13 |
$ 488 |
Mobileye NV Series F |
8/15/13 |
$ 1,144 |
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 |
$ 17 |
Fidelity Securities Lending Cash Central Fund |
63 |
Total |
$ 80 |
Other Information |
The following is a summary of the inputs used, as of May 31, 2014, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
||||
Description |
Total |
Level 1 |
Level 2 |
Level 3 |
Investments in Securities: |
||||
Equities: |
||||
Consumer Discretionary |
$ 117,327 |
$ 117,327 |
$ - |
$ - |
Consumer Staples |
109,034 |
85,293 |
23,741 |
- |
Energy |
100,084 |
100,084 |
- |
- |
Financials |
165,093 |
163,076 |
2,017 |
- |
Health Care |
145,264 |
140,529 |
4,735 |
- |
Industrials |
91,136 |
91,136 |
- |
- |
Information Technology |
215,583 |
210,183 |
- |
5,400 |
Materials |
26,443 |
26,443 |
- |
- |
Telecommunication Services |
27,754 |
25,171 |
2,583 |
- |
Utilities |
21,006 |
21,006 |
- |
- |
Corporate Bonds |
1,357 |
- |
645 |
712 |
U.S. Government and Government Agency Obligations |
520 |
- |
520 |
- |
Preferred Securities |
1,300 |
- |
1,300 |
- |
Money Market Funds |
34,479 |
34,479 |
- |
- |
Total Investments in Securities: |
$ 1,056,380 |
$ 1,014,727 |
$ 35,541 |
$ 6,112 |
Derivative Instruments: |
||||
Assets |
||||
Futures Contracts |
$ 343 |
$ 343 |
$ - |
$ - |
Value of Derivative Instruments |
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of May 31, 2014. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements. |
Primary Risk Exposure / |
Value |
|
|
Asset |
Liability |
Equity Risk |
||
Futures Contracts (a) |
$ 343 |
$ - |
Total Value of Derivatives |
$ 343 |
$ - |
(a) Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. Only the period end receivable or payable for daily variation margin and net unrealized appreciation (depreciation) are presented in the Statement of Assets and Liabilities. |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited): |
United States of America |
86.2% |
Canada |
2.2% |
Ireland |
2.0% |
United Kingdom |
1.9% |
Switzerland |
1.6% |
Japan |
1.4% |
Israel |
1.0% |
Others (Individually Less Than 1%) |
3.7% |
|
100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Amounts in thousands (except per-share amounts) |
May 31, 2014 (Unaudited) |
|
|
|
|
Assets |
|
|
Investment in securities, at value (including securities loaned of $3,533) - See accompanying schedule: Unaffiliated issuers (cost $847,281) |
$ 1,021,901 |
|
Fidelity Central Funds (cost $34,479) |
34,479 |
|
Total Investments (cost $881,760) |
|
$ 1,056,380 |
Cash |
|
8 |
Receivable for investments sold |
|
21,274 |
Receivable for fund shares sold |
|
861 |
Dividends receivable |
|
2,116 |
Interest receivable |
|
16 |
Distributions receivable from Fidelity Central Funds |
|
4 |
Receivable for daily variation margin for derivative instruments |
|
20 |
Other receivables |
|
3 |
Total assets |
|
1,080,682 |
|
|
|
Liabilities |
|
|
Payable for investments purchased |
$ 18,335 |
|
Payable for fund shares redeemed |
1,070 |
|
Accrued management fee |
326 |
|
Distribution and service plan fees payable |
380 |
|
Other affiliated payables |
213 |
|
Other payables and accrued expenses |
45 |
|
Collateral on securities loaned, at value |
3,726 |
|
Total liabilities |
|
24,095 |
|
|
|
Net Assets |
|
$ 1,056,587 |
Net Assets consist of: |
|
|
Paid in capital |
|
$ 789,144 |
Undistributed net investment income |
|
5,678 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions |
|
86,808 |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies |
|
174,957 |
Net Assets |
|
$ 1,056,587 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Amounts in thousands (except per-share amounts) |
May 31, 2014 (Unaudited) |
|
|
|
|
Calculation of Maximum Offering Price Class A: |
|
$ 18.18 |
|
|
|
Maximum offering price per share (100/94.25 of $18.18) |
|
$ 19.29 |
Class T: |
|
$ 18.11 |
|
|
|
Maximum offering price per share (100/96.50 of $18.11) |
|
$ 18.77 |
Class B: |
|
$ 17.51 |
|
|
|
Class C: |
|
$ 17.47 |
|
|
|
Institutional Class: |
|
$ 18.87 |
|
|
|
Class Z: |
|
$ 18.87 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Amounts in thousands |
Six months ended May 31, 2014 |
|
|
|
|
Investment Income |
|
|
Dividends |
|
$ 9,953 |
Special dividends |
|
2,353 |
Interest |
|
35 |
Income from Fidelity Central Funds |
|
80 |
Total income |
|
12,421 |
|
|
|
Expenses |
|
|
Management fee |
$ 2,856 |
|
Performance adjustment |
(916) |
|
Transfer agent fees |
1,102 |
|
Distribution and service plan fees |
2,268 |
|
Accounting and security lending fees |
172 |
|
Custodian fees and expenses |
69 |
|
Independent trustees' compensation |
2 |
|
Registration fees |
82 |
|
Audit |
32 |
|
Legal |
3 |
|
Miscellaneous |
4 |
|
Total expenses before reductions |
5,674 |
|
Expense reductions |
(11) |
5,663 |
Net investment income (loss) |
|
6,758 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: |
|
|
Investment securities: |
|
|
Unaffiliated issuers |
90,517 |
|
Foreign currency transactions |
(58) |
|
Futures contracts |
863 |
|
Total net realized gain (loss) |
|
91,322 |
Change in net unrealized appreciation (depreciation) on: Investment securities |
(37,988) |
|
Assets and liabilities in foreign currencies |
(6) |
|
Futures contracts |
343 |
|
Total change in net unrealized appreciation (depreciation) |
|
(37,651) |
Net gain (loss) |
|
53,671 |
Net increase (decrease) in net assets resulting from operations |
|
$ 60,429 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Amounts in thousands |
Six months ended May 31, 2014
|
Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) |
$ 6,758 |
$ 6,658 |
Net realized gain (loss) |
91,322 |
96,937 |
Change in net unrealized appreciation (depreciation) |
(37,651) |
145,253 |
Net increase (decrease) in net assets resulting |
60,429 |
248,848 |
Distributions to shareholders from net investment income |
(4,242) |
(5,093) |
Distributions to shareholders from net realized gain |
(420) |
- |
Total distributions |
(4,662) |
(5,093) |
Share transactions - net increase (decrease) |
(59,716) |
(30,529) |
Total increase (decrease) in net assets |
(3,949) |
213,226 |
|
|
|
Net Assets |
|
|
Beginning of period |
1,060,536 |
847,310 |
End of period (including undistributed net investment income of $5,678 and undistributed net investment income of $3,162, respectively) |
$ 1,056,587 |
$ 1,060,536 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 17.23 |
$ 13.33 |
$ 11.45 |
$ 11.58 |
$ 9.95 |
$ 6.64 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E |
.13 K |
.13 |
.07 |
.02 |
.03H |
.04 |
Net realized and unrealized gain (loss) |
.92 |
3.87 |
1.81 |
(.09) |
1.66 |
3.41 |
Total from investment operations |
1.05 |
4.00 |
1.88 |
(.07) |
1.69 |
3.45 |
Distributions from net investment income |
(.09) |
(.10) |
- |
- |
(.02) |
(.14) |
Distributions from net realized gain |
(.01) |
- |
- |
(.06) |
(.05) |
- |
Total distributions |
(.10) |
(.10) |
- |
(.06) |
(.06)J |
(.14) |
Net asset value, end of period |
$ 18.18 |
$ 17.23 |
$ 13.33 |
$ 11.45 |
$ 11.58 |
$ 9.95 |
Total ReturnB, C, D |
6.12% |
30.26% |
16.42% |
(.63)% |
17.09% |
52.97% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions |
.91%A |
.98% |
1.21% |
1.36% |
1.36% |
1.08% |
Expenses net of fee waivers, if any |
.91%A |
.98% |
1.21% |
1.33% |
1.25% |
1.08% |
Expenses net of all reductions |
.91%A |
.97% |
1.20% |
1.33% |
1.24% |
1.08% |
Net investment income (loss) |
1.48%A,K |
.87% |
.53% |
.16% |
.24%H |
.56% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 369 |
$ 369 |
$ 301 |
$ 295 |
$ 285 |
$ 240 |
Portfolio turnover rateG |
141%A |
70% |
64% |
68% |
80% |
88% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .10%. IExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. JTotal distributions of $.06 per share is comprised of distributions from net investment income of $.018 and distributions from net realized gain of $.045 per share. KInvestment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.03%. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 17.15 |
$ 13.26 |
$ 11.42 |
$ 11.55 |
$ 9.92 |
$ 6.60 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E |
.11 L |
.10 |
.04 |
(.01) |
-H,J |
.03 |
Net realized and unrealized gain (loss) |
.91 |
3.86 |
1.80 |
(.09) |
1.67 |
3.39 |
Total from investment operations |
1.02 |
3.96 |
1.84 |
(.10) |
1.67 |
3.42 |
Distributions from net investment income |
(.06) |
(.07) |
- |
- |
- |
(.10) |
Distributions from net realized gain |
(.01) |
- |
- |
(.03) |
(.04) |
- |
Total distributions |
(.06)K |
(.07) |
- |
(.03) |
(.04) |
(.10) |
Net asset value, end of period |
$ 18.11 |
$ 17.15 |
$ 13.26 |
$ 11.42 |
$ 11.55 |
$ 9.92 |
Total ReturnB, C, D |
5.99% |
30.05% |
16.11% |
(.90)% |
16.88% |
52.60% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions |
1.15%A |
1.20% |
1.42% |
1.57% |
1.57% |
1.31% |
Expenses net of fee waivers, if any |
1.15%A |
1.20% |
1.42% |
1.55% |
1.50% |
1.31% |
Expenses net of all reductions |
1.14%A |
1.19% |
1.42% |
1.54% |
1.49% |
1.30% |
Net investment income (loss) |
1.25%A,L |
.65% |
.32% |
(.06)% |
(.01)%H |
.34% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 385 |
$ 375 |
$ 304 |
$ 294 |
$ 322 |
$ 305 |
Portfolio turnover rateG |
141%A |
70% |
64% |
68% |
80% |
88% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.15)%. IExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. JAmount represents less than $.01 per share. KTotal distributions of $.06 per share is comprised of distributions from net investment income of $.055 and distributions from net realized gain of $.007 per share. LInvestment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .80%. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 16.57 |
$ 12.82 |
$ 11.11 |
$ 11.26 |
$ 9.68 |
$ 6.42 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E |
.05J |
.01 |
(.03) |
(.07) |
(.05) H |
(.01) |
Net realized and unrealized gain (loss) |
.90 |
3.74 |
1.74 |
(.08) |
1.63 |
3.31 |
Total from investment operations |
.95 |
3.75 |
1.71 |
(.15) |
1.58 |
3.30 |
Distributions from net investment income |
- |
- |
- |
- |
- |
(.04) |
Distributions from net realized gain |
(.01) |
- |
- |
- |
- |
- |
Total distributions |
(.01) |
- |
- |
- |
- |
(.04) |
Net asset value, end of period |
$ 17.51 |
$ 16.57 |
$ 12.82 |
$ 11.11 |
$ 11.26 |
$ 9.68 |
Total ReturnB, C, D |
5.72% |
29.25% |
15.39% |
(1.33)% |
16.32% |
51.61% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions |
1.75%A |
1.79% |
1.99% |
2.14% |
2.13% |
1.81% |
Expenses net of fee waivers, if any |
1.75%A |
1.79% |
1.99% |
2.09% |
2.00% |
1.81% |
Expenses net of all reductions |
1.74%A |
1.78% |
1.99% |
2.09% |
2.00% |
1.80% |
Net investment income (loss) |
.65%A,J |
.06% |
(.25)% |
(.61)% |
(.51)%H |
(.17)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 12 |
$ 15 |
$ 17 |
$ 22 |
$ 43 |
$ 69 |
Portfolio turnover rateG |
141%A |
70% |
64% |
68% |
80% |
88% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.66)%. IExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. JInvestment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .20%. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 16.54 |
$ 12.79 |
$ 11.07 |
$ 11.22 |
$ 9.65 |
$ 6.41 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E |
.06K |
.02 |
(.02) |
(.07) |
(.05) H |
(.01) |
Net realized and unrealized gain (loss) |
.88 |
3.73 |
1.74 |
(.08) |
1.62 |
3.30 |
Total from investment operations |
.94 |
3.75 |
1.72 |
(.15) |
1.57 |
3.29 |
Distributions from net investment income |
- |
-J |
- |
- |
- |
(.05) |
Distributions from net realized gain |
(.01) |
- |
- |
- |
-J |
- |
Total distributions |
(.01) |
-J |
- |
- |
-J |
(.05) |
Net asset value, end of period |
$ 17.47 |
$ 16.54 |
$ 12.79 |
$ 11.07 |
$ 11.22 |
$ 9.65 |
Total ReturnB, C, D |
5.67% |
29.36% |
15.54% |
(1.34)% |
16.31% |
51.79% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions |
1.66%A |
1.72% |
1.94% |
2.08% |
2.08% |
1.81% |
Expenses net of fee waivers, if any |
1.66%A |
1.72% |
1.94% |
2.06% |
2.00% |
1.81% |
Expenses net of all reductions |
1.66%A |
1.71% |
1.93% |
2.05% |
1.99% |
1.81% |
Net investment income (loss) |
.73%A,K |
.13% |
(.20)% |
(.57)% |
(.51)%H |
(.17)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 167 |
$ 160 |
$ 123 |
$ 124 |
$ 129 |
$ 125 |
Portfolio turnover rateG |
141%A |
70% |
64% |
68% |
80% |
88% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.65)%. IExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. JAmount represents less than $.01 per share. K Investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .28%. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 17.91 |
$ 13.86 |
$ 11.88 |
$ 12.00 |
$ 10.31 |
$ 6.73 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D |
.16I |
.18 |
.11 |
.06 |
.05G |
.08 |
Net realized and unrealized gain (loss) |
.95 |
4.02 |
1.87 |
(.09) |
1.74 |
3.52 |
Total from investment operations |
1.11 |
4.20 |
1.98 |
(.03) |
1.79 |
3.60 |
Distributions from net investment income |
(.14) |
(.15) |
- |
(.02) |
(.06) |
(.02) |
Distributions from net realized gain |
(.01) |
- |
- |
(.07) |
(.04) |
- |
Total distributions |
(.15) |
(.15) |
- |
(.09) |
(.10) |
(.02) |
Net asset value, end of period |
$ 18.87 |
$ 17.91 |
$ 13.86 |
$ 11.88 |
$ 12.00 |
$ 10.31 |
Total ReturnB, C |
6.26% |
30.63% |
16.67% |
(.33)% |
17.47% |
53.57% |
Ratios to Average Net Assets E, H |
|
|
|
|
|
|
Expenses before reductions |
.66%A |
.70% |
.91% |
1.04% |
1.03% |
.70% |
Expenses net of fee waivers, if any |
.66%A |
.70% |
.91% |
1.03% |
1.00% |
.70% |
Expenses net of all reductions |
.66%A |
.69% |
.90% |
1.02% |
.99% |
.69% |
Net investment income (loss) |
1.74%A,I |
1.15% |
.83% |
.46% |
.49%G |
.94% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 123 |
$ 135 |
$ 103 |
$ 83 |
$ 73 |
$ 66 |
Portfolio turnover rateF |
141%A |
70% |
64% |
68% |
80% |
88% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DCalculated based on average shares outstanding during the period. EFees 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. FAmount does not include the portfolio activity of any underlying Fidelity Central Funds. GInvestment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .35%. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. IInvestment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.28%. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Year ended |
|
(Unaudited) |
2013 G |
Selected Per-Share Data |
|
|
Net asset value, beginning of period |
$ 17.92 |
$ 16.59 |
Income from Investment Operations |
|
|
Net investment income (loss) D |
.17J |
.06 |
Net realized and unrealized gain (loss) |
.95 |
1.27 |
Total from investment operations |
1.12 |
1.33 |
Distributions from net investment income |
(.17) |
- |
Distributions from net realized gain |
(.01) |
- |
Total distributions |
(.17)I |
- |
Net asset value, end of period |
$ 18.87 |
$ 17.92 |
Total ReturnB, C |
6.35% |
8.02% |
Ratios to Average Net Assets E, H |
|
|
Expenses before reductions |
.49%A |
.54%A |
Expenses net of fee waivers, if any |
.49%A |
.54%A |
Expenses net of all reductions |
.49%A |
.52%A |
Net investment income (loss) |
1.91%A,J |
1.26% |
Supplemental Data |
|
|
Net assets, end of period (000 omitted) |
$ - |
$ 7 |
Portfolio turnover rateF |
141%A |
70% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DCalculated based on average shares outstanding during the period. EFees 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. FAmount does not include the portfolio activity of any underlying Fidelity Central Funds. GFor the period August 13, 2013 (commencement of sale of shares) to November 30, 2013. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. ITotal distributions of $.17 per share is comprised of distributions from net investment income of $.166 and distributions from net realized gain of $.007 per share. JInvestment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.45%. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
For the period ended May 31, 2014 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor® Dividend Growth Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, Institutional Class and Class Z shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds 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:
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds, preferred securities and U.S. government and government agency obligations are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded and are categorized as Level 1 in the hierarchy. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of May 31, 2014, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), market discount, partnerships, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation |
$ 184,521 |
Gross unrealized depreciation |
(13,324) |
Net unrealized appreciation (depreciation) on securities and other investments |
$ 171,197 |
Tax cost |
$ 885,183 |
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
Semiannual Report
4. Derivative Instruments - continued
Risk Exposures and the Use of Derivative Instruments - continued
The Fund used derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
The Fund's use of derivatives increased or decreased its exposure to the following risk:
Equity Risk |
Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Counterparty credit risk related to exchange-traded futures contracts may be mitigated by the protection provided by the exchange on which they trade.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent daily payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable, if any, is included in daily variation margin for derivative instruments in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
4. Derivative Instruments - continued
Futures Contracts - continued
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts." The underlying face amount at value reflects each contract's exposure to the underlying instrument or index at period end and is representative of volume of activity during the period. Securities deposited to meet initial margin requirements are identified in the Schedule of Investments.
During the period the Fund recognized net realized gain (loss) of eight hundred and sixty three dollars and a change in net unrealized appreciation (depreciation) of three hundred and forty three dollars related to its investment in futures contracts. These amounts are included in the Statement of Operations.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $713,163 and $792,684, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of the Institutional Class of the Fund as compared to its benchmark index, the S&P 500® Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .37% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
|
Distribution |
Service |
Total Fees |
Retained |
Class A |
-% |
.25% |
$ 454 |
$ 9 |
Class T |
.25% |
.25% |
937 |
7 |
Class B |
.75% |
.25% |
67 |
51 |
Class C |
.75% |
.25% |
810 |
69 |
|
|
|
$ 2,268 |
$ 136 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
|
Retained |
Class A |
$ 45 |
Class T |
10 |
Class B* |
4 |
Class C* |
3 |
|
$ 62 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund, except for Class Z. FIIOC receives an asset-based fee of Class Z's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
|
Amount |
% of |
Class A |
$ 399 |
.22 |
Class T |
378 |
.20 |
Class B |
20 |
.30 |
Class C |
177 |
.22 |
Institutional Class |
126 |
.22 |
Class Z |
2 |
.05 |
|
$ 1,102 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $15 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $1 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Semiannual Report
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. At period end, there were no security loans outstanding with FCM. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $63, including $3 from securities loaned to FCM.
9. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $11 for the period.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
|
Six months ended |
Year ended |
From net investment income |
|
|
Class A |
$ 1,902 |
$ 2,287 |
Class T |
1,201 |
1,666 |
Class C |
- |
38 |
Institutional Class |
1,071 |
1,102 |
Class Z |
68 |
- |
Total |
$ 4,242 |
$ 5,093 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
10. Distributions to Shareholders - continued
|
Six months ended |
Year ended |
From net realized gain |
|
|
Class A |
$ 147 |
$ - |
Class T |
152 |
- |
Class B |
6 |
- |
Class C |
68 |
- |
Institutional Class |
44 |
- |
Class Z |
3 |
- |
Total |
$ 420 |
$ - |
A Distributions for Class Z are for the period August 13, 2013 (commencement of sale of shares) to November 30, 2013.
11. Share Transactions.
Transactions for each class of shares were as follows:
|
Shares |
Dollars |
||
|
Six months ended May 31, |
Year ended |
Six months ended May 31, |
Year ended |
Class A |
|
|
|
|
Shares sold |
1,400 |
3,250 |
$ 24,360 |
$ 49,173 |
Reinvestment of distributions |
107 |
152 |
1,806 |
2,006 |
Shares redeemed |
(2,583) |
(4,572) |
(45,054) |
(69,790) |
Net increase (decrease) |
(1,076) |
(1,170) |
$ (18,888) |
$ (18,611) |
Class T |
|
|
|
|
Shares sold |
1,991 |
4,665 |
$ 34,556 |
$ 69,969 |
Reinvestment of distributions |
77 |
122 |
1,302 |
1,600 |
Shares redeemed |
(2,680) |
(5,859) |
(46,453) |
(87,860) |
Net increase (decrease) |
(612) |
(1,072) |
$ (10,595) |
$ (16,291) |
Class B |
|
|
|
|
Shares sold |
23 |
81 |
$ 374 |
$ 1,199 |
Reinvestment of distributions |
0 * |
- |
5 |
- |
Shares redeemed |
(202) |
(486) |
(3,384) |
(7,004) |
Net increase (decrease) |
(179) |
(405) |
$ (3,005) |
$ (5,805) |
Class C |
|
|
|
|
Shares sold |
581 |
1,435 |
$ 9,731 |
$ 21,000 |
Reinvestment of distributions |
3 |
3 |
58 |
32 |
Shares redeemed |
(669) |
(1,415) |
(11,239) |
(20,479) |
Net increase (decrease) |
(85) |
23 |
$ (1,450) |
$ 553 |
Institutional Class |
|
|
|
|
Shares sold |
896 |
1,599 |
$ 16,196 |
$ 25,325 |
Reinvestment of distributions |
59 |
75 |
1,027 |
1,032 |
Shares redeemed |
(2,009) |
(1,526) |
(35,555) |
(24,057) |
Net increase (decrease) |
(1,054) |
148 |
$ (18,332) |
$ 2,300 |
Semiannual Report
11. Share Transactions - continued
|
Shares |
Dollars |
||
|
Six months ended May 31, |
Year ended |
Six months ended May 31, |
Year ended |
Class Z |
|
|
|
|
Shares sold |
23 |
420 |
$ 420 |
$ 7,441 |
Reinvestment of distributions |
4 |
- |
71 |
- |
Shares redeemed |
(434) |
(7) |
(7,937) |
(116) |
Net increase (decrease) |
(407) |
413 |
$ (7,446) |
$ 7,325 |
A Share transactions for Class Z are for the period August 13, 2013 (commencement of sale of shares) to November 30, 2013.
* Amount represents less than 1,000 shares.
12. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
State Street Bank and Trust Company
Quincy, MA
(Fidelity Investment logo)(registered trademark)
ADGFZ-USAN-0714 1.9585504.100
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Equity Growth
Fund - Institutional Class
Semiannual Report
May 31, 2014
(Fidelity Cover Art)
Shareholder Expense Example |
An example of shareholder expenses. |
|
Investment Changes |
A summary of major shifts in the fund's investments over the past six months. |
|
Investments |
A complete list of the fund's investments with their market values. |
|
Financial Statements |
Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
|
Notes |
Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (December 1, 2013 to May 31, 2014).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
|
Annualized |
Beginning |
Ending |
Expenses Paid |
Class A |
1.07% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,072.20 |
$ 5.53 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,019.60 |
$ 5.39 |
Class T |
1.28% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,071.20 |
$ 6.61 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,018.55 |
$ 6.44 |
Class B |
1.89% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,068.00 |
$ 9.74 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,015.51 |
$ 9.50 |
Class C |
1.82% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,068.40 |
$ 9.39 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,015.86 |
$ 9.15 |
Institutional Class |
.77% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,073.90 |
$ 3.98 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,021.09 |
$ 3.88 |
Class Z |
.63% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,074.70 |
$ 3.26 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,021.79 |
$ 3.18 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
Semiannual Report
Top Ten Stocks as of May 31, 2014 |
||
|
% of fund's |
% of fund's net assets |
Facebook, Inc. Class A |
7.6 |
5.9 |
Gilead Sciences, Inc. |
4.3 |
1.4 |
Keurig Green Mountain, Inc. |
3.5 |
2.3 |
Harley-Davidson, Inc. |
3.2 |
3.0 |
Microsoft Corp. |
3.2 |
3.2 |
Google, Inc. Class A |
2.5 |
3.8 |
Google, Inc. Class C |
2.5 |
0.0 |
Apple, Inc. |
2.3 |
2.6 |
Danaher Corp. |
2.0 |
1.3 |
Actavis PLC |
1.9 |
1.1 |
|
33.0 |
|
Top Five Market Sectors as of May 31, 2014 |
||
|
% of fund's |
% of fund's net assets |
Information Technology |
29.2 |
27.5 |
Consumer Discretionary |
16.1 |
20.4 |
Health Care |
13.8 |
16.9 |
Industrials |
11.1 |
7.4 |
Consumer Staples |
9.6 |
9.1 |
Asset Allocation (% of fund's net assets) |
|||||||
As of May 31, 2014* |
As of November 30, 2013** |
||||||
Stocks 97.5% |
|
Stocks 98.0% |
|
||||
Convertible |
|
Convertible |
|
||||
Short-Term |
|
Short-Term |
|
||||
* Foreign investments |
11.1% |
|
** Foreign investments |
12.3% |
|
Semiannual Report
Showing Percentage of Net Assets
Common Stocks - 97.5% |
|||
Shares |
Value (000s) |
||
CONSUMER DISCRETIONARY - 16.0% |
|||
Automobiles - 4.1% |
|||
Harley-Davidson, Inc. |
1,631,954 |
$ 116,260 |
|
Tesla Motors, Inc. (a)(d) |
159,863 |
33,215 |
|
|
149,475 |
||
Distributors - 0.3% |
|||
LKQ Corp. (a) |
327,600 |
9,088 |
|
Diversified Consumer Services - 0.8% |
|||
Anhanguera Educacional Participacoes SA |
1,851,978 |
13,309 |
|
Bright Horizons Family Solutions, Inc. (a) |
183,700 |
7,161 |
|
H&R Block, Inc. |
316,752 |
9,433 |
|
|
29,903 |
||
Hotels, Restaurants & Leisure - 3.4% |
|||
Chipotle Mexican Grill, Inc. (a) |
26,485 |
14,490 |
|
Dunkin' Brands Group, Inc. |
452,136 |
20,238 |
|
Las Vegas Sands Corp. |
99,300 |
7,598 |
|
Starbucks Corp. |
659,401 |
48,295 |
|
Yum! Brands, Inc. |
444,579 |
34,370 |
|
|
124,991 |
||
Household Durables - 0.3% |
|||
Mohawk Industries, Inc. (a) |
80,416 |
10,909 |
|
Internet & Catalog Retail - 1.0% |
|||
Amazon.com, Inc. (a) |
56,834 |
17,763 |
|
TripAdvisor, Inc. (a) |
182,864 |
17,769 |
|
|
35,532 |
||
Leisure Products - 0.1% |
|||
NJOY, Inc. (a)(e) |
202,642 |
3,430 |
|
Media - 0.8% |
|||
Comcast Corp. Class A (special) (non-vtg.) |
548,938 |
28,457 |
|
Specialty Retail - 3.5% |
|||
CarMax, Inc. (a) |
113,848 |
5,045 |
|
Five Below, Inc. (a) |
127,900 |
4,630 |
|
GNC Holdings, Inc. |
120,300 |
4,441 |
|
Home Depot, Inc. |
840,444 |
67,429 |
|
TJX Companies, Inc. |
137,559 |
7,490 |
|
Ulta Salon, Cosmetics & Fragrance, Inc. (a) |
178,852 |
15,185 |
|
Urban Outfitters, Inc. (a) |
697,443 |
23,378 |
|
|
127,598 |
||
Textiles, Apparel & Luxury Goods - 1.7% |
|||
ECLAT Textile Co. Ltd. |
1,033,560 |
10,668 |
|
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
CONSUMER DISCRETIONARY - continued |
|||
Textiles, Apparel & Luxury Goods - continued |
|||
Michael Kors Holdings Ltd. (a) |
204,197 |
$ 19,272 |
|
NIKE, Inc. Class B |
419,457 |
32,260 |
|
|
62,200 |
||
TOTAL CONSUMER DISCRETIONARY |
581,583 |
||
CONSUMER STAPLES - 9.6% |
|||
Beverages - 1.3% |
|||
Monster Beverage Corp. (a) |
104,840 |
7,274 |
|
SABMiller PLC |
372,034 |
20,648 |
|
The Coca-Cola Co. |
426,326 |
17,441 |
|
|
45,363 |
||
Food & Staples Retailing - 0.9% |
|||
Costco Wholesale Corp. |
166,200 |
19,283 |
|
Sprouts Farmers Market LLC |
48,315 |
1,309 |
|
Whole Foods Market, Inc. |
357,383 |
13,666 |
|
|
34,258 |
||
Food Products - 4.7% |
|||
Keurig Green Mountain, Inc. |
1,102,591 |
124,350 |
|
Mead Johnson Nutrition Co. Class A |
252,185 |
22,563 |
|
The Hershey Co. |
232,859 |
22,666 |
|
|
169,579 |
||
Household Products - 1.8% |
|||
Procter & Gamble Co. |
794,591 |
64,195 |
|
Personal Products - 0.9% |
|||
Estee Lauder Companies, Inc. Class A |
77,200 |
5,915 |
|
Herbalife Ltd. |
428,966 |
27,810 |
|
|
33,725 |
||
TOTAL CONSUMER STAPLES |
347,120 |
||
ENERGY - 4.3% |
|||
Energy Equipment & Services - 2.0% |
|||
Dril-Quip, Inc. (a) |
126,730 |
12,954 |
|
Halliburton Co. |
150,800 |
9,748 |
|
Oceaneering International, Inc. |
324,370 |
23,371 |
|
Pason Systems, Inc. |
417,050 |
11,366 |
|
RigNet, Inc. (a) |
325,698 |
15,445 |
|
|
72,884 |
||
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
ENERGY - continued |
|||
Oil, Gas & Consumable Fuels - 2.3% |
|||
Cheniere Energy, Inc. (a) |
156,900 |
$ 10,686 |
|
Continental Resources, Inc. (a) |
158,710 |
22,277 |
|
EOG Resources, Inc. |
170,800 |
18,071 |
|
EQT Midstream Partners LP |
13,000 |
1,068 |
|
Noble Energy, Inc. |
133,000 |
9,585 |
|
Phillips 66 Partners LP |
10,000 |
606 |
|
Pioneer Natural Resources Co. |
83,502 |
17,549 |
|
Targa Resources Corp. |
28,800 |
3,311 |
|
|
83,153 |
||
TOTAL ENERGY |
156,037 |
||
FINANCIALS - 8.0% |
|||
Banks - 1.1% |
|||
HDFC Bank Ltd. sponsored ADR |
866,396 |
39,014 |
|
Capital Markets - 5.1% |
|||
BlackRock, Inc. Class A |
72,600 |
22,136 |
|
E*TRADE Financial Corp. (a) |
1,217,511 |
24,801 |
|
Fortress Investment Group LLC |
497,300 |
3,531 |
|
Harvest Capital Credit Corp. |
82,524 |
1,197 |
|
Invesco Ltd. |
1,044,123 |
38,319 |
|
KKR & Co. LP |
463,304 |
10,531 |
|
Legg Mason, Inc. |
306,058 |
14,948 |
|
The Blackstone Group LP |
2,222,233 |
69,067 |
|
|
184,530 |
||
Consumer Finance - 0.7% |
|||
American Express Co. |
216,823 |
19,839 |
|
Shriram Transport Finance Co. Ltd. |
368,982 |
5,904 |
|
|
25,743 |
||
Diversified Financial Services - 0.9% |
|||
Berkshire Hathaway, Inc. Class B (a) |
73,900 |
9,484 |
|
McGraw Hill Financial, Inc. |
271,175 |
22,174 |
|
|
31,658 |
||
Real Estate Management & Development - 0.2% |
|||
Leopalace21 Corp. (a) |
248,300 |
1,135 |
|
Realogy Holdings Corp. (a) |
203,881 |
7,580 |
|
|
8,715 |
||
TOTAL FINANCIALS |
289,660 |
||
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
HEALTH CARE - 13.8% |
|||
Biotechnology - 8.8% |
|||
Acceleron Pharma, Inc. |
146,400 |
$ 4,345 |
|
Actelion Ltd. |
56,084 |
5,574 |
|
Alexion Pharmaceuticals, Inc. (a) |
162,725 |
27,064 |
|
Biogen Idec, Inc. (a) |
216,216 |
69,053 |
|
BioMarin Pharmaceutical, Inc. (a) |
271,279 |
15,723 |
|
Cytokinetics, Inc. warrants 6/25/17 (a) |
856,620 |
25 |
|
Enanta Pharmaceuticals, Inc. (a)(d) |
319,656 |
12,141 |
|
Gilead Sciences, Inc. (a) |
1,920,947 |
156,000 |
|
Insmed, Inc. (a) |
887,520 |
11,662 |
|
Kamada (a)(d) |
429,983 |
3,444 |
|
Ophthotech Corp. |
152,216 |
6,195 |
|
uniQure B.V. |
100,900 |
873 |
|
Vanda Pharmaceuticals, Inc. (a) |
623,542 |
6,416 |
|
|
318,515 |
||
Health Care Equipment & Supplies - 0.5% |
|||
AxoGen, Inc. (a) |
160,469 |
404 |
|
GI Dynamics, Inc. CDI (a) |
547,818 |
278 |
|
The Cooper Companies, Inc. |
145,993 |
18,836 |
|
|
19,518 |
||
Health Care Providers & Services - 0.4% |
|||
Apollo Hospitals Enterprise Ltd. |
372,049 |
5,705 |
|
Qualicorp SA (a) |
764,500 |
8,053 |
|
|
13,758 |
||
Health Care Technology - 0.1% |
|||
Cerner Corp. (a) |
107,000 |
5,783 |
|
Life Sciences Tools & Services - 0.8% |
|||
Illumina, Inc. (a) |
177,598 |
28,105 |
|
Pharmaceuticals - 3.2% |
|||
AbbVie, Inc. |
460,251 |
25,005 |
|
Actavis PLC (a) |
335,957 |
71,068 |
|
AVANIR Pharmaceuticals Class A (a) |
449,144 |
2,371 |
|
Perrigo Co. PLC |
125,091 |
17,288 |
|
|
115,732 |
||
TOTAL HEALTH CARE |
501,411 |
||
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
INDUSTRIALS - 11.1% |
|||
Aerospace & Defense - 2.7% |
|||
TransDigm Group, Inc. |
168,677 |
$ 31,831 |
|
United Technologies Corp. |
578,711 |
67,258 |
|
|
99,089 |
||
Airlines - 0.2% |
|||
Ryanair Holdings PLC sponsored ADR (a) |
113,180 |
6,435 |
|
Building Products - 0.3% |
|||
A.O. Smith Corp. |
212,338 |
10,485 |
|
Commercial Services & Supplies - 0.6% |
|||
KAR Auction Services, Inc. |
656,967 |
20,064 |
|
Construction & Engineering - 0.5% |
|||
Jacobs Engineering Group, Inc. (a) |
305,615 |
16,830 |
|
MasTec, Inc. (a) |
58,800 |
2,117 |
|
|
18,947 |
||
Electrical Equipment - 0.6% |
|||
AMETEK, Inc. |
268,355 |
14,244 |
|
Power Solutions International, Inc. (a) |
103,136 |
8,044 |
|
|
22,288 |
||
Industrial Conglomerates - 2.5% |
|||
Danaher Corp. |
929,214 |
72,878 |
|
Roper Industries, Inc. |
134,969 |
19,122 |
|
|
92,000 |
||
Machinery - 2.3% |
|||
Allison Transmission Holdings, Inc. |
489,200 |
15,151 |
|
Caterpillar, Inc. |
268,363 |
27,435 |
|
Manitowoc Co., Inc. |
1,119,948 |
30,295 |
|
Sarine Technologies Ltd. |
1,701,000 |
3,675 |
|
Sun Hydraulics Corp. |
45,000 |
1,661 |
|
Weg SA |
371,280 |
4,311 |
|
|
82,528 |
||
Professional Services - 0.8% |
|||
Equifax, Inc. |
117,071 |
8,287 |
|
Verisk Analytics, Inc. (a) |
321,529 |
19,031 |
|
|
27,318 |
||
Road & Rail - 0.6% |
|||
J.B. Hunt Transport Services, Inc. |
277,000 |
21,512 |
|
TOTAL INDUSTRIALS |
400,666 |
||
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
INFORMATION TECHNOLOGY - 29.2% |
|||
Communications Equipment - 0.5% |
|||
QUALCOMM, Inc. |
222,400 |
$ 17,892 |
|
Electronic Equipment & Components - 0.7% |
|||
TE Connectivity Ltd. |
429,023 |
25,510 |
|
Internet Software & Services - 15.7% |
|||
Cornerstone OnDemand, Inc. (a) |
200,132 |
8,043 |
|
CoStar Group, Inc. (a) |
30,100 |
4,772 |
|
Cvent, Inc. |
457,278 |
11,441 |
|
Demandware, Inc. (a) |
143,000 |
8,707 |
|
Facebook, Inc. Class A (a) |
4,321,000 |
273,518 |
|
Google, Inc.: |
|
|
|
Class A (a) |
160,150 |
91,550 |
|
Class C (a) |
160,150 |
89,841 |
|
Naver Corp. |
35,174 |
26,121 |
|
SPS Commerce, Inc. (a) |
195,299 |
11,111 |
|
Textura Corp. (d) |
841,889 |
17,621 |
|
Xoom Corp. (a) |
57,100 |
1,268 |
|
Yahoo!, Inc. (a) |
763,753 |
26,464 |
|
|
570,457 |
||
IT Services - 2.2% |
|||
Gartner, Inc. Class A (a) |
198,160 |
14,087 |
|
Visa, Inc. Class A |
299,408 |
64,322 |
|
|
78,409 |
||
Semiconductors & Semiconductor Equipment - 0.2% |
|||
MediaTek, Inc. |
521,000 |
8,448 |
|
Software - 7.6% |
|||
Activision Blizzard, Inc. |
87,600 |
1,820 |
|
ANSYS, Inc. (a) |
4,168 |
306 |
|
Computer Modelling Group Ltd. |
432,800 |
11,971 |
|
Diligent Board Member Services, Inc. (a) |
12,137 |
43 |
|
Electronic Arts, Inc. (a) |
962,645 |
33,818 |
|
Fleetmatics Group PLC (a) |
124,200 |
3,540 |
|
Microsoft Corp. |
2,815,100 |
115,250 |
|
salesforce.com, Inc. (a) |
1,126,092 |
59,266 |
|
ServiceNow, Inc. (a) |
85,100 |
4,452 |
|
SolarWinds, Inc. (a) |
233,812 |
9,140 |
|
Solera Holdings, Inc. |
61,100 |
3,987 |
|
SS&C Technologies Holdings, Inc. (a) |
620,646 |
26,471 |
|
The Rubicon Project, Inc. (d) |
289,182 |
3,670 |
|
|
273,734 |
||
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
INFORMATION TECHNOLOGY - continued |
|||
Technology Hardware, Storage & Peripherals - 2.3% |
|||
Apple, Inc. |
131,361 |
$ 83,152 |
|
TOTAL INFORMATION TECHNOLOGY |
1,057,602 |
||
MATERIALS - 4.7% |
|||
Chemicals - 2.2% |
|||
FMC Corp. |
291,153 |
22,291 |
|
Monsanto Co. |
216,163 |
26,339 |
|
Sherwin-Williams Co. |
142,145 |
29,084 |
|
|
77,714 |
||
Construction Materials - 2.5% |
|||
Eagle Materials, Inc. |
601,850 |
52,343 |
|
James Hardie Industries PLC sponsored ADR |
164,473 |
11,000 |
|
Vulcan Materials Co. |
471,130 |
28,725 |
|
|
92,068 |
||
TOTAL MATERIALS |
169,782 |
||
TELECOMMUNICATION SERVICES - 0.2% |
|||
Diversified Telecommunication Services - 0.2% |
|||
8x8, Inc. (a) |
867,708 |
6,525 |
|
UTILITIES - 0.6% |
|||
Electric Utilities - 0.6% |
|||
ITC Holdings Corp. |
630,289 |
23,069 |
|
TOTAL COMMON STOCKS (Cost $2,718,813) |
|
||
Convertible Preferred Stocks - 0.1% |
|||
|
|
|
|
CONSUMER DISCRETIONARY - 0.1% |
|||
Household Durables - 0.1% |
|||
Blu Homes, Inc. Series A, 5.00% (e) (Cost $4,044) |
875,350 |
|
|
Money Market Funds - 2.9% |
|||
Shares |
Value (000s) |
||
Fidelity Cash Central Fund, 0.10% (b) |
58,215,913 |
$ 58,216 |
|
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) |
48,198,050 |
48,198 |
|
TOTAL MONEY MARKET FUNDS (Cost $106,414) |
|
||
TOTAL INVESTMENT PORTFOLIO - 100.5% (Cost $2,829,271) |
3,643,913 |
||
NET OTHER ASSETS (LIABILITIES) - (0.5)% |
(19,631) |
||
NET ASSETS - 100% |
$ 3,624,282 |
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) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $7,474,000 or 0.2% of net assets. |
Additional information on each restricted holding is as follows: |
Security |
Acquisition Date |
Acquisition Cost (000s) |
Blu Homes, Inc. Series A, 5.00% |
6/21/13 |
$ 4,044 |
NJOY, Inc. |
9/11/13 |
$ 1,637 |
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 |
$ 34 |
Fidelity Securities Lending Cash Central Fund |
388 |
Total |
$ 422 |
Other Information |
The following is a summary of the inputs used, as of May 31, 2014, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
||||
Description |
Total |
Level 1 |
Level 2 |
Level 3 |
Investments in Securities: |
||||
Equities: |
||||
Consumer Discretionary |
$ 585,627 |
$ 578,153 |
$ - |
$ 7,474 |
Consumer Staples |
347,120 |
347,120 |
- |
- |
Energy |
156,037 |
156,037 |
- |
- |
Financials |
289,660 |
288,525 |
1,135 |
- |
Health Care |
501,411 |
501,386 |
25 |
- |
Industrials |
400,666 |
400,666 |
- |
- |
Information Technology |
1,057,602 |
1,057,602 |
- |
- |
Materials |
169,782 |
169,782 |
- |
- |
Telecommunication Services |
6,525 |
6,525 |
- |
- |
Utilities |
23,069 |
23,069 |
- |
- |
Money Market Funds |
106,414 |
106,414 |
- |
- |
Total Investments in Securities: |
$ 3,643,913 |
$ 3,635,279 |
$ 1,160 |
$ 7,474 |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited): |
United States of America |
88.9% |
Ireland |
3.0% |
India |
1.5% |
Bermuda |
1.1% |
Others (Individually Less Than 1%) |
5.5% |
|
100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Amounts in thousands (except per-share amounts) |
May 31, 2014 (Unaudited) |
|
|
|
|
Assets |
|
|
Investment in securities, at value (including securities loaned of $46,425) - See accompanying schedule: Unaffiliated issuers (cost $2,722,857) |
$ 3,537,499 |
|
Fidelity Central Funds (cost $106,414) |
106,414 |
|
Total Investments (cost $2,829,271) |
|
$ 3,643,913 |
Cash |
|
91 |
Receivable for investments sold |
|
48,410 |
Receivable for fund shares sold |
|
1,374 |
Dividends receivable |
|
2,811 |
Distributions receivable from Fidelity Central Funds |
|
109 |
Prepaid expenses |
|
1 |
Other receivables |
|
159 |
Total assets |
|
3,696,868 |
|
|
|
Liabilities |
|
|
Payable for investments purchased |
$ 15,994 |
|
Payable for fund shares redeemed |
5,027 |
|
Accrued management fee |
1,628 |
|
Distribution and service plan fees payable |
849 |
|
Other affiliated payables |
675 |
|
Other payables and accrued expenses |
215 |
|
Collateral on securities loaned, at value |
48,198 |
|
Total liabilities |
|
72,586 |
|
|
|
Net Assets |
|
$ 3,624,282 |
Net Assets consist of: |
|
|
Paid in capital |
|
$ 3,061,219 |
Accumulated net investment loss |
|
(7,091) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions |
|
(244,468) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies |
|
814,622 |
Net Assets |
|
$ 3,624,282 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Amounts in thousands (except per-share amounts) |
May 31, 2014 (Unaudited) |
|
|
|
|
Calculation of Maximum Offering Price Class A: |
|
$ 86.71 |
|
|
|
Maximum offering price per share (100/94.25 of $86.71) |
|
$ 92.00 |
Class T: |
|
$ 86.03 |
|
|
|
Maximum offering price per share (100/96.50 of $86.03) |
|
$ 89.15 |
Class B: |
|
$ 76.80 |
|
|
|
Class C: |
|
$ 78.13 |
|
|
|
Institutional Class: |
|
$ 92.70 |
|
|
|
Class Z: |
|
$ 92.81 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Amounts in thousands Six months ended May 31, 2014 (Unaudited) |
||
|
|
|
Investment Income |
|
|
Dividends |
|
$ 16,305 |
Income from Fidelity Central Funds |
|
422 |
Total income |
|
16,727 |
|
|
|
Expenses |
|
|
Management fee |
$ 9,946 |
|
Transfer agent fees |
3,548 |
|
Distribution and service plan fees |
5,203 |
|
Accounting and security lending fees |
523 |
|
Custodian fees and expenses |
64 |
|
Independent trustees' compensation |
8 |
|
Registration fees |
66 |
|
Audit |
37 |
|
Legal |
10 |
|
Interest |
1 |
|
Miscellaneous |
14 |
|
Total expenses before reductions |
19,420 |
|
Expense reductions |
(38) |
19,382 |
Net investment income (loss) |
|
(2,655) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: |
|
|
Investment securities: |
|
|
Unaffiliated issuers |
267,292 |
|
Foreign currency transactions |
(283) |
|
Total net realized gain (loss) |
|
267,009 |
Change in net unrealized appreciation (depreciation) on: Investment securities |
(17,027) |
|
Assets and liabilities in foreign currencies |
(19) |
|
Total change in net unrealized appreciation (depreciation) |
|
(17,046) |
Net gain (loss) |
|
249,963 |
Net increase (decrease) in net assets resulting from operations |
|
$ 247,308 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Amounts in thousands |
Six months ended May 31, 2014 |
Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) |
$ (2,655) |
$ (1,083) |
Net realized gain (loss) |
267,009 |
645,979 |
Change in net unrealized appreciation (depreciation) |
(17,046) |
266,591 |
Net increase (decrease) in net assets resulting from operations |
247,308 |
911,487 |
Distributions to shareholders from net investment income |
- |
(3,311) |
Share transactions - net increase (decrease) |
(124,999) |
(367,790) |
Total increase (decrease) in net assets |
122,309 |
540,386 |
|
|
|
Net Assets |
|
|
Beginning of period |
3,501,973 |
2,961,587 |
End of period (including accumulated net investment loss of $7,091 and accumulated net investment loss of $4,436, respectively) |
$ 3,624,282 |
$ 3,501,973 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 80.87 |
$ 61.77 |
$ 54.56 |
$ 50.75 |
$ 42.07 |
$ 34.36 |
Income from Investment |
|
|
|
|
|
|
Net investment income (loss) E |
(.06) |
(.05) |
.02 |
(.04) |
(.14) |
(.01) |
Net realized and unrealized gain (loss) |
5.90 |
19.15 |
7.30 |
3.90 |
8.82 |
7.79 |
Total from investment operations |
5.84 |
19.10 |
7.32 |
3.86 |
8.68 |
7.78 |
Distributions from net investment income |
- |
- |
- |
- |
- |
(.06) |
Distributions from net realized gain |
- |
- |
(.11) |
(.05) |
- |
(.02) |
Total distributions |
- |
- |
(.11) |
(.05) |
- |
(.07) I |
Net asset value, end of period |
$ 86.71 |
$ 80.87 |
$ 61.77 |
$ 54.56 |
$ 50.75 |
$ 42.07 |
Total Return B, C, D |
7.22% |
30.92% |
13.45% |
7.61% |
20.63% |
22.71% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions |
1.07% A |
1.11% |
1.14% |
1.15% |
1.16% |
1.19% |
Expenses net of fee waivers, if any |
1.07% A |
1.11% |
1.14% |
1.15% |
1.16% |
1.19% |
Expenses net of all reductions |
1.07% A |
1.10% |
1.14% |
1.14% |
1.15% |
1.18% |
Net investment income (loss) |
(.15)% A |
(.07)% |
.04% |
(.08)% |
(.31)% |
(.04)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 794 |
$ 772 |
$ 632 |
$ 609 |
$ 636 |
$ 640 |
Portfolio turnover rate G |
49% A |
81% |
73% |
70% |
71% |
135% |
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 Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Total distributions of $.07 per share is comprised of distributions from net investment income of $.059 and distributions from net realized gain of $.015 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 80.31 |
$ 61.45 |
$ 54.26 |
$ 50.51 |
$ 41.94 |
$ 34.25 |
Income from Investment |
|
|
|
|
|
|
Net investment income (loss) E |
(.15) |
(.17) |
(.08) |
(.14) |
(.22) |
(.09) |
Net realized and unrealized gain (loss) |
5.87 |
19.03 |
7.27 |
3.89 |
8.79 |
7.78 |
Total from investment operations |
5.72 |
18.86 |
7.19 |
3.75 |
8.57 |
7.69 |
Net asset value, end of period |
$ 86.03 |
$ 80.31 |
$ 61.45 |
$ 54.26 |
$ 50.51 |
$ 41.94 |
Total Return B, C, D |
7.12% |
30.69% |
13.25% |
7.42% |
20.43% |
22.45% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions |
1.28% A |
1.29% |
1.31% |
1.32% |
1.34% |
1.39% |
Expenses net of fee waivers, if any |
1.28% A |
1.29% |
1.31% |
1.32% |
1.34% |
1.39% |
Expenses net of all reductions |
1.28% A |
1.28% |
1.31% |
1.31% |
1.33% |
1.39% |
Net investment income (loss) |
(.35)% A |
(.25)% |
(.13)% |
(.25)% |
(.48)% |
(.24)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 1,314 |
$ 1,283 |
$ 1,108 |
$ 1,139 |
$ 1,246 |
$ 1,268 |
Portfolio turnover rate G |
49% A |
81% |
73% |
70% |
71% |
135% |
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 Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 71.91 |
$ 55.36 |
$ 49.17 |
$ 46.04 |
$ 38.45 |
$ 31.57 |
Income from Investment |
|
|
|
|
|
|
Net investment income (loss) E |
(.36) |
(.52) |
(.39) |
(.42) |
(.44) |
(.26) |
Net realized and unrealized gain (loss) |
5.25 |
17.07 |
6.58 |
3.55 |
8.03 |
7.14 |
Total from investment operations |
4.89 |
16.55 |
6.19 |
3.13 |
7.59 |
6.88 |
Net asset value, end of period |
$ 76.80 |
$ 71.91 |
$ 55.36 |
$ 49.17 |
$ 46.04 |
$ 38.45 |
Total Return B, C, D |
6.80% |
29.90% |
12.59% |
6.80% |
19.74% |
21.79% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions |
1.89% A |
1.89% |
1.90% |
1.90% |
1.91% |
1.94% |
Expenses net of fee waivers, if any |
1.89% A |
1.89% |
1.90% |
1.90% |
1.91% |
1.94% |
Expenses net of all reductions |
1.89% A |
1.88% |
1.90% |
1.90% |
1.91% |
1.93% |
Net investment income (loss) |
(.97)% A |
(.85)% |
(.72)% |
(.83)% |
(1.06)% |
(.79)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 20 |
$ 23 |
$ 26 |
$ 35 |
$ 54 |
$ 70 |
Portfolio turnover rate G |
49% A |
81% |
73% |
70% |
71% |
135% |
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 Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 73.13 |
$ 56.27 |
$ 49.96 |
$ 46.77 |
$ 39.05 |
$ 32.06 |
Income from Investment |
|
|
|
|
|
|
Net investment income (loss) E |
(.34) |
(.50) |
(.37) |
(.41) |
(.44) |
(.26) |
Net realized and unrealized gain (loss) |
5.34 |
17.36 |
6.68 |
3.60 |
8.16 |
7.25 |
Total from investment operations |
5.00 |
16.86 |
6.31 |
3.19 |
7.72 |
6.99 |
Net asset value, end of period |
$ 78.13 |
$ 73.13 |
$ 56.27 |
$ 49.96 |
$ 46.77 |
$ 39.05 |
Total Return B, C, D |
6.84% |
29.96% |
12.63% |
6.82% |
19.77% |
21.80% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions |
1.82% A |
1.84% |
1.86% |
1.88% |
1.90% |
1.94% |
Expenses net of fee waivers, if any |
1.82% A |
1.84% |
1.86% |
1.88% |
1.90% |
1.94% |
Expenses net of all reductions |
1.81% A |
1.83% |
1.86% |
1.87% |
1.90% |
1.93% |
Net investment income (loss) |
(.89)% A |
(.79)% |
(.68)% |
(.81)% |
(1.05)% |
(.79)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 163 |
$ 157 |
$ 133 |
$ 136 |
$ 143 |
$ 142 |
Portfolio turnover rate G |
49% A |
81% |
73% |
70% |
71% |
135% |
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 Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 86.32 |
$ 65.92 |
$ 58.24 |
$ 54.14 |
$ 44.71 |
$ 36.61 |
Income from Investment |
|
|
|
|
|
|
Net investment income (loss) D |
.07 |
.20 |
.25 |
.16 |
.02 |
.12 |
Net realized and unrealized gain (loss) |
6.31 |
20.40 |
7.75 |
4.16 |
9.41 |
8.27 |
Total from investment operations |
6.38 |
20.60 |
8.00 |
4.32 |
9.43 |
8.39 |
Distributions from net investment income |
- |
(.20) |
- |
- |
- |
(.27) |
Distributions from net realized gain |
- |
- |
(.32) |
(.22) |
- |
(.02) |
Total distributions |
- |
(.20) |
(.32) |
(.22) |
- |
(.29) H |
Net asset value, end of period |
$ 92.70 |
$ 86.32 |
$ 65.92 |
$ 58.24 |
$ 54.14 |
$ 44.71 |
Total Return B, C |
7.39% |
31.36% |
13.83% |
7.99% |
21.09% |
23.11% |
Ratios to Average Net Assets E, G |
|
|
|
|
|
|
Expenses before reductions |
.77% A |
.78% |
.80% |
.80% |
.80% |
.85% |
Expenses net of fee waivers, if any |
.77% A |
.78% |
.80% |
.80% |
.80% |
.85% |
Expenses net of all reductions |
.77% A |
.77% |
.79% |
.79% |
.80% |
.84% |
Net investment income (loss) |
.16% A |
.27% |
.39% |
.27% |
.05% |
.30% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 1,334 |
$ 1,266 |
$ 1,063 |
$ 897 |
$ 973 |
$ 983 |
Portfolio turnover rate F |
49% A |
81% |
73% |
70% |
71% |
135% |
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Total distributions of $.29 per share is comprised of distributions from net investment income of $.274 and distributions from net realized gain of $.015 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Years ended |
|
(Unaudited) |
2013 G |
Selected Per-Share Data |
|
|
Net asset value, beginning of period |
$ 86.36 |
$ 78.49 |
Income from Investment Operations |
|
|
Net investment income (loss) D |
.13 |
.09 |
Net realized and unrealized gain (loss) |
6.32 |
7.78 |
Total from investment operations |
6.45 |
7.87 |
Net asset value, end of period |
$ 92.81 |
$ 86.36 |
Total ReturnB, C |
7.47% |
10.03% |
Ratios to Average Net Assets E,H |
|
|
Expenses before reductions |
.64% A |
.64% A |
Expenses net of fee waivers, if any |
.64% A |
.64% A |
Expenses net of all reductions |
.63% A |
.63% A |
Net investment income (loss) |
.29% A |
.38% A |
Supplemental Data |
|
|
Net assets, end of period (000 omitted) |
$ 118 |
$ 110 |
Portfolio turnover rate F |
49% A |
81% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period August 13, 2013 (commencement of sale of shares) to November 30, 2013.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
For the period ended May 31, 2014 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor® Equity Growth Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, Institutional Class and Class Z shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds 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
Semiannual Report
3. Significant Accounting Policies - continued
the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Valuation - continued
limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
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 May 31, 2014, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
upon receipt of tax filings or other correspondence relating to the underlying investment. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
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, passive foreign investment companies (PFIC), redemptions in kind, partnerships, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation |
$ 855,050 |
Gross unrealized depreciation |
(50,835) |
Net unrealized appreciation (depreciation) on securities and other investments |
$ 804,215 |
|
|
Tax cost |
$ 2,839,698 |
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.
Fiscal year of expiration |
|
2017 |
$ (503,654) |
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.
Semiannual Report
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $872,566 and $1,019,659, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .55% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services.
For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
|
Distribution |
Service |
Total Fees |
Retained |
Class A |
-% |
.25% |
$ 998 |
$ 24 |
Class T |
.25% |
.25% |
3,290 |
43 |
Class B |
.75% |
.25% |
109 |
82 |
Class C |
.75% |
.25% |
806 |
42 |
|
|
|
$ 5,203 |
$ 191 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
5. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
|
Retained |
Class A |
$ 56 |
Class T |
17 |
Class B* |
6 |
Class C* |
3 |
|
$ 82 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund, except for Class Z. FIIOC receives an asset-based fee of Class Z's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
|
Amount |
% of |
Class A |
$ 930 |
.23 |
Class T |
1,228 |
.19 |
Class B |
33 |
.30 |
Class C |
181 |
.22 |
Institutional Class |
1,176 |
.18 |
Class Z |
-** |
.04 |
|
$ 3,548 |
|
* Annualized
** Amount represents twenty-six dollars.
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $13 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender |
Average Loan |
Weighted Average Interest Rate |
Interest |
Borrower |
$ 12,999 |
.31% |
$ 1 |
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $3 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
7. Security Lending - continued
loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $209. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $388, including $23 from securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $38 for the period.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
|
Six months ended |
Year ended |
From net investment income |
|
|
Institutional Class |
$ - |
$ 3,311 |
10. Share Transactions.
Transactions for each class of shares were as follows:
|
Shares |
Dollars |
||
|
Six months ended May 31, |
Year ended |
Six months ended May 31, |
Year ended |
Class A |
|
|
|
|
Shares sold |
736 |
1,339 |
$ 63,191 |
$ 93,392 |
Shares redeemed |
(1,120) |
(2,021) |
(95,589) |
(140,383) |
Net increase (decrease) |
(384) |
(682) |
$ (32,398) |
$ (46,991) |
Class T |
|
|
|
|
Shares sold |
883 |
1,688 |
$ 74,683 |
$ 116,336 |
Shares redeemed |
(1,594) |
(3,732) |
(134,254) |
(255,751) |
Net increase (decrease) |
(711) |
(2,044) |
$ (59,571) |
$ (139,415) |
Semiannual Report
10. Share Transactions - continued
|
Shares |
Dollars |
||
|
Six months ended May 31, |
Year ended |
Six months ended May 31, |
Year ended |
Class B |
|
|
|
|
Shares sold |
2 |
5 |
$ 101 |
$ 343 |
Shares redeemed |
(63) |
(159) |
(4,726) |
(9,702) |
Net increase (decrease) |
(61) |
(154) |
$ (4,625) |
$ (9,359) |
Class C |
|
|
|
|
Shares sold |
124 |
155 |
$ 9,694 |
$ 9,843 |
Shares redeemed |
(193) |
(367) |
(14,677) |
(22,580) |
Net increase (decrease) |
(69) |
(212) |
$ (4,983) |
$ (12,737) |
Institutional Class |
|
|
|
|
Shares sold |
1,314 |
4,554 |
$ 120,410 |
$ 315,218 |
Reinvestment of distributions |
- |
50 |
- |
3,246 |
Shares redeemed |
(1,597) |
(6,060) B |
(143,832) |
(477,852) B |
Net increase (decrease) |
(283) |
(1,456) |
$ (23,422) |
$ (159,388) |
Class Z |
|
|
|
|
Shares sold |
- |
1 |
$ - |
$ 100 |
Net increase (decrease) |
- |
1 |
$ - |
$ 100 |
A Share transactions for Class Z are for the period August 13, 2013 (commencement of sale of shares) to November 30, 2013.
B Amount includes in-kind redemptions.
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, the Fidelity Advisor Freedom Funds were the owners of record, in the aggregate, of approximately 26% of the total outstanding shares of the Fund.
Effective after the close of business on June 6, 2014, 10,458,435 shares of the Fund held by the Fidelity Advisor Freedom Funds were redeemed for investments with a value of $986,638,301. The Fidelity Advisor Freedom Funds' ownership in the Fund was reduced to 0%. The Fund did not recognize gain or loss for federal income tax purposes.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
JPMorgan Chase Bank
New York, NY
(Fidelity Investment logo)(registered trademark)
EPGI-USAN-0714 1.786784.111
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Equity Growth
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
May 31, 2014
(Fidelity Cover Art)
Shareholder Expense Example |
An example of shareholder expenses. |
|
Investment Changes |
A summary of major shifts in the fund's investments over the past six months. |
|
Investments |
A complete list of the fund's investments with their market values. |
|
Financial Statements |
Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
|
Notes |
Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (December 1, 2013 to May 31, 2014).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
|
Annualized |
Beginning |
Ending |
Expenses Paid |
Class A |
1.07% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,072.20 |
$ 5.53 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,019.60 |
$ 5.39 |
Class T |
1.28% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,071.20 |
$ 6.61 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,018.55 |
$ 6.44 |
Class B |
1.89% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,068.00 |
$ 9.74 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,015.51 |
$ 9.50 |
Class C |
1.82% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,068.40 |
$ 9.39 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,015.86 |
$ 9.15 |
Institutional Class |
.77% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,073.90 |
$ 3.98 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,021.09 |
$ 3.88 |
Class Z |
.63% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,074.70 |
$ 3.26 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,021.79 |
$ 3.18 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
Semiannual Report
Top Ten Stocks as of May 31, 2014 |
||
|
% of fund's |
% of fund's net assets |
Facebook, Inc. Class A |
7.6 |
5.9 |
Gilead Sciences, Inc. |
4.3 |
1.4 |
Keurig Green Mountain, Inc. |
3.5 |
2.3 |
Harley-Davidson, Inc. |
3.2 |
3.0 |
Microsoft Corp. |
3.2 |
3.2 |
Google, Inc. Class A |
2.5 |
3.8 |
Google, Inc. Class C |
2.5 |
0.0 |
Apple, Inc. |
2.3 |
2.6 |
Danaher Corp. |
2.0 |
1.3 |
Actavis PLC |
1.9 |
1.1 |
|
33.0 |
|
Top Five Market Sectors as of May 31, 2014 |
||
|
% of fund's |
% of fund's net assets |
Information Technology |
29.2 |
27.5 |
Consumer Discretionary |
16.1 |
20.4 |
Health Care |
13.8 |
16.9 |
Industrials |
11.1 |
7.4 |
Consumer Staples |
9.6 |
9.1 |
Asset Allocation (% of fund's net assets) |
|||||||
As of May 31, 2014* |
As of November 30, 2013** |
||||||
Stocks 97.5% |
|
Stocks 98.0% |
|
||||
Convertible |
|
Convertible |
|
||||
Short-Term |
|
Short-Term |
|
||||
* Foreign investments |
11.1% |
|
** Foreign investments |
12.3% |
|
Semiannual Report
Showing Percentage of Net Assets
Common Stocks - 97.5% |
|||
Shares |
Value (000s) |
||
CONSUMER DISCRETIONARY - 16.0% |
|||
Automobiles - 4.1% |
|||
Harley-Davidson, Inc. |
1,631,954 |
$ 116,260 |
|
Tesla Motors, Inc. (a)(d) |
159,863 |
33,215 |
|
|
149,475 |
||
Distributors - 0.3% |
|||
LKQ Corp. (a) |
327,600 |
9,088 |
|
Diversified Consumer Services - 0.8% |
|||
Anhanguera Educacional Participacoes SA |
1,851,978 |
13,309 |
|
Bright Horizons Family Solutions, Inc. (a) |
183,700 |
7,161 |
|
H&R Block, Inc. |
316,752 |
9,433 |
|
|
29,903 |
||
Hotels, Restaurants & Leisure - 3.4% |
|||
Chipotle Mexican Grill, Inc. (a) |
26,485 |
14,490 |
|
Dunkin' Brands Group, Inc. |
452,136 |
20,238 |
|
Las Vegas Sands Corp. |
99,300 |
7,598 |
|
Starbucks Corp. |
659,401 |
48,295 |
|
Yum! Brands, Inc. |
444,579 |
34,370 |
|
|
124,991 |
||
Household Durables - 0.3% |
|||
Mohawk Industries, Inc. (a) |
80,416 |
10,909 |
|
Internet & Catalog Retail - 1.0% |
|||
Amazon.com, Inc. (a) |
56,834 |
17,763 |
|
TripAdvisor, Inc. (a) |
182,864 |
17,769 |
|
|
35,532 |
||
Leisure Products - 0.1% |
|||
NJOY, Inc. (a)(e) |
202,642 |
3,430 |
|
Media - 0.8% |
|||
Comcast Corp. Class A (special) (non-vtg.) |
548,938 |
28,457 |
|
Specialty Retail - 3.5% |
|||
CarMax, Inc. (a) |
113,848 |
5,045 |
|
Five Below, Inc. (a) |
127,900 |
4,630 |
|
GNC Holdings, Inc. |
120,300 |
4,441 |
|
Home Depot, Inc. |
840,444 |
67,429 |
|
TJX Companies, Inc. |
137,559 |
7,490 |
|
Ulta Salon, Cosmetics & Fragrance, Inc. (a) |
178,852 |
15,185 |
|
Urban Outfitters, Inc. (a) |
697,443 |
23,378 |
|
|
127,598 |
||
Textiles, Apparel & Luxury Goods - 1.7% |
|||
ECLAT Textile Co. Ltd. |
1,033,560 |
10,668 |
|
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
CONSUMER DISCRETIONARY - continued |
|||
Textiles, Apparel & Luxury Goods - continued |
|||
Michael Kors Holdings Ltd. (a) |
204,197 |
$ 19,272 |
|
NIKE, Inc. Class B |
419,457 |
32,260 |
|
|
62,200 |
||
TOTAL CONSUMER DISCRETIONARY |
581,583 |
||
CONSUMER STAPLES - 9.6% |
|||
Beverages - 1.3% |
|||
Monster Beverage Corp. (a) |
104,840 |
7,274 |
|
SABMiller PLC |
372,034 |
20,648 |
|
The Coca-Cola Co. |
426,326 |
17,441 |
|
|
45,363 |
||
Food & Staples Retailing - 0.9% |
|||
Costco Wholesale Corp. |
166,200 |
19,283 |
|
Sprouts Farmers Market LLC |
48,315 |
1,309 |
|
Whole Foods Market, Inc. |
357,383 |
13,666 |
|
|
34,258 |
||
Food Products - 4.7% |
|||
Keurig Green Mountain, Inc. |
1,102,591 |
124,350 |
|
Mead Johnson Nutrition Co. Class A |
252,185 |
22,563 |
|
The Hershey Co. |
232,859 |
22,666 |
|
|
169,579 |
||
Household Products - 1.8% |
|||
Procter & Gamble Co. |
794,591 |
64,195 |
|
Personal Products - 0.9% |
|||
Estee Lauder Companies, Inc. Class A |
77,200 |
5,915 |
|
Herbalife Ltd. |
428,966 |
27,810 |
|
|
33,725 |
||
TOTAL CONSUMER STAPLES |
347,120 |
||
ENERGY - 4.3% |
|||
Energy Equipment & Services - 2.0% |
|||
Dril-Quip, Inc. (a) |
126,730 |
12,954 |
|
Halliburton Co. |
150,800 |
9,748 |
|
Oceaneering International, Inc. |
324,370 |
23,371 |
|
Pason Systems, Inc. |
417,050 |
11,366 |
|
RigNet, Inc. (a) |
325,698 |
15,445 |
|
|
72,884 |
||
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
ENERGY - continued |
|||
Oil, Gas & Consumable Fuels - 2.3% |
|||
Cheniere Energy, Inc. (a) |
156,900 |
$ 10,686 |
|
Continental Resources, Inc. (a) |
158,710 |
22,277 |
|
EOG Resources, Inc. |
170,800 |
18,071 |
|
EQT Midstream Partners LP |
13,000 |
1,068 |
|
Noble Energy, Inc. |
133,000 |
9,585 |
|
Phillips 66 Partners LP |
10,000 |
606 |
|
Pioneer Natural Resources Co. |
83,502 |
17,549 |
|
Targa Resources Corp. |
28,800 |
3,311 |
|
|
83,153 |
||
TOTAL ENERGY |
156,037 |
||
FINANCIALS - 8.0% |
|||
Banks - 1.1% |
|||
HDFC Bank Ltd. sponsored ADR |
866,396 |
39,014 |
|
Capital Markets - 5.1% |
|||
BlackRock, Inc. Class A |
72,600 |
22,136 |
|
E*TRADE Financial Corp. (a) |
1,217,511 |
24,801 |
|
Fortress Investment Group LLC |
497,300 |
3,531 |
|
Harvest Capital Credit Corp. |
82,524 |
1,197 |
|
Invesco Ltd. |
1,044,123 |
38,319 |
|
KKR & Co. LP |
463,304 |
10,531 |
|
Legg Mason, Inc. |
306,058 |
14,948 |
|
The Blackstone Group LP |
2,222,233 |
69,067 |
|
|
184,530 |
||
Consumer Finance - 0.7% |
|||
American Express Co. |
216,823 |
19,839 |
|
Shriram Transport Finance Co. Ltd. |
368,982 |
5,904 |
|
|
25,743 |
||
Diversified Financial Services - 0.9% |
|||
Berkshire Hathaway, Inc. Class B (a) |
73,900 |
9,484 |
|
McGraw Hill Financial, Inc. |
271,175 |
22,174 |
|
|
31,658 |
||
Real Estate Management & Development - 0.2% |
|||
Leopalace21 Corp. (a) |
248,300 |
1,135 |
|
Realogy Holdings Corp. (a) |
203,881 |
7,580 |
|
|
8,715 |
||
TOTAL FINANCIALS |
289,660 |
||
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
HEALTH CARE - 13.8% |
|||
Biotechnology - 8.8% |
|||
Acceleron Pharma, Inc. |
146,400 |
$ 4,345 |
|
Actelion Ltd. |
56,084 |
5,574 |
|
Alexion Pharmaceuticals, Inc. (a) |
162,725 |
27,064 |
|
Biogen Idec, Inc. (a) |
216,216 |
69,053 |
|
BioMarin Pharmaceutical, Inc. (a) |
271,279 |
15,723 |
|
Cytokinetics, Inc. warrants 6/25/17 (a) |
856,620 |
25 |
|
Enanta Pharmaceuticals, Inc. (a)(d) |
319,656 |
12,141 |
|
Gilead Sciences, Inc. (a) |
1,920,947 |
156,000 |
|
Insmed, Inc. (a) |
887,520 |
11,662 |
|
Kamada (a)(d) |
429,983 |
3,444 |
|
Ophthotech Corp. |
152,216 |
6,195 |
|
uniQure B.V. |
100,900 |
873 |
|
Vanda Pharmaceuticals, Inc. (a) |
623,542 |
6,416 |
|
|
318,515 |
||
Health Care Equipment & Supplies - 0.5% |
|||
AxoGen, Inc. (a) |
160,469 |
404 |
|
GI Dynamics, Inc. CDI (a) |
547,818 |
278 |
|
The Cooper Companies, Inc. |
145,993 |
18,836 |
|
|
19,518 |
||
Health Care Providers & Services - 0.4% |
|||
Apollo Hospitals Enterprise Ltd. |
372,049 |
5,705 |
|
Qualicorp SA (a) |
764,500 |
8,053 |
|
|
13,758 |
||
Health Care Technology - 0.1% |
|||
Cerner Corp. (a) |
107,000 |
5,783 |
|
Life Sciences Tools & Services - 0.8% |
|||
Illumina, Inc. (a) |
177,598 |
28,105 |
|
Pharmaceuticals - 3.2% |
|||
AbbVie, Inc. |
460,251 |
25,005 |
|
Actavis PLC (a) |
335,957 |
71,068 |
|
AVANIR Pharmaceuticals Class A (a) |
449,144 |
2,371 |
|
Perrigo Co. PLC |
125,091 |
17,288 |
|
|
115,732 |
||
TOTAL HEALTH CARE |
501,411 |
||
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
INDUSTRIALS - 11.1% |
|||
Aerospace & Defense - 2.7% |
|||
TransDigm Group, Inc. |
168,677 |
$ 31,831 |
|
United Technologies Corp. |
578,711 |
67,258 |
|
|
99,089 |
||
Airlines - 0.2% |
|||
Ryanair Holdings PLC sponsored ADR (a) |
113,180 |
6,435 |
|
Building Products - 0.3% |
|||
A.O. Smith Corp. |
212,338 |
10,485 |
|
Commercial Services & Supplies - 0.6% |
|||
KAR Auction Services, Inc. |
656,967 |
20,064 |
|
Construction & Engineering - 0.5% |
|||
Jacobs Engineering Group, Inc. (a) |
305,615 |
16,830 |
|
MasTec, Inc. (a) |
58,800 |
2,117 |
|
|
18,947 |
||
Electrical Equipment - 0.6% |
|||
AMETEK, Inc. |
268,355 |
14,244 |
|
Power Solutions International, Inc. (a) |
103,136 |
8,044 |
|
|
22,288 |
||
Industrial Conglomerates - 2.5% |
|||
Danaher Corp. |
929,214 |
72,878 |
|
Roper Industries, Inc. |
134,969 |
19,122 |
|
|
92,000 |
||
Machinery - 2.3% |
|||
Allison Transmission Holdings, Inc. |
489,200 |
15,151 |
|
Caterpillar, Inc. |
268,363 |
27,435 |
|
Manitowoc Co., Inc. |
1,119,948 |
30,295 |
|
Sarine Technologies Ltd. |
1,701,000 |
3,675 |
|
Sun Hydraulics Corp. |
45,000 |
1,661 |
|
Weg SA |
371,280 |
4,311 |
|
|
82,528 |
||
Professional Services - 0.8% |
|||
Equifax, Inc. |
117,071 |
8,287 |
|
Verisk Analytics, Inc. (a) |
321,529 |
19,031 |
|
|
27,318 |
||
Road & Rail - 0.6% |
|||
J.B. Hunt Transport Services, Inc. |
277,000 |
21,512 |
|
TOTAL INDUSTRIALS |
400,666 |
||
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
INFORMATION TECHNOLOGY - 29.2% |
|||
Communications Equipment - 0.5% |
|||
QUALCOMM, Inc. |
222,400 |
$ 17,892 |
|
Electronic Equipment & Components - 0.7% |
|||
TE Connectivity Ltd. |
429,023 |
25,510 |
|
Internet Software & Services - 15.7% |
|||
Cornerstone OnDemand, Inc. (a) |
200,132 |
8,043 |
|
CoStar Group, Inc. (a) |
30,100 |
4,772 |
|
Cvent, Inc. |
457,278 |
11,441 |
|
Demandware, Inc. (a) |
143,000 |
8,707 |
|
Facebook, Inc. Class A (a) |
4,321,000 |
273,518 |
|
Google, Inc.: |
|
|
|
Class A (a) |
160,150 |
91,550 |
|
Class C (a) |
160,150 |
89,841 |
|
Naver Corp. |
35,174 |
26,121 |
|
SPS Commerce, Inc. (a) |
195,299 |
11,111 |
|
Textura Corp. (d) |
841,889 |
17,621 |
|
Xoom Corp. (a) |
57,100 |
1,268 |
|
Yahoo!, Inc. (a) |
763,753 |
26,464 |
|
|
570,457 |
||
IT Services - 2.2% |
|||
Gartner, Inc. Class A (a) |
198,160 |
14,087 |
|
Visa, Inc. Class A |
299,408 |
64,322 |
|
|
78,409 |
||
Semiconductors & Semiconductor Equipment - 0.2% |
|||
MediaTek, Inc. |
521,000 |
8,448 |
|
Software - 7.6% |
|||
Activision Blizzard, Inc. |
87,600 |
1,820 |
|
ANSYS, Inc. (a) |
4,168 |
306 |
|
Computer Modelling Group Ltd. |
432,800 |
11,971 |
|
Diligent Board Member Services, Inc. (a) |
12,137 |
43 |
|
Electronic Arts, Inc. (a) |
962,645 |
33,818 |
|
Fleetmatics Group PLC (a) |
124,200 |
3,540 |
|
Microsoft Corp. |
2,815,100 |
115,250 |
|
salesforce.com, Inc. (a) |
1,126,092 |
59,266 |
|
ServiceNow, Inc. (a) |
85,100 |
4,452 |
|
SolarWinds, Inc. (a) |
233,812 |
9,140 |
|
Solera Holdings, Inc. |
61,100 |
3,987 |
|
SS&C Technologies Holdings, Inc. (a) |
620,646 |
26,471 |
|
The Rubicon Project, Inc. (d) |
289,182 |
3,670 |
|
|
273,734 |
||
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
INFORMATION TECHNOLOGY - continued |
|||
Technology Hardware, Storage & Peripherals - 2.3% |
|||
Apple, Inc. |
131,361 |
$ 83,152 |
|
TOTAL INFORMATION TECHNOLOGY |
1,057,602 |
||
MATERIALS - 4.7% |
|||
Chemicals - 2.2% |
|||
FMC Corp. |
291,153 |
22,291 |
|
Monsanto Co. |
216,163 |
26,339 |
|
Sherwin-Williams Co. |
142,145 |
29,084 |
|
|
77,714 |
||
Construction Materials - 2.5% |
|||
Eagle Materials, Inc. |
601,850 |
52,343 |
|
James Hardie Industries PLC sponsored ADR |
164,473 |
11,000 |
|
Vulcan Materials Co. |
471,130 |
28,725 |
|
|
92,068 |
||
TOTAL MATERIALS |
169,782 |
||
TELECOMMUNICATION SERVICES - 0.2% |
|||
Diversified Telecommunication Services - 0.2% |
|||
8x8, Inc. (a) |
867,708 |
6,525 |
|
UTILITIES - 0.6% |
|||
Electric Utilities - 0.6% |
|||
ITC Holdings Corp. |
630,289 |
23,069 |
|
TOTAL COMMON STOCKS (Cost $2,718,813) |
|
||
Convertible Preferred Stocks - 0.1% |
|||
|
|
|
|
CONSUMER DISCRETIONARY - 0.1% |
|||
Household Durables - 0.1% |
|||
Blu Homes, Inc. Series A, 5.00% (e) (Cost $4,044) |
875,350 |
|
|
Money Market Funds - 2.9% |
|||
Shares |
Value (000s) |
||
Fidelity Cash Central Fund, 0.10% (b) |
58,215,913 |
$ 58,216 |
|
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) |
48,198,050 |
48,198 |
|
TOTAL MONEY MARKET FUNDS (Cost $106,414) |
|
||
TOTAL INVESTMENT PORTFOLIO - 100.5% (Cost $2,829,271) |
3,643,913 |
||
NET OTHER ASSETS (LIABILITIES) - (0.5)% |
(19,631) |
||
NET ASSETS - 100% |
$ 3,624,282 |
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) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $7,474,000 or 0.2% of net assets. |
Additional information on each restricted holding is as follows: |
Security |
Acquisition Date |
Acquisition Cost (000s) |
Blu Homes, Inc. Series A, 5.00% |
6/21/13 |
$ 4,044 |
NJOY, Inc. |
9/11/13 |
$ 1,637 |
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 |
$ 34 |
Fidelity Securities Lending Cash Central Fund |
388 |
Total |
$ 422 |
Other Information |
The following is a summary of the inputs used, as of May 31, 2014, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
||||
Description |
Total |
Level 1 |
Level 2 |
Level 3 |
Investments in Securities: |
||||
Equities: |
||||
Consumer Discretionary |
$ 585,627 |
$ 578,153 |
$ - |
$ 7,474 |
Consumer Staples |
347,120 |
347,120 |
- |
- |
Energy |
156,037 |
156,037 |
- |
- |
Financials |
289,660 |
288,525 |
1,135 |
- |
Health Care |
501,411 |
501,386 |
25 |
- |
Industrials |
400,666 |
400,666 |
- |
- |
Information Technology |
1,057,602 |
1,057,602 |
- |
- |
Materials |
169,782 |
169,782 |
- |
- |
Telecommunication Services |
6,525 |
6,525 |
- |
- |
Utilities |
23,069 |
23,069 |
- |
- |
Money Market Funds |
106,414 |
106,414 |
- |
- |
Total Investments in Securities: |
$ 3,643,913 |
$ 3,635,279 |
$ 1,160 |
$ 7,474 |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited): |
United States of America |
88.9% |
Ireland |
3.0% |
India |
1.5% |
Bermuda |
1.1% |
Others (Individually Less Than 1%) |
5.5% |
|
100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Amounts in thousands (except per-share amounts) |
May 31, 2014 (Unaudited) |
|
|
|
|
Assets |
|
|
Investment in securities, at value (including securities loaned of $46,425) - See accompanying schedule: Unaffiliated issuers (cost $2,722,857) |
$ 3,537,499 |
|
Fidelity Central Funds (cost $106,414) |
106,414 |
|
Total Investments (cost $2,829,271) |
|
$ 3,643,913 |
Cash |
|
91 |
Receivable for investments sold |
|
48,410 |
Receivable for fund shares sold |
|
1,374 |
Dividends receivable |
|
2,811 |
Distributions receivable from Fidelity Central Funds |
|
109 |
Prepaid expenses |
|
1 |
Other receivables |
|
159 |
Total assets |
|
3,696,868 |
|
|
|
Liabilities |
|
|
Payable for investments purchased |
$ 15,994 |
|
Payable for fund shares redeemed |
5,027 |
|
Accrued management fee |
1,628 |
|
Distribution and service plan fees payable |
849 |
|
Other affiliated payables |
675 |
|
Other payables and accrued expenses |
215 |
|
Collateral on securities loaned, at value |
48,198 |
|
Total liabilities |
|
72,586 |
|
|
|
Net Assets |
|
$ 3,624,282 |
Net Assets consist of: |
|
|
Paid in capital |
|
$ 3,061,219 |
Accumulated net investment loss |
|
(7,091) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions |
|
(244,468) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies |
|
814,622 |
Net Assets |
|
$ 3,624,282 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Amounts in thousands (except per-share amounts) |
May 31, 2014 (Unaudited) |
|
|
|
|
Calculation of Maximum Offering Price Class A: |
|
$ 86.71 |
|
|
|
Maximum offering price per share (100/94.25 of $86.71) |
|
$ 92.00 |
Class T: |
|
$ 86.03 |
|
|
|
Maximum offering price per share (100/96.50 of $86.03) |
|
$ 89.15 |
Class B: |
|
$ 76.80 |
|
|
|
Class C: |
|
$ 78.13 |
|
|
|
Institutional Class: |
|
$ 92.70 |
|
|
|
Class Z: |
|
$ 92.81 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Amounts in thousands Six months ended May 31, 2014 (Unaudited) |
||
|
|
|
Investment Income |
|
|
Dividends |
|
$ 16,305 |
Income from Fidelity Central Funds |
|
422 |
Total income |
|
16,727 |
|
|
|
Expenses |
|
|
Management fee |
$ 9,946 |
|
Transfer agent fees |
3,548 |
|
Distribution and service plan fees |
5,203 |
|
Accounting and security lending fees |
523 |
|
Custodian fees and expenses |
64 |
|
Independent trustees' compensation |
8 |
|
Registration fees |
66 |
|
Audit |
37 |
|
Legal |
10 |
|
Interest |
1 |
|
Miscellaneous |
14 |
|
Total expenses before reductions |
19,420 |
|
Expense reductions |
(38) |
19,382 |
Net investment income (loss) |
|
(2,655) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: |
|
|
Investment securities: |
|
|
Unaffiliated issuers |
267,292 |
|
Foreign currency transactions |
(283) |
|
Total net realized gain (loss) |
|
267,009 |
Change in net unrealized appreciation (depreciation) on: Investment securities |
(17,027) |
|
Assets and liabilities in foreign currencies |
(19) |
|
Total change in net unrealized appreciation (depreciation) |
|
(17,046) |
Net gain (loss) |
|
249,963 |
Net increase (decrease) in net assets resulting from operations |
|
$ 247,308 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Amounts in thousands |
Six months ended May 31, 2014 |
Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) |
$ (2,655) |
$ (1,083) |
Net realized gain (loss) |
267,009 |
645,979 |
Change in net unrealized appreciation (depreciation) |
(17,046) |
266,591 |
Net increase (decrease) in net assets resulting from operations |
247,308 |
911,487 |
Distributions to shareholders from net investment income |
- |
(3,311) |
Share transactions - net increase (decrease) |
(124,999) |
(367,790) |
Total increase (decrease) in net assets |
122,309 |
540,386 |
|
|
|
Net Assets |
|
|
Beginning of period |
3,501,973 |
2,961,587 |
End of period (including accumulated net investment loss of $7,091 and accumulated net investment loss of $4,436, respectively) |
$ 3,624,282 |
$ 3,501,973 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 80.87 |
$ 61.77 |
$ 54.56 |
$ 50.75 |
$ 42.07 |
$ 34.36 |
Income from Investment |
|
|
|
|
|
|
Net investment income (loss) E |
(.06) |
(.05) |
.02 |
(.04) |
(.14) |
(.01) |
Net realized and unrealized gain (loss) |
5.90 |
19.15 |
7.30 |
3.90 |
8.82 |
7.79 |
Total from investment operations |
5.84 |
19.10 |
7.32 |
3.86 |
8.68 |
7.78 |
Distributions from net investment income |
- |
- |
- |
- |
- |
(.06) |
Distributions from net realized gain |
- |
- |
(.11) |
(.05) |
- |
(.02) |
Total distributions |
- |
- |
(.11) |
(.05) |
- |
(.07) I |
Net asset value, end of period |
$ 86.71 |
$ 80.87 |
$ 61.77 |
$ 54.56 |
$ 50.75 |
$ 42.07 |
Total Return B, C, D |
7.22% |
30.92% |
13.45% |
7.61% |
20.63% |
22.71% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions |
1.07% A |
1.11% |
1.14% |
1.15% |
1.16% |
1.19% |
Expenses net of fee waivers, if any |
1.07% A |
1.11% |
1.14% |
1.15% |
1.16% |
1.19% |
Expenses net of all reductions |
1.07% A |
1.10% |
1.14% |
1.14% |
1.15% |
1.18% |
Net investment income (loss) |
(.15)% A |
(.07)% |
.04% |
(.08)% |
(.31)% |
(.04)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 794 |
$ 772 |
$ 632 |
$ 609 |
$ 636 |
$ 640 |
Portfolio turnover rate G |
49% A |
81% |
73% |
70% |
71% |
135% |
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 Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Total distributions of $.07 per share is comprised of distributions from net investment income of $.059 and distributions from net realized gain of $.015 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 80.31 |
$ 61.45 |
$ 54.26 |
$ 50.51 |
$ 41.94 |
$ 34.25 |
Income from Investment |
|
|
|
|
|
|
Net investment income (loss) E |
(.15) |
(.17) |
(.08) |
(.14) |
(.22) |
(.09) |
Net realized and unrealized gain (loss) |
5.87 |
19.03 |
7.27 |
3.89 |
8.79 |
7.78 |
Total from investment operations |
5.72 |
18.86 |
7.19 |
3.75 |
8.57 |
7.69 |
Net asset value, end of period |
$ 86.03 |
$ 80.31 |
$ 61.45 |
$ 54.26 |
$ 50.51 |
$ 41.94 |
Total Return B, C, D |
7.12% |
30.69% |
13.25% |
7.42% |
20.43% |
22.45% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions |
1.28% A |
1.29% |
1.31% |
1.32% |
1.34% |
1.39% |
Expenses net of fee waivers, if any |
1.28% A |
1.29% |
1.31% |
1.32% |
1.34% |
1.39% |
Expenses net of all reductions |
1.28% A |
1.28% |
1.31% |
1.31% |
1.33% |
1.39% |
Net investment income (loss) |
(.35)% A |
(.25)% |
(.13)% |
(.25)% |
(.48)% |
(.24)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 1,314 |
$ 1,283 |
$ 1,108 |
$ 1,139 |
$ 1,246 |
$ 1,268 |
Portfolio turnover rate G |
49% A |
81% |
73% |
70% |
71% |
135% |
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 Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 71.91 |
$ 55.36 |
$ 49.17 |
$ 46.04 |
$ 38.45 |
$ 31.57 |
Income from Investment |
|
|
|
|
|
|
Net investment income (loss) E |
(.36) |
(.52) |
(.39) |
(.42) |
(.44) |
(.26) |
Net realized and unrealized gain (loss) |
5.25 |
17.07 |
6.58 |
3.55 |
8.03 |
7.14 |
Total from investment operations |
4.89 |
16.55 |
6.19 |
3.13 |
7.59 |
6.88 |
Net asset value, end of period |
$ 76.80 |
$ 71.91 |
$ 55.36 |
$ 49.17 |
$ 46.04 |
$ 38.45 |
Total Return B, C, D |
6.80% |
29.90% |
12.59% |
6.80% |
19.74% |
21.79% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions |
1.89% A |
1.89% |
1.90% |
1.90% |
1.91% |
1.94% |
Expenses net of fee waivers, if any |
1.89% A |
1.89% |
1.90% |
1.90% |
1.91% |
1.94% |
Expenses net of all reductions |
1.89% A |
1.88% |
1.90% |
1.90% |
1.91% |
1.93% |
Net investment income (loss) |
(.97)% A |
(.85)% |
(.72)% |
(.83)% |
(1.06)% |
(.79)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 20 |
$ 23 |
$ 26 |
$ 35 |
$ 54 |
$ 70 |
Portfolio turnover rate G |
49% A |
81% |
73% |
70% |
71% |
135% |
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 Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 73.13 |
$ 56.27 |
$ 49.96 |
$ 46.77 |
$ 39.05 |
$ 32.06 |
Income from Investment |
|
|
|
|
|
|
Net investment income (loss) E |
(.34) |
(.50) |
(.37) |
(.41) |
(.44) |
(.26) |
Net realized and unrealized gain (loss) |
5.34 |
17.36 |
6.68 |
3.60 |
8.16 |
7.25 |
Total from investment operations |
5.00 |
16.86 |
6.31 |
3.19 |
7.72 |
6.99 |
Net asset value, end of period |
$ 78.13 |
$ 73.13 |
$ 56.27 |
$ 49.96 |
$ 46.77 |
$ 39.05 |
Total Return B, C, D |
6.84% |
29.96% |
12.63% |
6.82% |
19.77% |
21.80% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions |
1.82% A |
1.84% |
1.86% |
1.88% |
1.90% |
1.94% |
Expenses net of fee waivers, if any |
1.82% A |
1.84% |
1.86% |
1.88% |
1.90% |
1.94% |
Expenses net of all reductions |
1.81% A |
1.83% |
1.86% |
1.87% |
1.90% |
1.93% |
Net investment income (loss) |
(.89)% A |
(.79)% |
(.68)% |
(.81)% |
(1.05)% |
(.79)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 163 |
$ 157 |
$ 133 |
$ 136 |
$ 143 |
$ 142 |
Portfolio turnover rate G |
49% A |
81% |
73% |
70% |
71% |
135% |
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 Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 86.32 |
$ 65.92 |
$ 58.24 |
$ 54.14 |
$ 44.71 |
$ 36.61 |
Income from Investment |
|
|
|
|
|
|
Net investment income (loss) D |
.07 |
.20 |
.25 |
.16 |
.02 |
.12 |
Net realized and unrealized gain (loss) |
6.31 |
20.40 |
7.75 |
4.16 |
9.41 |
8.27 |
Total from investment operations |
6.38 |
20.60 |
8.00 |
4.32 |
9.43 |
8.39 |
Distributions from net investment income |
- |
(.20) |
- |
- |
- |
(.27) |
Distributions from net realized gain |
- |
- |
(.32) |
(.22) |
- |
(.02) |
Total distributions |
- |
(.20) |
(.32) |
(.22) |
- |
(.29) H |
Net asset value, end of period |
$ 92.70 |
$ 86.32 |
$ 65.92 |
$ 58.24 |
$ 54.14 |
$ 44.71 |
Total Return B, C |
7.39% |
31.36% |
13.83% |
7.99% |
21.09% |
23.11% |
Ratios to Average Net Assets E, G |
|
|
|
|
|
|
Expenses before reductions |
.77% A |
.78% |
.80% |
.80% |
.80% |
.85% |
Expenses net of fee waivers, if any |
.77% A |
.78% |
.80% |
.80% |
.80% |
.85% |
Expenses net of all reductions |
.77% A |
.77% |
.79% |
.79% |
.80% |
.84% |
Net investment income (loss) |
.16% A |
.27% |
.39% |
.27% |
.05% |
.30% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 1,334 |
$ 1,266 |
$ 1,063 |
$ 897 |
$ 973 |
$ 983 |
Portfolio turnover rate F |
49% A |
81% |
73% |
70% |
71% |
135% |
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Total distributions of $.29 per share is comprised of distributions from net investment income of $.274 and distributions from net realized gain of $.015 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Years ended |
|
(Unaudited) |
2013 G |
Selected Per-Share Data |
|
|
Net asset value, beginning of period |
$ 86.36 |
$ 78.49 |
Income from Investment Operations |
|
|
Net investment income (loss) D |
.13 |
.09 |
Net realized and unrealized gain (loss) |
6.32 |
7.78 |
Total from investment operations |
6.45 |
7.87 |
Net asset value, end of period |
$ 92.81 |
$ 86.36 |
Total ReturnB, C |
7.47% |
10.03% |
Ratios to Average Net Assets E,H |
|
|
Expenses before reductions |
.64% A |
.64% A |
Expenses net of fee waivers, if any |
.64% A |
.64% A |
Expenses net of all reductions |
.63% A |
.63% A |
Net investment income (loss) |
.29% A |
.38% A |
Supplemental Data |
|
|
Net assets, end of period (000 omitted) |
$ 118 |
$ 110 |
Portfolio turnover rate F |
49% A |
81% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period August 13, 2013 (commencement of sale of shares) to November 30, 2013.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
For the period ended May 31, 2014 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor® Equity Growth Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, Institutional Class and Class Z shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds 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
Semiannual Report
3. Significant Accounting Policies - continued
the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Valuation - continued
limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
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 May 31, 2014, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
upon receipt of tax filings or other correspondence relating to the underlying investment. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
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, passive foreign investment companies (PFIC), redemptions in kind, partnerships, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation |
$ 855,050 |
Gross unrealized depreciation |
(50,835) |
Net unrealized appreciation (depreciation) on securities and other investments |
$ 804,215 |
|
|
Tax cost |
$ 2,839,698 |
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.
Fiscal year of expiration |
|
2017 |
$ (503,654) |
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.
Semiannual Report
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $872,566 and $1,019,659, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .55% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services.
For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
|
Distribution |
Service |
Total Fees |
Retained |
Class A |
-% |
.25% |
$ 998 |
$ 24 |
Class T |
.25% |
.25% |
3,290 |
43 |
Class B |
.75% |
.25% |
109 |
82 |
Class C |
.75% |
.25% |
806 |
42 |
|
|
|
$ 5,203 |
$ 191 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
5. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
|
Retained |
Class A |
$ 56 |
Class T |
17 |
Class B* |
6 |
Class C* |
3 |
|
$ 82 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund, except for Class Z. FIIOC receives an asset-based fee of Class Z's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
|
Amount |
% of |
Class A |
$ 930 |
.23 |
Class T |
1,228 |
.19 |
Class B |
33 |
.30 |
Class C |
181 |
.22 |
Institutional Class |
1,176 |
.18 |
Class Z |
-** |
.04 |
|
$ 3,548 |
|
* Annualized
** Amount represents twenty-six dollars.
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $13 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender |
Average Loan |
Weighted Average Interest Rate |
Interest |
Borrower |
$ 12,999 |
.31% |
$ 1 |
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $3 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
7. Security Lending - continued
loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $209. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $388, including $23 from securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $38 for the period.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
|
Six months ended |
Year ended |
From net investment income |
|
|
Institutional Class |
$ - |
$ 3,311 |
10. Share Transactions.
Transactions for each class of shares were as follows:
|
Shares |
Dollars |
||
|
Six months ended May 31, |
Year ended |
Six months ended May 31, |
Year ended |
Class A |
|
|
|
|
Shares sold |
736 |
1,339 |
$ 63,191 |
$ 93,392 |
Shares redeemed |
(1,120) |
(2,021) |
(95,589) |
(140,383) |
Net increase (decrease) |
(384) |
(682) |
$ (32,398) |
$ (46,991) |
Class T |
|
|
|
|
Shares sold |
883 |
1,688 |
$ 74,683 |
$ 116,336 |
Shares redeemed |
(1,594) |
(3,732) |
(134,254) |
(255,751) |
Net increase (decrease) |
(711) |
(2,044) |
$ (59,571) |
$ (139,415) |
Semiannual Report
10. Share Transactions - continued
|
Shares |
Dollars |
||
|
Six months ended May 31, |
Year ended |
Six months ended May 31, |
Year ended |
Class B |
|
|
|
|
Shares sold |
2 |
5 |
$ 101 |
$ 343 |
Shares redeemed |
(63) |
(159) |
(4,726) |
(9,702) |
Net increase (decrease) |
(61) |
(154) |
$ (4,625) |
$ (9,359) |
Class C |
|
|
|
|
Shares sold |
124 |
155 |
$ 9,694 |
$ 9,843 |
Shares redeemed |
(193) |
(367) |
(14,677) |
(22,580) |
Net increase (decrease) |
(69) |
(212) |
$ (4,983) |
$ (12,737) |
Institutional Class |
|
|
|
|
Shares sold |
1,314 |
4,554 |
$ 120,410 |
$ 315,218 |
Reinvestment of distributions |
- |
50 |
- |
3,246 |
Shares redeemed |
(1,597) |
(6,060) B |
(143,832) |
(477,852) B |
Net increase (decrease) |
(283) |
(1,456) |
$ (23,422) |
$ (159,388) |
Class Z |
|
|
|
|
Shares sold |
- |
1 |
$ - |
$ 100 |
Net increase (decrease) |
- |
1 |
$ - |
$ 100 |
A Share transactions for Class Z are for the period August 13, 2013 (commencement of sale of shares) to November 30, 2013.
B Amount includes in-kind redemptions.
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, the Fidelity Advisor Freedom Funds were the owners of record, in the aggregate, of approximately 26% of the total outstanding shares of the Fund.
Effective after the close of business on June 6, 2014, 10,458,435 shares of the Fund held by the Fidelity Advisor Freedom Funds were redeemed for investments with a value of $986,638,301. The Fidelity Advisor Freedom Funds' ownership in the Fund was reduced to 0%. The Fund did not recognize gain or loss for federal income tax purposes.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
JPMorgan Chase Bank
New York, NY
(Fidelity Investment logo)(registered trademark)
EPG-USAN-0714 1.786783.111
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Equity Growth
Fund - Class Z
Semiannual Report
May 31, 2014
(Fidelity Cover Art)
Shareholder Expense Example |
An example of shareholder expenses. |
|
Investment Changes |
A summary of major shifts in the fund's investments over the past six months. |
|
Investments |
A complete list of the fund's investments with their market values. |
|
Financial Statements |
Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
|
Notes |
Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (December 1, 2013 to May 31, 2014).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
|
Annualized |
Beginning |
Ending |
Expenses Paid |
Class A |
1.07% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,072.20 |
$ 5.53 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,019.60 |
$ 5.39 |
Class T |
1.28% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,071.20 |
$ 6.61 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,018.55 |
$ 6.44 |
Class B |
1.89% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,068.00 |
$ 9.74 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,015.51 |
$ 9.50 |
Class C |
1.82% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,068.40 |
$ 9.39 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,015.86 |
$ 9.15 |
Institutional Class |
.77% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,073.90 |
$ 3.98 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,021.09 |
$ 3.88 |
Class Z |
.63% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,074.70 |
$ 3.26 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,021.79 |
$ 3.18 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
Semiannual Report
Top Ten Stocks as of May 31, 2014 |
||
|
% of fund's |
% of fund's net assets |
Facebook, Inc. Class A |
7.6 |
5.9 |
Gilead Sciences, Inc. |
4.3 |
1.4 |
Keurig Green Mountain, Inc. |
3.5 |
2.3 |
Harley-Davidson, Inc. |
3.2 |
3.0 |
Microsoft Corp. |
3.2 |
3.2 |
Google, Inc. Class A |
2.5 |
3.8 |
Google, Inc. Class C |
2.5 |
0.0 |
Apple, Inc. |
2.3 |
2.6 |
Danaher Corp. |
2.0 |
1.3 |
Actavis PLC |
1.9 |
1.1 |
|
33.0 |
|
Top Five Market Sectors as of May 31, 2014 |
||
|
% of fund's |
% of fund's net assets |
Information Technology |
29.2 |
27.5 |
Consumer Discretionary |
16.1 |
20.4 |
Health Care |
13.8 |
16.9 |
Industrials |
11.1 |
7.4 |
Consumer Staples |
9.6 |
9.1 |
Asset Allocation (% of fund's net assets) |
|||||||
As of May 31, 2014* |
As of November 30, 2013** |
||||||
Stocks 97.5% |
|
Stocks 98.0% |
|
||||
Convertible |
|
Convertible |
|
||||
Short-Term |
|
Short-Term |
|
||||
* Foreign investments |
11.1% |
|
** Foreign investments |
12.3% |
|
Semiannual Report
Showing Percentage of Net Assets
Common Stocks - 97.5% |
|||
Shares |
Value (000s) |
||
CONSUMER DISCRETIONARY - 16.0% |
|||
Automobiles - 4.1% |
|||
Harley-Davidson, Inc. |
1,631,954 |
$ 116,260 |
|
Tesla Motors, Inc. (a)(d) |
159,863 |
33,215 |
|
|
149,475 |
||
Distributors - 0.3% |
|||
LKQ Corp. (a) |
327,600 |
9,088 |
|
Diversified Consumer Services - 0.8% |
|||
Anhanguera Educacional Participacoes SA |
1,851,978 |
13,309 |
|
Bright Horizons Family Solutions, Inc. (a) |
183,700 |
7,161 |
|
H&R Block, Inc. |
316,752 |
9,433 |
|
|
29,903 |
||
Hotels, Restaurants & Leisure - 3.4% |
|||
Chipotle Mexican Grill, Inc. (a) |
26,485 |
14,490 |
|
Dunkin' Brands Group, Inc. |
452,136 |
20,238 |
|
Las Vegas Sands Corp. |
99,300 |
7,598 |
|
Starbucks Corp. |
659,401 |
48,295 |
|
Yum! Brands, Inc. |
444,579 |
34,370 |
|
|
124,991 |
||
Household Durables - 0.3% |
|||
Mohawk Industries, Inc. (a) |
80,416 |
10,909 |
|
Internet & Catalog Retail - 1.0% |
|||
Amazon.com, Inc. (a) |
56,834 |
17,763 |
|
TripAdvisor, Inc. (a) |
182,864 |
17,769 |
|
|
35,532 |
||
Leisure Products - 0.1% |
|||
NJOY, Inc. (a)(e) |
202,642 |
3,430 |
|
Media - 0.8% |
|||
Comcast Corp. Class A (special) (non-vtg.) |
548,938 |
28,457 |
|
Specialty Retail - 3.5% |
|||
CarMax, Inc. (a) |
113,848 |
5,045 |
|
Five Below, Inc. (a) |
127,900 |
4,630 |
|
GNC Holdings, Inc. |
120,300 |
4,441 |
|
Home Depot, Inc. |
840,444 |
67,429 |
|
TJX Companies, Inc. |
137,559 |
7,490 |
|
Ulta Salon, Cosmetics & Fragrance, Inc. (a) |
178,852 |
15,185 |
|
Urban Outfitters, Inc. (a) |
697,443 |
23,378 |
|
|
127,598 |
||
Textiles, Apparel & Luxury Goods - 1.7% |
|||
ECLAT Textile Co. Ltd. |
1,033,560 |
10,668 |
|
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
CONSUMER DISCRETIONARY - continued |
|||
Textiles, Apparel & Luxury Goods - continued |
|||
Michael Kors Holdings Ltd. (a) |
204,197 |
$ 19,272 |
|
NIKE, Inc. Class B |
419,457 |
32,260 |
|
|
62,200 |
||
TOTAL CONSUMER DISCRETIONARY |
581,583 |
||
CONSUMER STAPLES - 9.6% |
|||
Beverages - 1.3% |
|||
Monster Beverage Corp. (a) |
104,840 |
7,274 |
|
SABMiller PLC |
372,034 |
20,648 |
|
The Coca-Cola Co. |
426,326 |
17,441 |
|
|
45,363 |
||
Food & Staples Retailing - 0.9% |
|||
Costco Wholesale Corp. |
166,200 |
19,283 |
|
Sprouts Farmers Market LLC |
48,315 |
1,309 |
|
Whole Foods Market, Inc. |
357,383 |
13,666 |
|
|
34,258 |
||
Food Products - 4.7% |
|||
Keurig Green Mountain, Inc. |
1,102,591 |
124,350 |
|
Mead Johnson Nutrition Co. Class A |
252,185 |
22,563 |
|
The Hershey Co. |
232,859 |
22,666 |
|
|
169,579 |
||
Household Products - 1.8% |
|||
Procter & Gamble Co. |
794,591 |
64,195 |
|
Personal Products - 0.9% |
|||
Estee Lauder Companies, Inc. Class A |
77,200 |
5,915 |
|
Herbalife Ltd. |
428,966 |
27,810 |
|
|
33,725 |
||
TOTAL CONSUMER STAPLES |
347,120 |
||
ENERGY - 4.3% |
|||
Energy Equipment & Services - 2.0% |
|||
Dril-Quip, Inc. (a) |
126,730 |
12,954 |
|
Halliburton Co. |
150,800 |
9,748 |
|
Oceaneering International, Inc. |
324,370 |
23,371 |
|
Pason Systems, Inc. |
417,050 |
11,366 |
|
RigNet, Inc. (a) |
325,698 |
15,445 |
|
|
72,884 |
||
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
ENERGY - continued |
|||
Oil, Gas & Consumable Fuels - 2.3% |
|||
Cheniere Energy, Inc. (a) |
156,900 |
$ 10,686 |
|
Continental Resources, Inc. (a) |
158,710 |
22,277 |
|
EOG Resources, Inc. |
170,800 |
18,071 |
|
EQT Midstream Partners LP |
13,000 |
1,068 |
|
Noble Energy, Inc. |
133,000 |
9,585 |
|
Phillips 66 Partners LP |
10,000 |
606 |
|
Pioneer Natural Resources Co. |
83,502 |
17,549 |
|
Targa Resources Corp. |
28,800 |
3,311 |
|
|
83,153 |
||
TOTAL ENERGY |
156,037 |
||
FINANCIALS - 8.0% |
|||
Banks - 1.1% |
|||
HDFC Bank Ltd. sponsored ADR |
866,396 |
39,014 |
|
Capital Markets - 5.1% |
|||
BlackRock, Inc. Class A |
72,600 |
22,136 |
|
E*TRADE Financial Corp. (a) |
1,217,511 |
24,801 |
|
Fortress Investment Group LLC |
497,300 |
3,531 |
|
Harvest Capital Credit Corp. |
82,524 |
1,197 |
|
Invesco Ltd. |
1,044,123 |
38,319 |
|
KKR & Co. LP |
463,304 |
10,531 |
|
Legg Mason, Inc. |
306,058 |
14,948 |
|
The Blackstone Group LP |
2,222,233 |
69,067 |
|
|
184,530 |
||
Consumer Finance - 0.7% |
|||
American Express Co. |
216,823 |
19,839 |
|
Shriram Transport Finance Co. Ltd. |
368,982 |
5,904 |
|
|
25,743 |
||
Diversified Financial Services - 0.9% |
|||
Berkshire Hathaway, Inc. Class B (a) |
73,900 |
9,484 |
|
McGraw Hill Financial, Inc. |
271,175 |
22,174 |
|
|
31,658 |
||
Real Estate Management & Development - 0.2% |
|||
Leopalace21 Corp. (a) |
248,300 |
1,135 |
|
Realogy Holdings Corp. (a) |
203,881 |
7,580 |
|
|
8,715 |
||
TOTAL FINANCIALS |
289,660 |
||
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
HEALTH CARE - 13.8% |
|||
Biotechnology - 8.8% |
|||
Acceleron Pharma, Inc. |
146,400 |
$ 4,345 |
|
Actelion Ltd. |
56,084 |
5,574 |
|
Alexion Pharmaceuticals, Inc. (a) |
162,725 |
27,064 |
|
Biogen Idec, Inc. (a) |
216,216 |
69,053 |
|
BioMarin Pharmaceutical, Inc. (a) |
271,279 |
15,723 |
|
Cytokinetics, Inc. warrants 6/25/17 (a) |
856,620 |
25 |
|
Enanta Pharmaceuticals, Inc. (a)(d) |
319,656 |
12,141 |
|
Gilead Sciences, Inc. (a) |
1,920,947 |
156,000 |
|
Insmed, Inc. (a) |
887,520 |
11,662 |
|
Kamada (a)(d) |
429,983 |
3,444 |
|
Ophthotech Corp. |
152,216 |
6,195 |
|
uniQure B.V. |
100,900 |
873 |
|
Vanda Pharmaceuticals, Inc. (a) |
623,542 |
6,416 |
|
|
318,515 |
||
Health Care Equipment & Supplies - 0.5% |
|||
AxoGen, Inc. (a) |
160,469 |
404 |
|
GI Dynamics, Inc. CDI (a) |
547,818 |
278 |
|
The Cooper Companies, Inc. |
145,993 |
18,836 |
|
|
19,518 |
||
Health Care Providers & Services - 0.4% |
|||
Apollo Hospitals Enterprise Ltd. |
372,049 |
5,705 |
|
Qualicorp SA (a) |
764,500 |
8,053 |
|
|
13,758 |
||
Health Care Technology - 0.1% |
|||
Cerner Corp. (a) |
107,000 |
5,783 |
|
Life Sciences Tools & Services - 0.8% |
|||
Illumina, Inc. (a) |
177,598 |
28,105 |
|
Pharmaceuticals - 3.2% |
|||
AbbVie, Inc. |
460,251 |
25,005 |
|
Actavis PLC (a) |
335,957 |
71,068 |
|
AVANIR Pharmaceuticals Class A (a) |
449,144 |
2,371 |
|
Perrigo Co. PLC |
125,091 |
17,288 |
|
|
115,732 |
||
TOTAL HEALTH CARE |
501,411 |
||
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
INDUSTRIALS - 11.1% |
|||
Aerospace & Defense - 2.7% |
|||
TransDigm Group, Inc. |
168,677 |
$ 31,831 |
|
United Technologies Corp. |
578,711 |
67,258 |
|
|
99,089 |
||
Airlines - 0.2% |
|||
Ryanair Holdings PLC sponsored ADR (a) |
113,180 |
6,435 |
|
Building Products - 0.3% |
|||
A.O. Smith Corp. |
212,338 |
10,485 |
|
Commercial Services & Supplies - 0.6% |
|||
KAR Auction Services, Inc. |
656,967 |
20,064 |
|
Construction & Engineering - 0.5% |
|||
Jacobs Engineering Group, Inc. (a) |
305,615 |
16,830 |
|
MasTec, Inc. (a) |
58,800 |
2,117 |
|
|
18,947 |
||
Electrical Equipment - 0.6% |
|||
AMETEK, Inc. |
268,355 |
14,244 |
|
Power Solutions International, Inc. (a) |
103,136 |
8,044 |
|
|
22,288 |
||
Industrial Conglomerates - 2.5% |
|||
Danaher Corp. |
929,214 |
72,878 |
|
Roper Industries, Inc. |
134,969 |
19,122 |
|
|
92,000 |
||
Machinery - 2.3% |
|||
Allison Transmission Holdings, Inc. |
489,200 |
15,151 |
|
Caterpillar, Inc. |
268,363 |
27,435 |
|
Manitowoc Co., Inc. |
1,119,948 |
30,295 |
|
Sarine Technologies Ltd. |
1,701,000 |
3,675 |
|
Sun Hydraulics Corp. |
45,000 |
1,661 |
|
Weg SA |
371,280 |
4,311 |
|
|
82,528 |
||
Professional Services - 0.8% |
|||
Equifax, Inc. |
117,071 |
8,287 |
|
Verisk Analytics, Inc. (a) |
321,529 |
19,031 |
|
|
27,318 |
||
Road & Rail - 0.6% |
|||
J.B. Hunt Transport Services, Inc. |
277,000 |
21,512 |
|
TOTAL INDUSTRIALS |
400,666 |
||
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
INFORMATION TECHNOLOGY - 29.2% |
|||
Communications Equipment - 0.5% |
|||
QUALCOMM, Inc. |
222,400 |
$ 17,892 |
|
Electronic Equipment & Components - 0.7% |
|||
TE Connectivity Ltd. |
429,023 |
25,510 |
|
Internet Software & Services - 15.7% |
|||
Cornerstone OnDemand, Inc. (a) |
200,132 |
8,043 |
|
CoStar Group, Inc. (a) |
30,100 |
4,772 |
|
Cvent, Inc. |
457,278 |
11,441 |
|
Demandware, Inc. (a) |
143,000 |
8,707 |
|
Facebook, Inc. Class A (a) |
4,321,000 |
273,518 |
|
Google, Inc.: |
|
|
|
Class A (a) |
160,150 |
91,550 |
|
Class C (a) |
160,150 |
89,841 |
|
Naver Corp. |
35,174 |
26,121 |
|
SPS Commerce, Inc. (a) |
195,299 |
11,111 |
|
Textura Corp. (d) |
841,889 |
17,621 |
|
Xoom Corp. (a) |
57,100 |
1,268 |
|
Yahoo!, Inc. (a) |
763,753 |
26,464 |
|
|
570,457 |
||
IT Services - 2.2% |
|||
Gartner, Inc. Class A (a) |
198,160 |
14,087 |
|
Visa, Inc. Class A |
299,408 |
64,322 |
|
|
78,409 |
||
Semiconductors & Semiconductor Equipment - 0.2% |
|||
MediaTek, Inc. |
521,000 |
8,448 |
|
Software - 7.6% |
|||
Activision Blizzard, Inc. |
87,600 |
1,820 |
|
ANSYS, Inc. (a) |
4,168 |
306 |
|
Computer Modelling Group Ltd. |
432,800 |
11,971 |
|
Diligent Board Member Services, Inc. (a) |
12,137 |
43 |
|
Electronic Arts, Inc. (a) |
962,645 |
33,818 |
|
Fleetmatics Group PLC (a) |
124,200 |
3,540 |
|
Microsoft Corp. |
2,815,100 |
115,250 |
|
salesforce.com, Inc. (a) |
1,126,092 |
59,266 |
|
ServiceNow, Inc. (a) |
85,100 |
4,452 |
|
SolarWinds, Inc. (a) |
233,812 |
9,140 |
|
Solera Holdings, Inc. |
61,100 |
3,987 |
|
SS&C Technologies Holdings, Inc. (a) |
620,646 |
26,471 |
|
The Rubicon Project, Inc. (d) |
289,182 |
3,670 |
|
|
273,734 |
||
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
INFORMATION TECHNOLOGY - continued |
|||
Technology Hardware, Storage & Peripherals - 2.3% |
|||
Apple, Inc. |
131,361 |
$ 83,152 |
|
TOTAL INFORMATION TECHNOLOGY |
1,057,602 |
||
MATERIALS - 4.7% |
|||
Chemicals - 2.2% |
|||
FMC Corp. |
291,153 |
22,291 |
|
Monsanto Co. |
216,163 |
26,339 |
|
Sherwin-Williams Co. |
142,145 |
29,084 |
|
|
77,714 |
||
Construction Materials - 2.5% |
|||
Eagle Materials, Inc. |
601,850 |
52,343 |
|
James Hardie Industries PLC sponsored ADR |
164,473 |
11,000 |
|
Vulcan Materials Co. |
471,130 |
28,725 |
|
|
92,068 |
||
TOTAL MATERIALS |
169,782 |
||
TELECOMMUNICATION SERVICES - 0.2% |
|||
Diversified Telecommunication Services - 0.2% |
|||
8x8, Inc. (a) |
867,708 |
6,525 |
|
UTILITIES - 0.6% |
|||
Electric Utilities - 0.6% |
|||
ITC Holdings Corp. |
630,289 |
23,069 |
|
TOTAL COMMON STOCKS (Cost $2,718,813) |
|
||
Convertible Preferred Stocks - 0.1% |
|||
|
|
|
|
CONSUMER DISCRETIONARY - 0.1% |
|||
Household Durables - 0.1% |
|||
Blu Homes, Inc. Series A, 5.00% (e) (Cost $4,044) |
875,350 |
|
|
Money Market Funds - 2.9% |
|||
Shares |
Value (000s) |
||
Fidelity Cash Central Fund, 0.10% (b) |
58,215,913 |
$ 58,216 |
|
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) |
48,198,050 |
48,198 |
|
TOTAL MONEY MARKET FUNDS (Cost $106,414) |
|
||
TOTAL INVESTMENT PORTFOLIO - 100.5% (Cost $2,829,271) |
3,643,913 |
||
NET OTHER ASSETS (LIABILITIES) - (0.5)% |
(19,631) |
||
NET ASSETS - 100% |
$ 3,624,282 |
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) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $7,474,000 or 0.2% of net assets. |
Additional information on each restricted holding is as follows: |
Security |
Acquisition Date |
Acquisition Cost (000s) |
Blu Homes, Inc. Series A, 5.00% |
6/21/13 |
$ 4,044 |
NJOY, Inc. |
9/11/13 |
$ 1,637 |
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 |
$ 34 |
Fidelity Securities Lending Cash Central Fund |
388 |
Total |
$ 422 |
Other Information |
The following is a summary of the inputs used, as of May 31, 2014, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
||||
Description |
Total |
Level 1 |
Level 2 |
Level 3 |
Investments in Securities: |
||||
Equities: |
||||
Consumer Discretionary |
$ 585,627 |
$ 578,153 |
$ - |
$ 7,474 |
Consumer Staples |
347,120 |
347,120 |
- |
- |
Energy |
156,037 |
156,037 |
- |
- |
Financials |
289,660 |
288,525 |
1,135 |
- |
Health Care |
501,411 |
501,386 |
25 |
- |
Industrials |
400,666 |
400,666 |
- |
- |
Information Technology |
1,057,602 |
1,057,602 |
- |
- |
Materials |
169,782 |
169,782 |
- |
- |
Telecommunication Services |
6,525 |
6,525 |
- |
- |
Utilities |
23,069 |
23,069 |
- |
- |
Money Market Funds |
106,414 |
106,414 |
- |
- |
Total Investments in Securities: |
$ 3,643,913 |
$ 3,635,279 |
$ 1,160 |
$ 7,474 |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited): |
United States of America |
88.9% |
Ireland |
3.0% |
India |
1.5% |
Bermuda |
1.1% |
Others (Individually Less Than 1%) |
5.5% |
|
100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Amounts in thousands (except per-share amounts) |
May 31, 2014 (Unaudited) |
|
|
|
|
Assets |
|
|
Investment in securities, at value (including securities loaned of $46,425) - See accompanying schedule: Unaffiliated issuers (cost $2,722,857) |
$ 3,537,499 |
|
Fidelity Central Funds (cost $106,414) |
106,414 |
|
Total Investments (cost $2,829,271) |
|
$ 3,643,913 |
Cash |
|
91 |
Receivable for investments sold |
|
48,410 |
Receivable for fund shares sold |
|
1,374 |
Dividends receivable |
|
2,811 |
Distributions receivable from Fidelity Central Funds |
|
109 |
Prepaid expenses |
|
1 |
Other receivables |
|
159 |
Total assets |
|
3,696,868 |
|
|
|
Liabilities |
|
|
Payable for investments purchased |
$ 15,994 |
|
Payable for fund shares redeemed |
5,027 |
|
Accrued management fee |
1,628 |
|
Distribution and service plan fees payable |
849 |
|
Other affiliated payables |
675 |
|
Other payables and accrued expenses |
215 |
|
Collateral on securities loaned, at value |
48,198 |
|
Total liabilities |
|
72,586 |
|
|
|
Net Assets |
|
$ 3,624,282 |
Net Assets consist of: |
|
|
Paid in capital |
|
$ 3,061,219 |
Accumulated net investment loss |
|
(7,091) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions |
|
(244,468) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies |
|
814,622 |
Net Assets |
|
$ 3,624,282 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Amounts in thousands (except per-share amounts) |
May 31, 2014 (Unaudited) |
|
|
|
|
Calculation of Maximum Offering Price Class A: |
|
$ 86.71 |
|
|
|
Maximum offering price per share (100/94.25 of $86.71) |
|
$ 92.00 |
Class T: |
|
$ 86.03 |
|
|
|
Maximum offering price per share (100/96.50 of $86.03) |
|
$ 89.15 |
Class B: |
|
$ 76.80 |
|
|
|
Class C: |
|
$ 78.13 |
|
|
|
Institutional Class: |
|
$ 92.70 |
|
|
|
Class Z: |
|
$ 92.81 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Amounts in thousands Six months ended May 31, 2014 (Unaudited) |
||
|
|
|
Investment Income |
|
|
Dividends |
|
$ 16,305 |
Income from Fidelity Central Funds |
|
422 |
Total income |
|
16,727 |
|
|
|
Expenses |
|
|
Management fee |
$ 9,946 |
|
Transfer agent fees |
3,548 |
|
Distribution and service plan fees |
5,203 |
|
Accounting and security lending fees |
523 |
|
Custodian fees and expenses |
64 |
|
Independent trustees' compensation |
8 |
|
Registration fees |
66 |
|
Audit |
37 |
|
Legal |
10 |
|
Interest |
1 |
|
Miscellaneous |
14 |
|
Total expenses before reductions |
19,420 |
|
Expense reductions |
(38) |
19,382 |
Net investment income (loss) |
|
(2,655) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: |
|
|
Investment securities: |
|
|
Unaffiliated issuers |
267,292 |
|
Foreign currency transactions |
(283) |
|
Total net realized gain (loss) |
|
267,009 |
Change in net unrealized appreciation (depreciation) on: Investment securities |
(17,027) |
|
Assets and liabilities in foreign currencies |
(19) |
|
Total change in net unrealized appreciation (depreciation) |
|
(17,046) |
Net gain (loss) |
|
249,963 |
Net increase (decrease) in net assets resulting from operations |
|
$ 247,308 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Amounts in thousands |
Six months ended May 31, 2014 |
Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) |
$ (2,655) |
$ (1,083) |
Net realized gain (loss) |
267,009 |
645,979 |
Change in net unrealized appreciation (depreciation) |
(17,046) |
266,591 |
Net increase (decrease) in net assets resulting from operations |
247,308 |
911,487 |
Distributions to shareholders from net investment income |
- |
(3,311) |
Share transactions - net increase (decrease) |
(124,999) |
(367,790) |
Total increase (decrease) in net assets |
122,309 |
540,386 |
|
|
|
Net Assets |
|
|
Beginning of period |
3,501,973 |
2,961,587 |
End of period (including accumulated net investment loss of $7,091 and accumulated net investment loss of $4,436, respectively) |
$ 3,624,282 |
$ 3,501,973 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 80.87 |
$ 61.77 |
$ 54.56 |
$ 50.75 |
$ 42.07 |
$ 34.36 |
Income from Investment |
|
|
|
|
|
|
Net investment income (loss) E |
(.06) |
(.05) |
.02 |
(.04) |
(.14) |
(.01) |
Net realized and unrealized gain (loss) |
5.90 |
19.15 |
7.30 |
3.90 |
8.82 |
7.79 |
Total from investment operations |
5.84 |
19.10 |
7.32 |
3.86 |
8.68 |
7.78 |
Distributions from net investment income |
- |
- |
- |
- |
- |
(.06) |
Distributions from net realized gain |
- |
- |
(.11) |
(.05) |
- |
(.02) |
Total distributions |
- |
- |
(.11) |
(.05) |
- |
(.07) I |
Net asset value, end of period |
$ 86.71 |
$ 80.87 |
$ 61.77 |
$ 54.56 |
$ 50.75 |
$ 42.07 |
Total Return B, C, D |
7.22% |
30.92% |
13.45% |
7.61% |
20.63% |
22.71% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions |
1.07% A |
1.11% |
1.14% |
1.15% |
1.16% |
1.19% |
Expenses net of fee waivers, if any |
1.07% A |
1.11% |
1.14% |
1.15% |
1.16% |
1.19% |
Expenses net of all reductions |
1.07% A |
1.10% |
1.14% |
1.14% |
1.15% |
1.18% |
Net investment income (loss) |
(.15)% A |
(.07)% |
.04% |
(.08)% |
(.31)% |
(.04)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 794 |
$ 772 |
$ 632 |
$ 609 |
$ 636 |
$ 640 |
Portfolio turnover rate G |
49% A |
81% |
73% |
70% |
71% |
135% |
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 Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Total distributions of $.07 per share is comprised of distributions from net investment income of $.059 and distributions from net realized gain of $.015 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 80.31 |
$ 61.45 |
$ 54.26 |
$ 50.51 |
$ 41.94 |
$ 34.25 |
Income from Investment |
|
|
|
|
|
|
Net investment income (loss) E |
(.15) |
(.17) |
(.08) |
(.14) |
(.22) |
(.09) |
Net realized and unrealized gain (loss) |
5.87 |
19.03 |
7.27 |
3.89 |
8.79 |
7.78 |
Total from investment operations |
5.72 |
18.86 |
7.19 |
3.75 |
8.57 |
7.69 |
Net asset value, end of period |
$ 86.03 |
$ 80.31 |
$ 61.45 |
$ 54.26 |
$ 50.51 |
$ 41.94 |
Total Return B, C, D |
7.12% |
30.69% |
13.25% |
7.42% |
20.43% |
22.45% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions |
1.28% A |
1.29% |
1.31% |
1.32% |
1.34% |
1.39% |
Expenses net of fee waivers, if any |
1.28% A |
1.29% |
1.31% |
1.32% |
1.34% |
1.39% |
Expenses net of all reductions |
1.28% A |
1.28% |
1.31% |
1.31% |
1.33% |
1.39% |
Net investment income (loss) |
(.35)% A |
(.25)% |
(.13)% |
(.25)% |
(.48)% |
(.24)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 1,314 |
$ 1,283 |
$ 1,108 |
$ 1,139 |
$ 1,246 |
$ 1,268 |
Portfolio turnover rate G |
49% A |
81% |
73% |
70% |
71% |
135% |
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 Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 71.91 |
$ 55.36 |
$ 49.17 |
$ 46.04 |
$ 38.45 |
$ 31.57 |
Income from Investment |
|
|
|
|
|
|
Net investment income (loss) E |
(.36) |
(.52) |
(.39) |
(.42) |
(.44) |
(.26) |
Net realized and unrealized gain (loss) |
5.25 |
17.07 |
6.58 |
3.55 |
8.03 |
7.14 |
Total from investment operations |
4.89 |
16.55 |
6.19 |
3.13 |
7.59 |
6.88 |
Net asset value, end of period |
$ 76.80 |
$ 71.91 |
$ 55.36 |
$ 49.17 |
$ 46.04 |
$ 38.45 |
Total Return B, C, D |
6.80% |
29.90% |
12.59% |
6.80% |
19.74% |
21.79% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions |
1.89% A |
1.89% |
1.90% |
1.90% |
1.91% |
1.94% |
Expenses net of fee waivers, if any |
1.89% A |
1.89% |
1.90% |
1.90% |
1.91% |
1.94% |
Expenses net of all reductions |
1.89% A |
1.88% |
1.90% |
1.90% |
1.91% |
1.93% |
Net investment income (loss) |
(.97)% A |
(.85)% |
(.72)% |
(.83)% |
(1.06)% |
(.79)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 20 |
$ 23 |
$ 26 |
$ 35 |
$ 54 |
$ 70 |
Portfolio turnover rate G |
49% A |
81% |
73% |
70% |
71% |
135% |
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 Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 73.13 |
$ 56.27 |
$ 49.96 |
$ 46.77 |
$ 39.05 |
$ 32.06 |
Income from Investment |
|
|
|
|
|
|
Net investment income (loss) E |
(.34) |
(.50) |
(.37) |
(.41) |
(.44) |
(.26) |
Net realized and unrealized gain (loss) |
5.34 |
17.36 |
6.68 |
3.60 |
8.16 |
7.25 |
Total from investment operations |
5.00 |
16.86 |
6.31 |
3.19 |
7.72 |
6.99 |
Net asset value, end of period |
$ 78.13 |
$ 73.13 |
$ 56.27 |
$ 49.96 |
$ 46.77 |
$ 39.05 |
Total Return B, C, D |
6.84% |
29.96% |
12.63% |
6.82% |
19.77% |
21.80% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions |
1.82% A |
1.84% |
1.86% |
1.88% |
1.90% |
1.94% |
Expenses net of fee waivers, if any |
1.82% A |
1.84% |
1.86% |
1.88% |
1.90% |
1.94% |
Expenses net of all reductions |
1.81% A |
1.83% |
1.86% |
1.87% |
1.90% |
1.93% |
Net investment income (loss) |
(.89)% A |
(.79)% |
(.68)% |
(.81)% |
(1.05)% |
(.79)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 163 |
$ 157 |
$ 133 |
$ 136 |
$ 143 |
$ 142 |
Portfolio turnover rate G |
49% A |
81% |
73% |
70% |
71% |
135% |
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 Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 86.32 |
$ 65.92 |
$ 58.24 |
$ 54.14 |
$ 44.71 |
$ 36.61 |
Income from Investment |
|
|
|
|
|
|
Net investment income (loss) D |
.07 |
.20 |
.25 |
.16 |
.02 |
.12 |
Net realized and unrealized gain (loss) |
6.31 |
20.40 |
7.75 |
4.16 |
9.41 |
8.27 |
Total from investment operations |
6.38 |
20.60 |
8.00 |
4.32 |
9.43 |
8.39 |
Distributions from net investment income |
- |
(.20) |
- |
- |
- |
(.27) |
Distributions from net realized gain |
- |
- |
(.32) |
(.22) |
- |
(.02) |
Total distributions |
- |
(.20) |
(.32) |
(.22) |
- |
(.29) H |
Net asset value, end of period |
$ 92.70 |
$ 86.32 |
$ 65.92 |
$ 58.24 |
$ 54.14 |
$ 44.71 |
Total Return B, C |
7.39% |
31.36% |
13.83% |
7.99% |
21.09% |
23.11% |
Ratios to Average Net Assets E, G |
|
|
|
|
|
|
Expenses before reductions |
.77% A |
.78% |
.80% |
.80% |
.80% |
.85% |
Expenses net of fee waivers, if any |
.77% A |
.78% |
.80% |
.80% |
.80% |
.85% |
Expenses net of all reductions |
.77% A |
.77% |
.79% |
.79% |
.80% |
.84% |
Net investment income (loss) |
.16% A |
.27% |
.39% |
.27% |
.05% |
.30% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 1,334 |
$ 1,266 |
$ 1,063 |
$ 897 |
$ 973 |
$ 983 |
Portfolio turnover rate F |
49% A |
81% |
73% |
70% |
71% |
135% |
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Total distributions of $.29 per share is comprised of distributions from net investment income of $.274 and distributions from net realized gain of $.015 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Years ended |
|
(Unaudited) |
2013 G |
Selected Per-Share Data |
|
|
Net asset value, beginning of period |
$ 86.36 |
$ 78.49 |
Income from Investment Operations |
|
|
Net investment income (loss) D |
.13 |
.09 |
Net realized and unrealized gain (loss) |
6.32 |
7.78 |
Total from investment operations |
6.45 |
7.87 |
Net asset value, end of period |
$ 92.81 |
$ 86.36 |
Total ReturnB, C |
7.47% |
10.03% |
Ratios to Average Net Assets E,H |
|
|
Expenses before reductions |
.64% A |
.64% A |
Expenses net of fee waivers, if any |
.64% A |
.64% A |
Expenses net of all reductions |
.63% A |
.63% A |
Net investment income (loss) |
.29% A |
.38% A |
Supplemental Data |
|
|
Net assets, end of period (000 omitted) |
$ 118 |
$ 110 |
Portfolio turnover rate F |
49% A |
81% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period August 13, 2013 (commencement of sale of shares) to November 30, 2013.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
For the period ended May 31, 2014 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor® Equity Growth Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, Institutional Class and Class Z shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds 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
Semiannual Report
3. Significant Accounting Policies - continued
the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Valuation - continued
limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
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 May 31, 2014, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based
Semiannual Report
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
upon receipt of tax filings or other correspondence relating to the underlying investment. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
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, passive foreign investment companies (PFIC), redemptions in kind, partnerships, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation |
$ 855,050 |
Gross unrealized depreciation |
(50,835) |
Net unrealized appreciation (depreciation) on securities and other investments |
$ 804,215 |
|
|
Tax cost |
$ 2,839,698 |
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.
Fiscal year of expiration |
|
2017 |
$ (503,654) |
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.
Semiannual Report
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $872,566 and $1,019,659, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .55% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services.
For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
|
Distribution |
Service |
Total Fees |
Retained |
Class A |
-% |
.25% |
$ 998 |
$ 24 |
Class T |
.25% |
.25% |
3,290 |
43 |
Class B |
.75% |
.25% |
109 |
82 |
Class C |
.75% |
.25% |
806 |
42 |
|
|
|
$ 5,203 |
$ 191 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
5. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
|
Retained |
Class A |
$ 56 |
Class T |
17 |
Class B* |
6 |
Class C* |
3 |
|
$ 82 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund, except for Class Z. FIIOC receives an asset-based fee of Class Z's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
|
Amount |
% of |
Class A |
$ 930 |
.23 |
Class T |
1,228 |
.19 |
Class B |
33 |
.30 |
Class C |
181 |
.22 |
Institutional Class |
1,176 |
.18 |
Class Z |
-** |
.04 |
|
$ 3,548 |
|
* Annualized
** Amount represents twenty-six dollars.
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $13 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender |
Average Loan |
Weighted Average Interest Rate |
Interest |
Borrower |
$ 12,999 |
.31% |
$ 1 |
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $3 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
7. Security Lending - continued
loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $209. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $388, including $23 from securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $38 for the period.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
|
Six months ended |
Year ended |
From net investment income |
|
|
Institutional Class |
$ - |
$ 3,311 |
10. Share Transactions.
Transactions for each class of shares were as follows:
|
Shares |
Dollars |
||
|
Six months ended May 31, |
Year ended |
Six months ended May 31, |
Year ended |
Class A |
|
|
|
|
Shares sold |
736 |
1,339 |
$ 63,191 |
$ 93,392 |
Shares redeemed |
(1,120) |
(2,021) |
(95,589) |
(140,383) |
Net increase (decrease) |
(384) |
(682) |
$ (32,398) |
$ (46,991) |
Class T |
|
|
|
|
Shares sold |
883 |
1,688 |
$ 74,683 |
$ 116,336 |
Shares redeemed |
(1,594) |
(3,732) |
(134,254) |
(255,751) |
Net increase (decrease) |
(711) |
(2,044) |
$ (59,571) |
$ (139,415) |
Semiannual Report
10. Share Transactions - continued
|
Shares |
Dollars |
||
|
Six months ended May 31, |
Year ended |
Six months ended May 31, |
Year ended |
Class B |
|
|
|
|
Shares sold |
2 |
5 |
$ 101 |
$ 343 |
Shares redeemed |
(63) |
(159) |
(4,726) |
(9,702) |
Net increase (decrease) |
(61) |
(154) |
$ (4,625) |
$ (9,359) |
Class C |
|
|
|
|
Shares sold |
124 |
155 |
$ 9,694 |
$ 9,843 |
Shares redeemed |
(193) |
(367) |
(14,677) |
(22,580) |
Net increase (decrease) |
(69) |
(212) |
$ (4,983) |
$ (12,737) |
Institutional Class |
|
|
|
|
Shares sold |
1,314 |
4,554 |
$ 120,410 |
$ 315,218 |
Reinvestment of distributions |
- |
50 |
- |
3,246 |
Shares redeemed |
(1,597) |
(6,060) B |
(143,832) |
(477,852) B |
Net increase (decrease) |
(283) |
(1,456) |
$ (23,422) |
$ (159,388) |
Class Z |
|
|
|
|
Shares sold |
- |
1 |
$ - |
$ 100 |
Net increase (decrease) |
- |
1 |
$ - |
$ 100 |
A Share transactions for Class Z are for the period August 13, 2013 (commencement of sale of shares) to November 30, 2013.
B Amount includes in-kind redemptions.
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, the Fidelity Advisor Freedom Funds were the owners of record, in the aggregate, of approximately 26% of the total outstanding shares of the Fund.
Effective after the close of business on June 6, 2014, 10,458,435 shares of the Fund held by the Fidelity Advisor Freedom Funds were redeemed for investments with a value of $986,638,301. The Fidelity Advisor Freedom Funds' ownership in the Fund was reduced to 0%. The Fund did not recognize gain or loss for federal income tax purposes.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
JPMorgan Chase Bank
New York, NY
(Fidelity Investment logo)(registered trademark)
EPGZ-USAN-0714 1.9585494.100
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Equity Income
Fund - Institutional Class
Semiannual Report
May 31, 2014
(Fidelity Cover Art)
Shareholder Expense Example |
An example of shareholder expenses. |
|
Investment Changes |
A summary of major shifts in the fund's investments over the past six months. |
|
Investments |
A complete list of the fund's investments with their market values. |
|
Financial Statements |
Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
|
Notes |
Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (December 1, 2013 to May 31, 2014).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
|
Annualized |
Beginning |
Ending |
Expenses Paid |
Class A |
.96% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,067.50 |
$ 4.95 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,020.14 |
$ 4.84 |
Class T |
1.18% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,066.50 |
$ 6.08 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,019.05 |
$ 5.94 |
Class B |
1.80% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,063.20 |
$ 9.26 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,015.96 |
$ 9.05 |
Class C |
1.72% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,063.70 |
$ 8.85 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,016.36 |
$ 8.65 |
Institutional Class |
.70% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,069.10 |
$ 3.61 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,021.44 |
$ 3.53 |
Class Z |
.54% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,070.00 |
$ 2.79 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,022.24 |
$ 2.72 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
Semiannual Report
Top Ten Stocks as of May 31, 2014 |
||
|
% of fund's |
% of fund's net assets |
JPMorgan Chase & Co. |
3.9 |
4.0 |
Chevron Corp. |
3.0 |
2.9 |
Cisco Systems, Inc. |
2.5 |
2.2 |
General Electric Co. |
2.4 |
2.5 |
MetLife, Inc. |
2.3 |
2.3 |
Procter & Gamble Co. |
2.1 |
2.1 |
Johnson & Johnson |
2.1 |
1.9 |
Verizon Communications, Inc. |
1.8 |
1.3 |
Exxon Mobil Corp. |
1.8 |
2.4 |
Wells Fargo & Co. |
1.8 |
3.0 |
|
23.7 |
|
Top Five Market Sectors as of May 31, 2014 |
||
|
% of fund's |
% of fund's net assets |
Financials |
24.0 |
21.4 |
Energy |
14.9 |
14.0 |
Information Technology |
11.9 |
11.5 |
Consumer Staples |
10.6 |
8.8 |
Industrials |
9.6 |
10.4 |
Asset Allocation (% of fund's net assets) |
|||||||
As of May 31, 2014* |
As of November 30, 2013** |
||||||
Stocks 90.2% |
|
Stocks 90.8% |
|
||||
Bonds 0.2% |
|
Bonds 0.1% |
|
||||
Convertible |
|
Convertible |
|
||||
Other Investments 0.6% |
|
Other Investments 0.3% |
|
||||
Short-Term |
|
Short-Term |
|
||||
* Foreign investments |
10.5% |
|
** Foreign investments |
11.5% |
|
||
* Written options |
0.0% |
|
** Written options |
(0.1%) |
|
Semiannual Report
Showing Percentage of Net Assets
Common Stocks - 89.8% |
|||
Shares |
Value (000s) |
||
CONSUMER DISCRETIONARY - 6.6% |
|||
Auto Components - 0.2% |
|||
Gentex Corp. |
189,860 |
$ 5,491 |
|
Hotels, Restaurants & Leisure - 2.1% |
|||
Darden Restaurants, Inc. (e) |
229,600 |
11,508 |
|
McDonald's Corp. |
242,117 |
24,558 |
|
Texas Roadhouse, Inc. Class A |
214,562 |
5,424 |
|
Yum! Brands, Inc. |
151,121 |
11,683 |
|
|
53,173 |
||
Leisure Products - 0.3% |
|||
New Academy Holding Co. LLC unit (a)(j)(k) |
52,800 |
7,546 |
|
Media - 1.6% |
|||
Comcast Corp. Class A |
626,874 |
32,723 |
|
Sinclair Broadcast Group, Inc. Class A |
212,235 |
6,278 |
|
|
39,001 |
||
Multiline Retail - 1.8% |
|||
Kohl's Corp. |
273,776 |
14,904 |
|
Target Corp. |
515,455 |
29,257 |
|
|
44,161 |
||
Specialty Retail - 0.6% |
|||
Abercrombie & Fitch Co. Class A |
148,043 |
5,627 |
|
Foot Locker, Inc. |
133,131 |
6,414 |
|
Staples, Inc. |
369,733 |
4,159 |
|
|
16,200 |
||
TOTAL CONSUMER DISCRETIONARY |
165,572 |
||
CONSUMER STAPLES - 10.6% |
|||
Beverages - 2.0% |
|||
Molson Coors Brewing Co. Class B |
162,005 |
10,649 |
|
PepsiCo, Inc. |
113,122 |
9,992 |
|
The Coca-Cola Co. |
726,672 |
29,728 |
|
|
50,369 |
||
Food & Staples Retailing - 1.6% |
|||
CVS Caremark Corp. |
185,000 |
14,489 |
|
Wal-Mart Stores, Inc. |
154,750 |
11,880 |
|
Walgreen Co. |
208,844 |
15,018 |
|
|
41,387 |
||
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
CONSUMER STAPLES - continued |
|||
Food Products - 0.9% |
|||
B&G Foods, Inc. Class A |
70,054 |
$ 2,400 |
|
Kellogg Co. |
285,552 |
19,697 |
|
|
22,097 |
||
Household Products - 2.1% |
|||
Procter & Gamble Co. |
654,217 |
52,854 |
|
Tobacco - 4.0% |
|||
Altria Group, Inc. |
692,065 |
28,762 |
|
British American Tobacco PLC sponsored ADR |
100,511 |
12,188 |
|
Japan Tobacco, Inc. |
38,700 |
1,315 |
|
Lorillard, Inc. |
454,553 |
28,260 |
|
Philip Morris International, Inc. |
161,212 |
14,274 |
|
Reynolds American, Inc. |
245,446 |
14,636 |
|
|
99,435 |
||
TOTAL CONSUMER STAPLES |
266,142 |
||
ENERGY - 14.0% |
|||
Energy Equipment & Services - 1.8% |
|||
Ensco PLC Class A |
192,324 |
10,128 |
|
National Oilwell Varco, Inc. |
141,849 |
11,613 |
|
Noble Corp. |
307,414 |
9,671 |
|
Schlumberger Ltd. |
119,457 |
12,428 |
|
|
43,840 |
||
Oil, Gas & Consumable Fuels - 12.2% |
|||
Access Midstream Partners LP |
81,247 |
5,118 |
|
Anadarko Petroleum Corp. |
124,445 |
12,800 |
|
Apache Corp. |
214,027 |
19,952 |
|
Canadian Natural Resources Ltd. |
359,300 |
14,623 |
|
Chevron Corp. |
604,769 |
74,260 |
|
CONSOL Energy, Inc. |
250,475 |
11,063 |
|
EV Energy Partners LP |
243,025 |
8,975 |
|
Exxon Mobil Corp. |
450,560 |
45,295 |
|
Gazprom OAO sponsored ADR (Reg. S) |
136,300 |
1,111 |
|
Holly Energy Partners LP |
114,912 |
4,061 |
|
HollyFrontier Corp. |
58,877 |
2,900 |
|
Imperial Oil Ltd. |
129,500 |
6,376 |
|
Legacy Reserves LP |
115,099 |
3,384 |
|
Markwest Energy Partners LP |
257,191 |
15,933 |
|
Occidental Petroleum Corp. |
154,423 |
15,394 |
|
Royal Dutch Shell PLC Class A sponsored ADR |
140,158 |
11,016 |
|
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
ENERGY - continued |
|||
Oil, Gas & Consumable Fuels - continued |
|||
Scorpio Tankers, Inc. |
126,500 |
$ 1,147 |
|
Suncor Energy, Inc. |
486,500 |
18,723 |
|
The Williams Companies, Inc. |
695,250 |
32,649 |
|
Williams Partners LP |
61,100 |
3,245 |
|
|
308,025 |
||
TOTAL ENERGY |
351,865 |
||
FINANCIALS - 22.8% |
|||
Banks - 9.3% |
|||
Bank of America Corp. |
270,900 |
4,101 |
|
CIT Group, Inc. (i) |
72,362 |
3,219 |
|
Citigroup, Inc. |
236,500 |
11,250 |
|
Comerica, Inc. |
104,780 |
5,026 |
|
FirstMerit Corp. |
169,240 |
3,160 |
|
JPMorgan Chase & Co. |
1,763,557 |
98,004 |
|
M&T Bank Corp. (e) |
194,017 |
23,548 |
|
PNC Financial Services Group, Inc. |
71,200 |
6,071 |
|
Standard Chartered PLC (United Kingdom) |
405,343 |
9,121 |
|
U.S. Bancorp |
560,100 |
23,631 |
|
Valley National Bancorp (e) |
226,900 |
2,199 |
|
Wells Fargo & Co. |
871,950 |
44,278 |
|
|
233,608 |
||
Capital Markets - 5.4% |
|||
Apollo Global Management LLC Class A |
161,502 |
4,010 |
|
Apollo Investment Corp. |
888,252 |
7,444 |
|
Ares Capital Corp. |
325,442 |
5,611 |
|
Ares Management LP |
114,800 |
2,181 |
|
Ashmore Group PLC (e) |
837,305 |
4,959 |
|
BlackRock, Inc. Class A |
37,577 |
11,457 |
|
Carlyle Group LP |
142,800 |
4,423 |
|
Charles Schwab Corp. |
195,406 |
4,926 |
|
Greenhill & Co., Inc. (e) |
54,823 |
2,726 |
|
Invesco Ltd. |
124,100 |
4,554 |
|
KKR & Co. LP |
1,665,196 |
37,850 |
|
Morgan Stanley |
375,942 |
11,602 |
|
State Street Corp. |
154,599 |
10,091 |
|
The Blackstone Group LP |
828,703 |
25,756 |
|
|
137,590 |
||
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
FINANCIALS - continued |
|||
Diversified Financial Services - 0.6% |
|||
Berkshire Hathaway, Inc. Class B (a) |
93,785 |
$ 12,036 |
|
TPG Specialty Lending, Inc. |
126,100 |
2,672 |
|
|
14,708 |
||
Insurance - 4.7% |
|||
ACE Ltd. |
202,111 |
20,961 |
|
Allied World Assurance Co. Holdings Ltd. |
34,500 |
1,294 |
|
Brasil Insurance Participacoes e Administracao SA |
539,700 |
1,927 |
|
esure Group PLC |
611,000 |
2,724 |
|
MetLife, Inc. |
1,115,557 |
56,815 |
|
Prudential Financial, Inc. |
115,898 |
9,522 |
|
The Chubb Corp. |
134,667 |
12,478 |
|
The Travelers Companies, Inc. |
136,849 |
12,789 |
|
|
118,510 |
||
Real Estate Investment Trusts - 2.6% |
|||
American Capital Agency Corp. |
433,580 |
10,289 |
|
Annaly Capital Management, Inc. |
802,994 |
9,467 |
|
CBL & Associates Properties, Inc. |
280,000 |
5,270 |
|
Coresite Realty Corp. |
101,920 |
3,231 |
|
First Potomac Realty Trust |
473,077 |
6,188 |
|
Home Properties, Inc. |
153,430 |
9,540 |
|
Piedmont Office Realty Trust, Inc. Class A (e) |
157,535 |
2,933 |
|
Rayonier, Inc. |
97,852 |
4,658 |
|
Retail Properties America, Inc. |
375,097 |
5,641 |
|
Two Harbors Investment Corp. |
565,041 |
5,950 |
|
Ventas, Inc. |
42,294 |
2,825 |
|
|
65,992 |
||
Real Estate Management & Development - 0.1% |
|||
Beazer Pre-Owned Rental Homes, Inc. (a)(k) |
96,000 |
1,788 |
|
Thrifts & Mortgage Finance - 0.1% |
|||
Radian Group, Inc. |
124,900 |
1,801 |
|
TOTAL FINANCIALS |
573,997 |
||
HEALTH CARE - 7.9% |
|||
Biotechnology - 0.4% |
|||
Amgen, Inc. |
80,149 |
9,296 |
|
Health Care Equipment & Supplies - 0.6% |
|||
Baxter International, Inc. |
91,000 |
6,771 |
|
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
HEALTH CARE - continued |
|||
Health Care Equipment & Supplies - continued |
|||
Covidien PLC |
71,700 |
$ 5,242 |
|
St. Jude Medical, Inc. |
40,262 |
2,613 |
|
|
14,626 |
||
Health Care Providers & Services - 0.9% |
|||
Aetna, Inc. |
41,215 |
3,196 |
|
Quest Diagnostics, Inc. |
100,036 |
5,991 |
|
UnitedHealth Group, Inc. |
167,876 |
13,368 |
|
WellPoint, Inc. |
44 |
5 |
|
|
22,560 |
||
Pharmaceuticals - 6.0% |
|||
AbbVie, Inc. |
47,354 |
2,573 |
|
Astellas Pharma, Inc. |
617,100 |
7,939 |
|
AstraZeneca PLC sponsored ADR |
162,212 |
11,712 |
|
Johnson & Johnson |
512,218 |
51,970 |
|
Merck & Co., Inc. |
519,268 |
30,045 |
|
Pfizer, Inc. |
863,813 |
25,595 |
|
Sanofi SA |
72,826 |
7,786 |
|
Teva Pharmaceutical Industries Ltd. sponsored ADR |
277,398 |
14,006 |
|
|
151,626 |
||
TOTAL HEALTH CARE |
198,108 |
||
INDUSTRIALS - 9.1% |
|||
Aerospace & Defense - 0.8% |
|||
United Technologies Corp. |
175,807 |
20,432 |
|
Air Freight & Logistics - 2.3% |
|||
C.H. Robinson Worldwide, Inc. |
206,479 |
12,360 |
|
PostNL NV (a) |
757,600 |
3,714 |
|
United Parcel Service, Inc. Class B |
393,490 |
40,876 |
|
|
56,950 |
||
Airlines - 0.1% |
|||
Copa Holdings SA Class A |
8,700 |
1,243 |
|
Commercial Services & Supplies - 1.3% |
|||
Intrum Justitia AB |
161,784 |
5,036 |
|
KAR Auction Services, Inc. |
156,904 |
4,792 |
|
Republic Services, Inc. |
634,789 |
22,472 |
|
|
32,300 |
||
Electrical Equipment - 0.6% |
|||
Eaton Corp. PLC |
53,300 |
3,928 |
|
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
INDUSTRIALS - continued |
|||
Electrical Equipment - continued |
|||
Emerson Electric Co. |
76,270 |
$ 5,089 |
|
Hubbell, Inc. Class B |
48,569 |
5,683 |
|
|
14,700 |
||
Industrial Conglomerates - 2.4% |
|||
General Electric Co. |
2,292,733 |
61,422 |
|
Machinery - 0.8% |
|||
Cummins, Inc. |
50,637 |
7,744 |
|
Stanley Black & Decker, Inc. (i) |
151,826 |
13,270 |
|
|
21,014 |
||
Professional Services - 0.5% |
|||
Acacia Research Corp. |
202,860 |
3,274 |
|
Bureau Veritas SA |
86,073 |
2,595 |
|
Michael Page International PLC |
732,018 |
5,628 |
|
|
11,497 |
||
Road & Rail - 0.3% |
|||
Union Pacific Corp. |
43,902 |
8,748 |
|
TOTAL INDUSTRIALS |
228,306 |
||
INFORMATION TECHNOLOGY - 11.1% |
|||
Communications Equipment - 2.9% |
|||
Cisco Systems, Inc. |
2,548,453 |
62,743 |
|
QUALCOMM, Inc. |
129,689 |
10,433 |
|
|
73,176 |
||
Electronic Equipment & Components - 0.4% |
|||
TE Connectivity Ltd. |
159,030 |
9,456 |
|
Internet Software & Services - 0.3% |
|||
Yahoo!, Inc. (a) |
241,700 |
8,375 |
|
IT Services - 3.5% |
|||
Accenture PLC Class A |
81,896 |
6,670 |
|
IBM Corp. |
239,223 |
44,103 |
|
Paychex, Inc. |
763,278 |
31,378 |
|
Quindell PLC |
5,244,900 |
1,824 |
|
Xerox Corp. |
410,915 |
5,075 |
|
|
89,050 |
||
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
INFORMATION TECHNOLOGY - continued |
|||
Semiconductors & Semiconductor Equipment - 1.6% |
|||
Applied Materials, Inc. |
957,177 |
$ 19,325 |
|
Broadcom Corp. Class A |
677,529 |
21,593 |
|
|
40,918 |
||
Software - 1.8% |
|||
CA Technologies, Inc. |
230,081 |
6,601 |
|
Microsoft Corp. (i) |
928,138 |
37,998 |
|
|
44,599 |
||
Technology Hardware, Storage & Peripherals - 0.6% |
|||
Apple, Inc. |
15,103 |
9,560 |
|
EMC Corp. |
216,519 |
5,751 |
|
|
15,311 |
||
TOTAL INFORMATION TECHNOLOGY |
280,885 |
||
MATERIALS - 1.3% |
|||
Chemicals - 0.4% |
|||
Potash Corp. of Saskatchewan, Inc. |
66,400 |
2,410 |
|
RPM International, Inc. |
145,099 |
6,249 |
|
Tronox Ltd. Class A |
76,965 |
2,045 |
|
|
10,704 |
||
Metals & Mining - 0.9% |
|||
Commercial Metals Co. |
294,254 |
5,223 |
|
Freeport-McMoRan Copper & Gold, Inc. |
465,414 |
15,847 |
|
Goldcorp, Inc. |
13,700 |
322 |
|
SunCoke Energy Partners LP |
38,412 |
1,101 |
|
|
22,493 |
||
TOTAL MATERIALS |
33,197 |
||
TELECOMMUNICATION SERVICES - 3.5% |
|||
Diversified Telecommunication Services - 3.1% |
|||
AT&T, Inc. |
679,727 |
24,110 |
|
Verizon Communications, Inc. |
923,006 |
46,113 |
|
Verizon Communications, Inc. CDI |
128,984 |
6,435 |
|
|
76,658 |
||
Wireless Telecommunication Services - 0.4% |
|||
Vodafone Group PLC |
3,076,582 |
10,787 |
|
TOTAL TELECOMMUNICATION SERVICES |
87,445 |
||
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
UTILITIES - 2.9% |
|||
Electric Utilities - 2.9% |
|||
American Electric Power Co., Inc. |
317,915 |
$ 16,961 |
|
Hawaiian Electric Industries, Inc. (e) |
218,498 |
5,255 |
|
Pinnacle West Capital Corp. |
42,500 |
2,355 |
|
PPL Corp. |
478,591 |
16,794 |
|
Southern Co. |
561,125 |
24,566 |
|
Xcel Energy, Inc. |
262,029 |
8,060 |
|
|
73,991 |
||
Multi-Utilities - 0.0% |
|||
CenterPoint Energy, Inc. |
30,314 |
731 |
|
TOTAL UTILITIES |
74,722 |
||
TOTAL COMMON STOCKS (Cost $1,868,328) |
|
||
Preferred Stocks - 1.6% |
|||
|
|
|
|
Convertible Preferred Stocks - 1.2% |
|||
CONSUMER STAPLES - 0.0% |
|||
Food Products - 0.0% |
|||
Post Holdings, Inc. 5.25% (a) |
10,000 |
1,058 |
|
FINANCIALS - 0.3% |
|||
Real Estate Investment Trusts - 0.3% |
|||
American Tower Corp. Series A, 5.25% (a) |
13,000 |
1,391 |
|
Crown Castle International Corp. Series A, 4.50% |
43,800 |
4,556 |
|
Weyerhaeuser Co. Series A, 6.375% |
43,200 |
2,531 |
|
|
8,478 |
||
HEALTH CARE - 0.2% |
|||
Health Care Equipment & Supplies - 0.2% |
|||
Alere, Inc. 3.00% |
11,539 |
3,623 |
|
INDUSTRIALS - 0.1% |
|||
Aerospace & Defense - 0.1% |
|||
United Technologies Corp. 7.50% |
31,500 |
2,073 |
|
Preferred Stocks - continued |
|||
Shares |
Value (000s) |
||
Convertible Preferred Stocks - continued |
|||
UTILITIES - 0.6% |
|||
Electric Utilities - 0.2% |
|||
NextEra Energy, Inc.: |
|
|
|
5.889% |
35,144 |
$ 2,195 |
|
Series E, 5.599% |
61,200 |
3,927 |
|
|
6,122 |
||
Multi-Utilities - 0.4% |
|||
CenterPoint Energy, Inc. 2.00% ZENS |
70,100 |
3,821 |
|
Dominion Resources, Inc.: |
|
|
|
Series A, 6.125% |
43,400 |
2,486 |
|
Series B, 6.00% |
43,400 |
2,502 |
|
|
8,809 |
||
TOTAL UTILITIES |
14,931 |
||
TOTAL CONVERTIBLE PREFERRED STOCKS |
30,163 |
||
Nonconvertible Preferred Stocks - 0.4% |
|||
FINANCIALS - 0.4% |
|||
Consumer Finance - 0.4% |
|||
Ally Financial, Inc.: |
|
|
|
7.00% (g) |
8,531 |
8,604 |
|
Series A, 8.50% |
60,466 |
1,672 |
|
|
10,276 |
||
TOTAL PREFERRED STOCKS (Cost $35,784) |
|
Corporate Bonds - 3.5% |
||||
|
Principal Amount (000s) (d) |
|
||
Convertible Bonds - 3.3% |
||||
CONSUMER DISCRETIONARY - 0.3% |
||||
Automobiles - 0.2% |
||||
Ford Motor Co. 4.25% 11/15/16 |
|
$ 800 |
1,531 |
|
Volkswagen International Finance NV 5.5% 11/9/15 (g) |
EUR |
2,400 |
3,908 |
|
|
5,439 |
|||
Diversified Consumer Services - 0.1% |
||||
Carriage Services, Inc. 2.75% 3/15/21 (g) |
|
1,000 |
1,078 |
|
Corporate Bonds - continued |
||||
|
Principal Amount (000s) (d) |
Value (000s) |
||
Convertible Bonds - continued |
||||
CONSUMER DISCRETIONARY - continued |
||||
Media - 0.0% |
||||
Liberty Media Corp. 3.5% 1/15/31 |
|
$ 958 |
$ 887 |
|
TOTAL CONSUMER DISCRETIONARY |
7,404 |
|||
ENERGY - 0.4% |
||||
Oil, Gas & Consumable Fuels - 0.4% |
||||
Amyris, Inc. 3% 2/27/17 |
|
516 |
421 |
|
BPZ Energy, Inc. 8.5% 10/1/17 |
|
1,070 |
1,252 |
|
Chesapeake Energy Corp. 2.5% 5/15/37 |
|
3,600 |
3,802 |
|
Clean Energy Fuels Corp. 5.25% 10/1/18 (g) |
|
1,410 |
1,358 |
|
Ship Finance International Ltd. 3.25% 2/1/18 |
|
2,810 |
3,143 |
|
|
9,976 |
|||
FINANCIALS - 0.4% |
||||
Capital Markets - 0.1% |
||||
Ares Capital Corp. 5.75% 2/1/16 |
|
1,830 |
1,960 |
|
Insurance - 0.1% |
||||
Fidelity National Financial, Inc. 4.25% 8/15/18 |
|
1,850 |
3,069 |
|
Thrifts & Mortgage Finance - 0.2% |
||||
MGIC Investment Corp. 9% 4/1/63 (g) |
|
3,390 |
4,335 |
|
TOTAL FINANCIALS |
9,364 |
|||
HEALTH CARE - 0.8% |
||||
Biotechnology - 0.1% |
||||
Gilead Sciences, Inc. 1.625% 5/1/16 |
|
250 |
892 |
|
Theravance, Inc. 2.125% 1/15/23 |
|
2,260 |
2,698 |
|
|
3,590 |
|||
Health Care Equipment & Supplies - 0.1% |
||||
Teleflex, Inc. 3.875% 8/1/17 |
|
1,380 |
2,445 |
|
Health Care Providers & Services - 0.6% |
||||
HealthSouth Corp. 2% 12/1/43 |
|
4,116 |
4,445 |
|
Molina Healthcare, Inc. 1.125% 1/15/20 |
|
1,590 |
1,979 |
|
WellPoint, Inc. 2.75% 10/15/42 |
|
5,070 |
7,871 |
|
|
14,295 |
|||
TOTAL HEALTH CARE |
20,330 |
|||
Corporate Bonds - continued |
||||
|
Principal Amount (000s) (d) |
Value (000s) |
||
Convertible Bonds - continued |
||||
INDUSTRIALS - 0.3% |
||||
Commercial Services & Supplies - 0.1% |
||||
Covanta Holding Corp. 3.25% 7/1/14 |
|
$ 1,830 |
$ 2,162 |
|
Construction & Engineering - 0.1% |
||||
Layne Christensen Co. 4.25% 11/15/18 (g) |
|
1,080 |
1,046 |
|
MasTec, Inc.: |
|
|
|
|
4% 6/15/14 |
|
890 |
2,020 |
|
4.25% 12/15/14 |
|
420 |
980 |
|
|
4,046 |
|||
Machinery - 0.1% |
||||
Navistar International Corp. 4.75% 4/15/19 (g) |
|
1,530 |
1,566 |
|
TOTAL INDUSTRIALS |
7,774 |
|||
INFORMATION TECHNOLOGY - 0.8% |
||||
Communications Equipment - 0.2% |
||||
InterDigital, Inc. 2.5% 3/15/16 |
|
4,730 |
4,919 |
|
Liberty Interactive LLC 0.75% 3/30/43 |
|
1,250 |
1,631 |
|
|
6,550 |
|||
Semiconductors & Semiconductor Equipment - 0.4% |
||||
Canadian Solar, Inc. 4.25% 2/15/19 (g) |
|
1,760 |
1,709 |
|
GT Advanced Technologies, Inc.: |
|
|
|
|
3% 10/1/17 |
|
3,530 |
8,086 |
|
3% 12/15/20 |
|
720 |
1,171 |
|
|
10,966 |
|||
Software - 0.2% |
||||
TiVo, Inc. 4% 3/15/16 (g) |
|
3,230 |
4,070 |
|
TOTAL INFORMATION TECHNOLOGY |
21,586 |
|||
MATERIALS - 0.2% |
||||
Metals & Mining - 0.2% |
||||
Goldcorp, Inc. 2% 8/1/14 |
|
3,120 |
3,126 |
|
Newmont Mining Corp. 1.25% 7/15/14 |
|
2,000 |
2,000 |
|
|
5,126 |
|||
Corporate Bonds - continued |
||||
|
Principal Amount (000s) (d) |
Value (000s) |
||
Convertible Bonds - continued |
||||
UTILITIES - 0.1% |
||||
Electric Utilities - 0.1% |
||||
NRG Yield, Inc. 3.5% 2/1/19 (g) |
|
$ 2,480 |
$ 2,769 |
|
TOTAL CONVERTIBLE BONDS |
84,329 |
|||
Nonconvertible Bonds - 0.2% |
||||
INDUSTRIALS - 0.1% |
||||
Commercial Services & Supplies - 0.1% |
||||
APX Group, Inc. 8.75% 12/1/20 |
|
2,545 |
2,596 |
|
MATERIALS - 0.1% |
||||
Metals & Mining - 0.1% |
||||
JMC Steel Group, Inc. 8.25% 3/15/18 (g) |
|
1,489 |
1,526 |
|
Walter Energy, Inc. 8.5% 4/15/21 |
|
2,030 |
1,096 |
|
|
2,622 |
|||
TOTAL NONCONVERTIBLE BONDS |
5,218 |
|||
TOTAL CORPORATE BONDS (Cost $79,021) |
|
|||
Other - 0.5% |
||||
ENERGY - 0.5% |
||||
Oil, Gas & Consumable Fuels - 0.5% |
||||
EQTY ER Holdings, LLC 12% 1/28/18 (f)(k)(l) |
|
5,667 |
5,667 |
Shares |
|
EQTY ER Holdings, LLC (f)(k)(l) |
|
2,833,333 |
6,344 |
|
TOTAL OTHER (Cost $8,504) . |
|
|||
Preferred Securities - 0.1% |
||||
|
Principal Amount (000s) (d) |
Value (000s) |
||
FINANCIALS - 0.1% |
||||
Diversified Financial Services - 0.1% |
||||
Baggot Securities Ltd. 10.24% (g)(h) (Cost $1,520) |
EUR |
990 |
|
$ 1,514 |
Money Market Funds - 5.1% |
|||
Shares |
|
||
Fidelity Cash Central Fund, 0.10% (b) |
109,101,870 |
109,102 |
|
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) |
18,367,948 |
18,368 |
|
TOTAL MONEY MARKET FUNDS (Cost $127,470) |
|
||
TOTAL INVESTMENT PORTFOLIO - 100.6% (Cost $2,120,627) |
2,531,220 |
||
NET OTHER ASSETS (LIABILITIES) - (0.6)% |
(14,962) |
||
NET ASSETS - 100% |
$ 2,516,258 |
Written Options |
|||||||
Expiration Date/Exercise Price |
Number of Contracts |
Premium (000s) |
Value (000s) |
||||
Call Options |
|||||||
CIT Group, Inc. |
7/19/14 - |
362 |
$ 39 |
$ (3) |
|||
Microsoft Corp. |
7/19/14 - |
1,420 |
105 |
(69) |
|||
Stanley Black & Decker, Inc. |
7/19/14 - |
800 |
120 |
(260) |
|||
TOTAL WRITTEN OPTIONS |
$ 264 |
$ (332) |
Currency Abbreviations |
||
EUR |
- |
European Monetary Unit |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Amount is stated in United States dollars unless otherwise noted. |
(e) Security or a portion of the security is on loan at period end. |
(f) Affiliated company |
(g) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $33,483,000 or 1.3% of net assets. |
(h) Security is perpetual in nature with no stated maturity date. |
(i) Security or a portion of the security is pledged as collateral for call options written. At period end, the value of securities pledged amounted to $14,416,000. |
(j) Investment is owned by an entity that is treated as a corporation for U.S. tax purposes and is owned by the Fund. |
(k) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $21,345,000 or 0.8% of net assets. |
Additional information on each restricted holding is as follows: |
Security |
Acquisition Date |
Acquisition Cost (000s) |
Beazer Pre-Owned Rental Homes, Inc. |
5/3/12 - 10/23/12 |
$ 1,920 |
EQTY ER Holdings, LLC 12% 1/28/18 |
1/29/13 |
$ 5,667 |
EQTY ER Holdings, LLC |
1/29/13 |
$ 2,833 |
New Academy Holding Co. LLC unit |
8/1/11 |
$ 5,565 |
(l) Investments represent a non-operating interest in oil and gas wells through an entity owned by the fund that is treated as a corporation for U.S. tax purposes. |
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 |
$ 31 |
Fidelity Securities Lending Cash Central Fund |
46 |
Total |
$ 77 |
Other Affiliated Issuers |
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate |
Value, |
Purchases |
Sales |
Income |
Value, |
EQTY ER Holdings, LLC 12% 1/28/18 |
$ 5,667 |
$ - |
$ - |
$ 680 |
$ 5,667 |
EQTY ER Holdings, LLC |
2,833 |
- |
- |
- |
6,344 |
Total |
$ 8,500 |
$ - |
$ - |
$ 680 |
$ 12,011 |
Other Information |
The following is a summary of the inputs used, as of May 31, 2014, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
||||
Description |
Total |
Level 1 |
Level 2 |
Level 3 |
Investments in Securities: |
||||
Equities: |
||||
Consumer Discretionary |
$ 165,572 |
$ 158,026 |
$ - |
$ 7,546 |
Consumer Staples |
267,200 |
265,885 |
1,315 |
- |
Energy |
351,865 |
351,865 |
- |
- |
Financials |
592,751 |
575,272 |
15,691 |
1,788 |
Health Care |
201,731 |
186,006 |
15,725 |
- |
Industrials |
230,379 |
230,379 |
- |
- |
Information Technology |
280,885 |
280,885 |
- |
- |
Materials |
33,197 |
33,197 |
- |
- |
Telecommunication Services |
87,445 |
76,658 |
10,787 |
- |
Utilities |
89,653 |
79,710 |
9,943 |
- |
Corporate Bonds |
89,547 |
- |
89,547 |
- |
Other/Energy |
12,011 |
- |
12,011 |
|
Preferred Securities |
1,514 |
- |
1,514 |
- |
Money Market Funds |
127,470 |
127,470 |
- |
- |
Total Investments in Securities: |
$ 2,531,220 |
$ 2,365,353 |
$ 156,533 |
$ 9,334 |
Derivative Instruments: |
||||
Liabilities |
||||
Written Options |
$ (332) |
$ (332) |
$ - |
$ - |
Value of Derivative Instruments |
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of May 31, 2014. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements. |
Primary Risk Exposure / |
Value |
|
|
Asset |
Liability |
Equity Risk |
||
Written Options (a) |
$ - |
$ (332) |
Total Value of Derivatives |
$ - |
$ (332) |
(a) Gross value is presented in the Statement of Assets and Liabilities in the written options, at value line-item. |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited): |
United States of America |
89.5% |
United Kingdom |
3.6% |
Canada |
1.9% |
Switzerland |
1.2% |
Others (Individually Less Than 1%) |
3.8% |
|
100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Amounts in thousands (except per-share amounts) |
May 31, 2014 (Unaudited) |
|
|
|
|
Assets |
|
|
Investment in securities, at value (including securities loaned of $17,865) - See accompanying schedule: Unaffiliated issuers (cost $1,984,653) |
$ 2,391,739 |
|
Fidelity Central Funds (cost $127,470) |
127,470 |
|
Other affiliated issuers (cost $8,504) |
12,011 |
|
Total Investments (cost $2,120,627) |
|
$ 2,531,220 |
Receivable for investments sold |
|
1,739 |
Receivable for fund shares sold |
|
1,149 |
Dividends receivable |
|
6,120 |
Interest receivable |
|
887 |
Distributions receivable from Fidelity Central Funds |
|
33 |
Prepaid expenses |
|
1 |
Other receivables |
|
112 |
Total assets |
|
2,541,261 |
|
|
|
Liabilities |
|
|
Payable for investments purchased |
$ 158 |
|
Payable for fund shares redeemed |
2,597 |
|
Accrued management fee |
935 |
|
Distribution and service plan fees payable |
765 |
|
Written options, at value (premium received $264) |
332 |
|
Other affiliated payables |
486 |
|
Other payables and accrued expenses |
141 |
|
Deferred taxes |
1,221 |
|
Collateral on securities loaned, at value |
18,368 |
|
Total liabilities |
|
25,003 |
|
|
|
Net Assets |
|
$ 2,516,258 |
Net Assets consist of: |
|
|
Paid in capital |
|
$ 2,069,457 |
Undistributed net investment income |
|
9,777 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions |
|
27,721 |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies |
|
409,303 |
Net Assets |
|
$ 2,516,258 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Amounts in thousands (except per-share amounts) |
May 31, 2014 (Unaudited) |
|
|
|
|
Calculation of Maximum Offering Price Class A: |
|
$ 33.22 |
|
|
|
Maximum offering price per share (100/94.25 of $33.22) |
|
$ 35.25 |
Class T: |
|
$ 33.75 |
|
|
|
Maximum offering price per share (100/96.50 of $33.75) |
|
$ 34.97 |
Class B: |
|
$ 33.44 |
|
|
|
Class C: |
|
$ 33.37 |
|
|
|
Institutional Class: |
|
$ 34.32 |
|
|
|
Class Z: |
|
$ 34.33 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Amounts in thousands Six months ended May 31, 2014 (Unaudited) |
||
|
|
|
Investment Income |
|
|
Dividends |
|
$ 36,790 |
Special dividends |
|
8,544 |
Interest (including $680 earned from other affiliated issuers) |
|
1,931 |
Income from Fidelity Central Funds |
|
77 |
Total income |
|
47,342 |
|
|
|
Expenses |
|
|
Management fee |
$ 5,547 |
|
Transfer agent fees |
2,520 |
|
Distribution and service plan fees |
4,534 |
|
Accounting and security lending fees |
369 |
|
Custodian fees and expenses |
28 |
|
Independent trustees' compensation |
5 |
|
Registration fees |
69 |
|
Audit |
43 |
|
Legal |
5 |
|
Miscellaneous |
8 |
|
Total expenses before reductions |
13,128 |
|
Expense reductions |
(29) |
13,099 |
Net investment income (loss) |
|
34,243 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: |
|
|
Investment securities: |
|
|
Unaffiliated issuers |
133,745 |
|
Foreign currency transactions |
3 |
|
Written options |
1,505 |
|
Total net realized gain (loss) |
|
135,253 |
Change in net unrealized appreciation (depreciation) on: Investment securities |
(9,063) |
|
Assets and liabilities in foreign currencies |
(16) |
|
Written options |
588 |
|
Total change in net unrealized appreciation (depreciation) |
|
(8,491) |
Net gain (loss) |
|
126,762 |
Net increase (decrease) in net assets resulting from operations |
|
$ 161,005 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Amounts in thousands |
Six months ended |
Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) |
$ 34,243 |
$ 45,925 |
Net realized gain (loss) |
135,253 |
210,951 |
Change in net unrealized appreciation (depreciation) |
(8,491) |
276,538 |
Net increase (decrease) in net assets resulting |
161,005 |
533,414 |
Distributions to shareholders from net investment income |
(35,573) |
(43,731) |
Distributions to shareholders from net realized gain |
- |
(2,444) |
Total distributions |
(35,573) |
(46,175) |
Share transactions - net increase (decrease) |
(75,628) |
(140,174) |
Total increase (decrease) in net assets |
49,804 |
347,065 |
|
|
|
Net Assets |
|
|
Beginning of period |
2,466,454 |
2,119,389 |
End of period (including undistributed net investment income of $9,777 and undistributed net investment income of $11,107, respectively) |
$ 2,516,258 |
$ 2,466,454 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 31.60 |
$ 25.55 |
$ 22.18 |
$ 21.07 |
$ 20.26 |
$ 16.72 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E |
.46 I |
.60 |
.61 |
.42 |
.25 |
.28 |
Net realized and unrealized gain (loss) |
1.65 |
6.06 |
3.32 |
1.11 |
.81 |
3.58 |
Total from investment operations |
2.11 |
6.66 |
3.93 |
1.53 |
1.06 |
3.86 |
Distributions from net investment income |
(.49) |
(.58) |
(.56) |
(.42) |
(.25) |
(.32) |
Distributions from net realized gain |
- |
(.03) |
- |
- |
- |
- |
Total distributions |
(.49) |
(.61) |
(.56) |
(.42) |
(.25) |
(.32) |
Net asset value, end of period |
$ 33.22 |
$ 31.60 |
$ 25.55 |
$ 22.18 |
$ 21.07 |
$ 20.26 |
Total Return B, C, D |
6.75% |
26.43% |
17.90% |
7.25% |
5.26% |
23.58% |
Ratios to Average Net Assets F,H |
|
|
|
|
|
|
Expenses before reductions |
.96% A |
.98% |
1.02% |
1.03% |
1.04% |
1.07% |
Expenses net of fee waivers, if any |
.96% A |
.98% |
1.02% |
1.03% |
1.04% |
1.07% |
Expenses net of all reductions |
.96% A |
.97% |
1.01% |
1.02% |
1.04% |
1.07% |
Net investment income (loss) |
2.89% A,I |
2.07% |
2.52% |
1.82% |
1.21% |
1.67% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 798 |
$ 777 |
$ 646 |
$ 634 |
$ 719 |
$ 831 |
Portfolio turnover rate G |
41% A |
34% |
49% |
89% |
29% |
76% |
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 Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Investment income per share reflects a large, non-recurring dividends which amounted to $.11 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 2.19%.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 32.09 |
$ 25.94 |
$ 22.50 |
$ 21.37 |
$ 20.54 |
$ 16.94 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E |
.43 I |
.55 |
.57 |
.38 |
.22 |
.25 |
Net realized and unrealized gain (loss) |
1.68 |
6.15 |
3.37 |
1.13 |
.82 |
3.63 |
Total from investment operations |
2.11 |
6.70 |
3.94 |
1.51 |
1.04 |
3.88 |
Distributions from net investment income |
(.45) |
(.52) |
(.50) |
(.38) |
(.21) |
(.28) |
Distributions from net realized gain |
- |
(.03) |
- |
- |
- |
- |
Total distributions |
(.45) |
(.55) |
(.50) |
(.38) |
(.21) |
(.28) |
Net asset value, end of period |
$ 33.75 |
$ 32.09 |
$ 25.94 |
$ 22.50 |
$ 21.37 |
$ 20.54 |
Total Return B, C, D |
6.65% |
26.14% |
17.70% |
7.02% |
5.09% |
23.35% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions |
1.18% A |
1.19% |
1.21% |
1.22% |
1.23% |
1.28% |
Expenses net of fee waivers, if any |
1.18% A |
1.19% |
1.21% |
1.22% |
1.23% |
1.28% |
Expenses net of all reductions |
1.18% A |
1.18% |
1.21% |
1.21% |
1.22% |
1.27% |
Net investment income (loss) |
2.67% A,I |
1.86% |
2.32% |
1.63% |
1.03% |
1.47% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 998 |
$ 984 |
$ 854 |
$ 862 |
$ 1,108 |
$ 1,264 |
Portfolio turnover rate G |
41% A |
34% |
49% |
89% |
29% |
76% |
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 Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Investment income per share reflects a large, non-recurring dividend which amounted to $.11 per share. Excluding this non-recurring dividend>, the ratio of net investment income (loss) to average net assets would have been 1.97%.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 31.79 |
$ 25.69 |
$ 22.29 |
$ 21.16 |
$ 20.33 |
$ 16.77 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E |
.33 I |
.36 |
.42 |
.24 |
.09 |
.15 |
Net realized and unrealized gain (loss) |
1.66 |
6.10 |
3.34 |
1.12 |
.82 |
3.59 |
Total from investment operations |
1.99 |
6.46 |
3.76 |
1.36 |
.91 |
3.74 |
Distributions from net investment income |
(.34) |
(.33) |
(.36) |
(.23) |
(.08) |
(.18) |
Distributions from net realized gain |
- |
(.03) |
- |
- |
- |
- |
Total distributions |
(.34) |
(.36) |
(.36) |
(.23) |
(.08) |
(.18) |
Net asset value, end of period |
$ 33.44 |
$ 31.79 |
$ 25.69 |
$ 22.29 |
$ 21.16 |
$ 20.33 |
Total Return B, C, D |
6.32% |
25.39% |
16.97% |
6.43% |
4.49% |
22.59% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions |
1.80% A |
1.80% |
1.80% |
1.81% |
1.82% |
1.84% |
Expenses net of fee waivers, if any |
1.80% A |
1.80% |
1.80% |
1.81% |
1.82% |
1.84% |
Expenses net of all reductions |
1.79% A |
1.79% |
1.80% |
1.80% |
1.81% |
1.84% |
Net investment income (loss) |
2.05% A,I |
1.26% |
1.73% |
1.04% |
.44% |
.90% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 22 |
$ 27 |
$ 31 |
$ 42 |
$ 63 |
$ 88 |
Portfolio turnover rate G |
41% A |
34% |
49% |
89% |
29% |
76% |
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 Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Investment income per share reflects a large, non-recurring dividend which amounted to $.11 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.36%.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 31.73 |
$ 25.66 |
$ 22.27 |
$ 21.16 |
$ 20.34 |
$ 16.78 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E |
.34 I |
.38 |
.43 |
.25 |
.09 |
.16 |
Net realized and unrealized gain (loss) |
1.66 |
6.09 |
3.33 |
1.11 |
.82 |
3.59 |
Total from investment operations |
2.00 |
6.47 |
3.76 |
1.36 |
.91 |
3.75 |
Distributions from net investment income |
(.36) |
(.37) |
(.37) |
(.25) |
(.09) |
(.19) |
Distributions from net realized gain |
- |
(.03) |
- |
- |
- |
- |
Total distributions |
(.36) |
(.40) |
(.37) |
(.25) |
(.09) |
(.19) |
Net asset value, end of period |
$ 33.37 |
$ 31.73 |
$ 25.66 |
$ 22.27 |
$ 21.16 |
$ 20.34 |
Total Return B, C, D |
6.37% |
25.46% |
17.03% |
6.40% |
4.50% |
22.63% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions |
1.72% A |
1.74% |
1.77% |
1.78% |
1.80% |
1.83% |
Expenses net of fee waivers, if any |
1.72% A |
1.74% |
1.77% |
1.78% |
1.80% |
1.83% |
Expenses net of all reductions |
1.72% A |
1.73% |
1.77% |
1.77% |
1.79% |
1.83% |
Net investment income (loss) |
2.13% A,I |
1.32% |
1.76% |
1.06% |
.46% |
.91% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 207 |
$ 195 |
$ 143 |
$ 134 |
$ 149 |
$ 165 |
Portfolio turnover rate G |
41% A |
34% |
49% |
89% |
29% |
76% |
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 Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Investment income per share reflects a large, non-recurring dividend which amounted to $.11 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.43%.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 32.62 |
$ 26.36 |
$ 22.86 |
$ 21.70 |
$ 20.85 |
$ 17.20 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D |
.52 H |
.70 |
.70 |
.50 |
.32 |
.34 |
Net realized and unrealized gain (loss) |
1.71 |
6.24 |
3.43 |
1.14 |
.83 |
3.68 |
Total from investment operations |
2.23 |
6.94 |
4.13 |
1.64 |
1.15 |
4.02 |
Distributions from net investment income |
(.53) |
(.65) |
(.63) |
(.48) |
(.30) |
(.37) |
Distributions from net realized gain |
- |
(.03) |
- |
- |
- |
- |
Total distributions |
(.53) |
(.68) |
(.63) |
(.48) |
(.30) |
(.37) |
Net asset value, end of period |
$ 34.32 |
$ 32.62 |
$ 26.36 |
$ 22.86 |
$ 21.70 |
$ 20.85 |
Total Return B, C |
6.91% |
26.72% |
18.27% |
7.55% |
5.56% |
23.90% |
Ratios to Average Net Assets E, G |
|
|
|
|
|
|
Expenses before reductions |
.70% A |
.72% |
.73% |
.74% |
.77% |
.79% |
Expenses net of fee waivers, if any |
.70% A |
.72% |
.73% |
.74% |
.77% |
.79% |
Expenses net of all reductions |
.70% A |
.71% |
.73% |
.73% |
.76% |
.78% |
Net investment income (loss) |
3.15% A,H |
2.34% |
2.80% |
2.10% |
1.49% |
1.96% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 491 |
$ 483 |
$ 445 |
$ 360 |
$ 464 |
$ 1,127 |
Portfolio turnover rate F |
41% A |
34% |
49% |
89% |
29% |
76% |
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Investment income per share reflects a large, non-recurring dividend which amounted to $.11 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 2.45%.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended |
Year ended |
|
(Unaudited) |
2013 G |
Selected Per-Share Data |
|
|
Net asset value, beginning of period |
$ 32.63 |
$ 31.44 |
Income from Investment Operations |
|
|
Net investment income (loss) D |
.55 I |
.23 |
Net realized and unrealized gain (loss) |
1.70 |
1.12 |
Total from investment operations |
2.25 |
1.35 |
Distributions from net investment income |
(.55) |
(.16) |
Net asset value, end of period |
$ 34.33 |
$ 32.63 |
Total Return B, C |
7.00% |
4.30% |
Ratios to Average Net Assets E, H |
|
|
Expenses before reductions |
.54% A |
.54% A |
Expenses net of fee waivers, if any |
.54% A |
.54% A |
Expenses net of all reductions |
.54% A |
.54% A |
Net investment income (loss) |
3.31% A,I |
2.37% A |
Supplemental Data |
|
|
Net assets, end of period (000s omitted) |
$ 112 |
$ 104 |
Portfolio turnover rate F |
41% A |
34% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period August 13, 2013 (commencement of sale of shares) to November 30, 2013.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Investment income per share reflects a large, non-recurring dividend which amounted to $.11 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 2.61%.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
For the period ended May 31, 2014 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor® Equity Income Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, Institutional Class and Class Z shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Valuation - continued
approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds and preferred securities are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Exchange-traded options are valued using the last sale price or, in the absence of a sale, the last offering price and are categorized as Level 1 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of May 31, 2014, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
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. One of the Fund's investments, EQTY ER Holdings, LLC, is owned through an entity that is treated as a corporation for U.S. tax purposes and may be subject to federal and state taxes upon disposition. The tax liability may differ materially depending on conditions when the investment is disposed. At period end, the estimated tax liability for this investment is presented as "Deferred taxes" in the Statement of Assets and Liabilities and included in "Change in net unrealized appreciation (depreciation) on investment securities" in the Statement of Operations.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, partnerships, market discount, equity-debt classifications, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation |
$ 436,501 |
Gross unrealized depreciation |
(34,771) |
Net unrealized appreciation (depreciation) on securities and other investments |
$ 401,730 |
|
|
Tax cost |
$ 2,129,490 |
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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
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.
Fiscal year of expiration |
|
2017 |
$ (100,096) |
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including options. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
The Fund used derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
The Fund's use of derivatives increased or decreased its exposure to the following risk:
Equity Risk |
Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
Semiannual Report
4. Derivative Instruments - continued
Risk Exposures and the Use of Derivative Instruments - continued
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Counterparty credit risk related to exchange-traded options may be mitigated by the protection provided by the exchange on which they trade.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
Options. Options give the purchaser the right, but not the obligation, to buy (call) or sell (put) an underlying security or financial instrument at an agreed exercise or strike price between or on certain dates. Options obligate the seller (writer) to buy (put) or sell (call) an underlying instrument at the exercise or strike price or cash settle an underlying derivative instrument if the holder exercises the option on or before the expiration date.
The Fund used exchange-traded written covered call options to manage its exposure to the market. When the Fund writes a covered call option, the Fund holds the underlying instrument which must be delivered to the holder upon the exercise of the option.
Upon entering into a written options contract, the Fund will receive a premium. Premiums received are reflected as a liability on the Statement of Assets and Liabilities. Options are valued daily and any unrealized appreciation (depreciation) is reflected on the Statement of Assets and Liabilities. When a written option is exercised, the premium is added to the proceeds from the sale of the underlying instrument in determining the gain or loss realized on that investment. When an option is closed the Fund will realize a gain or loss depending on whether the proceeds or amount paid for the closing sale transaction are greater or less than the premium received. When an option expires, gains and losses are realized to the extent of premiums received. The net realized gain (loss) on closed and expired written options and the change in net unrealized appreciation (depreciation) on written options are reflected separately on the Statement of Operations.
Writing call options tends to decrease exposure to the underlying instrument and risk of loss is the change in value in excess of the premium received.
Any open options at period end are presented in the Schedule of Investments under the caption "Written Options" and are representative of volume of activity during the period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
4. Derivative Instruments - continued
Options - continued
During the period, the Fund recognized net realized gain (loss) of $1,505 and a change in net unrealized appreciation (depreciation) of $588 related to its investment in written options. This amount is included in the Statement of Operations.
The following is a summary of the Fund's written options activity:
Written Options |
Number of |
Amount of |
Outstanding at beginning of period |
13 |
$ 831 |
Options Opened |
35 |
2,747 |
Options Exercised |
(18) |
(1,450) |
Options Closed |
(14) |
(877) |
Options Expired |
(13) |
(987) |
Outstanding at end of period |
3 |
$ 264 |
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $492,345 and $574,742, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .20% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .45% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services.
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees - continued
For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
|
Distribution |
Service |
Total Fees |
Retained |
Class A |
-% |
.25% |
$ 974 |
$ 20 |
Class T |
.25% |
.25% |
2,439 |
21 |
Class B |
.75% |
.25% |
123 |
93 |
Class C |
.75% |
.25% |
998 |
116 |
|
|
|
$ 4,534 |
$ 250 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
|
Retained |
Class A |
$ 66 |
Class T |
20 |
Class B* |
7 |
Class C* |
9 |
|
$ 102 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales
are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund, except for Class Z. FIIOC receives an asset-based fee of Class Z's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
For the period, transfer agent fees for each class were as follows:
|
Amount |
% of |
Class A |
$ 843 |
.22 |
Class T |
912 |
.19 |
Class B |
37 |
.30 |
Class C |
225 |
.23 |
Institutional Class |
503 |
.21 |
Class Z |
-** |
.05 |
|
$ 2,520 |
|
* Annualized
** Amount represents twenty-four dollars.
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $1 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $2 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Semiannual Report
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $46. During the period, there were no securities loaned to FCM.
9. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $29 for the period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
|
Six months ended |
Year ended |
From net investment income |
|
|
Class A |
$ 11,878 |
$ 14,351 |
Class T |
13,497 |
16,481 |
Class B |
268 |
359 |
Class C |
2,250 |
2,111 |
Institutional Class |
7,678 |
10,429 |
Class Z |
2 |
-* |
Total |
$ 35,573 |
$ 43,731 |
From net realized gain |
|
|
Class A |
$ - |
$ 754 |
Class T |
- |
982 |
Class B |
- |
36 |
Class C |
- |
167 |
Institutional Class |
- |
505 |
Total |
$ - |
$ 2,444 |
A Distributions for Class Z are for the period November 30, 2013 (commencement of sale of shares) to November 30, 2013.
* Amount represents four hundred ninety-six dollars.
11. Share Transactions.
Transactions for each class of shares were as follows:
|
Shares |
Dollars |
||
|
Six months ended |
Year ended |
Six months ended |
Year ended |
Class A |
|
|
|
|
Shares sold |
1,638 |
3,676 |
$ 52,192 |
$ 106,691 |
Reinvestment of distributions |
347 |
505 |
10,973 |
13,926 |
Shares redeemed |
(2,583) |
(4,869) |
(82,531) |
(139,536) |
Net increase (decrease) |
(598) |
(688) |
$ (19,366) |
$ (18,919) |
Class T |
|
|
|
|
Shares sold |
1,708 |
3,948 |
$ 55,411 |
$ 115,563 |
Reinvestment of distributions |
405 |
601 |
12,999 |
16,778 |
Shares redeemed |
(3,218) |
(6,787) |
(103,853) |
(197,631) |
Net increase (decrease) |
(1,105) |
(2,238) |
$ (35,443) |
$ (65,290) |
Class B |
|
|
|
|
Shares sold |
14 |
42 |
$ 450 |
$ 1,216 |
Reinvestment of distributions |
8 |
13 |
244 |
359 |
Shares redeemed |
(208) |
(423) |
(6,694) |
(12,147) |
Net increase (decrease) |
(186) |
(368) |
$ (6,000) |
$ (10,572) |
Semiannual Report
11. Share Transactions - continued
|
Shares |
Dollars |
||
|
Six months ended |
Year ended |
Six months ended |
Year ended |
Class C |
|
|
|
|
Shares sold |
550 |
1,636 |
$ 17,608 |
$ 48,035 |
Reinvestment of distributions |
62 |
72 |
1,976 |
1,992 |
Shares redeemed |
(539) |
(1,139) |
(17,325) |
(33,153) |
Net increase (decrease) |
73 |
569 |
$ 2,259 |
$ 16,874 |
Institutional Class |
|
|
|
|
Shares sold |
2,084 |
2,274 |
$ 68,480 |
$ 67,514 |
Reinvestment of distributions |
225 |
369 |
7,349 |
10,496 |
Shares redeemed |
(2,804) |
(4,733) |
(92,909) |
(140,377) |
Net increase (decrease) |
(495) |
(2,090) |
$ (17,080) |
$ (62,367) |
Class Z |
|
|
|
|
Shares sold |
- |
3 |
$ - |
$ 100 |
Reinvestment of distributions |
-* |
-** |
2 |
-*** |
Net increase (decrease) |
- |
3 |
$ 2 |
$ 100 |
A Share transactions for Class Z are for the period August 13, 2013 (commencement of sale of shares) to November 30, 2013.
* Amount represents fifty-four shares.
** Amount represents seventy-two shares.
*** Amount represents four hundred ninety-six dollars.
12. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
JPMorgan Chase Bank
New York, NY
(Fidelity Investment logo)(registered trademark)
EPII-USAN-0714 1.786786.111
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Equity Income
Fund - Class A, Class T, Class B and Class C
Semiannual Report
May 31, 2014
(Fidelity Cover Art)
Shareholder Expense Example |
An example of shareholder expenses. |
|
Investment Changes |
A summary of major shifts in the fund's investments over the past six months. |
|
Investments |
A complete list of the fund's investments with their market values. |
|
Financial Statements |
Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
|
Notes |
Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (December 1, 2013 to May 31, 2014).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
|
Annualized |
Beginning |
Ending |
Expenses Paid |
Class A |
.96% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,067.50 |
$ 4.95 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,020.14 |
$ 4.84 |
Class T |
1.18% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,066.50 |
$ 6.08 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,019.05 |
$ 5.94 |
Class B |
1.80% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,063.20 |
$ 9.26 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,015.96 |
$ 9.05 |
Class C |
1.72% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,063.70 |
$ 8.85 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,016.36 |
$ 8.65 |
Institutional Class |
.70% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,069.10 |
$ 3.61 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,021.44 |
$ 3.53 |
Class Z |
.54% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,070.00 |
$ 2.79 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,022.24 |
$ 2.72 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
Semiannual Report
Top Ten Stocks as of May 31, 2014 |
||
|
% of fund's |
% of fund's net assets |
JPMorgan Chase & Co. |
3.9 |
4.0 |
Chevron Corp. |
3.0 |
2.9 |
Cisco Systems, Inc. |
2.5 |
2.2 |
General Electric Co. |
2.4 |
2.5 |
MetLife, Inc. |
2.3 |
2.3 |
Procter & Gamble Co. |
2.1 |
2.1 |
Johnson & Johnson |
2.1 |
1.9 |
Verizon Communications, Inc. |
1.8 |
1.3 |
Exxon Mobil Corp. |
1.8 |
2.4 |
Wells Fargo & Co. |
1.8 |
3.0 |
|
23.7 |
|
Top Five Market Sectors as of May 31, 2014 |
||
|
% of fund's |
% of fund's net assets |
Financials |
24.0 |
21.4 |
Energy |
14.9 |
14.0 |
Information Technology |
11.9 |
11.5 |
Consumer Staples |
10.6 |
8.8 |
Industrials |
9.6 |
10.4 |
Asset Allocation (% of fund's net assets) |
|||||||
As of May 31, 2014* |
As of November 30, 2013** |
||||||
Stocks 90.2% |
|
Stocks 90.8% |
|
||||
Bonds 0.2% |
|
Bonds 0.1% |
|
||||
Convertible |
|
Convertible |
|
||||
Other Investments 0.6% |
|
Other Investments 0.3% |
|
||||
Short-Term |
|
Short-Term |
|
||||
* Foreign investments |
10.5% |
|
** Foreign investments |
11.5% |
|
||
* Written options |
0.0% |
|
** Written options |
(0.1%) |
|
Semiannual Report
Showing Percentage of Net Assets
Common Stocks - 89.8% |
|||
Shares |
Value (000s) |
||
CONSUMER DISCRETIONARY - 6.6% |
|||
Auto Components - 0.2% |
|||
Gentex Corp. |
189,860 |
$ 5,491 |
|
Hotels, Restaurants & Leisure - 2.1% |
|||
Darden Restaurants, Inc. (e) |
229,600 |
11,508 |
|
McDonald's Corp. |
242,117 |
24,558 |
|
Texas Roadhouse, Inc. Class A |
214,562 |
5,424 |
|
Yum! Brands, Inc. |
151,121 |
11,683 |
|
|
53,173 |
||
Leisure Products - 0.3% |
|||
New Academy Holding Co. LLC unit (a)(j)(k) |
52,800 |
7,546 |
|
Media - 1.6% |
|||
Comcast Corp. Class A |
626,874 |
32,723 |
|
Sinclair Broadcast Group, Inc. Class A |
212,235 |
6,278 |
|
|
39,001 |
||
Multiline Retail - 1.8% |
|||
Kohl's Corp. |
273,776 |
14,904 |
|
Target Corp. |
515,455 |
29,257 |
|
|
44,161 |
||
Specialty Retail - 0.6% |
|||
Abercrombie & Fitch Co. Class A |
148,043 |
5,627 |
|
Foot Locker, Inc. |
133,131 |
6,414 |
|
Staples, Inc. |
369,733 |
4,159 |
|
|
16,200 |
||
TOTAL CONSUMER DISCRETIONARY |
165,572 |
||
CONSUMER STAPLES - 10.6% |
|||
Beverages - 2.0% |
|||
Molson Coors Brewing Co. Class B |
162,005 |
10,649 |
|
PepsiCo, Inc. |
113,122 |
9,992 |
|
The Coca-Cola Co. |
726,672 |
29,728 |
|
|
50,369 |
||
Food & Staples Retailing - 1.6% |
|||
CVS Caremark Corp. |
185,000 |
14,489 |
|
Wal-Mart Stores, Inc. |
154,750 |
11,880 |
|
Walgreen Co. |
208,844 |
15,018 |
|
|
41,387 |
||
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
CONSUMER STAPLES - continued |
|||
Food Products - 0.9% |
|||
B&G Foods, Inc. Class A |
70,054 |
$ 2,400 |
|
Kellogg Co. |
285,552 |
19,697 |
|
|
22,097 |
||
Household Products - 2.1% |
|||
Procter & Gamble Co. |
654,217 |
52,854 |
|
Tobacco - 4.0% |
|||
Altria Group, Inc. |
692,065 |
28,762 |
|
British American Tobacco PLC sponsored ADR |
100,511 |
12,188 |
|
Japan Tobacco, Inc. |
38,700 |
1,315 |
|
Lorillard, Inc. |
454,553 |
28,260 |
|
Philip Morris International, Inc. |
161,212 |
14,274 |
|
Reynolds American, Inc. |
245,446 |
14,636 |
|
|
99,435 |
||
TOTAL CONSUMER STAPLES |
266,142 |
||
ENERGY - 14.0% |
|||
Energy Equipment & Services - 1.8% |
|||
Ensco PLC Class A |
192,324 |
10,128 |
|
National Oilwell Varco, Inc. |
141,849 |
11,613 |
|
Noble Corp. |
307,414 |
9,671 |
|
Schlumberger Ltd. |
119,457 |
12,428 |
|
|
43,840 |
||
Oil, Gas & Consumable Fuels - 12.2% |
|||
Access Midstream Partners LP |
81,247 |
5,118 |
|
Anadarko Petroleum Corp. |
124,445 |
12,800 |
|
Apache Corp. |
214,027 |
19,952 |
|
Canadian Natural Resources Ltd. |
359,300 |
14,623 |
|
Chevron Corp. |
604,769 |
74,260 |
|
CONSOL Energy, Inc. |
250,475 |
11,063 |
|
EV Energy Partners LP |
243,025 |
8,975 |
|
Exxon Mobil Corp. |
450,560 |
45,295 |
|
Gazprom OAO sponsored ADR (Reg. S) |
136,300 |
1,111 |
|
Holly Energy Partners LP |
114,912 |
4,061 |
|
HollyFrontier Corp. |
58,877 |
2,900 |
|
Imperial Oil Ltd. |
129,500 |
6,376 |
|
Legacy Reserves LP |
115,099 |
3,384 |
|
Markwest Energy Partners LP |
257,191 |
15,933 |
|
Occidental Petroleum Corp. |
154,423 |
15,394 |
|
Royal Dutch Shell PLC Class A sponsored ADR |
140,158 |
11,016 |
|
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
ENERGY - continued |
|||
Oil, Gas & Consumable Fuels - continued |
|||
Scorpio Tankers, Inc. |
126,500 |
$ 1,147 |
|
Suncor Energy, Inc. |
486,500 |
18,723 |
|
The Williams Companies, Inc. |
695,250 |
32,649 |
|
Williams Partners LP |
61,100 |
3,245 |
|
|
308,025 |
||
TOTAL ENERGY |
351,865 |
||
FINANCIALS - 22.8% |
|||
Banks - 9.3% |
|||
Bank of America Corp. |
270,900 |
4,101 |
|
CIT Group, Inc. (i) |
72,362 |
3,219 |
|
Citigroup, Inc. |
236,500 |
11,250 |
|
Comerica, Inc. |
104,780 |
5,026 |
|
FirstMerit Corp. |
169,240 |
3,160 |
|
JPMorgan Chase & Co. |
1,763,557 |
98,004 |
|
M&T Bank Corp. (e) |
194,017 |
23,548 |
|
PNC Financial Services Group, Inc. |
71,200 |
6,071 |
|
Standard Chartered PLC (United Kingdom) |
405,343 |
9,121 |
|
U.S. Bancorp |
560,100 |
23,631 |
|
Valley National Bancorp (e) |
226,900 |
2,199 |
|
Wells Fargo & Co. |
871,950 |
44,278 |
|
|
233,608 |
||
Capital Markets - 5.4% |
|||
Apollo Global Management LLC Class A |
161,502 |
4,010 |
|
Apollo Investment Corp. |
888,252 |
7,444 |
|
Ares Capital Corp. |
325,442 |
5,611 |
|
Ares Management LP |
114,800 |
2,181 |
|
Ashmore Group PLC (e) |
837,305 |
4,959 |
|
BlackRock, Inc. Class A |
37,577 |
11,457 |
|
Carlyle Group LP |
142,800 |
4,423 |
|
Charles Schwab Corp. |
195,406 |
4,926 |
|
Greenhill & Co., Inc. (e) |
54,823 |
2,726 |
|
Invesco Ltd. |
124,100 |
4,554 |
|
KKR & Co. LP |
1,665,196 |
37,850 |
|
Morgan Stanley |
375,942 |
11,602 |
|
State Street Corp. |
154,599 |
10,091 |
|
The Blackstone Group LP |
828,703 |
25,756 |
|
|
137,590 |
||
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
FINANCIALS - continued |
|||
Diversified Financial Services - 0.6% |
|||
Berkshire Hathaway, Inc. Class B (a) |
93,785 |
$ 12,036 |
|
TPG Specialty Lending, Inc. |
126,100 |
2,672 |
|
|
14,708 |
||
Insurance - 4.7% |
|||
ACE Ltd. |
202,111 |
20,961 |
|
Allied World Assurance Co. Holdings Ltd. |
34,500 |
1,294 |
|
Brasil Insurance Participacoes e Administracao SA |
539,700 |
1,927 |
|
esure Group PLC |
611,000 |
2,724 |
|
MetLife, Inc. |
1,115,557 |
56,815 |
|
Prudential Financial, Inc. |
115,898 |
9,522 |
|
The Chubb Corp. |
134,667 |
12,478 |
|
The Travelers Companies, Inc. |
136,849 |
12,789 |
|
|
118,510 |
||
Real Estate Investment Trusts - 2.6% |
|||
American Capital Agency Corp. |
433,580 |
10,289 |
|
Annaly Capital Management, Inc. |
802,994 |
9,467 |
|
CBL & Associates Properties, Inc. |
280,000 |
5,270 |
|
Coresite Realty Corp. |
101,920 |
3,231 |
|
First Potomac Realty Trust |
473,077 |
6,188 |
|
Home Properties, Inc. |
153,430 |
9,540 |
|
Piedmont Office Realty Trust, Inc. Class A (e) |
157,535 |
2,933 |
|
Rayonier, Inc. |
97,852 |
4,658 |
|
Retail Properties America, Inc. |
375,097 |
5,641 |
|
Two Harbors Investment Corp. |
565,041 |
5,950 |
|
Ventas, Inc. |
42,294 |
2,825 |
|
|
65,992 |
||
Real Estate Management & Development - 0.1% |
|||
Beazer Pre-Owned Rental Homes, Inc. (a)(k) |
96,000 |
1,788 |
|
Thrifts & Mortgage Finance - 0.1% |
|||
Radian Group, Inc. |
124,900 |
1,801 |
|
TOTAL FINANCIALS |
573,997 |
||
HEALTH CARE - 7.9% |
|||
Biotechnology - 0.4% |
|||
Amgen, Inc. |
80,149 |
9,296 |
|
Health Care Equipment & Supplies - 0.6% |
|||
Baxter International, Inc. |
91,000 |
6,771 |
|
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
HEALTH CARE - continued |
|||
Health Care Equipment & Supplies - continued |
|||
Covidien PLC |
71,700 |
$ 5,242 |
|
St. Jude Medical, Inc. |
40,262 |
2,613 |
|
|
14,626 |
||
Health Care Providers & Services - 0.9% |
|||
Aetna, Inc. |
41,215 |
3,196 |
|
Quest Diagnostics, Inc. |
100,036 |
5,991 |
|
UnitedHealth Group, Inc. |
167,876 |
13,368 |
|
WellPoint, Inc. |
44 |
5 |
|
|
22,560 |
||
Pharmaceuticals - 6.0% |
|||
AbbVie, Inc. |
47,354 |
2,573 |
|
Astellas Pharma, Inc. |
617,100 |
7,939 |
|
AstraZeneca PLC sponsored ADR |
162,212 |
11,712 |
|
Johnson & Johnson |
512,218 |
51,970 |
|
Merck & Co., Inc. |
519,268 |
30,045 |
|
Pfizer, Inc. |
863,813 |
25,595 |
|
Sanofi SA |
72,826 |
7,786 |
|
Teva Pharmaceutical Industries Ltd. sponsored ADR |
277,398 |
14,006 |
|
|
151,626 |
||
TOTAL HEALTH CARE |
198,108 |
||
INDUSTRIALS - 9.1% |
|||
Aerospace & Defense - 0.8% |
|||
United Technologies Corp. |
175,807 |
20,432 |
|
Air Freight & Logistics - 2.3% |
|||
C.H. Robinson Worldwide, Inc. |
206,479 |
12,360 |
|
PostNL NV (a) |
757,600 |
3,714 |
|
United Parcel Service, Inc. Class B |
393,490 |
40,876 |
|
|
56,950 |
||
Airlines - 0.1% |
|||
Copa Holdings SA Class A |
8,700 |
1,243 |
|
Commercial Services & Supplies - 1.3% |
|||
Intrum Justitia AB |
161,784 |
5,036 |
|
KAR Auction Services, Inc. |
156,904 |
4,792 |
|
Republic Services, Inc. |
634,789 |
22,472 |
|
|
32,300 |
||
Electrical Equipment - 0.6% |
|||
Eaton Corp. PLC |
53,300 |
3,928 |
|
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
INDUSTRIALS - continued |
|||
Electrical Equipment - continued |
|||
Emerson Electric Co. |
76,270 |
$ 5,089 |
|
Hubbell, Inc. Class B |
48,569 |
5,683 |
|
|
14,700 |
||
Industrial Conglomerates - 2.4% |
|||
General Electric Co. |
2,292,733 |
61,422 |
|
Machinery - 0.8% |
|||
Cummins, Inc. |
50,637 |
7,744 |
|
Stanley Black & Decker, Inc. (i) |
151,826 |
13,270 |
|
|
21,014 |
||
Professional Services - 0.5% |
|||
Acacia Research Corp. |
202,860 |
3,274 |
|
Bureau Veritas SA |
86,073 |
2,595 |
|
Michael Page International PLC |
732,018 |
5,628 |
|
|
11,497 |
||
Road & Rail - 0.3% |
|||
Union Pacific Corp. |
43,902 |
8,748 |
|
TOTAL INDUSTRIALS |
228,306 |
||
INFORMATION TECHNOLOGY - 11.1% |
|||
Communications Equipment - 2.9% |
|||
Cisco Systems, Inc. |
2,548,453 |
62,743 |
|
QUALCOMM, Inc. |
129,689 |
10,433 |
|
|
73,176 |
||
Electronic Equipment & Components - 0.4% |
|||
TE Connectivity Ltd. |
159,030 |
9,456 |
|
Internet Software & Services - 0.3% |
|||
Yahoo!, Inc. (a) |
241,700 |
8,375 |
|
IT Services - 3.5% |
|||
Accenture PLC Class A |
81,896 |
6,670 |
|
IBM Corp. |
239,223 |
44,103 |
|
Paychex, Inc. |
763,278 |
31,378 |
|
Quindell PLC |
5,244,900 |
1,824 |
|
Xerox Corp. |
410,915 |
5,075 |
|
|
89,050 |
||
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
INFORMATION TECHNOLOGY - continued |
|||
Semiconductors & Semiconductor Equipment - 1.6% |
|||
Applied Materials, Inc. |
957,177 |
$ 19,325 |
|
Broadcom Corp. Class A |
677,529 |
21,593 |
|
|
40,918 |
||
Software - 1.8% |
|||
CA Technologies, Inc. |
230,081 |
6,601 |
|
Microsoft Corp. (i) |
928,138 |
37,998 |
|
|
44,599 |
||
Technology Hardware, Storage & Peripherals - 0.6% |
|||
Apple, Inc. |
15,103 |
9,560 |
|
EMC Corp. |
216,519 |
5,751 |
|
|
15,311 |
||
TOTAL INFORMATION TECHNOLOGY |
280,885 |
||
MATERIALS - 1.3% |
|||
Chemicals - 0.4% |
|||
Potash Corp. of Saskatchewan, Inc. |
66,400 |
2,410 |
|
RPM International, Inc. |
145,099 |
6,249 |
|
Tronox Ltd. Class A |
76,965 |
2,045 |
|
|
10,704 |
||
Metals & Mining - 0.9% |
|||
Commercial Metals Co. |
294,254 |
5,223 |
|
Freeport-McMoRan Copper & Gold, Inc. |
465,414 |
15,847 |
|
Goldcorp, Inc. |
13,700 |
322 |
|
SunCoke Energy Partners LP |
38,412 |
1,101 |
|
|
22,493 |
||
TOTAL MATERIALS |
33,197 |
||
TELECOMMUNICATION SERVICES - 3.5% |
|||
Diversified Telecommunication Services - 3.1% |
|||
AT&T, Inc. |
679,727 |
24,110 |
|
Verizon Communications, Inc. |
923,006 |
46,113 |
|
Verizon Communications, Inc. CDI |
128,984 |
6,435 |
|
|
76,658 |
||
Wireless Telecommunication Services - 0.4% |
|||
Vodafone Group PLC |
3,076,582 |
10,787 |
|
TOTAL TELECOMMUNICATION SERVICES |
87,445 |
||
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
UTILITIES - 2.9% |
|||
Electric Utilities - 2.9% |
|||
American Electric Power Co., Inc. |
317,915 |
$ 16,961 |
|
Hawaiian Electric Industries, Inc. (e) |
218,498 |
5,255 |
|
Pinnacle West Capital Corp. |
42,500 |
2,355 |
|
PPL Corp. |
478,591 |
16,794 |
|
Southern Co. |
561,125 |
24,566 |
|
Xcel Energy, Inc. |
262,029 |
8,060 |
|
|
73,991 |
||
Multi-Utilities - 0.0% |
|||
CenterPoint Energy, Inc. |
30,314 |
731 |
|
TOTAL UTILITIES |
74,722 |
||
TOTAL COMMON STOCKS (Cost $1,868,328) |
|
||
Preferred Stocks - 1.6% |
|||
|
|
|
|
Convertible Preferred Stocks - 1.2% |
|||
CONSUMER STAPLES - 0.0% |
|||
Food Products - 0.0% |
|||
Post Holdings, Inc. 5.25% (a) |
10,000 |
1,058 |
|
FINANCIALS - 0.3% |
|||
Real Estate Investment Trusts - 0.3% |
|||
American Tower Corp. Series A, 5.25% (a) |
13,000 |
1,391 |
|
Crown Castle International Corp. Series A, 4.50% |
43,800 |
4,556 |
|
Weyerhaeuser Co. Series A, 6.375% |
43,200 |
2,531 |
|
|
8,478 |
||
HEALTH CARE - 0.2% |
|||
Health Care Equipment & Supplies - 0.2% |
|||
Alere, Inc. 3.00% |
11,539 |
3,623 |
|
INDUSTRIALS - 0.1% |
|||
Aerospace & Defense - 0.1% |
|||
United Technologies Corp. 7.50% |
31,500 |
2,073 |
|
Preferred Stocks - continued |
|||
Shares |
Value (000s) |
||
Convertible Preferred Stocks - continued |
|||
UTILITIES - 0.6% |
|||
Electric Utilities - 0.2% |
|||
NextEra Energy, Inc.: |
|
|
|
5.889% |
35,144 |
$ 2,195 |
|
Series E, 5.599% |
61,200 |
3,927 |
|
|
6,122 |
||
Multi-Utilities - 0.4% |
|||
CenterPoint Energy, Inc. 2.00% ZENS |
70,100 |
3,821 |
|
Dominion Resources, Inc.: |
|
|
|
Series A, 6.125% |
43,400 |
2,486 |
|
Series B, 6.00% |
43,400 |
2,502 |
|
|
8,809 |
||
TOTAL UTILITIES |
14,931 |
||
TOTAL CONVERTIBLE PREFERRED STOCKS |
30,163 |
||
Nonconvertible Preferred Stocks - 0.4% |
|||
FINANCIALS - 0.4% |
|||
Consumer Finance - 0.4% |
|||
Ally Financial, Inc.: |
|
|
|
7.00% (g) |
8,531 |
8,604 |
|
Series A, 8.50% |
60,466 |
1,672 |
|
|
10,276 |
||
TOTAL PREFERRED STOCKS (Cost $35,784) |
|
Corporate Bonds - 3.5% |
||||
|
Principal Amount (000s) (d) |
|
||
Convertible Bonds - 3.3% |
||||
CONSUMER DISCRETIONARY - 0.3% |
||||
Automobiles - 0.2% |
||||
Ford Motor Co. 4.25% 11/15/16 |
|
$ 800 |
1,531 |
|
Volkswagen International Finance NV 5.5% 11/9/15 (g) |
EUR |
2,400 |
3,908 |
|
|
5,439 |
|||
Diversified Consumer Services - 0.1% |
||||
Carriage Services, Inc. 2.75% 3/15/21 (g) |
|
1,000 |
1,078 |
|
Corporate Bonds - continued |
||||
|
Principal Amount (000s) (d) |
Value (000s) |
||
Convertible Bonds - continued |
||||
CONSUMER DISCRETIONARY - continued |
||||
Media - 0.0% |
||||
Liberty Media Corp. 3.5% 1/15/31 |
|
$ 958 |
$ 887 |
|
TOTAL CONSUMER DISCRETIONARY |
7,404 |
|||
ENERGY - 0.4% |
||||
Oil, Gas & Consumable Fuels - 0.4% |
||||
Amyris, Inc. 3% 2/27/17 |
|
516 |
421 |
|
BPZ Energy, Inc. 8.5% 10/1/17 |
|
1,070 |
1,252 |
|
Chesapeake Energy Corp. 2.5% 5/15/37 |
|
3,600 |
3,802 |
|
Clean Energy Fuels Corp. 5.25% 10/1/18 (g) |
|
1,410 |
1,358 |
|
Ship Finance International Ltd. 3.25% 2/1/18 |
|
2,810 |
3,143 |
|
|
9,976 |
|||
FINANCIALS - 0.4% |
||||
Capital Markets - 0.1% |
||||
Ares Capital Corp. 5.75% 2/1/16 |
|
1,830 |
1,960 |
|
Insurance - 0.1% |
||||
Fidelity National Financial, Inc. 4.25% 8/15/18 |
|
1,850 |
3,069 |
|
Thrifts & Mortgage Finance - 0.2% |
||||
MGIC Investment Corp. 9% 4/1/63 (g) |
|
3,390 |
4,335 |
|
TOTAL FINANCIALS |
9,364 |
|||
HEALTH CARE - 0.8% |
||||
Biotechnology - 0.1% |
||||
Gilead Sciences, Inc. 1.625% 5/1/16 |
|
250 |
892 |
|
Theravance, Inc. 2.125% 1/15/23 |
|
2,260 |
2,698 |
|
|
3,590 |
|||
Health Care Equipment & Supplies - 0.1% |
||||
Teleflex, Inc. 3.875% 8/1/17 |
|
1,380 |
2,445 |
|
Health Care Providers & Services - 0.6% |
||||
HealthSouth Corp. 2% 12/1/43 |
|
4,116 |
4,445 |
|
Molina Healthcare, Inc. 1.125% 1/15/20 |
|
1,590 |
1,979 |
|
WellPoint, Inc. 2.75% 10/15/42 |
|
5,070 |
7,871 |
|
|
14,295 |
|||
TOTAL HEALTH CARE |
20,330 |
|||
Corporate Bonds - continued |
||||
|
Principal Amount (000s) (d) |
Value (000s) |
||
Convertible Bonds - continued |
||||
INDUSTRIALS - 0.3% |
||||
Commercial Services & Supplies - 0.1% |
||||
Covanta Holding Corp. 3.25% 7/1/14 |
|
$ 1,830 |
$ 2,162 |
|
Construction & Engineering - 0.1% |
||||
Layne Christensen Co. 4.25% 11/15/18 (g) |
|
1,080 |
1,046 |
|
MasTec, Inc.: |
|
|
|
|
4% 6/15/14 |
|
890 |
2,020 |
|
4.25% 12/15/14 |
|
420 |
980 |
|
|
4,046 |
|||
Machinery - 0.1% |
||||
Navistar International Corp. 4.75% 4/15/19 (g) |
|
1,530 |
1,566 |
|
TOTAL INDUSTRIALS |
7,774 |
|||
INFORMATION TECHNOLOGY - 0.8% |
||||
Communications Equipment - 0.2% |
||||
InterDigital, Inc. 2.5% 3/15/16 |
|
4,730 |
4,919 |
|
Liberty Interactive LLC 0.75% 3/30/43 |
|
1,250 |
1,631 |
|
|
6,550 |
|||
Semiconductors & Semiconductor Equipment - 0.4% |
||||
Canadian Solar, Inc. 4.25% 2/15/19 (g) |
|
1,760 |
1,709 |
|
GT Advanced Technologies, Inc.: |
|
|
|
|
3% 10/1/17 |
|
3,530 |
8,086 |
|
3% 12/15/20 |
|
720 |
1,171 |
|
|
10,966 |
|||
Software - 0.2% |
||||
TiVo, Inc. 4% 3/15/16 (g) |
|
3,230 |
4,070 |
|
TOTAL INFORMATION TECHNOLOGY |
21,586 |
|||
MATERIALS - 0.2% |
||||
Metals & Mining - 0.2% |
||||
Goldcorp, Inc. 2% 8/1/14 |
|
3,120 |
3,126 |
|
Newmont Mining Corp. 1.25% 7/15/14 |
|
2,000 |
2,000 |
|
|
5,126 |
|||
Corporate Bonds - continued |
||||
|
Principal Amount (000s) (d) |
Value (000s) |
||
Convertible Bonds - continued |
||||
UTILITIES - 0.1% |
||||
Electric Utilities - 0.1% |
||||
NRG Yield, Inc. 3.5% 2/1/19 (g) |
|
$ 2,480 |
$ 2,769 |
|
TOTAL CONVERTIBLE BONDS |
84,329 |
|||
Nonconvertible Bonds - 0.2% |
||||
INDUSTRIALS - 0.1% |
||||
Commercial Services & Supplies - 0.1% |
||||
APX Group, Inc. 8.75% 12/1/20 |
|
2,545 |
2,596 |
|
MATERIALS - 0.1% |
||||
Metals & Mining - 0.1% |
||||
JMC Steel Group, Inc. 8.25% 3/15/18 (g) |
|
1,489 |
1,526 |
|
Walter Energy, Inc. 8.5% 4/15/21 |
|
2,030 |
1,096 |
|
|
2,622 |
|||
TOTAL NONCONVERTIBLE BONDS |
5,218 |
|||
TOTAL CORPORATE BONDS (Cost $79,021) |
|
|||
Other - 0.5% |
||||
ENERGY - 0.5% |
||||
Oil, Gas & Consumable Fuels - 0.5% |
||||
EQTY ER Holdings, LLC 12% 1/28/18 (f)(k)(l) |
|
5,667 |
5,667 |
Shares |
|
EQTY ER Holdings, LLC (f)(k)(l) |
|
2,833,333 |
6,344 |
|
TOTAL OTHER (Cost $8,504) . |
|
|||
Preferred Securities - 0.1% |
||||
|
Principal Amount (000s) (d) |
Value (000s) |
||
FINANCIALS - 0.1% |
||||
Diversified Financial Services - 0.1% |
||||
Baggot Securities Ltd. 10.24% (g)(h) (Cost $1,520) |
EUR |
990 |
|
$ 1,514 |
Money Market Funds - 5.1% |
|||
Shares |
|
||
Fidelity Cash Central Fund, 0.10% (b) |
109,101,870 |
109,102 |
|
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) |
18,367,948 |
18,368 |
|
TOTAL MONEY MARKET FUNDS (Cost $127,470) |
|
||
TOTAL INVESTMENT PORTFOLIO - 100.6% (Cost $2,120,627) |
2,531,220 |
||
NET OTHER ASSETS (LIABILITIES) - (0.6)% |
(14,962) |
||
NET ASSETS - 100% |
$ 2,516,258 |
Written Options |
|||||||
Expiration Date/Exercise Price |
Number of Contracts |
Premium (000s) |
Value (000s) |
||||
Call Options |
|||||||
CIT Group, Inc. |
7/19/14 - |
362 |
$ 39 |
$ (3) |
|||
Microsoft Corp. |
7/19/14 - |
1,420 |
105 |
(69) |
|||
Stanley Black & Decker, Inc. |
7/19/14 - |
800 |
120 |
(260) |
|||
TOTAL WRITTEN OPTIONS |
$ 264 |
$ (332) |
Currency Abbreviations |
||
EUR |
- |
European Monetary Unit |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Amount is stated in United States dollars unless otherwise noted. |
(e) Security or a portion of the security is on loan at period end. |
(f) Affiliated company |
(g) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $33,483,000 or 1.3% of net assets. |
(h) Security is perpetual in nature with no stated maturity date. |
(i) Security or a portion of the security is pledged as collateral for call options written. At period end, the value of securities pledged amounted to $14,416,000. |
(j) Investment is owned by an entity that is treated as a corporation for U.S. tax purposes and is owned by the Fund. |
(k) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $21,345,000 or 0.8% of net assets. |
Additional information on each restricted holding is as follows: |
Security |
Acquisition Date |
Acquisition Cost (000s) |
Beazer Pre-Owned Rental Homes, Inc. |
5/3/12 - 10/23/12 |
$ 1,920 |
EQTY ER Holdings, LLC 12% 1/28/18 |
1/29/13 |
$ 5,667 |
EQTY ER Holdings, LLC |
1/29/13 |
$ 2,833 |
New Academy Holding Co. LLC unit |
8/1/11 |
$ 5,565 |
(l) Investments represent a non-operating interest in oil and gas wells through an entity owned by the fund that is treated as a corporation for U.S. tax purposes. |
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 |
$ 31 |
Fidelity Securities Lending Cash Central Fund |
46 |
Total |
$ 77 |
Other Affiliated Issuers |
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate |
Value, |
Purchases |
Sales |
Income |
Value, |
EQTY ER Holdings, LLC 12% 1/28/18 |
$ 5,667 |
$ - |
$ - |
$ 680 |
$ 5,667 |
EQTY ER Holdings, LLC |
2,833 |
- |
- |
- |
6,344 |
Total |
$ 8,500 |
$ - |
$ - |
$ 680 |
$ 12,011 |
Other Information |
The following is a summary of the inputs used, as of May 31, 2014, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
||||
Description |
Total |
Level 1 |
Level 2 |
Level 3 |
Investments in Securities: |
||||
Equities: |
||||
Consumer Discretionary |
$ 165,572 |
$ 158,026 |
$ - |
$ 7,546 |
Consumer Staples |
267,200 |
265,885 |
1,315 |
- |
Energy |
351,865 |
351,865 |
- |
- |
Financials |
592,751 |
575,272 |
15,691 |
1,788 |
Health Care |
201,731 |
186,006 |
15,725 |
- |
Industrials |
230,379 |
230,379 |
- |
- |
Information Technology |
280,885 |
280,885 |
- |
- |
Materials |
33,197 |
33,197 |
- |
- |
Telecommunication Services |
87,445 |
76,658 |
10,787 |
- |
Utilities |
89,653 |
79,710 |
9,943 |
- |
Corporate Bonds |
89,547 |
- |
89,547 |
- |
Other/Energy |
12,011 |
- |
12,011 |
|
Preferred Securities |
1,514 |
- |
1,514 |
- |
Money Market Funds |
127,470 |
127,470 |
- |
- |
Total Investments in Securities: |
$ 2,531,220 |
$ 2,365,353 |
$ 156,533 |
$ 9,334 |
Derivative Instruments: |
||||
Liabilities |
||||
Written Options |
$ (332) |
$ (332) |
$ - |
$ - |
Value of Derivative Instruments |
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of May 31, 2014. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements. |
Primary Risk Exposure / |
Value |
|
|
Asset |
Liability |
Equity Risk |
||
Written Options (a) |
$ - |
$ (332) |
Total Value of Derivatives |
$ - |
$ (332) |
(a) Gross value is presented in the Statement of Assets and Liabilities in the written options, at value line-item. |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited): |
United States of America |
89.5% |
United Kingdom |
3.6% |
Canada |
1.9% |
Switzerland |
1.2% |
Others (Individually Less Than 1%) |
3.8% |
|
100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Amounts in thousands (except per-share amounts) |
May 31, 2014 (Unaudited) |
|
|
|
|
Assets |
|
|
Investment in securities, at value (including securities loaned of $17,865) - See accompanying schedule: Unaffiliated issuers (cost $1,984,653) |
$ 2,391,739 |
|
Fidelity Central Funds (cost $127,470) |
127,470 |
|
Other affiliated issuers (cost $8,504) |
12,011 |
|
Total Investments (cost $2,120,627) |
|
$ 2,531,220 |
Receivable for investments sold |
|
1,739 |
Receivable for fund shares sold |
|
1,149 |
Dividends receivable |
|
6,120 |
Interest receivable |
|
887 |
Distributions receivable from Fidelity Central Funds |
|
33 |
Prepaid expenses |
|
1 |
Other receivables |
|
112 |
Total assets |
|
2,541,261 |
|
|
|
Liabilities |
|
|
Payable for investments purchased |
$ 158 |
|
Payable for fund shares redeemed |
2,597 |
|
Accrued management fee |
935 |
|
Distribution and service plan fees payable |
765 |
|
Written options, at value (premium received $264) |
332 |
|
Other affiliated payables |
486 |
|
Other payables and accrued expenses |
141 |
|
Deferred taxes |
1,221 |
|
Collateral on securities loaned, at value |
18,368 |
|
Total liabilities |
|
25,003 |
|
|
|
Net Assets |
|
$ 2,516,258 |
Net Assets consist of: |
|
|
Paid in capital |
|
$ 2,069,457 |
Undistributed net investment income |
|
9,777 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions |
|
27,721 |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies |
|
409,303 |
Net Assets |
|
$ 2,516,258 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Amounts in thousands (except per-share amounts) |
May 31, 2014 (Unaudited) |
|
|
|
|
Calculation of Maximum Offering Price Class A: |
|
$ 33.22 |
|
|
|
Maximum offering price per share (100/94.25 of $33.22) |
|
$ 35.25 |
Class T: |
|
$ 33.75 |
|
|
|
Maximum offering price per share (100/96.50 of $33.75) |
|
$ 34.97 |
Class B: |
|
$ 33.44 |
|
|
|
Class C: |
|
$ 33.37 |
|
|
|
Institutional Class: |
|
$ 34.32 |
|
|
|
Class Z: |
|
$ 34.33 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Amounts in thousands Six months ended May 31, 2014 (Unaudited) |
||
|
|
|
Investment Income |
|
|
Dividends |
|
$ 36,790 |
Special dividends |
|
8,544 |
Interest (including $680 earned from other affiliated issuers) |
|
1,931 |
Income from Fidelity Central Funds |
|
77 |
Total income |
|
47,342 |
|
|
|
Expenses |
|
|
Management fee |
$ 5,547 |
|
Transfer agent fees |
2,520 |
|
Distribution and service plan fees |
4,534 |
|
Accounting and security lending fees |
369 |
|
Custodian fees and expenses |
28 |
|
Independent trustees' compensation |
5 |
|
Registration fees |
69 |
|
Audit |
43 |
|
Legal |
5 |
|
Miscellaneous |
8 |
|
Total expenses before reductions |
13,128 |
|
Expense reductions |
(29) |
13,099 |
Net investment income (loss) |
|
34,243 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: |
|
|
Investment securities: |
|
|
Unaffiliated issuers |
133,745 |
|
Foreign currency transactions |
3 |
|
Written options |
1,505 |
|
Total net realized gain (loss) |
|
135,253 |
Change in net unrealized appreciation (depreciation) on: Investment securities |
(9,063) |
|
Assets and liabilities in foreign currencies |
(16) |
|
Written options |
588 |
|
Total change in net unrealized appreciation (depreciation) |
|
(8,491) |
Net gain (loss) |
|
126,762 |
Net increase (decrease) in net assets resulting from operations |
|
$ 161,005 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Amounts in thousands |
Six months ended |
Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) |
$ 34,243 |
$ 45,925 |
Net realized gain (loss) |
135,253 |
210,951 |
Change in net unrealized appreciation (depreciation) |
(8,491) |
276,538 |
Net increase (decrease) in net assets resulting |
161,005 |
533,414 |
Distributions to shareholders from net investment income |
(35,573) |
(43,731) |
Distributions to shareholders from net realized gain |
- |
(2,444) |
Total distributions |
(35,573) |
(46,175) |
Share transactions - net increase (decrease) |
(75,628) |
(140,174) |
Total increase (decrease) in net assets |
49,804 |
347,065 |
|
|
|
Net Assets |
|
|
Beginning of period |
2,466,454 |
2,119,389 |
End of period (including undistributed net investment income of $9,777 and undistributed net investment income of $11,107, respectively) |
$ 2,516,258 |
$ 2,466,454 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 31.60 |
$ 25.55 |
$ 22.18 |
$ 21.07 |
$ 20.26 |
$ 16.72 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E |
.46 I |
.60 |
.61 |
.42 |
.25 |
.28 |
Net realized and unrealized gain (loss) |
1.65 |
6.06 |
3.32 |
1.11 |
.81 |
3.58 |
Total from investment operations |
2.11 |
6.66 |
3.93 |
1.53 |
1.06 |
3.86 |
Distributions from net investment income |
(.49) |
(.58) |
(.56) |
(.42) |
(.25) |
(.32) |
Distributions from net realized gain |
- |
(.03) |
- |
- |
- |
- |
Total distributions |
(.49) |
(.61) |
(.56) |
(.42) |
(.25) |
(.32) |
Net asset value, end of period |
$ 33.22 |
$ 31.60 |
$ 25.55 |
$ 22.18 |
$ 21.07 |
$ 20.26 |
Total Return B, C, D |
6.75% |
26.43% |
17.90% |
7.25% |
5.26% |
23.58% |
Ratios to Average Net Assets F,H |
|
|
|
|
|
|
Expenses before reductions |
.96% A |
.98% |
1.02% |
1.03% |
1.04% |
1.07% |
Expenses net of fee waivers, if any |
.96% A |
.98% |
1.02% |
1.03% |
1.04% |
1.07% |
Expenses net of all reductions |
.96% A |
.97% |
1.01% |
1.02% |
1.04% |
1.07% |
Net investment income (loss) |
2.89% A,I |
2.07% |
2.52% |
1.82% |
1.21% |
1.67% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 798 |
$ 777 |
$ 646 |
$ 634 |
$ 719 |
$ 831 |
Portfolio turnover rate G |
41% A |
34% |
49% |
89% |
29% |
76% |
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 Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Investment income per share reflects a large, non-recurring dividends which amounted to $.11 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 2.19%.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 32.09 |
$ 25.94 |
$ 22.50 |
$ 21.37 |
$ 20.54 |
$ 16.94 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E |
.43 I |
.55 |
.57 |
.38 |
.22 |
.25 |
Net realized and unrealized gain (loss) |
1.68 |
6.15 |
3.37 |
1.13 |
.82 |
3.63 |
Total from investment operations |
2.11 |
6.70 |
3.94 |
1.51 |
1.04 |
3.88 |
Distributions from net investment income |
(.45) |
(.52) |
(.50) |
(.38) |
(.21) |
(.28) |
Distributions from net realized gain |
- |
(.03) |
- |
- |
- |
- |
Total distributions |
(.45) |
(.55) |
(.50) |
(.38) |
(.21) |
(.28) |
Net asset value, end of period |
$ 33.75 |
$ 32.09 |
$ 25.94 |
$ 22.50 |
$ 21.37 |
$ 20.54 |
Total Return B, C, D |
6.65% |
26.14% |
17.70% |
7.02% |
5.09% |
23.35% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions |
1.18% A |
1.19% |
1.21% |
1.22% |
1.23% |
1.28% |
Expenses net of fee waivers, if any |
1.18% A |
1.19% |
1.21% |
1.22% |
1.23% |
1.28% |
Expenses net of all reductions |
1.18% A |
1.18% |
1.21% |
1.21% |
1.22% |
1.27% |
Net investment income (loss) |
2.67% A,I |
1.86% |
2.32% |
1.63% |
1.03% |
1.47% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 998 |
$ 984 |
$ 854 |
$ 862 |
$ 1,108 |
$ 1,264 |
Portfolio turnover rate G |
41% A |
34% |
49% |
89% |
29% |
76% |
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 Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Investment income per share reflects a large, non-recurring dividend which amounted to $.11 per share. Excluding this non-recurring dividend>, the ratio of net investment income (loss) to average net assets would have been 1.97%.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 31.79 |
$ 25.69 |
$ 22.29 |
$ 21.16 |
$ 20.33 |
$ 16.77 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E |
.33 I |
.36 |
.42 |
.24 |
.09 |
.15 |
Net realized and unrealized gain (loss) |
1.66 |
6.10 |
3.34 |
1.12 |
.82 |
3.59 |
Total from investment operations |
1.99 |
6.46 |
3.76 |
1.36 |
.91 |
3.74 |
Distributions from net investment income |
(.34) |
(.33) |
(.36) |
(.23) |
(.08) |
(.18) |
Distributions from net realized gain |
- |
(.03) |
- |
- |
- |
- |
Total distributions |
(.34) |
(.36) |
(.36) |
(.23) |
(.08) |
(.18) |
Net asset value, end of period |
$ 33.44 |
$ 31.79 |
$ 25.69 |
$ 22.29 |
$ 21.16 |
$ 20.33 |
Total Return B, C, D |
6.32% |
25.39% |
16.97% |
6.43% |
4.49% |
22.59% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions |
1.80% A |
1.80% |
1.80% |
1.81% |
1.82% |
1.84% |
Expenses net of fee waivers, if any |
1.80% A |
1.80% |
1.80% |
1.81% |
1.82% |
1.84% |
Expenses net of all reductions |
1.79% A |
1.79% |
1.80% |
1.80% |
1.81% |
1.84% |
Net investment income (loss) |
2.05% A,I |
1.26% |
1.73% |
1.04% |
.44% |
.90% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 22 |
$ 27 |
$ 31 |
$ 42 |
$ 63 |
$ 88 |
Portfolio turnover rate G |
41% A |
34% |
49% |
89% |
29% |
76% |
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 Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Investment income per share reflects a large, non-recurring dividend which amounted to $.11 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.36%.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 31.73 |
$ 25.66 |
$ 22.27 |
$ 21.16 |
$ 20.34 |
$ 16.78 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E |
.34 I |
.38 |
.43 |
.25 |
.09 |
.16 |
Net realized and unrealized gain (loss) |
1.66 |
6.09 |
3.33 |
1.11 |
.82 |
3.59 |
Total from investment operations |
2.00 |
6.47 |
3.76 |
1.36 |
.91 |
3.75 |
Distributions from net investment income |
(.36) |
(.37) |
(.37) |
(.25) |
(.09) |
(.19) |
Distributions from net realized gain |
- |
(.03) |
- |
- |
- |
- |
Total distributions |
(.36) |
(.40) |
(.37) |
(.25) |
(.09) |
(.19) |
Net asset value, end of period |
$ 33.37 |
$ 31.73 |
$ 25.66 |
$ 22.27 |
$ 21.16 |
$ 20.34 |
Total Return B, C, D |
6.37% |
25.46% |
17.03% |
6.40% |
4.50% |
22.63% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions |
1.72% A |
1.74% |
1.77% |
1.78% |
1.80% |
1.83% |
Expenses net of fee waivers, if any |
1.72% A |
1.74% |
1.77% |
1.78% |
1.80% |
1.83% |
Expenses net of all reductions |
1.72% A |
1.73% |
1.77% |
1.77% |
1.79% |
1.83% |
Net investment income (loss) |
2.13% A,I |
1.32% |
1.76% |
1.06% |
.46% |
.91% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 207 |
$ 195 |
$ 143 |
$ 134 |
$ 149 |
$ 165 |
Portfolio turnover rate G |
41% A |
34% |
49% |
89% |
29% |
76% |
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 Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Investment income per share reflects a large, non-recurring dividend which amounted to $.11 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.43%.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 32.62 |
$ 26.36 |
$ 22.86 |
$ 21.70 |
$ 20.85 |
$ 17.20 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D |
.52 H |
.70 |
.70 |
.50 |
.32 |
.34 |
Net realized and unrealized gain (loss) |
1.71 |
6.24 |
3.43 |
1.14 |
.83 |
3.68 |
Total from investment operations |
2.23 |
6.94 |
4.13 |
1.64 |
1.15 |
4.02 |
Distributions from net investment income |
(.53) |
(.65) |
(.63) |
(.48) |
(.30) |
(.37) |
Distributions from net realized gain |
- |
(.03) |
- |
- |
- |
- |
Total distributions |
(.53) |
(.68) |
(.63) |
(.48) |
(.30) |
(.37) |
Net asset value, end of period |
$ 34.32 |
$ 32.62 |
$ 26.36 |
$ 22.86 |
$ 21.70 |
$ 20.85 |
Total Return B, C |
6.91% |
26.72% |
18.27% |
7.55% |
5.56% |
23.90% |
Ratios to Average Net Assets E, G |
|
|
|
|
|
|
Expenses before reductions |
.70% A |
.72% |
.73% |
.74% |
.77% |
.79% |
Expenses net of fee waivers, if any |
.70% A |
.72% |
.73% |
.74% |
.77% |
.79% |
Expenses net of all reductions |
.70% A |
.71% |
.73% |
.73% |
.76% |
.78% |
Net investment income (loss) |
3.15% A,H |
2.34% |
2.80% |
2.10% |
1.49% |
1.96% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 491 |
$ 483 |
$ 445 |
$ 360 |
$ 464 |
$ 1,127 |
Portfolio turnover rate F |
41% A |
34% |
49% |
89% |
29% |
76% |
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Investment income per share reflects a large, non-recurring dividend which amounted to $.11 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 2.45%.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended |
Year ended |
|
(Unaudited) |
2013 G |
Selected Per-Share Data |
|
|
Net asset value, beginning of period |
$ 32.63 |
$ 31.44 |
Income from Investment Operations |
|
|
Net investment income (loss) D |
.55 I |
.23 |
Net realized and unrealized gain (loss) |
1.70 |
1.12 |
Total from investment operations |
2.25 |
1.35 |
Distributions from net investment income |
(.55) |
(.16) |
Net asset value, end of period |
$ 34.33 |
$ 32.63 |
Total Return B, C |
7.00% |
4.30% |
Ratios to Average Net Assets E, H |
|
|
Expenses before reductions |
.54% A |
.54% A |
Expenses net of fee waivers, if any |
.54% A |
.54% A |
Expenses net of all reductions |
.54% A |
.54% A |
Net investment income (loss) |
3.31% A,I |
2.37% A |
Supplemental Data |
|
|
Net assets, end of period (000s omitted) |
$ 112 |
$ 104 |
Portfolio turnover rate F |
41% A |
34% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period August 13, 2013 (commencement of sale of shares) to November 30, 2013.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Investment income per share reflects a large, non-recurring dividend which amounted to $.11 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 2.61%.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
For the period ended May 31, 2014 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor® Equity Income Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, Institutional Class and Class Z shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Valuation - continued
approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds and preferred securities are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Exchange-traded options are valued using the last sale price or, in the absence of a sale, the last offering price and are categorized as Level 1 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of May 31, 2014, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
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. One of the Fund's investments, EQTY ER Holdings, LLC, is owned through an entity that is treated as a corporation for U.S. tax purposes and may be subject to federal and state taxes upon disposition. The tax liability may differ materially depending on conditions when the investment is disposed. At period end, the estimated tax liability for this investment is presented as "Deferred taxes" in the Statement of Assets and Liabilities and included in "Change in net unrealized appreciation (depreciation) on investment securities" in the Statement of Operations.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, partnerships, market discount, equity-debt classifications, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation |
$ 436,501 |
Gross unrealized depreciation |
(34,771) |
Net unrealized appreciation (depreciation) on securities and other investments |
$ 401,730 |
|
|
Tax cost |
$ 2,129,490 |
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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
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.
Fiscal year of expiration |
|
2017 |
$ (100,096) |
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including options. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
The Fund used derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
The Fund's use of derivatives increased or decreased its exposure to the following risk:
Equity Risk |
Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
Semiannual Report
4. Derivative Instruments - continued
Risk Exposures and the Use of Derivative Instruments - continued
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Counterparty credit risk related to exchange-traded options may be mitigated by the protection provided by the exchange on which they trade.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
Options. Options give the purchaser the right, but not the obligation, to buy (call) or sell (put) an underlying security or financial instrument at an agreed exercise or strike price between or on certain dates. Options obligate the seller (writer) to buy (put) or sell (call) an underlying instrument at the exercise or strike price or cash settle an underlying derivative instrument if the holder exercises the option on or before the expiration date.
The Fund used exchange-traded written covered call options to manage its exposure to the market. When the Fund writes a covered call option, the Fund holds the underlying instrument which must be delivered to the holder upon the exercise of the option.
Upon entering into a written options contract, the Fund will receive a premium. Premiums received are reflected as a liability on the Statement of Assets and Liabilities. Options are valued daily and any unrealized appreciation (depreciation) is reflected on the Statement of Assets and Liabilities. When a written option is exercised, the premium is added to the proceeds from the sale of the underlying instrument in determining the gain or loss realized on that investment. When an option is closed the Fund will realize a gain or loss depending on whether the proceeds or amount paid for the closing sale transaction are greater or less than the premium received. When an option expires, gains and losses are realized to the extent of premiums received. The net realized gain (loss) on closed and expired written options and the change in net unrealized appreciation (depreciation) on written options are reflected separately on the Statement of Operations.
Writing call options tends to decrease exposure to the underlying instrument and risk of loss is the change in value in excess of the premium received.
Any open options at period end are presented in the Schedule of Investments under the caption "Written Options" and are representative of volume of activity during the period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
4. Derivative Instruments - continued
Options - continued
During the period, the Fund recognized net realized gain (loss) of $1,505 and a change in net unrealized appreciation (depreciation) of $588 related to its investment in written options. This amount is included in the Statement of Operations.
The following is a summary of the Fund's written options activity:
Written Options |
Number of |
Amount of |
Outstanding at beginning of period |
13 |
$ 831 |
Options Opened |
35 |
2,747 |
Options Exercised |
(18) |
(1,450) |
Options Closed |
(14) |
(877) |
Options Expired |
(13) |
(987) |
Outstanding at end of period |
3 |
$ 264 |
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $492,345 and $574,742, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .20% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .45% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services.
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees - continued
For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
|
Distribution |
Service |
Total Fees |
Retained |
Class A |
-% |
.25% |
$ 974 |
$ 20 |
Class T |
.25% |
.25% |
2,439 |
21 |
Class B |
.75% |
.25% |
123 |
93 |
Class C |
.75% |
.25% |
998 |
116 |
|
|
|
$ 4,534 |
$ 250 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
|
Retained |
Class A |
$ 66 |
Class T |
20 |
Class B* |
7 |
Class C* |
9 |
|
$ 102 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales
are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund, except for Class Z. FIIOC receives an asset-based fee of Class Z's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
For the period, transfer agent fees for each class were as follows:
|
Amount |
% of |
Class A |
$ 843 |
.22 |
Class T |
912 |
.19 |
Class B |
37 |
.30 |
Class C |
225 |
.23 |
Institutional Class |
503 |
.21 |
Class Z |
-** |
.05 |
|
$ 2,520 |
|
* Annualized
** Amount represents twenty-four dollars.
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $1 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $2 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Semiannual Report
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $46. During the period, there were no securities loaned to FCM.
9. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $29 for the period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
|
Six months ended |
Year ended |
From net investment income |
|
|
Class A |
$ 11,878 |
$ 14,351 |
Class T |
13,497 |
16,481 |
Class B |
268 |
359 |
Class C |
2,250 |
2,111 |
Institutional Class |
7,678 |
10,429 |
Class Z |
2 |
-* |
Total |
$ 35,573 |
$ 43,731 |
From net realized gain |
|
|
Class A |
$ - |
$ 754 |
Class T |
- |
982 |
Class B |
- |
36 |
Class C |
- |
167 |
Institutional Class |
- |
505 |
Total |
$ - |
$ 2,444 |
A Distributions for Class Z are for the period November 30, 2013 (commencement of sale of shares) to November 30, 2013.
* Amount represents four hundred ninety-six dollars.
11. Share Transactions.
Transactions for each class of shares were as follows:
|
Shares |
Dollars |
||
|
Six months ended |
Year ended |
Six months ended |
Year ended |
Class A |
|
|
|
|
Shares sold |
1,638 |
3,676 |
$ 52,192 |
$ 106,691 |
Reinvestment of distributions |
347 |
505 |
10,973 |
13,926 |
Shares redeemed |
(2,583) |
(4,869) |
(82,531) |
(139,536) |
Net increase (decrease) |
(598) |
(688) |
$ (19,366) |
$ (18,919) |
Class T |
|
|
|
|
Shares sold |
1,708 |
3,948 |
$ 55,411 |
$ 115,563 |
Reinvestment of distributions |
405 |
601 |
12,999 |
16,778 |
Shares redeemed |
(3,218) |
(6,787) |
(103,853) |
(197,631) |
Net increase (decrease) |
(1,105) |
(2,238) |
$ (35,443) |
$ (65,290) |
Class B |
|
|
|
|
Shares sold |
14 |
42 |
$ 450 |
$ 1,216 |
Reinvestment of distributions |
8 |
13 |
244 |
359 |
Shares redeemed |
(208) |
(423) |
(6,694) |
(12,147) |
Net increase (decrease) |
(186) |
(368) |
$ (6,000) |
$ (10,572) |
Semiannual Report
11. Share Transactions - continued
|
Shares |
Dollars |
||
|
Six months ended |
Year ended |
Six months ended |
Year ended |
Class C |
|
|
|
|
Shares sold |
550 |
1,636 |
$ 17,608 |
$ 48,035 |
Reinvestment of distributions |
62 |
72 |
1,976 |
1,992 |
Shares redeemed |
(539) |
(1,139) |
(17,325) |
(33,153) |
Net increase (decrease) |
73 |
569 |
$ 2,259 |
$ 16,874 |
Institutional Class |
|
|
|
|
Shares sold |
2,084 |
2,274 |
$ 68,480 |
$ 67,514 |
Reinvestment of distributions |
225 |
369 |
7,349 |
10,496 |
Shares redeemed |
(2,804) |
(4,733) |
(92,909) |
(140,377) |
Net increase (decrease) |
(495) |
(2,090) |
$ (17,080) |
$ (62,367) |
Class Z |
|
|
|
|
Shares sold |
- |
3 |
$ - |
$ 100 |
Reinvestment of distributions |
-* |
-** |
2 |
-*** |
Net increase (decrease) |
- |
3 |
$ 2 |
$ 100 |
A Share transactions for Class Z are for the period August 13, 2013 (commencement of sale of shares) to November 30, 2013.
* Amount represents fifty-four shares.
** Amount represents seventy-two shares.
*** Amount represents four hundred ninety-six dollars.
12. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
JPMorgan Chase Bank
New York, NY
(Fidelity Investment logo)(registered trademark)
EPI-USAN-0714 1.786785.111
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Equity Income
Fund - Class Z
Semiannual Report
May 31, 2014
(Fidelity Cover Art)
Shareholder Expense Example |
An example of shareholder expenses. |
|
Investment Changes |
A summary of major shifts in the fund's investments over the past six months. |
|
Investments |
A complete list of the fund's investments with their market values. |
|
Financial Statements |
Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
|
Notes |
Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (December 1, 2013 to May 31, 2014).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
|
Annualized |
Beginning |
Ending |
Expenses Paid |
Class A |
.96% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,067.50 |
$ 4.95 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,020.14 |
$ 4.84 |
Class T |
1.18% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,066.50 |
$ 6.08 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,019.05 |
$ 5.94 |
Class B |
1.80% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,063.20 |
$ 9.26 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,015.96 |
$ 9.05 |
Class C |
1.72% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,063.70 |
$ 8.85 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,016.36 |
$ 8.65 |
Institutional Class |
.70% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,069.10 |
$ 3.61 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,021.44 |
$ 3.53 |
Class Z |
.54% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,070.00 |
$ 2.79 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,022.24 |
$ 2.72 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
Semiannual Report
Top Ten Stocks as of May 31, 2014 |
||
|
% of fund's |
% of fund's net assets |
JPMorgan Chase & Co. |
3.9 |
4.0 |
Chevron Corp. |
3.0 |
2.9 |
Cisco Systems, Inc. |
2.5 |
2.2 |
General Electric Co. |
2.4 |
2.5 |
MetLife, Inc. |
2.3 |
2.3 |
Procter & Gamble Co. |
2.1 |
2.1 |
Johnson & Johnson |
2.1 |
1.9 |
Verizon Communications, Inc. |
1.8 |
1.3 |
Exxon Mobil Corp. |
1.8 |
2.4 |
Wells Fargo & Co. |
1.8 |
3.0 |
|
23.7 |
|
Top Five Market Sectors as of May 31, 2014 |
||
|
% of fund's |
% of fund's net assets |
Financials |
24.0 |
21.4 |
Energy |
14.9 |
14.0 |
Information Technology |
11.9 |
11.5 |
Consumer Staples |
10.6 |
8.8 |
Industrials |
9.6 |
10.4 |
Asset Allocation (% of fund's net assets) |
|||||||
As of May 31, 2014* |
As of November 30, 2013** |
||||||
Stocks 90.2% |
|
Stocks 90.8% |
|
||||
Bonds 0.2% |
|
Bonds 0.1% |
|
||||
Convertible |
|
Convertible |
|
||||
Other Investments 0.6% |
|
Other Investments 0.3% |
|
||||
Short-Term |
|
Short-Term |
|
||||
* Foreign investments |
10.5% |
|
** Foreign investments |
11.5% |
|
||
* Written options |
0.0% |
|
** Written options |
(0.1%) |
|
Semiannual Report
Showing Percentage of Net Assets
Common Stocks - 89.8% |
|||
Shares |
Value (000s) |
||
CONSUMER DISCRETIONARY - 6.6% |
|||
Auto Components - 0.2% |
|||
Gentex Corp. |
189,860 |
$ 5,491 |
|
Hotels, Restaurants & Leisure - 2.1% |
|||
Darden Restaurants, Inc. (e) |
229,600 |
11,508 |
|
McDonald's Corp. |
242,117 |
24,558 |
|
Texas Roadhouse, Inc. Class A |
214,562 |
5,424 |
|
Yum! Brands, Inc. |
151,121 |
11,683 |
|
|
53,173 |
||
Leisure Products - 0.3% |
|||
New Academy Holding Co. LLC unit (a)(j)(k) |
52,800 |
7,546 |
|
Media - 1.6% |
|||
Comcast Corp. Class A |
626,874 |
32,723 |
|
Sinclair Broadcast Group, Inc. Class A |
212,235 |
6,278 |
|
|
39,001 |
||
Multiline Retail - 1.8% |
|||
Kohl's Corp. |
273,776 |
14,904 |
|
Target Corp. |
515,455 |
29,257 |
|
|
44,161 |
||
Specialty Retail - 0.6% |
|||
Abercrombie & Fitch Co. Class A |
148,043 |
5,627 |
|
Foot Locker, Inc. |
133,131 |
6,414 |
|
Staples, Inc. |
369,733 |
4,159 |
|
|
16,200 |
||
TOTAL CONSUMER DISCRETIONARY |
165,572 |
||
CONSUMER STAPLES - 10.6% |
|||
Beverages - 2.0% |
|||
Molson Coors Brewing Co. Class B |
162,005 |
10,649 |
|
PepsiCo, Inc. |
113,122 |
9,992 |
|
The Coca-Cola Co. |
726,672 |
29,728 |
|
|
50,369 |
||
Food & Staples Retailing - 1.6% |
|||
CVS Caremark Corp. |
185,000 |
14,489 |
|
Wal-Mart Stores, Inc. |
154,750 |
11,880 |
|
Walgreen Co. |
208,844 |
15,018 |
|
|
41,387 |
||
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
CONSUMER STAPLES - continued |
|||
Food Products - 0.9% |
|||
B&G Foods, Inc. Class A |
70,054 |
$ 2,400 |
|
Kellogg Co. |
285,552 |
19,697 |
|
|
22,097 |
||
Household Products - 2.1% |
|||
Procter & Gamble Co. |
654,217 |
52,854 |
|
Tobacco - 4.0% |
|||
Altria Group, Inc. |
692,065 |
28,762 |
|
British American Tobacco PLC sponsored ADR |
100,511 |
12,188 |
|
Japan Tobacco, Inc. |
38,700 |
1,315 |
|
Lorillard, Inc. |
454,553 |
28,260 |
|
Philip Morris International, Inc. |
161,212 |
14,274 |
|
Reynolds American, Inc. |
245,446 |
14,636 |
|
|
99,435 |
||
TOTAL CONSUMER STAPLES |
266,142 |
||
ENERGY - 14.0% |
|||
Energy Equipment & Services - 1.8% |
|||
Ensco PLC Class A |
192,324 |
10,128 |
|
National Oilwell Varco, Inc. |
141,849 |
11,613 |
|
Noble Corp. |
307,414 |
9,671 |
|
Schlumberger Ltd. |
119,457 |
12,428 |
|
|
43,840 |
||
Oil, Gas & Consumable Fuels - 12.2% |
|||
Access Midstream Partners LP |
81,247 |
5,118 |
|
Anadarko Petroleum Corp. |
124,445 |
12,800 |
|
Apache Corp. |
214,027 |
19,952 |
|
Canadian Natural Resources Ltd. |
359,300 |
14,623 |
|
Chevron Corp. |
604,769 |
74,260 |
|
CONSOL Energy, Inc. |
250,475 |
11,063 |
|
EV Energy Partners LP |
243,025 |
8,975 |
|
Exxon Mobil Corp. |
450,560 |
45,295 |
|
Gazprom OAO sponsored ADR (Reg. S) |
136,300 |
1,111 |
|
Holly Energy Partners LP |
114,912 |
4,061 |
|
HollyFrontier Corp. |
58,877 |
2,900 |
|
Imperial Oil Ltd. |
129,500 |
6,376 |
|
Legacy Reserves LP |
115,099 |
3,384 |
|
Markwest Energy Partners LP |
257,191 |
15,933 |
|
Occidental Petroleum Corp. |
154,423 |
15,394 |
|
Royal Dutch Shell PLC Class A sponsored ADR |
140,158 |
11,016 |
|
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
ENERGY - continued |
|||
Oil, Gas & Consumable Fuels - continued |
|||
Scorpio Tankers, Inc. |
126,500 |
$ 1,147 |
|
Suncor Energy, Inc. |
486,500 |
18,723 |
|
The Williams Companies, Inc. |
695,250 |
32,649 |
|
Williams Partners LP |
61,100 |
3,245 |
|
|
308,025 |
||
TOTAL ENERGY |
351,865 |
||
FINANCIALS - 22.8% |
|||
Banks - 9.3% |
|||
Bank of America Corp. |
270,900 |
4,101 |
|
CIT Group, Inc. (i) |
72,362 |
3,219 |
|
Citigroup, Inc. |
236,500 |
11,250 |
|
Comerica, Inc. |
104,780 |
5,026 |
|
FirstMerit Corp. |
169,240 |
3,160 |
|
JPMorgan Chase & Co. |
1,763,557 |
98,004 |
|
M&T Bank Corp. (e) |
194,017 |
23,548 |
|
PNC Financial Services Group, Inc. |
71,200 |
6,071 |
|
Standard Chartered PLC (United Kingdom) |
405,343 |
9,121 |
|
U.S. Bancorp |
560,100 |
23,631 |
|
Valley National Bancorp (e) |
226,900 |
2,199 |
|
Wells Fargo & Co. |
871,950 |
44,278 |
|
|
233,608 |
||
Capital Markets - 5.4% |
|||
Apollo Global Management LLC Class A |
161,502 |
4,010 |
|
Apollo Investment Corp. |
888,252 |
7,444 |
|
Ares Capital Corp. |
325,442 |
5,611 |
|
Ares Management LP |
114,800 |
2,181 |
|
Ashmore Group PLC (e) |
837,305 |
4,959 |
|
BlackRock, Inc. Class A |
37,577 |
11,457 |
|
Carlyle Group LP |
142,800 |
4,423 |
|
Charles Schwab Corp. |
195,406 |
4,926 |
|
Greenhill & Co., Inc. (e) |
54,823 |
2,726 |
|
Invesco Ltd. |
124,100 |
4,554 |
|
KKR & Co. LP |
1,665,196 |
37,850 |
|
Morgan Stanley |
375,942 |
11,602 |
|
State Street Corp. |
154,599 |
10,091 |
|
The Blackstone Group LP |
828,703 |
25,756 |
|
|
137,590 |
||
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
FINANCIALS - continued |
|||
Diversified Financial Services - 0.6% |
|||
Berkshire Hathaway, Inc. Class B (a) |
93,785 |
$ 12,036 |
|
TPG Specialty Lending, Inc. |
126,100 |
2,672 |
|
|
14,708 |
||
Insurance - 4.7% |
|||
ACE Ltd. |
202,111 |
20,961 |
|
Allied World Assurance Co. Holdings Ltd. |
34,500 |
1,294 |
|
Brasil Insurance Participacoes e Administracao SA |
539,700 |
1,927 |
|
esure Group PLC |
611,000 |
2,724 |
|
MetLife, Inc. |
1,115,557 |
56,815 |
|
Prudential Financial, Inc. |
115,898 |
9,522 |
|
The Chubb Corp. |
134,667 |
12,478 |
|
The Travelers Companies, Inc. |
136,849 |
12,789 |
|
|
118,510 |
||
Real Estate Investment Trusts - 2.6% |
|||
American Capital Agency Corp. |
433,580 |
10,289 |
|
Annaly Capital Management, Inc. |
802,994 |
9,467 |
|
CBL & Associates Properties, Inc. |
280,000 |
5,270 |
|
Coresite Realty Corp. |
101,920 |
3,231 |
|
First Potomac Realty Trust |
473,077 |
6,188 |
|
Home Properties, Inc. |
153,430 |
9,540 |
|
Piedmont Office Realty Trust, Inc. Class A (e) |
157,535 |
2,933 |
|
Rayonier, Inc. |
97,852 |
4,658 |
|
Retail Properties America, Inc. |
375,097 |
5,641 |
|
Two Harbors Investment Corp. |
565,041 |
5,950 |
|
Ventas, Inc. |
42,294 |
2,825 |
|
|
65,992 |
||
Real Estate Management & Development - 0.1% |
|||
Beazer Pre-Owned Rental Homes, Inc. (a)(k) |
96,000 |
1,788 |
|
Thrifts & Mortgage Finance - 0.1% |
|||
Radian Group, Inc. |
124,900 |
1,801 |
|
TOTAL FINANCIALS |
573,997 |
||
HEALTH CARE - 7.9% |
|||
Biotechnology - 0.4% |
|||
Amgen, Inc. |
80,149 |
9,296 |
|
Health Care Equipment & Supplies - 0.6% |
|||
Baxter International, Inc. |
91,000 |
6,771 |
|
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
HEALTH CARE - continued |
|||
Health Care Equipment & Supplies - continued |
|||
Covidien PLC |
71,700 |
$ 5,242 |
|
St. Jude Medical, Inc. |
40,262 |
2,613 |
|
|
14,626 |
||
Health Care Providers & Services - 0.9% |
|||
Aetna, Inc. |
41,215 |
3,196 |
|
Quest Diagnostics, Inc. |
100,036 |
5,991 |
|
UnitedHealth Group, Inc. |
167,876 |
13,368 |
|
WellPoint, Inc. |
44 |
5 |
|
|
22,560 |
||
Pharmaceuticals - 6.0% |
|||
AbbVie, Inc. |
47,354 |
2,573 |
|
Astellas Pharma, Inc. |
617,100 |
7,939 |
|
AstraZeneca PLC sponsored ADR |
162,212 |
11,712 |
|
Johnson & Johnson |
512,218 |
51,970 |
|
Merck & Co., Inc. |
519,268 |
30,045 |
|
Pfizer, Inc. |
863,813 |
25,595 |
|
Sanofi SA |
72,826 |
7,786 |
|
Teva Pharmaceutical Industries Ltd. sponsored ADR |
277,398 |
14,006 |
|
|
151,626 |
||
TOTAL HEALTH CARE |
198,108 |
||
INDUSTRIALS - 9.1% |
|||
Aerospace & Defense - 0.8% |
|||
United Technologies Corp. |
175,807 |
20,432 |
|
Air Freight & Logistics - 2.3% |
|||
C.H. Robinson Worldwide, Inc. |
206,479 |
12,360 |
|
PostNL NV (a) |
757,600 |
3,714 |
|
United Parcel Service, Inc. Class B |
393,490 |
40,876 |
|
|
56,950 |
||
Airlines - 0.1% |
|||
Copa Holdings SA Class A |
8,700 |
1,243 |
|
Commercial Services & Supplies - 1.3% |
|||
Intrum Justitia AB |
161,784 |
5,036 |
|
KAR Auction Services, Inc. |
156,904 |
4,792 |
|
Republic Services, Inc. |
634,789 |
22,472 |
|
|
32,300 |
||
Electrical Equipment - 0.6% |
|||
Eaton Corp. PLC |
53,300 |
3,928 |
|
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
INDUSTRIALS - continued |
|||
Electrical Equipment - continued |
|||
Emerson Electric Co. |
76,270 |
$ 5,089 |
|
Hubbell, Inc. Class B |
48,569 |
5,683 |
|
|
14,700 |
||
Industrial Conglomerates - 2.4% |
|||
General Electric Co. |
2,292,733 |
61,422 |
|
Machinery - 0.8% |
|||
Cummins, Inc. |
50,637 |
7,744 |
|
Stanley Black & Decker, Inc. (i) |
151,826 |
13,270 |
|
|
21,014 |
||
Professional Services - 0.5% |
|||
Acacia Research Corp. |
202,860 |
3,274 |
|
Bureau Veritas SA |
86,073 |
2,595 |
|
Michael Page International PLC |
732,018 |
5,628 |
|
|
11,497 |
||
Road & Rail - 0.3% |
|||
Union Pacific Corp. |
43,902 |
8,748 |
|
TOTAL INDUSTRIALS |
228,306 |
||
INFORMATION TECHNOLOGY - 11.1% |
|||
Communications Equipment - 2.9% |
|||
Cisco Systems, Inc. |
2,548,453 |
62,743 |
|
QUALCOMM, Inc. |
129,689 |
10,433 |
|
|
73,176 |
||
Electronic Equipment & Components - 0.4% |
|||
TE Connectivity Ltd. |
159,030 |
9,456 |
|
Internet Software & Services - 0.3% |
|||
Yahoo!, Inc. (a) |
241,700 |
8,375 |
|
IT Services - 3.5% |
|||
Accenture PLC Class A |
81,896 |
6,670 |
|
IBM Corp. |
239,223 |
44,103 |
|
Paychex, Inc. |
763,278 |
31,378 |
|
Quindell PLC |
5,244,900 |
1,824 |
|
Xerox Corp. |
410,915 |
5,075 |
|
|
89,050 |
||
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
INFORMATION TECHNOLOGY - continued |
|||
Semiconductors & Semiconductor Equipment - 1.6% |
|||
Applied Materials, Inc. |
957,177 |
$ 19,325 |
|
Broadcom Corp. Class A |
677,529 |
21,593 |
|
|
40,918 |
||
Software - 1.8% |
|||
CA Technologies, Inc. |
230,081 |
6,601 |
|
Microsoft Corp. (i) |
928,138 |
37,998 |
|
|
44,599 |
||
Technology Hardware, Storage & Peripherals - 0.6% |
|||
Apple, Inc. |
15,103 |
9,560 |
|
EMC Corp. |
216,519 |
5,751 |
|
|
15,311 |
||
TOTAL INFORMATION TECHNOLOGY |
280,885 |
||
MATERIALS - 1.3% |
|||
Chemicals - 0.4% |
|||
Potash Corp. of Saskatchewan, Inc. |
66,400 |
2,410 |
|
RPM International, Inc. |
145,099 |
6,249 |
|
Tronox Ltd. Class A |
76,965 |
2,045 |
|
|
10,704 |
||
Metals & Mining - 0.9% |
|||
Commercial Metals Co. |
294,254 |
5,223 |
|
Freeport-McMoRan Copper & Gold, Inc. |
465,414 |
15,847 |
|
Goldcorp, Inc. |
13,700 |
322 |
|
SunCoke Energy Partners LP |
38,412 |
1,101 |
|
|
22,493 |
||
TOTAL MATERIALS |
33,197 |
||
TELECOMMUNICATION SERVICES - 3.5% |
|||
Diversified Telecommunication Services - 3.1% |
|||
AT&T, Inc. |
679,727 |
24,110 |
|
Verizon Communications, Inc. |
923,006 |
46,113 |
|
Verizon Communications, Inc. CDI |
128,984 |
6,435 |
|
|
76,658 |
||
Wireless Telecommunication Services - 0.4% |
|||
Vodafone Group PLC |
3,076,582 |
10,787 |
|
TOTAL TELECOMMUNICATION SERVICES |
87,445 |
||
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
UTILITIES - 2.9% |
|||
Electric Utilities - 2.9% |
|||
American Electric Power Co., Inc. |
317,915 |
$ 16,961 |
|
Hawaiian Electric Industries, Inc. (e) |
218,498 |
5,255 |
|
Pinnacle West Capital Corp. |
42,500 |
2,355 |
|
PPL Corp. |
478,591 |
16,794 |
|
Southern Co. |
561,125 |
24,566 |
|
Xcel Energy, Inc. |
262,029 |
8,060 |
|
|
73,991 |
||
Multi-Utilities - 0.0% |
|||
CenterPoint Energy, Inc. |
30,314 |
731 |
|
TOTAL UTILITIES |
74,722 |
||
TOTAL COMMON STOCKS (Cost $1,868,328) |
|
||
Preferred Stocks - 1.6% |
|||
|
|
|
|
Convertible Preferred Stocks - 1.2% |
|||
CONSUMER STAPLES - 0.0% |
|||
Food Products - 0.0% |
|||
Post Holdings, Inc. 5.25% (a) |
10,000 |
1,058 |
|
FINANCIALS - 0.3% |
|||
Real Estate Investment Trusts - 0.3% |
|||
American Tower Corp. Series A, 5.25% (a) |
13,000 |
1,391 |
|
Crown Castle International Corp. Series A, 4.50% |
43,800 |
4,556 |
|
Weyerhaeuser Co. Series A, 6.375% |
43,200 |
2,531 |
|
|
8,478 |
||
HEALTH CARE - 0.2% |
|||
Health Care Equipment & Supplies - 0.2% |
|||
Alere, Inc. 3.00% |
11,539 |
3,623 |
|
INDUSTRIALS - 0.1% |
|||
Aerospace & Defense - 0.1% |
|||
United Technologies Corp. 7.50% |
31,500 |
2,073 |
|
Preferred Stocks - continued |
|||
Shares |
Value (000s) |
||
Convertible Preferred Stocks - continued |
|||
UTILITIES - 0.6% |
|||
Electric Utilities - 0.2% |
|||
NextEra Energy, Inc.: |
|
|
|
5.889% |
35,144 |
$ 2,195 |
|
Series E, 5.599% |
61,200 |
3,927 |
|
|
6,122 |
||
Multi-Utilities - 0.4% |
|||
CenterPoint Energy, Inc. 2.00% ZENS |
70,100 |
3,821 |
|
Dominion Resources, Inc.: |
|
|
|
Series A, 6.125% |
43,400 |
2,486 |
|
Series B, 6.00% |
43,400 |
2,502 |
|
|
8,809 |
||
TOTAL UTILITIES |
14,931 |
||
TOTAL CONVERTIBLE PREFERRED STOCKS |
30,163 |
||
Nonconvertible Preferred Stocks - 0.4% |
|||
FINANCIALS - 0.4% |
|||
Consumer Finance - 0.4% |
|||
Ally Financial, Inc.: |
|
|
|
7.00% (g) |
8,531 |
8,604 |
|
Series A, 8.50% |
60,466 |
1,672 |
|
|
10,276 |
||
TOTAL PREFERRED STOCKS (Cost $35,784) |
|
Corporate Bonds - 3.5% |
||||
|
Principal Amount (000s) (d) |
|
||
Convertible Bonds - 3.3% |
||||
CONSUMER DISCRETIONARY - 0.3% |
||||
Automobiles - 0.2% |
||||
Ford Motor Co. 4.25% 11/15/16 |
|
$ 800 |
1,531 |
|
Volkswagen International Finance NV 5.5% 11/9/15 (g) |
EUR |
2,400 |
3,908 |
|
|
5,439 |
|||
Diversified Consumer Services - 0.1% |
||||
Carriage Services, Inc. 2.75% 3/15/21 (g) |
|
1,000 |
1,078 |
|
Corporate Bonds - continued |
||||
|
Principal Amount (000s) (d) |
Value (000s) |
||
Convertible Bonds - continued |
||||
CONSUMER DISCRETIONARY - continued |
||||
Media - 0.0% |
||||
Liberty Media Corp. 3.5% 1/15/31 |
|
$ 958 |
$ 887 |
|
TOTAL CONSUMER DISCRETIONARY |
7,404 |
|||
ENERGY - 0.4% |
||||
Oil, Gas & Consumable Fuels - 0.4% |
||||
Amyris, Inc. 3% 2/27/17 |
|
516 |
421 |
|
BPZ Energy, Inc. 8.5% 10/1/17 |
|
1,070 |
1,252 |
|
Chesapeake Energy Corp. 2.5% 5/15/37 |
|
3,600 |
3,802 |
|
Clean Energy Fuels Corp. 5.25% 10/1/18 (g) |
|
1,410 |
1,358 |
|
Ship Finance International Ltd. 3.25% 2/1/18 |
|
2,810 |
3,143 |
|
|
9,976 |
|||
FINANCIALS - 0.4% |
||||
Capital Markets - 0.1% |
||||
Ares Capital Corp. 5.75% 2/1/16 |
|
1,830 |
1,960 |
|
Insurance - 0.1% |
||||
Fidelity National Financial, Inc. 4.25% 8/15/18 |
|
1,850 |
3,069 |
|
Thrifts & Mortgage Finance - 0.2% |
||||
MGIC Investment Corp. 9% 4/1/63 (g) |
|
3,390 |
4,335 |
|
TOTAL FINANCIALS |
9,364 |
|||
HEALTH CARE - 0.8% |
||||
Biotechnology - 0.1% |
||||
Gilead Sciences, Inc. 1.625% 5/1/16 |
|
250 |
892 |
|
Theravance, Inc. 2.125% 1/15/23 |
|
2,260 |
2,698 |
|
|
3,590 |
|||
Health Care Equipment & Supplies - 0.1% |
||||
Teleflex, Inc. 3.875% 8/1/17 |
|
1,380 |
2,445 |
|
Health Care Providers & Services - 0.6% |
||||
HealthSouth Corp. 2% 12/1/43 |
|
4,116 |
4,445 |
|
Molina Healthcare, Inc. 1.125% 1/15/20 |
|
1,590 |
1,979 |
|
WellPoint, Inc. 2.75% 10/15/42 |
|
5,070 |
7,871 |
|
|
14,295 |
|||
TOTAL HEALTH CARE |
20,330 |
|||
Corporate Bonds - continued |
||||
|
Principal Amount (000s) (d) |
Value (000s) |
||
Convertible Bonds - continued |
||||
INDUSTRIALS - 0.3% |
||||
Commercial Services & Supplies - 0.1% |
||||
Covanta Holding Corp. 3.25% 7/1/14 |
|
$ 1,830 |
$ 2,162 |
|
Construction & Engineering - 0.1% |
||||
Layne Christensen Co. 4.25% 11/15/18 (g) |
|
1,080 |
1,046 |
|
MasTec, Inc.: |
|
|
|
|
4% 6/15/14 |
|
890 |
2,020 |
|
4.25% 12/15/14 |
|
420 |
980 |
|
|
4,046 |
|||
Machinery - 0.1% |
||||
Navistar International Corp. 4.75% 4/15/19 (g) |
|
1,530 |
1,566 |
|
TOTAL INDUSTRIALS |
7,774 |
|||
INFORMATION TECHNOLOGY - 0.8% |
||||
Communications Equipment - 0.2% |
||||
InterDigital, Inc. 2.5% 3/15/16 |
|
4,730 |
4,919 |
|
Liberty Interactive LLC 0.75% 3/30/43 |
|
1,250 |
1,631 |
|
|
6,550 |
|||
Semiconductors & Semiconductor Equipment - 0.4% |
||||
Canadian Solar, Inc. 4.25% 2/15/19 (g) |
|
1,760 |
1,709 |
|
GT Advanced Technologies, Inc.: |
|
|
|
|
3% 10/1/17 |
|
3,530 |
8,086 |
|
3% 12/15/20 |
|
720 |
1,171 |
|
|
10,966 |
|||
Software - 0.2% |
||||
TiVo, Inc. 4% 3/15/16 (g) |
|
3,230 |
4,070 |
|
TOTAL INFORMATION TECHNOLOGY |
21,586 |
|||
MATERIALS - 0.2% |
||||
Metals & Mining - 0.2% |
||||
Goldcorp, Inc. 2% 8/1/14 |
|
3,120 |
3,126 |
|
Newmont Mining Corp. 1.25% 7/15/14 |
|
2,000 |
2,000 |
|
|
5,126 |
|||
Corporate Bonds - continued |
||||
|
Principal Amount (000s) (d) |
Value (000s) |
||
Convertible Bonds - continued |
||||
UTILITIES - 0.1% |
||||
Electric Utilities - 0.1% |
||||
NRG Yield, Inc. 3.5% 2/1/19 (g) |
|
$ 2,480 |
$ 2,769 |
|
TOTAL CONVERTIBLE BONDS |
84,329 |
|||
Nonconvertible Bonds - 0.2% |
||||
INDUSTRIALS - 0.1% |
||||
Commercial Services & Supplies - 0.1% |
||||
APX Group, Inc. 8.75% 12/1/20 |
|
2,545 |
2,596 |
|
MATERIALS - 0.1% |
||||
Metals & Mining - 0.1% |
||||
JMC Steel Group, Inc. 8.25% 3/15/18 (g) |
|
1,489 |
1,526 |
|
Walter Energy, Inc. 8.5% 4/15/21 |
|
2,030 |
1,096 |
|
|
2,622 |
|||
TOTAL NONCONVERTIBLE BONDS |
5,218 |
|||
TOTAL CORPORATE BONDS (Cost $79,021) |
|
|||
Other - 0.5% |
||||
ENERGY - 0.5% |
||||
Oil, Gas & Consumable Fuels - 0.5% |
||||
EQTY ER Holdings, LLC 12% 1/28/18 (f)(k)(l) |
|
5,667 |
5,667 |
Shares |
|
EQTY ER Holdings, LLC (f)(k)(l) |
|
2,833,333 |
6,344 |
|
TOTAL OTHER (Cost $8,504) . |
|
|||
Preferred Securities - 0.1% |
||||
|
Principal Amount (000s) (d) |
Value (000s) |
||
FINANCIALS - 0.1% |
||||
Diversified Financial Services - 0.1% |
||||
Baggot Securities Ltd. 10.24% (g)(h) (Cost $1,520) |
EUR |
990 |
|
$ 1,514 |
Money Market Funds - 5.1% |
|||
Shares |
|
||
Fidelity Cash Central Fund, 0.10% (b) |
109,101,870 |
109,102 |
|
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) |
18,367,948 |
18,368 |
|
TOTAL MONEY MARKET FUNDS (Cost $127,470) |
|
||
TOTAL INVESTMENT PORTFOLIO - 100.6% (Cost $2,120,627) |
2,531,220 |
||
NET OTHER ASSETS (LIABILITIES) - (0.6)% |
(14,962) |
||
NET ASSETS - 100% |
$ 2,516,258 |
Written Options |
|||||||
Expiration Date/Exercise Price |
Number of Contracts |
Premium (000s) |
Value (000s) |
||||
Call Options |
|||||||
CIT Group, Inc. |
7/19/14 - |
362 |
$ 39 |
$ (3) |
|||
Microsoft Corp. |
7/19/14 - |
1,420 |
105 |
(69) |
|||
Stanley Black & Decker, Inc. |
7/19/14 - |
800 |
120 |
(260) |
|||
TOTAL WRITTEN OPTIONS |
$ 264 |
$ (332) |
Currency Abbreviations |
||
EUR |
- |
European Monetary Unit |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Amount is stated in United States dollars unless otherwise noted. |
(e) Security or a portion of the security is on loan at period end. |
(f) Affiliated company |
(g) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $33,483,000 or 1.3% of net assets. |
(h) Security is perpetual in nature with no stated maturity date. |
(i) Security or a portion of the security is pledged as collateral for call options written. At period end, the value of securities pledged amounted to $14,416,000. |
(j) Investment is owned by an entity that is treated as a corporation for U.S. tax purposes and is owned by the Fund. |
(k) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $21,345,000 or 0.8% of net assets. |
Additional information on each restricted holding is as follows: |
Security |
Acquisition Date |
Acquisition Cost (000s) |
Beazer Pre-Owned Rental Homes, Inc. |
5/3/12 - 10/23/12 |
$ 1,920 |
EQTY ER Holdings, LLC 12% 1/28/18 |
1/29/13 |
$ 5,667 |
EQTY ER Holdings, LLC |
1/29/13 |
$ 2,833 |
New Academy Holding Co. LLC unit |
8/1/11 |
$ 5,565 |
(l) Investments represent a non-operating interest in oil and gas wells through an entity owned by the fund that is treated as a corporation for U.S. tax purposes. |
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 |
$ 31 |
Fidelity Securities Lending Cash Central Fund |
46 |
Total |
$ 77 |
Other Affiliated Issuers |
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate |
Value, |
Purchases |
Sales |
Income |
Value, |
EQTY ER Holdings, LLC 12% 1/28/18 |
$ 5,667 |
$ - |
$ - |
$ 680 |
$ 5,667 |
EQTY ER Holdings, LLC |
2,833 |
- |
- |
- |
6,344 |
Total |
$ 8,500 |
$ - |
$ - |
$ 680 |
$ 12,011 |
Other Information |
The following is a summary of the inputs used, as of May 31, 2014, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
||||
Description |
Total |
Level 1 |
Level 2 |
Level 3 |
Investments in Securities: |
||||
Equities: |
||||
Consumer Discretionary |
$ 165,572 |
$ 158,026 |
$ - |
$ 7,546 |
Consumer Staples |
267,200 |
265,885 |
1,315 |
- |
Energy |
351,865 |
351,865 |
- |
- |
Financials |
592,751 |
575,272 |
15,691 |
1,788 |
Health Care |
201,731 |
186,006 |
15,725 |
- |
Industrials |
230,379 |
230,379 |
- |
- |
Information Technology |
280,885 |
280,885 |
- |
- |
Materials |
33,197 |
33,197 |
- |
- |
Telecommunication Services |
87,445 |
76,658 |
10,787 |
- |
Utilities |
89,653 |
79,710 |
9,943 |
- |
Corporate Bonds |
89,547 |
- |
89,547 |
- |
Other/Energy |
12,011 |
- |
12,011 |
|
Preferred Securities |
1,514 |
- |
1,514 |
- |
Money Market Funds |
127,470 |
127,470 |
- |
- |
Total Investments in Securities: |
$ 2,531,220 |
$ 2,365,353 |
$ 156,533 |
$ 9,334 |
Derivative Instruments: |
||||
Liabilities |
||||
Written Options |
$ (332) |
$ (332) |
$ - |
$ - |
Value of Derivative Instruments |
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of May 31, 2014. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements. |
Primary Risk Exposure / |
Value |
|
|
Asset |
Liability |
Equity Risk |
||
Written Options (a) |
$ - |
$ (332) |
Total Value of Derivatives |
$ - |
$ (332) |
(a) Gross value is presented in the Statement of Assets and Liabilities in the written options, at value line-item. |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited): |
United States of America |
89.5% |
United Kingdom |
3.6% |
Canada |
1.9% |
Switzerland |
1.2% |
Others (Individually Less Than 1%) |
3.8% |
|
100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Amounts in thousands (except per-share amounts) |
May 31, 2014 (Unaudited) |
|
|
|
|
Assets |
|
|
Investment in securities, at value (including securities loaned of $17,865) - See accompanying schedule: Unaffiliated issuers (cost $1,984,653) |
$ 2,391,739 |
|
Fidelity Central Funds (cost $127,470) |
127,470 |
|
Other affiliated issuers (cost $8,504) |
12,011 |
|
Total Investments (cost $2,120,627) |
|
$ 2,531,220 |
Receivable for investments sold |
|
1,739 |
Receivable for fund shares sold |
|
1,149 |
Dividends receivable |
|
6,120 |
Interest receivable |
|
887 |
Distributions receivable from Fidelity Central Funds |
|
33 |
Prepaid expenses |
|
1 |
Other receivables |
|
112 |
Total assets |
|
2,541,261 |
|
|
|
Liabilities |
|
|
Payable for investments purchased |
$ 158 |
|
Payable for fund shares redeemed |
2,597 |
|
Accrued management fee |
935 |
|
Distribution and service plan fees payable |
765 |
|
Written options, at value (premium received $264) |
332 |
|
Other affiliated payables |
486 |
|
Other payables and accrued expenses |
141 |
|
Deferred taxes |
1,221 |
|
Collateral on securities loaned, at value |
18,368 |
|
Total liabilities |
|
25,003 |
|
|
|
Net Assets |
|
$ 2,516,258 |
Net Assets consist of: |
|
|
Paid in capital |
|
$ 2,069,457 |
Undistributed net investment income |
|
9,777 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions |
|
27,721 |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies |
|
409,303 |
Net Assets |
|
$ 2,516,258 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Amounts in thousands (except per-share amounts) |
May 31, 2014 (Unaudited) |
|
|
|
|
Calculation of Maximum Offering Price Class A: |
|
$ 33.22 |
|
|
|
Maximum offering price per share (100/94.25 of $33.22) |
|
$ 35.25 |
Class T: |
|
$ 33.75 |
|
|
|
Maximum offering price per share (100/96.50 of $33.75) |
|
$ 34.97 |
Class B: |
|
$ 33.44 |
|
|
|
Class C: |
|
$ 33.37 |
|
|
|
Institutional Class: |
|
$ 34.32 |
|
|
|
Class Z: |
|
$ 34.33 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Amounts in thousands Six months ended May 31, 2014 (Unaudited) |
||
|
|
|
Investment Income |
|
|
Dividends |
|
$ 36,790 |
Special dividends |
|
8,544 |
Interest (including $680 earned from other affiliated issuers) |
|
1,931 |
Income from Fidelity Central Funds |
|
77 |
Total income |
|
47,342 |
|
|
|
Expenses |
|
|
Management fee |
$ 5,547 |
|
Transfer agent fees |
2,520 |
|
Distribution and service plan fees |
4,534 |
|
Accounting and security lending fees |
369 |
|
Custodian fees and expenses |
28 |
|
Independent trustees' compensation |
5 |
|
Registration fees |
69 |
|
Audit |
43 |
|
Legal |
5 |
|
Miscellaneous |
8 |
|
Total expenses before reductions |
13,128 |
|
Expense reductions |
(29) |
13,099 |
Net investment income (loss) |
|
34,243 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: |
|
|
Investment securities: |
|
|
Unaffiliated issuers |
133,745 |
|
Foreign currency transactions |
3 |
|
Written options |
1,505 |
|
Total net realized gain (loss) |
|
135,253 |
Change in net unrealized appreciation (depreciation) on: Investment securities |
(9,063) |
|
Assets and liabilities in foreign currencies |
(16) |
|
Written options |
588 |
|
Total change in net unrealized appreciation (depreciation) |
|
(8,491) |
Net gain (loss) |
|
126,762 |
Net increase (decrease) in net assets resulting from operations |
|
$ 161,005 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Amounts in thousands |
Six months ended |
Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) |
$ 34,243 |
$ 45,925 |
Net realized gain (loss) |
135,253 |
210,951 |
Change in net unrealized appreciation (depreciation) |
(8,491) |
276,538 |
Net increase (decrease) in net assets resulting |
161,005 |
533,414 |
Distributions to shareholders from net investment income |
(35,573) |
(43,731) |
Distributions to shareholders from net realized gain |
- |
(2,444) |
Total distributions |
(35,573) |
(46,175) |
Share transactions - net increase (decrease) |
(75,628) |
(140,174) |
Total increase (decrease) in net assets |
49,804 |
347,065 |
|
|
|
Net Assets |
|
|
Beginning of period |
2,466,454 |
2,119,389 |
End of period (including undistributed net investment income of $9,777 and undistributed net investment income of $11,107, respectively) |
$ 2,516,258 |
$ 2,466,454 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 31.60 |
$ 25.55 |
$ 22.18 |
$ 21.07 |
$ 20.26 |
$ 16.72 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E |
.46 I |
.60 |
.61 |
.42 |
.25 |
.28 |
Net realized and unrealized gain (loss) |
1.65 |
6.06 |
3.32 |
1.11 |
.81 |
3.58 |
Total from investment operations |
2.11 |
6.66 |
3.93 |
1.53 |
1.06 |
3.86 |
Distributions from net investment income |
(.49) |
(.58) |
(.56) |
(.42) |
(.25) |
(.32) |
Distributions from net realized gain |
- |
(.03) |
- |
- |
- |
- |
Total distributions |
(.49) |
(.61) |
(.56) |
(.42) |
(.25) |
(.32) |
Net asset value, end of period |
$ 33.22 |
$ 31.60 |
$ 25.55 |
$ 22.18 |
$ 21.07 |
$ 20.26 |
Total Return B, C, D |
6.75% |
26.43% |
17.90% |
7.25% |
5.26% |
23.58% |
Ratios to Average Net Assets F,H |
|
|
|
|
|
|
Expenses before reductions |
.96% A |
.98% |
1.02% |
1.03% |
1.04% |
1.07% |
Expenses net of fee waivers, if any |
.96% A |
.98% |
1.02% |
1.03% |
1.04% |
1.07% |
Expenses net of all reductions |
.96% A |
.97% |
1.01% |
1.02% |
1.04% |
1.07% |
Net investment income (loss) |
2.89% A,I |
2.07% |
2.52% |
1.82% |
1.21% |
1.67% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 798 |
$ 777 |
$ 646 |
$ 634 |
$ 719 |
$ 831 |
Portfolio turnover rate G |
41% A |
34% |
49% |
89% |
29% |
76% |
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 Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Investment income per share reflects a large, non-recurring dividends which amounted to $.11 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 2.19%.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 32.09 |
$ 25.94 |
$ 22.50 |
$ 21.37 |
$ 20.54 |
$ 16.94 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E |
.43 I |
.55 |
.57 |
.38 |
.22 |
.25 |
Net realized and unrealized gain (loss) |
1.68 |
6.15 |
3.37 |
1.13 |
.82 |
3.63 |
Total from investment operations |
2.11 |
6.70 |
3.94 |
1.51 |
1.04 |
3.88 |
Distributions from net investment income |
(.45) |
(.52) |
(.50) |
(.38) |
(.21) |
(.28) |
Distributions from net realized gain |
- |
(.03) |
- |
- |
- |
- |
Total distributions |
(.45) |
(.55) |
(.50) |
(.38) |
(.21) |
(.28) |
Net asset value, end of period |
$ 33.75 |
$ 32.09 |
$ 25.94 |
$ 22.50 |
$ 21.37 |
$ 20.54 |
Total Return B, C, D |
6.65% |
26.14% |
17.70% |
7.02% |
5.09% |
23.35% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions |
1.18% A |
1.19% |
1.21% |
1.22% |
1.23% |
1.28% |
Expenses net of fee waivers, if any |
1.18% A |
1.19% |
1.21% |
1.22% |
1.23% |
1.28% |
Expenses net of all reductions |
1.18% A |
1.18% |
1.21% |
1.21% |
1.22% |
1.27% |
Net investment income (loss) |
2.67% A,I |
1.86% |
2.32% |
1.63% |
1.03% |
1.47% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 998 |
$ 984 |
$ 854 |
$ 862 |
$ 1,108 |
$ 1,264 |
Portfolio turnover rate G |
41% A |
34% |
49% |
89% |
29% |
76% |
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 Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Investment income per share reflects a large, non-recurring dividend which amounted to $.11 per share. Excluding this non-recurring dividend>, the ratio of net investment income (loss) to average net assets would have been 1.97%.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 31.79 |
$ 25.69 |
$ 22.29 |
$ 21.16 |
$ 20.33 |
$ 16.77 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E |
.33 I |
.36 |
.42 |
.24 |
.09 |
.15 |
Net realized and unrealized gain (loss) |
1.66 |
6.10 |
3.34 |
1.12 |
.82 |
3.59 |
Total from investment operations |
1.99 |
6.46 |
3.76 |
1.36 |
.91 |
3.74 |
Distributions from net investment income |
(.34) |
(.33) |
(.36) |
(.23) |
(.08) |
(.18) |
Distributions from net realized gain |
- |
(.03) |
- |
- |
- |
- |
Total distributions |
(.34) |
(.36) |
(.36) |
(.23) |
(.08) |
(.18) |
Net asset value, end of period |
$ 33.44 |
$ 31.79 |
$ 25.69 |
$ 22.29 |
$ 21.16 |
$ 20.33 |
Total Return B, C, D |
6.32% |
25.39% |
16.97% |
6.43% |
4.49% |
22.59% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions |
1.80% A |
1.80% |
1.80% |
1.81% |
1.82% |
1.84% |
Expenses net of fee waivers, if any |
1.80% A |
1.80% |
1.80% |
1.81% |
1.82% |
1.84% |
Expenses net of all reductions |
1.79% A |
1.79% |
1.80% |
1.80% |
1.81% |
1.84% |
Net investment income (loss) |
2.05% A,I |
1.26% |
1.73% |
1.04% |
.44% |
.90% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 22 |
$ 27 |
$ 31 |
$ 42 |
$ 63 |
$ 88 |
Portfolio turnover rate G |
41% A |
34% |
49% |
89% |
29% |
76% |
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 Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Investment income per share reflects a large, non-recurring dividend which amounted to $.11 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.36%.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 31.73 |
$ 25.66 |
$ 22.27 |
$ 21.16 |
$ 20.34 |
$ 16.78 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E |
.34 I |
.38 |
.43 |
.25 |
.09 |
.16 |
Net realized and unrealized gain (loss) |
1.66 |
6.09 |
3.33 |
1.11 |
.82 |
3.59 |
Total from investment operations |
2.00 |
6.47 |
3.76 |
1.36 |
.91 |
3.75 |
Distributions from net investment income |
(.36) |
(.37) |
(.37) |
(.25) |
(.09) |
(.19) |
Distributions from net realized gain |
- |
(.03) |
- |
- |
- |
- |
Total distributions |
(.36) |
(.40) |
(.37) |
(.25) |
(.09) |
(.19) |
Net asset value, end of period |
$ 33.37 |
$ 31.73 |
$ 25.66 |
$ 22.27 |
$ 21.16 |
$ 20.34 |
Total Return B, C, D |
6.37% |
25.46% |
17.03% |
6.40% |
4.50% |
22.63% |
Ratios to Average Net Assets F, H |
|
|
|
|
|
|
Expenses before reductions |
1.72% A |
1.74% |
1.77% |
1.78% |
1.80% |
1.83% |
Expenses net of fee waivers, if any |
1.72% A |
1.74% |
1.77% |
1.78% |
1.80% |
1.83% |
Expenses net of all reductions |
1.72% A |
1.73% |
1.77% |
1.77% |
1.79% |
1.83% |
Net investment income (loss) |
2.13% A,I |
1.32% |
1.76% |
1.06% |
.46% |
.91% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 207 |
$ 195 |
$ 143 |
$ 134 |
$ 149 |
$ 165 |
Portfolio turnover rate G |
41% A |
34% |
49% |
89% |
29% |
76% |
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 Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Investment income per share reflects a large, non-recurring dividend which amounted to $.11 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.43%.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 32.62 |
$ 26.36 |
$ 22.86 |
$ 21.70 |
$ 20.85 |
$ 17.20 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D |
.52 H |
.70 |
.70 |
.50 |
.32 |
.34 |
Net realized and unrealized gain (loss) |
1.71 |
6.24 |
3.43 |
1.14 |
.83 |
3.68 |
Total from investment operations |
2.23 |
6.94 |
4.13 |
1.64 |
1.15 |
4.02 |
Distributions from net investment income |
(.53) |
(.65) |
(.63) |
(.48) |
(.30) |
(.37) |
Distributions from net realized gain |
- |
(.03) |
- |
- |
- |
- |
Total distributions |
(.53) |
(.68) |
(.63) |
(.48) |
(.30) |
(.37) |
Net asset value, end of period |
$ 34.32 |
$ 32.62 |
$ 26.36 |
$ 22.86 |
$ 21.70 |
$ 20.85 |
Total Return B, C |
6.91% |
26.72% |
18.27% |
7.55% |
5.56% |
23.90% |
Ratios to Average Net Assets E, G |
|
|
|
|
|
|
Expenses before reductions |
.70% A |
.72% |
.73% |
.74% |
.77% |
.79% |
Expenses net of fee waivers, if any |
.70% A |
.72% |
.73% |
.74% |
.77% |
.79% |
Expenses net of all reductions |
.70% A |
.71% |
.73% |
.73% |
.76% |
.78% |
Net investment income (loss) |
3.15% A,H |
2.34% |
2.80% |
2.10% |
1.49% |
1.96% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 491 |
$ 483 |
$ 445 |
$ 360 |
$ 464 |
$ 1,127 |
Portfolio turnover rate F |
41% A |
34% |
49% |
89% |
29% |
76% |
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Investment income per share reflects a large, non-recurring dividend which amounted to $.11 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 2.45%.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended |
Year ended |
|
(Unaudited) |
2013 G |
Selected Per-Share Data |
|
|
Net asset value, beginning of period |
$ 32.63 |
$ 31.44 |
Income from Investment Operations |
|
|
Net investment income (loss) D |
.55 I |
.23 |
Net realized and unrealized gain (loss) |
1.70 |
1.12 |
Total from investment operations |
2.25 |
1.35 |
Distributions from net investment income |
(.55) |
(.16) |
Net asset value, end of period |
$ 34.33 |
$ 32.63 |
Total Return B, C |
7.00% |
4.30% |
Ratios to Average Net Assets E, H |
|
|
Expenses before reductions |
.54% A |
.54% A |
Expenses net of fee waivers, if any |
.54% A |
.54% A |
Expenses net of all reductions |
.54% A |
.54% A |
Net investment income (loss) |
3.31% A,I |
2.37% A |
Supplemental Data |
|
|
Net assets, end of period (000s omitted) |
$ 112 |
$ 104 |
Portfolio turnover rate F |
41% A |
34% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period August 13, 2013 (commencement of sale of shares) to November 30, 2013.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Investment income per share reflects a large, non-recurring dividend which amounted to $.11 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 2.61%.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
For the period ended May 31, 2014 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor® Equity Income Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, Institutional Class and Class Z shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Valuation - continued
approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds and preferred securities are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Exchange-traded options are valued using the last sale price or, in the absence of a sale, the last offering price and are categorized as Level 1 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of May 31, 2014, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
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. One of the Fund's investments, EQTY ER Holdings, LLC, is owned through an entity that is treated as a corporation for U.S. tax purposes and may be subject to federal and state taxes upon disposition. The tax liability may differ materially depending on conditions when the investment is disposed. At period end, the estimated tax liability for this investment is presented as "Deferred taxes" in the Statement of Assets and Liabilities and included in "Change in net unrealized appreciation (depreciation) on investment securities" in the Statement of Operations.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, partnerships, market discount, equity-debt classifications, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation |
$ 436,501 |
Gross unrealized depreciation |
(34,771) |
Net unrealized appreciation (depreciation) on securities and other investments |
$ 401,730 |
|
|
Tax cost |
$ 2,129,490 |
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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
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.
Fiscal year of expiration |
|
2017 |
$ (100,096) |
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including options. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
The Fund used derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
The Fund's use of derivatives increased or decreased its exposure to the following risk:
Equity Risk |
Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
Semiannual Report
4. Derivative Instruments - continued
Risk Exposures and the Use of Derivative Instruments - continued
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Counterparty credit risk related to exchange-traded options may be mitigated by the protection provided by the exchange on which they trade.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
Options. Options give the purchaser the right, but not the obligation, to buy (call) or sell (put) an underlying security or financial instrument at an agreed exercise or strike price between or on certain dates. Options obligate the seller (writer) to buy (put) or sell (call) an underlying instrument at the exercise or strike price or cash settle an underlying derivative instrument if the holder exercises the option on or before the expiration date.
The Fund used exchange-traded written covered call options to manage its exposure to the market. When the Fund writes a covered call option, the Fund holds the underlying instrument which must be delivered to the holder upon the exercise of the option.
Upon entering into a written options contract, the Fund will receive a premium. Premiums received are reflected as a liability on the Statement of Assets and Liabilities. Options are valued daily and any unrealized appreciation (depreciation) is reflected on the Statement of Assets and Liabilities. When a written option is exercised, the premium is added to the proceeds from the sale of the underlying instrument in determining the gain or loss realized on that investment. When an option is closed the Fund will realize a gain or loss depending on whether the proceeds or amount paid for the closing sale transaction are greater or less than the premium received. When an option expires, gains and losses are realized to the extent of premiums received. The net realized gain (loss) on closed and expired written options and the change in net unrealized appreciation (depreciation) on written options are reflected separately on the Statement of Operations.
Writing call options tends to decrease exposure to the underlying instrument and risk of loss is the change in value in excess of the premium received.
Any open options at period end are presented in the Schedule of Investments under the caption "Written Options" and are representative of volume of activity during the period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
4. Derivative Instruments - continued
Options - continued
During the period, the Fund recognized net realized gain (loss) of $1,505 and a change in net unrealized appreciation (depreciation) of $588 related to its investment in written options. This amount is included in the Statement of Operations.
The following is a summary of the Fund's written options activity:
Written Options |
Number of |
Amount of |
Outstanding at beginning of period |
13 |
$ 831 |
Options Opened |
35 |
2,747 |
Options Exercised |
(18) |
(1,450) |
Options Closed |
(14) |
(877) |
Options Expired |
(13) |
(987) |
Outstanding at end of period |
3 |
$ 264 |
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $492,345 and $574,742, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .20% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .45% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services.
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan Fees - continued
For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
|
Distribution |
Service |
Total Fees |
Retained |
Class A |
-% |
.25% |
$ 974 |
$ 20 |
Class T |
.25% |
.25% |
2,439 |
21 |
Class B |
.75% |
.25% |
123 |
93 |
Class C |
.75% |
.25% |
998 |
116 |
|
|
|
$ 4,534 |
$ 250 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
|
Retained |
Class A |
$ 66 |
Class T |
20 |
Class B* |
7 |
Class C* |
9 |
|
$ 102 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales
are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund, except for Class Z. FIIOC receives an asset-based fee of Class Z's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
For the period, transfer agent fees for each class were as follows:
|
Amount |
% of |
Class A |
$ 843 |
.22 |
Class T |
912 |
.19 |
Class B |
37 |
.30 |
Class C |
225 |
.23 |
Institutional Class |
503 |
.21 |
Class Z |
-** |
.05 |
|
$ 2,520 |
|
* Annualized
** Amount represents twenty-four dollars.
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $1 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $2 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Semiannual Report
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $46. During the period, there were no securities loaned to FCM.
9. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $29 for the period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
|
Six months ended |
Year ended |
From net investment income |
|
|
Class A |
$ 11,878 |
$ 14,351 |
Class T |
13,497 |
16,481 |
Class B |
268 |
359 |
Class C |
2,250 |
2,111 |
Institutional Class |
7,678 |
10,429 |
Class Z |
2 |
-* |
Total |
$ 35,573 |
$ 43,731 |
From net realized gain |
|
|
Class A |
$ - |
$ 754 |
Class T |
- |
982 |
Class B |
- |
36 |
Class C |
- |
167 |
Institutional Class |
- |
505 |
Total |
$ - |
$ 2,444 |
A Distributions for Class Z are for the period November 30, 2013 (commencement of sale of shares) to November 30, 2013.
* Amount represents four hundred ninety-six dollars.
11. Share Transactions.
Transactions for each class of shares were as follows:
|
Shares |
Dollars |
||
|
Six months ended |
Year ended |
Six months ended |
Year ended |
Class A |
|
|
|
|
Shares sold |
1,638 |
3,676 |
$ 52,192 |
$ 106,691 |
Reinvestment of distributions |
347 |
505 |
10,973 |
13,926 |
Shares redeemed |
(2,583) |
(4,869) |
(82,531) |
(139,536) |
Net increase (decrease) |
(598) |
(688) |
$ (19,366) |
$ (18,919) |
Class T |
|
|
|
|
Shares sold |
1,708 |
3,948 |
$ 55,411 |
$ 115,563 |
Reinvestment of distributions |
405 |
601 |
12,999 |
16,778 |
Shares redeemed |
(3,218) |
(6,787) |
(103,853) |
(197,631) |
Net increase (decrease) |
(1,105) |
(2,238) |
$ (35,443) |
$ (65,290) |
Class B |
|
|
|
|
Shares sold |
14 |
42 |
$ 450 |
$ 1,216 |
Reinvestment of distributions |
8 |
13 |
244 |
359 |
Shares redeemed |
(208) |
(423) |
(6,694) |
(12,147) |
Net increase (decrease) |
(186) |
(368) |
$ (6,000) |
$ (10,572) |
Semiannual Report
11. Share Transactions - continued
|
Shares |
Dollars |
||
|
Six months ended |
Year ended |
Six months ended |
Year ended |
Class C |
|
|
|
|
Shares sold |
550 |
1,636 |
$ 17,608 |
$ 48,035 |
Reinvestment of distributions |
62 |
72 |
1,976 |
1,992 |
Shares redeemed |
(539) |
(1,139) |
(17,325) |
(33,153) |
Net increase (decrease) |
73 |
569 |
$ 2,259 |
$ 16,874 |
Institutional Class |
|
|
|
|
Shares sold |
2,084 |
2,274 |
$ 68,480 |
$ 67,514 |
Reinvestment of distributions |
225 |
369 |
7,349 |
10,496 |
Shares redeemed |
(2,804) |
(4,733) |
(92,909) |
(140,377) |
Net increase (decrease) |
(495) |
(2,090) |
$ (17,080) |
$ (62,367) |
Class Z |
|
|
|
|
Shares sold |
- |
3 |
$ - |
$ 100 |
Reinvestment of distributions |
-* |
-** |
2 |
-*** |
Net increase (decrease) |
- |
3 |
$ 2 |
$ 100 |
A Share transactions for Class Z are for the period August 13, 2013 (commencement of sale of shares) to November 30, 2013.
* Amount represents fifty-four shares.
** Amount represents seventy-two shares.
*** Amount represents four hundred ninety-six dollars.
12. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
JPMorgan Chase Bank
New York, NY
(Fidelity Investment logo)(registered trademark)
EPIZ-USAN-0714 1.9585509.100
Fidelity Advisor®
Series Growth Opportunities Fund
Semiannual Report
May 31, 2014
(Fidelity Cover Art)
Shareholder Expense Example |
An example of shareholder expenses. |
|
Investment Changes |
A summary of major shifts in the fund's investments over the past six months. |
|
Investments |
A complete list of the fund's investments with their market values. |
|
Financial Statements |
Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
|
Notes |
Notes to the Financial Statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
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 (December 1, 2013 to May 31, 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 |
Beginning |
Ending |
Expenses Paid |
Actual |
.77% |
$ 1,000.00 |
$ 1,042.50 |
$ 3.92 |
Hypothetical A |
|
$ 1,000.00 |
$ 1,021.09 |
$ 3.88 |
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 182/365 (to reflect the one-half year period).
Semiannual Report
Top Ten Stocks as of May 31, 2014 |
||
|
% of fund's |
% of fund's net assets |
Apple, Inc. |
4.5 |
4.3 |
salesforce.com, Inc. |
3.6 |
3.7 |
Regeneron Pharmaceuticals, Inc. |
2.9 |
3.0 |
Google, Inc. Class A |
2.6 |
4.9 |
Google, Inc. Class C |
2.5 |
0.0 |
Facebook, Inc. Class A |
2.1 |
2.2 |
Keurig Green Mountain, Inc. |
1.9 |
0.8 |
Comcast Corp. Class A |
1.7 |
1.8 |
Visa, Inc. Class A |
1.5 |
1.5 |
American Express Co. |
1.5 |
1.1 |
|
24.8 |
|
Top Five Market Sectors as of May 31, 2014 |
||
|
% of fund's |
% of fund's net assets |
Information Technology |
33.8 |
31.5 |
Health Care |
16.9 |
15.6 |
Consumer Discretionary |
16.7 |
18.1 |
Consumer Staples |
10.8 |
9.9 |
Industrials |
8.4 |
7.3 |
Asset Allocation (% of fund's net assets) |
|||||||
As of May 31, 2014* |
As of November 30, 2013** |
||||||
Stocks 98.9% |
|
Stocks and |
|
||||
Short-Term |
|
Short-Term |
|
||||
* Foreign investments |
5.6% |
|
** Foreign investments |
5.1% |
|
Semiannual Report
Showing Percentage of Net Assets
Common Stocks - 98.9% |
|||
Shares |
Value |
||
CONSUMER DISCRETIONARY - 16.7% |
|||
Auto Components - 0.2% |
|||
Tenneco, Inc. (a) |
30,300 |
$ 1,931,625 |
|
Automobiles - 0.6% |
|||
Tesla Motors, Inc. (a)(d) |
27,100 |
5,630,567 |
|
Hotels, Restaurants & Leisure - 2.8% |
|||
Arcos Dorados Holdings, Inc. Class A (d) |
59,800 |
532,220 |
|
Buffalo Wild Wings, Inc. (a) |
14,400 |
2,080,944 |
|
Chipotle Mexican Grill, Inc. (a) |
5,800 |
3,173,122 |
|
Chuy's Holdings, Inc. (a) |
36,000 |
1,176,120 |
|
Dunkin' Brands Group, Inc. |
49,300 |
2,206,668 |
|
Las Vegas Sands Corp. |
35,200 |
2,693,504 |
|
McDonald's Corp. |
35,700 |
3,621,051 |
|
Panera Bread Co. Class A (a) |
15,400 |
2,365,594 |
|
Starbucks Corp. |
79,700 |
5,837,228 |
|
Starwood Hotels & Resorts Worldwide, Inc. |
15,200 |
1,213,720 |
|
|
24,900,171 |
||
Household Durables - 1.3% |
|||
Harman International Industries, Inc. |
37,700 |
3,959,631 |
|
Lennar Corp. Class A |
90,900 |
3,717,810 |
|
SodaStream International Ltd. (a) |
18,900 |
705,915 |
|
Toll Brothers, Inc. (a) |
60,200 |
2,180,444 |
|
Tupperware Brands Corp. |
14,700 |
1,230,684 |
|
|
11,794,484 |
||
Internet & Catalog Retail - 1.6% |
|||
Amazon.com, Inc. (a) |
29,200 |
9,126,460 |
|
JD.com, Inc. sponsored ADR |
6,500 |
162,500 |
|
priceline.com, Inc. (a) |
3,500 |
4,475,205 |
|
|
13,764,165 |
||
Media - 3.7% |
|||
AMC Networks, Inc. Class A (a) |
50,700 |
3,137,316 |
|
Comcast Corp. Class A |
290,700 |
15,174,540 |
|
DIRECTV (a) |
22,000 |
1,813,680 |
|
IMAX Corp. (a) |
118,700 |
3,113,501 |
|
Liberty Global PLC Class A (a) |
19,500 |
877,890 |
|
Lions Gate Entertainment Corp. (d) |
65,600 |
1,714,128 |
|
News Corp. Class A (a) |
10,500 |
179,130 |
|
The Walt Disney Co. |
32,700 |
2,747,127 |
|
Twenty-First Century Fox, Inc. Class A |
119,300 |
4,224,413 |
|
|
32,981,725 |
||
Common Stocks - continued |
|||
Shares |
Value |
||
CONSUMER DISCRETIONARY - continued |
|||
Multiline Retail - 0.2% |
|||
Target Corp. |
24,900 |
$ 1,413,324 |
|
Specialty Retail - 2.8% |
|||
Bed Bath & Beyond, Inc. (a) |
17,300 |
1,052,705 |
|
Cabela's, Inc. Class A (a)(d) |
16,400 |
1,004,172 |
|
CarMax, Inc. (a) |
56,200 |
2,490,222 |
|
DSW, Inc. Class A |
35,100 |
879,255 |
|
Five Below, Inc. (a) |
27,500 |
995,500 |
|
GNC Holdings, Inc. |
37,500 |
1,384,500 |
|
Home Depot, Inc. |
80,100 |
6,426,423 |
|
Lumber Liquidators Holdings, Inc. (a)(d) |
90,500 |
7,030,040 |
|
TJX Companies, Inc. |
67,700 |
3,686,265 |
|
|
24,949,082 |
||
Textiles, Apparel & Luxury Goods - 3.5% |
|||
Fossil Group, Inc. (a) |
38,800 |
4,064,688 |
|
Kate Spade & Co. (a) |
50,400 |
1,835,064 |
|
lululemon athletica, Inc. (a)(d) |
236,200 |
10,541,606 |
|
Michael Kors Holdings Ltd. (a) |
60,900 |
5,747,742 |
|
NIKE, Inc. Class B |
39,900 |
3,068,709 |
|
Prada SpA |
126,300 |
944,853 |
|
Skechers U.S.A., Inc. Class A (sub. vtg.) (a) |
35,400 |
1,575,300 |
|
Steven Madden Ltd. (a) |
63,800 |
2,032,668 |
|
Under Armour, Inc. Class A (sub. vtg.) (a) |
24,800 |
1,259,592 |
|
|
31,070,222 |
||
TOTAL CONSUMER DISCRETIONARY |
148,435,365 |
||
CONSUMER STAPLES - 10.8% |
|||
Beverages - 1.7% |
|||
Monster Beverage Corp. (a) |
37,500 |
2,601,750 |
|
PepsiCo, Inc. |
47,900 |
4,231,007 |
|
SABMiller PLC |
26,200 |
1,454,073 |
|
The Coca-Cola Co. |
172,700 |
7,065,157 |
|
|
15,351,987 |
||
Food & Staples Retailing - 3.2% |
|||
Costco Wholesale Corp. |
67,000 |
7,773,340 |
|
CVS Caremark Corp. |
99,300 |
7,777,176 |
|
Fresh Market, Inc. (a)(d) |
14,900 |
456,685 |
|
Wal-Mart Stores, Inc. |
62,100 |
4,767,417 |
|
Common Stocks - continued |
|||
Shares |
Value |
||
CONSUMER STAPLES - continued |
|||
Food & Staples Retailing - continued |
|||
Walgreen Co. |
73,200 |
$ 5,263,812 |
|
Whole Foods Market, Inc. |
52,300 |
1,999,952 |
|
|
28,038,382 |
||
Food Products - 2.4% |
|||
Bunge Ltd. |
16,300 |
1,266,673 |
|
Keurig Green Mountain, Inc. |
148,900 |
16,792,942 |
|
Mead Johnson Nutrition Co. Class A |
24,700 |
2,209,909 |
|
Mondelez International, Inc. |
33,200 |
1,248,984 |
|
|
21,518,508 |
||
Household Products - 0.9% |
|||
Procter & Gamble Co. |
71,300 |
5,760,327 |
|
Svenska Cellulosa AB (SCA) (B Shares) |
84,300 |
2,345,586 |
|
|
8,105,913 |
||
Personal Products - 0.4% |
|||
Avon Products, Inc. |
27,400 |
391,546 |
|
Herbalife Ltd. |
47,500 |
3,079,425 |
|
|
3,470,971 |
||
Tobacco - 2.2% |
|||
Altria Group, Inc. |
206,400 |
8,577,984 |
|
Japan Tobacco, Inc. |
9,400 |
319,303 |
|
Lorillard, Inc. |
49,800 |
3,096,066 |
|
Philip Morris International, Inc. |
80,500 |
7,127,470 |
|
|
19,120,823 |
||
TOTAL CONSUMER STAPLES |
95,606,584 |
||
ENERGY - 5.0% |
|||
Energy Equipment & Services - 1.7% |
|||
FMC Technologies, Inc. (a) |
25,500 |
1,480,530 |
|
Halliburton Co. |
30,800 |
1,990,912 |
|
National Oilwell Varco, Inc. |
21,900 |
1,792,953 |
|
Schlumberger Ltd. |
92,600 |
9,634,104 |
|
|
14,898,499 |
||
Oil, Gas & Consumable Fuels - 3.3% |
|||
Anadarko Petroleum Corp. |
18,900 |
1,944,054 |
|
Cabot Oil & Gas Corp. |
52,600 |
1,906,224 |
|
Chesapeake Energy Corp. |
37,400 |
1,074,128 |
|
Concho Resources, Inc. (a) |
18,600 |
2,451,480 |
|
Continental Resources, Inc. (a) |
23,100 |
3,242,316 |
|
Common Stocks - continued |
|||
Shares |
Value |
||
ENERGY - continued |
|||
Oil, Gas & Consumable Fuels - continued |
|||
EOG Resources, Inc. |
11,200 |
$ 1,184,960 |
|
Exxon Mobil Corp. |
200 |
20,106 |
|
Hess Corp. |
35,600 |
3,250,280 |
|
Marathon Petroleum Corp. |
8,200 |
732,998 |
|
Noble Energy, Inc. |
17,300 |
1,246,811 |
|
Occidental Petroleum Corp. |
53,900 |
5,373,291 |
|
PDC Energy, Inc. (a) |
12,700 |
815,213 |
|
Peabody Energy Corp. |
38,500 |
622,160 |
|
Phillips 66 Co. |
9,700 |
822,463 |
|
Pioneer Natural Resources Co. |
6,800 |
1,429,088 |
|
Range Resources Corp. |
4,300 |
399,685 |
|
Southwestern Energy Co. (a) |
21,200 |
963,964 |
|
Valero Energy Corp. |
38,800 |
2,174,740 |
|
|
29,653,961 |
||
TOTAL ENERGY |
44,552,460 |
||
FINANCIALS - 4.4% |
|||
Banks - 0.9% |
|||
Bank of America Corp. |
74,600 |
1,129,444 |
|
Citigroup, Inc. |
27,200 |
1,293,904 |
|
JPMorgan Chase & Co. |
51,900 |
2,884,083 |
|
Signature Bank (a) |
6,900 |
799,158 |
|
Wells Fargo & Co. |
33,100 |
1,680,818 |
|
|
7,787,407 |
||
Capital Markets - 0.8% |
|||
BlackRock, Inc. Class A |
6,100 |
1,859,890 |
|
Charles Schwab Corp. |
145,600 |
3,670,576 |
|
Goldman Sachs Group, Inc. |
6,400 |
1,022,784 |
|
T. Rowe Price Group, Inc. |
7,900 |
644,087 |
|
|
7,197,337 |
||
Consumer Finance - 2.3% |
|||
American Express Co. |
142,100 |
13,002,150 |
|
Discover Financial Services |
121,100 |
7,160,643 |
|
|
20,162,793 |
||
Diversified Financial Services - 0.2% |
|||
BM&F BOVESPA SA |
210,800 |
1,033,158 |
|
CME Group, Inc. |
5,700 |
410,400 |
|
|
1,443,558 |
||
Common Stocks - continued |
|||
Shares |
Value |
||
FINANCIALS - continued |
|||
Real Estate Investment Trusts - 0.1% |
|||
Simon Property Group, Inc. |
7,100 |
$ 1,181,866 |
|
Washington Prime Group, Inc. (a) |
3,550 |
70,610 |
|
|
1,252,476 |
||
Real Estate Management & Development - 0.1% |
|||
The St. Joe Co. (a) |
29,700 |
699,138 |
|
TOTAL FINANCIALS |
38,542,709 |
||
HEALTH CARE - 16.9% |
|||
Biotechnology - 11.7% |
|||
ACADIA Pharmaceuticals, Inc. (a) |
49,135 |
1,014,638 |
|
Alexion Pharmaceuticals, Inc. (a) |
36,100 |
6,004,152 |
|
Alkermes PLC (a) |
11,000 |
503,910 |
|
Alnylam Pharmaceuticals, Inc. (a) |
45,966 |
2,725,324 |
|
Amarin Corp. PLC ADR (a)(d) |
64,500 |
90,945 |
|
Amgen, Inc. |
61,100 |
7,086,989 |
|
Biogen Idec, Inc. (a) |
12,300 |
3,928,251 |
|
BioMarin Pharmaceutical, Inc. (a) |
35,600 |
2,063,376 |
|
Bluebird Bio, Inc. |
22,200 |
513,264 |
|
Celgene Corp. (a) |
14,600 |
2,234,238 |
|
Celldex Therapeutics, Inc. (a) |
56,400 |
824,004 |
|
Cepheid, Inc. (a) |
36,300 |
1,635,315 |
|
Clovis Oncology, Inc. (a) |
4,300 |
220,203 |
|
Exelixis, Inc. (a) |
80,879 |
267,709 |
|
Geron Corp. (a) |
513,500 |
1,068,080 |
|
Gilead Sciences, Inc. (a) |
148,600 |
12,067,806 |
|
ImmunoGen, Inc. (a)(d) |
363,900 |
4,301,298 |
|
Immunomedics, Inc. (a) |
1,700 |
5,661 |
|
Insmed, Inc. (a) |
92,800 |
1,219,392 |
|
Intercept Pharmaceuticals, Inc. (a) |
1,400 |
331,254 |
|
InterMune, Inc. (a) |
27,800 |
1,101,436 |
|
Ironwood Pharmaceuticals, Inc. Class A (a) |
45,018 |
644,658 |
|
Isis Pharmaceuticals, Inc. (a) |
19,005 |
555,326 |
|
Lexicon Pharmaceuticals, Inc. (a)(d) |
1,948,900 |
2,572,548 |
|
Merrimack Pharmaceuticals, Inc. (a) |
163,000 |
1,266,510 |
|
NPS Pharmaceuticals, Inc. (a) |
1,400 |
43,582 |
|
Ophthotech Corp. |
15,700 |
638,990 |
|
Prothena Corp. PLC (a) |
1,229 |
25,588 |
|
Receptos, Inc. |
23,800 |
708,288 |
|
Regeneron Pharmaceuticals, Inc. (a) |
84,700 |
25,999,512 |
|
Rigel Pharmaceuticals, Inc. (a) |
181,900 |
598,451 |
|
Common Stocks - continued |
|||
Shares |
Value |
||
HEALTH CARE - continued |
|||
Biotechnology - continued |
|||
Seattle Genetics, Inc. (a)(d) |
386,900 |
$ 12,910,853 |
|
Swedish Orphan Biovitrum AB (a) |
106,000 |
1,351,928 |
|
Theravance, Inc. (a)(d) |
86,000 |
2,463,900 |
|
Transition Therapeutics, Inc. (a) |
178,600 |
909,074 |
|
uniQure B.V. |
1,100 |
9,515 |
|
Vertex Pharmaceuticals, Inc. (a) |
18,700 |
1,351,262 |
|
XOMA Corp. (a) |
534,100 |
2,211,174 |
|
|
103,468,404 |
||
Health Care Equipment & Supplies - 0.8% |
|||
Abbott Laboratories |
23,700 |
948,237 |
|
Align Technology, Inc. (a) |
15,600 |
851,916 |
|
Baxter International, Inc. |
10,500 |
781,305 |
|
Cyberonics, Inc. (a) |
18,000 |
1,094,400 |
|
Insulet Corp. (a) |
17,991 |
659,010 |
|
Steris Corp. |
46,100 |
2,467,272 |
|
|
6,802,140 |
||
Health Care Providers & Services - 0.9% |
|||
Accretive Health, Inc. (a)(d) |
158,100 |
1,184,169 |
|
BioScrip, Inc. (a)(d) |
202,700 |
1,591,195 |
|
Catamaran Corp. (a) |
17,100 |
753,359 |
|
Express Scripts Holding Co. (a) |
34,100 |
2,437,127 |
|
McKesson Corp. |
11,100 |
2,105,004 |
|
|
8,070,854 |
||
Health Care Technology - 0.6% |
|||
Allscripts Healthcare Solutions, Inc. (a) |
193,900 |
2,858,086 |
|
athenahealth, Inc. (a)(d) |
22,000 |
2,792,020 |
|
Castlight Health, Inc. Class B (d) |
8,400 |
127,512 |
|
|
5,777,618 |
||
Life Sciences Tools & Services - 0.8% |
|||
Illumina, Inc. (a) |
44,300 |
7,010,475 |
|
Pharmaceuticals - 2.1% |
|||
AbbVie, Inc. |
40,800 |
2,216,664 |
|
Actavis PLC (a) |
12,000 |
2,538,480 |
|
Allergan, Inc. |
20,800 |
3,483,168 |
|
Auxilium Pharmaceuticals, Inc. (a) |
59,800 |
1,338,324 |
|
Bristol-Myers Squibb Co. |
44,900 |
2,233,326 |
|
Hospira, Inc. (a) |
15,800 |
776,886 |
|
Jazz Pharmaceuticals PLC (a) |
3,500 |
496,510 |
|
Johnson & Johnson |
10,000 |
1,014,600 |
|
Common Stocks - continued |
|||
Shares |
Value |
||
HEALTH CARE - continued |
|||
Pharmaceuticals - continued |
|||
Mylan, Inc. (a) |
14,400 |
$ 717,696 |
|
Questcor Pharmaceuticals, Inc. (d) |
14,300 |
1,288,859 |
|
Revance Therapeutics, Inc. |
4,400 |
138,556 |
|
Valeant Pharmaceuticals International (Canada) (a) |
15,500 |
2,034,741 |
|
XenoPort, Inc. (a) |
47,400 |
191,970 |
|
|
18,469,780 |
||
TOTAL HEALTH CARE |
149,599,271 |
||
INDUSTRIALS - 8.4% |
|||
Aerospace & Defense - 0.8% |
|||
Honeywell International, Inc. |
33,200 |
3,092,580 |
|
The Boeing Co. |
32,000 |
4,328,000 |
|
|
7,420,580 |
||
Air Freight & Logistics - 1.0% |
|||
FedEx Corp. |
20,100 |
2,897,616 |
|
United Parcel Service, Inc. Class B |
56,100 |
5,827,668 |
|
|
8,725,284 |
||
Airlines - 1.9% |
|||
Delta Air Lines, Inc. |
41,600 |
1,660,256 |
|
Southwest Airlines Co. |
144,600 |
3,824,670 |
|
Spirit Airlines, Inc. (a) |
80,000 |
4,725,600 |
|
United Continental Holdings, Inc. (a) |
148,200 |
6,575,634 |
|
|
16,786,160 |
||
Construction & Engineering - 0.2% |
|||
Quanta Services, Inc. (a) |
53,200 |
1,806,140 |
|
Electrical Equipment - 0.3% |
|||
Acuity Brands, Inc. |
23,847 |
2,993,037 |
|
Industrial Conglomerates - 1.4% |
|||
3M Co. |
18,400 |
2,622,920 |
|
Danaher Corp. |
83,500 |
6,548,905 |
|
General Electric Co. |
69,200 |
1,853,868 |
|
Roper Industries, Inc. |
10,300 |
1,459,304 |
|
|
12,484,997 |
||
Machinery - 0.5% |
|||
Caterpillar, Inc. |
19,600 |
2,003,708 |
|
Cummins, Inc. |
7,800 |
1,192,854 |
|
Common Stocks - continued |
|||
Shares |
Value |
||
INDUSTRIALS - continued |
|||
Machinery - continued |
|||
ITT Corp. |
6,300 |
$ 275,184 |
|
Xylem, Inc. |
16,600 |
619,180 |
|
|
4,090,926 |
||
Professional Services - 0.0% |
|||
Paylocity Holding Corp. (a) |
1,000 |
19,470 |
|
Road & Rail - 2.3% |
|||
CSX Corp. |
84,500 |
2,484,300 |
|
Hertz Global Holdings, Inc. (a) |
162,700 |
4,802,904 |
|
J.B. Hunt Transport Services, Inc. |
28,800 |
2,236,608 |
|
Kansas City Southern |
2,800 |
301,056 |
|
Union Pacific Corp. |
53,100 |
10,581,237 |
|
|
20,406,105 |
||
TOTAL INDUSTRIALS |
74,732,699 |
||
INFORMATION TECHNOLOGY - 33.8% |
|||
Communications Equipment - 1.9% |
|||
Infinera Corp. (a)(d) |
399,900 |
3,639,090 |
|
QUALCOMM, Inc. |
145,300 |
11,689,385 |
|
ViaSat, Inc. (a) |
21,600 |
1,171,368 |
|
|
16,499,843 |
||
Electronic Equipment & Components - 0.5% |
|||
IPG Photonics Corp. (a) |
23,500 |
1,482,850 |
|
Trimble Navigation Ltd. (a) |
83,400 |
3,008,238 |
|
|
4,491,088 |
||
Internet Software & Services - 10.1% |
|||
Akamai Technologies, Inc. (a) |
46,600 |
2,532,244 |
|
Cornerstone OnDemand, Inc. (a) |
64,900 |
2,608,331 |
|
eBay, Inc. (a) |
135,800 |
6,889,134 |
|
Facebook, Inc. Class A (a) |
300,900 |
19,046,970 |
|
Google, Inc.: |
|
|
|
Class A (a) |
39,700 |
22,694,505 |
|
Class C (a) |
39,700 |
22,270,906 |
|
LinkedIn Corp. (a) |
4,900 |
784,441 |
|
Opower, Inc. |
1,400 |
23,310 |
|
Qihoo 360 Technology Co. Ltd. ADR (a) |
28,700 |
2,635,521 |
|
Rackspace Hosting, Inc. (a) |
35,600 |
1,299,044 |
|
Tencent Holdings Ltd. |
201,000 |
2,825,892 |
|
Trulia, Inc. (a)(d) |
22,900 |
885,085 |
|
Common Stocks - continued |
|||
Shares |
Value |
||
INFORMATION TECHNOLOGY - continued |
|||
Internet Software & Services - continued |
|||
Twitter, Inc. (d) |
28,800 |
$ 934,272 |
|
Web.com Group, Inc. (a) |
116,200 |
4,001,928 |
|
Wix.com Ltd. (a) |
19,800 |
353,628 |
|
|
89,785,211 |
||
IT Services - 3.6% |
|||
Cognizant Technology Solutions Corp. Class A (a) |
68,000 |
3,305,480 |
|
IBM Corp. |
29,200 |
5,383,312 |
|
MasterCard, Inc. Class A |
129,400 |
9,892,630 |
|
Visa, Inc. Class A |
63,300 |
13,598,739 |
|
|
32,180,161 |
||
Semiconductors & Semiconductor Equipment - 4.7% |
|||
Applied Materials, Inc. |
53,700 |
1,084,203 |
|
Applied Micro Circuits Corp. (a) |
373,200 |
3,358,800 |
|
Broadcom Corp. Class A |
38,000 |
1,211,060 |
|
Cavium, Inc. (a) |
19,900 |
974,702 |
|
Cree, Inc. (a)(d) |
200,600 |
9,652,872 |
|
Cypress Semiconductor Corp. (d) |
347,000 |
3,556,750 |
|
First Solar, Inc. (a) |
29,000 |
1,791,620 |
|
Intel Corp. |
27,400 |
748,568 |
|
Mellanox Technologies Ltd. (a)(d) |
49,700 |
1,569,526 |
|
NVIDIA Corp. |
519,200 |
9,864,800 |
|
Rambus, Inc. (a) |
247,600 |
2,995,960 |
|
Silicon Laboratories, Inc. (a) |
98,319 |
4,436,153 |
|
Xilinx, Inc. |
16,500 |
774,840 |
|
|
42,019,854 |
||
Software - 8.1% |
|||
Adobe Systems, Inc. (a) |
21,300 |
1,374,702 |
|
Citrix Systems, Inc. (a) |
9,600 |
594,912 |
|
Concur Technologies, Inc. (a)(d) |
29,300 |
2,501,341 |
|
Interactive Intelligence Group, Inc. (a) |
43,000 |
2,179,670 |
|
Intuit, Inc. |
19,400 |
1,538,226 |
|
Microsoft Corp. |
274,968 |
11,257,190 |
|
NetSuite, Inc. (a) |
35,700 |
2,873,493 |
|
Oracle Corp. |
90,100 |
3,786,002 |
|
Qlik Technologies, Inc. (a) |
63,200 |
1,372,072 |
|
Red Hat, Inc. (a) |
143,200 |
7,177,184 |
|
salesforce.com, Inc. (a) |
605,000 |
31,841,150 |
|
ServiceNow, Inc. (a) |
35,100 |
1,836,081 |
|
Solera Holdings, Inc. |
3,800 |
247,950 |
|
Splunk, Inc. (a) |
11,300 |
473,018 |
|
Common Stocks - continued |
|||
Shares |
Value |
||
INFORMATION TECHNOLOGY - continued |
|||
Software - continued |
|||
The Rubicon Project, Inc. |
3,411 |
$ 43,286 |
|
TiVo, Inc. (a) |
70,100 |
834,190 |
|
VMware, Inc. Class A (a) |
7,800 |
752,700 |
|
Workday, Inc. Class A (a) |
17,100 |
1,340,127 |
|
|
72,023,294 |
||
Technology Hardware, Storage & Peripherals - 4.9% |
|||
3D Systems Corp. (a)(d) |
8,800 |
445,720 |
|
Apple, Inc. |
63,540 |
40,220,820 |
|
Fusion-io, Inc. (a) |
133,300 |
1,065,067 |
|
Nimble Storage, Inc. |
1,300 |
32,981 |
|
SanDisk Corp. |
13,000 |
1,256,190 |
|
|
43,020,778 |
||
TOTAL INFORMATION TECHNOLOGY |
300,020,229 |
||
MATERIALS - 2.0% |
|||
Chemicals - 1.7% |
|||
E.I. du Pont de Nemours & Co. |
24,400 |
1,691,164 |
|
Eastman Chemical Co. |
8,300 |
732,558 |
|
Metabolix, Inc. (a)(d) |
58,100 |
47,665 |
|
Monsanto Co. |
90,700 |
11,051,795 |
|
The Mosaic Co. |
26,300 |
1,314,737 |
|
|
14,837,919 |
||
Construction Materials - 0.0% |
|||
CaesarStone Sdot-Yam Ltd. |
9,100 |
411,093 |
|
Metals & Mining - 0.3% |
|||
Nucor Corp. |
20,400 |
1,032,852 |
|
U.S. Silica Holdings, Inc. |
31,953 |
1,615,863 |
|
|
2,648,715 |
||
TOTAL MATERIALS |
17,897,727 |
||
TELECOMMUNICATION SERVICES - 0.7% |
|||
Diversified Telecommunication Services - 0.4% |
|||
Level 3 Communications, Inc. (a) |
23,900 |
1,043,235 |
|
Verizon Communications, Inc. |
48,300 |
2,413,068 |
|
|
3,456,303 |
||
Common Stocks - continued |
|||
Shares |
Value |
||
TELECOMMUNICATION SERVICES - continued |
|||
Wireless Telecommunication Services - 0.3% |
|||
Sprint Corp. (a) |
59,700 |
$ 570,135 |
|
T-Mobile U.S., Inc. (a) |
48,500 |
1,665,005 |
|
|
2,235,140 |
||
TOTAL TELECOMMUNICATION SERVICES |
5,691,443 |
||
UTILITIES - 0.2% |
|||
Independent Power and Renewabl - 0.0% |
|||
Ormat Technologies, Inc. |
2,628 |
78,262 |
|
Independent Power Producers & Energy Traders - 0.2% |
|||
NRG Energy, Inc. |
37,800 |
1,347,192 |
|
TOTAL UTILITIES |
1,425,454 |
||
TOTAL COMMON STOCKS (Cost $828,437,111) |
|
||
Convertible Preferred Stocks - 0.0% |
|||
|
|
|
|
INFORMATION TECHNOLOGY - 0.0% |
|||
Software - 0.0% |
|||
Cloudera, Inc. Series F (e) (Cost $151,366) |
10,396 |
|
|
Money Market Funds - 5.5% |
|||
|
|
|
|
Fidelity Cash Central Fund, 0.10% (b) |
8,476,342 |
8,476,342 |
|
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) |
40,516,800 |
40,516,800 |
|
TOTAL MONEY MARKET FUNDS (Cost $48,993,142) |
|
||
TOTAL INVESTMENT PORTFOLIO - 104.4% (Cost $877,581,619) |
925,651,568 |
||
NET OTHER ASSETS (LIABILITIES) - (4.4)% |
(38,973,523) |
||
NET ASSETS - 100% |
$ 886,678,045 |
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) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $154,485 or 0.0% of net assets. |
Additional information on each restricted holding is as follows: |
Security |
Acquisition Date |
Acquisition Cost |
Cloudera, Inc. Series F |
2/5/14 |
$ 151,366 |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund |
Income earned |
Fidelity Cash Central Fund |
$ 7,299 |
Fidelity Securities Lending Cash Central Fund |
112,150 |
Total |
$ 119,449 |
Other Information |
The following is a summary of the inputs used, as of May 31, 2014, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
||||
Description |
Total |
Level 1 |
Level 2 |
Level 3 |
Investments in Securities: |
||||
Equities: |
||||
Consumer Discretionary |
$ 148,435,365 |
$ 148,435,365 |
$ - |
$ - |
Consumer Staples |
95,606,584 |
95,287,281 |
319,303 |
- |
Energy |
44,552,460 |
44,552,460 |
- |
- |
Financials |
38,542,709 |
38,542,709 |
- |
- |
Health Care |
149,599,271 |
149,599,271 |
- |
- |
Industrials |
74,732,699 |
74,732,699 |
- |
- |
Information Technology |
300,174,714 |
300,020,229 |
- |
154,485 |
Materials |
17,897,727 |
17,897,727 |
- |
- |
Telecommunication Services |
5,691,443 |
5,691,443 |
- |
- |
Utilities |
1,425,454 |
1,425,454 |
- |
- |
Money Market Funds |
48,993,142 |
48,993,142 |
- |
- |
Total Investments in Securities: |
$ 925,651,568 |
$ 925,177,780 |
$ 319,303 |
$ 154,485 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
May 31, 2014 (Unaudited) |
|
|
|
|
Assets |
|
|
Investment in securities, at value (including securities loaned of $38,995,419) - See accompanying schedule: Unaffiliated issuers (cost $828,588,477) |
$ 876,658,426 |
|
Fidelity Central Funds (cost $48,993,142) |
48,993,142 |
|
Total Investments (cost $877,581,619) |
|
$ 925,651,568 |
Foreign currency held at value (cost $10,495) |
|
10,495 |
Receivable for investments sold |
|
11,966,102 |
Dividends receivable |
|
586,158 |
Distributions receivable from Fidelity Central Funds |
|
20,103 |
Other receivables |
|
194 |
Total assets |
|
938,234,620 |
|
|
|
Liabilities |
|
|
Payable for investments purchased |
$ 10,460,003 |
|
Accrued management fee |
397,207 |
|
Other affiliated payables |
151,411 |
|
Other payables and accrued expenses |
31,154 |
|
Collateral on securities loaned, at value |
40,516,800 |
|
Total liabilities |
|
51,556,575 |
|
|
|
Net Assets |
|
$ 886,678,045 |
Net Assets consist of: |
|
|
Paid in capital |
|
$ 832,900,029 |
Undistributed net investment income |
|
459,394 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions |
|
5,248,688 |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies |
|
48,069,934 |
Net Assets, for 83,298,924 shares outstanding |
|
$ 886,678,045 |
Net Asset Value, offering price and redemption price per share ($886,678,045 ÷ 83,298,924 shares) |
|
$ 10.64 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Six months ended May 31, 2014 (Unaudited) |
||
|
|
|
Investment Income |
|
|
Dividends |
|
$ 3,868,474 |
Interest |
|
177 |
Income from Fidelity Central Funds |
|
119,449 |
Total income |
|
3,988,100 |
|
|
|
Expenses |
|
|
Management fee |
$ 2,419,646 |
|
Transfer agent fees |
763,369 |
|
Accounting and security lending fees |
153,099 |
|
Custodian fees and expenses |
10,362 |
|
Independent trustees' compensation |
1,681 |
|
Audit |
38,475 |
|
Legal |
470 |
|
Miscellaneous |
587 |
|
Total expenses before reductions |
3,387,689 |
|
Expense reductions |
(3,177) |
3,384,512 |
Net investment income (loss) |
|
603,588 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: |
|
|
Investment securities: |
|
|
Unaffiliated issuers |
5,018,884 |
|
Foreign currency transactions |
289 |
|
Futures contracts |
980,841 |
|
Total net realized gain (loss) |
|
6,000,014 |
Change in net unrealized appreciation (depreciation) on: Investment securities |
30,971,520 |
|
Assets and liabilities in foreign currencies |
(27) |
|
Futures contracts |
(639,388) |
|
Total change in net unrealized appreciation (depreciation) |
|
30,332,105 |
Net gain (loss) |
|
36,332,119 |
Net increase (decrease) in net assets resulting from operations |
|
$ 36,935,707 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
|
Six months ended May 31, 2014 |
For the period |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) |
$ 603,588 |
$ 188,976 |
Net realized gain (loss) |
6,000,014 |
880,518 |
Change in net unrealized appreciation (depreciation) |
30,332,105 |
17,737,829 |
Net increase (decrease) in net assets resulting from operations |
36,935,707 |
18,807,323 |
Distributions to shareholders from net investment income |
(333,170) |
- |
Distributions to shareholders from net realized gain |
(1,631,844) |
- |
Total distributions |
(1,965,014) |
- |
Share transactions |
45,892,156 |
833,473,945 |
Reinvestment of distributions |
1,965,015 |
- |
Cost of shares redeemed |
(48,431,087) |
- |
Net increase (decrease) in net assets resulting from share transactions |
(573,916) |
833,473,945 |
Total increase (decrease) in net assets |
34,396,777 |
852,281,268 |
|
|
|
Net Assets |
|
|
Beginning of period |
852,281,268 |
- |
End of period (including undistributed net investment income of $459,394 and undistributed net investment income of $188,976, respectively) |
$ 886,678,045 |
$ 852,281,268 |
Other Information Shares |
|
|
Sold |
4,361,771 |
83,347,395 |
Issued in reinvestment of distributions |
187,503 |
- |
Redeemed |
(4,597,745) |
- |
Net increase (decrease) |
(48,471) |
83,347,395 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Year ended |
|
(Unaudited) |
2013 F |
Selected Per-Share Data |
|
|
Net asset value, beginning of period |
$ 10.23 |
$ 10.00 |
Income from Investment Operations |
|
|
Net investment income (loss) C |
.01 |
- I |
Net realized and unrealized gain (loss) |
.42 |
.23 |
Total from investment operations |
.43 |
.23 |
Distributions from net investment income |
- I |
- |
Distributions from net realized gain |
(.02) |
- |
Total distributions |
(.02) |
- |
Net asset value, end of period |
$ 10.64 |
$ 10.23 |
Total Return B |
4.25% |
2.30% |
Ratios to Average Net Assets D,G |
|
|
Expenses before reductions |
.77% A |
.85% A |
Expenses net of fee waivers, if any |
.77% A |
.85% A |
Expenses net of all reductions |
.77% A |
.85% A |
Net investment income (loss) |
.14% A |
.38% A |
Supplemental Data |
|
|
Net assets, end of period (000 omitted) |
$ 886,678 |
$ 852,281 |
Portfolio turnover rate E |
14% A |
65% H |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Calculated based on average shares outstanding during the period.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F For the period November 7, 2013 (commencement of operations) to November 30, 2013.
G Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
H Amount not annualized.
I Amount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
For the period ended May 31, 2014 (Unaudited)
1. Organization.
Fidelity Advisor® Series Growth Opportunities Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. Shares of the Fund are only available for purchase by mutual funds for which Fidelity Management & Research Company (FMR) or an affiliate serves as an investment manager. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds 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
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. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
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 May 31, 2014, is included at the end of the Fund's Schedule of Investments.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis 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.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, futures contracts, passive foreign investment companies (PFIC), and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation |
$ 88,772,243 |
Gross unrealized depreciation |
(40,706,461) |
Net unrealized appreciation (depreciation) on securities and other investments |
$ 48,065,782 |
|
|
Tax cost |
$ 877,585,786 |
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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
The Fund used derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
The Fund's use of derivatives increased or decreased its exposure to the following risk:
Equity Risk |
Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Counterparty credit risk related to exchange-traded futures contracts may be mitigated by the protection provided by the exchange on which they trade.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and
Semiannual Report
4. Derivative Instruments continued
Futures Contracts - continued
subsequent daily payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable, if any, is included in daily variation margin for derivative instruments in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts." The underlying face amount at value reflects each contract's exposure to the underlying instrument or index at period end.
During the period the Fund recognized net realized gain (loss) of $980,841 and a change in net unrealized appreciation (depreciation) of $(639,388) related to its investment in futures contracts. These amounts are included in the Statement of Operations.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $93,972,872 and $58,571,756, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the Fund's relative investment performance as compared to its benchmark index, the Russell 3000® Growth Index, over the same 36 month performance period. The Fund's performance adjustment will not take effect until November 1, 2014. Subsequent months will be added until the performance period includes 36 months. For the reporting period, the total annualized management fee rate was .55% of the Fund's average net assets.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of the investment adviser, is the Fund's transfer, dividend disbursing and shareholder servicing agent. FIIOC receives account fees and asset-based fees that vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to an annualized rate of .17% of average net assets.
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $2,363 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $137 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency
Semiannual Report
8. Security Lending - continued
or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $112,150. During the period, there were no securities loaned to FCM.
9. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $3,170 for the period.
In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $7.
10. 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.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research (Hong Kong) Limited
Fidelity Management & Research (Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
State Street Bank & Trust Company
Quincy, MA
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St., Boston, MA 02210
www.fidelity.com
AXS3-USAN-0714 1.967932.100
Fidelity Advisor®
Series Small Cap Fund
Semiannual Report
May 31, 2014
(Fidelity Cover Art)
Shareholder Expense Example |
An example of shareholder expenses. |
|
Investment Summary |
A summary of the fund's holdings. |
|
Investments |
A complete list of the fund's investments with their market values. |
|
Financial Statements |
Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
|
Notes |
Notes to the Financial Statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
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 (December 1, 2013 to May 31, 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 |
Beginning |
Ending |
Expenses Paid |
Actual |
.94% |
$ 1,000.00 |
$ 1,029.10 |
$ 4.76 |
Hypothetical A |
|
$ 1,000.00 |
$ 1,020.24 |
$ 4.73 |
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 182/365 (to reflect the one-half year period).
Semiannual Report
Top Ten Stocks as of May 31, 2014 |
||
|
% of fund's |
% of fund's net assets |
Community Health Systems, Inc. |
2.1 |
0.9 |
Darling International, Inc. |
2.0 |
1.0 |
VeriFone Systems, Inc. |
2.0 |
0.8 |
Global Payments, Inc. |
1.9 |
1.8 |
Primerica, Inc. |
1.8 |
1.7 |
Office Depot, Inc. |
1.8 |
1.7 |
The Ensign Group, Inc. |
1.8 |
1.6 |
WESCO International, Inc. |
1.7 |
1.5 |
CDW Corp. |
1.7 |
1.1 |
World Fuel Services Corp. |
1.6 |
1.2 |
|
18.4 |
|
Top Five Market Sectors as of May 31, 2014 |
||
|
% of fund's |
% of fund's net assets |
Financials |
20.6 |
18.5 |
Information Technology |
16.9 |
15.6 |
Industrials |
16.5 |
14.8 |
Consumer Discretionary |
13.7 |
15.3 |
Health Care |
12.0 |
11.2 |
Asset Allocation (% of fund's net assets) |
|||||||
As of May 31, 2014* |
As of November 30, 2013** |
||||||
Stocks and |
|
Stocks and |
|
||||
Other Investments 0.6% |
|
Other Investments 0.0% |
|
||||
Short-Term |
|
Short-Term |
|
||||
* Foreign investments |
15.7% |
|
** Foreign investments |
18.0% |
|
Semiannual Report
Showing Percentage of Net Assets
Common Stocks - 91.9% |
|||
Shares |
Value |
||
CONSUMER DISCRETIONARY - 13.7% |
|||
Diversified Consumer Services - 1.5% |
|||
Best Bridal, Inc. |
392,500 |
$ 2,343,619 |
|
Grand Canyon Education, Inc. (a) |
53,900 |
2,374,295 |
|
Meiko Network Japan Co. Ltd. |
222,100 |
2,598,918 |
|
|
7,316,832 |
||
Hotels, Restaurants & Leisure - 1.2% |
|||
Bally Technologies, Inc. (a) |
62,100 |
3,663,900 |
|
Texas Roadhouse, Inc. Class A |
97,100 |
2,454,688 |
|
|
6,118,588 |
||
Household Durables - 1.7% |
|||
Iida Group Holdings Co. Ltd. |
164,400 |
2,486,679 |
|
Tupperware Brands Corp. |
67,800 |
5,676,216 |
|
|
8,162,895 |
||
Leisure Products - 1.0% |
|||
Smith & Wesson Holding Corp. (a)(e) |
308,200 |
4,894,216 |
|
Media - 1.1% |
|||
Harte-Hanks, Inc. |
477,800 |
3,397,158 |
|
John Wiley & Sons, Inc. Class A |
36,713 |
2,011,138 |
|
|
5,408,296 |
||
Multiline Retail - 0.9% |
|||
Big Lots, Inc. (a) |
101,500 |
4,307,660 |
|
Specialty Retail - 3.1% |
|||
Aarons, Inc. Class A |
153,400 |
5,037,656 |
|
Jumbo SA (a) |
114,681 |
1,710,222 |
|
Office Depot, Inc. (a) |
1,695,220 |
8,679,526 |
|
|
15,427,404 |
||
Textiles, Apparel & Luxury Goods - 3.2% |
|||
Crocs, Inc. (a) |
231,200 |
3,451,816 |
|
Skechers U.S.A., Inc. Class A (sub. vtg.) (a) |
104,800 |
4,663,600 |
|
Steven Madden Ltd. (a) |
169,500 |
5,400,270 |
|
Wolverine World Wide, Inc. |
74,700 |
1,932,489 |
|
|
15,448,175 |
||
TOTAL CONSUMER DISCRETIONARY |
67,084,066 |
||
CONSUMER STAPLES - 3.8% |
|||
Food & Staples Retailing - 1.8% |
|||
Ain Pharmaciez, Inc. |
14,900 |
679,836 |
|
Common Stocks - continued |
|||
Shares |
Value |
||
CONSUMER STAPLES - continued |
|||
Food & Staples Retailing - continued |
|||
Sundrug Co. Ltd. |
92,500 |
$ 4,161,181 |
|
Tsuruha Holdings, Inc. |
77,000 |
4,139,085 |
|
|
8,980,102 |
||
Food Products - 2.0% |
|||
Darling International, Inc. (a) |
493,200 |
9,859,068 |
|
TOTAL CONSUMER STAPLES |
18,839,170 |
||
ENERGY - 6.4% |
|||
Energy Equipment & Services - 4.8% |
|||
Cathedral Energy Services Ltd. |
442,100 |
2,001,947 |
|
Key Energy Services, Inc. (a) |
678,100 |
5,458,705 |
|
McDermott International, Inc. (a)(e) |
298,900 |
2,170,014 |
|
Oil States International, Inc. (a) |
49,300 |
5,303,694 |
|
Oil States International, Inc. (a)(h) |
30,700 |
1,868,095 |
|
Pason Systems, Inc. |
183,800 |
5,009,029 |
|
Western Energy Services Corp. |
156,200 |
1,567,330 |
|
|
23,378,814 |
||
Oil, Gas & Consumable Fuels - 1.6% |
|||
World Fuel Services Corp. |
169,525 |
7,859,179 |
|
TOTAL ENERGY |
31,237,993 |
||
FINANCIALS - 20.0% |
|||
Banks - 5.1% |
|||
Bank of the Ozarks, Inc. |
38,500 |
2,273,040 |
|
East West Bancorp, Inc. |
154,100 |
5,159,268 |
|
Investors Bancorp, Inc. |
513,100 |
5,541,480 |
|
Prosperity Bancshares, Inc. |
44,800 |
2,604,224 |
|
Square 1 Financial, Inc. Class A |
142,370 |
2,689,369 |
|
Umpqua Holdings Corp. |
210,881 |
3,494,298 |
|
Wilshire Bancorp, Inc. |
329,800 |
3,327,682 |
|
|
25,089,361 |
||
Consumer Finance - 0.8% |
|||
EZCORP, Inc. (non-vtg.) Class A (a) |
248,500 |
3,036,670 |
|
Portfolio Recovery Associates, Inc. (a) |
18,100 |
1,009,799 |
|
|
4,046,469 |
||
Insurance - 7.6% |
|||
CNO Financial Group, Inc. |
339,100 |
5,469,683 |
|
Enstar Group Ltd. (a) |
27,700 |
3,902,930 |
|
Common Stocks - continued |
|||
Shares |
Value |
||
FINANCIALS - continued |
|||
Insurance - continued |
|||
HCC Insurance Holdings, Inc. |
115,600 |
$ 5,430,888 |
|
Primerica, Inc. |
194,200 |
8,746,768 |
|
Reinsurance Group of America, Inc. |
77,100 |
6,026,136 |
|
RenaissanceRe Holdings Ltd. |
71,200 |
7,416,904 |
|
|
36,993,309 |
||
Real Estate Investment Trusts - 6.2% |
|||
Corrections Corp. of America |
177,200 |
5,764,316 |
|
EPR Properties |
115,600 |
6,233,152 |
|
Equity Lifestyle Properties, Inc. |
53,900 |
2,357,586 |
|
MFA Financial, Inc. |
601,000 |
4,946,230 |
|
National Health Investors, Inc. |
84,800 |
5,318,656 |
|
Rouse Properties, Inc. (e) |
215,800 |
3,521,856 |
|
Sovran Self Storage, Inc. |
29,900 |
2,296,320 |
|
|
30,438,116 |
||
Real Estate Management & Development - 0.3% |
|||
Relo Holdings Corp. |
28,000 |
1,618,610 |
|
TOTAL FINANCIALS |
98,185,865 |
||
HEALTH CARE - 12.0% |
|||
Biotechnology - 1.0% |
|||
United Therapeutics Corp. (a) |
53,900 |
5,160,386 |
|
Health Care Equipment & Supplies - 1.1% |
|||
The Cooper Companies, Inc. |
40,300 |
5,199,506 |
|
Health Care Providers & Services - 7.2% |
|||
AmSurg Corp. (a) |
106,500 |
4,822,320 |
|
Community Health Systems, Inc. (a) |
246,600 |
10,300,481 |
|
Health Net, Inc. (a) |
107,900 |
4,313,842 |
|
MEDNAX, Inc. (a) |
58,020 |
3,343,693 |
|
Providence Service Corp. (a) |
91,600 |
3,682,320 |
|
The Ensign Group, Inc. |
184,900 |
8,671,810 |
|
|
35,134,466 |
||
Pharmaceuticals - 2.7% |
|||
Jazz Pharmaceuticals PLC (a) |
22,400 |
3,177,664 |
|
Phibro Animal Health Corp. Class A |
201,600 |
3,836,448 |
|
Common Stocks - continued |
|||
Shares |
Value |
||
HEALTH CARE - continued |
|||
Pharmaceuticals - continued |
|||
Prestige Brands Holdings, Inc. (a) |
97,100 |
$ 3,320,820 |
|
Sawai Pharmaceutical Co. Ltd. |
46,000 |
2,868,242 |
|
|
13,203,174 |
||
TOTAL HEALTH CARE |
58,697,532 |
||
INDUSTRIALS - 16.5% |
|||
Aerospace & Defense - 2.8% |
|||
Engility Holdings, Inc. (a) |
92,500 |
3,575,125 |
|
Moog, Inc. Class A (a) |
61,600 |
4,438,896 |
|
Teledyne Technologies, Inc. (a) |
61,600 |
5,837,832 |
|
|
13,851,853 |
||
Commercial Services & Supplies - 3.9% |
|||
Deluxe Corp. |
77,100 |
4,324,539 |
|
Mitie Group PLC |
863,000 |
4,850,318 |
|
UniFirst Corp. |
38,500 |
3,809,575 |
|
West Corp. |
231,200 |
6,196,160 |
|
|
19,180,592 |
||
Construction & Engineering - 0.9% |
|||
Badger Daylighting Ltd. |
134,400 |
4,338,283 |
|
Machinery - 4.4% |
|||
Federal Signal Corp. |
277,400 |
3,805,928 |
|
Hy-Lok Corp. |
104,657 |
3,137,557 |
|
Standex International Corp. |
69,400 |
5,124,496 |
|
TriMas Corp. (a) |
138,700 |
4,869,757 |
|
Valmont Industries, Inc. |
30,800 |
4,772,460 |
|
|
21,710,198 |
||
Marine - 0.3% |
|||
SITC International Holdings Co. Ltd. |
2,839,000 |
1,241,361 |
|
Professional Services - 0.3% |
|||
Benefit One, Inc. |
224,100 |
1,691,962 |
|
Trading Companies & Distributors - 3.2% |
|||
Aceto Corp. |
184,900 |
3,222,807 |
|
Textainer Group Holdings Ltd. |
115,600 |
4,478,344 |
|
WESCO International, Inc. (a) |
95,600 |
8,166,152 |
|
|
15,867,303 |
||
Common Stocks - continued |
|||
Shares |
Value |
||
INDUSTRIALS - continued |
|||
Transportation Infrastructure - 0.7% |
|||
Wesco Aircraft Holdings, Inc. (a) |
149,700 |
$ 3,254,478 |
|
TOTAL INDUSTRIALS |
81,136,030 |
||
INFORMATION TECHNOLOGY - 16.9% |
|||
Electronic Equipment & Components - 5.9% |
|||
Belden, Inc. |
61,600 |
4,434,584 |
|
CDW Corp. |
277,400 |
8,158,334 |
|
Insight Enterprises, Inc. (a) |
139,500 |
3,791,610 |
|
ScanSource, Inc. (a) |
52,300 |
1,940,330 |
|
SYNNEX Corp. (a) |
77,100 |
5,097,081 |
|
Zebra Technologies Corp. Class A (a) |
75,000 |
5,572,500 |
|
|
28,994,439 |
||
Internet Software & Services - 2.2% |
|||
Conversant, Inc. (a)(e) |
200,300 |
4,723,074 |
|
Perficient, Inc. (a) |
123,300 |
2,175,012 |
|
Stamps.com, Inc. (a) |
127,000 |
4,104,640 |
|
|
11,002,726 |
||
IT Services - 7.4% |
|||
EPAM Systems, Inc. (a) |
154,100 |
6,482,987 |
|
Genpact Ltd. (a) |
200,300 |
3,375,055 |
|
Global Payments, Inc. |
139,100 |
9,536,696 |
|
Syntel, Inc. (a) |
53,900 |
4,360,510 |
|
VeriFone Systems, Inc. (a) |
294,900 |
9,675,669 |
|
WEX, Inc. (a) |
29,900 |
2,879,071 |
|
|
36,309,988 |
||
Software - 1.4% |
|||
Sword Group |
82,661 |
2,242,319 |
|
Verint Systems, Inc. (a) |
95,600 |
4,429,148 |
|
|
6,671,467 |
||
TOTAL INFORMATION TECHNOLOGY |
82,978,620 |
||
MATERIALS - 1.8% |
|||
Chemicals - 0.9% |
|||
PolyOne Corp. |
104,400 |
4,189,572 |
|
Common Stocks - continued |
|||
Shares |
Value |
||
MATERIALS - continued |
|||
Containers & Packaging - 0.9% |
|||
Sealed Air Corp. |
138,700 |
$ 4,567,391 |
|
TOTAL MATERIALS |
8,756,963 |
||
TELECOMMUNICATION SERVICES - 0.3% |
|||
Diversified Telecommunication Services - 0.3% |
|||
Amcom Telecommunications Ltd. |
270,000 |
547,781 |
|
Asia Satellite Telecommunications Holdings Ltd. |
120,000 |
484,461 |
|
iiNet Ltd. |
80,000 |
552,434 |
|
|
1,584,676 |
||
UTILITIES - 0.5% |
|||
Gas Utilities - 0.5% |
|||
New Jersey Resources Corp. |
44,800 |
2,464,448 |
|
TOTAL COMMON STOCKS (Cost $428,278,012) |
|
U.S. Treasury Obligations - 0.3% |
||||
|
Principal Amount (d) |
|
||
U.S. Treasury Bills, yield at date of purchase 0.01% to 0.03% 7/17/14 to 8/21/14 (i) |
|
$ 1,650,000 |
|
|
Preferred Securities - 0.6% |
||||
|
|
|
|
|
FINANCIALS - 0.6% |
||||
Diversified Financial Services - 0.6% |
||||
Baggot Securities Ltd. 10.24% (f)(g) (Cost $2,687,200) |
EUR |
1,730,000 |
|
Money Market Funds - 9.1% |
|||
Shares |
Value |
||
Fidelity Cash Central Fund, 0.10% (b) |
37,656,608 |
$ 37,656,608 |
|
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) |
6,976,675 |
6,976,675 |
|
TOTAL MONEY MARKET FUNDS (Cost $44,633,283) |
|
||
TOTAL INVESTMENT PORTFOLIO - 101.9% (Cost $477,248,437) |
499,892,951 |
||
NET OTHER ASSETS (LIABILITIES) - (1.9)% |
(9,206,351) |
||
NET ASSETS - 100% |
$ 490,686,600 |
Futures Contracts |
|||||
|
Expiration Date |
Underlying |
Unrealized |
||
Purchased |
|||||
Equity Index Contracts |
|||||
306 ICE Russell 2000 Index Contracts (United States) |
June 2014 |
$ 34,675,920 |
$ (488,473) |
The face value of futures purchased as a percentage of net assets is 7.1% |
Currency Abbreviations |
||
EUR |
- |
European Monetary Unit |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Amount is stated in United States dollars unless otherwise noted. |
(e) Security or a portion of the security is on loan at period end. |
(f) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $2,644,389 or 0.5% of net assets. |
(g) Security is perpetual in nature with no stated maturity date. |
(h) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
(i) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At period end, the value of securities pledged amounted to $1,649,916. |
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 |
$ 16,981 |
Fidelity Securities Lending Cash Central Fund |
73,962 |
Total |
$ 90,943 |
Other Information |
The following is a summary of the inputs used, as of May 31, 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 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: |
||||
Equities: |
||||
Consumer Discretionary |
$ 67,084,066 |
$ 59,654,850 |
$ 7,429,216 |
$ - |
Consumer Staples |
18,839,170 |
9,859,068 |
8,980,102 |
- |
Energy |
31,237,993 |
31,237,993 |
- |
- |
Financials |
98,185,865 |
96,567,255 |
1,618,610 |
- |
Health Care |
58,697,532 |
55,829,290 |
2,868,242 |
- |
Industrials |
81,136,030 |
79,444,068 |
1,691,962 |
- |
Information Technology |
82,978,620 |
82,978,620 |
- |
- |
Materials |
8,756,963 |
8,756,963 |
- |
- |
Telecommunication Services |
1,584,676 |
1,584,676 |
- |
- |
Utilities |
2,464,448 |
2,464,448 |
- |
- |
U.S. Government and Government Agency Obligations |
1,649,916 |
- |
1,649,916 |
- |
Preferred Securities |
2,644,389 |
- |
2,644,389 |
- |
Money Market Funds |
44,633,283 |
44,633,283 |
- |
- |
Total Investments in Securities: |
$ 499,892,951 |
$ 473,010,514 |
$ 26,882,437 |
$ - |
Derivative Instruments: |
||||
Liabilities |
||||
Futures Contracts |
$ (488,473) |
$ (488,473) |
$ - |
$ - |
The following is a summary of transfers between Level 1 and Level 2 for the period ended May 31, 2014. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements: |
Transfers |
Total |
Level 1 to Level 2 |
$ 19,982,674 |
Level 2 to Level 1 |
$ 0 |
Value of Derivative Instruments |
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of May 31, 2014. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements. |
Primary Risk Exposure / |
Value |
|
|
Asset |
Liability |
Equity Risk |
||
Futures Contracts (a) |
$ - |
$ (488,473) |
Total Value of Derivatives |
$ - |
$ (488,473) |
(a) Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. Only the period end receivable or payable for daily variation margin and net unrealized appreciation (depreciation) are presented in the Statement of Assets and Liabilities. |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited): |
United States of America |
84.3% |
Japan |
4.5% |
Bermuda |
4.0% |
Canada |
2.6% |
Ireland |
1.2% |
United Kingdom |
1.0% |
Others (Individually Less Than 1%) |
2.4% |
|
100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
May 31, 2014 (Unaudited) |
|
|
|
|
Assets |
|
|
Investment in securities, at value (including securities loaned of $6,694,820) - See accompanying schedule: Unaffiliated issuers (cost $432,615,154) |
$ 455,259,668 |
|
Fidelity Central Funds (cost $44,633,283) |
44,633,283 |
|
Total Investments (cost $477,248,437) |
|
$ 499,892,951 |
Cash |
|
177,520 |
Foreign currency held at value (cost $6,011) |
|
5,984 |
Receivable for investments sold |
|
1,052,641 |
Receivable for fund shares sold |
|
11,718 |
Dividends receivable |
|
301,834 |
Distributions receivable from Fidelity Central Funds |
|
9,583 |
Other receivables |
|
3,181 |
Total assets |
|
501,455,412 |
|
|
|
Liabilities |
|
|
Payable for investments purchased |
$ 1,620,186 |
|
Delayed delivery |
1,254,465 |
|
Payable for fund shares redeemed |
295,239 |
|
Accrued management fee |
282,810 |
|
Payable for daily variation margin for derivative instruments |
201,960 |
|
Other affiliated payables |
87,536 |
|
Other payables and accrued expenses |
49,941 |
|
Collateral on securities loaned, at value |
6,976,675 |
|
Total liabilities |
|
10,768,812 |
|
|
|
Net Assets |
|
$ 490,686,600 |
Net Assets consist of: |
|
|
Paid in capital |
|
$ 459,776,628 |
Undistributed net investment income |
|
214,081 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions |
|
8,539,371 |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies |
|
22,156,520 |
Net Assets, for 46,074,178 shares outstanding |
|
$ 490,686,600 |
Net Asset Value, offering price and redemption price per share ($490,686,600 ÷ 46,074,178 shares) |
|
$ 10.65 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Six months ended May 31, 2014 (Unaudited) |
||
|
|
|
Investment Income |
|
|
Dividends |
|
$ 2,752,336 |
Interest |
|
1,016 |
Income from Fidelity Central Funds |
|
90,943 |
Total income |
|
2,844,295 |
|
|
|
Expenses |
|
|
Management fee |
$ 1,692,335 |
|
Transfer agent fees |
421,471 |
|
Accounting and security lending fees |
95,112 |
|
Custodian fees and expenses |
24,311 |
|
Independent trustees' compensation |
925 |
|
Audit |
33,988 |
|
Legal |
258 |
|
Miscellaneous |
519 |
|
Total expenses before reductions |
2,268,919 |
|
Expense reductions |
(9,831) |
2,259,088 |
Net investment income (loss) |
|
585,207 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: |
|
|
Investment securities: |
|
|
Unaffiliated issuers |
8,671,475 |
|
Foreign currency transactions |
(82,525) |
|
Futures contracts |
1,437,663 |
|
Total net realized gain (loss) |
|
10,026,613 |
Change in net unrealized appreciation (depreciation) on: Investment securities |
6,047,500 |
|
Assets and liabilities in foreign currencies |
1,031 |
|
Futures contracts |
(1,877,791) |
|
Total change in net unrealized appreciation (depreciation) |
|
4,170,740 |
Net gain (loss) |
|
14,197,353 |
Net increase (decrease) in net assets resulting from operations |
|
$ 14,782,560 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
|
Six months ended |
For the period |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) |
$ 585,207 |
$ (65,599) |
Net realized gain (loss) |
10,026,613 |
78,250 |
Change in net unrealized appreciation (depreciation) |
4,170,740 |
17,985,780 |
Net increase (decrease) in net assets resulting from operations |
14,782,560 |
17,998,431 |
Distributions to shareholders from net investment income |
(371,126) |
- |
Distributions to shareholders from net realized gain |
(1,499,894) |
- |
Total distributions |
(1,871,020) |
- |
Share transactions |
34,472,717 |
468,584,982 |
Reinvestment of distributions |
1,871,020 |
- |
Cost of shares redeemed |
(44,107,286) |
(1,044,804) |
Net increase (decrease) in net assets resulting from share transactions |
(7,763,549) |
467,540,178 |
Total increase (decrease) in net assets |
5,147,991 |
485,538,609 |
|
|
|
Net Assets |
|
|
Beginning of period |
485,538,609 |
- |
End of period (including undistributed net investment income of $214,081 and $0, respectively) |
$ 490,686,600 |
$ 485,538,609 |
Other Information Shares |
|
|
Sold |
3,383,254 |
46,848,562 |
Issued in reinvestment of distributions |
179,493 |
- |
Redeemed |
(4,234,397) |
(102,734) |
Net increase (decrease) |
(671,650) |
46,745,828 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Year ended |
|
(Unaudited) |
2013 H |
Selected Per-Share Data |
|
|
Net asset value, beginning of period |
$ 10.39 |
$ 10.00 |
Income from Investment Operations |
|
|
Net investment income (loss) D |
.01 |
- G, J |
Net realized and unrealized gain (loss) |
.29 |
.39 |
Total from investment operations |
.30 |
.39 |
Distributions from net investment income |
(.01) |
- |
Distributions from net realized gain |
(.03) |
- |
Total distributions |
(.04) |
- |
Net asset value, end of period |
$ 10.65 |
$ 10.39 |
Total Return B, C |
2.91% |
3.90% |
Ratios to Average Net Assets E, I |
|
|
Expenses before reductions |
.94% A |
1.07% A |
Expenses net of fee waivers, if any |
.94% A |
.95% A |
Expenses net of all reductions |
.94% A |
.95% A |
Net investment income (loss) |
.24% A |
(.25)% A, G |
Supplemental Data |
|
|
Net assets, end of period (000 omitted) |
$ 490,687 |
$ 485,539 |
Portfolio turnover rate F |
73% A |
4% K |
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 Investment income per share reflects a large, non-recurring dividend which amounted to less than $.01 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.36)%.
H For the period November 7, 2013 (commencement of operations) to November 30, 2013.
I Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
J Amount represents less than $.01 per share.
K Amount not annualized.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
For the period ended May 31, 2014 (Unaudited)
1. Organization.
Fidelity Advisor® Series Small Cap Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. Shares of the Fund are only available for purchase by mutual funds for which Fidelity Management & Research Company (FMR) or an affiliate serves as an investment manager. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds 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:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. U.S. government and government agency obligations are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded and are categorized as Level 1 in the hierarchy. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of May 31, 2014 including information on transfers between Levels 1 and 2 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis 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.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to futures contracts, foreign currency transactions, net operating losses and losses deferred due to wash sales.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation |
$ 35,321,262 |
Gross unrealized depreciation |
(12,953,926) |
Net unrealized appreciation (depreciation) on securities and other investments |
$ 22,367,336 |
|
|
Tax cost |
$ 477,525,615 |
Delayed Delivery Transactions and When-Issued Securities. During the period, the Fund transacted in securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. The securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. With respect to purchase commitments, the Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Derivative Instruments - continued
Risk Exposures and the Use of Derivative Instruments - continued
The Fund used derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
The Fund's use of derivatives increased or decreased its exposure to the following risk:
Equity Risk |
Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Counterparty credit risk related to exchange-traded futures contracts may be mitigated by the protection provided by the exchange on which they trade.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent daily payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable, if any, is included in daily variation margin for derivative instruments in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts." The underlying face amount at value reflects
Semiannual Report
4. Derivative Instruments - continued
Futures Contracts - continued
each contract's exposure to the underlying instrument or index at period end and is representative of volume of activity during the period. Securities deposited to meet initial margin requirements are identified in the Schedule of Investments.
During the period the Fund recognized net realized gain (loss) of $1,437,663 and a change in net unrealized appreciation (depreciation) of $(1,877,791) related to its investment in futures contracts. These amounts are included in the Statement of Operations.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $162,071,730 and $163,586,847, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the Fund's relative investment performance as compared to its benchmark index, the Russell 2000® Index, over the same 36 month performance period. The Fund's performance adjustment will not take effect until November 1, 2014. Subsequent months will be added until the performance period includes 36 months. For the reporting period, the total annualized management fee rate was .70% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of the investment adviser, is the Fund's transfer, dividend disbursing and shareholder servicing agent. FIIOC receives account fees and asset-based fees that
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to an annualized rate of .17% of average net assets.
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $5,542 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $75 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities
Semiannual Report
8. Security Lending - continued
loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $73,962. During the period, there were no securities loaned to FCM.
9. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $9,831 for the period.
10. 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.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research (Hong Kong) Limited
Fidelity Management & Research (Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
State Street Bank & Trust Company
Quincy, MA
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St., Boston, MA 02210
www.fidelity.com
AXS5-SANN-0714 1.967944.100
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor ® Stock Selector
Mid Cap
Fund - Institutional Class
Semiannual Report
May 31, 2014
(Fidelity Cover Art)
Shareholder Expense Example |
An example of shareholder expenses. |
|
Investment Changes |
A summary of major shifts in the fund's investments over the past six months. |
|
Investments |
A complete list of the fund's investments with their market values. |
|
Financial Statements |
Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
|
Notes |
Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (December 1, 2013 to May 31, 2014).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
|
Annualized |
Beginning |
Ending |
Expenses Paid |
Class A |
1.07% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,066.50 |
$ 5.51 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,019.60 |
$ 5.39 |
Class T |
1.29% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,065.30 |
$ 6.64 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,018.50 |
$ 6.49 |
Class B |
1.91% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,062.20 |
$ 9.82 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,015.41 |
$ 9.60 |
Class C |
1.82% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,062.60 |
$ 9.36 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,015.86 |
$ 9.15 |
Fidelity Stock Selector Mid Cap Fund |
.83% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,067.80 |
$ 4.28 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,020.79 |
$ 4.18 |
Institutional Class |
.80% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,067.70 |
$ 4.12 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,020.94 |
$ 4.03 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
Semiannual Report
Top Ten Stocks as of May 31, 2014 |
||
|
% of fund's |
% of fund's net assets |
J.B. Hunt Transport Services, Inc. |
2.4 |
1.9 |
Roper Industries, Inc. |
1.9 |
1.5 |
Capital One Financial Corp. |
1.7 |
1.8 |
Hubbell, Inc. Class B |
1.5 |
1.7 |
Verisk Analytics, Inc. |
1.5 |
1.5 |
AMETEK, Inc. |
1.4 |
1.7 |
Cimarex Energy Co. |
1.2 |
0.9 |
Watsco, Inc. |
1.2 |
0.9 |
Airgas, Inc. |
1.1 |
1.1 |
Interactive Brokers Group, Inc. |
1.1 |
1.2 |
|
15.0 |
|
Top Five Market Sectors as of May 31, 2014 |
||
|
% of fund's |
% of fund's net assets |
Financials |
22.4 |
22.3 |
Industrials |
16.6 |
16.8 |
Information Technology |
15.1 |
15.6 |
Consumer Discretionary |
12.2 |
13.9 |
Health Care |
9.3 |
8.9 |
Asset Allocation (% of fund's net assets) |
|||||||
As of May 31, 2014 * |
As of November 30, 2013 ** |
||||||
Stocks and |
|
Stocks and |
|
||||
Short-Term |
|
Short-Term |
|
||||
* Foreign investments |
7.2% |
|
** Foreign investments |
8.5% |
|
Semiannual Report
Showing Percentage of Net Assets
Common Stocks - 97.6% |
|||
Shares |
Value (000s) |
||
CONSUMER DISCRETIONARY - 12.2% |
|||
Auto Components - 0.1% |
|||
Tenneco, Inc. (a) |
31,400 |
$ 2,002 |
|
Hotels, Restaurants & Leisure - 0.3% |
|||
Texas Roadhouse, Inc. Class A |
211,300 |
5,342 |
|
Household Durables - 2.8% |
|||
Jarden Corp. (a) |
317,115 |
17,942 |
|
Libbey, Inc. (a) |
269,118 |
7,253 |
|
NVR, Inc. (a) |
17,400 |
19,377 |
|
Tupperware Brands Corp. |
181,680 |
15,210 |
|
|
59,782 |
||
Internet & Catalog Retail - 0.6% |
|||
HomeAway, Inc. (a) |
80,600 |
2,482 |
|
Liberty Interactive Corp. Series A (a) |
348,310 |
10,146 |
|
|
12,628 |
||
Leisure Products - 0.8% |
|||
Brunswick Corp. |
278,800 |
12,016 |
|
Smith & Wesson Holding Corp. (a) |
304,600 |
4,837 |
|
|
16,853 |
||
Media - 0.8% |
|||
The Madison Square Garden Co. Class A (a) |
307,100 |
16,844 |
|
Multiline Retail - 1.3% |
|||
Dollar General Corp. (a) |
227,840 |
12,253 |
|
Dollar Tree, Inc. (a) |
313,878 |
16,645 |
|
|
28,898 |
||
Specialty Retail - 4.4% |
|||
Abercrombie & Fitch Co. Class A |
123,582 |
4,697 |
|
Cabela's, Inc. Class A (a)(d) |
231,000 |
14,144 |
|
Foot Locker, Inc. |
456,000 |
21,970 |
|
PetSmart, Inc. |
53,660 |
3,084 |
|
Ross Stores, Inc. |
223,010 |
15,265 |
|
Sally Beauty Holdings, Inc. (a) |
450,620 |
11,545 |
|
Sportsman's Warehouse Holdings, Inc. |
891,763 |
8,231 |
|
Williams-Sonoma, Inc. |
249,460 |
16,694 |
|
|
95,630 |
||
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
CONSUMER DISCRETIONARY - continued |
|||
Textiles, Apparel & Luxury Goods - 1.1% |
|||
PVH Corp. |
92,000 |
$ 12,110 |
|
Ralph Lauren Corp. |
78,100 |
11,987 |
|
|
24,097 |
||
TOTAL CONSUMER DISCRETIONARY |
262,076 |
||
CONSUMER STAPLES - 3.2% |
|||
Beverages - 0.1% |
|||
Monster Beverage Corp. (a) |
44,884 |
3,114 |
|
Food & Staples Retailing - 0.8% |
|||
United Natural Foods, Inc. (a) |
125,145 |
8,436 |
|
Whole Foods Market, Inc. |
215,442 |
8,239 |
|
|
16,675 |
||
Food Products - 2.3% |
|||
Hillshire Brands Co. |
166,400 |
8,866 |
|
Mead Johnson Nutrition Co. Class A |
77,900 |
6,970 |
|
The Hain Celestial Group, Inc. (a) |
96,700 |
8,773 |
|
The Hershey Co. |
63,900 |
6,220 |
|
TreeHouse Foods, Inc. (a) |
84,580 |
6,339 |
|
WhiteWave Foods Co. (a) |
398,400 |
12,546 |
|
|
49,714 |
||
TOTAL CONSUMER STAPLES |
69,503 |
||
ENERGY - 6.5% |
|||
Energy Equipment & Services - 1.9% |
|||
Dresser-Rand Group, Inc. (a) |
94,400 |
5,777 |
|
Dril-Quip, Inc. (a) |
129,000 |
13,186 |
|
Helmerich & Payne, Inc. |
123,980 |
13,632 |
|
Rowan Companies PLC |
250,610 |
7,759 |
|
|
40,354 |
||
Oil, Gas & Consumable Fuels - 4.6% |
|||
Cheniere Energy, Inc. (a) |
75,400 |
5,135 |
|
Cimarex Energy Co. |
195,400 |
25,232 |
|
Energen Corp. |
186,800 |
15,949 |
|
Genesis Energy LP |
134,800 |
7,684 |
|
HollyFrontier Corp. |
95,070 |
4,682 |
|
SM Energy Co. |
191,246 |
14,498 |
|
Stone Energy Corp. (a) |
183,000 |
8,123 |
|
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
ENERGY - continued |
|||
Oil, Gas & Consumable Fuels - continued |
|||
Targa Resources Corp. |
74,700 |
$ 8,588 |
|
Whiting Petroleum Corp. (a) |
133,100 |
9,563 |
|
|
99,454 |
||
TOTAL ENERGY |
139,808 |
||
FINANCIALS - 22.4% |
|||
Banks - 2.8% |
|||
City National Corp. |
156,410 |
11,119 |
|
Erste Group Bank AG |
51,774 |
1,799 |
|
Huntington Bancshares, Inc. |
2,189,478 |
20,296 |
|
Prosperity Bancshares, Inc. |
285,600 |
16,602 |
|
Synovus Financial Corp. |
334,227 |
7,707 |
|
The Jammu & Kashmir Bank Ltd. |
120,000 |
3,037 |
|
|
60,560 |
||
Capital Markets - 3.9% |
|||
ABG Sundal Collier ASA (a) |
3,100,000 |
2,920 |
|
KKR & Co. LP |
670,164 |
15,233 |
|
Lazard Ltd. Class A |
247,900 |
12,519 |
|
MLP AG |
1,566,600 |
10,848 |
|
Moelis & Co. Class A |
119,300 |
3,753 |
|
Oaktree Capital Group LLC Class A |
162,900 |
8,142 |
|
Och-Ziff Capital Management Group LLC Class A |
535,800 |
7,121 |
|
Raymond James Financial, Inc. |
329,700 |
15,957 |
|
Virtus Investment Partners, Inc. |
13,500 |
2,491 |
|
Vontobel Holdings AG |
150,000 |
5,536 |
|
|
84,520 |
||
Consumer Finance - 4.0% |
|||
ACOM Co. Ltd. (a)(d) |
3,590,200 |
13,814 |
|
Capital One Financial Corp. |
458,300 |
36,155 |
|
Cash America International, Inc. |
239,527 |
11,380 |
|
Navient Corp. |
542,316 |
8,569 |
|
SLM Corp. |
792,316 |
6,822 |
|
Springleaf Holdings, Inc. |
421,600 |
9,895 |
|
|
86,635 |
||
Diversified Financial Services - 1.1% |
|||
Interactive Brokers Group, Inc. |
1,011,767 |
23,291 |
|
Insurance - 2.1% |
|||
Arthur J. Gallagher & Co. |
243,200 |
11,146 |
|
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
FINANCIALS - continued |
|||
Insurance - continued |
|||
Direct Line Insurance Group PLC |
4,189,691 |
$ 17,789 |
|
Fairfax Financial Holdings Ltd. (sub. vtg.) |
29,800 |
13,420 |
|
St. James's Place Capital PLC |
237,200 |
3,111 |
|
|
45,466 |
||
Real Estate Investment Trusts - 7.6% |
|||
Acadia Realty Trust (SBI) |
149,500 |
4,125 |
|
Alexandria Real Estate Equities, Inc. |
150,775 |
11,472 |
|
Ashford Hospitality Prime, Inc. |
47,600 |
776 |
|
Corrections Corp. of America |
132,300 |
4,304 |
|
Cousins Properties, Inc. |
283,600 |
3,403 |
|
Essex Property Trust, Inc. |
37,764 |
6,834 |
|
Federal Realty Investment Trust (SBI) |
132,800 |
15,872 |
|
FelCor Lodging Trust, Inc. |
347,000 |
3,414 |
|
Kilroy Realty Corp. |
59,675 |
3,615 |
|
Liberty Property Trust (SBI) |
316,900 |
12,267 |
|
Mid-America Apartment Communities, Inc. |
197,700 |
14,304 |
|
National Retail Properties, Inc. (d) |
428,569 |
14,991 |
|
Piedmont Office Realty Trust, Inc. Class A |
322,500 |
6,005 |
|
Post Properties, Inc. |
154,900 |
7,923 |
|
Redwood Trust, Inc. (d) |
240,900 |
4,695 |
|
Senior Housing Properties Trust (SBI) |
454,000 |
10,887 |
|
SL Green Realty Corp. |
125,465 |
13,737 |
|
Sovran Self Storage, Inc. |
83,039 |
6,377 |
|
Taubman Centers, Inc. |
119,200 |
8,928 |
|
Weyerhaeuser Co. |
269,414 |
8,465 |
|
|
162,394 |
||
Real Estate Management & Development - 0.5% |
|||
Alexander & Baldwin, Inc. |
18,000 |
682 |
|
Altisource Portfolio Solutions SA (a) |
41,910 |
4,619 |
|
CBRE Group, Inc. (a) |
207,932 |
6,205 |
|
|
11,506 |
||
Thrifts & Mortgage Finance - 0.4% |
|||
Ocwen Financial Corp. (a) |
215,963 |
7,574 |
|
TOTAL FINANCIALS |
481,946 |
||
HEALTH CARE - 9.3% |
|||
Biotechnology - 1.4% |
|||
Alexion Pharmaceuticals, Inc. (a) |
58,000 |
9,647 |
|
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
HEALTH CARE - continued |
|||
Biotechnology - continued |
|||
Cubist Pharmaceuticals, Inc. |
200,000 |
$ 13,320 |
|
Grifols SA ADR |
200,000 |
8,324 |
|
|
31,291 |
||
Health Care Equipment & Supplies - 2.8% |
|||
Boston Scientific Corp. (a) |
1,450,000 |
18,604 |
|
Edwards Lifesciences Corp. (a) |
95,000 |
7,714 |
|
Intuitive Surgical, Inc. (a) |
15,000 |
5,546 |
|
Masimo Corp. (a) |
380,000 |
9,363 |
|
The Cooper Companies, Inc. |
145,000 |
18,708 |
|
|
59,935 |
||
Health Care Providers & Services - 1.3% |
|||
HCA Holdings, Inc. (a) |
128,000 |
6,783 |
|
Humana, Inc. |
63,000 |
7,841 |
|
MEDNAX, Inc. (a) |
220,000 |
12,679 |
|
|
27,303 |
||
Health Care Technology - 0.5% |
|||
Cerner Corp. (a) |
196,000 |
10,594 |
|
Life Sciences Tools & Services - 1.0% |
|||
Agilent Technologies, Inc. |
200,000 |
11,388 |
|
Illumina, Inc. (a) |
63,000 |
9,970 |
|
|
21,358 |
||
Pharmaceuticals - 2.3% |
|||
Actavis PLC (a) |
70,000 |
14,808 |
|
Perrigo Co. PLC |
58,000 |
8,016 |
|
Salix Pharmaceuticals Ltd. (a) |
170,000 |
19,394 |
|
The Medicines Company (a) |
272,000 |
7,589 |
|
|
49,807 |
||
TOTAL HEALTH CARE |
200,288 |
||
INDUSTRIALS - 16.6% |
|||
Aerospace & Defense - 2.0% |
|||
Meggitt PLC |
2,826,204 |
22,952 |
|
TransDigm Group, Inc. |
113,410 |
21,402 |
|
|
44,354 |
||
Building Products - 0.5% |
|||
A.O. Smith Corp. |
228,247 |
11,271 |
|
Construction & Engineering - 0.6% |
|||
MasTec, Inc. (a) |
389,100 |
14,008 |
|
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
INDUSTRIALS - continued |
|||
Electrical Equipment - 3.0% |
|||
Acuity Brands, Inc. |
18,736 |
$ 2,352 |
|
AMETEK, Inc. |
581,490 |
30,865 |
|
Hubbell, Inc. Class B |
270,740 |
31,677 |
|
|
64,894 |
||
Industrial Conglomerates - 1.9% |
|||
Roper Industries, Inc. |
286,320 |
40,566 |
|
Machinery - 2.7% |
|||
Cummins, Inc. |
141,800 |
21,685 |
|
Manitowoc Co., Inc. |
643,996 |
17,420 |
|
Valmont Industries, Inc. |
118,900 |
18,424 |
|
WABCO Holdings, Inc. (a) |
18 |
2 |
|
|
57,531 |
||
Professional Services - 1.5% |
|||
Verisk Analytics, Inc. (a) |
532,000 |
31,489 |
|
Road & Rail - 2.4% |
|||
J.B. Hunt Transport Services, Inc. |
660,540 |
51,295 |
|
Trading Companies & Distributors - 2.0% |
|||
W.W. Grainger, Inc. |
67,500 |
17,440 |
|
Watsco, Inc. |
247,700 |
24,926 |
|
|
42,366 |
||
TOTAL INDUSTRIALS |
357,774 |
||
INFORMATION TECHNOLOGY - 15.1% |
|||
Communications Equipment - 0.9% |
|||
Aruba Networks, Inc. (a) |
196,800 |
3,644 |
|
Riverbed Technology, Inc. (a) |
755,550 |
15,353 |
|
|
18,997 |
||
Electronic Equipment & Components - 1.1% |
|||
Trimble Navigation Ltd. (a) |
630,200 |
22,731 |
|
Internet Software & Services - 2.4% |
|||
Equinix, Inc. (a)(d) |
93,900 |
18,663 |
|
LinkedIn Corp. (a) |
16,500 |
2,641 |
|
Rackspace Hosting, Inc. (a) |
398,400 |
14,538 |
|
Trulia, Inc. (a) |
69,100 |
2,671 |
|
Velti PLC (a)(f) |
215,084 |
4 |
|
Yahoo!, Inc. (a) |
271,600 |
9,411 |
|
Yelp, Inc. (a) |
43,000 |
2,844 |
|
|
50,772 |
||
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
INFORMATION TECHNOLOGY - continued |
|||
IT Services - 1.2% |
|||
Acxiom Corp. (a) |
297,946 |
$ 6,772 |
|
Alliance Data Systems Corp. (a) |
41,000 |
10,498 |
|
Virtusa Corp. (a) |
283,800 |
9,709 |
|
|
26,979 |
||
Semiconductors & Semiconductor Equipment - 1.7% |
|||
Altera Corp. |
99,900 |
3,310 |
|
Cree, Inc. (a) |
290,000 |
13,955 |
|
NXP Semiconductors NV (a) |
54,200 |
3,366 |
|
RF Micro Devices, Inc. (a) |
936,000 |
8,808 |
|
Semtech Corp. (a) |
309,100 |
8,018 |
|
|
37,457 |
||
Software - 6.2% |
|||
ANSYS, Inc. (a) |
256,900 |
18,869 |
|
Autodesk, Inc. (a) |
193,500 |
10,134 |
|
Citrix Systems, Inc. (a) |
80,995 |
5,019 |
|
CommVault Systems, Inc. (a) |
215,654 |
10,550 |
|
Fair Isaac Corp. |
136,700 |
8,052 |
|
Imperva, Inc. (a) |
96,650 |
2,018 |
|
MICROS Systems, Inc. (a) |
291,200 |
15,556 |
|
Nuance Communications, Inc. (a)(d) |
643,434 |
10,414 |
|
Parametric Technology Corp. (a) |
438,700 |
16,144 |
|
Rovi Corp. (a) |
417,400 |
10,089 |
|
SolarWinds, Inc. (a) |
222,180 |
8,685 |
|
Synopsys, Inc. (a) |
466,000 |
17,936 |
|
|
133,466 |
||
Technology Hardware, Storage & Peripherals - 1.6% |
|||
Cray, Inc. (a) |
247,800 |
6,948 |
|
EMC Corp. |
381,600 |
10,135 |
|
NCR Corp. (a) |
548,800 |
17,924 |
|
|
35,007 |
||
TOTAL INFORMATION TECHNOLOGY |
325,409 |
||
MATERIALS - 7.7% |
|||
Chemicals - 4.6% |
|||
Airgas, Inc. |
230,004 |
24,454 |
|
FMC Corp. |
231,540 |
17,727 |
|
International Flavors & Fragrances, Inc. |
38,600 |
3,831 |
|
RPM International, Inc. |
327,800 |
14,118 |
|
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
MATERIALS - continued |
|||
Chemicals - continued |
|||
Sherwin-Williams Co. |
61,631 |
$ 12,610 |
|
Sigma Aldrich Corp. |
39,200 |
3,862 |
|
W.R. Grace & Co. (a) |
244,997 |
22,559 |
|
|
99,161 |
||
Containers & Packaging - 1.6% |
|||
Aptargroup, Inc. |
201,956 |
13,448 |
|
Rock-Tenn Co. Class A |
201,000 |
20,307 |
|
|
33,755 |
||
Metals & Mining - 1.5% |
|||
Carpenter Technology Corp. |
171,600 |
10,723 |
|
Reliance Steel & Aluminum Co. |
309,085 |
22,239 |
|
|
32,962 |
||
TOTAL MATERIALS |
165,878 |
||
TELECOMMUNICATION SERVICES - 0.5% |
|||
Wireless Telecommunication Services - 0.5% |
|||
SBA Communications Corp. Class A (a) |
19,310 |
1,960 |
|
T-Mobile U.S., Inc. (a) |
59,300 |
2,036 |
|
Telephone & Data Systems, Inc. |
210,600 |
5,836 |
|
|
9,832 |
||
UTILITIES - 4.1% |
|||
Electric Utilities - 2.0% |
|||
Hawaiian Electric Industries, Inc. (d) |
222,700 |
5,356 |
|
OGE Energy Corp. |
587,900 |
21,594 |
|
PNM Resources, Inc. |
269,038 |
7,657 |
|
Portland General Electric Co. |
229,900 |
7,603 |
|
UIL Holdings Corp. |
28,200 |
1,043 |
|
|
43,253 |
||
Gas Utilities - 0.3% |
|||
National Fuel Gas Co. |
102,800 |
7,710 |
|
Independent Power Producers & Energy Traders - 0.8% |
|||
Black Hills Corp. |
164,000 |
9,458 |
|
Dynegy, Inc. (a) |
210,400 |
7,090 |
|
|
16,548 |
||
Multi-Utilities - 0.7% |
|||
MDU Resources Group, Inc. |
479,575 |
16,248 |
|
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
UTILITIES - continued |
|||
Water Utilities - 0.3% |
|||
American Water Works Co., Inc. |
114,720 |
$ 5,577 |
|
TOTAL UTILITIES |
89,336 |
||
TOTAL COMMON STOCKS (Cost $1,830,080) |
|
U.S. Treasury Obligations - 0.0% |
||||
|
Principal Amount (000s) |
|
||
U.S. Treasury Bills, yield at date of purchase 0.02% to 0.03% 6/19/14 (e) |
|
$ 1,140 |
|
Money Market Funds - 5.0% |
|||
Shares |
|
||
Fidelity Cash Central Fund, 0.10% (b) |
52,239,735 |
52,240 |
|
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) |
55,202,374 |
55,202 |
|
TOTAL MONEY MARKET FUNDS (Cost $107,442) |
|
||
TOTAL INVESTMENT PORTFOLIO - 102.6% (Cost $1,938,662) |
2,210,432 |
||
NET OTHER ASSETS (LIABILITIES) - (2.6)% |
(56,356) |
||
NET ASSETS - 100% |
$ 2,154,076 |
Futures Contracts |
|||||
|
Expiration Date |
Underlying Face Amount at Value (000s) |
Unrealized Appreciation/ |
||
Purchased |
|||||
Equity Index Contracts |
|||||
7 CME E-mini S&P MidCap 400 Index Contracts (United States) |
June 2014 |
$ 964 |
$ 13 |
|
The face value of futures purchased as a percentage of net assets is 0% |
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) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At period end, the value of securities pledged amounted to $402,000. |
(f) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $4,000 or 0.0% of net assets. |
Additional information on each restricted holding is as follows: |
Security |
Acquisition Date |
Acquisition Cost (000s) |
Velti PLC |
4/19/13 |
$ 323 |
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 |
$ 22 |
Fidelity Securities Lending Cash Central Fund |
55 |
Total |
$ 77 |
Other Information |
The following is a summary of the inputs used, as of May 31, 2014, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
||||
Description |
Total |
Level 1 |
Level 2 |
Level 3 |
Investments in Securities: |
||||
Equities: |
||||
Consumer Discretionary |
$ 262,076 |
$ 262,076 |
$ - |
$ - |
Consumer Staples |
69,503 |
69,503 |
- |
- |
Energy |
139,808 |
139,808 |
- |
- |
Financials |
481,946 |
468,132 |
13,814 |
- |
Health Care |
200,288 |
200,288 |
- |
- |
Industrials |
357,774 |
357,774 |
- |
- |
Information Technology |
325,409 |
325,405 |
4 |
- |
Materials |
165,878 |
165,878 |
- |
- |
Telecommunication Services |
9,832 |
9,832 |
- |
- |
Utilities |
89,336 |
89,336 |
- |
- |
U.S. Government and Government Agency Obligations |
1,140 |
- |
1,140 |
- |
Money Market Funds |
107,442 |
107,442 |
- |
- |
Total Investments in Securities: |
$ 2,210,432 |
$ 2,195,474 |
$ 14,958 |
$ - |
Derivative Instruments: |
||||
Assets |
||||
Futures Contracts |
$ 13 |
$ 13 |
$ - |
$ - |
Value of Derivative Instruments |
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of May 31, 2014. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements. |
Primary Risk Exposure / |
Value |
|
|
Asset |
Liability |
Equity Risk |
||
Futures Contracts (a) |
$ 13 |
$ - |
Total Value of Derivatives |
$ 13 |
$ - |
(a) Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. Only the period end receivable or payable for daily variation margin and net unrealized appreciation (depreciation) are presented in the Statement of Assets and Liabilities. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Amounts in thousands (except per-share amounts) |
May 31, 2014 (Unaudited) |
|
|
|
|
Assets |
|
|
Investment in securities, at value (including securities loaned of $53,825) - See accompanying schedule: Unaffiliated issuers (cost $1,831,220) |
$ 2,102,990 |
|
Fidelity Central Funds (cost $107,442) |
107,442 |
|
Total Investments (cost $1,938,662) |
|
$ 2,210,432 |
Cash |
|
52 |
Receivable for investments sold |
|
40,897 |
Receivable for fund shares sold |
|
843 |
Dividends receivable |
|
1,202 |
Distributions receivable from Fidelity Central Funds |
|
14 |
Prepaid expenses |
|
1 |
Other receivables |
|
22 |
Total assets |
|
2,253,463 |
|
|
|
Liabilities |
|
|
Payable for investments purchased |
$ 39,114 |
|
Payable for fund shares redeemed |
2,970 |
|
Accrued management fee |
995 |
|
Distribution and service plan fees payable |
634 |
|
Payable for daily variation margin for derivative instruments |
8 |
|
Other affiliated payables |
425 |
|
Other payables and accrued expenses |
39 |
|
Collateral on securities loaned, at value |
55,202 |
|
Total liabilities |
|
99,387 |
|
|
|
Net Assets |
|
$ 2,154,076 |
Net Assets consist of: |
|
|
Paid in capital |
|
$ 2,254,340 |
Distributions in excess of net investment income |
|
(2,469) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions |
|
(369,583) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies |
|
271,788 |
Net Assets |
|
$ 2,154,076 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Amounts in thousands (except per-share amounts) |
May 31, 2014 (Unaudited) |
|
|
|
|
Calculation of Maximum Offering Price Class A: |
|
$ 30.25 |
|
|
|
Maximum offering price per share (100/94.25 of $30.25) |
|
$ 32.10 |
Class T: |
|
$ 30.50 |
|
|
|
Maximum offering price per share (100/96.50 of $30.50) |
|
$ 31.61 |
Class B: |
|
$ 28.16 |
|
|
|
Class C: |
|
$ 28.18 |
|
|
|
Fidelity Stock Selector Mid Cap Fund: |
|
$ 31.49 |
|
|
|
Institutional Class: |
|
$ 31.56 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Amounts in thousands Six months ended May 31, 2014 (Unaudited) |
||
|
|
|
Investment Income |
|
|
Dividends |
|
$ 13,866 |
Income from Fidelity Central Funds |
|
77 |
Total income |
|
13,943 |
|
|
|
Expenses |
|
|
Management fee |
$ 5,939 |
|
Performance adjustment |
75 |
|
Transfer agent fees |
2,224 |
|
Distribution and service plan fees |
3,870 |
|
Accounting and security lending fees |
330 |
|
Custodian fees and expenses |
31 |
|
Independent trustees' compensation |
5 |
|
Registration fees |
69 |
|
Audit |
44 |
|
Legal |
9 |
|
Miscellaneous |
5 |
|
Total expenses before reductions |
12,601 |
|
Expense reductions |
(44) |
12,557 |
Net investment income (loss) |
|
1,386 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: |
|
|
Investment securities: |
|
|
Unaffiliated issuers |
169,510 |
|
Foreign currency transactions |
9 |
|
Futures contracts |
(148) |
|
Total net realized gain (loss) |
|
169,371 |
Change in net unrealized appreciation (depreciation) on: Investment securities |
(33,343) |
|
Assets and liabilities in foreign currencies |
(5) |
|
Futures contracts |
59 |
|
Total change in net unrealized appreciation (depreciation) |
|
(33,289) |
Net gain (loss) |
|
136,082 |
Net increase (decrease) in net assets resulting from operations |
|
$ 137,468 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Amounts in thousands |
Six months ended |
Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) |
$ 1,386 |
$ 5,714 |
Net realized gain (loss) |
169,371 |
287,217 |
Change in net unrealized appreciation (depreciation) |
(33,289) |
209,089 |
Net increase (decrease) in net assets resulting |
137,468 |
502,020 |
Distributions to shareholders from net investment income |
(1,252) |
(8,172) |
Distributions to shareholders from net realized gain |
- |
(2,873) |
Total distributions |
(1,252) |
(11,045) |
Share transactions - net increase (decrease) |
(121,843) |
(34,691) |
Total increase (decrease) in net assets |
14,373 |
456,284 |
|
|
|
Net Assets |
|
|
Beginning of period |
2,139,703 |
1,683,419 |
End of period (including distributions in excess of net investment income of $2,469 and distributions in excess of net investment income of $2,603, respectively) |
$ 2,154,076 |
$ 2,139,703 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 28.37 |
$ 22.16 |
$ 19.15 |
$ 19.22 |
$ 15.75 |
$ 10.52 |
Income from Investment |
|
|
|
|
|
|
Net investment income (loss) E |
.03 |
.10 |
.09 |
.08H |
(.02) |
.03 |
Net realized and unrealized gain (loss) |
1.86 |
6.29 |
3.02 |
(.15) |
3.55 |
5.20 |
Total from investment operations |
1.89 |
6.39 |
3.11 |
(.07) |
3.53 |
5.23 |
Distributions from net investment income |
(.01) |
(.14) |
(.10) |
- |
(.03) I |
- |
Distributions from net realized gain |
- |
(.04) |
- |
- |
(.03) I |
- |
Total distributions |
(.01) |
(.18) |
(.10) |
- |
(.06) |
- |
Net asset value, end of period |
$ 30.25 |
$ 28.37 |
$ 22.16 |
$ 19.15 |
$ 19.22 |
$ 15.75 |
Total Return B, C, D |
6.65% |
29.07% |
16.32% |
(.36)% |
22.48% |
49.71% |
Ratios to Average Net Assets F, J |
|
|
|
|
|
|
Expenses before reductions |
1.07% A |
.95% |
.94% |
.92% |
.86% |
.83% |
Expenses net of fee waivers, if any |
1.07% A |
.95% |
.94% |
.92% |
.86% |
.83% |
Expenses net of all reductions |
1.06% A |
.92% |
.94% |
.91% |
.84% |
.81% |
Net investment income (loss) |
.23% A |
.39% |
.41% |
.39% H |
(.12)% |
.25% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 698 |
$ 692 |
$ 593 |
$ 644 |
$ 945 |
$ 906 |
Portfolio turnover rate G |
91% A |
79% K |
72% |
198% |
141% |
244% |
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 Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a large, non-recurring dividend which amounted to $.05 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .12%.
I The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
K The portfolio turnover rate does not include the assets acquired in the merger.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 28.63 |
$ 22.36 |
$ 19.30 |
$ 19.41 |
$ 15.89 |
$ 10.64 |
Income from Investment |
|
|
|
|
|
|
Net investment income (loss) E |
- L |
.04 |
.05 |
.04H |
(.05) |
.01 |
Net realized and unrealized gain (loss) |
1.87 |
6.36 |
3.05 |
(.15) |
3.59 |
5.24 |
Total from investment operations |
1.87 |
6.40 |
3.10 |
(.11) |
3.54 |
5.25 |
Distributions from net investment income |
- |
(.09) |
(.04) |
- |
- |
- |
Distributions from net realized gain |
- |
(.04) |
- |
- |
(.02) I |
- |
Total distributions |
- |
(.13) |
(.04) |
- |
(.02) |
- |
Net asset value, end of period |
$ 30.50 |
$ 28.63 |
$ 22.36 |
$ 19.30 |
$ 19.41 |
$ 15.89 |
Total Return B, C, D |
6.53% |
28.80% |
16.12% |
(.57)% |
22.31% |
49.34% |
Ratios to Average Net Assets F, J |
|
|
|
|
|
|
Expenses before reductions |
1.29% A |
1.16% |
1.14% |
1.11% |
1.03% |
1.02% |
Expenses net of fee waivers, if any |
1.29% A |
1.16% |
1.14% |
1.11% |
1.03% |
1.02% |
Expenses net of all reductions |
1.29% A |
1.13% |
1.13% |
1.10% |
1.01% |
.99% |
Net investment income (loss) |
-% A,M |
.17% |
.22% |
.20% H |
(.30)% |
.07% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 803 |
$ 817 |
$ 755 |
$ 871 |
$ 1,282 |
$ 1,520 |
Portfolio turnover rate G |
91% A |
79% K |
72% |
198% |
141% |
244% |
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 Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a large, non-recurring dividend which amounted to $.05 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.07)%.
I The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
K The portfolio turnover rate does not include the assets acquired in the merger.
L Amount represents less than $.01per share.
M Amount represents less than .01%.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 26.51 |
$ 20.71 |
$ 17.94 |
$ 18.15 |
$ 14.93 |
$ 10.05 |
Income from Investment |
|
|
|
|
|
|
Net investment income (loss) E |
(.08) |
(.10) |
(.07) |
(.07) H |
(.15) |
(.06) |
Net realized and unrealized gain (loss) |
1.73 |
5.90 |
2.84 |
(.14) |
3.37 |
4.94 |
Total from investment operations |
1.65 |
5.80 |
2.77 |
(.21) |
3.22 |
4.88 |
Distributions from net investment income |
- |
- |
- |
- |
- |
- |
Distributions from net realized gain |
- |
- |
- |
- |
- |
- |
Total distributions |
- |
- |
- |
- |
- |
- |
Net asset value, end of period |
$ 28.16 |
$ 26.51 |
$ 20.71 |
$ 17.94 |
$ 18.15 |
$ 14.93 |
Total Return B, C, D |
6.22% |
28.01% |
15.44% |
(1.16)% |
21.57% |
48.56% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions |
1.91% A |
1.76% |
1.73% |
1.71% |
1.63% |
1.59% |
Expenses net of fee waivers, if any |
1.91% A |
1.76% |
1.73% |
1.71% |
1.63% |
1.59% |
Expenses net of all reductions |
1.90% A |
1.74% |
1.73% |
1.70% |
1.61% |
1.57% |
Net investment income (loss) |
(.61)% A |
(.43)% |
(.38)% |
(.40)% H |
(.90)% |
(.51)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 18 |
$ 21 |
$ 22 |
$ 28 |
$ 75 |
$ 131 |
Portfolio turnover rate G |
91% A |
79% J |
72% |
198% |
141% |
244% |
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 Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a large, non-recurring dividend which amounted to $.05 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.67)%.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J The portfolio turnover rate does not include the assets acquired in the merger.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 26.52 |
$ 20.73 |
$ 17.95 |
$ 18.15 |
$ 14.93 |
$ 10.05 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E |
(.07) |
(.09) |
(.06) |
(.07) H |
(.14) |
(.06) |
Net realized and unrealized gain (loss) |
1.73 |
5.91 |
2.84 |
(.13) |
3.36 |
4.94 |
Total from investment operations |
1.66 |
5.82 |
2.78 |
(.20) |
3.22 |
4.88 |
Distributions from net investment income |
- |
(.02) |
- |
- |
- |
- |
Distributions from net realized gain |
- |
(.01) |
- |
- |
- |
- |
Total distributions |
- |
(.03) |
- |
- |
- |
- |
Net asset value, end of period |
$ 28.18 |
$ 26.52 |
$ 20.73 |
$ 17.95 |
$ 18.15 |
$ 14.93 |
Total Return B, C, D |
6.26% |
28.09% |
15.49% |
(1.10)% |
21.57% |
48.56% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions |
1.82% A |
1.69% |
1.68% |
1.66% |
1.60% |
1.58% |
Expenses net of fee waivers, if any |
1.82% A |
1.69% |
1.68% |
1.66% |
1.60% |
1.58% |
Expenses net of all reductions |
1.81% A |
1.67% |
1.68% |
1.65% |
1.58% |
1.55% |
Net investment income (loss) |
(.52)% A |
(.36)% |
(.33)% |
(.35)% H |
(.86)% |
(.50)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 172 |
$ 172 |
$ 141 |
$ 150 |
$ 189 |
$ 186 |
Portfolio turnover rate G |
91% A |
79% J |
72% |
198% |
141% |
244% |
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 Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a large, non-recurring dividend which amounted to $.05 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.62)%.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J The portfolio turnover rate does not include the assets acquired in the merger.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended |
Years ended |
|
|
(Unaudited) |
2013 |
2012G |
Selected Per-Share Data |
|
|
|
Net asset value, beginning of period G |
$ 29.56 |
$ 23.14 |
$ 21.20 |
Income from Investment Operations |
|
|
|
Net investment income (loss) D |
.07 |
.17 |
.09 |
Net realized and unrealized gain (loss) |
1.93 |
6.54 |
1.85 |
Total from investment operations |
2.00 |
6.71 |
1.94 |
Distributions from net investment income |
(.07) |
(.25) |
- |
Distributions from net realized gain |
- |
(.04) |
- |
Total distributions |
(.07) |
(.29) |
- |
Net asset value, end of period |
$ 31.49 |
$ 29.56 |
$ 23.14 |
Total Return B, C |
6.78% |
29.36% |
9.15% |
Ratios to Average Net Assets E, H |
|
|
|
Expenses before reductions |
.83% A |
.71% |
.59% A |
Expenses net of fee waivers, if any |
.83% A |
.71% |
.59% A |
Expenses net of all reductions |
.83% A |
.69% |
.58% A |
Net investment income (loss) |
.47% A |
.62% |
.86% A |
Supplemental Data |
|
|
|
Net assets, end of period (in millions) |
$ 232 |
$ 225 |
$ 1 |
Portfolio turnover rateF |
91% A |
79% I |
72% |
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 June 6, 2012 (commencement of sale of shares) to November 30, 2012.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I The portfolio turnover rate does not include the assets acquired in the merger.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 29.64 |
$ 23.14 |
$ 20.01 |
$ 20.02 |
$ 16.40 |
$ 10.92 |
Income from Investment |
|
|
|
|
|
|
Net investment income (loss) D |
.08 |
.18 |
.15 |
.14G |
.04 |
.08 |
Net realized and unrealized gain (loss) |
1.92 |
6.56 |
3.15 |
(.15) |
3.69 |
5.40 |
Total from investment operations |
2.00 |
6.74 |
3.30 |
(.01) |
3.73 |
5.48 |
Distributions from net investment income |
(.08) |
(.20) |
(.17) |
- |
(.08) H |
- |
Distributions from net realized gain |
- |
(.04) |
- |
- |
(.03) H |
- |
Total distributions |
(.08) |
(.24) |
(.17) |
- |
(.11) |
- |
Net asset value, end of period |
$ 31.56 |
$ 29.64 |
$ 23.14 |
$ 20.01 |
$ 20.02 |
$ 16.40 |
Total Return B, C |
6.77% |
29.44% |
16.66% |
(.05)% |
22.86% |
50.18% |
Ratios to Average Net Assets E, I |
|
|
|
|
|
|
Expenses before reductions |
.80% A |
.67% |
.65% |
.62% |
.54% |
.50% |
Expenses net of fee waivers, if any |
.80% A |
.67% |
.65% |
.62% |
.54% |
.50% |
Expenses net of all reductions |
.80% A |
.65% |
.64% |
.61% |
.52% |
.47% |
Net investment income (loss) |
.49% A |
.66% |
.71% |
.69% G |
.20% |
.59% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 230 |
$ 214 |
$ 172 |
$ 234 |
$ 354 |
$ 319 |
Portfolio turnover rate F |
91% A |
79% J |
72% |
198% |
141% |
244% |
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 Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .42%.
H The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J The portfolio turnover rate does not include the assets acquired in the merger.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
For the period ended May 31, 2014 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor® Stock Selector Mid Cap Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, Fidelity Stock Selector Mid Cap Fund and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. U.S. government and government agency obligations are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded and are categorized as Level 1 in the hierarchy. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of May 31, 2014 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to futures contracts, foreign currency transactions, passive foreign investment companies (PFIC), market discount, partnerships, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation |
$ 317,652 |
Gross unrealized depreciation |
(47,278) |
Net unrealized appreciation (depreciation) on securities and other investments |
$ 270,374 |
Tax cost |
$ 1,940,058 |
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.
Fiscal year of expiration |
|
2015 |
$ (1,870) |
2016 |
(389,648) |
2017 |
(148,171) |
Total capital loss carryforward |
$ (539,689) |
The Fund acquired $15,643 of its capital loss carryforward as part of a merger in a prior period. The losses acquired that will be available to offset future capital gains of the Fund will be limited to approximately $935 per year.
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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Restricted Securities - continued
transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
The Fund used derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
The Fund's use of derivatives increased or decreased its exposure to the following risks:
Equity Risk |
Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Counterparty credit risk related to exchange-traded futures contracts may be mitigated by the protection provided by the exchange on which they trade.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and
Semiannual Report
4. Derivative Instruments - continued
Risk Exposures and the Use of Derivative Instruments - continued
Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent daily payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable, if any, is included in daily variation margin for derivative instruments in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts." The underlying face amount at value reflects each contract's exposure to the underlying instrument or index at period end and is representative of volume of activity during the period. Securities deposited to meet initial margin requirements are identified in the Schedule of Investments.
During the period the Fund recognized net realized gain (loss) of $(148) and a change in net unrealized appreciation (depreciation) of $59 related to its investment in futures contracts. These amounts are included in the Statement of Operations.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $962,959 and $1,091,844, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
6. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of the Institutional Class of the Fund as compared to its benchmark index, the S&P MidCap 400® Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .56% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
|
Distribution |
Service |
Total Fees |
Retained |
Class A |
-% |
.25% |
$ 875 |
$ 67 |
Class T |
.25% |
.25% |
2,029 |
19 |
Class B |
.75% |
.25% |
97 |
73 |
Class C |
.75% |
.25% |
869 |
26 |
|
|
|
$ 3,870 |
$ 185 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
|
Retained |
Class A |
$ 21 |
Class T |
11 |
Class B* |
5 |
Class C* |
2 |
|
$ 39 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
|
Amount |
% of |
Class A |
$ 753 |
.22 |
Class T |
774 |
.19 |
Class B |
29 |
.30 |
Class C |
185 |
.21 |
Fidelity Stock Selector Mid Cap Fund |
259 |
.23 |
Institutional Class |
224 |
.20 |
|
$ 2,224 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
6. Fees and Other Transactions with Affiliates - continued
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $17 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $2 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $55. During the period, there were no securities loaned to FCM.
Semiannual Report
9. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $42 for the period.
In addition, the investment adviser reimbursed a portion of the Fund's operating expenses during the period in the amount of $2.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
|
Six months ended |
Year ended |
From net investment income |
|
|
Class A |
$ 146 |
$ 3,606 |
Class T |
- |
2,972 |
Class C |
- |
121 |
Fidelity Stock Selector Mid Cap Fund |
530 |
16 |
Institutional Class |
576 |
1,457 |
Total |
$ 1,252 |
$ 8,172 |
From net realized gain |
|
|
Class A |
$ - |
$ 1,106 |
Class T |
- |
1,403 |
Class C |
- |
54 |
Fidelity Stock Selector Mid Cap Fund |
- |
3 |
Institutional Class |
- |
307 |
Total |
$ - |
$ 2,873 |
11. Share Transactions.
Transactions for each class of shares were as follows:
|
Shares |
Dollars |
||
|
Six months ended |
Year ended |
Six months ended |
Year ended |
Class A |
|
|
|
|
Shares sold |
688 |
1,576 |
$ 20,297 |
$ 39,740 |
Issued in exchange for shares of Fidelity Advisor Growth Strategies Fund |
- |
483 |
- |
11,196 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
11. Share Transactions - continued
|
Shares |
Dollars |
||
|
Six months ended |
Year ended |
Six months ended |
Year ended |
Class A |
|
|
|
|
Issued in exchange for shares of Fidelity Mid Cap Growth Fund |
410 |
$ 9,497 |
||
Reinvestment of distributions |
5 |
196 |
134 |
4,309 |
Shares redeemed |
(2,002) |
(5,036) |
(59,052) |
(125,748) |
Net increase (decrease) |
(1,309) |
(2,371) |
$ (38,621) |
$ (61,006) |
Class T |
|
|
|
|
Shares sold |
1,108 |
2,840 |
$ 33,060 |
$ 71,906 |
Issued in exchange for shares of Fidelity Advisor Growth Strategies Fund |
- |
643 |
- |
15,054 |
Issued in exchange for shares of Fidelity Mid Cap Growth Fund |
- |
182 |
- |
4,267 |
Reinvestment of distributions |
- |
188 |
- |
4,170 |
Shares redeemed |
(3,293) |
(9,076) |
(97,938) |
(228,859) |
Net increase (decrease) |
(2,185) |
(5,223) |
$ (64,878) |
$ (133,462) |
Class B |
|
|
|
|
Shares sold |
3 |
4 |
$ 73 |
$ 95 |
Issued in exchange for shares of Fidelity Advisor Growth Strategies Fund |
- |
75 |
- |
1,640 |
Issued in exchange for shares of Fidelity Mid Cap Growth Fund |
- |
28 |
- |
614 |
Shares redeemed |
(149) |
(363) |
(4,080) |
(8,472) |
Net increase (decrease) |
(146) |
(256) |
$ (4,007) |
$ (6,123) |
Class C |
|
|
|
|
Shares sold |
106 |
236 |
$ 2,913 |
$ 5,603 |
Issued in exchange for shares of Fidelity Advisor Growth Strategies Fund |
- |
209 |
- |
4,553 |
Issued in exchange for shares of Fidelity Mid Cap Growth Fund |
- |
219 |
- |
4,769 |
Reinvestment of distributions |
- |
7 |
- |
152 |
Shares redeemed |
(473) |
(993) |
(13,051) |
(23,227) |
Net increase (decrease) |
(367) |
(322) |
$ (10,138) |
$ (8,150) |
Semiannual Report
11. Share Transactions - continued
|
Shares |
Dollars |
||
|
Six months ended |
Year ended |
Six months ended |
Year ended |
Fidelity Stock Selector Mid Cap Fund |
|
|
|
|
Shares sold |
563 |
1,327 |
$ 17,344 |
$ 35,648 |
Issued in exchange for shares of Fidelity Mid Cap Growth Fund |
- |
8,810 |
- |
212,139 |
Reinvestment of distributions |
18 |
1 |
518 |
16 |
Shares redeemed |
(801) |
(2,600) |
(24,466) |
(67,266) |
Net increase (decrease) |
(220) |
7,538 |
$ (6,604) |
$ 180,537 |
Institutional Class |
|
|
|
|
Shares sold |
826 |
1,231 |
$ 25,335 |
$ 32,432 |
Issued in exchange for shares of Fidelity Advisor Growth Strategies Fund |
- |
20 |
- |
479 |
Issued in exchange for shares of Fidelity Mid Cap Growth Fund |
- |
37 |
- |
888 |
Reinvestment of distributions |
17 |
68 |
502 |
1,564 |
Shares redeemed |
(766) |
(1,567) |
(23,432) |
(41,850) |
Net increase (decrease) |
77 |
(211) |
$ 2,405 |
$ (6,487) |
12. Merger Information.
On January 11, 2013, the Fund acquired all of the assets and assumed all of the liabilities of Fidelity Advisor® Growth Strategies Fund and Fidelity Mid Cap Growth Fund ("Target Funds") pursuant to agreements and plans of reorganization approved by the Board of Trustees ("The Board") on June 12, 2012. The acquisition was accomplished by an exchange of shares of each class of the Fund for corresponding shares then outstanding of the Target Funds at their net asset value on the acquisition date. The reorganization provides shareholders of the Target Funds access to a larger portfolio with a similar investment objective. The reorganization qualified as a tax-free reorganization for federal income tax purposes with no gain or loss recognized to the funds or their shareholders. The Target Funds' net assets of $32,922, including securities of $32,974 and unrealized appreciation of $2,113 for Fidelity Advisor Growth Strategies Fund; and net assets of $232,174, including securities of $233,755 and unrealized appreciation of $14,520 for Fidelity Mid Cap Growth Fund were combined with the Fund's net assets of $1,716,041 for total net assets after the acquisition of $1,981,137.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
12. Merger Information - continued
Pro forma results of operations of the combined entity for the entire period ended November 30, 2013, as though the acquisition had occurred as of the beginning of the year (rather than on the actual acquisition date), are as follows:
Net investment income (loss) |
$ 6,032 |
Total net realized gain (loss) |
288,183 |
Total change in net unrealized appreciation (depreciation) |
219,225 |
Net increase (decrease) in net assets resulting from operations |
$ 513,440 |
Because the combined investment portfolios have been managed as a single portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of the acquired fund that have been included in the Fund's accompanying Statement of Operations since January 11, 2013.
13. 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
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Brown Brothers Harriman & Co.
Boston, MA
(Fidelity Investment logo)(registered trademark)
MCI-USAN-0714 1.786800.111
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor® Stock Selector
Mid Cap
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
May 31, 2014
(Fidelity Cover Art)
Shareholder Expense Example |
An example of shareholder expenses. |
|
Investment Changes |
A summary of major shifts in the fund's investments over the past six months. |
|
Investments |
A complete list of the fund's investments with their market values. |
|
Financial Statements |
Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
|
Notes |
Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (December 1, 2013 to May 31, 2014).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
|
Annualized |
Beginning |
Ending |
Expenses Paid |
Class A |
1.07% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,066.50 |
$ 5.51 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,019.60 |
$ 5.39 |
Class T |
1.29% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,065.30 |
$ 6.64 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,018.50 |
$ 6.49 |
Class B |
1.91% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,062.20 |
$ 9.82 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,015.41 |
$ 9.60 |
Class C |
1.82% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,062.60 |
$ 9.36 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,015.86 |
$ 9.15 |
Fidelity Stock Selector Mid Cap Fund |
.83% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,067.80 |
$ 4.28 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,020.79 |
$ 4.18 |
Institutional Class |
.80% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,067.70 |
$ 4.12 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,020.94 |
$ 4.03 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
Semiannual Report
Top Ten Stocks as of May 31, 2014 |
||
|
% of fund's |
% of fund's net assets |
J.B. Hunt Transport Services, Inc. |
2.4 |
1.9 |
Roper Industries, Inc. |
1.9 |
1.5 |
Capital One Financial Corp. |
1.7 |
1.8 |
Hubbell, Inc. Class B |
1.5 |
1.7 |
Verisk Analytics, Inc. |
1.5 |
1.5 |
AMETEK, Inc. |
1.4 |
1.7 |
Cimarex Energy Co. |
1.2 |
0.9 |
Watsco, Inc. |
1.2 |
0.9 |
Airgas, Inc. |
1.1 |
1.1 |
Interactive Brokers Group, Inc. |
1.1 |
1.2 |
|
15.0 |
|
Top Five Market Sectors as of May 31, 2014 |
||
|
% of fund's |
% of fund's net assets |
Financials |
22.4 |
22.3 |
Industrials |
16.6 |
16.8 |
Information Technology |
15.1 |
15.6 |
Consumer Discretionary |
12.2 |
13.9 |
Health Care |
9.3 |
8.9 |
Asset Allocation (% of fund's net assets) |
|||||||
As of May 31, 2014 * |
As of November 30, 2013 ** |
||||||
Stocks and |
|
Stocks and |
|
||||
Short-Term |
|
Short-Term |
|
||||
* Foreign investments |
7.2% |
|
** Foreign investments |
8.5% |
|
Semiannual Report
Showing Percentage of Net Assets
Common Stocks - 97.6% |
|||
Shares |
Value (000s) |
||
CONSUMER DISCRETIONARY - 12.2% |
|||
Auto Components - 0.1% |
|||
Tenneco, Inc. (a) |
31,400 |
$ 2,002 |
|
Hotels, Restaurants & Leisure - 0.3% |
|||
Texas Roadhouse, Inc. Class A |
211,300 |
5,342 |
|
Household Durables - 2.8% |
|||
Jarden Corp. (a) |
317,115 |
17,942 |
|
Libbey, Inc. (a) |
269,118 |
7,253 |
|
NVR, Inc. (a) |
17,400 |
19,377 |
|
Tupperware Brands Corp. |
181,680 |
15,210 |
|
|
59,782 |
||
Internet & Catalog Retail - 0.6% |
|||
HomeAway, Inc. (a) |
80,600 |
2,482 |
|
Liberty Interactive Corp. Series A (a) |
348,310 |
10,146 |
|
|
12,628 |
||
Leisure Products - 0.8% |
|||
Brunswick Corp. |
278,800 |
12,016 |
|
Smith & Wesson Holding Corp. (a) |
304,600 |
4,837 |
|
|
16,853 |
||
Media - 0.8% |
|||
The Madison Square Garden Co. Class A (a) |
307,100 |
16,844 |
|
Multiline Retail - 1.3% |
|||
Dollar General Corp. (a) |
227,840 |
12,253 |
|
Dollar Tree, Inc. (a) |
313,878 |
16,645 |
|
|
28,898 |
||
Specialty Retail - 4.4% |
|||
Abercrombie & Fitch Co. Class A |
123,582 |
4,697 |
|
Cabela's, Inc. Class A (a)(d) |
231,000 |
14,144 |
|
Foot Locker, Inc. |
456,000 |
21,970 |
|
PetSmart, Inc. |
53,660 |
3,084 |
|
Ross Stores, Inc. |
223,010 |
15,265 |
|
Sally Beauty Holdings, Inc. (a) |
450,620 |
11,545 |
|
Sportsman's Warehouse Holdings, Inc. |
891,763 |
8,231 |
|
Williams-Sonoma, Inc. |
249,460 |
16,694 |
|
|
95,630 |
||
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
CONSUMER DISCRETIONARY - continued |
|||
Textiles, Apparel & Luxury Goods - 1.1% |
|||
PVH Corp. |
92,000 |
$ 12,110 |
|
Ralph Lauren Corp. |
78,100 |
11,987 |
|
|
24,097 |
||
TOTAL CONSUMER DISCRETIONARY |
262,076 |
||
CONSUMER STAPLES - 3.2% |
|||
Beverages - 0.1% |
|||
Monster Beverage Corp. (a) |
44,884 |
3,114 |
|
Food & Staples Retailing - 0.8% |
|||
United Natural Foods, Inc. (a) |
125,145 |
8,436 |
|
Whole Foods Market, Inc. |
215,442 |
8,239 |
|
|
16,675 |
||
Food Products - 2.3% |
|||
Hillshire Brands Co. |
166,400 |
8,866 |
|
Mead Johnson Nutrition Co. Class A |
77,900 |
6,970 |
|
The Hain Celestial Group, Inc. (a) |
96,700 |
8,773 |
|
The Hershey Co. |
63,900 |
6,220 |
|
TreeHouse Foods, Inc. (a) |
84,580 |
6,339 |
|
WhiteWave Foods Co. (a) |
398,400 |
12,546 |
|
|
49,714 |
||
TOTAL CONSUMER STAPLES |
69,503 |
||
ENERGY - 6.5% |
|||
Energy Equipment & Services - 1.9% |
|||
Dresser-Rand Group, Inc. (a) |
94,400 |
5,777 |
|
Dril-Quip, Inc. (a) |
129,000 |
13,186 |
|
Helmerich & Payne, Inc. |
123,980 |
13,632 |
|
Rowan Companies PLC |
250,610 |
7,759 |
|
|
40,354 |
||
Oil, Gas & Consumable Fuels - 4.6% |
|||
Cheniere Energy, Inc. (a) |
75,400 |
5,135 |
|
Cimarex Energy Co. |
195,400 |
25,232 |
|
Energen Corp. |
186,800 |
15,949 |
|
Genesis Energy LP |
134,800 |
7,684 |
|
HollyFrontier Corp. |
95,070 |
4,682 |
|
SM Energy Co. |
191,246 |
14,498 |
|
Stone Energy Corp. (a) |
183,000 |
8,123 |
|
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
ENERGY - continued |
|||
Oil, Gas & Consumable Fuels - continued |
|||
Targa Resources Corp. |
74,700 |
$ 8,588 |
|
Whiting Petroleum Corp. (a) |
133,100 |
9,563 |
|
|
99,454 |
||
TOTAL ENERGY |
139,808 |
||
FINANCIALS - 22.4% |
|||
Banks - 2.8% |
|||
City National Corp. |
156,410 |
11,119 |
|
Erste Group Bank AG |
51,774 |
1,799 |
|
Huntington Bancshares, Inc. |
2,189,478 |
20,296 |
|
Prosperity Bancshares, Inc. |
285,600 |
16,602 |
|
Synovus Financial Corp. |
334,227 |
7,707 |
|
The Jammu & Kashmir Bank Ltd. |
120,000 |
3,037 |
|
|
60,560 |
||
Capital Markets - 3.9% |
|||
ABG Sundal Collier ASA (a) |
3,100,000 |
2,920 |
|
KKR & Co. LP |
670,164 |
15,233 |
|
Lazard Ltd. Class A |
247,900 |
12,519 |
|
MLP AG |
1,566,600 |
10,848 |
|
Moelis & Co. Class A |
119,300 |
3,753 |
|
Oaktree Capital Group LLC Class A |
162,900 |
8,142 |
|
Och-Ziff Capital Management Group LLC Class A |
535,800 |
7,121 |
|
Raymond James Financial, Inc. |
329,700 |
15,957 |
|
Virtus Investment Partners, Inc. |
13,500 |
2,491 |
|
Vontobel Holdings AG |
150,000 |
5,536 |
|
|
84,520 |
||
Consumer Finance - 4.0% |
|||
ACOM Co. Ltd. (a)(d) |
3,590,200 |
13,814 |
|
Capital One Financial Corp. |
458,300 |
36,155 |
|
Cash America International, Inc. |
239,527 |
11,380 |
|
Navient Corp. |
542,316 |
8,569 |
|
SLM Corp. |
792,316 |
6,822 |
|
Springleaf Holdings, Inc. |
421,600 |
9,895 |
|
|
86,635 |
||
Diversified Financial Services - 1.1% |
|||
Interactive Brokers Group, Inc. |
1,011,767 |
23,291 |
|
Insurance - 2.1% |
|||
Arthur J. Gallagher & Co. |
243,200 |
11,146 |
|
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
FINANCIALS - continued |
|||
Insurance - continued |
|||
Direct Line Insurance Group PLC |
4,189,691 |
$ 17,789 |
|
Fairfax Financial Holdings Ltd. (sub. vtg.) |
29,800 |
13,420 |
|
St. James's Place Capital PLC |
237,200 |
3,111 |
|
|
45,466 |
||
Real Estate Investment Trusts - 7.6% |
|||
Acadia Realty Trust (SBI) |
149,500 |
4,125 |
|
Alexandria Real Estate Equities, Inc. |
150,775 |
11,472 |
|
Ashford Hospitality Prime, Inc. |
47,600 |
776 |
|
Corrections Corp. of America |
132,300 |
4,304 |
|
Cousins Properties, Inc. |
283,600 |
3,403 |
|
Essex Property Trust, Inc. |
37,764 |
6,834 |
|
Federal Realty Investment Trust (SBI) |
132,800 |
15,872 |
|
FelCor Lodging Trust, Inc. |
347,000 |
3,414 |
|
Kilroy Realty Corp. |
59,675 |
3,615 |
|
Liberty Property Trust (SBI) |
316,900 |
12,267 |
|
Mid-America Apartment Communities, Inc. |
197,700 |
14,304 |
|
National Retail Properties, Inc. (d) |
428,569 |
14,991 |
|
Piedmont Office Realty Trust, Inc. Class A |
322,500 |
6,005 |
|
Post Properties, Inc. |
154,900 |
7,923 |
|
Redwood Trust, Inc. (d) |
240,900 |
4,695 |
|
Senior Housing Properties Trust (SBI) |
454,000 |
10,887 |
|
SL Green Realty Corp. |
125,465 |
13,737 |
|
Sovran Self Storage, Inc. |
83,039 |
6,377 |
|
Taubman Centers, Inc. |
119,200 |
8,928 |
|
Weyerhaeuser Co. |
269,414 |
8,465 |
|
|
162,394 |
||
Real Estate Management & Development - 0.5% |
|||
Alexander & Baldwin, Inc. |
18,000 |
682 |
|
Altisource Portfolio Solutions SA (a) |
41,910 |
4,619 |
|
CBRE Group, Inc. (a) |
207,932 |
6,205 |
|
|
11,506 |
||
Thrifts & Mortgage Finance - 0.4% |
|||
Ocwen Financial Corp. (a) |
215,963 |
7,574 |
|
TOTAL FINANCIALS |
481,946 |
||
HEALTH CARE - 9.3% |
|||
Biotechnology - 1.4% |
|||
Alexion Pharmaceuticals, Inc. (a) |
58,000 |
9,647 |
|
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
HEALTH CARE - continued |
|||
Biotechnology - continued |
|||
Cubist Pharmaceuticals, Inc. |
200,000 |
$ 13,320 |
|
Grifols SA ADR |
200,000 |
8,324 |
|
|
31,291 |
||
Health Care Equipment & Supplies - 2.8% |
|||
Boston Scientific Corp. (a) |
1,450,000 |
18,604 |
|
Edwards Lifesciences Corp. (a) |
95,000 |
7,714 |
|
Intuitive Surgical, Inc. (a) |
15,000 |
5,546 |
|
Masimo Corp. (a) |
380,000 |
9,363 |
|
The Cooper Companies, Inc. |
145,000 |
18,708 |
|
|
59,935 |
||
Health Care Providers & Services - 1.3% |
|||
HCA Holdings, Inc. (a) |
128,000 |
6,783 |
|
Humana, Inc. |
63,000 |
7,841 |
|
MEDNAX, Inc. (a) |
220,000 |
12,679 |
|
|
27,303 |
||
Health Care Technology - 0.5% |
|||
Cerner Corp. (a) |
196,000 |
10,594 |
|
Life Sciences Tools & Services - 1.0% |
|||
Agilent Technologies, Inc. |
200,000 |
11,388 |
|
Illumina, Inc. (a) |
63,000 |
9,970 |
|
|
21,358 |
||
Pharmaceuticals - 2.3% |
|||
Actavis PLC (a) |
70,000 |
14,808 |
|
Perrigo Co. PLC |
58,000 |
8,016 |
|
Salix Pharmaceuticals Ltd. (a) |
170,000 |
19,394 |
|
The Medicines Company (a) |
272,000 |
7,589 |
|
|
49,807 |
||
TOTAL HEALTH CARE |
200,288 |
||
INDUSTRIALS - 16.6% |
|||
Aerospace & Defense - 2.0% |
|||
Meggitt PLC |
2,826,204 |
22,952 |
|
TransDigm Group, Inc. |
113,410 |
21,402 |
|
|
44,354 |
||
Building Products - 0.5% |
|||
A.O. Smith Corp. |
228,247 |
11,271 |
|
Construction & Engineering - 0.6% |
|||
MasTec, Inc. (a) |
389,100 |
14,008 |
|
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
INDUSTRIALS - continued |
|||
Electrical Equipment - 3.0% |
|||
Acuity Brands, Inc. |
18,736 |
$ 2,352 |
|
AMETEK, Inc. |
581,490 |
30,865 |
|
Hubbell, Inc. Class B |
270,740 |
31,677 |
|
|
64,894 |
||
Industrial Conglomerates - 1.9% |
|||
Roper Industries, Inc. |
286,320 |
40,566 |
|
Machinery - 2.7% |
|||
Cummins, Inc. |
141,800 |
21,685 |
|
Manitowoc Co., Inc. |
643,996 |
17,420 |
|
Valmont Industries, Inc. |
118,900 |
18,424 |
|
WABCO Holdings, Inc. (a) |
18 |
2 |
|
|
57,531 |
||
Professional Services - 1.5% |
|||
Verisk Analytics, Inc. (a) |
532,000 |
31,489 |
|
Road & Rail - 2.4% |
|||
J.B. Hunt Transport Services, Inc. |
660,540 |
51,295 |
|
Trading Companies & Distributors - 2.0% |
|||
W.W. Grainger, Inc. |
67,500 |
17,440 |
|
Watsco, Inc. |
247,700 |
24,926 |
|
|
42,366 |
||
TOTAL INDUSTRIALS |
357,774 |
||
INFORMATION TECHNOLOGY - 15.1% |
|||
Communications Equipment - 0.9% |
|||
Aruba Networks, Inc. (a) |
196,800 |
3,644 |
|
Riverbed Technology, Inc. (a) |
755,550 |
15,353 |
|
|
18,997 |
||
Electronic Equipment & Components - 1.1% |
|||
Trimble Navigation Ltd. (a) |
630,200 |
22,731 |
|
Internet Software & Services - 2.4% |
|||
Equinix, Inc. (a)(d) |
93,900 |
18,663 |
|
LinkedIn Corp. (a) |
16,500 |
2,641 |
|
Rackspace Hosting, Inc. (a) |
398,400 |
14,538 |
|
Trulia, Inc. (a) |
69,100 |
2,671 |
|
Velti PLC (a)(f) |
215,084 |
4 |
|
Yahoo!, Inc. (a) |
271,600 |
9,411 |
|
Yelp, Inc. (a) |
43,000 |
2,844 |
|
|
50,772 |
||
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
INFORMATION TECHNOLOGY - continued |
|||
IT Services - 1.2% |
|||
Acxiom Corp. (a) |
297,946 |
$ 6,772 |
|
Alliance Data Systems Corp. (a) |
41,000 |
10,498 |
|
Virtusa Corp. (a) |
283,800 |
9,709 |
|
|
26,979 |
||
Semiconductors & Semiconductor Equipment - 1.7% |
|||
Altera Corp. |
99,900 |
3,310 |
|
Cree, Inc. (a) |
290,000 |
13,955 |
|
NXP Semiconductors NV (a) |
54,200 |
3,366 |
|
RF Micro Devices, Inc. (a) |
936,000 |
8,808 |
|
Semtech Corp. (a) |
309,100 |
8,018 |
|
|
37,457 |
||
Software - 6.2% |
|||
ANSYS, Inc. (a) |
256,900 |
18,869 |
|
Autodesk, Inc. (a) |
193,500 |
10,134 |
|
Citrix Systems, Inc. (a) |
80,995 |
5,019 |
|
CommVault Systems, Inc. (a) |
215,654 |
10,550 |
|
Fair Isaac Corp. |
136,700 |
8,052 |
|
Imperva, Inc. (a) |
96,650 |
2,018 |
|
MICROS Systems, Inc. (a) |
291,200 |
15,556 |
|
Nuance Communications, Inc. (a)(d) |
643,434 |
10,414 |
|
Parametric Technology Corp. (a) |
438,700 |
16,144 |
|
Rovi Corp. (a) |
417,400 |
10,089 |
|
SolarWinds, Inc. (a) |
222,180 |
8,685 |
|
Synopsys, Inc. (a) |
466,000 |
17,936 |
|
|
133,466 |
||
Technology Hardware, Storage & Peripherals - 1.6% |
|||
Cray, Inc. (a) |
247,800 |
6,948 |
|
EMC Corp. |
381,600 |
10,135 |
|
NCR Corp. (a) |
548,800 |
17,924 |
|
|
35,007 |
||
TOTAL INFORMATION TECHNOLOGY |
325,409 |
||
MATERIALS - 7.7% |
|||
Chemicals - 4.6% |
|||
Airgas, Inc. |
230,004 |
24,454 |
|
FMC Corp. |
231,540 |
17,727 |
|
International Flavors & Fragrances, Inc. |
38,600 |
3,831 |
|
RPM International, Inc. |
327,800 |
14,118 |
|
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
MATERIALS - continued |
|||
Chemicals - continued |
|||
Sherwin-Williams Co. |
61,631 |
$ 12,610 |
|
Sigma Aldrich Corp. |
39,200 |
3,862 |
|
W.R. Grace & Co. (a) |
244,997 |
22,559 |
|
|
99,161 |
||
Containers & Packaging - 1.6% |
|||
Aptargroup, Inc. |
201,956 |
13,448 |
|
Rock-Tenn Co. Class A |
201,000 |
20,307 |
|
|
33,755 |
||
Metals & Mining - 1.5% |
|||
Carpenter Technology Corp. |
171,600 |
10,723 |
|
Reliance Steel & Aluminum Co. |
309,085 |
22,239 |
|
|
32,962 |
||
TOTAL MATERIALS |
165,878 |
||
TELECOMMUNICATION SERVICES - 0.5% |
|||
Wireless Telecommunication Services - 0.5% |
|||
SBA Communications Corp. Class A (a) |
19,310 |
1,960 |
|
T-Mobile U.S., Inc. (a) |
59,300 |
2,036 |
|
Telephone & Data Systems, Inc. |
210,600 |
5,836 |
|
|
9,832 |
||
UTILITIES - 4.1% |
|||
Electric Utilities - 2.0% |
|||
Hawaiian Electric Industries, Inc. (d) |
222,700 |
5,356 |
|
OGE Energy Corp. |
587,900 |
21,594 |
|
PNM Resources, Inc. |
269,038 |
7,657 |
|
Portland General Electric Co. |
229,900 |
7,603 |
|
UIL Holdings Corp. |
28,200 |
1,043 |
|
|
43,253 |
||
Gas Utilities - 0.3% |
|||
National Fuel Gas Co. |
102,800 |
7,710 |
|
Independent Power Producers & Energy Traders - 0.8% |
|||
Black Hills Corp. |
164,000 |
9,458 |
|
Dynegy, Inc. (a) |
210,400 |
7,090 |
|
|
16,548 |
||
Multi-Utilities - 0.7% |
|||
MDU Resources Group, Inc. |
479,575 |
16,248 |
|
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
UTILITIES - continued |
|||
Water Utilities - 0.3% |
|||
American Water Works Co., Inc. |
114,720 |
$ 5,577 |
|
TOTAL UTILITIES |
89,336 |
||
TOTAL COMMON STOCKS (Cost $1,830,080) |
|
U.S. Treasury Obligations - 0.0% |
||||
|
Principal Amount (000s) |
|
||
U.S. Treasury Bills, yield at date of purchase 0.02% to 0.03% 6/19/14 (e) |
|
$ 1,140 |
|
Money Market Funds - 5.0% |
|||
Shares |
|
||
Fidelity Cash Central Fund, 0.10% (b) |
52,239,735 |
52,240 |
|
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) |
55,202,374 |
55,202 |
|
TOTAL MONEY MARKET FUNDS (Cost $107,442) |
|
||
TOTAL INVESTMENT PORTFOLIO - 102.6% (Cost $1,938,662) |
2,210,432 |
||
NET OTHER ASSETS (LIABILITIES) - (2.6)% |
(56,356) |
||
NET ASSETS - 100% |
$ 2,154,076 |
Futures Contracts |
|||||
|
Expiration Date |
Underlying Face Amount at Value (000s) |
Unrealized Appreciation/ |
||
Purchased |
|||||
Equity Index Contracts |
|||||
7 CME E-mini S&P MidCap 400 Index Contracts (United States) |
June 2014 |
$ 964 |
$ 13 |
|
The face value of futures purchased as a percentage of net assets is 0% |
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) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At period end, the value of securities pledged amounted to $402,000. |
(f) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $4,000 or 0.0% of net assets. |
Additional information on each restricted holding is as follows: |
Security |
Acquisition Date |
Acquisition Cost (000s) |
Velti PLC |
4/19/13 |
$ 323 |
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 |
$ 22 |
Fidelity Securities Lending Cash Central Fund |
55 |
Total |
$ 77 |
Other Information |
The following is a summary of the inputs used, as of May 31, 2014, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
||||
Description |
Total |
Level 1 |
Level 2 |
Level 3 |
Investments in Securities: |
||||
Equities: |
||||
Consumer Discretionary |
$ 262,076 |
$ 262,076 |
$ - |
$ - |
Consumer Staples |
69,503 |
69,503 |
- |
- |
Energy |
139,808 |
139,808 |
- |
- |
Financials |
481,946 |
468,132 |
13,814 |
- |
Health Care |
200,288 |
200,288 |
- |
- |
Industrials |
357,774 |
357,774 |
- |
- |
Information Technology |
325,409 |
325,405 |
4 |
- |
Materials |
165,878 |
165,878 |
- |
- |
Telecommunication Services |
9,832 |
9,832 |
- |
- |
Utilities |
89,336 |
89,336 |
- |
- |
U.S. Government and Government Agency Obligations |
1,140 |
- |
1,140 |
- |
Money Market Funds |
107,442 |
107,442 |
- |
- |
Total Investments in Securities: |
$ 2,210,432 |
$ 2,195,474 |
$ 14,958 |
$ - |
Derivative Instruments: |
||||
Assets |
||||
Futures Contracts |
$ 13 |
$ 13 |
$ - |
$ - |
Value of Derivative Instruments |
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of May 31, 2014. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements. |
Primary Risk Exposure / |
Value |
|
|
Asset |
Liability |
Equity Risk |
||
Futures Contracts (a) |
$ 13 |
$ - |
Total Value of Derivatives |
$ 13 |
$ - |
(a) Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. Only the period end receivable or payable for daily variation margin and net unrealized appreciation (depreciation) are presented in the Statement of Assets and Liabilities. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Amounts in thousands (except per-share amounts) |
May 31, 2014 (Unaudited) |
|
|
|
|
Assets |
|
|
Investment in securities, at value (including securities loaned of $53,825) - See accompanying schedule: Unaffiliated issuers (cost $1,831,220) |
$ 2,102,990 |
|
Fidelity Central Funds (cost $107,442) |
107,442 |
|
Total Investments (cost $1,938,662) |
|
$ 2,210,432 |
Cash |
|
52 |
Receivable for investments sold |
|
40,897 |
Receivable for fund shares sold |
|
843 |
Dividends receivable |
|
1,202 |
Distributions receivable from Fidelity Central Funds |
|
14 |
Prepaid expenses |
|
1 |
Other receivables |
|
22 |
Total assets |
|
2,253,463 |
|
|
|
Liabilities |
|
|
Payable for investments purchased |
$ 39,114 |
|
Payable for fund shares redeemed |
2,970 |
|
Accrued management fee |
995 |
|
Distribution and service plan fees payable |
634 |
|
Payable for daily variation margin for derivative instruments |
8 |
|
Other affiliated payables |
425 |
|
Other payables and accrued expenses |
39 |
|
Collateral on securities loaned, at value |
55,202 |
|
Total liabilities |
|
99,387 |
|
|
|
Net Assets |
|
$ 2,154,076 |
Net Assets consist of: |
|
|
Paid in capital |
|
$ 2,254,340 |
Distributions in excess of net investment income |
|
(2,469) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions |
|
(369,583) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies |
|
271,788 |
Net Assets |
|
$ 2,154,076 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Amounts in thousands (except per-share amounts) |
May 31, 2014 (Unaudited) |
|
|
|
|
Calculation of Maximum Offering Price Class A: |
|
$ 30.25 |
|
|
|
Maximum offering price per share (100/94.25 of $30.25) |
|
$ 32.10 |
Class T: |
|
$ 30.50 |
|
|
|
Maximum offering price per share (100/96.50 of $30.50) |
|
$ 31.61 |
Class B: |
|
$ 28.16 |
|
|
|
Class C: |
|
$ 28.18 |
|
|
|
Fidelity Stock Selector Mid Cap Fund: |
|
$ 31.49 |
|
|
|
Institutional Class: |
|
$ 31.56 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Amounts in thousands Six months ended May 31, 2014 (Unaudited) |
||
|
|
|
Investment Income |
|
|
Dividends |
|
$ 13,866 |
Income from Fidelity Central Funds |
|
77 |
Total income |
|
13,943 |
|
|
|
Expenses |
|
|
Management fee |
$ 5,939 |
|
Performance adjustment |
75 |
|
Transfer agent fees |
2,224 |
|
Distribution and service plan fees |
3,870 |
|
Accounting and security lending fees |
330 |
|
Custodian fees and expenses |
31 |
|
Independent trustees' compensation |
5 |
|
Registration fees |
69 |
|
Audit |
44 |
|
Legal |
9 |
|
Miscellaneous |
5 |
|
Total expenses before reductions |
12,601 |
|
Expense reductions |
(44) |
12,557 |
Net investment income (loss) |
|
1,386 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: |
|
|
Investment securities: |
|
|
Unaffiliated issuers |
169,510 |
|
Foreign currency transactions |
9 |
|
Futures contracts |
(148) |
|
Total net realized gain (loss) |
|
169,371 |
Change in net unrealized appreciation (depreciation) on: Investment securities |
(33,343) |
|
Assets and liabilities in foreign currencies |
(5) |
|
Futures contracts |
59 |
|
Total change in net unrealized appreciation (depreciation) |
|
(33,289) |
Net gain (loss) |
|
136,082 |
Net increase (decrease) in net assets resulting from operations |
|
$ 137,468 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Amounts in thousands |
Six months ended |
Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) |
$ 1,386 |
$ 5,714 |
Net realized gain (loss) |
169,371 |
287,217 |
Change in net unrealized appreciation (depreciation) |
(33,289) |
209,089 |
Net increase (decrease) in net assets resulting |
137,468 |
502,020 |
Distributions to shareholders from net investment income |
(1,252) |
(8,172) |
Distributions to shareholders from net realized gain |
- |
(2,873) |
Total distributions |
(1,252) |
(11,045) |
Share transactions - net increase (decrease) |
(121,843) |
(34,691) |
Total increase (decrease) in net assets |
14,373 |
456,284 |
|
|
|
Net Assets |
|
|
Beginning of period |
2,139,703 |
1,683,419 |
End of period (including distributions in excess of net investment income of $2,469 and distributions in excess of net investment income of $2,603, respectively) |
$ 2,154,076 |
$ 2,139,703 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 28.37 |
$ 22.16 |
$ 19.15 |
$ 19.22 |
$ 15.75 |
$ 10.52 |
Income from Investment |
|
|
|
|
|
|
Net investment income (loss) E |
.03 |
.10 |
.09 |
.08H |
(.02) |
.03 |
Net realized and unrealized gain (loss) |
1.86 |
6.29 |
3.02 |
(.15) |
3.55 |
5.20 |
Total from investment operations |
1.89 |
6.39 |
3.11 |
(.07) |
3.53 |
5.23 |
Distributions from net investment income |
(.01) |
(.14) |
(.10) |
- |
(.03) I |
- |
Distributions from net realized gain |
- |
(.04) |
- |
- |
(.03) I |
- |
Total distributions |
(.01) |
(.18) |
(.10) |
- |
(.06) |
- |
Net asset value, end of period |
$ 30.25 |
$ 28.37 |
$ 22.16 |
$ 19.15 |
$ 19.22 |
$ 15.75 |
Total Return B, C, D |
6.65% |
29.07% |
16.32% |
(.36)% |
22.48% |
49.71% |
Ratios to Average Net Assets F, J |
|
|
|
|
|
|
Expenses before reductions |
1.07% A |
.95% |
.94% |
.92% |
.86% |
.83% |
Expenses net of fee waivers, if any |
1.07% A |
.95% |
.94% |
.92% |
.86% |
.83% |
Expenses net of all reductions |
1.06% A |
.92% |
.94% |
.91% |
.84% |
.81% |
Net investment income (loss) |
.23% A |
.39% |
.41% |
.39% H |
(.12)% |
.25% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 698 |
$ 692 |
$ 593 |
$ 644 |
$ 945 |
$ 906 |
Portfolio turnover rate G |
91% A |
79% K |
72% |
198% |
141% |
244% |
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 Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a large, non-recurring dividend which amounted to $.05 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .12%.
I The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
K The portfolio turnover rate does not include the assets acquired in the merger.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 28.63 |
$ 22.36 |
$ 19.30 |
$ 19.41 |
$ 15.89 |
$ 10.64 |
Income from Investment |
|
|
|
|
|
|
Net investment income (loss) E |
- L |
.04 |
.05 |
.04H |
(.05) |
.01 |
Net realized and unrealized gain (loss) |
1.87 |
6.36 |
3.05 |
(.15) |
3.59 |
5.24 |
Total from investment operations |
1.87 |
6.40 |
3.10 |
(.11) |
3.54 |
5.25 |
Distributions from net investment income |
- |
(.09) |
(.04) |
- |
- |
- |
Distributions from net realized gain |
- |
(.04) |
- |
- |
(.02) I |
- |
Total distributions |
- |
(.13) |
(.04) |
- |
(.02) |
- |
Net asset value, end of period |
$ 30.50 |
$ 28.63 |
$ 22.36 |
$ 19.30 |
$ 19.41 |
$ 15.89 |
Total Return B, C, D |
6.53% |
28.80% |
16.12% |
(.57)% |
22.31% |
49.34% |
Ratios to Average Net Assets F, J |
|
|
|
|
|
|
Expenses before reductions |
1.29% A |
1.16% |
1.14% |
1.11% |
1.03% |
1.02% |
Expenses net of fee waivers, if any |
1.29% A |
1.16% |
1.14% |
1.11% |
1.03% |
1.02% |
Expenses net of all reductions |
1.29% A |
1.13% |
1.13% |
1.10% |
1.01% |
.99% |
Net investment income (loss) |
-% A,M |
.17% |
.22% |
.20% H |
(.30)% |
.07% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 803 |
$ 817 |
$ 755 |
$ 871 |
$ 1,282 |
$ 1,520 |
Portfolio turnover rate G |
91% A |
79% K |
72% |
198% |
141% |
244% |
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 Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a large, non-recurring dividend which amounted to $.05 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.07)%.
I The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
K The portfolio turnover rate does not include the assets acquired in the merger.
L Amount represents less than $.01per share.
M Amount represents less than .01%.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 26.51 |
$ 20.71 |
$ 17.94 |
$ 18.15 |
$ 14.93 |
$ 10.05 |
Income from Investment |
|
|
|
|
|
|
Net investment income (loss) E |
(.08) |
(.10) |
(.07) |
(.07) H |
(.15) |
(.06) |
Net realized and unrealized gain (loss) |
1.73 |
5.90 |
2.84 |
(.14) |
3.37 |
4.94 |
Total from investment operations |
1.65 |
5.80 |
2.77 |
(.21) |
3.22 |
4.88 |
Distributions from net investment income |
- |
- |
- |
- |
- |
- |
Distributions from net realized gain |
- |
- |
- |
- |
- |
- |
Total distributions |
- |
- |
- |
- |
- |
- |
Net asset value, end of period |
$ 28.16 |
$ 26.51 |
$ 20.71 |
$ 17.94 |
$ 18.15 |
$ 14.93 |
Total Return B, C, D |
6.22% |
28.01% |
15.44% |
(1.16)% |
21.57% |
48.56% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions |
1.91% A |
1.76% |
1.73% |
1.71% |
1.63% |
1.59% |
Expenses net of fee waivers, if any |
1.91% A |
1.76% |
1.73% |
1.71% |
1.63% |
1.59% |
Expenses net of all reductions |
1.90% A |
1.74% |
1.73% |
1.70% |
1.61% |
1.57% |
Net investment income (loss) |
(.61)% A |
(.43)% |
(.38)% |
(.40)% H |
(.90)% |
(.51)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 18 |
$ 21 |
$ 22 |
$ 28 |
$ 75 |
$ 131 |
Portfolio turnover rate G |
91% A |
79% J |
72% |
198% |
141% |
244% |
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 Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a large, non-recurring dividend which amounted to $.05 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.67)%.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J The portfolio turnover rate does not include the assets acquired in the merger.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 26.52 |
$ 20.73 |
$ 17.95 |
$ 18.15 |
$ 14.93 |
$ 10.05 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E |
(.07) |
(.09) |
(.06) |
(.07) H |
(.14) |
(.06) |
Net realized and unrealized gain (loss) |
1.73 |
5.91 |
2.84 |
(.13) |
3.36 |
4.94 |
Total from investment operations |
1.66 |
5.82 |
2.78 |
(.20) |
3.22 |
4.88 |
Distributions from net investment income |
- |
(.02) |
- |
- |
- |
- |
Distributions from net realized gain |
- |
(.01) |
- |
- |
- |
- |
Total distributions |
- |
(.03) |
- |
- |
- |
- |
Net asset value, end of period |
$ 28.18 |
$ 26.52 |
$ 20.73 |
$ 17.95 |
$ 18.15 |
$ 14.93 |
Total Return B, C, D |
6.26% |
28.09% |
15.49% |
(1.10)% |
21.57% |
48.56% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions |
1.82% A |
1.69% |
1.68% |
1.66% |
1.60% |
1.58% |
Expenses net of fee waivers, if any |
1.82% A |
1.69% |
1.68% |
1.66% |
1.60% |
1.58% |
Expenses net of all reductions |
1.81% A |
1.67% |
1.68% |
1.65% |
1.58% |
1.55% |
Net investment income (loss) |
(.52)% A |
(.36)% |
(.33)% |
(.35)% H |
(.86)% |
(.50)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 172 |
$ 172 |
$ 141 |
$ 150 |
$ 189 |
$ 186 |
Portfolio turnover rate G |
91% A |
79% J |
72% |
198% |
141% |
244% |
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 Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a large, non-recurring dividend which amounted to $.05 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.62)%.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J The portfolio turnover rate does not include the assets acquired in the merger.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended |
Years ended |
|
|
(Unaudited) |
2013 |
2012G |
Selected Per-Share Data |
|
|
|
Net asset value, beginning of period G |
$ 29.56 |
$ 23.14 |
$ 21.20 |
Income from Investment Operations |
|
|
|
Net investment income (loss) D |
.07 |
.17 |
.09 |
Net realized and unrealized gain (loss) |
1.93 |
6.54 |
1.85 |
Total from investment operations |
2.00 |
6.71 |
1.94 |
Distributions from net investment income |
(.07) |
(.25) |
- |
Distributions from net realized gain |
- |
(.04) |
- |
Total distributions |
(.07) |
(.29) |
- |
Net asset value, end of period |
$ 31.49 |
$ 29.56 |
$ 23.14 |
Total Return B, C |
6.78% |
29.36% |
9.15% |
Ratios to Average Net Assets E, H |
|
|
|
Expenses before reductions |
.83% A |
.71% |
.59% A |
Expenses net of fee waivers, if any |
.83% A |
.71% |
.59% A |
Expenses net of all reductions |
.83% A |
.69% |
.58% A |
Net investment income (loss) |
.47% A |
.62% |
.86% A |
Supplemental Data |
|
|
|
Net assets, end of period (in millions) |
$ 232 |
$ 225 |
$ 1 |
Portfolio turnover rateF |
91% A |
79% I |
72% |
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 June 6, 2012 (commencement of sale of shares) to November 30, 2012.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I The portfolio turnover rate does not include the assets acquired in the merger.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 29.64 |
$ 23.14 |
$ 20.01 |
$ 20.02 |
$ 16.40 |
$ 10.92 |
Income from Investment |
|
|
|
|
|
|
Net investment income (loss) D |
.08 |
.18 |
.15 |
.14G |
.04 |
.08 |
Net realized and unrealized gain (loss) |
1.92 |
6.56 |
3.15 |
(.15) |
3.69 |
5.40 |
Total from investment operations |
2.00 |
6.74 |
3.30 |
(.01) |
3.73 |
5.48 |
Distributions from net investment income |
(.08) |
(.20) |
(.17) |
- |
(.08) H |
- |
Distributions from net realized gain |
- |
(.04) |
- |
- |
(.03) H |
- |
Total distributions |
(.08) |
(.24) |
(.17) |
- |
(.11) |
- |
Net asset value, end of period |
$ 31.56 |
$ 29.64 |
$ 23.14 |
$ 20.01 |
$ 20.02 |
$ 16.40 |
Total Return B, C |
6.77% |
29.44% |
16.66% |
(.05)% |
22.86% |
50.18% |
Ratios to Average Net Assets E, I |
|
|
|
|
|
|
Expenses before reductions |
.80% A |
.67% |
.65% |
.62% |
.54% |
.50% |
Expenses net of fee waivers, if any |
.80% A |
.67% |
.65% |
.62% |
.54% |
.50% |
Expenses net of all reductions |
.80% A |
.65% |
.64% |
.61% |
.52% |
.47% |
Net investment income (loss) |
.49% A |
.66% |
.71% |
.69% G |
.20% |
.59% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 230 |
$ 214 |
$ 172 |
$ 234 |
$ 354 |
$ 319 |
Portfolio turnover rate F |
91% A |
79% J |
72% |
198% |
141% |
244% |
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 Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .42%.
H The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J The portfolio turnover rate does not include the assets acquired in the merger.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
For the period ended May 31, 2014 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor® Stock Selector Mid Cap Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, Fidelity Stock Selector Mid Cap Fund and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. U.S. government and government agency obligations are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded and are categorized as Level 1 in the hierarchy. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of May 31, 2014 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to futures contracts, foreign currency transactions, passive foreign investment companies (PFIC), market discount, partnerships, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation |
$ 317,652 |
Gross unrealized depreciation |
(47,278) |
Net unrealized appreciation (depreciation) on securities and other investments |
$ 270,374 |
Tax cost |
$ 1,940,058 |
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.
Fiscal year of expiration |
|
2015 |
$ (1,870) |
2016 |
(389,648) |
2017 |
(148,171) |
Total capital loss carryforward |
$ (539,689) |
The Fund acquired $15,643 of its capital loss carryforward as part of a merger in a prior period. The losses acquired that will be available to offset future capital gains of the Fund will be limited to approximately $935 per year.
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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Restricted Securities - continued
transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
The Fund used derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
The Fund's use of derivatives increased or decreased its exposure to the following risks:
Equity Risk |
Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Counterparty credit risk related to exchange-traded futures contracts may be mitigated by the protection provided by the exchange on which they trade.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and
Semiannual Report
4. Derivative Instruments - continued
Risk Exposures and the Use of Derivative Instruments - continued
Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent daily payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable, if any, is included in daily variation margin for derivative instruments in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts." The underlying face amount at value reflects each contract's exposure to the underlying instrument or index at period end and is representative of volume of activity during the period. Securities deposited to meet initial margin requirements are identified in the Schedule of Investments.
During the period the Fund recognized net realized gain (loss) of $(148) and a change in net unrealized appreciation (depreciation) of $59 related to its investment in futures contracts. These amounts are included in the Statement of Operations.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $962,959 and $1,091,844, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
6. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of the Institutional Class of the Fund as compared to its benchmark index, the S&P MidCap 400® Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .56% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
|
Distribution |
Service |
Total Fees |
Retained |
Class A |
-% |
.25% |
$ 875 |
$ 67 |
Class T |
.25% |
.25% |
2,029 |
19 |
Class B |
.75% |
.25% |
97 |
73 |
Class C |
.75% |
.25% |
869 |
26 |
|
|
|
$ 3,870 |
$ 185 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
|
Retained |
Class A |
$ 21 |
Class T |
11 |
Class B* |
5 |
Class C* |
2 |
|
$ 39 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
|
Amount |
% of |
Class A |
$ 753 |
.22 |
Class T |
774 |
.19 |
Class B |
29 |
.30 |
Class C |
185 |
.21 |
Fidelity Stock Selector Mid Cap Fund |
259 |
.23 |
Institutional Class |
224 |
.20 |
|
$ 2,224 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
6. Fees and Other Transactions with Affiliates - continued
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $17 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $2 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $55. During the period, there were no securities loaned to FCM.
Semiannual Report
9. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $42 for the period.
In addition, the investment adviser reimbursed a portion of the Fund's operating expenses during the period in the amount of $2.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
|
Six months ended |
Year ended |
From net investment income |
|
|
Class A |
$ 146 |
$ 3,606 |
Class T |
- |
2,972 |
Class C |
- |
121 |
Fidelity Stock Selector Mid Cap Fund |
530 |
16 |
Institutional Class |
576 |
1,457 |
Total |
$ 1,252 |
$ 8,172 |
From net realized gain |
|
|
Class A |
$ - |
$ 1,106 |
Class T |
- |
1,403 |
Class C |
- |
54 |
Fidelity Stock Selector Mid Cap Fund |
- |
3 |
Institutional Class |
- |
307 |
Total |
$ - |
$ 2,873 |
11. Share Transactions.
Transactions for each class of shares were as follows:
|
Shares |
Dollars |
||
|
Six months ended |
Year ended |
Six months ended |
Year ended |
Class A |
|
|
|
|
Shares sold |
688 |
1,576 |
$ 20,297 |
$ 39,740 |
Issued in exchange for shares of Fidelity Advisor Growth Strategies Fund |
- |
483 |
- |
11,196 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
11. Share Transactions - continued
|
Shares |
Dollars |
||
|
Six months ended |
Year ended |
Six months ended |
Year ended |
Class A |
|
|
|
|
Issued in exchange for shares of Fidelity Mid Cap Growth Fund |
410 |
$ 9,497 |
||
Reinvestment of distributions |
5 |
196 |
134 |
4,309 |
Shares redeemed |
(2,002) |
(5,036) |
(59,052) |
(125,748) |
Net increase (decrease) |
(1,309) |
(2,371) |
$ (38,621) |
$ (61,006) |
Class T |
|
|
|
|
Shares sold |
1,108 |
2,840 |
$ 33,060 |
$ 71,906 |
Issued in exchange for shares of Fidelity Advisor Growth Strategies Fund |
- |
643 |
- |
15,054 |
Issued in exchange for shares of Fidelity Mid Cap Growth Fund |
- |
182 |
- |
4,267 |
Reinvestment of distributions |
- |
188 |
- |
4,170 |
Shares redeemed |
(3,293) |
(9,076) |
(97,938) |
(228,859) |
Net increase (decrease) |
(2,185) |
(5,223) |
$ (64,878) |
$ (133,462) |
Class B |
|
|
|
|
Shares sold |
3 |
4 |
$ 73 |
$ 95 |
Issued in exchange for shares of Fidelity Advisor Growth Strategies Fund |
- |
75 |
- |
1,640 |
Issued in exchange for shares of Fidelity Mid Cap Growth Fund |
- |
28 |
- |
614 |
Shares redeemed |
(149) |
(363) |
(4,080) |
(8,472) |
Net increase (decrease) |
(146) |
(256) |
$ (4,007) |
$ (6,123) |
Class C |
|
|
|
|
Shares sold |
106 |
236 |
$ 2,913 |
$ 5,603 |
Issued in exchange for shares of Fidelity Advisor Growth Strategies Fund |
- |
209 |
- |
4,553 |
Issued in exchange for shares of Fidelity Mid Cap Growth Fund |
- |
219 |
- |
4,769 |
Reinvestment of distributions |
- |
7 |
- |
152 |
Shares redeemed |
(473) |
(993) |
(13,051) |
(23,227) |
Net increase (decrease) |
(367) |
(322) |
$ (10,138) |
$ (8,150) |
Semiannual Report
11. Share Transactions - continued
|
Shares |
Dollars |
||
|
Six months ended |
Year ended |
Six months ended |
Year ended |
Fidelity Stock Selector Mid Cap Fund |
|
|
|
|
Shares sold |
563 |
1,327 |
$ 17,344 |
$ 35,648 |
Issued in exchange for shares of Fidelity Mid Cap Growth Fund |
- |
8,810 |
- |
212,139 |
Reinvestment of distributions |
18 |
1 |
518 |
16 |
Shares redeemed |
(801) |
(2,600) |
(24,466) |
(67,266) |
Net increase (decrease) |
(220) |
7,538 |
$ (6,604) |
$ 180,537 |
Institutional Class |
|
|
|
|
Shares sold |
826 |
1,231 |
$ 25,335 |
$ 32,432 |
Issued in exchange for shares of Fidelity Advisor Growth Strategies Fund |
- |
20 |
- |
479 |
Issued in exchange for shares of Fidelity Mid Cap Growth Fund |
- |
37 |
- |
888 |
Reinvestment of distributions |
17 |
68 |
502 |
1,564 |
Shares redeemed |
(766) |
(1,567) |
(23,432) |
(41,850) |
Net increase (decrease) |
77 |
(211) |
$ 2,405 |
$ (6,487) |
12. Merger Information.
On January 11, 2013, the Fund acquired all of the assets and assumed all of the liabilities of Fidelity Advisor® Growth Strategies Fund and Fidelity Mid Cap Growth Fund ("Target Funds") pursuant to agreements and plans of reorganization approved by the Board of Trustees ("The Board") on June 12, 2012. The acquisition was accomplished by an exchange of shares of each class of the Fund for corresponding shares then outstanding of the Target Funds at their net asset value on the acquisition date. The reorganization provides shareholders of the Target Funds access to a larger portfolio with a similar investment objective. The reorganization qualified as a tax-free reorganization for federal income tax purposes with no gain or loss recognized to the funds or their shareholders. The Target Funds' net assets of $32,922, including securities of $32,974 and unrealized appreciation of $2,113 for Fidelity Advisor Growth Strategies Fund; and net assets of $232,174, including securities of $233,755 and unrealized appreciation of $14,520 for Fidelity Mid Cap Growth Fund were combined with the Fund's net assets of $1,716,041 for total net assets after the acquisition of $1,981,137.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
12. Merger Information - continued
Pro forma results of operations of the combined entity for the entire period ended November 30, 2013, as though the acquisition had occurred as of the beginning of the year (rather than on the actual acquisition date), are as follows:
Net investment income (loss) |
$ 6,032 |
Total net realized gain (loss) |
288,183 |
Total change in net unrealized appreciation (depreciation) |
219,225 |
Net increase (decrease) in net assets resulting from operations |
$ 513,440 |
Because the combined investment portfolios have been managed as a single portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of the acquired fund that have been included in the Fund's accompanying Statement of Operations since January 11, 2013.
13. 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
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Brown Brothers Harriman & Co.
Boston, MA
(Fidelity Investment logo)(registered trademark)
MC-USAN-0714 1.786799.111
Semiannual Report
(Fidelity Investment logo)(registered trademark)
Fidelity® Stock Selector
Mid Cap
Fund
(A class of Fidelity Advisor® Stock Selector Mid Cap Fund)
Semiannual Report
May 31, 2014
(Fidelity Cover Art)
Shareholder Expense Example |
An example of shareholder expenses. |
|
Investment Changes |
A summary of major shifts in the fund's investments over the past six months. |
|
Investments |
A complete list of the fund's investments with their market values. |
|
Financial Statements |
Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
|
Notes |
Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (December 1, 2013 to May 31, 2014).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
|
Annualized |
Beginning |
Ending |
Expenses Paid |
Class A |
1.07% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,066.50 |
$ 5.51 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,019.60 |
$ 5.39 |
Class T |
1.29% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,065.30 |
$ 6.64 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,018.50 |
$ 6.49 |
Class B |
1.91% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,062.20 |
$ 9.82 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,015.41 |
$ 9.60 |
Class C |
1.82% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,062.60 |
$ 9.36 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,015.86 |
$ 9.15 |
Fidelity Stock Selector Mid Cap Fund |
.83% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,067.80 |
$ 4.28 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,020.79 |
$ 4.18 |
Institutional Class |
.80% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,067.70 |
$ 4.12 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,020.94 |
$ 4.03 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
Semiannual Report
Top Ten Stocks as of May 31, 2014 |
||
|
% of fund's |
% of fund's net assets |
J.B. Hunt Transport Services, Inc. |
2.4 |
1.9 |
Roper Industries, Inc. |
1.9 |
1.5 |
Capital One Financial Corp. |
1.7 |
1.8 |
Hubbell, Inc. Class B |
1.5 |
1.7 |
Verisk Analytics, Inc. |
1.5 |
1.5 |
AMETEK, Inc. |
1.4 |
1.7 |
Cimarex Energy Co. |
1.2 |
0.9 |
Watsco, Inc. |
1.2 |
0.9 |
Airgas, Inc. |
1.1 |
1.1 |
Interactive Brokers Group, Inc. |
1.1 |
1.2 |
|
15.0 |
|
Top Five Market Sectors as of May 31, 2014 |
||
|
% of fund's |
% of fund's net assets |
Financials |
22.4 |
22.3 |
Industrials |
16.6 |
16.8 |
Information Technology |
15.1 |
15.6 |
Consumer Discretionary |
12.2 |
13.9 |
Health Care |
9.3 |
8.9 |
Asset Allocation (% of fund's net assets) |
|||||||
As of May 31, 2014 * |
As of November 30, 2013 ** |
||||||
Stocks and |
|
Stocks and |
|
||||
Short-Term |
|
Short-Term |
|
||||
* Foreign investments |
7.2% |
|
** Foreign investments |
8.5% |
|
Semiannual Report
Showing Percentage of Net Assets
Common Stocks - 97.6% |
|||
Shares |
Value (000s) |
||
CONSUMER DISCRETIONARY - 12.2% |
|||
Auto Components - 0.1% |
|||
Tenneco, Inc. (a) |
31,400 |
$ 2,002 |
|
Hotels, Restaurants & Leisure - 0.3% |
|||
Texas Roadhouse, Inc. Class A |
211,300 |
5,342 |
|
Household Durables - 2.8% |
|||
Jarden Corp. (a) |
317,115 |
17,942 |
|
Libbey, Inc. (a) |
269,118 |
7,253 |
|
NVR, Inc. (a) |
17,400 |
19,377 |
|
Tupperware Brands Corp. |
181,680 |
15,210 |
|
|
59,782 |
||
Internet & Catalog Retail - 0.6% |
|||
HomeAway, Inc. (a) |
80,600 |
2,482 |
|
Liberty Interactive Corp. Series A (a) |
348,310 |
10,146 |
|
|
12,628 |
||
Leisure Products - 0.8% |
|||
Brunswick Corp. |
278,800 |
12,016 |
|
Smith & Wesson Holding Corp. (a) |
304,600 |
4,837 |
|
|
16,853 |
||
Media - 0.8% |
|||
The Madison Square Garden Co. Class A (a) |
307,100 |
16,844 |
|
Multiline Retail - 1.3% |
|||
Dollar General Corp. (a) |
227,840 |
12,253 |
|
Dollar Tree, Inc. (a) |
313,878 |
16,645 |
|
|
28,898 |
||
Specialty Retail - 4.4% |
|||
Abercrombie & Fitch Co. Class A |
123,582 |
4,697 |
|
Cabela's, Inc. Class A (a)(d) |
231,000 |
14,144 |
|
Foot Locker, Inc. |
456,000 |
21,970 |
|
PetSmart, Inc. |
53,660 |
3,084 |
|
Ross Stores, Inc. |
223,010 |
15,265 |
|
Sally Beauty Holdings, Inc. (a) |
450,620 |
11,545 |
|
Sportsman's Warehouse Holdings, Inc. |
891,763 |
8,231 |
|
Williams-Sonoma, Inc. |
249,460 |
16,694 |
|
|
95,630 |
||
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
CONSUMER DISCRETIONARY - continued |
|||
Textiles, Apparel & Luxury Goods - 1.1% |
|||
PVH Corp. |
92,000 |
$ 12,110 |
|
Ralph Lauren Corp. |
78,100 |
11,987 |
|
|
24,097 |
||
TOTAL CONSUMER DISCRETIONARY |
262,076 |
||
CONSUMER STAPLES - 3.2% |
|||
Beverages - 0.1% |
|||
Monster Beverage Corp. (a) |
44,884 |
3,114 |
|
Food & Staples Retailing - 0.8% |
|||
United Natural Foods, Inc. (a) |
125,145 |
8,436 |
|
Whole Foods Market, Inc. |
215,442 |
8,239 |
|
|
16,675 |
||
Food Products - 2.3% |
|||
Hillshire Brands Co. |
166,400 |
8,866 |
|
Mead Johnson Nutrition Co. Class A |
77,900 |
6,970 |
|
The Hain Celestial Group, Inc. (a) |
96,700 |
8,773 |
|
The Hershey Co. |
63,900 |
6,220 |
|
TreeHouse Foods, Inc. (a) |
84,580 |
6,339 |
|
WhiteWave Foods Co. (a) |
398,400 |
12,546 |
|
|
49,714 |
||
TOTAL CONSUMER STAPLES |
69,503 |
||
ENERGY - 6.5% |
|||
Energy Equipment & Services - 1.9% |
|||
Dresser-Rand Group, Inc. (a) |
94,400 |
5,777 |
|
Dril-Quip, Inc. (a) |
129,000 |
13,186 |
|
Helmerich & Payne, Inc. |
123,980 |
13,632 |
|
Rowan Companies PLC |
250,610 |
7,759 |
|
|
40,354 |
||
Oil, Gas & Consumable Fuels - 4.6% |
|||
Cheniere Energy, Inc. (a) |
75,400 |
5,135 |
|
Cimarex Energy Co. |
195,400 |
25,232 |
|
Energen Corp. |
186,800 |
15,949 |
|
Genesis Energy LP |
134,800 |
7,684 |
|
HollyFrontier Corp. |
95,070 |
4,682 |
|
SM Energy Co. |
191,246 |
14,498 |
|
Stone Energy Corp. (a) |
183,000 |
8,123 |
|
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
ENERGY - continued |
|||
Oil, Gas & Consumable Fuels - continued |
|||
Targa Resources Corp. |
74,700 |
$ 8,588 |
|
Whiting Petroleum Corp. (a) |
133,100 |
9,563 |
|
|
99,454 |
||
TOTAL ENERGY |
139,808 |
||
FINANCIALS - 22.4% |
|||
Banks - 2.8% |
|||
City National Corp. |
156,410 |
11,119 |
|
Erste Group Bank AG |
51,774 |
1,799 |
|
Huntington Bancshares, Inc. |
2,189,478 |
20,296 |
|
Prosperity Bancshares, Inc. |
285,600 |
16,602 |
|
Synovus Financial Corp. |
334,227 |
7,707 |
|
The Jammu & Kashmir Bank Ltd. |
120,000 |
3,037 |
|
|
60,560 |
||
Capital Markets - 3.9% |
|||
ABG Sundal Collier ASA (a) |
3,100,000 |
2,920 |
|
KKR & Co. LP |
670,164 |
15,233 |
|
Lazard Ltd. Class A |
247,900 |
12,519 |
|
MLP AG |
1,566,600 |
10,848 |
|
Moelis & Co. Class A |
119,300 |
3,753 |
|
Oaktree Capital Group LLC Class A |
162,900 |
8,142 |
|
Och-Ziff Capital Management Group LLC Class A |
535,800 |
7,121 |
|
Raymond James Financial, Inc. |
329,700 |
15,957 |
|
Virtus Investment Partners, Inc. |
13,500 |
2,491 |
|
Vontobel Holdings AG |
150,000 |
5,536 |
|
|
84,520 |
||
Consumer Finance - 4.0% |
|||
ACOM Co. Ltd. (a)(d) |
3,590,200 |
13,814 |
|
Capital One Financial Corp. |
458,300 |
36,155 |
|
Cash America International, Inc. |
239,527 |
11,380 |
|
Navient Corp. |
542,316 |
8,569 |
|
SLM Corp. |
792,316 |
6,822 |
|
Springleaf Holdings, Inc. |
421,600 |
9,895 |
|
|
86,635 |
||
Diversified Financial Services - 1.1% |
|||
Interactive Brokers Group, Inc. |
1,011,767 |
23,291 |
|
Insurance - 2.1% |
|||
Arthur J. Gallagher & Co. |
243,200 |
11,146 |
|
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
FINANCIALS - continued |
|||
Insurance - continued |
|||
Direct Line Insurance Group PLC |
4,189,691 |
$ 17,789 |
|
Fairfax Financial Holdings Ltd. (sub. vtg.) |
29,800 |
13,420 |
|
St. James's Place Capital PLC |
237,200 |
3,111 |
|
|
45,466 |
||
Real Estate Investment Trusts - 7.6% |
|||
Acadia Realty Trust (SBI) |
149,500 |
4,125 |
|
Alexandria Real Estate Equities, Inc. |
150,775 |
11,472 |
|
Ashford Hospitality Prime, Inc. |
47,600 |
776 |
|
Corrections Corp. of America |
132,300 |
4,304 |
|
Cousins Properties, Inc. |
283,600 |
3,403 |
|
Essex Property Trust, Inc. |
37,764 |
6,834 |
|
Federal Realty Investment Trust (SBI) |
132,800 |
15,872 |
|
FelCor Lodging Trust, Inc. |
347,000 |
3,414 |
|
Kilroy Realty Corp. |
59,675 |
3,615 |
|
Liberty Property Trust (SBI) |
316,900 |
12,267 |
|
Mid-America Apartment Communities, Inc. |
197,700 |
14,304 |
|
National Retail Properties, Inc. (d) |
428,569 |
14,991 |
|
Piedmont Office Realty Trust, Inc. Class A |
322,500 |
6,005 |
|
Post Properties, Inc. |
154,900 |
7,923 |
|
Redwood Trust, Inc. (d) |
240,900 |
4,695 |
|
Senior Housing Properties Trust (SBI) |
454,000 |
10,887 |
|
SL Green Realty Corp. |
125,465 |
13,737 |
|
Sovran Self Storage, Inc. |
83,039 |
6,377 |
|
Taubman Centers, Inc. |
119,200 |
8,928 |
|
Weyerhaeuser Co. |
269,414 |
8,465 |
|
|
162,394 |
||
Real Estate Management & Development - 0.5% |
|||
Alexander & Baldwin, Inc. |
18,000 |
682 |
|
Altisource Portfolio Solutions SA (a) |
41,910 |
4,619 |
|
CBRE Group, Inc. (a) |
207,932 |
6,205 |
|
|
11,506 |
||
Thrifts & Mortgage Finance - 0.4% |
|||
Ocwen Financial Corp. (a) |
215,963 |
7,574 |
|
TOTAL FINANCIALS |
481,946 |
||
HEALTH CARE - 9.3% |
|||
Biotechnology - 1.4% |
|||
Alexion Pharmaceuticals, Inc. (a) |
58,000 |
9,647 |
|
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
HEALTH CARE - continued |
|||
Biotechnology - continued |
|||
Cubist Pharmaceuticals, Inc. |
200,000 |
$ 13,320 |
|
Grifols SA ADR |
200,000 |
8,324 |
|
|
31,291 |
||
Health Care Equipment & Supplies - 2.8% |
|||
Boston Scientific Corp. (a) |
1,450,000 |
18,604 |
|
Edwards Lifesciences Corp. (a) |
95,000 |
7,714 |
|
Intuitive Surgical, Inc. (a) |
15,000 |
5,546 |
|
Masimo Corp. (a) |
380,000 |
9,363 |
|
The Cooper Companies, Inc. |
145,000 |
18,708 |
|
|
59,935 |
||
Health Care Providers & Services - 1.3% |
|||
HCA Holdings, Inc. (a) |
128,000 |
6,783 |
|
Humana, Inc. |
63,000 |
7,841 |
|
MEDNAX, Inc. (a) |
220,000 |
12,679 |
|
|
27,303 |
||
Health Care Technology - 0.5% |
|||
Cerner Corp. (a) |
196,000 |
10,594 |
|
Life Sciences Tools & Services - 1.0% |
|||
Agilent Technologies, Inc. |
200,000 |
11,388 |
|
Illumina, Inc. (a) |
63,000 |
9,970 |
|
|
21,358 |
||
Pharmaceuticals - 2.3% |
|||
Actavis PLC (a) |
70,000 |
14,808 |
|
Perrigo Co. PLC |
58,000 |
8,016 |
|
Salix Pharmaceuticals Ltd. (a) |
170,000 |
19,394 |
|
The Medicines Company (a) |
272,000 |
7,589 |
|
|
49,807 |
||
TOTAL HEALTH CARE |
200,288 |
||
INDUSTRIALS - 16.6% |
|||
Aerospace & Defense - 2.0% |
|||
Meggitt PLC |
2,826,204 |
22,952 |
|
TransDigm Group, Inc. |
113,410 |
21,402 |
|
|
44,354 |
||
Building Products - 0.5% |
|||
A.O. Smith Corp. |
228,247 |
11,271 |
|
Construction & Engineering - 0.6% |
|||
MasTec, Inc. (a) |
389,100 |
14,008 |
|
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
INDUSTRIALS - continued |
|||
Electrical Equipment - 3.0% |
|||
Acuity Brands, Inc. |
18,736 |
$ 2,352 |
|
AMETEK, Inc. |
581,490 |
30,865 |
|
Hubbell, Inc. Class B |
270,740 |
31,677 |
|
|
64,894 |
||
Industrial Conglomerates - 1.9% |
|||
Roper Industries, Inc. |
286,320 |
40,566 |
|
Machinery - 2.7% |
|||
Cummins, Inc. |
141,800 |
21,685 |
|
Manitowoc Co., Inc. |
643,996 |
17,420 |
|
Valmont Industries, Inc. |
118,900 |
18,424 |
|
WABCO Holdings, Inc. (a) |
18 |
2 |
|
|
57,531 |
||
Professional Services - 1.5% |
|||
Verisk Analytics, Inc. (a) |
532,000 |
31,489 |
|
Road & Rail - 2.4% |
|||
J.B. Hunt Transport Services, Inc. |
660,540 |
51,295 |
|
Trading Companies & Distributors - 2.0% |
|||
W.W. Grainger, Inc. |
67,500 |
17,440 |
|
Watsco, Inc. |
247,700 |
24,926 |
|
|
42,366 |
||
TOTAL INDUSTRIALS |
357,774 |
||
INFORMATION TECHNOLOGY - 15.1% |
|||
Communications Equipment - 0.9% |
|||
Aruba Networks, Inc. (a) |
196,800 |
3,644 |
|
Riverbed Technology, Inc. (a) |
755,550 |
15,353 |
|
|
18,997 |
||
Electronic Equipment & Components - 1.1% |
|||
Trimble Navigation Ltd. (a) |
630,200 |
22,731 |
|
Internet Software & Services - 2.4% |
|||
Equinix, Inc. (a)(d) |
93,900 |
18,663 |
|
LinkedIn Corp. (a) |
16,500 |
2,641 |
|
Rackspace Hosting, Inc. (a) |
398,400 |
14,538 |
|
Trulia, Inc. (a) |
69,100 |
2,671 |
|
Velti PLC (a)(f) |
215,084 |
4 |
|
Yahoo!, Inc. (a) |
271,600 |
9,411 |
|
Yelp, Inc. (a) |
43,000 |
2,844 |
|
|
50,772 |
||
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
INFORMATION TECHNOLOGY - continued |
|||
IT Services - 1.2% |
|||
Acxiom Corp. (a) |
297,946 |
$ 6,772 |
|
Alliance Data Systems Corp. (a) |
41,000 |
10,498 |
|
Virtusa Corp. (a) |
283,800 |
9,709 |
|
|
26,979 |
||
Semiconductors & Semiconductor Equipment - 1.7% |
|||
Altera Corp. |
99,900 |
3,310 |
|
Cree, Inc. (a) |
290,000 |
13,955 |
|
NXP Semiconductors NV (a) |
54,200 |
3,366 |
|
RF Micro Devices, Inc. (a) |
936,000 |
8,808 |
|
Semtech Corp. (a) |
309,100 |
8,018 |
|
|
37,457 |
||
Software - 6.2% |
|||
ANSYS, Inc. (a) |
256,900 |
18,869 |
|
Autodesk, Inc. (a) |
193,500 |
10,134 |
|
Citrix Systems, Inc. (a) |
80,995 |
5,019 |
|
CommVault Systems, Inc. (a) |
215,654 |
10,550 |
|
Fair Isaac Corp. |
136,700 |
8,052 |
|
Imperva, Inc. (a) |
96,650 |
2,018 |
|
MICROS Systems, Inc. (a) |
291,200 |
15,556 |
|
Nuance Communications, Inc. (a)(d) |
643,434 |
10,414 |
|
Parametric Technology Corp. (a) |
438,700 |
16,144 |
|
Rovi Corp. (a) |
417,400 |
10,089 |
|
SolarWinds, Inc. (a) |
222,180 |
8,685 |
|
Synopsys, Inc. (a) |
466,000 |
17,936 |
|
|
133,466 |
||
Technology Hardware, Storage & Peripherals - 1.6% |
|||
Cray, Inc. (a) |
247,800 |
6,948 |
|
EMC Corp. |
381,600 |
10,135 |
|
NCR Corp. (a) |
548,800 |
17,924 |
|
|
35,007 |
||
TOTAL INFORMATION TECHNOLOGY |
325,409 |
||
MATERIALS - 7.7% |
|||
Chemicals - 4.6% |
|||
Airgas, Inc. |
230,004 |
24,454 |
|
FMC Corp. |
231,540 |
17,727 |
|
International Flavors & Fragrances, Inc. |
38,600 |
3,831 |
|
RPM International, Inc. |
327,800 |
14,118 |
|
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
MATERIALS - continued |
|||
Chemicals - continued |
|||
Sherwin-Williams Co. |
61,631 |
$ 12,610 |
|
Sigma Aldrich Corp. |
39,200 |
3,862 |
|
W.R. Grace & Co. (a) |
244,997 |
22,559 |
|
|
99,161 |
||
Containers & Packaging - 1.6% |
|||
Aptargroup, Inc. |
201,956 |
13,448 |
|
Rock-Tenn Co. Class A |
201,000 |
20,307 |
|
|
33,755 |
||
Metals & Mining - 1.5% |
|||
Carpenter Technology Corp. |
171,600 |
10,723 |
|
Reliance Steel & Aluminum Co. |
309,085 |
22,239 |
|
|
32,962 |
||
TOTAL MATERIALS |
165,878 |
||
TELECOMMUNICATION SERVICES - 0.5% |
|||
Wireless Telecommunication Services - 0.5% |
|||
SBA Communications Corp. Class A (a) |
19,310 |
1,960 |
|
T-Mobile U.S., Inc. (a) |
59,300 |
2,036 |
|
Telephone & Data Systems, Inc. |
210,600 |
5,836 |
|
|
9,832 |
||
UTILITIES - 4.1% |
|||
Electric Utilities - 2.0% |
|||
Hawaiian Electric Industries, Inc. (d) |
222,700 |
5,356 |
|
OGE Energy Corp. |
587,900 |
21,594 |
|
PNM Resources, Inc. |
269,038 |
7,657 |
|
Portland General Electric Co. |
229,900 |
7,603 |
|
UIL Holdings Corp. |
28,200 |
1,043 |
|
|
43,253 |
||
Gas Utilities - 0.3% |
|||
National Fuel Gas Co. |
102,800 |
7,710 |
|
Independent Power Producers & Energy Traders - 0.8% |
|||
Black Hills Corp. |
164,000 |
9,458 |
|
Dynegy, Inc. (a) |
210,400 |
7,090 |
|
|
16,548 |
||
Multi-Utilities - 0.7% |
|||
MDU Resources Group, Inc. |
479,575 |
16,248 |
|
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
UTILITIES - continued |
|||
Water Utilities - 0.3% |
|||
American Water Works Co., Inc. |
114,720 |
$ 5,577 |
|
TOTAL UTILITIES |
89,336 |
||
TOTAL COMMON STOCKS (Cost $1,830,080) |
|
U.S. Treasury Obligations - 0.0% |
||||
|
Principal Amount (000s) |
|
||
U.S. Treasury Bills, yield at date of purchase 0.02% to 0.03% 6/19/14 (e) |
|
$ 1,140 |
|
Money Market Funds - 5.0% |
|||
Shares |
|
||
Fidelity Cash Central Fund, 0.10% (b) |
52,239,735 |
52,240 |
|
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) |
55,202,374 |
55,202 |
|
TOTAL MONEY MARKET FUNDS (Cost $107,442) |
|
||
TOTAL INVESTMENT PORTFOLIO - 102.6% (Cost $1,938,662) |
2,210,432 |
||
NET OTHER ASSETS (LIABILITIES) - (2.6)% |
(56,356) |
||
NET ASSETS - 100% |
$ 2,154,076 |
Futures Contracts |
|||||
|
Expiration Date |
Underlying Face Amount at Value (000s) |
Unrealized Appreciation/ |
||
Purchased |
|||||
Equity Index Contracts |
|||||
7 CME E-mini S&P MidCap 400 Index Contracts (United States) |
June 2014 |
$ 964 |
$ 13 |
|
The face value of futures purchased as a percentage of net assets is 0% |
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) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At period end, the value of securities pledged amounted to $402,000. |
(f) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $4,000 or 0.0% of net assets. |
Additional information on each restricted holding is as follows: |
Security |
Acquisition Date |
Acquisition Cost (000s) |
Velti PLC |
4/19/13 |
$ 323 |
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 |
$ 22 |
Fidelity Securities Lending Cash Central Fund |
55 |
Total |
$ 77 |
Other Information |
The following is a summary of the inputs used, as of May 31, 2014, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
||||
Description |
Total |
Level 1 |
Level 2 |
Level 3 |
Investments in Securities: |
||||
Equities: |
||||
Consumer Discretionary |
$ 262,076 |
$ 262,076 |
$ - |
$ - |
Consumer Staples |
69,503 |
69,503 |
- |
- |
Energy |
139,808 |
139,808 |
- |
- |
Financials |
481,946 |
468,132 |
13,814 |
- |
Health Care |
200,288 |
200,288 |
- |
- |
Industrials |
357,774 |
357,774 |
- |
- |
Information Technology |
325,409 |
325,405 |
4 |
- |
Materials |
165,878 |
165,878 |
- |
- |
Telecommunication Services |
9,832 |
9,832 |
- |
- |
Utilities |
89,336 |
89,336 |
- |
- |
U.S. Government and Government Agency Obligations |
1,140 |
- |
1,140 |
- |
Money Market Funds |
107,442 |
107,442 |
- |
- |
Total Investments in Securities: |
$ 2,210,432 |
$ 2,195,474 |
$ 14,958 |
$ - |
Derivative Instruments: |
||||
Assets |
||||
Futures Contracts |
$ 13 |
$ 13 |
$ - |
$ - |
Value of Derivative Instruments |
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of May 31, 2014. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements. |
Primary Risk Exposure / |
Value |
|
|
Asset |
Liability |
Equity Risk |
||
Futures Contracts (a) |
$ 13 |
$ - |
Total Value of Derivatives |
$ 13 |
$ - |
(a) Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. Only the period end receivable or payable for daily variation margin and net unrealized appreciation (depreciation) are presented in the Statement of Assets and Liabilities. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Amounts in thousands (except per-share amounts) |
May 31, 2014 (Unaudited) |
|
|
|
|
Assets |
|
|
Investment in securities, at value (including securities loaned of $53,825) - See accompanying schedule: Unaffiliated issuers (cost $1,831,220) |
$ 2,102,990 |
|
Fidelity Central Funds (cost $107,442) |
107,442 |
|
Total Investments (cost $1,938,662) |
|
$ 2,210,432 |
Cash |
|
52 |
Receivable for investments sold |
|
40,897 |
Receivable for fund shares sold |
|
843 |
Dividends receivable |
|
1,202 |
Distributions receivable from Fidelity Central Funds |
|
14 |
Prepaid expenses |
|
1 |
Other receivables |
|
22 |
Total assets |
|
2,253,463 |
|
|
|
Liabilities |
|
|
Payable for investments purchased |
$ 39,114 |
|
Payable for fund shares redeemed |
2,970 |
|
Accrued management fee |
995 |
|
Distribution and service plan fees payable |
634 |
|
Payable for daily variation margin for derivative instruments |
8 |
|
Other affiliated payables |
425 |
|
Other payables and accrued expenses |
39 |
|
Collateral on securities loaned, at value |
55,202 |
|
Total liabilities |
|
99,387 |
|
|
|
Net Assets |
|
$ 2,154,076 |
Net Assets consist of: |
|
|
Paid in capital |
|
$ 2,254,340 |
Distributions in excess of net investment income |
|
(2,469) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions |
|
(369,583) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies |
|
271,788 |
Net Assets |
|
$ 2,154,076 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Amounts in thousands (except per-share amounts) |
May 31, 2014 (Unaudited) |
|
|
|
|
Calculation of Maximum Offering Price Class A: |
|
$ 30.25 |
|
|
|
Maximum offering price per share (100/94.25 of $30.25) |
|
$ 32.10 |
Class T: |
|
$ 30.50 |
|
|
|
Maximum offering price per share (100/96.50 of $30.50) |
|
$ 31.61 |
Class B: |
|
$ 28.16 |
|
|
|
Class C: |
|
$ 28.18 |
|
|
|
Fidelity Stock Selector Mid Cap Fund: |
|
$ 31.49 |
|
|
|
Institutional Class: |
|
$ 31.56 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Amounts in thousands Six months ended May 31, 2014 (Unaudited) |
||
|
|
|
Investment Income |
|
|
Dividends |
|
$ 13,866 |
Income from Fidelity Central Funds |
|
77 |
Total income |
|
13,943 |
|
|
|
Expenses |
|
|
Management fee |
$ 5,939 |
|
Performance adjustment |
75 |
|
Transfer agent fees |
2,224 |
|
Distribution and service plan fees |
3,870 |
|
Accounting and security lending fees |
330 |
|
Custodian fees and expenses |
31 |
|
Independent trustees' compensation |
5 |
|
Registration fees |
69 |
|
Audit |
44 |
|
Legal |
9 |
|
Miscellaneous |
5 |
|
Total expenses before reductions |
12,601 |
|
Expense reductions |
(44) |
12,557 |
Net investment income (loss) |
|
1,386 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: |
|
|
Investment securities: |
|
|
Unaffiliated issuers |
169,510 |
|
Foreign currency transactions |
9 |
|
Futures contracts |
(148) |
|
Total net realized gain (loss) |
|
169,371 |
Change in net unrealized appreciation (depreciation) on: Investment securities |
(33,343) |
|
Assets and liabilities in foreign currencies |
(5) |
|
Futures contracts |
59 |
|
Total change in net unrealized appreciation (depreciation) |
|
(33,289) |
Net gain (loss) |
|
136,082 |
Net increase (decrease) in net assets resulting from operations |
|
$ 137,468 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Amounts in thousands |
Six months ended |
Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) |
$ 1,386 |
$ 5,714 |
Net realized gain (loss) |
169,371 |
287,217 |
Change in net unrealized appreciation (depreciation) |
(33,289) |
209,089 |
Net increase (decrease) in net assets resulting |
137,468 |
502,020 |
Distributions to shareholders from net investment income |
(1,252) |
(8,172) |
Distributions to shareholders from net realized gain |
- |
(2,873) |
Total distributions |
(1,252) |
(11,045) |
Share transactions - net increase (decrease) |
(121,843) |
(34,691) |
Total increase (decrease) in net assets |
14,373 |
456,284 |
|
|
|
Net Assets |
|
|
Beginning of period |
2,139,703 |
1,683,419 |
End of period (including distributions in excess of net investment income of $2,469 and distributions in excess of net investment income of $2,603, respectively) |
$ 2,154,076 |
$ 2,139,703 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 28.37 |
$ 22.16 |
$ 19.15 |
$ 19.22 |
$ 15.75 |
$ 10.52 |
Income from Investment |
|
|
|
|
|
|
Net investment income (loss) E |
.03 |
.10 |
.09 |
.08H |
(.02) |
.03 |
Net realized and unrealized gain (loss) |
1.86 |
6.29 |
3.02 |
(.15) |
3.55 |
5.20 |
Total from investment operations |
1.89 |
6.39 |
3.11 |
(.07) |
3.53 |
5.23 |
Distributions from net investment income |
(.01) |
(.14) |
(.10) |
- |
(.03) I |
- |
Distributions from net realized gain |
- |
(.04) |
- |
- |
(.03) I |
- |
Total distributions |
(.01) |
(.18) |
(.10) |
- |
(.06) |
- |
Net asset value, end of period |
$ 30.25 |
$ 28.37 |
$ 22.16 |
$ 19.15 |
$ 19.22 |
$ 15.75 |
Total Return B, C, D |
6.65% |
29.07% |
16.32% |
(.36)% |
22.48% |
49.71% |
Ratios to Average Net Assets F, J |
|
|
|
|
|
|
Expenses before reductions |
1.07% A |
.95% |
.94% |
.92% |
.86% |
.83% |
Expenses net of fee waivers, if any |
1.07% A |
.95% |
.94% |
.92% |
.86% |
.83% |
Expenses net of all reductions |
1.06% A |
.92% |
.94% |
.91% |
.84% |
.81% |
Net investment income (loss) |
.23% A |
.39% |
.41% |
.39% H |
(.12)% |
.25% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 698 |
$ 692 |
$ 593 |
$ 644 |
$ 945 |
$ 906 |
Portfolio turnover rate G |
91% A |
79% K |
72% |
198% |
141% |
244% |
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 Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a large, non-recurring dividend which amounted to $.05 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .12%.
I The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
K The portfolio turnover rate does not include the assets acquired in the merger.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 28.63 |
$ 22.36 |
$ 19.30 |
$ 19.41 |
$ 15.89 |
$ 10.64 |
Income from Investment |
|
|
|
|
|
|
Net investment income (loss) E |
- L |
.04 |
.05 |
.04H |
(.05) |
.01 |
Net realized and unrealized gain (loss) |
1.87 |
6.36 |
3.05 |
(.15) |
3.59 |
5.24 |
Total from investment operations |
1.87 |
6.40 |
3.10 |
(.11) |
3.54 |
5.25 |
Distributions from net investment income |
- |
(.09) |
(.04) |
- |
- |
- |
Distributions from net realized gain |
- |
(.04) |
- |
- |
(.02) I |
- |
Total distributions |
- |
(.13) |
(.04) |
- |
(.02) |
- |
Net asset value, end of period |
$ 30.50 |
$ 28.63 |
$ 22.36 |
$ 19.30 |
$ 19.41 |
$ 15.89 |
Total Return B, C, D |
6.53% |
28.80% |
16.12% |
(.57)% |
22.31% |
49.34% |
Ratios to Average Net Assets F, J |
|
|
|
|
|
|
Expenses before reductions |
1.29% A |
1.16% |
1.14% |
1.11% |
1.03% |
1.02% |
Expenses net of fee waivers, if any |
1.29% A |
1.16% |
1.14% |
1.11% |
1.03% |
1.02% |
Expenses net of all reductions |
1.29% A |
1.13% |
1.13% |
1.10% |
1.01% |
.99% |
Net investment income (loss) |
-% A,M |
.17% |
.22% |
.20% H |
(.30)% |
.07% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 803 |
$ 817 |
$ 755 |
$ 871 |
$ 1,282 |
$ 1,520 |
Portfolio turnover rate G |
91% A |
79% K |
72% |
198% |
141% |
244% |
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 Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a large, non-recurring dividend which amounted to $.05 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.07)%.
I The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
K The portfolio turnover rate does not include the assets acquired in the merger.
L Amount represents less than $.01per share.
M Amount represents less than .01%.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 26.51 |
$ 20.71 |
$ 17.94 |
$ 18.15 |
$ 14.93 |
$ 10.05 |
Income from Investment |
|
|
|
|
|
|
Net investment income (loss) E |
(.08) |
(.10) |
(.07) |
(.07) H |
(.15) |
(.06) |
Net realized and unrealized gain (loss) |
1.73 |
5.90 |
2.84 |
(.14) |
3.37 |
4.94 |
Total from investment operations |
1.65 |
5.80 |
2.77 |
(.21) |
3.22 |
4.88 |
Distributions from net investment income |
- |
- |
- |
- |
- |
- |
Distributions from net realized gain |
- |
- |
- |
- |
- |
- |
Total distributions |
- |
- |
- |
- |
- |
- |
Net asset value, end of period |
$ 28.16 |
$ 26.51 |
$ 20.71 |
$ 17.94 |
$ 18.15 |
$ 14.93 |
Total Return B, C, D |
6.22% |
28.01% |
15.44% |
(1.16)% |
21.57% |
48.56% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions |
1.91% A |
1.76% |
1.73% |
1.71% |
1.63% |
1.59% |
Expenses net of fee waivers, if any |
1.91% A |
1.76% |
1.73% |
1.71% |
1.63% |
1.59% |
Expenses net of all reductions |
1.90% A |
1.74% |
1.73% |
1.70% |
1.61% |
1.57% |
Net investment income (loss) |
(.61)% A |
(.43)% |
(.38)% |
(.40)% H |
(.90)% |
(.51)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 18 |
$ 21 |
$ 22 |
$ 28 |
$ 75 |
$ 131 |
Portfolio turnover rate G |
91% A |
79% J |
72% |
198% |
141% |
244% |
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 Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a large, non-recurring dividend which amounted to $.05 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.67)%.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J The portfolio turnover rate does not include the assets acquired in the merger.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 26.52 |
$ 20.73 |
$ 17.95 |
$ 18.15 |
$ 14.93 |
$ 10.05 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E |
(.07) |
(.09) |
(.06) |
(.07) H |
(.14) |
(.06) |
Net realized and unrealized gain (loss) |
1.73 |
5.91 |
2.84 |
(.13) |
3.36 |
4.94 |
Total from investment operations |
1.66 |
5.82 |
2.78 |
(.20) |
3.22 |
4.88 |
Distributions from net investment income |
- |
(.02) |
- |
- |
- |
- |
Distributions from net realized gain |
- |
(.01) |
- |
- |
- |
- |
Total distributions |
- |
(.03) |
- |
- |
- |
- |
Net asset value, end of period |
$ 28.18 |
$ 26.52 |
$ 20.73 |
$ 17.95 |
$ 18.15 |
$ 14.93 |
Total Return B, C, D |
6.26% |
28.09% |
15.49% |
(1.10)% |
21.57% |
48.56% |
Ratios to Average Net Assets F, I |
|
|
|
|
|
|
Expenses before reductions |
1.82% A |
1.69% |
1.68% |
1.66% |
1.60% |
1.58% |
Expenses net of fee waivers, if any |
1.82% A |
1.69% |
1.68% |
1.66% |
1.60% |
1.58% |
Expenses net of all reductions |
1.81% A |
1.67% |
1.68% |
1.65% |
1.58% |
1.55% |
Net investment income (loss) |
(.52)% A |
(.36)% |
(.33)% |
(.35)% H |
(.86)% |
(.50)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 172 |
$ 172 |
$ 141 |
$ 150 |
$ 189 |
$ 186 |
Portfolio turnover rate G |
91% A |
79% J |
72% |
198% |
141% |
244% |
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 Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a large, non-recurring dividend which amounted to $.05 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.62)%.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J The portfolio turnover rate does not include the assets acquired in the merger.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended |
Years ended |
|
|
(Unaudited) |
2013 |
2012G |
Selected Per-Share Data |
|
|
|
Net asset value, beginning of period G |
$ 29.56 |
$ 23.14 |
$ 21.20 |
Income from Investment Operations |
|
|
|
Net investment income (loss) D |
.07 |
.17 |
.09 |
Net realized and unrealized gain (loss) |
1.93 |
6.54 |
1.85 |
Total from investment operations |
2.00 |
6.71 |
1.94 |
Distributions from net investment income |
(.07) |
(.25) |
- |
Distributions from net realized gain |
- |
(.04) |
- |
Total distributions |
(.07) |
(.29) |
- |
Net asset value, end of period |
$ 31.49 |
$ 29.56 |
$ 23.14 |
Total Return B, C |
6.78% |
29.36% |
9.15% |
Ratios to Average Net Assets E, H |
|
|
|
Expenses before reductions |
.83% A |
.71% |
.59% A |
Expenses net of fee waivers, if any |
.83% A |
.71% |
.59% A |
Expenses net of all reductions |
.83% A |
.69% |
.58% A |
Net investment income (loss) |
.47% A |
.62% |
.86% A |
Supplemental Data |
|
|
|
Net assets, end of period (in millions) |
$ 232 |
$ 225 |
$ 1 |
Portfolio turnover rateF |
91% A |
79% I |
72% |
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 June 6, 2012 (commencement of sale of shares) to November 30, 2012.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I The portfolio turnover rate does not include the assets acquired in the merger.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 29.64 |
$ 23.14 |
$ 20.01 |
$ 20.02 |
$ 16.40 |
$ 10.92 |
Income from Investment |
|
|
|
|
|
|
Net investment income (loss) D |
.08 |
.18 |
.15 |
.14G |
.04 |
.08 |
Net realized and unrealized gain (loss) |
1.92 |
6.56 |
3.15 |
(.15) |
3.69 |
5.40 |
Total from investment operations |
2.00 |
6.74 |
3.30 |
(.01) |
3.73 |
5.48 |
Distributions from net investment income |
(.08) |
(.20) |
(.17) |
- |
(.08) H |
- |
Distributions from net realized gain |
- |
(.04) |
- |
- |
(.03) H |
- |
Total distributions |
(.08) |
(.24) |
(.17) |
- |
(.11) |
- |
Net asset value, end of period |
$ 31.56 |
$ 29.64 |
$ 23.14 |
$ 20.01 |
$ 20.02 |
$ 16.40 |
Total Return B, C |
6.77% |
29.44% |
16.66% |
(.05)% |
22.86% |
50.18% |
Ratios to Average Net Assets E, I |
|
|
|
|
|
|
Expenses before reductions |
.80% A |
.67% |
.65% |
.62% |
.54% |
.50% |
Expenses net of fee waivers, if any |
.80% A |
.67% |
.65% |
.62% |
.54% |
.50% |
Expenses net of all reductions |
.80% A |
.65% |
.64% |
.61% |
.52% |
.47% |
Net investment income (loss) |
.49% A |
.66% |
.71% |
.69% G |
.20% |
.59% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 230 |
$ 214 |
$ 172 |
$ 234 |
$ 354 |
$ 319 |
Portfolio turnover rate F |
91% A |
79% J |
72% |
198% |
141% |
244% |
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 Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .42%.
H The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J The portfolio turnover rate does not include the assets acquired in the merger.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
For the period ended May 31, 2014 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor® Stock Selector Mid Cap Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, Fidelity Stock Selector Mid Cap Fund and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. U.S. government and government agency obligations are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded and are categorized as Level 1 in the hierarchy. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of May 31, 2014 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to futures contracts, foreign currency transactions, passive foreign investment companies (PFIC), market discount, partnerships, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation |
$ 317,652 |
Gross unrealized depreciation |
(47,278) |
Net unrealized appreciation (depreciation) on securities and other investments |
$ 270,374 |
Tax cost |
$ 1,940,058 |
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.
Fiscal year of expiration |
|
2015 |
$ (1,870) |
2016 |
(389,648) |
2017 |
(148,171) |
Total capital loss carryforward |
$ (539,689) |
The Fund acquired $15,643 of its capital loss carryforward as part of a merger in a prior period. The losses acquired that will be available to offset future capital gains of the Fund will be limited to approximately $935 per year.
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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Restricted Securities - continued
transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
The Fund used derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
The Fund's use of derivatives increased or decreased its exposure to the following risks:
Equity Risk |
Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Counterparty credit risk related to exchange-traded futures contracts may be mitigated by the protection provided by the exchange on which they trade.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and
Semiannual Report
4. Derivative Instruments - continued
Risk Exposures and the Use of Derivative Instruments - continued
Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent daily payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable, if any, is included in daily variation margin for derivative instruments in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract.
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts." The underlying face amount at value reflects each contract's exposure to the underlying instrument or index at period end and is representative of volume of activity during the period. Securities deposited to meet initial margin requirements are identified in the Schedule of Investments.
During the period the Fund recognized net realized gain (loss) of $(148) and a change in net unrealized appreciation (depreciation) of $59 related to its investment in futures contracts. These amounts are included in the Statement of Operations.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $962,959 and $1,091,844, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
6. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of the Institutional Class of the Fund as compared to its benchmark index, the S&P MidCap 400® Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .56% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
|
Distribution |
Service |
Total Fees |
Retained |
Class A |
-% |
.25% |
$ 875 |
$ 67 |
Class T |
.25% |
.25% |
2,029 |
19 |
Class B |
.75% |
.25% |
97 |
73 |
Class C |
.75% |
.25% |
869 |
26 |
|
|
|
$ 3,870 |
$ 185 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
|
Retained |
Class A |
$ 21 |
Class T |
11 |
Class B* |
5 |
Class C* |
2 |
|
$ 39 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
|
Amount |
% of |
Class A |
$ 753 |
.22 |
Class T |
774 |
.19 |
Class B |
29 |
.30 |
Class C |
185 |
.21 |
Fidelity Stock Selector Mid Cap Fund |
259 |
.23 |
Institutional Class |
224 |
.20 |
|
$ 2,224 |
|
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
6. Fees and Other Transactions with Affiliates - continued
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $17 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $2 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $55. During the period, there were no securities loaned to FCM.
Semiannual Report
9. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $42 for the period.
In addition, the investment adviser reimbursed a portion of the Fund's operating expenses during the period in the amount of $2.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
|
Six months ended |
Year ended |
From net investment income |
|
|
Class A |
$ 146 |
$ 3,606 |
Class T |
- |
2,972 |
Class C |
- |
121 |
Fidelity Stock Selector Mid Cap Fund |
530 |
16 |
Institutional Class |
576 |
1,457 |
Total |
$ 1,252 |
$ 8,172 |
From net realized gain |
|
|
Class A |
$ - |
$ 1,106 |
Class T |
- |
1,403 |
Class C |
- |
54 |
Fidelity Stock Selector Mid Cap Fund |
- |
3 |
Institutional Class |
- |
307 |
Total |
$ - |
$ 2,873 |
11. Share Transactions.
Transactions for each class of shares were as follows:
|
Shares |
Dollars |
||
|
Six months ended |
Year ended |
Six months ended |
Year ended |
Class A |
|
|
|
|
Shares sold |
688 |
1,576 |
$ 20,297 |
$ 39,740 |
Issued in exchange for shares of Fidelity Advisor Growth Strategies Fund |
- |
483 |
- |
11,196 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
11. Share Transactions - continued
|
Shares |
Dollars |
||
|
Six months ended |
Year ended |
Six months ended |
Year ended |
Class A |
|
|
|
|
Issued in exchange for shares of Fidelity Mid Cap Growth Fund |
410 |
$ 9,497 |
||
Reinvestment of distributions |
5 |
196 |
134 |
4,309 |
Shares redeemed |
(2,002) |
(5,036) |
(59,052) |
(125,748) |
Net increase (decrease) |
(1,309) |
(2,371) |
$ (38,621) |
$ (61,006) |
Class T |
|
|
|
|
Shares sold |
1,108 |
2,840 |
$ 33,060 |
$ 71,906 |
Issued in exchange for shares of Fidelity Advisor Growth Strategies Fund |
- |
643 |
- |
15,054 |
Issued in exchange for shares of Fidelity Mid Cap Growth Fund |
- |
182 |
- |
4,267 |
Reinvestment of distributions |
- |
188 |
- |
4,170 |
Shares redeemed |
(3,293) |
(9,076) |
(97,938) |
(228,859) |
Net increase (decrease) |
(2,185) |
(5,223) |
$ (64,878) |
$ (133,462) |
Class B |
|
|
|
|
Shares sold |
3 |
4 |
$ 73 |
$ 95 |
Issued in exchange for shares of Fidelity Advisor Growth Strategies Fund |
- |
75 |
- |
1,640 |
Issued in exchange for shares of Fidelity Mid Cap Growth Fund |
- |
28 |
- |
614 |
Shares redeemed |
(149) |
(363) |
(4,080) |
(8,472) |
Net increase (decrease) |
(146) |
(256) |
$ (4,007) |
$ (6,123) |
Class C |
|
|
|
|
Shares sold |
106 |
236 |
$ 2,913 |
$ 5,603 |
Issued in exchange for shares of Fidelity Advisor Growth Strategies Fund |
- |
209 |
- |
4,553 |
Issued in exchange for shares of Fidelity Mid Cap Growth Fund |
- |
219 |
- |
4,769 |
Reinvestment of distributions |
- |
7 |
- |
152 |
Shares redeemed |
(473) |
(993) |
(13,051) |
(23,227) |
Net increase (decrease) |
(367) |
(322) |
$ (10,138) |
$ (8,150) |
Semiannual Report
11. Share Transactions - continued
|
Shares |
Dollars |
||
|
Six months ended |
Year ended |
Six months ended |
Year ended |
Fidelity Stock Selector Mid Cap Fund |
|
|
|
|
Shares sold |
563 |
1,327 |
$ 17,344 |
$ 35,648 |
Issued in exchange for shares of Fidelity Mid Cap Growth Fund |
- |
8,810 |
- |
212,139 |
Reinvestment of distributions |
18 |
1 |
518 |
16 |
Shares redeemed |
(801) |
(2,600) |
(24,466) |
(67,266) |
Net increase (decrease) |
(220) |
7,538 |
$ (6,604) |
$ 180,537 |
Institutional Class |
|
|
|
|
Shares sold |
826 |
1,231 |
$ 25,335 |
$ 32,432 |
Issued in exchange for shares of Fidelity Advisor Growth Strategies Fund |
- |
20 |
- |
479 |
Issued in exchange for shares of Fidelity Mid Cap Growth Fund |
- |
37 |
- |
888 |
Reinvestment of distributions |
17 |
68 |
502 |
1,564 |
Shares redeemed |
(766) |
(1,567) |
(23,432) |
(41,850) |
Net increase (decrease) |
77 |
(211) |
$ 2,405 |
$ (6,487) |
12. Merger Information.
On January 11, 2013, the Fund acquired all of the assets and assumed all of the liabilities of Fidelity Advisor® Growth Strategies Fund and Fidelity Mid Cap Growth Fund ("Target Funds") pursuant to agreements and plans of reorganization approved by the Board of Trustees ("The Board") on June 12, 2012. The acquisition was accomplished by an exchange of shares of each class of the Fund for corresponding shares then outstanding of the Target Funds at their net asset value on the acquisition date. The reorganization provides shareholders of the Target Funds access to a larger portfolio with a similar investment objective. The reorganization qualified as a tax-free reorganization for federal income tax purposes with no gain or loss recognized to the funds or their shareholders. The Target Funds' net assets of $32,922, including securities of $32,974 and unrealized appreciation of $2,113 for Fidelity Advisor Growth Strategies Fund; and net assets of $232,174, including securities of $233,755 and unrealized appreciation of $14,520 for Fidelity Mid Cap Growth Fund were combined with the Fund's net assets of $1,716,041 for total net assets after the acquisition of $1,981,137.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
12. Merger Information - continued
Pro forma results of operations of the combined entity for the entire period ended November 30, 2013, as though the acquisition had occurred as of the beginning of the year (rather than on the actual acquisition date), are as follows:
Net investment income (loss) |
$ 6,032 |
Total net realized gain (loss) |
288,183 |
Total change in net unrealized appreciation (depreciation) |
219,225 |
Net increase (decrease) in net assets resulting from operations |
$ 513,440 |
Because the combined investment portfolios have been managed as a single portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of the acquired fund that have been included in the Fund's accompanying Statement of Operations since January 11, 2013.
13. 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
Investment Adviser
Fidelity Management & Research Company Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Brown Brothers Harriman & Co.
Boston, MA
The Fidelity Telephone Connection
Mutual Fund 24-Hour Service
Exchanges/Redemptions
and Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
Fidelity Automated Service
Telephone (FAST®)
1-800-544-5555
Automated line for quickest service
(Fidelity Investment logo)(registered trademark)
SKD-USAN-0714 1.940901.101
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Value Strategies
Fund - Institutional Class
Semiannual Report
May 31, 2014
(Fidelity Cover Art)
Shareholder Expense Example |
An example of shareholder expenses. |
|
Investment Changes |
A summary of major shifts in the fund's investments over the past six months. |
|
Investments |
A complete list of the fund's investments with their market values. |
|
Financial Statements |
Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
|
Notes |
Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (December 1, 2013 to May 31, 2014).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
|
Annualized |
Beginning |
Ending |
Expenses Paid |
Class A |
.96% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,054.40 |
$ 4.92 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,020.14 |
$ 4.84 |
Class T |
1.16% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,053.30 |
$ 5.94 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,019.15 |
$ 5.84 |
Class B |
1.78% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,050.20 |
$ 9.10 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,016.06 |
$ 8.95 |
Class C |
1.71% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,050.40 |
$ 8.74 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,016.40 |
$ 8.60 |
Fidelity Value Strategies Fund |
.67% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,056.20 |
$ 3.43 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,021.59 |
$ 3.38 |
Fidelity Value Strategies Fund Class K |
.52% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,057.10 |
$ 2.67 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,022.34 |
$ 2.62 |
Institutional Class |
.70% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,056.00 |
$ 3.59 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,021.44 |
$ 3.53 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
Semiannual Report
Top Ten Stocks as of May 31, 2014 |
||
|
% of fund's |
% of fund's net assets |
LyondellBasell Industries NV Class A |
6.7 |
5.8 |
Sanofi SA sponsored ADR |
3.7 |
3.8 |
Apple, Inc. |
3.3 |
3.0 |
Bank of America Corp. |
3.3 |
3.5 |
Delphi Automotive PLC |
3.2 |
2.8 |
Symantec Corp. |
3.0 |
3.1 |
General Motors Co. |
2.9 |
3.7 |
U.S. Bancorp |
2.3 |
2.2 |
Alliant Techsystems, Inc. |
2.3 |
2.2 |
AFLAC, Inc. |
2.2 |
2.4 |
|
32.9 |
|
Top Five Market Sectors as of May 31, 2014 |
||
|
% of fund's |
% of fund's net assets |
Consumer Discretionary |
19.0 |
23.9 |
Health Care |
15.0 |
14.3 |
Financials |
12.4 |
11.4 |
Information Technology |
12.0 |
12.4 |
Materials |
9.4 |
8.8 |
Asset Allocation (% of fund's net assets) |
|||||||
As of May 31, 2014 * |
As of November 30, 2013 ** |
||||||
Stocks 91.2% |
|
Stocks 93.9% |
|
||||
Bonds 0.3% |
|
Bonds 0.4% |
|
||||
Short-Term |
|
Short-Term |
|
||||
* Foreign investments |
18.4% |
|
** Foreign investments |
17.0% |
|
Semiannual Report
Showing Percentage of Net Assets
Common Stocks - 91.2% |
|||
Shares |
Value (000s) |
||
CONSUMER DISCRETIONARY - 19.0% |
|||
Auto Components - 4.4% |
|||
Delphi Automotive PLC |
719,777 |
$ 49,708 |
|
Tenneco, Inc. (a) |
164,524 |
10,488 |
|
TRW Automotive Holdings Corp. (a) |
91,400 |
7,757 |
|
|
67,953 |
||
Automobiles - 3.5% |
|||
Bayerische Motoren Werke AG (BMW) |
36,387 |
4,568 |
|
General Motors Co. |
1,284,836 |
44,430 |
|
Volkswagen AG |
18,856 |
4,967 |
|
|
53,965 |
||
Diversified Consumer Services - 0.9% |
|||
Service Corp. International |
729,650 |
14,608 |
|
Hotels, Restaurants & Leisure - 1.7% |
|||
Cedar Fair LP (depositary unit) |
227,420 |
11,833 |
|
Wyndham Worldwide Corp. |
199,867 |
14,776 |
|
|
26,609 |
||
Household Durables - 3.4% |
|||
Lennar Corp. Class A (d) |
424,700 |
17,370 |
|
PulteGroup, Inc. |
744,504 |
14,562 |
|
Ryland Group, Inc. |
151,400 |
5,708 |
|
Standard Pacific Corp. (a) |
1,866,450 |
14,988 |
|
|
52,628 |
||
Leisure Products - 0.9% |
|||
Hasbro, Inc. |
266,797 |
14,327 |
|
Media - 1.0% |
|||
Omnicom Group, Inc. |
120,112 |
8,546 |
|
Regal Entertainment Group Class A (d) |
363,100 |
7,084 |
|
|
15,630 |
||
Specialty Retail - 3.2% |
|||
Asbury Automotive Group, Inc. (a) |
343,641 |
22,213 |
|
GameStop Corp. Class A (d) |
751,713 |
28,452 |
|
|
50,665 |
||
TOTAL CONSUMER DISCRETIONARY |
296,385 |
||
CONSUMER STAPLES - 5.3% |
|||
Beverages - 1.6% |
|||
Cott Corp. (d) |
3,511,564 |
24,743 |
|
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
CONSUMER STAPLES - continued |
|||
Food & Staples Retailing - 1.2% |
|||
CVS Caremark Corp. |
237,100 |
$ 18,570 |
|
Food Products - 1.8% |
|||
Bunge Ltd. |
102,214 |
7,943 |
|
Calavo Growers, Inc. |
232,028 |
7,256 |
|
SunOpta, Inc. (a) |
984,885 |
13,247 |
|
|
28,446 |
||
Household Products - 0.7% |
|||
Procter & Gamble Co. |
142,100 |
11,480 |
|
TOTAL CONSUMER STAPLES |
83,239 |
||
ENERGY - 4.9% |
|||
Energy Equipment & Services - 0.8% |
|||
Halliburton Co. |
183,600 |
11,868 |
|
Oil, Gas & Consumable Fuels - 4.1% |
|||
Denbury Resources, Inc. (d) |
1,516,780 |
25,618 |
|
EP Energy Corp. |
274,600 |
5,508 |
|
HollyFrontier Corp. |
153,000 |
7,535 |
|
The Williams Companies, Inc. |
154,500 |
7,255 |
|
Valero Energy Corp. |
327,300 |
18,345 |
|
|
64,261 |
||
TOTAL ENERGY |
76,129 |
||
FINANCIALS - 12.4% |
|||
Banks - 8.5% |
|||
Bank of America Corp. |
3,355,213 |
50,798 |
|
CIT Group, Inc. |
157,349 |
6,999 |
|
Citigroup, Inc. |
227,323 |
10,814 |
|
Regions Financial Corp. |
778,163 |
7,929 |
|
U.S. Bancorp |
862,484 |
36,388 |
|
Wells Fargo & Co. |
377,370 |
19,163 |
|
|
132,091 |
||
Capital Markets - 0.5% |
|||
The Blackstone Group LP |
267,400 |
8,311 |
|
Insurance - 3.4% |
|||
AFLAC, Inc. |
549,986 |
33,676 |
|
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
FINANCIALS - continued |
|||
Insurance - continued |
|||
American International Group, Inc. |
201,698 |
$ 10,906 |
|
Unum Group |
235,260 |
7,978 |
|
|
52,560 |
||
TOTAL FINANCIALS |
192,962 |
||
HEALTH CARE - 15.0% |
|||
Health Care Equipment & Supplies - 5.1% |
|||
Alere, Inc. (a) |
172,283 |
6,163 |
|
Boston Scientific Corp. (a) |
1,785,400 |
22,907 |
|
C.R. Bard, Inc. |
75,400 |
11,152 |
|
St. Jude Medical, Inc. |
463,300 |
30,068 |
|
Zimmer Holdings, Inc. |
87,600 |
9,141 |
|
|
79,431 |
||
Health Care Providers & Services - 2.3% |
|||
DaVita HealthCare Partners, Inc. (a) |
158,496 |
11,188 |
|
Universal Health Services, Inc. Class B |
278,914 |
24,982 |
|
|
36,170 |
||
Life Sciences Tools & Services - 1.2% |
|||
Agilent Technologies, Inc. |
180,700 |
10,289 |
|
PerkinElmer, Inc. |
207,500 |
9,331 |
|
|
19,620 |
||
Pharmaceuticals - 6.4% |
|||
Johnson & Johnson |
187,800 |
19,054 |
|
Merck & Co., Inc. |
390,800 |
22,612 |
|
Sanofi SA sponsored ADR |
1,088,444 |
58,014 |
|
|
99,680 |
||
TOTAL HEALTH CARE |
234,901 |
||
INDUSTRIALS - 7.3% |
|||
Aerospace & Defense - 5.3% |
|||
Alliant Techsystems, Inc. |
278,850 |
35,216 |
|
Esterline Technologies Corp. (a) |
180,022 |
20,063 |
|
Honeywell International, Inc. |
139,500 |
12,994 |
|
Textron, Inc. |
223,717 |
8,774 |
|
United Technologies Corp. |
47,400 |
5,509 |
|
|
82,556 |
||
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
INDUSTRIALS - continued |
|||
Building Products - 0.7% |
|||
Allegion PLC |
69,366 |
$ 3,634 |
|
Armstrong World Industries, Inc. (a) |
143,230 |
7,601 |
|
|
11,235 |
||
Machinery - 1.0% |
|||
Blount International, Inc. (a) |
292,004 |
3,557 |
|
Ingersoll-Rand PLC |
208,100 |
12,449 |
|
|
16,006 |
||
Trading Companies & Distributors - 0.3% |
|||
Aircastle Ltd. |
290,150 |
4,869 |
|
TOTAL INDUSTRIALS |
114,666 |
||
INFORMATION TECHNOLOGY - 12.0% |
|||
Communications Equipment - 0.3% |
|||
Cisco Systems, Inc. |
204,600 |
5,037 |
|
IT Services - 0.6% |
|||
Fidelity National Information Services, Inc. |
165,730 |
8,974 |
|
Semiconductors & Semiconductor Equipment - 3.7% |
|||
MagnaChip Semiconductor Corp. (a) |
978,700 |
12,155 |
|
Micron Technology, Inc. (a) |
911,183 |
26,051 |
|
ON Semiconductor Corp. (a) |
855,870 |
7,438 |
|
Spansion, Inc. Class A (a) |
613,543 |
11,688 |
|
|
57,332 |
||
Software - 4.1% |
|||
Microsoft Corp. |
429,324 |
17,577 |
|
Symantec Corp. |
2,116,671 |
46,546 |
|
|
64,123 |
||
Technology Hardware, Storage & Peripherals - 3.3% |
|||
Apple, Inc. |
80,880 |
51,197 |
|
TOTAL INFORMATION TECHNOLOGY |
186,663 |
||
MATERIALS - 9.4% |
|||
Chemicals - 9.0% |
|||
Ashland, Inc. |
83,100 |
8,559 |
|
Axiall Corp. |
81,626 |
3,772 |
|
LyondellBasell Industries NV Class A |
1,055,392 |
105,085 |
|
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
MATERIALS - continued |
|||
Chemicals - continued |
|||
PPG Industries, Inc. |
77,296 |
$ 15,584 |
|
W.R. Grace & Co. (a) |
83,628 |
7,700 |
|
|
140,700 |
||
Metals & Mining - 0.4% |
|||
Carpenter Technology Corp. |
86,796 |
5,424 |
|
TOTAL MATERIALS |
146,124 |
||
TELECOMMUNICATION SERVICES - 1.6% |
|||
Diversified Telecommunication Services - 1.6% |
|||
Level 3 Communications, Inc. (a) |
558,139 |
24,363 |
|
UTILITIES - 4.3% |
|||
Electric Utilities - 0.4% |
|||
NextEra Energy, Inc. |
67,700 |
6,591 |
|
Independent Power Producers & Energy Traders - 2.8% |
|||
Calpine Corp. (a) |
822,963 |
19,191 |
|
The AES Corp. |
1,687,800 |
23,798 |
|
|
42,989 |
||
Multi-Utilities - 1.1% |
|||
Sempra Energy |
179,639 |
18,027 |
|
TOTAL UTILITIES |
67,607 |
||
TOTAL COMMON STOCKS (Cost $907,858) |
|
Nonconvertible Bonds - 0.3% |
||||
|
Principal Amount (000s) |
|
||
ENERGY - 0.3% |
||||
Oil, Gas & Consumable Fuels - 0.3% |
||||
Alpha Natural Resources, Inc. 6.25% 6/1/21 (Cost $6,457) |
|
$ 7,670 |
|
|
Money Market Funds - 11.7% |
|||
Shares |
Value (000s) |
||
Fidelity Cash Central Fund, 0.10% (b) |
134,670,042 |
$ 134,670 |
|
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) |
47,596,174 |
47,596 |
|
TOTAL MONEY MARKET FUNDS (Cost $182,266) |
|
||
TOTAL INVESTMENT PORTFOLIO - 103.2% (Cost $1,096,581) |
1,610,559 |
||
NET OTHER ASSETS (LIABILITIES) - (3.2)% |
(50,575) |
||
NET ASSETS - 100% |
$ 1,559,984 |
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) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan 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 |
$ 61 |
Fidelity Securities Lending Cash Central Fund |
128 |
Total |
$ 189 |
Other Affiliated Issuers |
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate |
Value, beginning of period |
Purchases |
Sales Proceeds |
Dividend Income |
Value, |
The Bon-Ton Stores, Inc. |
$ 34,067 |
$ - |
$ 18,895 |
$ 96 |
$ - |
Other Information |
The following is a summary of the inputs used, as of May 31, 2014, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
||||
Description |
Total |
Level 1 |
Level 2 |
Level 3 |
Investments in Securities: |
||||
Equities: |
||||
Consumer Discretionary |
$ 296,385 |
$ 296,385 |
$ - |
$ - |
Consumer Staples |
83,239 |
83,239 |
- |
- |
Energy |
76,129 |
76,129 |
- |
- |
Financials |
192,962 |
192,962 |
- |
- |
Health Care |
234,901 |
234,901 |
- |
- |
Industrials |
114,666 |
114,666 |
- |
- |
Information Technology |
186,663 |
186,663 |
- |
- |
Materials |
146,124 |
146,124 |
- |
- |
Telecommunication Services |
24,363 |
24,363 |
- |
- |
Utilities |
67,607 |
67,607 |
- |
- |
Corporate Bonds |
5,254 |
- |
5,254 |
- |
Money Market Funds |
182,266 |
182,266 |
- |
- |
Total Investments in Securities: |
$ 1,610,559 |
$ 1,605,305 |
$ 5,254 |
$ - |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited): |
United States of America |
81.6% |
Netherlands |
6.7% |
France |
3.7% |
Bailiwick of Jersey |
3.2% |
Canada |
2.4% |
Ireland |
1.0% |
Others (Individually Less Than 1%) |
1.4% |
|
100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Amounts in thousands (except per-share amounts) |
May 31, 2014 (Unaudited) |
|
|
|
|
Assets |
|
|
Investment in securities, at value (including securities loaned of $46,094) - See accompanying schedule: Unaffiliated issuers (cost $914,315) |
$ 1,428,293 |
|
Fidelity Central Funds (cost $182,266) |
182,266 |
|
Total Investments (cost $1,096,581) |
|
$ 1,610,559 |
Receivable for fund shares sold |
|
1,284 |
Dividends receivable |
|
3,140 |
Interest receivable |
|
292 |
Distributions receivable from Fidelity Central Funds |
|
95 |
Prepaid expenses |
|
1 |
Other receivables |
|
9 |
Total assets |
|
1,615,380 |
|
|
|
Liabilities |
|
|
Payable for investments purchased |
$ 4,842 |
|
Payable for fund shares redeemed |
1,891 |
|
Accrued management fee |
505 |
|
Distribution and service plan fees payable |
239 |
|
Other affiliated payables |
292 |
|
Other payables and accrued expenses |
31 |
|
Collateral on securities loaned, at value |
47,596 |
|
Total liabilities |
|
55,396 |
|
|
|
Net Assets |
|
$ 1,559,984 |
Net Assets consist of: |
|
|
Paid in capital |
|
$ 1,286,257 |
Undistributed net investment income |
|
5,603 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions |
|
(245,855) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies |
|
513,979 |
Net Assets |
|
$ 1,559,984 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Amounts in thousands (except per-share amounts) |
May 31, 2014 (Unaudited) |
|
|
|
|
Calculation of Maximum Offering Price Class A: |
|
$ 37.73 |
|
|
|
Maximum offering price per share (100/94.25 of $37.73) |
|
$ 40.03 |
Class T: |
|
$ 39.10 |
|
|
|
Maximum offering price per share (100/96.50 of $39.10) |
|
$ 40.52 |
Class B: |
|
$ 34.51 |
|
|
|
Class C: |
|
$ 34.14 |
|
|
|
Fidelity Value Strategies Fund: |
|
$ 42.19 |
|
|
|
Fidelity Value Strategies Fund Class K: |
|
$ 42.17 |
|
|
|
Institutional Class: |
|
$ 40.27 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Amounts in thousands |
Six months ended May 31, 2014 |
|
|
|
|
Investment Income |
|
|
Dividends (including $96 earned from other affiliated issuers) |
|
$ 11,944 |
Interest |
|
300 |
Income from Fidelity Central Funds |
|
189 |
Total income |
|
12,433 |
|
|
|
Expenses |
|
|
Management fee |
$ 4,177 |
|
Performance adjustment |
(1,000) |
|
Transfer agent fees |
1,484 |
|
Distribution and service plan fees |
1,445 |
|
Accounting and security lending fees |
242 |
|
Custodian fees and expenses |
8 |
|
Independent trustees' compensation |
3 |
|
Registration fees |
105 |
|
Audit |
37 |
|
Legal |
3 |
|
Miscellaneous |
6 |
|
Total expenses before reductions |
6,510 |
|
Expense reductions |
(22) |
6,488 |
Net investment income (loss) |
|
5,945 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: |
|
|
Investment securities: |
|
|
Unaffiliated issuers |
20,094 |
|
Other affiliated issuers |
(6,098) |
|
Foreign currency transactions |
(1) |
|
Total net realized gain (loss) |
|
13,995 |
Change in net unrealized appreciation (depreciation) on: Investment securities |
62,169 |
|
Assets and liabilities in foreign currencies |
1 |
|
Total change in net unrealized appreciation (depreciation) |
|
62,170 |
Net gain (loss) |
|
76,165 |
Net increase (decrease) in net assets resulting from operations |
|
$ 82,110 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Amounts in thousands |
Six months ended May 31, 2014
|
Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) |
$ 5,945 |
$ 11,916 |
Net realized gain (loss) |
13,995 |
66,011 |
Change in net unrealized appreciation (depreciation) |
62,170 |
293,442 |
Net increase (decrease) in net assets resulting |
82,110 |
371,369 |
Distributions to shareholders from net investment income |
(10,331) |
(3,993) |
Share transactions - net increase (decrease) |
(29,873) |
77,974 |
Total increase (decrease) in net assets |
41,906 |
445,350 |
|
|
|
Net Assets |
|
|
Beginning of period |
1,518,078 |
1,072,728 |
End of period (including undistributed net investment income of $5,603 and undistributed net investment income of $9,989, respectively) |
$ 1,559,984 |
$ 1,518,078 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 36.02 |
$ 27.62 |
$ 22.71 |
$ 23.11 |
$ 18.77 |
$ 11.87 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E |
.12 |
.23 |
-H |
.13I |
.03J |
.06 |
Net realized and unrealized gain (loss) |
1.82 |
8.25 |
5.03 |
(.49) |
4.32 |
6.96 |
Total from investment operations |
1.94 |
8.48 |
5.03 |
(.36) |
4.35 |
7.02 |
Distributions from net investment income |
(.23) |
(.08) |
(.12) |
(.03)K |
- |
(.12) |
Distributions from net realized gain |
- |
- |
- |
(.01)K |
(.01) |
- |
Total distributions |
(.23) |
(.08) |
(.12) |
(.04) |
(.01) |
(.12) |
Net asset value, end of period |
$ 37.73 |
$ 36.02 |
$ 27.62 |
$ 22.71 |
$ 23.11 |
$ 18.77 |
Total ReturnB, C, D |
5.44% |
30.77% |
22.29% |
(1.57)% |
23.16% |
59.70% |
Ratios to Average Net Assets F, L |
|
|
|
|
|
|
Expenses before reductions |
.96%A |
1.04% |
1.21% |
1.18% |
1.08% |
1.03% |
Expenses net of fee waivers, if any |
.96%A |
1.04% |
1.21% |
1.18% |
1.08% |
1.03% |
Expenses net of all reductions |
.95%A |
1.03% |
1.21% |
1.17% |
1.07% |
1.02% |
Net investment income (loss) |
.69%A |
.73% |
-%H |
.51%I |
.12%J |
.39% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 243 |
$ 243 |
$ 203 |
$ 190 |
$ 221 |
$ 206 |
Portfolio turnover rateG |
5%A |
22% |
23% |
34% |
99% |
161% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.28)%. IInvestment income per share reflects a large, non-recurring dividend which amounted to $.16 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.11)%. JInvestment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.05)%. KThe amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. LExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 37.28 |
$ 28.58 |
$ 23.48 |
$ 23.90 |
$ 19.44 |
$ 12.25 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E |
.09 |
.18 |
(.05) H |
.08I |
(.01) J |
.03 |
Net realized and unrealized gain (loss) |
1.89 |
8.54 |
5.22 |
(.50) |
4.48 |
7.21 |
Total from investment operations |
1.98 |
8.72 |
5.17 |
(.42) |
4.47 |
7.24 |
Distributions from net investment income |
(.16) |
(.02) |
(.07) |
- |
- |
(.05) |
Distributions from net realized gain |
- |
- |
- |
- |
(.01) |
- |
Total distributions |
(.16) |
(.02) |
(.07) |
- |
(.01) |
(.05) |
Net asset value, end of period |
$ 39.10 |
$ 37.28 |
$ 28.58 |
$ 23.48 |
$ 23.90 |
$ 19.44 |
Total ReturnB, C, D |
5.33% |
30.52% |
22.08% |
(1.76)% |
22.98% |
59.40% |
Ratios to Average Net Assets F, K |
|
|
|
|
|
|
Expenses before reductions |
1.16%A |
1.23% |
1.38% |
1.35% |
1.26% |
1.24% |
Expenses net of fee waivers, if any |
1.16%A |
1.23% |
1.38% |
1.35% |
1.26% |
1.24% |
Expenses net of all reductions |
1.16%A |
1.22% |
1.38% |
1.35% |
1.25% |
1.22% |
Net investment income (loss) |
.48%A |
.54% |
(.17)%H |
.33%I |
(.06)%J |
.18% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 331 |
$ 335 |
$ 283 |
$ 274 |
$ 344 |
$ 339 |
Portfolio turnover rateG |
5%A |
22% |
23% |
34% |
99% |
161% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.45)%. IInvestment income per share reflects a large, non-recurring dividend which amounted to $.16 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.29)%. JInvestment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.23)%. KExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 32.86 |
$ 25.34 |
$ 20.87 |
$ 21.37 |
$ 17.48 |
$ 11.03 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E |
(.02) |
(.02) |
(.18)H |
(.06)I |
(.13) J |
(.05) |
Net realized and unrealized gain (loss) |
1.67 |
7.54 |
4.65 |
(.44) |
4.03 |
6.50 |
Total from investment operations |
1.65 |
7.52 |
4.47 |
(.50) |
3.90 |
6.45 |
Distributions from net realized gain |
- |
- |
- |
- |
(.01) |
- |
Net asset value, end of period |
$ 34.51 |
$ 32.86 |
$ 25.34 |
$ 20.87 |
$ 21.37 |
$ 17.48 |
Total ReturnB, C, D |
5.02% |
29.68% |
21.42% |
(2.34)% |
22.29% |
58.48% |
Ratios to Average Net Assets F, K |
|
|
|
|
|
|
Expenses before reductions |
1.78%A |
1.83% |
1.97% |
1.93% |
1.83% |
1.78% |
Expenses net of fee waivers, if any |
1.78%A |
1.83% |
1.97% |
1.93% |
1.83% |
1.78% |
Expenses net of all reductions |
1.77%A |
1.82% |
1.97% |
1.93% |
1.82% |
1.77% |
Net investment income (loss) |
(.14)%A |
(.07)% |
(.76)%H |
(.25)%I |
(.64)%J |
(.36)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 9 |
$ 11 |
$ 13 |
$ 16 |
$ 30 |
$ 40 |
Portfolio turnover rateG |
5%A |
22% |
23% |
34% |
99% |
161% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.04)%. IInvestment income per share reflects a large, non-recurring dividend which amounted to $.16 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.87)%. JInvestment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.80)%. KExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 32.52 |
$ 25.06 |
$ 20.64 |
$ 21.13 |
$ 17.29 |
$ 10.91 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E |
(.01) |
(.01) |
(.17) H |
(.05) I |
(.12) J |
(.05) |
Net realized and unrealized gain (loss) |
1.65 |
7.47 |
4.59 |
(.44) |
3.97 |
6.43 |
Total from investment operations |
1.64 |
7.46 |
4.42 |
(.49) |
3.85 |
6.38 |
Distributions from net investment income |
(.02) |
- |
- |
- |
- |
- |
Distributions from net realized gain |
- |
- |
- |
- |
(.01) |
- |
Total distributions |
(.02) |
- |
- |
- |
(.01) |
- |
Net asset value, end of period |
$ 34.14 |
$ 32.52 |
$ 25.06 |
$ 20.64 |
$ 21.13 |
$ 17.29 |
Total ReturnB, C, D |
5.04% |
29.77% |
21.41% |
(2.32)% |
22.25% |
58.48% |
Ratios to Average Net Assets F, K |
|
|
|
|
|
|
Expenses before reductions |
1.71%A |
1.78% |
1.95% |
1.92% |
1.83% |
1.78% |
Expenses net of fee waivers, if any |
1.71%A |
1.78% |
1.95% |
1.92% |
1.83% |
1.78% |
Expenses net of all reductions |
1.71%A |
1.77% |
1.95% |
1.92% |
1.82% |
1.77% |
Net investment income (loss) |
(.07)%A |
(.02)% |
(.75)%H |
(.24)%I |
(.63)%J |
(.36)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 54 |
$ 54 |
$ 43 |
$ 40 |
$ 49 |
$ 43 |
Portfolio turnover rateG |
5%A |
22% |
23% |
34% |
99% |
161% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.02)%. IInvestment income per share reflects a large, non-recurring dividend which amounted to $.16 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.86)%. JInvestment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.80)%. KExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 40.28 |
$ 30.89 |
$ 25.37 |
$ 25.80 |
$ 20.89 |
$ 13.21 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D |
.20 |
.37 |
.09G |
.22H |
.09I |
.11 |
Net realized and unrealized gain (loss) |
2.04 |
9.20 |
5.62 |
(.54) |
4.83 |
7.73 |
Total from investment operations |
2.24 |
9.57 |
5.71 |
(.32) |
4.92 |
7.84 |
Distributions from net investment income |
(.33) |
(.18) |
(.19) |
(.10)J |
- |
(.16) |
Distributions from net realized gain |
- |
- |
- |
(.01)J |
(.01) |
- |
Total distributions |
(.33) |
(.18) |
(.19) |
(.11) |
(.01) |
(.16) |
Net asset value, end of period |
$ 42.19 |
$ 40.28 |
$ 30.89 |
$ 25.37 |
$ 25.80 |
$ 20.89 |
Total ReturnB, C |
5.62% |
31.14% |
22.69% |
(1.29)% |
23.54% |
60.05% |
Ratios to Average Net Assets E, K |
|
|
|
|
|
|
Expenses before reductions |
.67%A |
.73% |
.89% |
.88% |
.81% |
.78% |
Expenses net of fee waivers, if any |
.67%A |
.73% |
.89% |
.88% |
.81% |
.78% |
Expenses net of all reductions |
.67%A |
.72% |
.89% |
.88% |
.80% |
.77% |
Net investment income (loss) |
.97%A |
1.03% |
.31%G |
.80%H |
.39%I |
.64% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 735 |
$ 681 |
$ 396 |
$ 284 |
$ 360 |
$ 237 |
Portfolio turnover rateF |
5%A |
22% |
23% |
34% |
99% |
161% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DCalculated based on average shares outstanding during the period. EFees 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. FAmount does not include the portfolio activity of any underlying Fidelity Central Funds. GInvestment income per share reflects a large, non-recurring dividend which amounted to $.08 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .04%. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.16 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .18%. IInvestment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .22%. JThe amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. KExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 40.28 |
$ 30.89 |
$ 25.38 |
$ 25.82 |
$ 20.86 |
$ 13.23 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D |
.23 |
.43 |
.14G |
.28H |
.15I |
.16 |
Net realized and unrealized gain (loss) |
2.04 |
9.18 |
5.61 |
(.55) |
4.82 |
7.70 |
Total from investment operations |
2.27 |
9.61 |
5.75 |
(.27) |
4.97 |
7.86 |
Distributions from net investment income |
(.38) |
(.22) |
(.24) |
(.16)J |
- |
(.23) |
Distributions from net realized gain |
- |
- |
- |
(.01)J |
(.01) |
- |
Total distributions |
(.38) |
(.22) |
(.24) |
(.17) |
(.01) |
(.23) |
Net asset value, end of period |
$ 42.17 |
$ 40.28 |
$ 30.89 |
$ 25.38 |
$ 25.82 |
$ 20.86 |
Total ReturnB, C |
5.71% |
31.34% |
22.93% |
(1.11)% |
23.81% |
60.52% |
Ratios to Average Net Assets E, K |
|
|
|
|
|
|
Expenses before reductions |
.52%A |
.58% |
.71% |
.68% |
.58% |
.51% |
Expenses net of fee waivers, if any |
.52%A |
.58% |
.71% |
.68% |
.58% |
.51% |
Expenses net of all reductions |
.51%A |
.57% |
.71% |
.68% |
.56% |
.49% |
Net investment income (loss) |
1.12%A |
1.18% |
.50%G |
1.00%H |
.62%I |
.91% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 111 |
$ 119 |
$ 70 |
$ 47 |
$ 47 |
$ 27 |
Portfolio turnover rateF |
5%A |
22% |
23% |
34% |
99% |
161% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DCalculated based on average shares outstanding during the period. EFees 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. FAmount does not include the portfolio activity of any underlying Fidelity Central Funds. GInvestment income per share reflects a large, non-recurring dividend which amounted to $.08 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .22%. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.16 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .38%. IInvestment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .46%. JThe amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. KExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 38.46 |
$ 29.51 |
$ 24.26 |
$ 24.69 |
$ 19.97 |
$ 12.67 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D |
.18 |
.34 |
.08G |
.22H |
.10I |
.11 |
Net realized and unrealized gain (loss) |
1.95 |
8.79 |
5.37 |
(.53) |
4.63 |
7.38 |
Total from investment operations |
2.13 |
9.13 |
5.45 |
(.31) |
4.73 |
7.49 |
Distributions from net investment income |
(.32) |
(.18) |
(.20) |
(.11)J |
- |
(.19) |
Distributions from net realized gain |
- |
- |
- |
(.01)J |
(.01) |
- |
Total distributions |
(.32) |
(.18) |
(.20) |
(.12) |
(.01) |
(.19) |
Net asset value, end of period |
$ 40.27 |
$ 38.46 |
$ 29.51 |
$ 24.26 |
$ 24.69 |
$ 19.97 |
Total ReturnB, C |
5.60% |
31.11% |
22.67% |
(1.30)% |
23.67% |
60.08% |
Ratios to Average Net Assets E, K |
|
|
|
|
|
|
Expenses before reductions |
.70%A |
.76% |
.90% |
.86% |
.74% |
.70% |
Expenses net of fee waivers, if any |
.70%A |
.76% |
.90% |
.86% |
.74% |
.70% |
Expenses net of all reductions |
.70%A |
.75% |
.90% |
.86% |
.73% |
.69% |
Net investment income (loss) |
.94%A |
1.00% |
.31%G |
.82%H |
.46%I |
.71% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 77 |
$ 74 |
$ 66 |
$ 52 |
$ 53 |
$ 48 |
Portfolio turnover rateF |
5%A |
22% |
23% |
34% |
99% |
161% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DCalculated based on average shares outstanding during the period. EFees 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. FAmount does not include the portfolio activity of any underlying Fidelity Central Funds. GInvestment income per share reflects a large, non-recurring dividend which amounted to $.08 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .03%. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.16 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .20%. IInvestment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .29%. JThe amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. KExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
For the period ended May 31, 2014 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor® Value Strategies Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, Fidelity Value Strategies Fund, Fidelity Value Strategies Fund Class K and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds 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:
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of May 31, 2014, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, partnerships, market discount, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation |
$ 530,276 |
Gross unrealized depreciation |
(18,870) |
Net unrealized appreciation (depreciation) on securities and other investments |
$ 511,406 |
|
|
Tax cost |
$ 1,099,153 |
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.
Fiscal year of expiration |
|
2016 |
$ (70,991) |
2017 |
(187,132) |
Total capital loss carryforward |
$ (258,123) |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $35,414 and $114,362, respectively.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ±.20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Fidelity Value Strategies as compared to its benchmark index, the Russell Midcap® Value Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .42% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
|
Distribution |
Service |
Total Fees |
Retained |
Class A |
-% |
.25% |
$ 301 |
$ 5 |
Class T |
.25% |
.25% |
826 |
11 |
Class B |
.75% |
.25% |
52 |
39 |
Class C |
.75% |
.25% |
266 |
17 |
|
|
|
$ 1,445 |
$ 72 |
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
|
Retained |
Class A |
$ 11 |
Class T |
4 |
Class B* |
1 |
Class C* |
1 |
|
$ 17 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund, except for Class K. FIIOC receives an asset-based fee of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each applicable class were as follows:
|
Amount |
% of |
Class A |
$ 282 |
.23 |
Class T |
310 |
.19 |
Class B |
16 |
.30 |
Class C |
63 |
.24 |
Fidelity Value Strategies Fund |
703 |
.20 |
Fidelity Value Strategies Fund Class K |
26 |
.04 |
Institutional Class |
84 |
.23 |
|
$ 1,484 |
|
* Annualized
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
5. Fees and Other Transactions with Affiliates - continued
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $2 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $1 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. At period end, there were no security loans outstanding with FCM. Security lending income represents the income
Semiannual Report
7. Security Lending - continued
earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $128, including ninety-three dollars from securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $20 for the period.
In addition, the investment adviser reimbursed a portion of the Fund's operating expenses during the period in the amount of $2.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
|
Six months ended |
Year ended |
From net investment income |
|
|
Class A |
$ 1,567 |
$ 555 |
Class T |
1,415 |
167 |
Class C |
32 |
- |
Fidelity Value Strategies Fund |
5,578 |
2,356 |
Fidelity Value Strategies Fund Class K |
1,131 |
520 |
Institutional Class |
608 |
395 |
Total |
$ 10,331 |
$ 3,993 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
10. Share Transactions.
Transactions for each class of shares were as follows:
|
Shares |
Dollars |
||
|
Six months ended May 31, |
Year ended |
Six months ended May 31, |
Year ended |
Class A |
|
|
|
|
Shares sold |
286 |
725 |
$ 10,432 |
$ 22,684 |
Reinvestment of distributions |
41 |
18 |
1,447 |
513 |
Shares redeemed |
(621) |
(1,340) |
(22,607) |
(42,216) |
Net increase (decrease) |
(294) |
(597) |
$ (10,728) |
$ (19,019) |
Class T |
|
|
|
|
Shares sold |
256 |
862 |
$ 9,680 |
$ 28,085 |
Reinvestment of distributions |
35 |
5 |
1,293 |
152 |
Shares redeemed |
(829) |
(1,767) |
(31,364) |
(57,990) |
Net increase (decrease) |
(538) |
(900) |
$ (20,391) |
$ (29,753) |
Class B |
|
|
|
|
Shares sold |
1 |
4 |
$ 15 |
$ 123 |
Shares redeemed |
(82) |
(161) |
(2,729) |
(4,616) |
Net increase (decrease) |
(81) |
(157) |
$ (2,714) |
$ (4,493) |
Class C |
|
|
|
|
Shares sold |
65 |
317 |
$ 2,159 |
$ 8,968 |
Reinvestment of distributions |
1 |
- |
29 |
- |
Shares redeemed |
(149) |
(382) |
(4,927) |
(11,135) |
Net increase (decrease) |
(83) |
(65) |
$ (2,739) |
$ (2,167) |
Fidelity Value Strategies Fund |
|
|
|
|
Shares sold |
5,271 |
11,897 |
$ 214,648 |
$ 405,389 |
Reinvestment of distributions |
127 |
73 |
4,998 |
2,266 |
Shares redeemed |
(4,898) |
(7,881) |
(199,283) |
(279,142) |
Net increase (decrease) |
500 |
4,089 |
$ 20,363 |
$ 128,513 |
Fidelity Value Strategies Fund Class K |
|
|
|
|
Shares sold |
419 |
3,420 |
$ 17,074 |
$ 116,082 |
Reinvestment of distributions |
29 |
17 |
1,131 |
520 |
Shares redeemed |
(771) |
(2,727) |
(31,507) |
(102,509) |
Net increase (decrease) |
(323) |
710 |
$ (13,302) |
$ 14,093 |
Institutional Class |
|
|
|
|
Shares sold |
208 |
776 |
$ 8,101 |
$ 26,302 |
Reinvestment of distributions |
14 |
11 |
523 |
327 |
Shares redeemed |
(232) |
(1,082) |
(8,986) |
(35,829) |
Net increase (decrease) |
(10) |
(295) |
$ (362) |
$ (9,200) |
Semiannual Report
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research (U.K.) Inc.
Fidelity Management & Research
(Japan) Inc.
Fidelity Management & Research
(Hong Kong) Limited
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Brown Brothers Harriman & Co.
Boston, MA
(Fidelity Investment logo)(registered trademark)
ISO-USAN-0714 1.786806.111
Fidelity® Value Strategies Fund
Class K
(A Class of Fidelity Advisor® Value (Fidelity Investment logo)(registered trademark)
Strategies Fund)
Semiannual Report
May 31, 2014
(Fidelity Cover Art)
Shareholder Expense Example |
An example of shareholder expenses. |
|
Investment Changes |
A summary of major shifts in the fund's investments over the past six months. |
|
Investments |
A complete list of the fund's investments with their market values. |
|
Financial Statements |
Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
|
Notes |
Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-835-5092 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (December 1, 2013 to May 31, 2014).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
|
Annualized |
Beginning |
Ending |
Expenses Paid |
Class A |
.96% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,054.40 |
$ 4.92 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,020.14 |
$ 4.84 |
Class T |
1.16% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,053.30 |
$ 5.94 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,019.15 |
$ 5.84 |
Class B |
1.78% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,050.20 |
$ 9.10 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,016.06 |
$ 8.95 |
Class C |
1.71% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,050.40 |
$ 8.74 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,016.40 |
$ 8.60 |
Fidelity Value Strategies Fund |
.67% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,056.20 |
$ 3.43 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,021.59 |
$ 3.38 |
Fidelity Value Strategies Fund Class K |
.52% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,057.10 |
$ 2.67 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,022.34 |
$ 2.62 |
Institutional Class |
.70% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,056.00 |
$ 3.59 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,021.44 |
$ 3.53 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
Semiannual Report
Top Ten Stocks as of May 31, 2014 |
||
|
% of fund's |
% of fund's net assets |
LyondellBasell Industries NV Class A |
6.7 |
5.8 |
Sanofi SA sponsored ADR |
3.7 |
3.8 |
Apple, Inc. |
3.3 |
3.0 |
Bank of America Corp. |
3.3 |
3.5 |
Delphi Automotive PLC |
3.2 |
2.8 |
Symantec Corp. |
3.0 |
3.1 |
General Motors Co. |
2.9 |
3.7 |
U.S. Bancorp |
2.3 |
2.2 |
Alliant Techsystems, Inc. |
2.3 |
2.2 |
AFLAC, Inc. |
2.2 |
2.4 |
|
32.9 |
|
Top Five Market Sectors as of May 31, 2014 |
||
|
% of fund's |
% of fund's net assets |
Consumer Discretionary |
19.0 |
23.9 |
Health Care |
15.0 |
14.3 |
Financials |
12.4 |
11.4 |
Information Technology |
12.0 |
12.4 |
Materials |
9.4 |
8.8 |
Asset Allocation (% of fund's net assets) |
|||||||
As of May 31, 2014 * |
As of November 30, 2013 ** |
||||||
Stocks 91.2% |
|
Stocks 93.9% |
|
||||
Bonds 0.3% |
|
Bonds 0.4% |
|
||||
Short-Term |
|
Short-Term |
|
||||
* Foreign investments |
18.4% |
|
** Foreign investments |
17.0% |
|
Semiannual Report
Showing Percentage of Net Assets
Common Stocks - 91.2% |
|||
Shares |
Value (000s) |
||
CONSUMER DISCRETIONARY - 19.0% |
|||
Auto Components - 4.4% |
|||
Delphi Automotive PLC |
719,777 |
$ 49,708 |
|
Tenneco, Inc. (a) |
164,524 |
10,488 |
|
TRW Automotive Holdings Corp. (a) |
91,400 |
7,757 |
|
|
67,953 |
||
Automobiles - 3.5% |
|||
Bayerische Motoren Werke AG (BMW) |
36,387 |
4,568 |
|
General Motors Co. |
1,284,836 |
44,430 |
|
Volkswagen AG |
18,856 |
4,967 |
|
|
53,965 |
||
Diversified Consumer Services - 0.9% |
|||
Service Corp. International |
729,650 |
14,608 |
|
Hotels, Restaurants & Leisure - 1.7% |
|||
Cedar Fair LP (depositary unit) |
227,420 |
11,833 |
|
Wyndham Worldwide Corp. |
199,867 |
14,776 |
|
|
26,609 |
||
Household Durables - 3.4% |
|||
Lennar Corp. Class A (d) |
424,700 |
17,370 |
|
PulteGroup, Inc. |
744,504 |
14,562 |
|
Ryland Group, Inc. |
151,400 |
5,708 |
|
Standard Pacific Corp. (a) |
1,866,450 |
14,988 |
|
|
52,628 |
||
Leisure Products - 0.9% |
|||
Hasbro, Inc. |
266,797 |
14,327 |
|
Media - 1.0% |
|||
Omnicom Group, Inc. |
120,112 |
8,546 |
|
Regal Entertainment Group Class A (d) |
363,100 |
7,084 |
|
|
15,630 |
||
Specialty Retail - 3.2% |
|||
Asbury Automotive Group, Inc. (a) |
343,641 |
22,213 |
|
GameStop Corp. Class A (d) |
751,713 |
28,452 |
|
|
50,665 |
||
TOTAL CONSUMER DISCRETIONARY |
296,385 |
||
CONSUMER STAPLES - 5.3% |
|||
Beverages - 1.6% |
|||
Cott Corp. (d) |
3,511,564 |
24,743 |
|
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
CONSUMER STAPLES - continued |
|||
Food & Staples Retailing - 1.2% |
|||
CVS Caremark Corp. |
237,100 |
$ 18,570 |
|
Food Products - 1.8% |
|||
Bunge Ltd. |
102,214 |
7,943 |
|
Calavo Growers, Inc. |
232,028 |
7,256 |
|
SunOpta, Inc. (a) |
984,885 |
13,247 |
|
|
28,446 |
||
Household Products - 0.7% |
|||
Procter & Gamble Co. |
142,100 |
11,480 |
|
TOTAL CONSUMER STAPLES |
83,239 |
||
ENERGY - 4.9% |
|||
Energy Equipment & Services - 0.8% |
|||
Halliburton Co. |
183,600 |
11,868 |
|
Oil, Gas & Consumable Fuels - 4.1% |
|||
Denbury Resources, Inc. (d) |
1,516,780 |
25,618 |
|
EP Energy Corp. |
274,600 |
5,508 |
|
HollyFrontier Corp. |
153,000 |
7,535 |
|
The Williams Companies, Inc. |
154,500 |
7,255 |
|
Valero Energy Corp. |
327,300 |
18,345 |
|
|
64,261 |
||
TOTAL ENERGY |
76,129 |
||
FINANCIALS - 12.4% |
|||
Banks - 8.5% |
|||
Bank of America Corp. |
3,355,213 |
50,798 |
|
CIT Group, Inc. |
157,349 |
6,999 |
|
Citigroup, Inc. |
227,323 |
10,814 |
|
Regions Financial Corp. |
778,163 |
7,929 |
|
U.S. Bancorp |
862,484 |
36,388 |
|
Wells Fargo & Co. |
377,370 |
19,163 |
|
|
132,091 |
||
Capital Markets - 0.5% |
|||
The Blackstone Group LP |
267,400 |
8,311 |
|
Insurance - 3.4% |
|||
AFLAC, Inc. |
549,986 |
33,676 |
|
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
FINANCIALS - continued |
|||
Insurance - continued |
|||
American International Group, Inc. |
201,698 |
$ 10,906 |
|
Unum Group |
235,260 |
7,978 |
|
|
52,560 |
||
TOTAL FINANCIALS |
192,962 |
||
HEALTH CARE - 15.0% |
|||
Health Care Equipment & Supplies - 5.1% |
|||
Alere, Inc. (a) |
172,283 |
6,163 |
|
Boston Scientific Corp. (a) |
1,785,400 |
22,907 |
|
C.R. Bard, Inc. |
75,400 |
11,152 |
|
St. Jude Medical, Inc. |
463,300 |
30,068 |
|
Zimmer Holdings, Inc. |
87,600 |
9,141 |
|
|
79,431 |
||
Health Care Providers & Services - 2.3% |
|||
DaVita HealthCare Partners, Inc. (a) |
158,496 |
11,188 |
|
Universal Health Services, Inc. Class B |
278,914 |
24,982 |
|
|
36,170 |
||
Life Sciences Tools & Services - 1.2% |
|||
Agilent Technologies, Inc. |
180,700 |
10,289 |
|
PerkinElmer, Inc. |
207,500 |
9,331 |
|
|
19,620 |
||
Pharmaceuticals - 6.4% |
|||
Johnson & Johnson |
187,800 |
19,054 |
|
Merck & Co., Inc. |
390,800 |
22,612 |
|
Sanofi SA sponsored ADR |
1,088,444 |
58,014 |
|
|
99,680 |
||
TOTAL HEALTH CARE |
234,901 |
||
INDUSTRIALS - 7.3% |
|||
Aerospace & Defense - 5.3% |
|||
Alliant Techsystems, Inc. |
278,850 |
35,216 |
|
Esterline Technologies Corp. (a) |
180,022 |
20,063 |
|
Honeywell International, Inc. |
139,500 |
12,994 |
|
Textron, Inc. |
223,717 |
8,774 |
|
United Technologies Corp. |
47,400 |
5,509 |
|
|
82,556 |
||
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
INDUSTRIALS - continued |
|||
Building Products - 0.7% |
|||
Allegion PLC |
69,366 |
$ 3,634 |
|
Armstrong World Industries, Inc. (a) |
143,230 |
7,601 |
|
|
11,235 |
||
Machinery - 1.0% |
|||
Blount International, Inc. (a) |
292,004 |
3,557 |
|
Ingersoll-Rand PLC |
208,100 |
12,449 |
|
|
16,006 |
||
Trading Companies & Distributors - 0.3% |
|||
Aircastle Ltd. |
290,150 |
4,869 |
|
TOTAL INDUSTRIALS |
114,666 |
||
INFORMATION TECHNOLOGY - 12.0% |
|||
Communications Equipment - 0.3% |
|||
Cisco Systems, Inc. |
204,600 |
5,037 |
|
IT Services - 0.6% |
|||
Fidelity National Information Services, Inc. |
165,730 |
8,974 |
|
Semiconductors & Semiconductor Equipment - 3.7% |
|||
MagnaChip Semiconductor Corp. (a) |
978,700 |
12,155 |
|
Micron Technology, Inc. (a) |
911,183 |
26,051 |
|
ON Semiconductor Corp. (a) |
855,870 |
7,438 |
|
Spansion, Inc. Class A (a) |
613,543 |
11,688 |
|
|
57,332 |
||
Software - 4.1% |
|||
Microsoft Corp. |
429,324 |
17,577 |
|
Symantec Corp. |
2,116,671 |
46,546 |
|
|
64,123 |
||
Technology Hardware, Storage & Peripherals - 3.3% |
|||
Apple, Inc. |
80,880 |
51,197 |
|
TOTAL INFORMATION TECHNOLOGY |
186,663 |
||
MATERIALS - 9.4% |
|||
Chemicals - 9.0% |
|||
Ashland, Inc. |
83,100 |
8,559 |
|
Axiall Corp. |
81,626 |
3,772 |
|
LyondellBasell Industries NV Class A |
1,055,392 |
105,085 |
|
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
MATERIALS - continued |
|||
Chemicals - continued |
|||
PPG Industries, Inc. |
77,296 |
$ 15,584 |
|
W.R. Grace & Co. (a) |
83,628 |
7,700 |
|
|
140,700 |
||
Metals & Mining - 0.4% |
|||
Carpenter Technology Corp. |
86,796 |
5,424 |
|
TOTAL MATERIALS |
146,124 |
||
TELECOMMUNICATION SERVICES - 1.6% |
|||
Diversified Telecommunication Services - 1.6% |
|||
Level 3 Communications, Inc. (a) |
558,139 |
24,363 |
|
UTILITIES - 4.3% |
|||
Electric Utilities - 0.4% |
|||
NextEra Energy, Inc. |
67,700 |
6,591 |
|
Independent Power Producers & Energy Traders - 2.8% |
|||
Calpine Corp. (a) |
822,963 |
19,191 |
|
The AES Corp. |
1,687,800 |
23,798 |
|
|
42,989 |
||
Multi-Utilities - 1.1% |
|||
Sempra Energy |
179,639 |
18,027 |
|
TOTAL UTILITIES |
67,607 |
||
TOTAL COMMON STOCKS (Cost $907,858) |
|
Nonconvertible Bonds - 0.3% |
||||
|
Principal Amount (000s) |
|
||
ENERGY - 0.3% |
||||
Oil, Gas & Consumable Fuels - 0.3% |
||||
Alpha Natural Resources, Inc. 6.25% 6/1/21 (Cost $6,457) |
|
$ 7,670 |
|
|
Money Market Funds - 11.7% |
|||
Shares |
Value (000s) |
||
Fidelity Cash Central Fund, 0.10% (b) |
134,670,042 |
$ 134,670 |
|
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) |
47,596,174 |
47,596 |
|
TOTAL MONEY MARKET FUNDS (Cost $182,266) |
|
||
TOTAL INVESTMENT PORTFOLIO - 103.2% (Cost $1,096,581) |
1,610,559 |
||
NET OTHER ASSETS (LIABILITIES) - (3.2)% |
(50,575) |
||
NET ASSETS - 100% |
$ 1,559,984 |
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) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan 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 |
$ 61 |
Fidelity Securities Lending Cash Central Fund |
128 |
Total |
$ 189 |
Other Affiliated Issuers |
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate |
Value, beginning of period |
Purchases |
Sales Proceeds |
Dividend Income |
Value, |
The Bon-Ton Stores, Inc. |
$ 34,067 |
$ - |
$ 18,895 |
$ 96 |
$ - |
Other Information |
The following is a summary of the inputs used, as of May 31, 2014, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
||||
Description |
Total |
Level 1 |
Level 2 |
Level 3 |
Investments in Securities: |
||||
Equities: |
||||
Consumer Discretionary |
$ 296,385 |
$ 296,385 |
$ - |
$ - |
Consumer Staples |
83,239 |
83,239 |
- |
- |
Energy |
76,129 |
76,129 |
- |
- |
Financials |
192,962 |
192,962 |
- |
- |
Health Care |
234,901 |
234,901 |
- |
- |
Industrials |
114,666 |
114,666 |
- |
- |
Information Technology |
186,663 |
186,663 |
- |
- |
Materials |
146,124 |
146,124 |
- |
- |
Telecommunication Services |
24,363 |
24,363 |
- |
- |
Utilities |
67,607 |
67,607 |
- |
- |
Corporate Bonds |
5,254 |
- |
5,254 |
- |
Money Market Funds |
182,266 |
182,266 |
- |
- |
Total Investments in Securities: |
$ 1,610,559 |
$ 1,605,305 |
$ 5,254 |
$ - |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited): |
United States of America |
81.6% |
Netherlands |
6.7% |
France |
3.7% |
Bailiwick of Jersey |
3.2% |
Canada |
2.4% |
Ireland |
1.0% |
Others (Individually Less Than 1%) |
1.4% |
|
100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Amounts in thousands (except per-share amounts) |
May 31, 2014 (Unaudited) |
|
|
|
|
Assets |
|
|
Investment in securities, at value (including securities loaned of $46,094) - See accompanying schedule: Unaffiliated issuers (cost $914,315) |
$ 1,428,293 |
|
Fidelity Central Funds (cost $182,266) |
182,266 |
|
Total Investments (cost $1,096,581) |
|
$ 1,610,559 |
Receivable for fund shares sold |
|
1,284 |
Dividends receivable |
|
3,140 |
Interest receivable |
|
292 |
Distributions receivable from Fidelity Central Funds |
|
95 |
Prepaid expenses |
|
1 |
Other receivables |
|
9 |
Total assets |
|
1,615,380 |
|
|
|
Liabilities |
|
|
Payable for investments purchased |
$ 4,842 |
|
Payable for fund shares redeemed |
1,891 |
|
Accrued management fee |
505 |
|
Distribution and service plan fees payable |
239 |
|
Other affiliated payables |
292 |
|
Other payables and accrued expenses |
31 |
|
Collateral on securities loaned, at value |
47,596 |
|
Total liabilities |
|
55,396 |
|
|
|
Net Assets |
|
$ 1,559,984 |
Net Assets consist of: |
|
|
Paid in capital |
|
$ 1,286,257 |
Undistributed net investment income |
|
5,603 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions |
|
(245,855) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies |
|
513,979 |
Net Assets |
|
$ 1,559,984 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Amounts in thousands (except per-share amounts) |
May 31, 2014 (Unaudited) |
|
|
|
|
Calculation of Maximum Offering Price Class A: |
|
$ 37.73 |
|
|
|
Maximum offering price per share (100/94.25 of $37.73) |
|
$ 40.03 |
Class T: |
|
$ 39.10 |
|
|
|
Maximum offering price per share (100/96.50 of $39.10) |
|
$ 40.52 |
Class B: |
|
$ 34.51 |
|
|
|
Class C: |
|
$ 34.14 |
|
|
|
Fidelity Value Strategies Fund: |
|
$ 42.19 |
|
|
|
Fidelity Value Strategies Fund Class K: |
|
$ 42.17 |
|
|
|
Institutional Class: |
|
$ 40.27 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Amounts in thousands |
Six months ended May 31, 2014 |
|
|
|
|
Investment Income |
|
|
Dividends (including $96 earned from other affiliated issuers) |
|
$ 11,944 |
Interest |
|
300 |
Income from Fidelity Central Funds |
|
189 |
Total income |
|
12,433 |
|
|
|
Expenses |
|
|
Management fee |
$ 4,177 |
|
Performance adjustment |
(1,000) |
|
Transfer agent fees |
1,484 |
|
Distribution and service plan fees |
1,445 |
|
Accounting and security lending fees |
242 |
|
Custodian fees and expenses |
8 |
|
Independent trustees' compensation |
3 |
|
Registration fees |
105 |
|
Audit |
37 |
|
Legal |
3 |
|
Miscellaneous |
6 |
|
Total expenses before reductions |
6,510 |
|
Expense reductions |
(22) |
6,488 |
Net investment income (loss) |
|
5,945 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: |
|
|
Investment securities: |
|
|
Unaffiliated issuers |
20,094 |
|
Other affiliated issuers |
(6,098) |
|
Foreign currency transactions |
(1) |
|
Total net realized gain (loss) |
|
13,995 |
Change in net unrealized appreciation (depreciation) on: Investment securities |
62,169 |
|
Assets and liabilities in foreign currencies |
1 |
|
Total change in net unrealized appreciation (depreciation) |
|
62,170 |
Net gain (loss) |
|
76,165 |
Net increase (decrease) in net assets resulting from operations |
|
$ 82,110 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Amounts in thousands |
Six months ended May 31, 2014
|
Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) |
$ 5,945 |
$ 11,916 |
Net realized gain (loss) |
13,995 |
66,011 |
Change in net unrealized appreciation (depreciation) |
62,170 |
293,442 |
Net increase (decrease) in net assets resulting |
82,110 |
371,369 |
Distributions to shareholders from net investment income |
(10,331) |
(3,993) |
Share transactions - net increase (decrease) |
(29,873) |
77,974 |
Total increase (decrease) in net assets |
41,906 |
445,350 |
|
|
|
Net Assets |
|
|
Beginning of period |
1,518,078 |
1,072,728 |
End of period (including undistributed net investment income of $5,603 and undistributed net investment income of $9,989, respectively) |
$ 1,559,984 |
$ 1,518,078 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 36.02 |
$ 27.62 |
$ 22.71 |
$ 23.11 |
$ 18.77 |
$ 11.87 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E |
.12 |
.23 |
-H |
.13I |
.03J |
.06 |
Net realized and unrealized gain (loss) |
1.82 |
8.25 |
5.03 |
(.49) |
4.32 |
6.96 |
Total from investment operations |
1.94 |
8.48 |
5.03 |
(.36) |
4.35 |
7.02 |
Distributions from net investment income |
(.23) |
(.08) |
(.12) |
(.03)K |
- |
(.12) |
Distributions from net realized gain |
- |
- |
- |
(.01)K |
(.01) |
- |
Total distributions |
(.23) |
(.08) |
(.12) |
(.04) |
(.01) |
(.12) |
Net asset value, end of period |
$ 37.73 |
$ 36.02 |
$ 27.62 |
$ 22.71 |
$ 23.11 |
$ 18.77 |
Total ReturnB, C, D |
5.44% |
30.77% |
22.29% |
(1.57)% |
23.16% |
59.70% |
Ratios to Average Net Assets F, L |
|
|
|
|
|
|
Expenses before reductions |
.96%A |
1.04% |
1.21% |
1.18% |
1.08% |
1.03% |
Expenses net of fee waivers, if any |
.96%A |
1.04% |
1.21% |
1.18% |
1.08% |
1.03% |
Expenses net of all reductions |
.95%A |
1.03% |
1.21% |
1.17% |
1.07% |
1.02% |
Net investment income (loss) |
.69%A |
.73% |
-%H |
.51%I |
.12%J |
.39% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 243 |
$ 243 |
$ 203 |
$ 190 |
$ 221 |
$ 206 |
Portfolio turnover rateG |
5%A |
22% |
23% |
34% |
99% |
161% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.28)%. IInvestment income per share reflects a large, non-recurring dividend which amounted to $.16 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.11)%. JInvestment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.05)%. KThe amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. LExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 37.28 |
$ 28.58 |
$ 23.48 |
$ 23.90 |
$ 19.44 |
$ 12.25 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E |
.09 |
.18 |
(.05) H |
.08I |
(.01) J |
.03 |
Net realized and unrealized gain (loss) |
1.89 |
8.54 |
5.22 |
(.50) |
4.48 |
7.21 |
Total from investment operations |
1.98 |
8.72 |
5.17 |
(.42) |
4.47 |
7.24 |
Distributions from net investment income |
(.16) |
(.02) |
(.07) |
- |
- |
(.05) |
Distributions from net realized gain |
- |
- |
- |
- |
(.01) |
- |
Total distributions |
(.16) |
(.02) |
(.07) |
- |
(.01) |
(.05) |
Net asset value, end of period |
$ 39.10 |
$ 37.28 |
$ 28.58 |
$ 23.48 |
$ 23.90 |
$ 19.44 |
Total ReturnB, C, D |
5.33% |
30.52% |
22.08% |
(1.76)% |
22.98% |
59.40% |
Ratios to Average Net Assets F, K |
|
|
|
|
|
|
Expenses before reductions |
1.16%A |
1.23% |
1.38% |
1.35% |
1.26% |
1.24% |
Expenses net of fee waivers, if any |
1.16%A |
1.23% |
1.38% |
1.35% |
1.26% |
1.24% |
Expenses net of all reductions |
1.16%A |
1.22% |
1.38% |
1.35% |
1.25% |
1.22% |
Net investment income (loss) |
.48%A |
.54% |
(.17)%H |
.33%I |
(.06)%J |
.18% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 331 |
$ 335 |
$ 283 |
$ 274 |
$ 344 |
$ 339 |
Portfolio turnover rateG |
5%A |
22% |
23% |
34% |
99% |
161% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.45)%. IInvestment income per share reflects a large, non-recurring dividend which amounted to $.16 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.29)%. JInvestment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.23)%. KExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 32.86 |
$ 25.34 |
$ 20.87 |
$ 21.37 |
$ 17.48 |
$ 11.03 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E |
(.02) |
(.02) |
(.18)H |
(.06)I |
(.13) J |
(.05) |
Net realized and unrealized gain (loss) |
1.67 |
7.54 |
4.65 |
(.44) |
4.03 |
6.50 |
Total from investment operations |
1.65 |
7.52 |
4.47 |
(.50) |
3.90 |
6.45 |
Distributions from net realized gain |
- |
- |
- |
- |
(.01) |
- |
Net asset value, end of period |
$ 34.51 |
$ 32.86 |
$ 25.34 |
$ 20.87 |
$ 21.37 |
$ 17.48 |
Total ReturnB, C, D |
5.02% |
29.68% |
21.42% |
(2.34)% |
22.29% |
58.48% |
Ratios to Average Net Assets F, K |
|
|
|
|
|
|
Expenses before reductions |
1.78%A |
1.83% |
1.97% |
1.93% |
1.83% |
1.78% |
Expenses net of fee waivers, if any |
1.78%A |
1.83% |
1.97% |
1.93% |
1.83% |
1.78% |
Expenses net of all reductions |
1.77%A |
1.82% |
1.97% |
1.93% |
1.82% |
1.77% |
Net investment income (loss) |
(.14)%A |
(.07)% |
(.76)%H |
(.25)%I |
(.64)%J |
(.36)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 9 |
$ 11 |
$ 13 |
$ 16 |
$ 30 |
$ 40 |
Portfolio turnover rateG |
5%A |
22% |
23% |
34% |
99% |
161% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.04)%. IInvestment income per share reflects a large, non-recurring dividend which amounted to $.16 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.87)%. JInvestment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.80)%. KExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 32.52 |
$ 25.06 |
$ 20.64 |
$ 21.13 |
$ 17.29 |
$ 10.91 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E |
(.01) |
(.01) |
(.17) H |
(.05) I |
(.12) J |
(.05) |
Net realized and unrealized gain (loss) |
1.65 |
7.47 |
4.59 |
(.44) |
3.97 |
6.43 |
Total from investment operations |
1.64 |
7.46 |
4.42 |
(.49) |
3.85 |
6.38 |
Distributions from net investment income |
(.02) |
- |
- |
- |
- |
- |
Distributions from net realized gain |
- |
- |
- |
- |
(.01) |
- |
Total distributions |
(.02) |
- |
- |
- |
(.01) |
- |
Net asset value, end of period |
$ 34.14 |
$ 32.52 |
$ 25.06 |
$ 20.64 |
$ 21.13 |
$ 17.29 |
Total ReturnB, C, D |
5.04% |
29.77% |
21.41% |
(2.32)% |
22.25% |
58.48% |
Ratios to Average Net Assets F, K |
|
|
|
|
|
|
Expenses before reductions |
1.71%A |
1.78% |
1.95% |
1.92% |
1.83% |
1.78% |
Expenses net of fee waivers, if any |
1.71%A |
1.78% |
1.95% |
1.92% |
1.83% |
1.78% |
Expenses net of all reductions |
1.71%A |
1.77% |
1.95% |
1.92% |
1.82% |
1.77% |
Net investment income (loss) |
(.07)%A |
(.02)% |
(.75)%H |
(.24)%I |
(.63)%J |
(.36)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 54 |
$ 54 |
$ 43 |
$ 40 |
$ 49 |
$ 43 |
Portfolio turnover rateG |
5%A |
22% |
23% |
34% |
99% |
161% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.02)%. IInvestment income per share reflects a large, non-recurring dividend which amounted to $.16 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.86)%. JInvestment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.80)%. KExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 40.28 |
$ 30.89 |
$ 25.37 |
$ 25.80 |
$ 20.89 |
$ 13.21 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D |
.20 |
.37 |
.09G |
.22H |
.09I |
.11 |
Net realized and unrealized gain (loss) |
2.04 |
9.20 |
5.62 |
(.54) |
4.83 |
7.73 |
Total from investment operations |
2.24 |
9.57 |
5.71 |
(.32) |
4.92 |
7.84 |
Distributions from net investment income |
(.33) |
(.18) |
(.19) |
(.10)J |
- |
(.16) |
Distributions from net realized gain |
- |
- |
- |
(.01)J |
(.01) |
- |
Total distributions |
(.33) |
(.18) |
(.19) |
(.11) |
(.01) |
(.16) |
Net asset value, end of period |
$ 42.19 |
$ 40.28 |
$ 30.89 |
$ 25.37 |
$ 25.80 |
$ 20.89 |
Total ReturnB, C |
5.62% |
31.14% |
22.69% |
(1.29)% |
23.54% |
60.05% |
Ratios to Average Net Assets E, K |
|
|
|
|
|
|
Expenses before reductions |
.67%A |
.73% |
.89% |
.88% |
.81% |
.78% |
Expenses net of fee waivers, if any |
.67%A |
.73% |
.89% |
.88% |
.81% |
.78% |
Expenses net of all reductions |
.67%A |
.72% |
.89% |
.88% |
.80% |
.77% |
Net investment income (loss) |
.97%A |
1.03% |
.31%G |
.80%H |
.39%I |
.64% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 735 |
$ 681 |
$ 396 |
$ 284 |
$ 360 |
$ 237 |
Portfolio turnover rateF |
5%A |
22% |
23% |
34% |
99% |
161% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DCalculated based on average shares outstanding during the period. EFees 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. FAmount does not include the portfolio activity of any underlying Fidelity Central Funds. GInvestment income per share reflects a large, non-recurring dividend which amounted to $.08 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .04%. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.16 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .18%. IInvestment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .22%. JThe amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. KExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 40.28 |
$ 30.89 |
$ 25.38 |
$ 25.82 |
$ 20.86 |
$ 13.23 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D |
.23 |
.43 |
.14G |
.28H |
.15I |
.16 |
Net realized and unrealized gain (loss) |
2.04 |
9.18 |
5.61 |
(.55) |
4.82 |
7.70 |
Total from investment operations |
2.27 |
9.61 |
5.75 |
(.27) |
4.97 |
7.86 |
Distributions from net investment income |
(.38) |
(.22) |
(.24) |
(.16)J |
- |
(.23) |
Distributions from net realized gain |
- |
- |
- |
(.01)J |
(.01) |
- |
Total distributions |
(.38) |
(.22) |
(.24) |
(.17) |
(.01) |
(.23) |
Net asset value, end of period |
$ 42.17 |
$ 40.28 |
$ 30.89 |
$ 25.38 |
$ 25.82 |
$ 20.86 |
Total ReturnB, C |
5.71% |
31.34% |
22.93% |
(1.11)% |
23.81% |
60.52% |
Ratios to Average Net Assets E, K |
|
|
|
|
|
|
Expenses before reductions |
.52%A |
.58% |
.71% |
.68% |
.58% |
.51% |
Expenses net of fee waivers, if any |
.52%A |
.58% |
.71% |
.68% |
.58% |
.51% |
Expenses net of all reductions |
.51%A |
.57% |
.71% |
.68% |
.56% |
.49% |
Net investment income (loss) |
1.12%A |
1.18% |
.50%G |
1.00%H |
.62%I |
.91% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 111 |
$ 119 |
$ 70 |
$ 47 |
$ 47 |
$ 27 |
Portfolio turnover rateF |
5%A |
22% |
23% |
34% |
99% |
161% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DCalculated based on average shares outstanding during the period. EFees 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. FAmount does not include the portfolio activity of any underlying Fidelity Central Funds. GInvestment income per share reflects a large, non-recurring dividend which amounted to $.08 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .22%. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.16 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .38%. IInvestment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .46%. JThe amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. KExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 38.46 |
$ 29.51 |
$ 24.26 |
$ 24.69 |
$ 19.97 |
$ 12.67 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D |
.18 |
.34 |
.08G |
.22H |
.10I |
.11 |
Net realized and unrealized gain (loss) |
1.95 |
8.79 |
5.37 |
(.53) |
4.63 |
7.38 |
Total from investment operations |
2.13 |
9.13 |
5.45 |
(.31) |
4.73 |
7.49 |
Distributions from net investment income |
(.32) |
(.18) |
(.20) |
(.11)J |
- |
(.19) |
Distributions from net realized gain |
- |
- |
- |
(.01)J |
(.01) |
- |
Total distributions |
(.32) |
(.18) |
(.20) |
(.12) |
(.01) |
(.19) |
Net asset value, end of period |
$ 40.27 |
$ 38.46 |
$ 29.51 |
$ 24.26 |
$ 24.69 |
$ 19.97 |
Total ReturnB, C |
5.60% |
31.11% |
22.67% |
(1.30)% |
23.67% |
60.08% |
Ratios to Average Net Assets E, K |
|
|
|
|
|
|
Expenses before reductions |
.70%A |
.76% |
.90% |
.86% |
.74% |
.70% |
Expenses net of fee waivers, if any |
.70%A |
.76% |
.90% |
.86% |
.74% |
.70% |
Expenses net of all reductions |
.70%A |
.75% |
.90% |
.86% |
.73% |
.69% |
Net investment income (loss) |
.94%A |
1.00% |
.31%G |
.82%H |
.46%I |
.71% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 77 |
$ 74 |
$ 66 |
$ 52 |
$ 53 |
$ 48 |
Portfolio turnover rateF |
5%A |
22% |
23% |
34% |
99% |
161% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DCalculated based on average shares outstanding during the period. EFees 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. FAmount does not include the portfolio activity of any underlying Fidelity Central Funds. GInvestment income per share reflects a large, non-recurring dividend which amounted to $.08 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .03%. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.16 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .20%. IInvestment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .29%. JThe amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. KExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
For the period ended May 31, 2014 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor® Value Strategies Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, Fidelity Value Strategies Fund, Fidelity Value Strategies Fund Class K and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds 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:
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of May 31, 2014, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, partnerships, market discount, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation |
$ 530,276 |
Gross unrealized depreciation |
(18,870) |
Net unrealized appreciation (depreciation) on securities and other investments |
$ 511,406 |
|
|
Tax cost |
$ 1,099,153 |
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.
Fiscal year of expiration |
|
2016 |
$ (70,991) |
2017 |
(187,132) |
Total capital loss carryforward |
$ (258,123) |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $35,414 and $114,362, respectively.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ±.20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Fidelity Value Strategies as compared to its benchmark index, the Russell Midcap® Value Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .42% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
|
Distribution |
Service |
Total Fees |
Retained |
Class A |
-% |
.25% |
$ 301 |
$ 5 |
Class T |
.25% |
.25% |
826 |
11 |
Class B |
.75% |
.25% |
52 |
39 |
Class C |
.75% |
.25% |
266 |
17 |
|
|
|
$ 1,445 |
$ 72 |
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
|
Retained |
Class A |
$ 11 |
Class T |
4 |
Class B* |
1 |
Class C* |
1 |
|
$ 17 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund, except for Class K. FIIOC receives an asset-based fee of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each applicable class were as follows:
|
Amount |
% of |
Class A |
$ 282 |
.23 |
Class T |
310 |
.19 |
Class B |
16 |
.30 |
Class C |
63 |
.24 |
Fidelity Value Strategies Fund |
703 |
.20 |
Fidelity Value Strategies Fund Class K |
26 |
.04 |
Institutional Class |
84 |
.23 |
|
$ 1,484 |
|
* Annualized
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
5. Fees and Other Transactions with Affiliates - continued
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $2 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $1 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. At period end, there were no security loans outstanding with FCM. Security lending income represents the income
Semiannual Report
7. Security Lending - continued
earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $128, including ninety-three dollars from securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $20 for the period.
In addition, the investment adviser reimbursed a portion of the Fund's operating expenses during the period in the amount of $2.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
|
Six months ended |
Year ended |
From net investment income |
|
|
Class A |
$ 1,567 |
$ 555 |
Class T |
1,415 |
167 |
Class C |
32 |
- |
Fidelity Value Strategies Fund |
5,578 |
2,356 |
Fidelity Value Strategies Fund Class K |
1,131 |
520 |
Institutional Class |
608 |
395 |
Total |
$ 10,331 |
$ 3,993 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
10. Share Transactions.
Transactions for each class of shares were as follows:
|
Shares |
Dollars |
||
|
Six months ended May 31, |
Year ended |
Six months ended May 31, |
Year ended |
Class A |
|
|
|
|
Shares sold |
286 |
725 |
$ 10,432 |
$ 22,684 |
Reinvestment of distributions |
41 |
18 |
1,447 |
513 |
Shares redeemed |
(621) |
(1,340) |
(22,607) |
(42,216) |
Net increase (decrease) |
(294) |
(597) |
$ (10,728) |
$ (19,019) |
Class T |
|
|
|
|
Shares sold |
256 |
862 |
$ 9,680 |
$ 28,085 |
Reinvestment of distributions |
35 |
5 |
1,293 |
152 |
Shares redeemed |
(829) |
(1,767) |
(31,364) |
(57,990) |
Net increase (decrease) |
(538) |
(900) |
$ (20,391) |
$ (29,753) |
Class B |
|
|
|
|
Shares sold |
1 |
4 |
$ 15 |
$ 123 |
Shares redeemed |
(82) |
(161) |
(2,729) |
(4,616) |
Net increase (decrease) |
(81) |
(157) |
$ (2,714) |
$ (4,493) |
Class C |
|
|
|
|
Shares sold |
65 |
317 |
$ 2,159 |
$ 8,968 |
Reinvestment of distributions |
1 |
- |
29 |
- |
Shares redeemed |
(149) |
(382) |
(4,927) |
(11,135) |
Net increase (decrease) |
(83) |
(65) |
$ (2,739) |
$ (2,167) |
Fidelity Value Strategies Fund |
|
|
|
|
Shares sold |
5,271 |
11,897 |
$ 214,648 |
$ 405,389 |
Reinvestment of distributions |
127 |
73 |
4,998 |
2,266 |
Shares redeemed |
(4,898) |
(7,881) |
(199,283) |
(279,142) |
Net increase (decrease) |
500 |
4,089 |
$ 20,363 |
$ 128,513 |
Fidelity Value Strategies Fund Class K |
|
|
|
|
Shares sold |
419 |
3,420 |
$ 17,074 |
$ 116,082 |
Reinvestment of distributions |
29 |
17 |
1,131 |
520 |
Shares redeemed |
(771) |
(2,727) |
(31,507) |
(102,509) |
Net increase (decrease) |
(323) |
710 |
$ (13,302) |
$ 14,093 |
Institutional Class |
|
|
|
|
Shares sold |
208 |
776 |
$ 8,101 |
$ 26,302 |
Reinvestment of distributions |
14 |
11 |
523 |
327 |
Shares redeemed |
(232) |
(1,082) |
(8,986) |
(35,829) |
Net increase (decrease) |
(10) |
(295) |
$ (362) |
$ (9,200) |
Semiannual Report
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Brown Brothers Harriman & Co.
Boston, MA
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St., Boston, MA 02210
www.fidelity.com
SOI-K-USAN-0714 1.863338.105
(Fidelity Investment logo)(registered trademark)
Fidelity® Value Strategies Fund
(A Class of Fidelity Advisor® Value
Strategies Fund)
Semiannual Report
May 31, 2014
(Fidelity Cover Art)
Shareholder Expense Example |
An example of shareholder expenses. |
|
Investment Changes |
A summary of major shifts in the fund's investments over the past six months. |
|
Investments |
A complete list of the fund's investments with their market values. |
|
Financial Statements |
Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
|
Notes |
Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (December 1, 2013 to May 31, 2014).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
|
Annualized |
Beginning |
Ending |
Expenses Paid |
Class A |
.96% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,054.40 |
$ 4.92 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,020.14 |
$ 4.84 |
Class T |
1.16% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,053.30 |
$ 5.94 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,019.15 |
$ 5.84 |
Class B |
1.78% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,050.20 |
$ 9.10 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,016.06 |
$ 8.95 |
Class C |
1.71% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,050.40 |
$ 8.74 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,016.40 |
$ 8.60 |
Fidelity Value Strategies Fund |
.67% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,056.20 |
$ 3.43 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,021.59 |
$ 3.38 |
Fidelity Value Strategies Fund Class K |
.52% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,057.10 |
$ 2.67 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,022.34 |
$ 2.62 |
Institutional Class |
.70% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,056.00 |
$ 3.59 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,021.44 |
$ 3.53 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
Semiannual Report
Top Ten Stocks as of May 31, 2014 |
||
|
% of fund's |
% of fund's net assets |
LyondellBasell Industries NV Class A |
6.7 |
5.8 |
Sanofi SA sponsored ADR |
3.7 |
3.8 |
Apple, Inc. |
3.3 |
3.0 |
Bank of America Corp. |
3.3 |
3.5 |
Delphi Automotive PLC |
3.2 |
2.8 |
Symantec Corp. |
3.0 |
3.1 |
General Motors Co. |
2.9 |
3.7 |
U.S. Bancorp |
2.3 |
2.2 |
Alliant Techsystems, Inc. |
2.3 |
2.2 |
AFLAC, Inc. |
2.2 |
2.4 |
|
32.9 |
|
Top Five Market Sectors as of May 31, 2014 |
||
|
% of fund's |
% of fund's net assets |
Consumer Discretionary |
19.0 |
23.9 |
Health Care |
15.0 |
14.3 |
Financials |
12.4 |
11.4 |
Information Technology |
12.0 |
12.4 |
Materials |
9.4 |
8.8 |
Asset Allocation (% of fund's net assets) |
|||||||
As of May 31, 2014 * |
As of November 30, 2013 ** |
||||||
Stocks 91.2% |
|
Stocks 93.9% |
|
||||
Bonds 0.3% |
|
Bonds 0.4% |
|
||||
Short-Term |
|
Short-Term |
|
||||
* Foreign investments |
18.4% |
|
** Foreign investments |
17.0% |
|
Semiannual Report
Showing Percentage of Net Assets
Common Stocks - 91.2% |
|||
Shares |
Value (000s) |
||
CONSUMER DISCRETIONARY - 19.0% |
|||
Auto Components - 4.4% |
|||
Delphi Automotive PLC |
719,777 |
$ 49,708 |
|
Tenneco, Inc. (a) |
164,524 |
10,488 |
|
TRW Automotive Holdings Corp. (a) |
91,400 |
7,757 |
|
|
67,953 |
||
Automobiles - 3.5% |
|||
Bayerische Motoren Werke AG (BMW) |
36,387 |
4,568 |
|
General Motors Co. |
1,284,836 |
44,430 |
|
Volkswagen AG |
18,856 |
4,967 |
|
|
53,965 |
||
Diversified Consumer Services - 0.9% |
|||
Service Corp. International |
729,650 |
14,608 |
|
Hotels, Restaurants & Leisure - 1.7% |
|||
Cedar Fair LP (depositary unit) |
227,420 |
11,833 |
|
Wyndham Worldwide Corp. |
199,867 |
14,776 |
|
|
26,609 |
||
Household Durables - 3.4% |
|||
Lennar Corp. Class A (d) |
424,700 |
17,370 |
|
PulteGroup, Inc. |
744,504 |
14,562 |
|
Ryland Group, Inc. |
151,400 |
5,708 |
|
Standard Pacific Corp. (a) |
1,866,450 |
14,988 |
|
|
52,628 |
||
Leisure Products - 0.9% |
|||
Hasbro, Inc. |
266,797 |
14,327 |
|
Media - 1.0% |
|||
Omnicom Group, Inc. |
120,112 |
8,546 |
|
Regal Entertainment Group Class A (d) |
363,100 |
7,084 |
|
|
15,630 |
||
Specialty Retail - 3.2% |
|||
Asbury Automotive Group, Inc. (a) |
343,641 |
22,213 |
|
GameStop Corp. Class A (d) |
751,713 |
28,452 |
|
|
50,665 |
||
TOTAL CONSUMER DISCRETIONARY |
296,385 |
||
CONSUMER STAPLES - 5.3% |
|||
Beverages - 1.6% |
|||
Cott Corp. (d) |
3,511,564 |
24,743 |
|
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
CONSUMER STAPLES - continued |
|||
Food & Staples Retailing - 1.2% |
|||
CVS Caremark Corp. |
237,100 |
$ 18,570 |
|
Food Products - 1.8% |
|||
Bunge Ltd. |
102,214 |
7,943 |
|
Calavo Growers, Inc. |
232,028 |
7,256 |
|
SunOpta, Inc. (a) |
984,885 |
13,247 |
|
|
28,446 |
||
Household Products - 0.7% |
|||
Procter & Gamble Co. |
142,100 |
11,480 |
|
TOTAL CONSUMER STAPLES |
83,239 |
||
ENERGY - 4.9% |
|||
Energy Equipment & Services - 0.8% |
|||
Halliburton Co. |
183,600 |
11,868 |
|
Oil, Gas & Consumable Fuels - 4.1% |
|||
Denbury Resources, Inc. (d) |
1,516,780 |
25,618 |
|
EP Energy Corp. |
274,600 |
5,508 |
|
HollyFrontier Corp. |
153,000 |
7,535 |
|
The Williams Companies, Inc. |
154,500 |
7,255 |
|
Valero Energy Corp. |
327,300 |
18,345 |
|
|
64,261 |
||
TOTAL ENERGY |
76,129 |
||
FINANCIALS - 12.4% |
|||
Banks - 8.5% |
|||
Bank of America Corp. |
3,355,213 |
50,798 |
|
CIT Group, Inc. |
157,349 |
6,999 |
|
Citigroup, Inc. |
227,323 |
10,814 |
|
Regions Financial Corp. |
778,163 |
7,929 |
|
U.S. Bancorp |
862,484 |
36,388 |
|
Wells Fargo & Co. |
377,370 |
19,163 |
|
|
132,091 |
||
Capital Markets - 0.5% |
|||
The Blackstone Group LP |
267,400 |
8,311 |
|
Insurance - 3.4% |
|||
AFLAC, Inc. |
549,986 |
33,676 |
|
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
FINANCIALS - continued |
|||
Insurance - continued |
|||
American International Group, Inc. |
201,698 |
$ 10,906 |
|
Unum Group |
235,260 |
7,978 |
|
|
52,560 |
||
TOTAL FINANCIALS |
192,962 |
||
HEALTH CARE - 15.0% |
|||
Health Care Equipment & Supplies - 5.1% |
|||
Alere, Inc. (a) |
172,283 |
6,163 |
|
Boston Scientific Corp. (a) |
1,785,400 |
22,907 |
|
C.R. Bard, Inc. |
75,400 |
11,152 |
|
St. Jude Medical, Inc. |
463,300 |
30,068 |
|
Zimmer Holdings, Inc. |
87,600 |
9,141 |
|
|
79,431 |
||
Health Care Providers & Services - 2.3% |
|||
DaVita HealthCare Partners, Inc. (a) |
158,496 |
11,188 |
|
Universal Health Services, Inc. Class B |
278,914 |
24,982 |
|
|
36,170 |
||
Life Sciences Tools & Services - 1.2% |
|||
Agilent Technologies, Inc. |
180,700 |
10,289 |
|
PerkinElmer, Inc. |
207,500 |
9,331 |
|
|
19,620 |
||
Pharmaceuticals - 6.4% |
|||
Johnson & Johnson |
187,800 |
19,054 |
|
Merck & Co., Inc. |
390,800 |
22,612 |
|
Sanofi SA sponsored ADR |
1,088,444 |
58,014 |
|
|
99,680 |
||
TOTAL HEALTH CARE |
234,901 |
||
INDUSTRIALS - 7.3% |
|||
Aerospace & Defense - 5.3% |
|||
Alliant Techsystems, Inc. |
278,850 |
35,216 |
|
Esterline Technologies Corp. (a) |
180,022 |
20,063 |
|
Honeywell International, Inc. |
139,500 |
12,994 |
|
Textron, Inc. |
223,717 |
8,774 |
|
United Technologies Corp. |
47,400 |
5,509 |
|
|
82,556 |
||
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
INDUSTRIALS - continued |
|||
Building Products - 0.7% |
|||
Allegion PLC |
69,366 |
$ 3,634 |
|
Armstrong World Industries, Inc. (a) |
143,230 |
7,601 |
|
|
11,235 |
||
Machinery - 1.0% |
|||
Blount International, Inc. (a) |
292,004 |
3,557 |
|
Ingersoll-Rand PLC |
208,100 |
12,449 |
|
|
16,006 |
||
Trading Companies & Distributors - 0.3% |
|||
Aircastle Ltd. |
290,150 |
4,869 |
|
TOTAL INDUSTRIALS |
114,666 |
||
INFORMATION TECHNOLOGY - 12.0% |
|||
Communications Equipment - 0.3% |
|||
Cisco Systems, Inc. |
204,600 |
5,037 |
|
IT Services - 0.6% |
|||
Fidelity National Information Services, Inc. |
165,730 |
8,974 |
|
Semiconductors & Semiconductor Equipment - 3.7% |
|||
MagnaChip Semiconductor Corp. (a) |
978,700 |
12,155 |
|
Micron Technology, Inc. (a) |
911,183 |
26,051 |
|
ON Semiconductor Corp. (a) |
855,870 |
7,438 |
|
Spansion, Inc. Class A (a) |
613,543 |
11,688 |
|
|
57,332 |
||
Software - 4.1% |
|||
Microsoft Corp. |
429,324 |
17,577 |
|
Symantec Corp. |
2,116,671 |
46,546 |
|
|
64,123 |
||
Technology Hardware, Storage & Peripherals - 3.3% |
|||
Apple, Inc. |
80,880 |
51,197 |
|
TOTAL INFORMATION TECHNOLOGY |
186,663 |
||
MATERIALS - 9.4% |
|||
Chemicals - 9.0% |
|||
Ashland, Inc. |
83,100 |
8,559 |
|
Axiall Corp. |
81,626 |
3,772 |
|
LyondellBasell Industries NV Class A |
1,055,392 |
105,085 |
|
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
MATERIALS - continued |
|||
Chemicals - continued |
|||
PPG Industries, Inc. |
77,296 |
$ 15,584 |
|
W.R. Grace & Co. (a) |
83,628 |
7,700 |
|
|
140,700 |
||
Metals & Mining - 0.4% |
|||
Carpenter Technology Corp. |
86,796 |
5,424 |
|
TOTAL MATERIALS |
146,124 |
||
TELECOMMUNICATION SERVICES - 1.6% |
|||
Diversified Telecommunication Services - 1.6% |
|||
Level 3 Communications, Inc. (a) |
558,139 |
24,363 |
|
UTILITIES - 4.3% |
|||
Electric Utilities - 0.4% |
|||
NextEra Energy, Inc. |
67,700 |
6,591 |
|
Independent Power Producers & Energy Traders - 2.8% |
|||
Calpine Corp. (a) |
822,963 |
19,191 |
|
The AES Corp. |
1,687,800 |
23,798 |
|
|
42,989 |
||
Multi-Utilities - 1.1% |
|||
Sempra Energy |
179,639 |
18,027 |
|
TOTAL UTILITIES |
67,607 |
||
TOTAL COMMON STOCKS (Cost $907,858) |
|
Nonconvertible Bonds - 0.3% |
||||
|
Principal Amount (000s) |
|
||
ENERGY - 0.3% |
||||
Oil, Gas & Consumable Fuels - 0.3% |
||||
Alpha Natural Resources, Inc. 6.25% 6/1/21 (Cost $6,457) |
|
$ 7,670 |
|
|
Money Market Funds - 11.7% |
|||
Shares |
Value (000s) |
||
Fidelity Cash Central Fund, 0.10% (b) |
134,670,042 |
$ 134,670 |
|
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) |
47,596,174 |
47,596 |
|
TOTAL MONEY MARKET FUNDS (Cost $182,266) |
|
||
TOTAL INVESTMENT PORTFOLIO - 103.2% (Cost $1,096,581) |
1,610,559 |
||
NET OTHER ASSETS (LIABILITIES) - (3.2)% |
(50,575) |
||
NET ASSETS - 100% |
$ 1,559,984 |
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) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan 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 |
$ 61 |
Fidelity Securities Lending Cash Central Fund |
128 |
Total |
$ 189 |
Other Affiliated Issuers |
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate |
Value, beginning of period |
Purchases |
Sales Proceeds |
Dividend Income |
Value, |
The Bon-Ton Stores, Inc. |
$ 34,067 |
$ - |
$ 18,895 |
$ 96 |
$ - |
Other Information |
The following is a summary of the inputs used, as of May 31, 2014, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
||||
Description |
Total |
Level 1 |
Level 2 |
Level 3 |
Investments in Securities: |
||||
Equities: |
||||
Consumer Discretionary |
$ 296,385 |
$ 296,385 |
$ - |
$ - |
Consumer Staples |
83,239 |
83,239 |
- |
- |
Energy |
76,129 |
76,129 |
- |
- |
Financials |
192,962 |
192,962 |
- |
- |
Health Care |
234,901 |
234,901 |
- |
- |
Industrials |
114,666 |
114,666 |
- |
- |
Information Technology |
186,663 |
186,663 |
- |
- |
Materials |
146,124 |
146,124 |
- |
- |
Telecommunication Services |
24,363 |
24,363 |
- |
- |
Utilities |
67,607 |
67,607 |
- |
- |
Corporate Bonds |
5,254 |
- |
5,254 |
- |
Money Market Funds |
182,266 |
182,266 |
- |
- |
Total Investments in Securities: |
$ 1,610,559 |
$ 1,605,305 |
$ 5,254 |
$ - |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited): |
United States of America |
81.6% |
Netherlands |
6.7% |
France |
3.7% |
Bailiwick of Jersey |
3.2% |
Canada |
2.4% |
Ireland |
1.0% |
Others (Individually Less Than 1%) |
1.4% |
|
100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Amounts in thousands (except per-share amounts) |
May 31, 2014 (Unaudited) |
|
|
|
|
Assets |
|
|
Investment in securities, at value (including securities loaned of $46,094) - See accompanying schedule: Unaffiliated issuers (cost $914,315) |
$ 1,428,293 |
|
Fidelity Central Funds (cost $182,266) |
182,266 |
|
Total Investments (cost $1,096,581) |
|
$ 1,610,559 |
Receivable for fund shares sold |
|
1,284 |
Dividends receivable |
|
3,140 |
Interest receivable |
|
292 |
Distributions receivable from Fidelity Central Funds |
|
95 |
Prepaid expenses |
|
1 |
Other receivables |
|
9 |
Total assets |
|
1,615,380 |
|
|
|
Liabilities |
|
|
Payable for investments purchased |
$ 4,842 |
|
Payable for fund shares redeemed |
1,891 |
|
Accrued management fee |
505 |
|
Distribution and service plan fees payable |
239 |
|
Other affiliated payables |
292 |
|
Other payables and accrued expenses |
31 |
|
Collateral on securities loaned, at value |
47,596 |
|
Total liabilities |
|
55,396 |
|
|
|
Net Assets |
|
$ 1,559,984 |
Net Assets consist of: |
|
|
Paid in capital |
|
$ 1,286,257 |
Undistributed net investment income |
|
5,603 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions |
|
(245,855) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies |
|
513,979 |
Net Assets |
|
$ 1,559,984 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Amounts in thousands (except per-share amounts) |
May 31, 2014 (Unaudited) |
|
|
|
|
Calculation of Maximum Offering Price Class A: |
|
$ 37.73 |
|
|
|
Maximum offering price per share (100/94.25 of $37.73) |
|
$ 40.03 |
Class T: |
|
$ 39.10 |
|
|
|
Maximum offering price per share (100/96.50 of $39.10) |
|
$ 40.52 |
Class B: |
|
$ 34.51 |
|
|
|
Class C: |
|
$ 34.14 |
|
|
|
Fidelity Value Strategies Fund: |
|
$ 42.19 |
|
|
|
Fidelity Value Strategies Fund Class K: |
|
$ 42.17 |
|
|
|
Institutional Class: |
|
$ 40.27 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Amounts in thousands |
Six months ended May 31, 2014 |
|
|
|
|
Investment Income |
|
|
Dividends (including $96 earned from other affiliated issuers) |
|
$ 11,944 |
Interest |
|
300 |
Income from Fidelity Central Funds |
|
189 |
Total income |
|
12,433 |
|
|
|
Expenses |
|
|
Management fee |
$ 4,177 |
|
Performance adjustment |
(1,000) |
|
Transfer agent fees |
1,484 |
|
Distribution and service plan fees |
1,445 |
|
Accounting and security lending fees |
242 |
|
Custodian fees and expenses |
8 |
|
Independent trustees' compensation |
3 |
|
Registration fees |
105 |
|
Audit |
37 |
|
Legal |
3 |
|
Miscellaneous |
6 |
|
Total expenses before reductions |
6,510 |
|
Expense reductions |
(22) |
6,488 |
Net investment income (loss) |
|
5,945 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: |
|
|
Investment securities: |
|
|
Unaffiliated issuers |
20,094 |
|
Other affiliated issuers |
(6,098) |
|
Foreign currency transactions |
(1) |
|
Total net realized gain (loss) |
|
13,995 |
Change in net unrealized appreciation (depreciation) on: Investment securities |
62,169 |
|
Assets and liabilities in foreign currencies |
1 |
|
Total change in net unrealized appreciation (depreciation) |
|
62,170 |
Net gain (loss) |
|
76,165 |
Net increase (decrease) in net assets resulting from operations |
|
$ 82,110 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Amounts in thousands |
Six months ended May 31, 2014
|
Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) |
$ 5,945 |
$ 11,916 |
Net realized gain (loss) |
13,995 |
66,011 |
Change in net unrealized appreciation (depreciation) |
62,170 |
293,442 |
Net increase (decrease) in net assets resulting |
82,110 |
371,369 |
Distributions to shareholders from net investment income |
(10,331) |
(3,993) |
Share transactions - net increase (decrease) |
(29,873) |
77,974 |
Total increase (decrease) in net assets |
41,906 |
445,350 |
|
|
|
Net Assets |
|
|
Beginning of period |
1,518,078 |
1,072,728 |
End of period (including undistributed net investment income of $5,603 and undistributed net investment income of $9,989, respectively) |
$ 1,559,984 |
$ 1,518,078 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 36.02 |
$ 27.62 |
$ 22.71 |
$ 23.11 |
$ 18.77 |
$ 11.87 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E |
.12 |
.23 |
-H |
.13I |
.03J |
.06 |
Net realized and unrealized gain (loss) |
1.82 |
8.25 |
5.03 |
(.49) |
4.32 |
6.96 |
Total from investment operations |
1.94 |
8.48 |
5.03 |
(.36) |
4.35 |
7.02 |
Distributions from net investment income |
(.23) |
(.08) |
(.12) |
(.03)K |
- |
(.12) |
Distributions from net realized gain |
- |
- |
- |
(.01)K |
(.01) |
- |
Total distributions |
(.23) |
(.08) |
(.12) |
(.04) |
(.01) |
(.12) |
Net asset value, end of period |
$ 37.73 |
$ 36.02 |
$ 27.62 |
$ 22.71 |
$ 23.11 |
$ 18.77 |
Total ReturnB, C, D |
5.44% |
30.77% |
22.29% |
(1.57)% |
23.16% |
59.70% |
Ratios to Average Net Assets F, L |
|
|
|
|
|
|
Expenses before reductions |
.96%A |
1.04% |
1.21% |
1.18% |
1.08% |
1.03% |
Expenses net of fee waivers, if any |
.96%A |
1.04% |
1.21% |
1.18% |
1.08% |
1.03% |
Expenses net of all reductions |
.95%A |
1.03% |
1.21% |
1.17% |
1.07% |
1.02% |
Net investment income (loss) |
.69%A |
.73% |
-%H |
.51%I |
.12%J |
.39% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 243 |
$ 243 |
$ 203 |
$ 190 |
$ 221 |
$ 206 |
Portfolio turnover rateG |
5%A |
22% |
23% |
34% |
99% |
161% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.28)%. IInvestment income per share reflects a large, non-recurring dividend which amounted to $.16 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.11)%. JInvestment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.05)%. KThe amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. LExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 37.28 |
$ 28.58 |
$ 23.48 |
$ 23.90 |
$ 19.44 |
$ 12.25 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E |
.09 |
.18 |
(.05) H |
.08I |
(.01) J |
.03 |
Net realized and unrealized gain (loss) |
1.89 |
8.54 |
5.22 |
(.50) |
4.48 |
7.21 |
Total from investment operations |
1.98 |
8.72 |
5.17 |
(.42) |
4.47 |
7.24 |
Distributions from net investment income |
(.16) |
(.02) |
(.07) |
- |
- |
(.05) |
Distributions from net realized gain |
- |
- |
- |
- |
(.01) |
- |
Total distributions |
(.16) |
(.02) |
(.07) |
- |
(.01) |
(.05) |
Net asset value, end of period |
$ 39.10 |
$ 37.28 |
$ 28.58 |
$ 23.48 |
$ 23.90 |
$ 19.44 |
Total ReturnB, C, D |
5.33% |
30.52% |
22.08% |
(1.76)% |
22.98% |
59.40% |
Ratios to Average Net Assets F, K |
|
|
|
|
|
|
Expenses before reductions |
1.16%A |
1.23% |
1.38% |
1.35% |
1.26% |
1.24% |
Expenses net of fee waivers, if any |
1.16%A |
1.23% |
1.38% |
1.35% |
1.26% |
1.24% |
Expenses net of all reductions |
1.16%A |
1.22% |
1.38% |
1.35% |
1.25% |
1.22% |
Net investment income (loss) |
.48%A |
.54% |
(.17)%H |
.33%I |
(.06)%J |
.18% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 331 |
$ 335 |
$ 283 |
$ 274 |
$ 344 |
$ 339 |
Portfolio turnover rateG |
5%A |
22% |
23% |
34% |
99% |
161% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.45)%. IInvestment income per share reflects a large, non-recurring dividend which amounted to $.16 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.29)%. JInvestment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.23)%. KExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 32.86 |
$ 25.34 |
$ 20.87 |
$ 21.37 |
$ 17.48 |
$ 11.03 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E |
(.02) |
(.02) |
(.18)H |
(.06)I |
(.13) J |
(.05) |
Net realized and unrealized gain (loss) |
1.67 |
7.54 |
4.65 |
(.44) |
4.03 |
6.50 |
Total from investment operations |
1.65 |
7.52 |
4.47 |
(.50) |
3.90 |
6.45 |
Distributions from net realized gain |
- |
- |
- |
- |
(.01) |
- |
Net asset value, end of period |
$ 34.51 |
$ 32.86 |
$ 25.34 |
$ 20.87 |
$ 21.37 |
$ 17.48 |
Total ReturnB, C, D |
5.02% |
29.68% |
21.42% |
(2.34)% |
22.29% |
58.48% |
Ratios to Average Net Assets F, K |
|
|
|
|
|
|
Expenses before reductions |
1.78%A |
1.83% |
1.97% |
1.93% |
1.83% |
1.78% |
Expenses net of fee waivers, if any |
1.78%A |
1.83% |
1.97% |
1.93% |
1.83% |
1.78% |
Expenses net of all reductions |
1.77%A |
1.82% |
1.97% |
1.93% |
1.82% |
1.77% |
Net investment income (loss) |
(.14)%A |
(.07)% |
(.76)%H |
(.25)%I |
(.64)%J |
(.36)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 9 |
$ 11 |
$ 13 |
$ 16 |
$ 30 |
$ 40 |
Portfolio turnover rateG |
5%A |
22% |
23% |
34% |
99% |
161% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.04)%. IInvestment income per share reflects a large, non-recurring dividend which amounted to $.16 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.87)%. JInvestment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.80)%. KExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 32.52 |
$ 25.06 |
$ 20.64 |
$ 21.13 |
$ 17.29 |
$ 10.91 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E |
(.01) |
(.01) |
(.17) H |
(.05) I |
(.12) J |
(.05) |
Net realized and unrealized gain (loss) |
1.65 |
7.47 |
4.59 |
(.44) |
3.97 |
6.43 |
Total from investment operations |
1.64 |
7.46 |
4.42 |
(.49) |
3.85 |
6.38 |
Distributions from net investment income |
(.02) |
- |
- |
- |
- |
- |
Distributions from net realized gain |
- |
- |
- |
- |
(.01) |
- |
Total distributions |
(.02) |
- |
- |
- |
(.01) |
- |
Net asset value, end of period |
$ 34.14 |
$ 32.52 |
$ 25.06 |
$ 20.64 |
$ 21.13 |
$ 17.29 |
Total ReturnB, C, D |
5.04% |
29.77% |
21.41% |
(2.32)% |
22.25% |
58.48% |
Ratios to Average Net Assets F, K |
|
|
|
|
|
|
Expenses before reductions |
1.71%A |
1.78% |
1.95% |
1.92% |
1.83% |
1.78% |
Expenses net of fee waivers, if any |
1.71%A |
1.78% |
1.95% |
1.92% |
1.83% |
1.78% |
Expenses net of all reductions |
1.71%A |
1.77% |
1.95% |
1.92% |
1.82% |
1.77% |
Net investment income (loss) |
(.07)%A |
(.02)% |
(.75)%H |
(.24)%I |
(.63)%J |
(.36)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 54 |
$ 54 |
$ 43 |
$ 40 |
$ 49 |
$ 43 |
Portfolio turnover rateG |
5%A |
22% |
23% |
34% |
99% |
161% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.02)%. IInvestment income per share reflects a large, non-recurring dividend which amounted to $.16 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.86)%. JInvestment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.80)%. KExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 40.28 |
$ 30.89 |
$ 25.37 |
$ 25.80 |
$ 20.89 |
$ 13.21 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D |
.20 |
.37 |
.09G |
.22H |
.09I |
.11 |
Net realized and unrealized gain (loss) |
2.04 |
9.20 |
5.62 |
(.54) |
4.83 |
7.73 |
Total from investment operations |
2.24 |
9.57 |
5.71 |
(.32) |
4.92 |
7.84 |
Distributions from net investment income |
(.33) |
(.18) |
(.19) |
(.10)J |
- |
(.16) |
Distributions from net realized gain |
- |
- |
- |
(.01)J |
(.01) |
- |
Total distributions |
(.33) |
(.18) |
(.19) |
(.11) |
(.01) |
(.16) |
Net asset value, end of period |
$ 42.19 |
$ 40.28 |
$ 30.89 |
$ 25.37 |
$ 25.80 |
$ 20.89 |
Total ReturnB, C |
5.62% |
31.14% |
22.69% |
(1.29)% |
23.54% |
60.05% |
Ratios to Average Net Assets E, K |
|
|
|
|
|
|
Expenses before reductions |
.67%A |
.73% |
.89% |
.88% |
.81% |
.78% |
Expenses net of fee waivers, if any |
.67%A |
.73% |
.89% |
.88% |
.81% |
.78% |
Expenses net of all reductions |
.67%A |
.72% |
.89% |
.88% |
.80% |
.77% |
Net investment income (loss) |
.97%A |
1.03% |
.31%G |
.80%H |
.39%I |
.64% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 735 |
$ 681 |
$ 396 |
$ 284 |
$ 360 |
$ 237 |
Portfolio turnover rateF |
5%A |
22% |
23% |
34% |
99% |
161% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DCalculated based on average shares outstanding during the period. EFees 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. FAmount does not include the portfolio activity of any underlying Fidelity Central Funds. GInvestment income per share reflects a large, non-recurring dividend which amounted to $.08 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .04%. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.16 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .18%. IInvestment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .22%. JThe amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. KExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 40.28 |
$ 30.89 |
$ 25.38 |
$ 25.82 |
$ 20.86 |
$ 13.23 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D |
.23 |
.43 |
.14G |
.28H |
.15I |
.16 |
Net realized and unrealized gain (loss) |
2.04 |
9.18 |
5.61 |
(.55) |
4.82 |
7.70 |
Total from investment operations |
2.27 |
9.61 |
5.75 |
(.27) |
4.97 |
7.86 |
Distributions from net investment income |
(.38) |
(.22) |
(.24) |
(.16)J |
- |
(.23) |
Distributions from net realized gain |
- |
- |
- |
(.01)J |
(.01) |
- |
Total distributions |
(.38) |
(.22) |
(.24) |
(.17) |
(.01) |
(.23) |
Net asset value, end of period |
$ 42.17 |
$ 40.28 |
$ 30.89 |
$ 25.38 |
$ 25.82 |
$ 20.86 |
Total ReturnB, C |
5.71% |
31.34% |
22.93% |
(1.11)% |
23.81% |
60.52% |
Ratios to Average Net Assets E, K |
|
|
|
|
|
|
Expenses before reductions |
.52%A |
.58% |
.71% |
.68% |
.58% |
.51% |
Expenses net of fee waivers, if any |
.52%A |
.58% |
.71% |
.68% |
.58% |
.51% |
Expenses net of all reductions |
.51%A |
.57% |
.71% |
.68% |
.56% |
.49% |
Net investment income (loss) |
1.12%A |
1.18% |
.50%G |
1.00%H |
.62%I |
.91% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 111 |
$ 119 |
$ 70 |
$ 47 |
$ 47 |
$ 27 |
Portfolio turnover rateF |
5%A |
22% |
23% |
34% |
99% |
161% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DCalculated based on average shares outstanding during the period. EFees 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. FAmount does not include the portfolio activity of any underlying Fidelity Central Funds. GInvestment income per share reflects a large, non-recurring dividend which amounted to $.08 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .22%. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.16 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .38%. IInvestment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .46%. JThe amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. KExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 38.46 |
$ 29.51 |
$ 24.26 |
$ 24.69 |
$ 19.97 |
$ 12.67 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D |
.18 |
.34 |
.08G |
.22H |
.10I |
.11 |
Net realized and unrealized gain (loss) |
1.95 |
8.79 |
5.37 |
(.53) |
4.63 |
7.38 |
Total from investment operations |
2.13 |
9.13 |
5.45 |
(.31) |
4.73 |
7.49 |
Distributions from net investment income |
(.32) |
(.18) |
(.20) |
(.11)J |
- |
(.19) |
Distributions from net realized gain |
- |
- |
- |
(.01)J |
(.01) |
- |
Total distributions |
(.32) |
(.18) |
(.20) |
(.12) |
(.01) |
(.19) |
Net asset value, end of period |
$ 40.27 |
$ 38.46 |
$ 29.51 |
$ 24.26 |
$ 24.69 |
$ 19.97 |
Total ReturnB, C |
5.60% |
31.11% |
22.67% |
(1.30)% |
23.67% |
60.08% |
Ratios to Average Net Assets E, K |
|
|
|
|
|
|
Expenses before reductions |
.70%A |
.76% |
.90% |
.86% |
.74% |
.70% |
Expenses net of fee waivers, if any |
.70%A |
.76% |
.90% |
.86% |
.74% |
.70% |
Expenses net of all reductions |
.70%A |
.75% |
.90% |
.86% |
.73% |
.69% |
Net investment income (loss) |
.94%A |
1.00% |
.31%G |
.82%H |
.46%I |
.71% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 77 |
$ 74 |
$ 66 |
$ 52 |
$ 53 |
$ 48 |
Portfolio turnover rateF |
5%A |
22% |
23% |
34% |
99% |
161% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DCalculated based on average shares outstanding during the period. EFees 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. FAmount does not include the portfolio activity of any underlying Fidelity Central Funds. GInvestment income per share reflects a large, non-recurring dividend which amounted to $.08 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .03%. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.16 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .20%. IInvestment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .29%. JThe amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. KExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
For the period ended May 31, 2014 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor® Value Strategies Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, Fidelity Value Strategies Fund, Fidelity Value Strategies Fund Class K and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds 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:
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of May 31, 2014, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, partnerships, market discount, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation |
$ 530,276 |
Gross unrealized depreciation |
(18,870) |
Net unrealized appreciation (depreciation) on securities and other investments |
$ 511,406 |
|
|
Tax cost |
$ 1,099,153 |
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.
Fiscal year of expiration |
|
2016 |
$ (70,991) |
2017 |
(187,132) |
Total capital loss carryforward |
$ (258,123) |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $35,414 and $114,362, respectively.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ±.20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Fidelity Value Strategies as compared to its benchmark index, the Russell Midcap® Value Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .42% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
|
Distribution |
Service |
Total Fees |
Retained |
Class A |
-% |
.25% |
$ 301 |
$ 5 |
Class T |
.25% |
.25% |
826 |
11 |
Class B |
.75% |
.25% |
52 |
39 |
Class C |
.75% |
.25% |
266 |
17 |
|
|
|
$ 1,445 |
$ 72 |
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
|
Retained |
Class A |
$ 11 |
Class T |
4 |
Class B* |
1 |
Class C* |
1 |
|
$ 17 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund, except for Class K. FIIOC receives an asset-based fee of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each applicable class were as follows:
|
Amount |
% of |
Class A |
$ 282 |
.23 |
Class T |
310 |
.19 |
Class B |
16 |
.30 |
Class C |
63 |
.24 |
Fidelity Value Strategies Fund |
703 |
.20 |
Fidelity Value Strategies Fund Class K |
26 |
.04 |
Institutional Class |
84 |
.23 |
|
$ 1,484 |
|
* Annualized
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
5. Fees and Other Transactions with Affiliates - continued
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $2 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $1 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. At period end, there were no security loans outstanding with FCM. Security lending income represents the income
Semiannual Report
7. Security Lending - continued
earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $128, including ninety-three dollars from securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $20 for the period.
In addition, the investment adviser reimbursed a portion of the Fund's operating expenses during the period in the amount of $2.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
|
Six months ended |
Year ended |
From net investment income |
|
|
Class A |
$ 1,567 |
$ 555 |
Class T |
1,415 |
167 |
Class C |
32 |
- |
Fidelity Value Strategies Fund |
5,578 |
2,356 |
Fidelity Value Strategies Fund Class K |
1,131 |
520 |
Institutional Class |
608 |
395 |
Total |
$ 10,331 |
$ 3,993 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
10. Share Transactions.
Transactions for each class of shares were as follows:
|
Shares |
Dollars |
||
|
Six months ended May 31, |
Year ended |
Six months ended May 31, |
Year ended |
Class A |
|
|
|
|
Shares sold |
286 |
725 |
$ 10,432 |
$ 22,684 |
Reinvestment of distributions |
41 |
18 |
1,447 |
513 |
Shares redeemed |
(621) |
(1,340) |
(22,607) |
(42,216) |
Net increase (decrease) |
(294) |
(597) |
$ (10,728) |
$ (19,019) |
Class T |
|
|
|
|
Shares sold |
256 |
862 |
$ 9,680 |
$ 28,085 |
Reinvestment of distributions |
35 |
5 |
1,293 |
152 |
Shares redeemed |
(829) |
(1,767) |
(31,364) |
(57,990) |
Net increase (decrease) |
(538) |
(900) |
$ (20,391) |
$ (29,753) |
Class B |
|
|
|
|
Shares sold |
1 |
4 |
$ 15 |
$ 123 |
Shares redeemed |
(82) |
(161) |
(2,729) |
(4,616) |
Net increase (decrease) |
(81) |
(157) |
$ (2,714) |
$ (4,493) |
Class C |
|
|
|
|
Shares sold |
65 |
317 |
$ 2,159 |
$ 8,968 |
Reinvestment of distributions |
1 |
- |
29 |
- |
Shares redeemed |
(149) |
(382) |
(4,927) |
(11,135) |
Net increase (decrease) |
(83) |
(65) |
$ (2,739) |
$ (2,167) |
Fidelity Value Strategies Fund |
|
|
|
|
Shares sold |
5,271 |
11,897 |
$ 214,648 |
$ 405,389 |
Reinvestment of distributions |
127 |
73 |
4,998 |
2,266 |
Shares redeemed |
(4,898) |
(7,881) |
(199,283) |
(279,142) |
Net increase (decrease) |
500 |
4,089 |
$ 20,363 |
$ 128,513 |
Fidelity Value Strategies Fund Class K |
|
|
|
|
Shares sold |
419 |
3,420 |
$ 17,074 |
$ 116,082 |
Reinvestment of distributions |
29 |
17 |
1,131 |
520 |
Shares redeemed |
(771) |
(2,727) |
(31,507) |
(102,509) |
Net increase (decrease) |
(323) |
710 |
$ (13,302) |
$ 14,093 |
Institutional Class |
|
|
|
|
Shares sold |
208 |
776 |
$ 8,101 |
$ 26,302 |
Reinvestment of distributions |
14 |
11 |
523 |
327 |
Shares redeemed |
(232) |
(1,082) |
(8,986) |
(35,829) |
Net increase (decrease) |
(10) |
(295) |
$ (362) |
$ (9,200) |
Semiannual Report
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Brown Brothers Harriman & Co.
Boston, MA
The Fidelity Telephone Connection
Mutual Fund 24-Hour Service
Exchanges/Redemptions and
Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
Fidelity Automated Service
Telephone (FAST®)
1-800-544-5555
Automated line for quickest service
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St., Boston, MA 02210
www.fidelity.com
SOI-USAN-0714 1.786807.111
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Value Strategies
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
May 31, 2014
(Fidelity Cover Art)
Shareholder Expense Example |
An example of shareholder expenses. |
|
Investment Changes |
A summary of major shifts in the fund's investments over the past six months. |
|
Investments |
A complete list of the fund's investments with their market values. |
|
Financial Statements |
Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
|
Notes |
Notes to the financial statements. |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2014 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (December 1, 2013 to May 31, 2014).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
Shareholder Expense Example - continued
|
Annualized |
Beginning |
Ending |
Expenses Paid |
Class A |
.96% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,054.40 |
$ 4.92 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,020.14 |
$ 4.84 |
Class T |
1.16% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,053.30 |
$ 5.94 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,019.15 |
$ 5.84 |
Class B |
1.78% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,050.20 |
$ 9.10 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,016.06 |
$ 8.95 |
Class C |
1.71% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,050.40 |
$ 8.74 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,016.40 |
$ 8.60 |
Fidelity Value Strategies Fund |
.67% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,056.20 |
$ 3.43 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,021.59 |
$ 3.38 |
Fidelity Value Strategies Fund Class K |
.52% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,057.10 |
$ 2.67 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,022.34 |
$ 2.62 |
Institutional Class |
.70% |
|
|
|
Actual |
|
$ 1,000.00 |
$ 1,056.00 |
$ 3.59 |
HypotheticalA |
|
$ 1,000.00 |
$ 1,021.44 |
$ 3.53 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).
Semiannual Report
Top Ten Stocks as of May 31, 2014 |
||
|
% of fund's |
% of fund's net assets |
LyondellBasell Industries NV Class A |
6.7 |
5.8 |
Sanofi SA sponsored ADR |
3.7 |
3.8 |
Apple, Inc. |
3.3 |
3.0 |
Bank of America Corp. |
3.3 |
3.5 |
Delphi Automotive PLC |
3.2 |
2.8 |
Symantec Corp. |
3.0 |
3.1 |
General Motors Co. |
2.9 |
3.7 |
U.S. Bancorp |
2.3 |
2.2 |
Alliant Techsystems, Inc. |
2.3 |
2.2 |
AFLAC, Inc. |
2.2 |
2.4 |
|
32.9 |
|
Top Five Market Sectors as of May 31, 2014 |
||
|
% of fund's |
% of fund's net assets |
Consumer Discretionary |
19.0 |
23.9 |
Health Care |
15.0 |
14.3 |
Financials |
12.4 |
11.4 |
Information Technology |
12.0 |
12.4 |
Materials |
9.4 |
8.8 |
Asset Allocation (% of fund's net assets) |
|||||||
As of May 31, 2014 * |
As of November 30, 2013 ** |
||||||
Stocks 91.2% |
|
Stocks 93.9% |
|
||||
Bonds 0.3% |
|
Bonds 0.4% |
|
||||
Short-Term |
|
Short-Term |
|
||||
* Foreign investments |
18.4% |
|
** Foreign investments |
17.0% |
|
Semiannual Report
Showing Percentage of Net Assets
Common Stocks - 91.2% |
|||
Shares |
Value (000s) |
||
CONSUMER DISCRETIONARY - 19.0% |
|||
Auto Components - 4.4% |
|||
Delphi Automotive PLC |
719,777 |
$ 49,708 |
|
Tenneco, Inc. (a) |
164,524 |
10,488 |
|
TRW Automotive Holdings Corp. (a) |
91,400 |
7,757 |
|
|
67,953 |
||
Automobiles - 3.5% |
|||
Bayerische Motoren Werke AG (BMW) |
36,387 |
4,568 |
|
General Motors Co. |
1,284,836 |
44,430 |
|
Volkswagen AG |
18,856 |
4,967 |
|
|
53,965 |
||
Diversified Consumer Services - 0.9% |
|||
Service Corp. International |
729,650 |
14,608 |
|
Hotels, Restaurants & Leisure - 1.7% |
|||
Cedar Fair LP (depositary unit) |
227,420 |
11,833 |
|
Wyndham Worldwide Corp. |
199,867 |
14,776 |
|
|
26,609 |
||
Household Durables - 3.4% |
|||
Lennar Corp. Class A (d) |
424,700 |
17,370 |
|
PulteGroup, Inc. |
744,504 |
14,562 |
|
Ryland Group, Inc. |
151,400 |
5,708 |
|
Standard Pacific Corp. (a) |
1,866,450 |
14,988 |
|
|
52,628 |
||
Leisure Products - 0.9% |
|||
Hasbro, Inc. |
266,797 |
14,327 |
|
Media - 1.0% |
|||
Omnicom Group, Inc. |
120,112 |
8,546 |
|
Regal Entertainment Group Class A (d) |
363,100 |
7,084 |
|
|
15,630 |
||
Specialty Retail - 3.2% |
|||
Asbury Automotive Group, Inc. (a) |
343,641 |
22,213 |
|
GameStop Corp. Class A (d) |
751,713 |
28,452 |
|
|
50,665 |
||
TOTAL CONSUMER DISCRETIONARY |
296,385 |
||
CONSUMER STAPLES - 5.3% |
|||
Beverages - 1.6% |
|||
Cott Corp. (d) |
3,511,564 |
24,743 |
|
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
CONSUMER STAPLES - continued |
|||
Food & Staples Retailing - 1.2% |
|||
CVS Caremark Corp. |
237,100 |
$ 18,570 |
|
Food Products - 1.8% |
|||
Bunge Ltd. |
102,214 |
7,943 |
|
Calavo Growers, Inc. |
232,028 |
7,256 |
|
SunOpta, Inc. (a) |
984,885 |
13,247 |
|
|
28,446 |
||
Household Products - 0.7% |
|||
Procter & Gamble Co. |
142,100 |
11,480 |
|
TOTAL CONSUMER STAPLES |
83,239 |
||
ENERGY - 4.9% |
|||
Energy Equipment & Services - 0.8% |
|||
Halliburton Co. |
183,600 |
11,868 |
|
Oil, Gas & Consumable Fuels - 4.1% |
|||
Denbury Resources, Inc. (d) |
1,516,780 |
25,618 |
|
EP Energy Corp. |
274,600 |
5,508 |
|
HollyFrontier Corp. |
153,000 |
7,535 |
|
The Williams Companies, Inc. |
154,500 |
7,255 |
|
Valero Energy Corp. |
327,300 |
18,345 |
|
|
64,261 |
||
TOTAL ENERGY |
76,129 |
||
FINANCIALS - 12.4% |
|||
Banks - 8.5% |
|||
Bank of America Corp. |
3,355,213 |
50,798 |
|
CIT Group, Inc. |
157,349 |
6,999 |
|
Citigroup, Inc. |
227,323 |
10,814 |
|
Regions Financial Corp. |
778,163 |
7,929 |
|
U.S. Bancorp |
862,484 |
36,388 |
|
Wells Fargo & Co. |
377,370 |
19,163 |
|
|
132,091 |
||
Capital Markets - 0.5% |
|||
The Blackstone Group LP |
267,400 |
8,311 |
|
Insurance - 3.4% |
|||
AFLAC, Inc. |
549,986 |
33,676 |
|
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
FINANCIALS - continued |
|||
Insurance - continued |
|||
American International Group, Inc. |
201,698 |
$ 10,906 |
|
Unum Group |
235,260 |
7,978 |
|
|
52,560 |
||
TOTAL FINANCIALS |
192,962 |
||
HEALTH CARE - 15.0% |
|||
Health Care Equipment & Supplies - 5.1% |
|||
Alere, Inc. (a) |
172,283 |
6,163 |
|
Boston Scientific Corp. (a) |
1,785,400 |
22,907 |
|
C.R. Bard, Inc. |
75,400 |
11,152 |
|
St. Jude Medical, Inc. |
463,300 |
30,068 |
|
Zimmer Holdings, Inc. |
87,600 |
9,141 |
|
|
79,431 |
||
Health Care Providers & Services - 2.3% |
|||
DaVita HealthCare Partners, Inc. (a) |
158,496 |
11,188 |
|
Universal Health Services, Inc. Class B |
278,914 |
24,982 |
|
|
36,170 |
||
Life Sciences Tools & Services - 1.2% |
|||
Agilent Technologies, Inc. |
180,700 |
10,289 |
|
PerkinElmer, Inc. |
207,500 |
9,331 |
|
|
19,620 |
||
Pharmaceuticals - 6.4% |
|||
Johnson & Johnson |
187,800 |
19,054 |
|
Merck & Co., Inc. |
390,800 |
22,612 |
|
Sanofi SA sponsored ADR |
1,088,444 |
58,014 |
|
|
99,680 |
||
TOTAL HEALTH CARE |
234,901 |
||
INDUSTRIALS - 7.3% |
|||
Aerospace & Defense - 5.3% |
|||
Alliant Techsystems, Inc. |
278,850 |
35,216 |
|
Esterline Technologies Corp. (a) |
180,022 |
20,063 |
|
Honeywell International, Inc. |
139,500 |
12,994 |
|
Textron, Inc. |
223,717 |
8,774 |
|
United Technologies Corp. |
47,400 |
5,509 |
|
|
82,556 |
||
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
INDUSTRIALS - continued |
|||
Building Products - 0.7% |
|||
Allegion PLC |
69,366 |
$ 3,634 |
|
Armstrong World Industries, Inc. (a) |
143,230 |
7,601 |
|
|
11,235 |
||
Machinery - 1.0% |
|||
Blount International, Inc. (a) |
292,004 |
3,557 |
|
Ingersoll-Rand PLC |
208,100 |
12,449 |
|
|
16,006 |
||
Trading Companies & Distributors - 0.3% |
|||
Aircastle Ltd. |
290,150 |
4,869 |
|
TOTAL INDUSTRIALS |
114,666 |
||
INFORMATION TECHNOLOGY - 12.0% |
|||
Communications Equipment - 0.3% |
|||
Cisco Systems, Inc. |
204,600 |
5,037 |
|
IT Services - 0.6% |
|||
Fidelity National Information Services, Inc. |
165,730 |
8,974 |
|
Semiconductors & Semiconductor Equipment - 3.7% |
|||
MagnaChip Semiconductor Corp. (a) |
978,700 |
12,155 |
|
Micron Technology, Inc. (a) |
911,183 |
26,051 |
|
ON Semiconductor Corp. (a) |
855,870 |
7,438 |
|
Spansion, Inc. Class A (a) |
613,543 |
11,688 |
|
|
57,332 |
||
Software - 4.1% |
|||
Microsoft Corp. |
429,324 |
17,577 |
|
Symantec Corp. |
2,116,671 |
46,546 |
|
|
64,123 |
||
Technology Hardware, Storage & Peripherals - 3.3% |
|||
Apple, Inc. |
80,880 |
51,197 |
|
TOTAL INFORMATION TECHNOLOGY |
186,663 |
||
MATERIALS - 9.4% |
|||
Chemicals - 9.0% |
|||
Ashland, Inc. |
83,100 |
8,559 |
|
Axiall Corp. |
81,626 |
3,772 |
|
LyondellBasell Industries NV Class A |
1,055,392 |
105,085 |
|
Common Stocks - continued |
|||
Shares |
Value (000s) |
||
MATERIALS - continued |
|||
Chemicals - continued |
|||
PPG Industries, Inc. |
77,296 |
$ 15,584 |
|
W.R. Grace & Co. (a) |
83,628 |
7,700 |
|
|
140,700 |
||
Metals & Mining - 0.4% |
|||
Carpenter Technology Corp. |
86,796 |
5,424 |
|
TOTAL MATERIALS |
146,124 |
||
TELECOMMUNICATION SERVICES - 1.6% |
|||
Diversified Telecommunication Services - 1.6% |
|||
Level 3 Communications, Inc. (a) |
558,139 |
24,363 |
|
UTILITIES - 4.3% |
|||
Electric Utilities - 0.4% |
|||
NextEra Energy, Inc. |
67,700 |
6,591 |
|
Independent Power Producers & Energy Traders - 2.8% |
|||
Calpine Corp. (a) |
822,963 |
19,191 |
|
The AES Corp. |
1,687,800 |
23,798 |
|
|
42,989 |
||
Multi-Utilities - 1.1% |
|||
Sempra Energy |
179,639 |
18,027 |
|
TOTAL UTILITIES |
67,607 |
||
TOTAL COMMON STOCKS (Cost $907,858) |
|
Nonconvertible Bonds - 0.3% |
||||
|
Principal Amount (000s) |
|
||
ENERGY - 0.3% |
||||
Oil, Gas & Consumable Fuels - 0.3% |
||||
Alpha Natural Resources, Inc. 6.25% 6/1/21 (Cost $6,457) |
|
$ 7,670 |
|
|
Money Market Funds - 11.7% |
|||
Shares |
Value (000s) |
||
Fidelity Cash Central Fund, 0.10% (b) |
134,670,042 |
$ 134,670 |
|
Fidelity Securities Lending Cash Central Fund, 0.10% (b)(c) |
47,596,174 |
47,596 |
|
TOTAL MONEY MARKET FUNDS (Cost $182,266) |
|
||
TOTAL INVESTMENT PORTFOLIO - 103.2% (Cost $1,096,581) |
1,610,559 |
||
NET OTHER ASSETS (LIABILITIES) - (3.2)% |
(50,575) |
||
NET ASSETS - 100% |
$ 1,559,984 |
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) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan 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 |
$ 61 |
Fidelity Securities Lending Cash Central Fund |
128 |
Total |
$ 189 |
Other Affiliated Issuers |
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliate |
Value, beginning of period |
Purchases |
Sales Proceeds |
Dividend Income |
Value, |
The Bon-Ton Stores, Inc. |
$ 34,067 |
$ - |
$ 18,895 |
$ 96 |
$ - |
Other Information |
The following is a summary of the inputs used, as of May 31, 2014, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: |
||||
Description |
Total |
Level 1 |
Level 2 |
Level 3 |
Investments in Securities: |
||||
Equities: |
||||
Consumer Discretionary |
$ 296,385 |
$ 296,385 |
$ - |
$ - |
Consumer Staples |
83,239 |
83,239 |
- |
- |
Energy |
76,129 |
76,129 |
- |
- |
Financials |
192,962 |
192,962 |
- |
- |
Health Care |
234,901 |
234,901 |
- |
- |
Industrials |
114,666 |
114,666 |
- |
- |
Information Technology |
186,663 |
186,663 |
- |
- |
Materials |
146,124 |
146,124 |
- |
- |
Telecommunication Services |
24,363 |
24,363 |
- |
- |
Utilities |
67,607 |
67,607 |
- |
- |
Corporate Bonds |
5,254 |
- |
5,254 |
- |
Money Market Funds |
182,266 |
182,266 |
- |
- |
Total Investments in Securities: |
$ 1,610,559 |
$ 1,605,305 |
$ 5,254 |
$ - |
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited): |
United States of America |
81.6% |
Netherlands |
6.7% |
France |
3.7% |
Bailiwick of Jersey |
3.2% |
Canada |
2.4% |
Ireland |
1.0% |
Others (Individually Less Than 1%) |
1.4% |
|
100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Amounts in thousands (except per-share amounts) |
May 31, 2014 (Unaudited) |
|
|
|
|
Assets |
|
|
Investment in securities, at value (including securities loaned of $46,094) - See accompanying schedule: Unaffiliated issuers (cost $914,315) |
$ 1,428,293 |
|
Fidelity Central Funds (cost $182,266) |
182,266 |
|
Total Investments (cost $1,096,581) |
|
$ 1,610,559 |
Receivable for fund shares sold |
|
1,284 |
Dividends receivable |
|
3,140 |
Interest receivable |
|
292 |
Distributions receivable from Fidelity Central Funds |
|
95 |
Prepaid expenses |
|
1 |
Other receivables |
|
9 |
Total assets |
|
1,615,380 |
|
|
|
Liabilities |
|
|
Payable for investments purchased |
$ 4,842 |
|
Payable for fund shares redeemed |
1,891 |
|
Accrued management fee |
505 |
|
Distribution and service plan fees payable |
239 |
|
Other affiliated payables |
292 |
|
Other payables and accrued expenses |
31 |
|
Collateral on securities loaned, at value |
47,596 |
|
Total liabilities |
|
55,396 |
|
|
|
Net Assets |
|
$ 1,559,984 |
Net Assets consist of: |
|
|
Paid in capital |
|
$ 1,286,257 |
Undistributed net investment income |
|
5,603 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions |
|
(245,855) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies |
|
513,979 |
Net Assets |
|
$ 1,559,984 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Amounts in thousands (except per-share amounts) |
May 31, 2014 (Unaudited) |
|
|
|
|
Calculation of Maximum Offering Price Class A: |
|
$ 37.73 |
|
|
|
Maximum offering price per share (100/94.25 of $37.73) |
|
$ 40.03 |
Class T: |
|
$ 39.10 |
|
|
|
Maximum offering price per share (100/96.50 of $39.10) |
|
$ 40.52 |
Class B: |
|
$ 34.51 |
|
|
|
Class C: |
|
$ 34.14 |
|
|
|
Fidelity Value Strategies Fund: |
|
$ 42.19 |
|
|
|
Fidelity Value Strategies Fund Class K: |
|
$ 42.17 |
|
|
|
Institutional Class: |
|
$ 40.27 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Amounts in thousands |
Six months ended May 31, 2014 |
|
|
|
|
Investment Income |
|
|
Dividends (including $96 earned from other affiliated issuers) |
|
$ 11,944 |
Interest |
|
300 |
Income from Fidelity Central Funds |
|
189 |
Total income |
|
12,433 |
|
|
|
Expenses |
|
|
Management fee |
$ 4,177 |
|
Performance adjustment |
(1,000) |
|
Transfer agent fees |
1,484 |
|
Distribution and service plan fees |
1,445 |
|
Accounting and security lending fees |
242 |
|
Custodian fees and expenses |
8 |
|
Independent trustees' compensation |
3 |
|
Registration fees |
105 |
|
Audit |
37 |
|
Legal |
3 |
|
Miscellaneous |
6 |
|
Total expenses before reductions |
6,510 |
|
Expense reductions |
(22) |
6,488 |
Net investment income (loss) |
|
5,945 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: |
|
|
Investment securities: |
|
|
Unaffiliated issuers |
20,094 |
|
Other affiliated issuers |
(6,098) |
|
Foreign currency transactions |
(1) |
|
Total net realized gain (loss) |
|
13,995 |
Change in net unrealized appreciation (depreciation) on: Investment securities |
62,169 |
|
Assets and liabilities in foreign currencies |
1 |
|
Total change in net unrealized appreciation (depreciation) |
|
62,170 |
Net gain (loss) |
|
76,165 |
Net increase (decrease) in net assets resulting from operations |
|
$ 82,110 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Amounts in thousands |
Six months ended May 31, 2014
|
Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) |
$ 5,945 |
$ 11,916 |
Net realized gain (loss) |
13,995 |
66,011 |
Change in net unrealized appreciation (depreciation) |
62,170 |
293,442 |
Net increase (decrease) in net assets resulting |
82,110 |
371,369 |
Distributions to shareholders from net investment income |
(10,331) |
(3,993) |
Share transactions - net increase (decrease) |
(29,873) |
77,974 |
Total increase (decrease) in net assets |
41,906 |
445,350 |
|
|
|
Net Assets |
|
|
Beginning of period |
1,518,078 |
1,072,728 |
End of period (including undistributed net investment income of $5,603 and undistributed net investment income of $9,989, respectively) |
$ 1,559,984 |
$ 1,518,078 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 36.02 |
$ 27.62 |
$ 22.71 |
$ 23.11 |
$ 18.77 |
$ 11.87 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E |
.12 |
.23 |
-H |
.13I |
.03J |
.06 |
Net realized and unrealized gain (loss) |
1.82 |
8.25 |
5.03 |
(.49) |
4.32 |
6.96 |
Total from investment operations |
1.94 |
8.48 |
5.03 |
(.36) |
4.35 |
7.02 |
Distributions from net investment income |
(.23) |
(.08) |
(.12) |
(.03)K |
- |
(.12) |
Distributions from net realized gain |
- |
- |
- |
(.01)K |
(.01) |
- |
Total distributions |
(.23) |
(.08) |
(.12) |
(.04) |
(.01) |
(.12) |
Net asset value, end of period |
$ 37.73 |
$ 36.02 |
$ 27.62 |
$ 22.71 |
$ 23.11 |
$ 18.77 |
Total ReturnB, C, D |
5.44% |
30.77% |
22.29% |
(1.57)% |
23.16% |
59.70% |
Ratios to Average Net Assets F, L |
|
|
|
|
|
|
Expenses before reductions |
.96%A |
1.04% |
1.21% |
1.18% |
1.08% |
1.03% |
Expenses net of fee waivers, if any |
.96%A |
1.04% |
1.21% |
1.18% |
1.08% |
1.03% |
Expenses net of all reductions |
.95%A |
1.03% |
1.21% |
1.17% |
1.07% |
1.02% |
Net investment income (loss) |
.69%A |
.73% |
-%H |
.51%I |
.12%J |
.39% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 243 |
$ 243 |
$ 203 |
$ 190 |
$ 221 |
$ 206 |
Portfolio turnover rateG |
5%A |
22% |
23% |
34% |
99% |
161% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.28)%. IInvestment income per share reflects a large, non-recurring dividend which amounted to $.16 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.11)%. JInvestment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.05)%. KThe amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. LExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 37.28 |
$ 28.58 |
$ 23.48 |
$ 23.90 |
$ 19.44 |
$ 12.25 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E |
.09 |
.18 |
(.05) H |
.08I |
(.01) J |
.03 |
Net realized and unrealized gain (loss) |
1.89 |
8.54 |
5.22 |
(.50) |
4.48 |
7.21 |
Total from investment operations |
1.98 |
8.72 |
5.17 |
(.42) |
4.47 |
7.24 |
Distributions from net investment income |
(.16) |
(.02) |
(.07) |
- |
- |
(.05) |
Distributions from net realized gain |
- |
- |
- |
- |
(.01) |
- |
Total distributions |
(.16) |
(.02) |
(.07) |
- |
(.01) |
(.05) |
Net asset value, end of period |
$ 39.10 |
$ 37.28 |
$ 28.58 |
$ 23.48 |
$ 23.90 |
$ 19.44 |
Total ReturnB, C, D |
5.33% |
30.52% |
22.08% |
(1.76)% |
22.98% |
59.40% |
Ratios to Average Net Assets F, K |
|
|
|
|
|
|
Expenses before reductions |
1.16%A |
1.23% |
1.38% |
1.35% |
1.26% |
1.24% |
Expenses net of fee waivers, if any |
1.16%A |
1.23% |
1.38% |
1.35% |
1.26% |
1.24% |
Expenses net of all reductions |
1.16%A |
1.22% |
1.38% |
1.35% |
1.25% |
1.22% |
Net investment income (loss) |
.48%A |
.54% |
(.17)%H |
.33%I |
(.06)%J |
.18% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 331 |
$ 335 |
$ 283 |
$ 274 |
$ 344 |
$ 339 |
Portfolio turnover rateG |
5%A |
22% |
23% |
34% |
99% |
161% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.07 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.45)%. IInvestment income per share reflects a large, non-recurring dividend which amounted to $.16 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.29)%. JInvestment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.23)%. KExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 32.86 |
$ 25.34 |
$ 20.87 |
$ 21.37 |
$ 17.48 |
$ 11.03 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E |
(.02) |
(.02) |
(.18)H |
(.06)I |
(.13) J |
(.05) |
Net realized and unrealized gain (loss) |
1.67 |
7.54 |
4.65 |
(.44) |
4.03 |
6.50 |
Total from investment operations |
1.65 |
7.52 |
4.47 |
(.50) |
3.90 |
6.45 |
Distributions from net realized gain |
- |
- |
- |
- |
(.01) |
- |
Net asset value, end of period |
$ 34.51 |
$ 32.86 |
$ 25.34 |
$ 20.87 |
$ 21.37 |
$ 17.48 |
Total ReturnB, C, D |
5.02% |
29.68% |
21.42% |
(2.34)% |
22.29% |
58.48% |
Ratios to Average Net Assets F, K |
|
|
|
|
|
|
Expenses before reductions |
1.78%A |
1.83% |
1.97% |
1.93% |
1.83% |
1.78% |
Expenses net of fee waivers, if any |
1.78%A |
1.83% |
1.97% |
1.93% |
1.83% |
1.78% |
Expenses net of all reductions |
1.77%A |
1.82% |
1.97% |
1.93% |
1.82% |
1.77% |
Net investment income (loss) |
(.14)%A |
(.07)% |
(.76)%H |
(.25)%I |
(.64)%J |
(.36)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 9 |
$ 11 |
$ 13 |
$ 16 |
$ 30 |
$ 40 |
Portfolio turnover rateG |
5%A |
22% |
23% |
34% |
99% |
161% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.04)%. IInvestment income per share reflects a large, non-recurring dividend which amounted to $.16 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.87)%. JInvestment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.80)%. KExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 32.52 |
$ 25.06 |
$ 20.64 |
$ 21.13 |
$ 17.29 |
$ 10.91 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) E |
(.01) |
(.01) |
(.17) H |
(.05) I |
(.12) J |
(.05) |
Net realized and unrealized gain (loss) |
1.65 |
7.47 |
4.59 |
(.44) |
3.97 |
6.43 |
Total from investment operations |
1.64 |
7.46 |
4.42 |
(.49) |
3.85 |
6.38 |
Distributions from net investment income |
(.02) |
- |
- |
- |
- |
- |
Distributions from net realized gain |
- |
- |
- |
- |
(.01) |
- |
Total distributions |
(.02) |
- |
- |
- |
(.01) |
- |
Net asset value, end of period |
$ 34.14 |
$ 32.52 |
$ 25.06 |
$ 20.64 |
$ 21.13 |
$ 17.29 |
Total ReturnB, C, D |
5.04% |
29.77% |
21.41% |
(2.32)% |
22.25% |
58.48% |
Ratios to Average Net Assets F, K |
|
|
|
|
|
|
Expenses before reductions |
1.71%A |
1.78% |
1.95% |
1.92% |
1.83% |
1.78% |
Expenses net of fee waivers, if any |
1.71%A |
1.78% |
1.95% |
1.92% |
1.83% |
1.78% |
Expenses net of all reductions |
1.71%A |
1.77% |
1.95% |
1.92% |
1.82% |
1.77% |
Net investment income (loss) |
(.07)%A |
(.02)% |
(.75)%H |
(.24)%I |
(.63)%J |
(.36)% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 54 |
$ 54 |
$ 43 |
$ 40 |
$ 49 |
$ 43 |
Portfolio turnover rateG |
5%A |
22% |
23% |
34% |
99% |
161% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFees 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. GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.02)%. IInvestment income per share reflects a large, non-recurring dividend which amounted to $.16 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.86)%. JInvestment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.80)%. KExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 40.28 |
$ 30.89 |
$ 25.37 |
$ 25.80 |
$ 20.89 |
$ 13.21 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D |
.20 |
.37 |
.09G |
.22H |
.09I |
.11 |
Net realized and unrealized gain (loss) |
2.04 |
9.20 |
5.62 |
(.54) |
4.83 |
7.73 |
Total from investment operations |
2.24 |
9.57 |
5.71 |
(.32) |
4.92 |
7.84 |
Distributions from net investment income |
(.33) |
(.18) |
(.19) |
(.10)J |
- |
(.16) |
Distributions from net realized gain |
- |
- |
- |
(.01)J |
(.01) |
- |
Total distributions |
(.33) |
(.18) |
(.19) |
(.11) |
(.01) |
(.16) |
Net asset value, end of period |
$ 42.19 |
$ 40.28 |
$ 30.89 |
$ 25.37 |
$ 25.80 |
$ 20.89 |
Total ReturnB, C |
5.62% |
31.14% |
22.69% |
(1.29)% |
23.54% |
60.05% |
Ratios to Average Net Assets E, K |
|
|
|
|
|
|
Expenses before reductions |
.67%A |
.73% |
.89% |
.88% |
.81% |
.78% |
Expenses net of fee waivers, if any |
.67%A |
.73% |
.89% |
.88% |
.81% |
.78% |
Expenses net of all reductions |
.67%A |
.72% |
.89% |
.88% |
.80% |
.77% |
Net investment income (loss) |
.97%A |
1.03% |
.31%G |
.80%H |
.39%I |
.64% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 735 |
$ 681 |
$ 396 |
$ 284 |
$ 360 |
$ 237 |
Portfolio turnover rateF |
5%A |
22% |
23% |
34% |
99% |
161% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DCalculated based on average shares outstanding during the period. EFees 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. FAmount does not include the portfolio activity of any underlying Fidelity Central Funds. GInvestment income per share reflects a large, non-recurring dividend which amounted to $.08 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .04%. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.16 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .18%. IInvestment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .22%. JThe amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. KExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 40.28 |
$ 30.89 |
$ 25.38 |
$ 25.82 |
$ 20.86 |
$ 13.23 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D |
.23 |
.43 |
.14G |
.28H |
.15I |
.16 |
Net realized and unrealized gain (loss) |
2.04 |
9.18 |
5.61 |
(.55) |
4.82 |
7.70 |
Total from investment operations |
2.27 |
9.61 |
5.75 |
(.27) |
4.97 |
7.86 |
Distributions from net investment income |
(.38) |
(.22) |
(.24) |
(.16)J |
- |
(.23) |
Distributions from net realized gain |
- |
- |
- |
(.01)J |
(.01) |
- |
Total distributions |
(.38) |
(.22) |
(.24) |
(.17) |
(.01) |
(.23) |
Net asset value, end of period |
$ 42.17 |
$ 40.28 |
$ 30.89 |
$ 25.38 |
$ 25.82 |
$ 20.86 |
Total ReturnB, C |
5.71% |
31.34% |
22.93% |
(1.11)% |
23.81% |
60.52% |
Ratios to Average Net Assets E, K |
|
|
|
|
|
|
Expenses before reductions |
.52%A |
.58% |
.71% |
.68% |
.58% |
.51% |
Expenses net of fee waivers, if any |
.52%A |
.58% |
.71% |
.68% |
.58% |
.51% |
Expenses net of all reductions |
.51%A |
.57% |
.71% |
.68% |
.56% |
.49% |
Net investment income (loss) |
1.12%A |
1.18% |
.50%G |
1.00%H |
.62%I |
.91% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 111 |
$ 119 |
$ 70 |
$ 47 |
$ 47 |
$ 27 |
Portfolio turnover rateF |
5%A |
22% |
23% |
34% |
99% |
161% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DCalculated based on average shares outstanding during the period. EFees 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. FAmount does not include the portfolio activity of any underlying Fidelity Central Funds. GInvestment income per share reflects a large, non-recurring dividend which amounted to $.08 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .22%. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.16 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .38%. IInvestment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .46%. JThe amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. KExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
|
Six months ended May 31, 2014 |
Years ended November 30, |
||||
|
(Unaudited) |
2013 |
2012 |
2011 |
2010 |
2009 |
Selected Per-Share Data |
|
|
|
|
|
|
Net asset value, beginning of period |
$ 38.46 |
$ 29.51 |
$ 24.26 |
$ 24.69 |
$ 19.97 |
$ 12.67 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D |
.18 |
.34 |
.08G |
.22H |
.10I |
.11 |
Net realized and unrealized gain (loss) |
1.95 |
8.79 |
5.37 |
(.53) |
4.63 |
7.38 |
Total from investment operations |
2.13 |
9.13 |
5.45 |
(.31) |
4.73 |
7.49 |
Distributions from net investment income |
(.32) |
(.18) |
(.20) |
(.11)J |
- |
(.19) |
Distributions from net realized gain |
- |
- |
- |
(.01)J |
(.01) |
- |
Total distributions |
(.32) |
(.18) |
(.20) |
(.12) |
(.01) |
(.19) |
Net asset value, end of period |
$ 40.27 |
$ 38.46 |
$ 29.51 |
$ 24.26 |
$ 24.69 |
$ 19.97 |
Total ReturnB, C |
5.60% |
31.11% |
22.67% |
(1.30)% |
23.67% |
60.08% |
Ratios to Average Net Assets E, K |
|
|
|
|
|
|
Expenses before reductions |
.70%A |
.76% |
.90% |
.86% |
.74% |
.70% |
Expenses net of fee waivers, if any |
.70%A |
.76% |
.90% |
.86% |
.74% |
.70% |
Expenses net of all reductions |
.70%A |
.75% |
.90% |
.86% |
.73% |
.69% |
Net investment income (loss) |
.94%A |
1.00% |
.31%G |
.82%H |
.46%I |
.71% |
Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (in millions) |
$ 77 |
$ 74 |
$ 66 |
$ 52 |
$ 53 |
$ 48 |
Portfolio turnover rateF |
5%A |
22% |
23% |
34% |
99% |
161% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown. DCalculated based on average shares outstanding during the period. EFees 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. FAmount does not include the portfolio activity of any underlying Fidelity Central Funds. GInvestment income per share reflects a large, non-recurring dividend which amounted to $.08 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .03%. HInvestment income per share reflects a large, non-recurring dividend which amounted to $.16 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .20%. IInvestment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .29%. JThe amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown. KExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
For the period ended May 31, 2014 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor® Value Strategies Fund (the Fund) is a fund of Fidelity Advisor Series I (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C, Fidelity Value Strategies Fund, Fidelity Value Strategies Fund Class K and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds 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:
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Semiannual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of May 31, 2014, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, partnerships, market discount, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation |
$ 530,276 |
Gross unrealized depreciation |
(18,870) |
Net unrealized appreciation (depreciation) on securities and other investments |
$ 511,406 |
|
|
Tax cost |
$ 1,099,153 |
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.
Fiscal year of expiration |
|
2016 |
$ (70,991) |
2017 |
(187,132) |
Total capital loss carryforward |
$ (258,123) |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $35,414 and $114,362, respectively.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .25% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ±.20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Fidelity Value Strategies as compared to its benchmark index, the Russell Midcap® Value Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .42% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
|
Distribution |
Service |
Total Fees |
Retained |
Class A |
-% |
.25% |
$ 301 |
$ 5 |
Class T |
.25% |
.25% |
826 |
11 |
Class B |
.75% |
.25% |
52 |
39 |
Class C |
.75% |
.25% |
266 |
17 |
|
|
|
$ 1,445 |
$ 72 |
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
|
Retained |
Class A |
$ 11 |
Class T |
4 |
Class B* |
1 |
Class C* |
1 |
|
$ 17 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund, except for Class K. FIIOC receives an asset-based fee of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each applicable class were as follows:
|
Amount |
% of |
Class A |
$ 282 |
.23 |
Class T |
310 |
.19 |
Class B |
16 |
.30 |
Class C |
63 |
.24 |
Fidelity Value Strategies Fund |
703 |
.20 |
Fidelity Value Strategies Fund Class K |
26 |
.04 |
Institutional Class |
84 |
.23 |
|
$ 1,484 |
|
* Annualized
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
5. Fees and Other Transactions with Affiliates - continued
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $2 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $1 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. At period end, there were no security loans outstanding with FCM. Security lending income represents the income
Semiannual Report
7. Security Lending - continued
earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $128, including ninety-three dollars from securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $20 for the period.
In addition, the investment adviser reimbursed a portion of the Fund's operating expenses during the period in the amount of $2.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
|
Six months ended |
Year ended |
From net investment income |
|
|
Class A |
$ 1,567 |
$ 555 |
Class T |
1,415 |
167 |
Class C |
32 |
- |
Fidelity Value Strategies Fund |
5,578 |
2,356 |
Fidelity Value Strategies Fund Class K |
1,131 |
520 |
Institutional Class |
608 |
395 |
Total |
$ 10,331 |
$ 3,993 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
10. Share Transactions.
Transactions for each class of shares were as follows:
|
Shares |
Dollars |
||
|
Six months ended May 31, |
Year ended |
Six months ended May 31, |
Year ended |
Class A |
|
|
|
|
Shares sold |
286 |
725 |
$ 10,432 |
$ 22,684 |
Reinvestment of distributions |
41 |
18 |
1,447 |
513 |
Shares redeemed |
(621) |
(1,340) |
(22,607) |
(42,216) |
Net increase (decrease) |
(294) |
(597) |
$ (10,728) |
$ (19,019) |
Class T |
|
|
|
|
Shares sold |
256 |
862 |
$ 9,680 |
$ 28,085 |
Reinvestment of distributions |
35 |
5 |
1,293 |
152 |
Shares redeemed |
(829) |
(1,767) |
(31,364) |
(57,990) |
Net increase (decrease) |
(538) |
(900) |
$ (20,391) |
$ (29,753) |
Class B |
|
|
|
|
Shares sold |
1 |
4 |
$ 15 |
$ 123 |
Shares redeemed |
(82) |
(161) |
(2,729) |
(4,616) |
Net increase (decrease) |
(81) |
(157) |
$ (2,714) |
$ (4,493) |
Class C |
|
|
|
|
Shares sold |
65 |
317 |
$ 2,159 |
$ 8,968 |
Reinvestment of distributions |
1 |
- |
29 |
- |
Shares redeemed |
(149) |
(382) |
(4,927) |
(11,135) |
Net increase (decrease) |
(83) |
(65) |
$ (2,739) |
$ (2,167) |
Fidelity Value Strategies Fund |
|
|
|
|
Shares sold |
5,271 |
11,897 |
$ 214,648 |
$ 405,389 |
Reinvestment of distributions |
127 |
73 |
4,998 |
2,266 |
Shares redeemed |
(4,898) |
(7,881) |
(199,283) |
(279,142) |
Net increase (decrease) |
500 |
4,089 |
$ 20,363 |
$ 128,513 |
Fidelity Value Strategies Fund Class K |
|
|
|
|
Shares sold |
419 |
3,420 |
$ 17,074 |
$ 116,082 |
Reinvestment of distributions |
29 |
17 |
1,131 |
520 |
Shares redeemed |
(771) |
(2,727) |
(31,507) |
(102,509) |
Net increase (decrease) |
(323) |
710 |
$ (13,302) |
$ 14,093 |
Institutional Class |
|
|
|
|
Shares sold |
208 |
776 |
$ 8,101 |
$ 26,302 |
Reinvestment of distributions |
14 |
11 |
523 |
327 |
Shares redeemed |
(232) |
(1,082) |
(8,986) |
(35,829) |
Net increase (decrease) |
(10) |
(295) |
$ (362) |
$ (9,200) |
Semiannual Report
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research (U.K.) Inc.
Fidelity Management & Research
(Japan) Inc.
Fidelity Management & Research
(Hong Kong) Limited
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Brown Brothers Harriman & Co.
Boston, MA
(Fidelity Investment logo)(registered trademark)
SO-USAN-0714 1.786805.111
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 Advisor Series I'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 Advisor Series I'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 Advisor Series I
By: |
/s/Kenneth B. Robins |
|
Kenneth B. Robins |
|
President and Treasurer |
|
|
Date: |
July 29, 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: |
July 29, 2014 |
By: |
/s/Christine Reynolds |
|
Christine Reynolds |
|
Chief Financial Officer |
|
|
Date: |
July 29, 2014 |
Exhibit EX-99.CERT
I, Kenneth B. Robins, certify that:
1. I have reviewed this report on Form N-CSR of Fidelity Advisor Series I;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based upon such evaluation; and
d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and
b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
Date: July 29, 2014
/s/Kenneth B. Robins |
Kenneth B. Robins |
President and Treasurer |
I, Christine Reynolds, certify that:
1. I have reviewed this report on Form N-CSR of Fidelity Advisor Series I;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based upon such evaluation; and
d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and
b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
Date: July 29, 2014
/s/Christine Reynolds |
Christine Reynolds |
Chief Financial Officer |
Exhibit EX-99.906CERT
Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code)
In connection with the attached Report of Fidelity Advisor Series I (the "Trust") on Form N-CSR to be filed with the Securities and Exchange Commission (the "Report"), each of the undersigned officers of the Trust does hereby certify that, to the best of such officer's knowledge:
1. The Report fully complies with the requirements of 13(a) or 15(d) of the Securities Exchange Act of 1934; and
2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Trust as of, and for, the periods presented in the Report.
Dated: July 29, 2014
/s/Kenneth B. Robins |
Kenneth B. Robins |
President and Treasurer |
/s/Christine Reynolds |
Christine Reynolds |
Chief Financial Officer |
A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to the Trust and will be retained by the Trust and furnished to the Securities and Exchange Commission or its staff upon request.
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