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)
Marc Bryant, Secretary
245 Summer St.
Boston, Massachusetts 02210
(Name and address of agent for service)
Registrant's telephone number, including area code:
617-563-7000
Date of fiscal year end: | October 31 |
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Date of reporting period: | October 31, 2017 |
Item 1.
Reports to Stockholders
Fidelity Advisor® Floating Rate High Income Fund Class A, Class M (formerly Class T), Class C and Class I Annual Report October 31, 2017 |
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Contents
Board Approval of Investment Advisory Contracts and Management Fees |
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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. © 2017 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 SECs web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SECs Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a funds total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended October 31, 2017 | Past 1 year | Past 5 years | Past 10 years |
Class A (incl. 2.75% sales charge) | 1.53% | 2.56% | 3.32% |
Class M (incl. 2.75% sales charge) | 1.50% | 2.46% | 3.27% |
Class C (incl. contingent deferred sales charge) | 2.73% | 2.36% | 2.85% |
Class I | 4.64% | 3.38% | 3.87% |
Class C shares' contingent deferred sales charges included in the past one year, past five years and past ten years total return figures are 1%, 0% and 0%, respectively.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Floating Rate High Income Fund - Class A on October 31, 2007, and the current 2.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the S&P®/LSTA Leveraged Performing Loan Index performed over the same period.
Period Ending Values | ||
| $13,863 | Fidelity Advisor® Floating Rate High Income Fund - Class A |
| $16,128 | S&P®/LSTA Leveraged Performing Loan Index |
Management's Discussion of Fund Performance
Market Recap: Floating-rate bank loans gained 5.25% for the 12 months ending October 31, 2017, as measured by the S&P/LSTA® Leveraged Performing Loan Index. Following the U.S. presidential election, U.S. Treasury yields spiked and investor sentiment shifted, anticipating higher interest rates and rising inflation in 2017. Within this environment, bank loans rose 1.20% in December, in what turned out to be their strongest monthly performance for the reporting period. The asset class registered more-modest, coupon-driven gains from January through May amid intensified refinancing activity, declining Treasury yields and growing uncertainty about the Trump administrations policy agenda. Loans registered somewhat stronger performance in July, bolstered by favorable corporate earnings and improved flows into retail funds. Following a flattish result in August, the asset class trended higher through October 31, helped by stronger economic data and renewed demand amid higher interest rates. Gains were broad-based across industries, with oil & gas (+13%), industrial equipment (+9%) and nonferrous metals/minerals (+8%) leading the way. On the downside, retailers (-2%) was the weakest performer among major index groups. From a credit-quality perspective, lower-quality loans did best, reflecting continued demand for higher-yielding securities. Comments from Portfolio Manager Eric Mollenhauer: For the year, the fund's share classes (excluding sales charges, if applicable) posted gains of roughly 4% to 5%, trailing the benchmark S&P/LSTA® Leveraged Performing Loan Index. The funds conservative credit-quality positioning reflective of my moderate-risk, core strategy and a cash stake that was modestly above my 5% target dampened performance versus the benchmark. That said, I was pleased with the funds result during a period when lower-quality credits led the market by a substantial margin. Over the past 12 months, the fund was overweight the BBB and BB credit-quality tiers and underweight loans rated B and CCC. In terms of individual holdings, the biggest relative detractors were United Kingdom-based energy services firm Expro and untimely positioning in CCC-rated index component Ocean Rig, a provider of drill-ships to energy companies. On the plus side, security selection among loans rated BB and B, and among non-rated securities, aided relative results. The top individual relative contributors were overweightings in TNT Crane, which provides rental cranes for use in the refining and petrochemical industries, and for-profit education provider Laureate Education. By period end, I had reduced the fund's cash allocation to roughly 4% of the portfolio.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Top Five Holdings as of October 31, 2017
(by issuer, excluding cash equivalents) | % of fund's net assets | % of fund's net assets 6 months ago |
Caesars Resort Collection LLC | 2.5 | 0.0 |
Laureate Education, Inc. | 1.7 | 1.7 |
Albertson's LLC | 1.6 | 2.0 |
Charter Communication Operating LLC | 1.5 | 1.6 |
Caesars Growth Properties Holdings LLC | 1.4 | 1.5 |
8.7 |
Top Five Market Sectors as of October 31, 2017
% of fund's net assets | % of fund's net assets 6 months ago | |
Technology | 12.5 | 11.3 |
Gaming | 9.9 | 6.0 |
Telecommunications | 8.8 | 8.9 |
Services | 8.0 | 9.2 |
Healthcare | 7.6 | 8.2 |
Quality Diversification (% of fund's net assets)
As of October 31, 2017 | ||
BBB | 3.4% | |
BB | 36.0% | |
B | 41.8% | |
CCC,CC,C | 3.9% | |
Not Rated | 10.5% | |
Equities | 0.4% | |
Short-Term Investments and Net Other Assets | 4.0% |
As of April 30, 2017 | ||
BBB | 3.4% | |
BB | 37.1% | |
B | 41.0% | |
CCC,CC,C | 4.8% | |
Not Rated | 6.5% | |
Equities | 0.3% | |
Short-Term Investments and Net Other Assets | 6.9% |
We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes.
Asset Allocation (% of fund's net assets)
As of October 31, 2017* | ||
Bank Loan Obligations | 89.0% | |
Nonconvertible Bonds | 6.6% | |
Common Stocks | 0.4% | |
Short-Term Investments and Net Other Assets (Liabilities) | 4.0% |
* Foreign investments 9.7%
As of April 30, 2017* | ||
Bank Loan Obligations | 86.5% | |
Nonconvertible Bonds | 6.3% | |
Common Stocks | 0.3% | |
Short-Term Investments and Net Other Assets (Liabilities) | 6.9% |
* Foreign investments 10.0%
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Investments October 31, 2017
Showing Percentage of Net Assets
Bank Loan Obligations - 89.0%(a) | |||
Principal Amount (000s) | Value (000s) | ||
Aerospace - 1.0% | |||
DAE Aviation Holdings, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.750% 4.99% 7/7/22 (b)(c) | $6,218 | $6,301 | |
Standardaero Aviation Holdings In Tranche B, term loan 3 month U.S. LIBOR + 3.750% 7/7/22 (c)(d) | 10,105 | 10,193 | |
TransDigm, Inc.: | |||
Tranche F, term loan 3 month U.S. LIBOR + 3.000% 4.274% 6/9/23 (b)(c) | 29,625 | 29,740 | |
Tranche G, term loan 3 month U.S. LIBOR + 3.000% 4.2623% 8/22/24 (b)(c) | 63,840 | 64,129 | |
TOTAL AEROSPACE | 110,363 | ||
Air Transportation - 0.1% | |||
Hanjin International Corp. Tranche B, term loan 3 month U.S. LIBOR + 2.500% 3.8539% 10/18/20 (b)(c) | 7,500 | 7,528 | |
Transplace Holding, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.250% 5.4878% 10/5/24 (b)(c) | 4,500 | 4,533 | |
TOTAL AIR TRANSPORTATION | 12,061 | ||
Automotive & Auto Parts - 0.8% | |||
Caliber Holdings Corp.: | |||
Tranche 1LN, term loan 3 month U.S. LIBOR + 3.000% 4.2423% 2/1/24 (b)(c) | 9,844 | 9,922 | |
Tranche 2LN, term loan 3 month U.S. LIBOR + 7.250% 8.4923% 2/1/25 (b)(c) | 2,710 | 2,768 | |
Chrysler Group LLC term loan 3 month U.S. LIBOR + 2.000% 3.24% 12/31/18 (b)(c) | 7,147 | 7,164 | |
North American Lifting Holdings, Inc.: | |||
Tranche 1LN, term loan 3 month U.S. LIBOR + 4.500% 5.8328% 11/27/20 (b)(c) | 16,369 | 15,387 | |
Tranche 2LN, term loan 3 month U.S. LIBOR + 9.000% 10.3328% 11/27/21 (b)(c) | 24,370 | 20,715 | |
The Gates Corp. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 4.5828% 3/31/24 (b)(c) | 13,269 | 13,353 | |
UOS LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 5.500% 6.7423% 4/18/23 (b)(c) | 13,217 | 13,613 | |
TOTAL AUTOMOTIVE & AUTO PARTS | 82,922 | ||
Banks & Thrifts - 0.1% | |||
Recess Holdings, Inc. Tranche B, term loan: | |||
3 month U.S. LIBOR + 3.750% 1.875% 9/29/24 (b)(c)(e) | 1,598 | 1,608 | |
3 month U.S. LIBOR + 3.750% 5.2539% 9/29/24 (b)(c) | 11,827 | 11,901 | |
TOTAL BANKS & THRIFTS | 13,509 | ||
Broadcasting - 1.2% | |||
CBS Radio, Inc.: | |||
term loan 3 month U.S. LIBOR + 3.500% 4.7379% 10/17/23 (b)(c) | 18,861 | 18,975 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.750% 3/2/24 (c)(d) | 12,500 | 12,531 | |
Clear Channel Communications, Inc. Tranche D, term loan 3 month U.S. LIBOR + 6.750% 8.0828% 1/30/19 (b)(c) | 53,680 | 40,126 | |
Entercom Radio, LLC Tranche B, term loan 3 month U.S. LIBOR + 3.500% 4.7323% 11/1/23 (b)(c) | 5,725 | 5,734 | |
ION Media Networks, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4.25% 12/18/20 (b)(c) | 19,752 | 19,875 | |
Nielsen Finance LLC Tranche B 4LN, term loan 3 month U.S. LIBOR + 2.000% 3.2378% 10/4/23 (b)(c) | 11,880 | 11,916 | |
Raycom Media, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.750% 3.9879% 8/23/24 (b)(c) | 16,060 | 16,180 | |
TOTAL BROADCASTING | 125,337 | ||
Building Materials - 0.6% | |||
Beacon Roofing Supply, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.250% 1/2/25 (c)(d) | 10,000 | 10,063 | |
HD Supply, Inc. Tranche B 4LN, term loan 3 month U.S. LIBOR + 2.500% 3.8328% 10/17/23 (b)(c) | 8,188 | 8,275 | |
Jeld-Wen, Inc. Tranche B 3LN, term loan 3 month U.S. LIBOR + 3.000% 4.3328% 7/1/22 (b)(c) | 14,565 | 14,674 | |
Traverse Midstream Partners Ll Tranche B, term loan 3 month U.S. LIBOR + 4.000% 5.33% 9/27/24 (b)(c) | 27,290 | 27,638 | |
TOTAL BUILDING MATERIALS | 60,650 | ||
Cable/Satellite TV - 2.5% | |||
Altice U.S. Finance SA Tranche B, term loan 3 month U.S. LIBOR + 2.250% 3.4923% 7/28/25 (b)(c) | 30,348 | 30,297 | |
Cable One, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.250% 3.57% 5/1/24 (b)(c) | 7,950 | 7,980 | |
Charter Communication Operating LLC: | |||
term loan: | |||
3 month U.S. LIBOR + 2.000% 3.25% 7/1/20 (b)(c) | 37,288 | 37,453 | |
3 month U.S. LIBOR + 2.000% 3.25% 1/3/21 (b)(c) | 74,809 | 75,100 | |
Tranche I, term loan 3 month U.S. LIBOR + 2.250% 3.5% 1/15/24(b)(c) | 55,507 | 55,903 | |
MCC Iowa LLC Tranche M, term loan 3 month U.S. LIBOR + 2.000% 3.21% 1/26/25 (b)(c) | 6,400 | 6,419 | |
Virgin Media Bristol LLC Tranche 1LN, term loan 3 month U.S. LIBOR + 2.750% 3.9889% 1/31/25 (b)(c) | 35,000 | 35,131 | |
WideOpenWest Finance LLC Tranche B, term loan 3 month U.S. LIBOR + 3.250% 4.4867% 8/19/23 (b)(c) | 24,500 | 24,531 | |
TOTAL CABLE/SATELLITE TV | 272,814 | ||
Capital Goods - 0.6% | |||
Doosan Bobcat Tranche B, term loan 3 month U.S. LIBOR + 2.750% 4.0828% 5/18/24 (b)(c) | 13,562 | 13,653 | |
Gardner Denver, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.750% 4.0828% 7/30/24 (b)(c) | 8,050 | 8,094 | |
Onex Wizard U.S. Acquisition, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4.2423% 3/13/22 (b)(c) | 30,148 | 30,349 | |
Zodiac Pool Solutions LLC Tranche B, term loan 3 month U.S. LIBOR + 4.000% 5.3328% 12/20/23 (b)(c) | 12,903 | 13,040 | |
TOTAL CAPITAL GOODS | 65,136 | ||
Chemicals - 2.1% | |||
Ashland LLC Tranche B, term loan 3 month U.S. LIBOR + 2.000% 3.2925% 5/17/24 (b)(c) | 15,461 | 15,554 | |
Ineos Styrolution U.S. Holding LLC Tranche B, term loan 3 month U.S. LIBOR + 2.750% 4.0828% 3/30/24 (b)(c) | 10,188 | 10,197 | |
Kraton Polymers LLC Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4.2423% 1/6/22 (b)(c) | 10,962 | 11,111 | |
MacDermid, Inc.: | |||
Tranche B 6LN, term loan 3 month U.S. LIBOR + 3.000% 4.2423% 6/7/23 (b)(c) | 25,448 | 25,591 | |
Tranche B 7LN, term loan 3 month U.S. LIBOR + 2.500% 3.7423% 6/7/20 (b)(c) | 13,008 | 13,108 | |
Methanol Holdings (TRINIDAD) Ltd. Tranche B, term loan 3 month U.S. LIBOR + 3.500% 4.735% 6/30/22 (b)(c) | 20,217 | 20,368 | |
Oxea Corp. Tranche B, term loan 3 month U.S. LIBOR + 3.500% 4.875% 10/12/24 (b)(c) | 12,750 | 12,770 | |
The Chemours Co. LLC Tranche B, term loan 3 month U.S. LIBOR + 2.500% 3.75% 5/12/22 (b)(c) | 17,878 | 18,020 | |
Trinseo Materials Operating SCA/Trinseo Materials Finance, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.500% 3.7423% 9/6/24 (b)(c) | 15,250 | 15,364 | |
Tronox Blocked Borrower LLC Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4.3231% 9/22/24 (b)(c) | 12,244 | 12,341 | |
Tronox Finance LLC Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4.3283% 9/22/24 (b)(c) | 28,256 | 28,480 | |
U.S. Coatings Acquisition, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.000% 3.3328% 6/1/24 (b)(c) | 17,486 | 17,574 | |
Univar, Inc. term loan 3 month U.S. LIBOR + 2.750% 3.985% 7/1/22 (b)(c) | 13,863 | 13,933 | |
Venator Materials LLC Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4.3801% 8/8/24 (b)(c) | 9,825 | 9,936 | |
TOTAL CHEMICALS | 224,347 | ||
Consumer Products - 1.0% | |||
CSM Bakery Supplies Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.000% 5.34% 7/3/20 (b)(c) | 9,781 | 9,566 | |
Hercules Achievement, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.500% 4.7378% 12/11/21 (b)(c) | 5,969 | 6,022 | |
HLF Financing U.S. LLC Tranche B, term loan 3 month U.S. LIBOR + 5.500% 6.7423% 2/15/23 (b)(c) | 20,875 | 21,162 | |
Prestige Brands, Inc. term loan 3 month U.S. LIBOR + 2.750% 3.985% 1/26/24 (b)(c) | 14,309 | 14,387 | |
Weight Watchers International, Inc. Tranche B 2LN, term loan 3 month U.S. LIBOR + 3.250% 4.5548% 4/2/20 (b)(c) | 59,786 | 59,173 | |
TOTAL CONSUMER PRODUCTS | 110,310 | ||
Consumer Services - 0.1% | |||
Optiv Security, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 4.5625% 2/1/24 (b)(c) | 9,426 | 8,876 | |
Containers - 1.6% | |||
Berry Global, Inc.: | |||
Tranche B, term loan 3 month U.S. LIBOR + 2.250% 3.4878% 1/19/24 (b)(c) | 9,950 | 9,980 | |
Tranche K, term loan 3 month U.S. LIBOR + 2.250% 3.4878% 2/8/20 (b)(c) | 50,196 | 50,435 | |
Tranche L, term loan 3 month U.S. LIBOR + 2.250% 3.4878% 1/6/21 (b)(c) | 8,592 | 8,631 | |
Tranche M, term loan 3 month U.S. LIBOR + 2.250% 3.4906% 10/1/22 (b)(c) | 19,591 | 19,676 | |
BWAY Holding Co. Tranche B, term loan 3 month U.S. LIBOR + 3.250% 4.5984% 4/3/24 (b)(c) | 8,229 | 8,281 | |
Charter Nex U.S., Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 4.4923% 5/16/24 (b)(c) | 9,661 | 9,717 | |
Consolidated Container Co. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.500% 4.735% 5/22/24 (b)(c) | 17,905 | 18,035 | |
Hostess Brands LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.500% 3.7423% 8/3/22 (b)(c) | 11,939 | 11,999 | |
Plastipak Packaging, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.750% 3.99% 10/14/24 (b)(c) | 6,360 | 6,405 | |
Reynolds Group Holdings, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.750% 3.985% 2/5/23 (b)(c) | 28,870 | 29,033 | |
TOTAL CONTAINERS | 172,192 | ||
Diversified Financial Services - 3.8% | |||
AlixPartners LLP Tranche B, term loan 3 month U.S. LIBOR + 2.750% 4.0828% 4/4/24 (b)(c) | 26,109 | 26,223 | |
ASP Chromaflo Intermediate Holdings, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.000% 5.2423% 11/18/23 (b)(c) | 11,880 | 11,932 | |
Bcp Renaissance Parent LLC Tranche B, term loan 3 month U.S. LIBOR + 4.000% 5.3801% 10/31/24 (b)(c) | 26,520 | 26,810 | |
Cypress Intermediate Holdings, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.000% 4.24% 4/27/24 (b)(c) | 25,616 | 25,712 | |
Delos Finance SARL Tranche B, term loan 3 month U.S. LIBOR + 2.000% 3.3328% 10/6/23 (b)(c) | 33,095 | 33,328 | |
Duff & Phelps Corp. Tranche B, term loan 3 month U.S. LIBOR + 3.250% 4.6067% 10/5/24 (b)(c) | 9,130 | 9,216 | |
Emerald Exposit Holding, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4.3328% 5/22/24 (b)(c) | 11,267 | 11,394 | |
Finco I LLC Tranche B, term loan 3 month U.S. LIBOR + 2.750% 2.75% 7/14/22 (b)(c) | 20,250 | 20,539 | |
Fly Funding II SARL Tranche B, term loan 3 month U.S. LIBOR + 2.250% 3.56% 2/9/23 (b)(c) | 22,076 | 22,140 | |
Flying Fortress Holdings, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.000% 3.3328% 10/30/22 (b)(c) | 67,865 | 68,402 | |
Focus Financial Partners LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 4.5735% 7/3/24 (b)(c) | 10,835 | 10,957 | |
HarbourVest Partners LLC Tranche B, term loan 3 month U.S. LIBOR + 2.500% 3.8586% 2/4/21 (b)(c) | 9,575 | 9,567 | |
IBC Capital U.S. LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.750% 5.0672% 9/11/21 (b)(c) | 20,266 | 20,266 | |
Kingpin Intermediate Holdings LLC Tranche B, term loan 3 month U.S. LIBOR + 4.250% 5.57% 7/3/24 (b)(c) | 7,481 | 7,533 | |
Nab Holdings LLC Tranche B, term loan 3 month U.S. LIBOR + 3.500% 4.8328% 6/30/24 (b)(c) | 13,746 | 13,843 | |
Peak 10 Holding Corp. Tranche B, term loan 3 month U.S. LIBOR + 3.500% 4.8106% 8/1/24 (b)(c) | 8,500 | 8,537 | |
Quest Software U.S. Holdings, Inc. Tranche B, term loan 3 month U.S. LIBOR + 6.000% 7.3801% 10/31/22 (b)(c) | 20,788 | 20,986 | |
TransUnion LLC Tranche B, term loan 3 month U.S. LIBOR + 2.000% 3.2423% 4/9/23 (b)(c) | 37,073 | 37,177 | |
UFC Holdings LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 4.49% 8/18/23 (b)(c) | 19,181 | 19,332 | |
TOTAL DIVERSIFIED FINANCIAL SERVICES | 403,894 | ||
Energy - 3.4% | |||
Alon U.S.A. Partners LP term loan 3 month U.S. LIBOR + 8.000% 9.25% 11/26/18 (b)(c) | 8,467 | 8,530 | |
Arctic LNG Carriers Ltd. Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.500% 5.7423% 5/18/23 (b)(c) | 19,950 | 20,125 | |
Bcp Raptor LLC Tranche B, term loan 3 month U.S. LIBOR + 4.250% 5.5222% 6/22/24 (b)(c) | 34,339 | 34,693 | |
California Resources Corp. Tranche 1LN, term loan 3 month U.S. LIBOR + 10.375% 11.6117% 12/31/21 (b)(c) | 41,720 | 44,675 | |
Chesapeake Energy Corp. Tranche 1LN, term loan 3 month U.S. LIBOR + 7.500% 8.8144% 8/23/21 (b)(c) | 32,415 | 34,738 | |
Chief Exploration & Development, LLC. Tranche 2LN, term loan 3 month U.S. LIBOR + 6.500% 7.9586% 5/16/21 (b)(c) | 3,000 | 2,930 | |
Citgo Holding, Inc. Tranche B, term loan 3 month U.S. LIBOR + 8.500% 9.835% 5/12/18 (b)(c) | 13,508 | 13,795 | |
Crestwood Holdings Partners LLC Tranche B, term loan 3 month U.S. LIBOR + 8.000% 9.2367% 6/19/19 (b)(c) | 17,655 | 17,649 | |
Empire Generating Co. LLC: | |||
Tranche B, term loan 3 month U.S. LIBOR + 4.250% 5.57% 3/14/21 (b)(c) | 8,549 | 7,737 | |
Tranche C, term loan 3 month U.S. LIBOR + 4.250% 5.57% 3/14/21 (b)(c) | 845 | 765 | |
Energy Transfer Equity LP Tranche B, term loan 3 month U.S. LIBOR + 2.000% 3.2367% 2/2/24 (b)(c) | 8,542 | 8,524 | |
Expro Finservices SARL Tranche B, term loan 3 month U.S. LIBOR + 4.750% 6.0661% 9/2/21 (b)(c) | 49,675 | 31,709 | |
Foresight Energy LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 5.750% 7.0828% 3/28/22 (b)(c) | 15,174 | 14,286 | |
FTS International, Inc. Tranche B, term loan 3 month U.S. LIBOR + 4.750% 5.9923% 4/16/21 (b)(c) | 18,875 | 18,394 | |
Gavilan Resources LLC Tranche 2LN, term loan 3 month U.S. LIBOR + 6.000% 7.2378% 3/1/24 (b)(c) | 17,995 | 17,410 | |
Gulf Finance LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 5.250% 6.59% 8/25/23 (b)(c) | 45,352 | 43,793 | |
MRP Generation Holdings LLC Tranche B, term loan 3 month U.S. LIBOR + 7.000% 8.3328% 10/18/22 (b)(c) | 5,752 | 5,400 | |
Pacific Drilling SA Tranche B, term loan 3 month U.S. LIBOR + 3.500% 4.875% 6/3/18 (b)(c) | 13,667 | 4,456 | |
Seadrill Operating LP Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4.3328% 2/21/21 (b)(c) | 43,172 | 32,749 | |
TOTAL ENERGY | 362,358 | ||
Entertainment/Film - 0.5% | |||
AMC Entertainment Holdings, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.250% 3.4889% 12/15/23 (b)(c) | 7,632 | 7,617 | |
AMC Entertainment, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.250% 3.4889% 12/15/22 (b)(c) | 4,949 | 4,948 | |
CDS U.S. Intermediate Holdings, Inc.: | |||
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.750% 5.0828% 7/8/22 (b)(c) | 14,330 | 14,432 | |
Tranche B 2LN, term loan 3 month U.S. LIBOR + 8.250% 9.5828% 7/8/23 (b)(c) | 5,305 | 5,285 | |
Digital Cinema Implementation Partners,LLC Tranche B, term loan 3 month U.S. LIBOR + 2.500% 3.8264% 5/17/21 (b)(c) | 8,193 | 8,254 | |
Lions Gate Entertainment Corp. term loan 3 month U.S. LIBOR + 3.000% 4.2417% 12/8/23 (b)(c) | 10,638 | 10,711 | |
TOTAL ENTERTAINMENT/FILM | 51,247 | ||
Environmental - 0.6% | |||
Clean Harbors, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.000% 3.235% 6/30/24 (b)(c) | 8,529 | 8,577 | |
Hd Supply Waterworks Ltd. Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4.455% 8/1/24 (b)(c) | 11,500 | 11,572 | |
The Brickman Group, Ltd. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.000% 4.3157% 12/18/20 (b)(c) | 18,154 | 18,260 | |
Wrangler Buyer Corp. Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4.2344% 9/28/24 (b)(c) | 11,070 | 11,163 | |
WTG Holdings III Corp. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.750% 5.0828% 1/15/21 (b)(c) | 13,706 | 13,809 | |
TOTAL ENVIRONMENTAL | 63,381 | ||
Food & Drug Retail - 2.8% | |||
Albertson's LLC Tranche B, term loan: | |||
3 month U.S. LIBOR + 2.750% 3.9923% 8/25/21 (b)(c) | 165,784 | 160,565 | |
3 month U.S. LIBOR + 3.000% 4.3172% 6/22/23 (b)(c) | 10,583 | 10,243 | |
GOBP Holdings, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.500% 4.8328% 10/21/21 (b)(c) | 3,940 | 3,922 | |
JBS U.S.A. Lux SA Tranche B, term loan 3 month U.S. LIBOR + 2.500% 3.7389% 10/30/22 (b)(c) | 7,876 | 7,703 | |
Lannett Co., Inc. Tranche B, term loan 3 month U.S. LIBOR + 5.375% 6.6173% 11/25/22 (b)(c) | 26,930 | 26,795 | |
Pizza Hut Holdings LLC Tranche B, term loan 3 month U.S. LIBOR + 2.000% 3.2367% 6/16/23 (b)(c) | 24,751 | 24,899 | |
RPI Finance Trust Tranche B 6LN, term loan 3 month U.S. LIBOR + 2.000% 3.3328% 3/27/23 (b)(c) | 48,373 | 48,549 | |
Smart & Final, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.500% 4.8328% 11/15/22 (b)(c) | 19,845 | 19,138 | |
TOTAL FOOD & DRUG RETAIL | 301,814 | ||
Food/Beverage/Tobacco - 1.1% | |||
Arctic Glacier Group Holdings, Inc. Tranche B, term loan 3 month U.S. LIBOR + 4.250% 5.485% 3/20/24 (b)(c) | 6,313 | 6,376 | |
Chobani LLC Tranche B, term loan 3 month U.S. LIBOR + 3.500% 4.7378% 10/7/23 (b)(c) | 22,502 | 22,764 | |
Pinnacle Foods Finance LLC Tranche B, term loan 3 month U.S. LIBOR + 2.000% 3.2322% 2/3/24 (b)(c) | 9,925 | 9,975 | |
Post Holdings, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.250% 3.4923% 5/24/24 (b)(c) | 51,725 | 51,975 | |
Shearer's Foods, Inc.: | |||
Tranche 2LN, term loan 3 month U.S. LIBOR + 6.750% 8.0828% 6/30/22 (b)(c) | 2,000 | 1,885 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.938% 5.2703% 6/30/21 (b)(c) | 1,000 | 1,000 | |
U.S. Foods, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.750% 3.985% 6/27/23 (b)(c) | 26,909 | 27,117 | |
TOTAL FOOD/BEVERAGE/TOBACCO | 121,092 | ||
Gaming - 9.8% | |||
AP Gaming I LLC term loan 3 month U.S. LIBOR + 5.500% 6.7423% 2/15/24 (b)(c) | 9,466 | 9,608 | |
Aristocrat Technologies, Inc. Tranche B 2LN, term loan 3 month U.S. LIBOR + 2.000% 3.3626% 10/20/21 (b)(c) | 25,707 | 25,857 | |
Boyd Gaming Corp. Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.500% 3.7017% 9/15/23 (b)(c) | 23,384 | 23,516 | |
Caesars Entertainment Resort Properties LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.500% 4.7423% 10/11/20 (b)(c) | 112,120 | 112,180 | |
Caesars Growth Properties Holdings LLC Tranche 1LN, term loan 3 month U.S. LIBOR + 3.000% 4.2423% 5/8/21 (b)(c) | 149,202 | 149,233 | |
Caesars Resort Collection LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.750% 9/28/24 (c)(d) | 270,000 | 271,636 | |
CityCenter Holdings LLC Tranche B, term loan 3 month U.S. LIBOR + 2.500% 3.7423% 4/18/24 (b)(c) | 9,975 | 10,016 | |
Cyan Blue Holdco 3 Ltd. Tranche B, term loan 3 month U.S. LIBOR + 3.500% 4.8328% 8/25/24 (b)(c) | 12,828 | 12,881 | |
Eldorado Resorts, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.250% 3.5% 4/17/24 (b)(c) | 25,133 | 25,164 | |
Golden Entertainment, Inc. Tranche B, term loan: | |||
3 month U.S. LIBOR + 3.000% 4.24% 10/20/24 (b)(c) | 40,000 | 40,017 | |
3 month U.S. LIBOR + 7.000% 10/20/25 (c)(d) | 7,500 | 7,556 | |
Golden Nugget, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 4.5264% 10/4/23 (b)(c) | 120,705 | 121,882 | |
Las Vegas Sands LLC Tranche B, term loan 3 month U.S. LIBOR + 2.000% 3.235% 3/29/24 (b)(c) | 35,785 | 35,984 | |
MGM Mirage, Inc. Tranche A, term loan 3 month U.S. LIBOR + 2.250% 3.4923% 4/25/21 (b)(c) | 13,865 | 13,871 | |
Mohegan Tribal Gaming Authority Tranche B, term loan 3 month U.S. LIBOR + 4.000% 5.2423% 10/14/23 (b)(c) | 10,603 | 10,717 | |
Penn National Gaming, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.500% 3.7423% 1/19/24 (b)(c) | 5,234 | 5,266 | |
Scientific Games Corp. Tranche B, term loan 3 month U.S. LIBOR + 3.250% 4.5159% 8/14/24 (b)(c) | 75,545 | 76,384 | |
Seminole Tribe Florida Tranche B, term loan 3 month U.S. LIBOR + 2.000% 3.2378% 7/6/24 (b)(c) | 24,000 | 24,101 | |
Station Casinos LLC Tranche B, term loan 3 month U.S. LIBOR + 2.500% 3.74% 6/8/23 (b)(c) | 54,741 | 54,910 | |
Wynn America LLC Tranche A 1LN, term loan 3 month U.S. LIBOR + 1.750% 3.1174% 12/31/21 (b)(c) | 13,235 | 13,202 | |
Yonkers Racing Corp. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 4.5% 5/31/24 (b)(c) | 6,499 | 6,512 | |
TOTAL GAMING | 1,050,493 | ||
Healthcare - 6.6% | |||
Albany Molecular Research, Inc. Tranche B, term loan: | |||
3 month U.S. LIBOR + 3.250% 4.5828% 8/30/24 (b)(c) | 8,640 | 8,699 | |
3 month U.S. LIBOR + 7.000% 8.3328% 8/30/25 (b)(c) | 4,545 | 4,619 | |
Community Health Systems, Inc.: | |||
Tranche G, term loan 3 month U.S. LIBOR + 2.750% 4.0669% 12/31/19 (b)(c) | 43,633 | 42,585 | |
Tranche H, term loan 3 month U.S. LIBOR + 3.000% 4.3169% 1/27/21 (b)(c) | 72,943 | 70,498 | |
DaVita HealthCare Partners, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.750% 3.9923% 6/24/21 (b)(c) | 46,622 | 46,971 | |
Envision Healthcare Corp. Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4.25% 12/1/23 (b)(c) | 37,944 | 38,086 | |
Ghx Ultimate Parent Corp. Tranche B, term loan 3 month U.S. LIBOR + 3.250% 4.5828% 6/30/24 (b)(c) | 9,830 | 9,904 | |
HCA Holdings, Inc.: | |||
Tranche B 8LN, term loan 3 month U.S. LIBOR + 2.250% 3.4923% 2/15/24 (b)(c) | 19,850 | 19,974 | |
Tranche B 9LN, term loan 3 month U.S. LIBOR + 2.000% 3.2423% 3/18/23 (b)(c) | 59,781 | 60,046 | |
Innoviva, Inc. Tranche B, term loan 3 month U.S. LIBOR + 4.500% 5.8167% 8/18/22 (b)(c) | 19,840 | 19,989 | |
Kindred Healthcare, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.500% 4.875% 4/9/21 (b)(c) | 1,924 | 1,929 | |
MPH Acquisition Holdings LLC Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4.3328% 6/7/23 (b)(c) | 18,184 | 18,353 | |
Onex Schumacher Finance LP Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.000% 5.2423% 7/31/22 (b)(c) | 3,447 | 3,440 | |
Ortho-Clinical Diagnostics, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.750% 5.0828% 6/30/21 (b)(c) | 86,256 | 86,652 | |
PAREXEL International Corp. Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4.2423% 8/11/24 (b)(c) | 40,750 | 41,114 | |
Press Ganey Holdings, Inc.: | |||
Tranche 2LN, term loan 3 month U.S. LIBOR + 7.250% 8.485% 10/21/24 (b)(c) | 3,367 | 3,409 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.000% 4.2423% 10/21/23 (b)(c) | 15,384 | 15,499 | |
Project Ruby Ultimate Parent Corp. Tranche B, term loan 3 month U.S. LIBOR + 3.750% 4.9923% 2/9/24 (b)(c) | 3,977 | 3,995 | |
Select Medical Corp. Tranche B, term loan 3 month U.S. LIBOR + 3.500% 4.8502% 3/6/24 (b)(c) | 9,950 | 10,062 | |
U.S. Anesthesia Partners, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.250% 4.485% 6/23/24 (b)(c) | 7,481 | 7,491 | |
U.S. Renal Care, Inc.: | |||
Tranche 2LN, term loan 3 month U.S. LIBOR + 8.000% 9.3328% 12/31/23 (b)(c) | 5,000 | 4,850 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.250% 5.5828% 12/31/22 (b)(c) | 65,476 | 63,196 | |
Valeant Pharmaceuticals International, Inc. Tranche B, term loan 3 month U.S. LIBOR + 4.750% 5.99% 4/1/22 (b)(c) | 99,820 | 102,004 | |
Vizient, Inc. Tranche B 3LN, term loan 3 month U.S. LIBOR + 3.500% 4.735% 2/11/23 (b)(c) | 25,807 | 25,962 | |
TOTAL HEALTHCARE | 709,327 | ||
Homebuilders/Real Estate - 1.5% | |||
Americold Realty Operating Partnership LP Tranche B, term loan 3 month U.S. LIBOR + 3.750% 4.9923% 12/1/22 (b)(c) | 17,070 | 17,262 | |
DTZ U.S. Borrower LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 4.5864% 11/4/21 (b)(c) | 26,902 | 27,049 | |
Lightstone Holdco LLC: | |||
Tranche B, term loan 3 month U.S. LIBOR + 4.500% 5.7423% 1/30/24 (b)(c) | 17,070 | 17,129 | |
Tranche C, term loan 3 month U.S. LIBOR + 4.500% 5.7423% 1/30/24 (b)(c) | 1,064 | 1,067 | |
MGM Growth Properties Operating Partner LP Tranche B, term loan 3 month U.S. LIBOR + 2.250% 3.4923% 4/25/23 (b)(c) | 39,843 | 40,049 | |
Realogy Group LLC term loan 3 month U.S. LIBOR + 2.250% 3.4917% 7/20/22 (b)(c) | 42,530 | 42,769 | |
Uniti Group, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4.2423% 10/24/22 (b)(c) | 19,552 | 18,758 | |
TOTAL HOMEBUILDERS/REAL ESTATE | 164,083 | ||
Hotels - 1.9% | |||
ESH Hospitality, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.500% 3.7423% 8/30/23 (b)(c) | 16,830 | 16,926 | |
Four Seasons Holdings, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.500% 3.735% 11/30/23 (b)(c) | 58,061 | 58,446 | |
Hilton Worldwide Finance LLC Tranche B 2LN, term loan 3 month U.S. LIBOR + 2.000% 3.2379% 10/25/23 (b)(c) | 70,883 | 71,326 | |
La Quinta Intermediate Holdings LLC Tranche B LN, term loan 3 month U.S. LIBOR + 2.750% 4.1092% 4/14/21 (b)(c) | 19,250 | 19,329 | |
Playa Resorts Holding BV Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4.3699% 4/27/24 (b)(c) | 29,845 | 29,888 | |
Ryman Hospitality Properties, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.250% 3.56% 5/11/24 (b)(c) | 9,950 | 10,018 | |
TOTAL HOTELS | 205,933 | ||
Insurance - 2.7% | |||
Acrisure LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 5.000% 6.2722% 11/22/23 (b)(c) | 41,317 | 41,472 | |
Alliant Holdings Intermediate LLC Tranche B, term loan 3 month U.S. LIBOR + 3.250% 4.4896% 8/14/22 (b)(c) | 27,229 | 27,411 | |
AmWINS Group, Inc.: | |||
Tranche 2LN, term loan 3 month U.S. LIBOR + 6.750% 7.985% 1/25/25 (b)(c) | 1,925 | 1,959 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.750% 3.985% 1/25/24 (b)(c) | 13,895 | 13,945 | |
Asurion LLC: | |||
Tranche B 5LN, term loan 3 month U.S. LIBOR + 3.000% 4.2423% 11/3/23 (b)(c) | 48,570 | 48,965 | |
Tranche B, term loan: | |||
3 month U.S. LIBOR + 2.750% 3.9923% 8/4/22 (b)(c) | 41,118 | 41,420 | |
3 month U.S. LIBOR + 6.000% 7.235% 8/4/25 (b)(c) | 30,800 | 31,782 | |
HUB International Ltd. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.000% 4.3117% 10/2/20 (b)(c) | 33,538 | 33,787 | |
USI, Inc. Tranche B, term loan: | |||
3 month U.S. LIBOR + 3.000% 5/16/24 (c)(d) | 7,000 | 6,991 | |
3 month U.S. LIBOR + 3.000% 4.3142% 5/16/24 (b)(c) | 32,245 | 32,312 | |
VF Holdings Corp. term loan 3 month U.S. LIBOR + 3.250% 4.4923% 6/30/23 (b)(c) | 14,850 | 14,943 | |
TOTAL INSURANCE | 294,987 | ||
Leisure - 2.1% | |||
24 Hour Fitness Worldwide, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.750% 5.085% 5/30/21 (b)(c) | 23,323 | 23,323 | |
Delta 2 SARL Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4.2423% 2/1/24 (b)(c) | 73,480 | 74,015 | |
Equinox Holdings, Inc.: | |||
Tranche 2LN, term loan 3 month U.S. LIBOR + 7.000% 8.2423% 9/8/24 (b)(c) | 7,325 | 7,453 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 4.4923% 3/8/24 (b)(c) | 19,895 | 20,038 | |
Fitness International LLC Tranche B, term loan 3 month U.S. LIBOR + 4.250% 4.735% 7/1/20 (b)(c) | 8,253 | 8,369 | |
Hayward Industries, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.500% 4.7423% 8/4/24 (b)(c) | 11,070 | 11,162 | |
Intrawest Resorts Holdings, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 4.4923% 7/31/24 (b)(c) | 28,735 | 29,022 | |
LTF Merger Sub, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4.3169% 6/10/22 (b)(c) | 31,607 | 31,634 | |
SeaWorld Parks & Entertainment, Inc. Tranche B 5LN, term loan 3 month U.S. LIBOR + 3.000% 4.3328% 3/31/24 (b)(c) | 13,482 | 13,229 | |
SMG Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.500% 4.7423% 2/27/20 (b)(c) | 1,690 | 1,691 | |
TOTAL LEISURE | 219,936 | ||
Metals/Mining - 0.7% | |||
American Rock Salt Co. LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.750% 4.9923% 5/20/21 (b)(c) | 8,603 | 8,585 | |
Murray Energy Corp. Tranche B 2LN, term loan 3 month U.S. LIBOR + 7.250% 8.5828% 4/16/20 (b)(c) | 75,484 | 67,100 | |
Walter Energy, Inc. Tranche B, term loan 3 month U.S. LIBOR + 4.800% 0% 4/1/18 (c)(f)(g) | 32,780 | 0 | |
TOTAL METALS/MINING | 75,685 | ||
Paper - 0.5% | |||
Caraustar Industries, Inc. Tranche B, term loan 3 month U.S. LIBOR + 5.500% 6.8328% 3/14/22 (b)(c) | 27,268 | 27,461 | |
Flex Acquisition Co., Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.000% 4.335% 12/29/23 (b)(c) | 30,716 | 30,922 | |
TOTAL PAPER | 58,383 | ||
Publishing/Printing - 2.9% | |||
Cengage Learning, Inc. Tranche B, term loan 3 month U.S. LIBOR + 4.250% 5.485% 6/7/23 (b)(c) | 55,563 | 51,969 | |
Getty Images, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.500% 4.8328% 10/18/19 (b)(c) | 44,319 | 38,630 | |
Harland Clarke Holdings Corp.: | |||
Tranche B 5LN, term loan 3 month U.S. LIBOR + 6.000% 7.3328% 12/31/21 (b)(c) | 12,331 | 12,327 | |
Tranche B 6LN, term loan 3 month U.S. LIBOR + 5.500% 6.8328% 2/9/22 (b)(c) | 21,282 | 21,279 | |
Tranche B 7LN, term loan 3 month U.S. LIBOR + 4.750% 11/3/23 (c)(d) | 33,868 | 33,980 | |
Houghton Mifflin Harcourt Publishing, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4.2423% 5/29/21 (b)(c) | 34,146 | 32,502 | |
McGraw-Hill Global Education Holdings, LLC term loan 3 month U.S. LIBOR + 4.000% 5.2423% 5/4/22 (b)(c) | 54,196 | 54,049 | |
Merrill Communications LLC Tranche B, term loan 3 month U.S. LIBOR + 5.250% 6.6301% 6/1/22 (b)(c) | 15,502 | 15,657 | |
Multi-Color Corp. Tranche B, term loan 3 month U.S. LIBOR + 2.250% 9/20/24 (c)(d) | 9,965 | 10,027 | |
Proquest LLC Tranche B, term loan 3 month U.S. LIBOR + 3.750% 4.9923% 10/24/21 (b)(c) | 6,858 | 6,935 | |
Springer Science+Business Media Deutschland GmbH: | |||
Tranche B 13LN, term loan 3 month U.S. LIBOR + 3.500% 8/15/22 (c)(d) | 3,000 | 3,008 | |
Tranche B 9LN, term loan 3 month U.S. LIBOR + 3.500% 4.7423% 8/14/20 (b)(c) | 26,436 | 26,529 | |
TOTAL PUBLISHING/PRINTING | 306,892 | ||
Restaurants - 0.9% | |||
Burger King Worldwide, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.250% 3.5276% 2/17/24 (b)(c) | 45,319 | 45,364 | |
CEC Entertainment, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4.2423% 2/14/21 (b)(c) | 31,653 | 31,516 | |
Red Lobster Hospitality LLC Tranche B, term loan 3 month U.S. LIBOR + 5.250% 6.4917% 7/28/21 (b)(c) | 18,115 | 18,387 | |
TOTAL RESTAURANTS | 95,267 | ||
Services - 7.7% | |||
Abacus Innovations Corp. Tranche B, term loan 3 month U.S. LIBOR + 2.000% 3.25% 8/16/23 (b)(c) | 13,842 | 13,932 | |
Abg Intermediate Holdings 2 LLC Tranche B, term loan 3 month U.S. LIBOR + 3.500% 4.8328% 9/29/24 (b)(c) | 7,565 | 7,641 | |
Acosta, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.250% 4.4923% 9/26/21 (b)(c) | 15,636 | 13,760 | |
Almonde, Inc.: | |||
Tranche 2LN, term loan 3 month U.S. LIBOR + 7.250% 8.5669% 6/13/25 (b)(c) | 14,150 | 14,012 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.500% 4.8169% 6/13/24 (b)(c) | 54,090 | 53,871 | |
Ancestry.Com Operations, Inc.: | |||
Tranche 2LN, term loan 3 month U.S. LIBOR + 8.250% 9.49% 10/19/24 (b)(c) | 4,105 | 4,197 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 4.49% 10/19/23 (b)(c) | 32,175 | 32,510 | |
Aramark Services, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.000% 3.235% 3/28/24 (b)(c) | 32,243 | 32,344 | |
Avatar Purchaser, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.500% 9/7/24 (c)(d) | 7,000 | 7,009 | |
Brand Energy & Infrastructure Services, Inc. Tranche B, term loan 3 month U.S. LIBOR + 4.250% 5.6149% 6/21/24 (b)(c) | 28,678 | 28,853 | |
Bright Horizons Family Solutions Tranche B, term loan 3 month U.S. LIBOR + 2.250% 3.485% 11/7/23 (b)(c) | 9,863 | 9,917 | |
Cactus Wellhead LLC Tranche B, term loan 3 month U.S. LIBOR + 6.000% 7.3169% 7/31/20 (b)(c) | 15,337 | 15,050 | |
Coinmach Service Corp. Tranche B, term loan 3 month U.S. LIBOR + 3.750% 4.9879% 11/14/22 (b)(c) | 42,388 | 42,679 | |
Creative Artists Agency LLC Tranche B, term loan 3 month U.S. LIBOR + 3.500% 4.7389% 2/15/24 (b)(c) | 5,601 | 5,657 | |
KAR Auction Services, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.500% 3.875% 3/9/23 (b)(c) | 12,566 | 12,650 | |
Karman Buyer Corp. Tranche 2LN, term loan 3 month U.S. LIBOR + 6.500% 7.878% 7/25/22 (b)(c) | 2,045 | 1,704 | |
KUEHG Corp.: | |||
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.750% 5.0828% 8/13/22 (b)(c) | 26,938 | 27,056 | |
Tranche B, term loan 3 month U.S. LIBOR + 8.250% 9.5828% 8/22/25 (b)(c) | 6,500 | 6,484 | |
Laureate Education, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.500% 5.7423% 4/26/24 (b)(c) | 182,627 | 183,427 | |
Lineage Logistics Holdings, LLC. Tranche B, term loan 3 month U.S. LIBOR + 3.500% 4.7423% 4/7/21 (b)(c) | 62,076 | 62,250 | |
Prime Security Services Borrower LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.750% 3.985% 5/2/22 (b)(c) | 102,028 | 102,863 | |
SAI Global GP Tranche B, term loan 3 month U.S. LIBOR + 4.500% 5.8328% 12/8/23 (b)(c)(g) | 13,647 | 13,749 | |
Science Applications International Corp. Tranche B, term loan 3 month U.S. LIBOR + 2.500% 3.8125% 5/4/22 (b)(c) | 6,226 | 6,280 | |
The GEO Group, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.250% 3.57% 3/23/24 (b)(c) | 11,507 | 11,502 | |
The ServiceMaster Co. Tranche B, term loan 3 month U.S. LIBOR + 2.500% 3.7423% 11/8/23 (b)(c) | 25,803 | 25,912 | |
Thomson Reuters IP&S Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.500% 4.7423% 10/3/23 (b)(c) | 26,696 | 26,874 | |
Tmk Hawk Parent Corp. Tranche B, term loan: | |||
3 month U.S. LIBOR + 3.500% 9/26/24 (c)(d) | 433 | 437 | |
3 month U.S. LIBOR + 3.500% 4.8799% 9/26/24 (b)(c) | 9,692 | 9,792 | |
Wash Multifamily Acquisition, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 4.485% 5/14/22 (b)(c) | 14,746 | 14,819 | |
West Corp. Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.000% 5.2378% 10/10/24 (b)(c) | 8,819 | 8,835 | |
Xerox Business Services LLC: | |||
term loan 3 month U.S. LIBOR + 2.250% 3.4923% 12/7/21 (b)(c) | 11,364 | 11,364 | |
Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4.2423% 12/7/23 (b)(c) | 20,917 | 21,087 | |
TOTAL SERVICES | 828,517 | ||
Steel - 0.2% | |||
JMC Steel Group, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.750% 4.0731% 6/14/21 (b)(c) | 20,370 | 20,503 | |
Super Retail - 3.7% | |||
Academy Ltd. Tranche B, term loan 3 month U.S. LIBOR + 4.000% 5.2642% 7/2/22 (b)(c) | 30,337 | 22,304 | |
Bass Pro Shops LLC. Tranche B, term loan 3 month U.S. LIBOR + 5.000% 6.2417% 9/25/24 (b)(c) | 125,930 | 122,179 | |
BJ's Wholesale Club, Inc.: | |||
Tranche 2LN, term loan 3 month U.S. LIBOR + 7.500% 8.7378% 2/3/25 (b)(c) | 14,000 | 13,510 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.750% 4.9878% 2/3/24 (b)(c) | 63,147 | 61,489 | |
Davids Bridal, Inc. Tranche B, term loan 3 month U.S. LIBOR + 4.000% 5.34% 10/11/19 (b)(c) | 9,532 | 7,845 | |
Harbor Freight Tools U.S.A., Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.250% 4.4923% 8/19/23 (b)(c) | 18,888 | 18,993 | |
JC Penney Corp., Inc. Tranche B, term loan 3 month U.S. LIBOR + 4.250% 5.5678% 6/23/23 (b)(c) | 43,328 | 39,657 | |
Party City Holdings, Inc. term loan 3 month U.S. LIBOR + 3.000% 4.4107% 8/19/22 (b)(c) | 28,286 | 28,357 | |
PETCO Animal Supplies, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.000% 4.3801% 1/26/23 (b)(c) | 31,541 | 25,746 | |
PetSmart, Inc. term loan 3 month U.S. LIBOR + 3.000% 4.24% 3/11/22 (b)(c) | 31,857 | 27,169 | |
Red Ventures LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.000% 10/18/24 (c)(d) | 25,000 | 24,833 | |
Sports Authority, Inc. Tranche B, term loan 3 month U.S. LIBOR + 6.000% 0% 11/16/17 (c)(f) | 4,215 | 42 | |
TOTAL SUPER RETAIL | 392,124 | ||
Technology - 12.0% | |||
Aptean, Inc.: | |||
Tranche 2LN, term loan 3 month U.S. LIBOR + 9.500% 10.84% 12/20/23 (b)(c) | 2,500 | 2,509 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.250% 5.59% 12/20/22 (b)(c) | 12,990 | 13,144 | |
Bright Bidco BV Tranche B, term loan 3 month U.S. LIBOR + 4.500% 5.817% 6/30/24 (b)(c) | 17,955 | 18,187 | |
Cavium, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.250% 3.4879% 8/16/22 (b)(c) | 11,172 | 11,214 | |
Ceridian HCM Holding, Inc. Tranche B 2LN, term loan 3 month U.S. LIBOR + 3.500% 4.7389% 9/15/20 (b)(c) | 23,147 | 23,147 | |
Cologix Holdings, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.000% 4.4561% 3/20/24 (b)(c) | 4,478 | 4,479 | |
Computer Discount Warehouse (CDW) LLC Tranche B, term loan 3 month U.S. LIBOR + 2.000% 3.34% 8/17/23 (b)(c) | 31,227 | 31,432 | |
Compuware Corp.: | |||
term loan 3 month U.S. LIBOR + 8.250% 9.6161% 12/15/22 (b)(c) | 5,103 | 5,167 | |
Tranche B 3LN, term loan 3 month U.S. LIBOR + 4.250% 5.63% 12/15/21 (b)(c) | 56,200 | 56,972 | |
Datapipe, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.750% 6.0828% 3/15/19 (b)(c) | 10,553 | 10,597 | |
Dell International LLC Tranche B, term loan 3 month U.S. LIBOR + 2.000% 3.25% 9/7/23 (b)(c) | 32,265 | 32,338 | |
Digicert Holdings, Inc. Tranche B, term loan 3 month U.S. LIBOR + 4.750% 6.1301% 10/31/24 (b)(c) | 35,575 | 35,960 | |
EIG Investors Corp. Tranche B, term loan 3 month U.S. LIBOR + 4.000% 5.3178% 2/9/23 (b)(c) | 52,158 | 52,701 | |
Electro Rent Corp. Tranche B 1LN, term loan 3 month U.S. LIBOR + 5.000% 6.2722% 1/31/24 (b)(c) | 14,888 | 15,055 | |
Epicor Software Corp. Tranche B, term loan 3 month U.S. LIBOR + 3.750% 5% 6/1/22 (b)(c) | 33,168 | 33,340 | |
First Data Corp.: | |||
Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.500% 3.7379% 4/26/24 (b)(c) | 19,192 | 19,267 | |
Tranche B, term loan 3 month U.S. LIBOR + 2.250% 3.4879% 7/10/22 (b)(c) | 111,376 | 111,641 | |
Global Payments, Inc. Tranche B 2LN, term loan 3 month U.S. LIBOR + 2.000% 3.2423% 4/22/23 (b)(c) | 19,793 | 19,871 | |
Go Daddy Operating Co. LLC Tranche B, term loan 3 month U.S. LIBOR + 2.500% 3.7423% 2/15/24 (b)(c) | 26,405 | 26,537 | |
Hyland Software, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 4.4923% 7/1/22 (b)(c) | 10,628 | 10,726 | |
Infor U.S., Inc. Tranche B 6LN, term loan 3 month U.S. LIBOR + 2.750% 4.0828% 2/1/22 (b)(c) | 25,775 | 25,802 | |
Information Resources, Inc.: | |||
Tranche 2LN, term loan 3 month U.S. LIBOR + 8.250% 9.6174% 1/18/25 (b)(c) | 7,500 | 7,509 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.250% 5.6174% 1/18/24 (b)(c) | 21,054 | 21,274 | |
Inmar, Inc.: | |||
Tranche 2LN, term loan 3 month U.S. LIBOR + 8.000% 9.2722% 5/1/25 (b)(c) | 2,280 | 2,280 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.500% 4.7722% 5/1/24 (b)(c) | 7,965 | 7,985 | |
Kronos, Inc.: | |||
term loan 3 month U.S. LIBOR + 8.250% 9.5606% 11/1/24 (b)(c) | 30,000 | 30,848 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.500% 4.8114% 11/1/23 (b)(c) | 49,367 | 49,697 | |
Landesk Group, Inc. term loan: | |||
3 month U.S. LIBOR + 4.250% 5.5% 1/20/24 (b)(c) | 32,557 | 31,743 | |
3 month U.S. LIBOR + 9.000% 10.25% 1/20/25 (b)(c) | 5,000 | 4,841 | |
Lux FinCo U.S. SPV Tranche B 3LN, term loan 3 month U.S. LIBOR + 3.500% 4.7379% 10/16/22 (b)(c) | 10,704 | 10,597 | |
MA FinanceCo. LLC Tranche B 3LN, term loan: | |||
3 month U.S. LIBOR + 2.750% 3.9878% 6/21/24 (b)(c) | 56,781 | 56,959 | |
3 month U.S. LIBOR + 2.750% 3.9889% 6/21/24 (b)(c) | 8,222 | 8,247 | |
Mcafee LLC Tranche B, term loan: | |||
3 month U.S. LIBOR + 4.500% 5.8328% 9/29/24 (b)(c) | 43,430 | 43,694 | |
3 month U.S. LIBOR + 8.500% 9.8328% 9/29/25 (b)(c) | 7,500 | 7,613 | |
Mh Sub I LLC Tranche B, term loan 3 month U.S. LIBOR + 3.750% 5.07% 9/15/24 (b)(c) | 15,500 | 15,397 | |
Microsemi Corp. Tranche B, term loan 3 month U.S. LIBOR + 2.250% 3.4878% 1/15/23 (b)(c) | 9,708 | 9,743 | |
Rackspace Hosting, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4.3106% 11/3/23 (b)(c) | 45,517 | 45,488 | |
Renaissance Learning, Inc.: | |||
Tranche 1LN, term loan 3 month U.S. LIBOR + 3.750% 5.0828% 4/9/21 (b)(c) | 14,508 | 14,593 | |
Tranche 2LN, term loan 3 month U.S. LIBOR + 7.000% 8.3328% 4/9/22 (b)(c) | 19,080 | 19,271 | |
SolarWinds Holdings, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.500% 4.7423% 2/5/23 (b)(c) | 10,369 | 10,432 | |
Solera LLC Tranche B, term loan 3 month U.S. LIBOR + 3.250% 4.485% 3/3/23 (b)(c) | 32,642 | 32,878 | |
Sophia L.P. term loan 3 month U.S. LIBOR + 3.250% 4.5828% 9/30/22 (b)(c) | 26,563 | 26,514 | |
SS&C Technologies, Inc.: | |||
Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.250% 3.4923% 7/8/22 (b)(c) | 14,910 | 14,989 | |
Tranche B 2LN, term loan 3 month U.S. LIBOR + 2.250% 3.4923% 7/8/22 (b)(c) | 718 | 722 | |
Sybil Software LLC. Tranche B, term loan 3 month U.S. LIBOR + 3.250% 4.5828% 9/30/23 (b)(c) | 37,872 | 38,061 | |
Syniverse Holdings, Inc. Tranche B, term loan: | |||
3 month U.S. LIBOR + 3.000% 4.3111% 4/23/19 (b)(c) | 9,368 | 9,113 | |
3 month U.S. LIBOR + 3.000% 4.3328% 4/23/19 (b)(c) | 16,107 | 15,669 | |
Tempo Acquisition LLC Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4.2423% 5/1/24 (b)(c) | 41,785 | 41,907 | |
TIBCO Software, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.500% 4.75% 12/4/20 (b)(c) | 11,235 | 11,298 | |
Travelclick, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.000% 5.235% 5/12/21 (b)(c) | 7,721 | 7,759 | |
TTM Technologies, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.500% 3.7417% 9/28/24 (b)(c) | 15,000 | 15,103 | |
Uber Technologies, Inc. Tranche B, term loan 3 month U.S. LIBOR + 4.000% 5.2379% 7/13/23 (b)(c) | 15,265 | 15,361 | |
Vantiv LLC: | |||
Tranche B 3LN, term loan 3 month U.S. LIBOR + 2.000% 3.2367% 10/14/23 (b)(c) | 12,720 | 12,805 | |
Tranche B, term loan: | |||
3 month U.S. LIBOR + 2.000% 8/7/24 (c)(d) | 4,383 | 4,397 | |
3 month U.S. LIBOR + 2.000% 3.2389% 8/7/24 (b)(c) | 15,617 | 15,712 | |
Veritas U.S., Inc. Tranche B, term loan 3 month U.S. LIBOR + 4.500% 5.8328% 1/27/23 (b)(c) | 36,073 | 36,337 | |
Vfh Parent LLC Tranche B, term loan 3 month U.S. LIBOR + 3.750% 5.0606% 12/30/21 (b)(c) | 11,189 | 11,292 | |
WEX, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.750% 3.985% 7/1/23 (b)(c) | 18,302 | 18,495 | |
TOTAL TECHNOLOGY | 1,286,709 | ||
Telecommunications - 7.7% | |||
Altice Financing SA Tranche B, term loan: | |||
3 month U.S. LIBOR + 2.750% 1/5/26 (c)(d) | 10,000 | 10,000 | |
3 month U.S. LIBOR + 2.750% 4.1092% 7/15/25 (b)(c) | 10,945 | 10,940 | |
Blucora, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.750% 5.0731% 5/22/24 (b)(c) | 5,133 | 5,172 | |
Cincinnati Bell, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.750% 4.985% 10/2/24(b)(c) | 15,250 | 15,433 | |
Consolidated Communications, Inc. Tranche B 2LN, term loan 3 month U.S. LIBOR + 3.000% 4.25% 10/5/23 (b)(c) | 20,475 | 20,137 | |
Digicel International Finance Ltd. Tranche B, term loan 3 month U.S. LIBOR + 3.750% 5.07% 5/25/24 (b)(c) | 31,935 | 32,182 | |
Evo Payments International LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 5.000% 6.25% 12/20/23 (b)(c) | 17,905 | 18,134 | |
GTT Communications, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.250% 4.5% 1/9/24 (b)(c) | 6,967 | 7,011 | |
Intelsat Jackson Holdings SA Tranche B 2LN, term loan 3 month U.S. LIBOR + 2.750% 4.0711% 6/30/19 (b)(c) | 133,175 | 132,712 | |
Level 3 Financing, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.250% 3.4889% 2/22/24 (b)(c) | 79,500 | 79,770 | |
LTS Buyer LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 6.5% 4/11/20 (b)(c) | 49,889 | 49,983 | |
Neptune Finco Corp. Tranche B, term loan 3 month U.S. LIBOR + 2.250% 3.4889% 7/17/25 (b)(c) | 26,150 | 26,108 | |
Neustar, Inc.: | |||
Tranche 2LN, term loan 3 month U.S. LIBOR + 8.000% 9.3119% 8/8/25 (b)(c) | 5,460 | 5,515 | |
Tranche B1 1LN, term loan 3 month U.S. LIBOR + 3.250% 4.5603% 1/8/20 (b)(c) | 3,293 | 3,330 | |
Tranche B2 1LN, term loan 3 month U.S. LIBOR + 3.750% 5.0619% 8/8/24 (b)(c) | 18,995 | 19,177 | |
Onvoy LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.500% 5.8328% 2/10/24 (b)(c) | 19,965 | 19,940 | |
Polycom, Inc. Tranche B, term loan 3 month U.S. LIBOR + 5.250% 6.4896% 9/27/23 (b)(c) | 6,787 | 6,853 | |
Radiate Holdco LLC Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4.2423% 2/1/24 (b)(c) | 7,541 | 7,454 | |
Sable International Finance Ltd. Tranche B, term loan 3 month U.S. LIBOR + 3.500% 4.7423% 1/31/25 (b)(c) | 49,620 | 49,798 | |
SBA Senior Finance II, LLC term loan 3 month U.S. LIBOR + 2.250% 3.49% 3/24/21 (b)(c) | 30,986 | 31,107 | |
Securus Technologies Holdings, Inc.: | |||
Tranche 2LN, term loan 3 month U.S. LIBOR + 7.750% 9% 4/30/21 (b)(c) | 7,775 | 7,790 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.500% 4.75% 4/30/20 (b)(c) | 38,553 | 38,530 | |
Securus Technologies, Inc.: | |||
Tranche B, term loan: | |||
3 month U.S. LIBOR + 4.500% 5.7421% 6/15/24 (b)(c) | 30,750 | 31,109 | |
3 month U.S. LIBOR + 8.250% 6/15/25 (c)(d) | 8,500 | 8,557 | |
Tranche B2 1LN, term loan 3 month U.S. LIBOR + 4.250% 5.4525% 4/30/20 (b)(c) | 4,497 | 4,494 | |
SFR Group SA Tranche B 11LN, term loan 3 month U.S. LIBOR + 2.750% 4.1301% 7/31/25 (b)(c) | 34,328 | 34,254 | |
Sprint Communications, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.500% 3.75% 2/3/24 (b)(c) | 79,560 | 79,825 | |
Telesat LLC Tranche B 4LN, term loan 3 month U.S. LIBOR + 3.000% 4.32% 11/17/23 (b)(c) | 52,799 | 53,079 | |
Windstream Services LLC Tranche B 7LN, term loan 3 month U.S. LIBOR + 3.250% 4.49% 2/17/24 (b)(c) | 14,659 | 13,171 | |
Xplornet Communications, Inc. Tranche B, term loan 3 month U.S. LIBOR + 4.750% 6.0828% 9/9/21 (b)(c) | 5,209 | 5,261 | |
TOTAL TELECOMMUNICATIONS | 826,826 | ||
Textiles/Apparel - 0.1% | |||
ABB Optical Group LLC Tranche B, term loan 3 month U.S. LIBOR + 5.000% 6.3196% 6/15/23 (b)(c) | 8,739 | 8,816 | |
Transportation Ex Air/Rail - 0.4% | |||
American Commercial Barge Line Tranche B 1LN, term loan 3 month U.S. LIBOR + 8.750% 9.9923% 11/12/20 (b)(c) | 8,912 | 6,833 | |
International Seaways Operating Corp. Tranche B, term loan 3 month U.S. LIBOR + 5.500% 6.74% 6/22/22 (b)(c) | 27,701 | 27,839 | |
Navios Maritime Partners LP Tranche B, term loan 3 month U.S. LIBOR + 5.000% 6.32% 9/14/20 (b)(c) | 11,335 | 11,285 | |
TOTAL TRANSPORTATION EX AIR/RAIL | 45,957 | ||
Utilities - 3.7% | |||
Calpine Construction Finance Co. LP Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.250% 3.49% 5/3/20 (b)(c) | 25,602 | 25,602 | |
Calpine Corp. Tranche B, term loan 3 month U.S. LIBOR + 1.750% 3% 11/30/17 (b)(c) | 2,114 | 2,114 | |
Cortes NP Acquisition Corp. Tranche B, term loan 3 month U.S. LIBOR + 4.000% 5.235% 11/30/23 (b)(c) | 21,930 | 22,081 | |
Dynegy, Inc. Tranche C, term loan 3 month U.S. LIBOR + 3.250% 4.4923% 2/7/24 (b)(c) | 50,824 | 51,103 | |
Energy Future Holdings Corp. Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4.2422% 6/30/18 (b)(c) | 103,000 | 103,644 | |
Exgen Texas Power LLC Tranche B, term loan 3 month U.S. LIBOR + 4.750% 6.0828% 9/18/21 (b)(c) | 26,444 | 16,594 | |
Houston Fuel Oil Terminal Co. Tranche B, term loan 3 month U.S. LIBOR + 3.500% 4.83% 8/19/21 (b)(c) | 28,801 | 28,927 | |
InterGen NV Tranche B, term loan 3 month U.S. LIBOR + 4.500% 5.84% 6/13/20 (b)(c) | 32,475 | 32,462 | |
Limetree Bay Terminals LLC term loan 3 month U.S. LIBOR + 4.000% 5.2367% 2/15/24 (b)(c) | 20,935 | 20,987 | |
Moxie Patriot LLC Tranche B, term loan 3 month U.S. LIBOR + 5.750% 7.0828% 12/19/20 (b)(c) | 16,450 | 15,463 | |
Tex Operations Co. LLC: | |||
Tranche B, term loan 3 month U.S. LIBOR + 2.750% 4.0113% 8/4/23 (b)(c) | 40,813 | 40,926 | |
Tranche C, term loan 3 month U.S. LIBOR + 2.750% 4.0839% 8/4/23 (b)(c) | 9,379 | 9,403 | |
USIC Holdings, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.500% 5.0039% 12/9/23 (b)(c) | 7,945 | 8,011 | |
Vistra Operations Co. LLC Tranche B 2LN, term loan 3 month U.S. LIBOR + 2.750% 4.0104% 12/14/23 (b)(c) | 22,579 | 22,736 | |
TOTAL UTILITIES | 400,053 | ||
TOTAL BANK LOAN OBLIGATIONS | |||
(Cost $9,579,007) | 9,552,794 | ||
Nonconvertible Bonds - 6.6% | |||
Aerospace - 0.1% | |||
DAE Funding LLC: | |||
4% 8/1/20 (h) | 6,495 | 6,592 | |
4.5% 8/1/22 (h) | 3,750 | 3,802 | |
TOTAL AEROSPACE | 10,394 | ||
Broadcasting - 0.1% | |||
AMC Networks, Inc. 4.75% 12/15/22 | 6,600 | 6,773 | |
Building Materials - 0.1% | |||
CEMEX S.A.B. de CV 3 month U.S. LIBOR + 4.750% 6.1092% 10/15/18 (b)(c)(h) | 10,000 | 10,263 | |
Cable/Satellite TV - 0.4% | |||
CCO Holdings LLC/CCO Holdings Capital Corp.: | |||
5.125% 2/15/23 | 17,065 | 17,620 | |
5.25% 3/15/21 | 13,070 | 13,331 | |
Cequel Communications Escrow I LLC/Cequel Communications Escrow Capital Corp. 6.375% 9/15/20 (h) | 7,507 | 7,658 | |
Virgin Media Finance PLC 4.875% 2/15/22 | 2,000 | 1,950 | |
TOTAL CABLE/SATELLITE TV | 40,559 | ||
Chemicals - 0.1% | |||
Nufarm Australia Ltd. 6.375% 10/15/19 (h) | 5,000 | 5,088 | |
TPC Group, Inc. 8.75% 12/15/20 (h) | 10,665 | 10,425 | |
TOTAL CHEMICALS | 15,513 | ||
Containers - 0.7% | |||
Ardagh Packaging Finance PLC/Ardagh MP Holdings U.S.A., Inc.: | |||
4.25% 9/15/22 (h) | 15,000 | 15,450 | |
6% 2/15/25 (h) | 10,000 | 10,613 | |
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer (Luxembourg) SA: | |||
3 month U.S. LIBOR + 3.500% 4.8592% 7/15/21 (b)(c)(h) | 11,130 | 11,353 | |
5.75% 10/15/20 | 33,325 | 33,909 | |
TOTAL CONTAINERS | 71,325 | ||
Diversified Financial Services - 0.5% | |||
Icahn Enterprises LP/Icahn Enterprises Finance Corp.: | |||
4.875% 3/15/19 | 15,000 | 15,075 | |
6.25% 2/1/22 | 5,200 | 5,434 | |
International Lease Finance Corp.: | |||
3.875% 4/15/18 | 7,000 | 7,064 | |
6.25% 5/15/19 | 10,000 | 10,603 | |
Prime Securities Services Borrower LLC/Prime Finance, Inc. 9.25% 5/15/23 (h) | 10,000 | 11,082 | |
TOTAL DIVERSIFIED FINANCIAL SERVICES | 49,258 | ||
Energy - 0.5% | |||
Cheniere Corpus Christi Holdings LLC: | |||
5.125% 6/30/27 (h) | 11,455 | 11,813 | |
7% 6/30/24 | 7,000 | 7,989 | |
Chesapeake Energy Corp. 8% 12/15/22 (h) | 8,195 | 8,817 | |
Citgo Petroleum Corp. 6.25% 8/15/22 (h) | 10,000 | 10,275 | |
Consolidated Energy Finance SA: | |||
3 month U.S. LIBOR + 3.750% 5.07% 6/15/22 (b)(c)(h) | 7,500 | 7,483 | |
6.875% 6/15/25 (h) | 5,500 | 5,816 | |
Peabody Securities Finance Corp. 6% 3/31/22 (h) | 3,335 | 3,435 | |
TOTAL ENERGY | 55,628 | ||
Entertainment/Film - 0.0% | |||
Cinemark U.S.A., Inc. 5.125% 12/15/22 | 3,185 | 3,265 | |
Gaming - 0.1% | |||
Gateway Casinos & Entertainment Ltd. 8.25% 3/1/24 (h) | 5,000 | 5,313 | |
Scientific Games Corp. 7% 1/1/22 (h) | 7,800 | 8,249 | |
TOTAL GAMING | 13,562 | ||
Healthcare - 1.0% | |||
Community Health Systems, Inc. 6.25% 3/31/23 | 21,175 | 20,381 | |
DaVita HealthCare Partners, Inc. 5.75% 8/15/22 | 8,235 | 8,492 | |
HCA Holdings, Inc. 3.75% 3/15/19 | 25,000 | 25,375 | |
Tenet Healthcare Corp.: | |||
4.625% 7/15/24 (h) | 28,000 | 27,545 | |
4.75% 6/1/20 | 8,680 | 8,897 | |
7.5% 1/1/22 (h) | 5,085 | 5,352 | |
THC Escrow Corp. III 5.125% 5/1/25 (h) | 7,500 | 7,303 | |
TOTAL HEALTHCARE | 103,345 | ||
Homebuilders/Real Estate - 0.5% | |||
CBRE Group, Inc. 5% 3/15/23 | 17,990 | 18,619 | |
VICI Properties 1 LLC/VICI FC, Inc. 3 month U.S. LIBOR + 3.500% 4.8467% 10/15/22 (b)(c) | 40,450 | 40,652 | |
TOTAL HOMEBUILDERS/REAL ESTATE | 59,271 | ||
Leisure - 0.2% | |||
Studio City Co. Ltd.: | |||
5.875% 11/30/19 (h) | 6,860 | 7,194 | |
7.25% 11/30/21 (h) | 10,000 | 10,701 | |
TOTAL LEISURE | 17,895 | ||
Paper - 0.1% | |||
Xerium Technologies, Inc. 9.5% 8/15/21 | 9,500 | 9,758 | |
Publishing/Printing - 0.1% | |||
Cenveo Corp. 6% 8/1/19 (h) | 9,850 | 6,797 | |
Restaurants - 0.1% | |||
1011778 BC Unlimited Liability Co./New Red Finance, Inc. 4.25% 5/15/24 (h) | 8,000 | 8,058 | |
Services - 0.3% | |||
APX Group, Inc.: | |||
7.625% 9/1/23 | 12,500 | 13,156 | |
7.875% 12/1/22 | 13,975 | 15,076 | |
TOTAL SERVICES | 28,232 | ||
Super Retail - 0.1% | |||
JC Penney Corp., Inc. 5.875% 7/1/23 (h) | 6,385 | 6,124 | |
PetSmart, Inc. 5.875% 6/1/25 (h) | 7,665 | 6,688 | |
TOTAL SUPER RETAIL | 12,812 | ||
Technology - 0.5% | |||
Brocade Communications Systems, Inc. 4.625% 1/15/23 | 11,745 | 12,024 | |
Diamond 1 Finance Corp./Diamond 2 Finance Corp.: | |||
3.48% 6/1/19 (h) | 6,199 | 6,310 | |
4.42% 6/15/21 (h) | 16,685 | 17,542 | |
NXP BV/NXP Funding LLC: | |||
4.125% 6/1/21 (h) | 16,440 | 17,180 | |
5.75% 3/15/23 (h) | 5,000 | 5,200 | |
TOTAL TECHNOLOGY | 58,256 | ||
Telecommunications - 1.1% | |||
Altice Financing SA: | |||
6.5% 1/15/22 (h) | 7,240 | 7,493 | |
7.5% 5/15/26 (h) | 19,200 | 21,048 | |
Intelsat Jackson Holdings SA 8% 2/15/24 (h) | 14,100 | 14,946 | |
SFR Group SA: | |||
6% 5/15/22 (h) | 2,550 | 2,658 | |
6.25% 5/15/24 (h) | 10,905 | 11,423 | |
7.375% 5/1/26 (h) | 18,755 | 20,162 | |
Sprint Capital Corp.: | |||
6.875% 11/15/28 | 4,000 | 4,268 | |
6.9% 5/1/19 | 5,000 | 5,275 | |
Sprint Communications, Inc.: | |||
6% 11/15/22 | 30,000 | 31,500 | |
9% 11/15/18 (h) | 3,000 | 3,184 | |
TOTAL TELECOMMUNICATIONS | 121,957 | ||
Utilities - 0.0% | |||
NRG Energy, Inc. 6.625% 3/15/23 | 4,000 | 4,140 | |
TOTAL NONCONVERTIBLE BONDS | |||
(Cost $694,366) | 707,061 | ||
Shares | Value (000s) | ||
Common Stocks - 0.4% | |||
Broadcasting - 0.0% | |||
Cumulus Media, Inc. Class A (i) | 28,882 | 11 | |
ION Media Networks, Inc. (g) | 2,842 | 2,134 | |
TOTAL BROADCASTING | 2,145 | ||
Chemicals - 0.3% | |||
LyondellBasell Industries NV Class A | 245,943 | 25,462 | |
Homebuilders/Real Estate - 0.0% | |||
Five Point Holdings LLC Class A (i) | 45,793 | 588 | |
Metals/Mining - 0.1% | |||
Warrior Metropolitan Coal, Inc. | 496,683 | 12,924 | |
Telecommunications - 0.0% | |||
Consolidated Communications Holdings, Inc. | 25,029 | 480 | |
Utilities - 0.0% | |||
Calpine Corp. (i) | 20,715 | 309 | |
TOTAL COMMON STOCKS | |||
(Cost $83,933) | 41,908 | ||
Money Market Funds - 7.9% | |||
Fidelity Cash Central Fund, 1.10% (j) | |||
(Cost $853,356) | 853,338,777 | 853,509 | |
TOTAL INVESTMENT IN SECURITIES - 103.9% | |||
(Cost $11,210,662) | 11,155,272 | ||
NET OTHER ASSETS (LIABILITIES) - (3.9)% | (423,051) | ||
NET ASSETS - 100% | $10,732,221 |
Values shown as $0 may reflect amounts less than $500.
Legend
(a) Remaining maturities of bank loan obligations may be less than the stated maturities shown as a result of contractual or optional prepayments by the borrower. Such prepayments cannot be predicted with certainty.
(b) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end.
(c) Coupon is indexed to a floating interest rate which may be multiplied by a specified factor and/or subject to caps or floors.
(d) The coupon rate will be determined upon settlement of the loan after period end.
(e) Position represents an unfunded loan commitment. At period end, the total principal amount and market value of unfunded commitments totaled $1,598,000 and $1,608,000, respectively.
(f) Non-income producing - Security is in default.
(g) Level 3 security
(h) 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 $366,435,000 or 3.4% of net assets.
(i) Non-income producing
(j) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
(Amounts in thousands) | |
Fidelity Cash Central Fund | $8,446 |
Total | $8,446 |
Investment Valuation
The following is a summary of the inputs used, as of October 31, 2017, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
(Amounts in thousands) | ||||
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $2,145 | $11 | $-- | $2,134 |
Energy | 12,924 | 12,924 | -- | -- |
Materials | 25,462 | 25,462 | -- | -- |
Real Estate | 588 | 588 | -- | -- |
Telecommunication Services | 480 | 480 | -- | -- |
Utilities | 309 | 309 | -- | -- |
Bank Loan Obligations | 9,552,794 | -- | 9,539,045 | 13,749 |
Corporate Bonds | 707,061 | -- | 707,061 | -- |
Money Market Funds | 853,509 | 853,509 | -- | -- |
Total Investments in Securities: | $11,155,272 | $893,283 | $10,246,106 | $15,883 |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | October 31, 2017 | |
Assets | ||
Investment in securities, at value See accompanying schedule: Unaffiliated issuers (cost $10,357,306) | $10,301,763 | |
Fidelity Central Funds (cost $853,356) | 853,509 | |
Total Investment in Securities (cost $11,210,662) | $11,155,272 | |
Cash | 35,292 | |
Receivable for investments sold | 102,291 | |
Receivable for fund shares sold | 14,148 | |
Dividends receivable | 19 | |
Interest receivable | 51,069 | |
Distributions receivable from Fidelity Central Funds | 796 | |
Prepaid expenses | 25 | |
Total assets | 11,358,912 | |
Liabilities | ||
Payable for investments purchased | $601,345 | |
Payable for fund shares redeemed | 11,763 | |
Distributions payable | 6,616 | |
Accrued management fee | 4,982 | |
Distribution and service plan fees payable | 592 | |
Other affiliated payables | 1,286 | |
Other payables and accrued expenses | 107 | |
Total liabilities | 626,691 | |
Net Assets | $10,732,221 | |
Net Assets consist of: | ||
Paid in capital | $11,112,442 | |
Undistributed net investment income | 32,709 | |
Accumulated undistributed net realized gain (loss) on investments | (357,540) | |
Net unrealized appreciation (depreciation) on investments | (55,390) | |
Net Assets | $10,732,221 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($584,589 ÷ 60,469 shares) | $9.67 | |
Maximum offering price per share (100/97.25 of $9.67) | $9.94 | |
Class M: | ||
Net Asset Value and redemption price per share ($137,499 ÷ 14,243 shares) | $9.65 | |
Maximum offering price per share (100/97.25 of $9.65) | $9.92 | |
Class C: | ||
Net Asset Value and offering price per share ($522,522 ÷ 54,061 shares)(a) | $9.67 | |
Fidelity Floating Rate High Income Fund: | ||
Net Asset Value, offering price and redemption price per share ($7,367,746 ÷ 763,117 shares) | $9.65 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($2,119,865 ÷ 219,746 shares) | $9.65 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Amounts in thousands | Year ended October 31, 2017 | |
Investment Income | ||
Dividends | $3,454 | |
Interest | 478,083 | |
Income from Fidelity Central Funds | 8,446 | |
Total income | 489,983 | |
Expenses | ||
Management fee | $58,234 | |
Transfer agent fees | 13,649 | |
Distribution and service plan fees | 7,697 | |
Accounting fees and expenses | 1,589 | |
Custodian fees and expenses | 104 | |
Independent trustees' fees and expenses | 41 | |
Registration fees | 349 | |
Audit | 181 | |
Legal | 63 | |
Miscellaneous | 85 | |
Total expenses before reductions | 81,992 | |
Expense reductions | (159) | 81,833 |
Net investment income (loss) | 408,150 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 15,520 | |
Fidelity Central Funds | 17 | |
Total net realized gain (loss) | 15,537 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 41,512 | |
Fidelity Central Funds | (105) | |
Total change in net unrealized appreciation (depreciation) | 41,407 | |
Net gain (loss) | 56,944 | |
Net increase (decrease) in net assets resulting from operations | $465,094 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Amounts in thousands | Year ended October 31, 2017 | Year ended October 31, 2016 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $408,150 | $349,986 |
Net realized gain (loss) | 15,537 | (225,620) |
Change in net unrealized appreciation (depreciation) | 41,407 | 386,147 |
Net increase (decrease) in net assets resulting from operations | 465,094 | 510,513 |
Distributions to shareholders from net investment income | (394,075) | (383,140) |
Share transactions - net increase (decrease) | 1,322,261 | (1,573,710) |
Redemption fees | 365 | 413 |
Total increase (decrease) in net assets | 1,393,645 | (1,445,924) |
Net Assets | ||
Beginning of period | 9,338,576 | 10,784,500 |
End of period | $10,732,221 | $9,338,576 |
Other Information | ||
Undistributed net investment income end of period | $32,709 | $27,697 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Advisor Floating Rate High Income Fund Class A
Years ended October 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected PerShare Data | |||||
Net asset value, beginning of period | $9.60 | $9.42 | $9.85 | $9.99 | $9.94 |
Income from Investment Operations | |||||
Net investment income (loss)A | .360 | .334 | .375 | .317 | .310 |
Net realized and unrealized gain (loss) | .056 | .211 | (.425) | (.114) | .070 |
Total from investment operations | .416 | .545 | (.050) | .203 | .380 |
Distributions from net investment income | (.346) | (.365) | (.341) | (.307) | (.282) |
Distributions from net realized gain | | | (.040) | (.036) | (.049) |
Total distributions | (.346) | (.365) | (.381) | (.343) | (.331) |
Redemption fees added to paid in capitalA | B | B | .001 | B | .001 |
Net asset value, end of period | $9.67 | $9.60 | $9.42 | $9.85 | $9.99 |
Total ReturnC,D | 4.40% | 5.98% | (.53)% | 2.05% | 3.89% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | .99% | .99% | .98% | .98% | .99% |
Expenses net of fee waivers, if any | .98% | .99% | .98% | .98% | .99% |
Expenses net of all reductions | .98% | .98% | .98% | .98% | .99% |
Net investment income (loss) | 3.72% | 3.58% | 3.86% | 3.17% | 3.11% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $585 | $707 | $863 | $1,185 | $1,681 |
Portfolio turnover rateG | 68% | 46% | 26% | 54% | 62% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.0005 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Floating Rate High Income Fund Class M
Years ended October 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected PerShare Data | |||||
Net asset value, beginning of period | $9.58 | $9.40 | $9.84 | $9.98 | $9.93 |
Income from Investment Operations | |||||
Net investment income (loss)A | .356 | .324 | .365 | .306 | .299 |
Net realized and unrealized gain (loss) | .057 | .212 | (.434) | (.112) | .071 |
Total from investment operations | .413 | .536 | (.069) | .194 | .370 |
Distributions from net investment income | (.343) | (.356) | (.332) | (.298) | (.272) |
Distributions from net realized gain | | | (.040) | (.036) | (.049) |
Total distributions | (.343) | (.356) | (.372) | (.334) | (.321) |
Redemption fees added to paid in capitalA | B | B | .001 | B | .001 |
Net asset value, end of period | $9.65 | $9.58 | $9.40 | $9.84 | $9.98 |
Total ReturnC,D | 4.37% | 5.89% | (.72)% | 1.96% | 3.79% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | 1.01% | 1.08% | 1.07% | 1.07% | 1.09% |
Expenses net of fee waivers, if any | 1.01% | 1.08% | 1.07% | 1.07% | 1.09% |
Expenses net of all reductions | 1.01% | 1.08% | 1.07% | 1.07% | 1.09% |
Net investment income (loss) | 3.69% | 3.48% | 3.77% | 3.08% | 3.01% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $137 | $171 | $195 | $240 | $272 |
Portfolio turnover rateG | 68% | 46% | 26% | 54% | 62% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.0005 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Floating Rate High Income Fund Class C
Years ended October 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected PerShare Data | |||||
Net asset value, beginning of period | $9.59 | $9.41 | $9.85 | $9.99 | $9.94 |
Income from Investment Operations | |||||
Net investment income (loss)A | .286 | .263 | .301 | .241 | .235 |
Net realized and unrealized gain (loss) | .067 | .212 | (.434) | (.113) | .070 |
Total from investment operations | .353 | .475 | (.133) | .128 | .305 |
Distributions from net investment income | (.273) | (.295) | (.268) | (.232) | (.207) |
Distributions from net realized gain | | | (.040) | (.036) | (.049) |
Total distributions | (.273) | (.295) | (.308) | (.268) | (.256) |
Redemption fees added to paid in capitalA | B | B | .001 | B | .001 |
Net asset value, end of period | $9.67 | $9.59 | $9.41 | $9.85 | $9.99 |
Total ReturnC,D | 3.73% | 5.19% | (1.38)% | 1.29% | 3.11% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | 1.74% | 1.74% | 1.73% | 1.73% | 1.74% |
Expenses net of fee waivers, if any | 1.74% | 1.74% | 1.73% | 1.73% | 1.74% |
Expenses net of all reductions | 1.74% | 1.74% | 1.73% | 1.73% | 1.74% |
Net investment income (loss) | 2.96% | 2.82% | 3.10% | 2.41% | 2.35% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $523 | $582 | $671 | $835 | $960 |
Portfolio turnover rateG | 68% | 46% | 26% | 54% | 62% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.0005 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Floating Rate High Income Fund
Years ended October 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected PerShare Data | |||||
Net asset value, beginning of period | $9.58 | $9.40 | $9.84 | $9.98 | $9.93 |
Income from Investment Operations | |||||
Net investment income (loss)A | .386 | .359 | .401 | .344 | .337 |
Net realized and unrealized gain (loss) | .057 | .212 | (.435) | (.113) | .071 |
Total from investment operations | .443 | .571 | (.034) | .231 | .408 |
Distributions from net investment income | (.373) | (.391) | (.367) | (.335) | (.310) |
Distributions from net realized gain | | | (.040) | (.036) | (.049) |
Total distributions | (.373) | (.391) | (.407) | (.371) | (.359) |
Redemption fees added to paid in capitalA | B | B | .001 | B | .001 |
Net asset value, end of period | $9.65 | $9.58 | $9.40 | $9.84 | $9.98 |
Total ReturnC | 4.70% | 6.28% | (.36)% | 2.34% | 4.19% |
Ratios to Average Net AssetsD,E | |||||
Expenses before reductions | .70% | .71% | .70% | .69% | .70% |
Expenses net of fee waivers, if any | .69% | .71% | .70% | .69% | .70% |
Expenses net of all reductions | .69% | .71% | .70% | .69% | .70% |
Net investment income (loss) | 4.01% | 3.86% | 4.14% | 3.45% | 3.39% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $7,368 | $6,131 | $6,615 | $9,032 | $8,882 |
Portfolio turnover rateF | 68% | 46% | 26% | 54% | 62% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.0005 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Floating Rate High Income Fund Class I
Years ended October 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected PerShare Data | |||||
Net asset value, beginning of period | $9.58 | $9.40 | $9.83 | $9.97 | $9.92 |
Income from Investment Operations | |||||
Net investment income (loss)A | .380 | .355 | .396 | .339 | .332 |
Net realized and unrealized gain (loss) | .058 | .211 | (.424) | (.113) | .071 |
Total from investment operations | .438 | .566 | (.028) | .226 | .403 |
Distributions from net investment income | (.368) | (.386) | (.363) | (.330) | (.305) |
Distributions from net realized gain | | | (.040) | (.036) | (.049) |
Total distributions | (.368) | (.386) | (.403) | (.366) | (.354) |
Redemption fees added to paid in capitalA | B | B | .001 | B | .001 |
Net asset value, end of period | $9.65 | $9.58 | $9.40 | $9.83 | $9.97 |
Total ReturnC | 4.64% | 6.23% | (.30)% | 2.29% | 4.15% |
Ratios to Average Net AssetsD,E | |||||
Expenses before reductions | .75% | .75% | .74% | .74% | .75% |
Expenses net of fee waivers, if any | .75% | .75% | .74% | .74% | .75% |
Expenses net of all reductions | .75% | .75% | .74% | .74% | .75% |
Net investment income (loss) | 3.95% | 3.81% | 4.10% | 3.40% | 3.34% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $2,120 | $1,748 | $2,429 | $3,317 | $3,646 |
Portfolio turnover rateF | 68% | 46% | 26% | 54% | 62% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.0005 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended October 31, 2017
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor Floating Rate High 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 M (formerly Class T), Class C, Fidelity Floating Rate High Income Fund and Class I shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.
After the close of business on June 24, 2016, all outstanding Class B shares were converted to Class A shares. All prior fiscal period dollar and share amounts for Class B presented in the Notes to Financial Statements are for the period November 1, 2015 through June 24, 2016.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Valuation techniques used to value the Fund's investments by major category are as follows:
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds and bank loan 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. The Fund invests a significant portion of its assets in below investment grade securities. The value of these securities can be more volatile due to changes in the credit quality of the issuer and is sensitive to changes in economic, market and regulatory conditions.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of October 31, 2017, is included at the end of the Fund's Schedule of Investments.
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. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured. The Fund earns certain fees in connection with its floating rate loan purchasing activities. These fees are in addition to interest payments earned and may include amendment fees, consent fees and prepayment fees. These fees are recorded as Interest in the accompanying financial statements.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of October 31, 2017, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction.
Dividends are declared and recorded daily and paid monthly from net investment income. Distributions from realized gains, if any, are declared and recorded on the ex-dividend date. Income 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 defaulted bonds, market discount, capital loss carryforwards and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes as follows:
Gross unrealized appreciation | $150,511 |
Gross unrealized depreciation | (190,169) |
Net unrealized appreciation (depreciation) | $(39,658) |
Tax Cost | $11,194,930 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $16,167 |
Capital loss carryforward | $(356,730) |
Net unrealized appreciation (depreciation) on securities and other investments | $(39,658) |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of fiscal period end and is subject to adjustment.
No expiration | |
Short-term | $(15,767) |
Long-term | (340,963) |
Total capital loss carryforward | $(356,730) |
The tax character of distributions paid was as follows:
October 31, 2017 | October 31, 2016 | |
Ordinary Income | $394,075 | $ 383,140 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 60 days may have been subject to a redemption fee equal to 1.00% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital. In November 2017, the Board of Trustees approved the elimination of these redemption fees effective December 18, 2017.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Loans and Other Direct Debt Instruments. The Fund invests in direct debt instruments which are interests in amounts owed to lenders by corporate or other borrowers. These instruments may be in the form of loans, trade claims or other receivables and may include standby financing commitments such as revolving credit facilities that obligate the Fund to supply additional cash to the borrower on demand. Loans may be acquired through assignment or participation. The Fund also invests in unfunded loan commitments, which are contractual obligations for future funding. Information regarding unfunded commitments is included at the end of the Fund's Schedule of Investments.
New Accounting Pronouncement. In March 2017, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU), ASU 2017-08, which amends the amortization period for certain callable debt securities that are held at a premium. The amendment requires the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount. The ASU is effective for annual periods beginning after December 15, 2018. Management is currently evaluating the potential impact of these changes to the financial statements.
4. Purchase and Sales of Investments.
Purchases and sales of securities (including principal repayments of bank loan obligations), other than short-term securities, aggregated $8,047,525 and $6,594,196, 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 .45% of the Fund's average net assets and an annualized group fee rate that averaged .11% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annual management fee rate was .56% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
Distribution Fee | Service Fee | Total Fees | Retained by FDC |
|
Class A | -% | .25% | $1,659 | $71 |
Class M | -% | .25% | 384 | 2 |
Class C | .75% | .25% | 5,654 | 383 |
$7,697 | $456 |
Sales Load. FDC may receive a front-end sales charge of up to 2.75% for selling Class A shares and Class M 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 M and Class C redemptions. The deferred sales charges are 1.00% for Class C shares, 1.00% or .50% for certain purchases of Class A shares and .25% for certain purchases of Class M shares.
For the period, sales charge amounts retained by FDC were as follows:
Retained by FDC |
|
Class A | $37 |
Class M | 7 |
Class C(a) | 28 |
$72 |
(a) When Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
Amount | % of Class-Level Average Net Assets |
|
Class A | $1,017 | .15 |
Class M | 280 | .18 |
Class C | 883 | .16 |
Fidelity Floating Rate High Income Fund | 7,969 | .11 |
Class I | 3,500 | .17 |
$13,649 |
Accounting Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The fee is based on the level of average net assets for each month.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $36.
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 $33 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Expense Reductions.
Through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $101.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $58.
8. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Year ended October 31, 2017 | Year ended October 31, 2016 | |
From net investment income | ||
Class A | $23,794 | $28,998 |
Class M | 5,475 | 6,712 |
Class B | | 210 |
Class C | 16,016 | 19,076 |
Fidelity Floating Rate High Income Fund | 271,385 | 244,237 |
Class I | 77,405 | 83,907 |
Total | $394,075 | $383,140 |
9. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Year ended October 31, 2017 | Year ended October 31, 2016 | Year ended October 31, 2017 | Year ended October 31, 2016 | |
Class A | ||||
Shares sold | 22,327 | 13,632 | $215,427 | $127,187 |
Reinvestment of distributions | 2,289 | 2,814 | 22,112 | 26,169 |
Shares redeemed | (37,818) | (34,450) | (365,948) | (318,820) |
Net increase (decrease) | (13,202) | (18,004) | $(128,409) | $(165,464) |
Class M | ||||
Shares sold | 1,925 | 1,326 | $18,561 | $12,365 |
Reinvestment of distributions | 550 | 671 | 5,301 | 6,235 |
Shares redeemed | (6,051) | (4,884) | (58,381) | (45,244) |
Net increase (decrease) | (3,576) | (2,887) | $(34,519) | $(26,644) |
Class B | ||||
Shares sold | | 10 | $ | $96 |
Reinvestment of distributions | | 19 | | 177 |
Shares redeemed | | (1,219) | | (11,330) |
Net increase (decrease) | | (1,190) | $ | $(11,057) |
Class C | ||||
Shares sold | 7,187 | 5,299 | $69,348 | $49,451 |
Reinvestment of distributions | 1,402 | 1,645 | 13,539 | 15,298 |
Shares redeemed | (15,197) | (17,529) | (146,725) | (162,349) |
Net increase (decrease) | (6,608) | (10,585) | $(63,838) | $(97,600) |
Fidelity Floating Rate High Income Fund | ||||
Shares sold | 256,065 | 152,772 | $2,468,886 | $1,428,276 |
Reinvestment of distributions | 22,910 | 21,133 | 221,002 | 196,548 |
Shares redeemed | (155,638) | (237,658) | (1,500,477) | (2,193,671) |
Net increase (decrease) | 123,337 | (63,753) | $1,189,411 | $(568,847) |
Class I | ||||
Shares sold | 102,139 | 58,131 | $985,030 | $539,868 |
Reinvestment of distributions | 5,949 | 5,808 | 57,337 | 53,924 |
Shares redeemed | (70,851) | (139,996) | (682,751) | (1,297,890) |
Net increase (decrease) | 37,237 | (76,057) | $359,616 | $(704,098) |
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.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Advisor Series I and Shareholders of Fidelity Advisor Floating Rate High Income Fund:
We have audited the accompanying statement of assets and liabilities of Fidelity Advisor Floating Rate High Income Fund (the Fund), a fund of Fidelity Advisor Series I, including the schedule of investments, as of October 31, 2017, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2017, by correspondence with the custodians, brokers, and agent banks; when replies were not received from brokers or agent banks, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Fidelity Advisor Floating Rate High Income Fund as of October 31, 2017, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
December 15, 2017
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Each of the Trustees oversees 190 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The funds Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and sector funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. For example, a working group comprised of Independent Trustees and FMR has worked and continues to work to review the Fidelity® funds' valuation-related activities, reporting and risk management. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-present), and Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the board of Artis-Naples, Naples, Florida, and as a Trustee for Brewster Academy, Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
Charles S. Morrison (1960)
Year of Election or Appointment: 2014
Trustee
Mr. Morrison also serves as Trustee of other funds. He serves as President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present), a Director of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2014-present), Director of Fidelity SelectCo, LLC (investment adviser firm, 2014-present), President, Asset Management (2014-present), and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (investment adviser firm, 2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.
* Determined to be an Interested Trustee by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Childrens Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present) and Board of Directors (2017-present) of the Asolo Repertory Theatre.
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Busters Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Vice Chair of the Board of Governors, State University System of Florida (2013-present) and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present) and the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
William S. Stavropoulos (1939)
Year of Election or Appointment: 2002
Trustee
Vice Chairman of the Independent Trustees
Mr. Stavropoulos also serves as Trustee of other Fidelity® funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of Artis-Naples in Naples, Florida. Previously, Mr. Stavropoulos served as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication), and as a member of the Board of Trustees of the University of Florida (2013-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
Marc R. Bryant (1966)
Year of Election or Appointment: 2015
Secretary and Chief Legal Officer (CLO)
Mr. Bryant also serves as Secretary and CLO of other funds. Mr. Bryant serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company (investment adviser firm, 2015-present) and FMR Co., Inc. (investment adviser firm, 2015-present); Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2015-present) and Fidelity Investments Money Management, Inc. (investment adviser firm, 2015-present); and CLO of Fidelity Management & Research (Hong Kong) Limited and FMR Investment Management (UK) Limited (investment adviser firms, 2015-present) and Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and CLO of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006).
William C. Coffey (1969)
Year of Election or Appointment: 2009
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds, and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Stephanie J. Dorsey (1969)
Year of Election or Appointment: 2010
Assistant Treasurer
Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank.
Howard J. Galligan III (1966)
Year of Election or Appointment: 2014
Chief Financial Officer
Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (investment adviser firm, 2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011).
Thomas C. Hense (1964)
Year of Election or Appointment: 2008, 2010, or 2015
Vice President
Mr. Hense serves as Vice President of Fidelity Advisor® Multi-Asset Income Fund (2015) and other funds (High Income (2008), Small Cap (2008), and Value (2010) funds), and is an employee of Fidelity Investments (1993-present). Previously, Mr. Hense served as a portfolio manager for Fidelity's Institutional Money Management Group (Pyramis) (2003-2008).
Brian B. Hogan (1964)
Year of Election or Appointment: 2009
Vice President
Mr. Hogan also serves as Trustee or Vice President of other funds. Mr. Hogan serves as a Director of FMR Investment Management (UK) Limited (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present) and President of the Equity Division of FMR (investment adviser firm, 2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager. Mr. Brian B. Hogan is not related to Mr. Colm A. Hogan.
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan is an employee of Fidelity Investments (2005-present). Mr. Colm A. Hogan is not related to Mr. Brian B. Hogan.
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Rieco E. Mello (1969)
Year of Election or Appointment: 2017
Assistant Treasurer
Mr. Mello also serves as Assistant Treasurer of other funds. Mr. Mello is an employee of Fidelity Investments (1995-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Renee Stagnone (1975)
Year of Election or Appointment: 2016
Assistant Treasurer
Ms. Stagnone also serves as an officer of other funds. Ms. Stagnone is an employee of Fidelity Investments (1997-present). Previously, Ms. Stagnone served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (May 1, 2017 to October 31, 2017).
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.
Annualized Expense Ratio-A | Beginning Account Value May 1, 2017 | Ending Account Value October 31, 2017 | Expenses Paid During Period-B May 1, 2017 to October 31, 2017 |
|
Class A | .97% | |||
Actual | $1,000.00 | $1,018.00 | $4.93 | |
Hypothetical-C | $1,000.00 | $1,020.32 | $4.94 | |
Class M | .98% | |||
Actual | $1,000.00 | $1,016.90 | $4.98 | |
Hypothetical-C | $1,000.00 | $1,020.27 | $4.99 | |
Class C | 1.72% | |||
Actual | $1,000.00 | $1,014.20 | $8.73 | |
Hypothetical-C | $1,000.00 | $1,016.53 | $8.74 | |
Fidelity Floating Rate High Income Fund | .69% | |||
Actual | $1,000.00 | $1,018.40 | $3.51 | |
Hypothetical-C | $1,000.00 | $1,021.73 | $3.52 | |
Class I | .75% | |||
Actual | $1,000.00 | $1,019.20 | $3.82 | |
Hypothetical-C | $1,000.00 | $1,021.42 | $3.82 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
The Board of Trustees of Fidelity Advisor Floating Rate High Income Fund voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities.
Pay Date | Record Date | Capital Gains | |
Fidelity Advisor Floating Rate High Income Fund | |||
Class A | 12/11/17 | 12/08/17 | $0.004 |
Class M | 12/11/17 | 12/08/17 | $0.004 |
Class C | 12/11/17 | 12/08/17 | $0.004 |
Fidelity Floating Rate High Income Fund | 12/11/17 | 12/08/17 | $0.004 |
Class I | 12/17/17 | 12/08/17 | $0.004 |
A total of 0.25% of the dividends distributed during the fiscal year was derived from interest on U.S. Government securities which is generally exempt from state income tax.
The fund designates $301,396,592 of distributions paid during the period January 1, 2017 to October 31, 2017 as qualifying to be taxed as interest-related dividends for nonresident alien shareholders.
The fund will notify shareholders in January 2018 of amounts for use in preparing 2017 income tax returns.
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Advisor Floating Rate High Income Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. FMR and the sub-advisers are referred to herein as the Investment Advisers. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established various standing committees (Committees), each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to review matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to all of the Fidelity funds.
At its July 2017 meeting, the Board unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and would be realized as the fund grows, and whether any economies of scale are appropriately shared with fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, which is part of the Fidelity family of funds.
Amendment to Group Fee Rate. The Board also approved an amendment to the management contract for the fund to add an additional breakpoint to the group fee schedule, effective October 1, 2017. The Board noted that the additional breakpoint would result in lower management fee rates as Fidelity's assets under management increase.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage. Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process. Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.In 2014, the Board formed an ad hoc Committee on Transfer Agency Fees to review the variety of transfer agency fee structures throughout the industry and Fidelity's competitive positioning with respect to industry participants. Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to Fidelity's investment research process, and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs; (iv) launching new share classes of existing funds; (v) eliminating purchase minimums and broadening eligibility requirements for certain lower-priced share classes; (vi) reducing management fees and total expenses for certain growth equity funds and index funds; (vii) lowering expense caps for certain existing funds and classes to reduce expenses borne by shareholders; (viii) eliminating short-term redemption fees for certain funds; (ix) introducing a new pricing structure for certain funds of funds that is expected to reduce overall expenses paid by shareholders; (x) rationalizing product lines and gaining increased efficiencies through proposals for fund mergers and share class consolidations; (xi) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; and (xii) implementing enhancements to further strengthen Fidelity's product line to increase investors' probability of success in achieving their investment goals, including retirement income goals. Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history.The Board took into account discussions with representatives of the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for the fund for different time periods, measured against a securities market index ("benchmark index") and a peer group of funds with similar objectives ("peer group"), if any. In its evaluation of fund investment performance, the Board gave particular attention to information indicating changes in performance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for any overperformance or underperformance.In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing fund share classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; issuer-specific information; and fund cash flows and other factors.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for the fund and an appropriate benchmark index and peer group for the most recent one-, three-, and five-year periods, as shown below. Returns are shown compared to the 25th percentile (top of box, 75% beaten) and 75th percentile (bottom of box, 25% beaten) of the peer universe.Fidelity Advisor Floating Rate High Income Fund
Fidelity Advisor Floating Rate High Income Fund
AFR-ANN-1217
1.750077.117
Fidelity® Floating Rate High Income Fund Annual Report October 31, 2017 Fidelity® Floating Rate High Income Fund is a class of Fidelity Advisor® Floating Rate High Income Fund |
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Contents
Board Approval of Investment Advisory Contracts and Management Fees |
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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 SECs web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SECs Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a funds total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended October 31, 2017 | Past 1 year | Past 5 years | Past 10 years |
Fidelity® Floating Rate High Income Fund | 4.70% | 3.41% | 3.90% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® Floating Rate High Income Fund, a class of the fund, on October 31, 2007.
The chart shows how the value of your investment would have changed, and also shows how the S&P®/LSTA Leveraged Performing Loan Index performed over the same period.
Period Ending Values | ||
| $14,664 | Fidelity® Floating Rate High Income Fund |
| $16,128 | S&P®/LSTA Leveraged Performing Loan Index |
Management's Discussion of Fund Performance
Market Recap: Floating-rate bank loans gained 5.25% for the 12 months ending October 31, 2017, as measured by the S&P/LSTA® Leveraged Performing Loan Index. Following the U.S. presidential election, U.S. Treasury yields spiked and investor sentiment shifted, anticipating higher interest rates and rising inflation in 2017. Within this environment, bank loans rose 1.20% in December, in what turned out to be their strongest monthly performance for the reporting period. The asset class registered more-modest, coupon-driven gains from January through May amid intensified refinancing activity, declining Treasury yields and growing uncertainty about the Trump administrations policy agenda. Loans registered somewhat stronger performance in July, bolstered by favorable corporate earnings and improved flows into retail funds. Following a flattish result in August, the asset class trended higher through October 31, helped by stronger economic data and renewed demand amid higher interest rates. Gains were broad-based across industries, with oil & gas (+13%), industrial equipment (+9%) and nonferrous metals/minerals (+8%) leading the way. On the downside, retailers (-2%) was the weakest performer among major index groups. From a credit-quality perspective, lower-quality loans did best, reflecting continued demand for higher-yielding securities. Comments from Portfolio Manager Eric Mollenhauer: For the year, the fund's share classes (excluding sales charges, if applicable) posted gains of roughly 4% to 5%, trailing the benchmark S&P/LSTA® Leveraged Performing Loan Index. The funds conservative credit-quality positioning reflective of my moderate-risk, core strategy and a cash stake that was modestly above my 5% target dampened performance versus the benchmark. That said, I was pleased with the funds result during a period when lower-quality credits led the market by a substantial margin. Over the past 12 months, the fund was overweight the BBB and BB credit-quality tiers and underweight loans rated B and CCC. In terms of individual holdings, the biggest relative detractors were United Kingdom-based energy services firm Expro and untimely positioning in CCC-rated index component Ocean Rig, a provider of drill-ships to energy companies. On the plus side, security selection among loans rated BB and B, and among non-rated securities, aided relative results. The top individual relative contributors were overweightings in TNT Crane, which provides rental cranes for use in the refining and petrochemical industries, and for-profit education provider Laureate Education. By period end, I had reduced the fund's cash allocation to roughly 4% of the portfolio.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Top Five Holdings as of October 31, 2017
(by issuer, excluding cash equivalents) | % of fund's net assets | % of fund's net assets 6 months ago |
Caesars Resort Collection LLC | 2.5 | 0.0 |
Laureate Education, Inc. | 1.7 | 1.7 |
Albertson's LLC | 1.6 | 2.0 |
Charter Communication Operating LLC | 1.5 | 1.6 |
Caesars Growth Properties Holdings LLC | 1.4 | 1.5 |
8.7 |
Top Five Market Sectors as of October 31, 2017
% of fund's net assets | % of fund's net assets 6 months ago | |
Technology | 12.5 | 11.3 |
Gaming | 9.9 | 6.0 |
Telecommunications | 8.8 | 8.9 |
Services | 8.0 | 9.2 |
Healthcare | 7.6 | 8.2 |
Quality Diversification (% of fund's net assets)
As of October 31, 2017 | ||
BBB | 3.4% | |
BB | 36.0% | |
B | 41.8% | |
CCC,CC,C | 3.9% | |
Not Rated | 10.5% | |
Equities | 0.4% | |
Short-Term Investments and Net Other Assets | 4.0% |
As of April 30, 2017 | ||
BBB | 3.4% | |
BB | 37.1% | |
B | 41.0% | |
CCC,CC,C | 4.8% | |
Not Rated | 6.5% | |
Equities | 0.3% | |
Short-Term Investments and Net Other Assets | 6.9% |
We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes.
Asset Allocation (% of fund's net assets)
As of October 31, 2017* | ||
Bank Loan Obligations | 89.0% | |
Nonconvertible Bonds | 6.6% | |
Common Stocks | 0.4% | |
Short-Term Investments and Net Other Assets (Liabilities) | 4.0% |
* Foreign investments 9.7%
As of April 30, 2017* | ||
Bank Loan Obligations | 86.5% | |
Nonconvertible Bonds | 6.3% | |
Common Stocks | 0.3% | |
Short-Term Investments and Net Other Assets (Liabilities) | 6.9% |
* Foreign investments 10.0%
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Investments October 31, 2017
Showing Percentage of Net Assets
Bank Loan Obligations - 89.0%(a) | |||
Principal Amount (000s) | Value (000s) | ||
Aerospace - 1.0% | |||
DAE Aviation Holdings, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.750% 4.99% 7/7/22 (b)(c) | $6,218 | $6,301 | |
Standardaero Aviation Holdings In Tranche B, term loan 3 month U.S. LIBOR + 3.750% 7/7/22 (c)(d) | 10,105 | 10,193 | |
TransDigm, Inc.: | |||
Tranche F, term loan 3 month U.S. LIBOR + 3.000% 4.274% 6/9/23 (b)(c) | 29,625 | 29,740 | |
Tranche G, term loan 3 month U.S. LIBOR + 3.000% 4.2623% 8/22/24 (b)(c) | 63,840 | 64,129 | |
TOTAL AEROSPACE | 110,363 | ||
Air Transportation - 0.1% | |||
Hanjin International Corp. Tranche B, term loan 3 month U.S. LIBOR + 2.500% 3.8539% 10/18/20 (b)(c) | 7,500 | 7,528 | |
Transplace Holding, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.250% 5.4878% 10/5/24 (b)(c) | 4,500 | 4,533 | |
TOTAL AIR TRANSPORTATION | 12,061 | ||
Automotive & Auto Parts - 0.8% | |||
Caliber Holdings Corp.: | |||
Tranche 1LN, term loan 3 month U.S. LIBOR + 3.000% 4.2423% 2/1/24 (b)(c) | 9,844 | 9,922 | |
Tranche 2LN, term loan 3 month U.S. LIBOR + 7.250% 8.4923% 2/1/25 (b)(c) | 2,710 | 2,768 | |
Chrysler Group LLC term loan 3 month U.S. LIBOR + 2.000% 3.24% 12/31/18 (b)(c) | 7,147 | 7,164 | |
North American Lifting Holdings, Inc.: | |||
Tranche 1LN, term loan 3 month U.S. LIBOR + 4.500% 5.8328% 11/27/20 (b)(c) | 16,369 | 15,387 | |
Tranche 2LN, term loan 3 month U.S. LIBOR + 9.000% 10.3328% 11/27/21 (b)(c) | 24,370 | 20,715 | |
The Gates Corp. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 4.5828% 3/31/24 (b)(c) | 13,269 | 13,353 | |
UOS LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 5.500% 6.7423% 4/18/23 (b)(c) | 13,217 | 13,613 | |
TOTAL AUTOMOTIVE & AUTO PARTS | 82,922 | ||
Banks & Thrifts - 0.1% | |||
Recess Holdings, Inc. Tranche B, term loan: | |||
3 month U.S. LIBOR + 3.750% 1.875% 9/29/24 (b)(c)(e) | 1,598 | 1,608 | |
3 month U.S. LIBOR + 3.750% 5.2539% 9/29/24 (b)(c) | 11,827 | 11,901 | |
TOTAL BANKS & THRIFTS | 13,509 | ||
Broadcasting - 1.2% | |||
CBS Radio, Inc.: | |||
term loan 3 month U.S. LIBOR + 3.500% 4.7379% 10/17/23 (b)(c) | 18,861 | 18,975 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.750% 3/2/24 (c)(d) | 12,500 | 12,531 | |
Clear Channel Communications, Inc. Tranche D, term loan 3 month U.S. LIBOR + 6.750% 8.0828% 1/30/19 (b)(c) | 53,680 | 40,126 | |
Entercom Radio, LLC Tranche B, term loan 3 month U.S. LIBOR + 3.500% 4.7323% 11/1/23 (b)(c) | 5,725 | 5,734 | |
ION Media Networks, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4.25% 12/18/20 (b)(c) | 19,752 | 19,875 | |
Nielsen Finance LLC Tranche B 4LN, term loan 3 month U.S. LIBOR + 2.000% 3.2378% 10/4/23 (b)(c) | 11,880 | 11,916 | |
Raycom Media, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.750% 3.9879% 8/23/24 (b)(c) | 16,060 | 16,180 | |
TOTAL BROADCASTING | 125,337 | ||
Building Materials - 0.6% | |||
Beacon Roofing Supply, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.250% 1/2/25 (c)(d) | 10,000 | 10,063 | |
HD Supply, Inc. Tranche B 4LN, term loan 3 month U.S. LIBOR + 2.500% 3.8328% 10/17/23 (b)(c) | 8,188 | 8,275 | |
Jeld-Wen, Inc. Tranche B 3LN, term loan 3 month U.S. LIBOR + 3.000% 4.3328% 7/1/22 (b)(c) | 14,565 | 14,674 | |
Traverse Midstream Partners Ll Tranche B, term loan 3 month U.S. LIBOR + 4.000% 5.33% 9/27/24 (b)(c) | 27,290 | 27,638 | |
TOTAL BUILDING MATERIALS | 60,650 | ||
Cable/Satellite TV - 2.5% | |||
Altice U.S. Finance SA Tranche B, term loan 3 month U.S. LIBOR + 2.250% 3.4923% 7/28/25 (b)(c) | 30,348 | 30,297 | |
Cable One, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.250% 3.57% 5/1/24 (b)(c) | 7,950 | 7,980 | |
Charter Communication Operating LLC: | |||
term loan: | |||
3 month U.S. LIBOR + 2.000% 3.25% 7/1/20 (b)(c) | 37,288 | 37,453 | |
3 month U.S. LIBOR + 2.000% 3.25% 1/3/21 (b)(c) | 74,809 | 75,100 | |
Tranche I, term loan 3 month U.S. LIBOR + 2.250% 3.5% 1/15/24(b)(c) | 55,507 | 55,903 | |
MCC Iowa LLC Tranche M, term loan 3 month U.S. LIBOR + 2.000% 3.21% 1/26/25 (b)(c) | 6,400 | 6,419 | |
Virgin Media Bristol LLC Tranche 1LN, term loan 3 month U.S. LIBOR + 2.750% 3.9889% 1/31/25 (b)(c) | 35,000 | 35,131 | |
WideOpenWest Finance LLC Tranche B, term loan 3 month U.S. LIBOR + 3.250% 4.4867% 8/19/23 (b)(c) | 24,500 | 24,531 | |
TOTAL CABLE/SATELLITE TV | 272,814 | ||
Capital Goods - 0.6% | |||
Doosan Bobcat Tranche B, term loan 3 month U.S. LIBOR + 2.750% 4.0828% 5/18/24 (b)(c) | 13,562 | 13,653 | |
Gardner Denver, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.750% 4.0828% 7/30/24 (b)(c) | 8,050 | 8,094 | |
Onex Wizard U.S. Acquisition, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4.2423% 3/13/22 (b)(c) | 30,148 | 30,349 | |
Zodiac Pool Solutions LLC Tranche B, term loan 3 month U.S. LIBOR + 4.000% 5.3328% 12/20/23 (b)(c) | 12,903 | 13,040 | |
TOTAL CAPITAL GOODS | 65,136 | ||
Chemicals - 2.1% | |||
Ashland LLC Tranche B, term loan 3 month U.S. LIBOR + 2.000% 3.2925% 5/17/24 (b)(c) | 15,461 | 15,554 | |
Ineos Styrolution U.S. Holding LLC Tranche B, term loan 3 month U.S. LIBOR + 2.750% 4.0828% 3/30/24 (b)(c) | 10,188 | 10,197 | |
Kraton Polymers LLC Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4.2423% 1/6/22 (b)(c) | 10,962 | 11,111 | |
MacDermid, Inc.: | |||
Tranche B 6LN, term loan 3 month U.S. LIBOR + 3.000% 4.2423% 6/7/23 (b)(c) | 25,448 | 25,591 | |
Tranche B 7LN, term loan 3 month U.S. LIBOR + 2.500% 3.7423% 6/7/20 (b)(c) | 13,008 | 13,108 | |
Methanol Holdings (TRINIDAD) Ltd. Tranche B, term loan 3 month U.S. LIBOR + 3.500% 4.735% 6/30/22 (b)(c) | 20,217 | 20,368 | |
Oxea Corp. Tranche B, term loan 3 month U.S. LIBOR + 3.500% 4.875% 10/12/24 (b)(c) | 12,750 | 12,770 | |
The Chemours Co. LLC Tranche B, term loan 3 month U.S. LIBOR + 2.500% 3.75% 5/12/22 (b)(c) | 17,878 | 18,020 | |
Trinseo Materials Operating SCA/Trinseo Materials Finance, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.500% 3.7423% 9/6/24 (b)(c) | 15,250 | 15,364 | |
Tronox Blocked Borrower LLC Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4.3231% 9/22/24 (b)(c) | 12,244 | 12,341 | |
Tronox Finance LLC Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4.3283% 9/22/24 (b)(c) | 28,256 | 28,480 | |
U.S. Coatings Acquisition, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.000% 3.3328% 6/1/24 (b)(c) | 17,486 | 17,574 | |
Univar, Inc. term loan 3 month U.S. LIBOR + 2.750% 3.985% 7/1/22 (b)(c) | 13,863 | 13,933 | |
Venator Materials LLC Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4.3801% 8/8/24 (b)(c) | 9,825 | 9,936 | |
TOTAL CHEMICALS | 224,347 | ||
Consumer Products - 1.0% | |||
CSM Bakery Supplies Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.000% 5.34% 7/3/20 (b)(c) | 9,781 | 9,566 | |
Hercules Achievement, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.500% 4.7378% 12/11/21 (b)(c) | 5,969 | 6,022 | |
HLF Financing U.S. LLC Tranche B, term loan 3 month U.S. LIBOR + 5.500% 6.7423% 2/15/23 (b)(c) | 20,875 | 21,162 | |
Prestige Brands, Inc. term loan 3 month U.S. LIBOR + 2.750% 3.985% 1/26/24 (b)(c) | 14,309 | 14,387 | |
Weight Watchers International, Inc. Tranche B 2LN, term loan 3 month U.S. LIBOR + 3.250% 4.5548% 4/2/20 (b)(c) | 59,786 | 59,173 | |
TOTAL CONSUMER PRODUCTS | 110,310 | ||
Consumer Services - 0.1% | |||
Optiv Security, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 4.5625% 2/1/24 (b)(c) | 9,426 | 8,876 | |
Containers - 1.6% | |||
Berry Global, Inc.: | |||
Tranche B, term loan 3 month U.S. LIBOR + 2.250% 3.4878% 1/19/24 (b)(c) | 9,950 | 9,980 | |
Tranche K, term loan 3 month U.S. LIBOR + 2.250% 3.4878% 2/8/20 (b)(c) | 50,196 | 50,435 | |
Tranche L, term loan 3 month U.S. LIBOR + 2.250% 3.4878% 1/6/21 (b)(c) | 8,592 | 8,631 | |
Tranche M, term loan 3 month U.S. LIBOR + 2.250% 3.4906% 10/1/22 (b)(c) | 19,591 | 19,676 | |
BWAY Holding Co. Tranche B, term loan 3 month U.S. LIBOR + 3.250% 4.5984% 4/3/24 (b)(c) | 8,229 | 8,281 | |
Charter Nex U.S., Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 4.4923% 5/16/24 (b)(c) | 9,661 | 9,717 | |
Consolidated Container Co. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.500% 4.735% 5/22/24 (b)(c) | 17,905 | 18,035 | |
Hostess Brands LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.500% 3.7423% 8/3/22 (b)(c) | 11,939 | 11,999 | |
Plastipak Packaging, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.750% 3.99% 10/14/24 (b)(c) | 6,360 | 6,405 | |
Reynolds Group Holdings, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.750% 3.985% 2/5/23 (b)(c) | 28,870 | 29,033 | |
TOTAL CONTAINERS | 172,192 | ||
Diversified Financial Services - 3.8% | |||
AlixPartners LLP Tranche B, term loan 3 month U.S. LIBOR + 2.750% 4.0828% 4/4/24 (b)(c) | 26,109 | 26,223 | |
ASP Chromaflo Intermediate Holdings, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.000% 5.2423% 11/18/23 (b)(c) | 11,880 | 11,932 | |
Bcp Renaissance Parent LLC Tranche B, term loan 3 month U.S. LIBOR + 4.000% 5.3801% 10/31/24 (b)(c) | 26,520 | 26,810 | |
Cypress Intermediate Holdings, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.000% 4.24% 4/27/24 (b)(c) | 25,616 | 25,712 | |
Delos Finance SARL Tranche B, term loan 3 month U.S. LIBOR + 2.000% 3.3328% 10/6/23 (b)(c) | 33,095 | 33,328 | |
Duff & Phelps Corp. Tranche B, term loan 3 month U.S. LIBOR + 3.250% 4.6067% 10/5/24 (b)(c) | 9,130 | 9,216 | |
Emerald Exposit Holding, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4.3328% 5/22/24 (b)(c) | 11,267 | 11,394 | |
Finco I LLC Tranche B, term loan 3 month U.S. LIBOR + 2.750% 2.75% 7/14/22 (b)(c) | 20,250 | 20,539 | |
Fly Funding II SARL Tranche B, term loan 3 month U.S. LIBOR + 2.250% 3.56% 2/9/23 (b)(c) | 22,076 | 22,140 | |
Flying Fortress Holdings, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.000% 3.3328% 10/30/22 (b)(c) | 67,865 | 68,402 | |
Focus Financial Partners LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 4.5735% 7/3/24 (b)(c) | 10,835 | 10,957 | |
HarbourVest Partners LLC Tranche B, term loan 3 month U.S. LIBOR + 2.500% 3.8586% 2/4/21 (b)(c) | 9,575 | 9,567 | |
IBC Capital U.S. LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.750% 5.0672% 9/11/21 (b)(c) | 20,266 | 20,266 | |
Kingpin Intermediate Holdings LLC Tranche B, term loan 3 month U.S. LIBOR + 4.250% 5.57% 7/3/24 (b)(c) | 7,481 | 7,533 | |
Nab Holdings LLC Tranche B, term loan 3 month U.S. LIBOR + 3.500% 4.8328% 6/30/24 (b)(c) | 13,746 | 13,843 | |
Peak 10 Holding Corp. Tranche B, term loan 3 month U.S. LIBOR + 3.500% 4.8106% 8/1/24 (b)(c) | 8,500 | 8,537 | |
Quest Software U.S. Holdings, Inc. Tranche B, term loan 3 month U.S. LIBOR + 6.000% 7.3801% 10/31/22 (b)(c) | 20,788 | 20,986 | |
TransUnion LLC Tranche B, term loan 3 month U.S. LIBOR + 2.000% 3.2423% 4/9/23 (b)(c) | 37,073 | 37,177 | |
UFC Holdings LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 4.49% 8/18/23 (b)(c) | 19,181 | 19,332 | |
TOTAL DIVERSIFIED FINANCIAL SERVICES | 403,894 | ||
Energy - 3.4% | |||
Alon U.S.A. Partners LP term loan 3 month U.S. LIBOR + 8.000% 9.25% 11/26/18 (b)(c) | 8,467 | 8,530 | |
Arctic LNG Carriers Ltd. Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.500% 5.7423% 5/18/23 (b)(c) | 19,950 | 20,125 | |
Bcp Raptor LLC Tranche B, term loan 3 month U.S. LIBOR + 4.250% 5.5222% 6/22/24 (b)(c) | 34,339 | 34,693 | |
California Resources Corp. Tranche 1LN, term loan 3 month U.S. LIBOR + 10.375% 11.6117% 12/31/21 (b)(c) | 41,720 | 44,675 | |
Chesapeake Energy Corp. Tranche 1LN, term loan 3 month U.S. LIBOR + 7.500% 8.8144% 8/23/21 (b)(c) | 32,415 | 34,738 | |
Chief Exploration & Development, LLC. Tranche 2LN, term loan 3 month U.S. LIBOR + 6.500% 7.9586% 5/16/21 (b)(c) | 3,000 | 2,930 | |
Citgo Holding, Inc. Tranche B, term loan 3 month U.S. LIBOR + 8.500% 9.835% 5/12/18 (b)(c) | 13,508 | 13,795 | |
Crestwood Holdings Partners LLC Tranche B, term loan 3 month U.S. LIBOR + 8.000% 9.2367% 6/19/19 (b)(c) | 17,655 | 17,649 | |
Empire Generating Co. LLC: | |||
Tranche B, term loan 3 month U.S. LIBOR + 4.250% 5.57% 3/14/21 (b)(c) | 8,549 | 7,737 | |
Tranche C, term loan 3 month U.S. LIBOR + 4.250% 5.57% 3/14/21 (b)(c) | 845 | 765 | |
Energy Transfer Equity LP Tranche B, term loan 3 month U.S. LIBOR + 2.000% 3.2367% 2/2/24 (b)(c) | 8,542 | 8,524 | |
Expro Finservices SARL Tranche B, term loan 3 month U.S. LIBOR + 4.750% 6.0661% 9/2/21 (b)(c) | 49,675 | 31,709 | |
Foresight Energy LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 5.750% 7.0828% 3/28/22 (b)(c) | 15,174 | 14,286 | |
FTS International, Inc. Tranche B, term loan 3 month U.S. LIBOR + 4.750% 5.9923% 4/16/21 (b)(c) | 18,875 | 18,394 | |
Gavilan Resources LLC Tranche 2LN, term loan 3 month U.S. LIBOR + 6.000% 7.2378% 3/1/24 (b)(c) | 17,995 | 17,410 | |
Gulf Finance LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 5.250% 6.59% 8/25/23 (b)(c) | 45,352 | 43,793 | |
MRP Generation Holdings LLC Tranche B, term loan 3 month U.S. LIBOR + 7.000% 8.3328% 10/18/22 (b)(c) | 5,752 | 5,400 | |
Pacific Drilling SA Tranche B, term loan 3 month U.S. LIBOR + 3.500% 4.875% 6/3/18 (b)(c) | 13,667 | 4,456 | |
Seadrill Operating LP Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4.3328% 2/21/21 (b)(c) | 43,172 | 32,749 | |
TOTAL ENERGY | 362,358 | ||
Entertainment/Film - 0.5% | |||
AMC Entertainment Holdings, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.250% 3.4889% 12/15/23 (b)(c) | 7,632 | 7,617 | |
AMC Entertainment, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.250% 3.4889% 12/15/22 (b)(c) | 4,949 | 4,948 | |
CDS U.S. Intermediate Holdings, Inc.: | |||
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.750% 5.0828% 7/8/22 (b)(c) | 14,330 | 14,432 | |
Tranche B 2LN, term loan 3 month U.S. LIBOR + 8.250% 9.5828% 7/8/23 (b)(c) | 5,305 | 5,285 | |
Digital Cinema Implementation Partners,LLC Tranche B, term loan 3 month U.S. LIBOR + 2.500% 3.8264% 5/17/21 (b)(c) | 8,193 | 8,254 | |
Lions Gate Entertainment Corp. term loan 3 month U.S. LIBOR + 3.000% 4.2417% 12/8/23 (b)(c) | 10,638 | 10,711 | |
TOTAL ENTERTAINMENT/FILM | 51,247 | ||
Environmental - 0.6% | |||
Clean Harbors, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.000% 3.235% 6/30/24 (b)(c) | 8,529 | 8,577 | |
Hd Supply Waterworks Ltd. Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4.455% 8/1/24 (b)(c) | 11,500 | 11,572 | |
The Brickman Group, Ltd. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.000% 4.3157% 12/18/20 (b)(c) | 18,154 | 18,260 | |
Wrangler Buyer Corp. Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4.2344% 9/28/24 (b)(c) | 11,070 | 11,163 | |
WTG Holdings III Corp. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.750% 5.0828% 1/15/21 (b)(c) | 13,706 | 13,809 | |
TOTAL ENVIRONMENTAL | 63,381 | ||
Food & Drug Retail - 2.8% | |||
Albertson's LLC Tranche B, term loan: | |||
3 month U.S. LIBOR + 2.750% 3.9923% 8/25/21 (b)(c) | 165,784 | 160,565 | |
3 month U.S. LIBOR + 3.000% 4.3172% 6/22/23 (b)(c) | 10,583 | 10,243 | |
GOBP Holdings, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.500% 4.8328% 10/21/21 (b)(c) | 3,940 | 3,922 | |
JBS U.S.A. Lux SA Tranche B, term loan 3 month U.S. LIBOR + 2.500% 3.7389% 10/30/22 (b)(c) | 7,876 | 7,703 | |
Lannett Co., Inc. Tranche B, term loan 3 month U.S. LIBOR + 5.375% 6.6173% 11/25/22 (b)(c) | 26,930 | 26,795 | |
Pizza Hut Holdings LLC Tranche B, term loan 3 month U.S. LIBOR + 2.000% 3.2367% 6/16/23 (b)(c) | 24,751 | 24,899 | |
RPI Finance Trust Tranche B 6LN, term loan 3 month U.S. LIBOR + 2.000% 3.3328% 3/27/23 (b)(c) | 48,373 | 48,549 | |
Smart & Final, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.500% 4.8328% 11/15/22 (b)(c) | 19,845 | 19,138 | |
TOTAL FOOD & DRUG RETAIL | 301,814 | ||
Food/Beverage/Tobacco - 1.1% | |||
Arctic Glacier Group Holdings, Inc. Tranche B, term loan 3 month U.S. LIBOR + 4.250% 5.485% 3/20/24 (b)(c) | 6,313 | 6,376 | |
Chobani LLC Tranche B, term loan 3 month U.S. LIBOR + 3.500% 4.7378% 10/7/23 (b)(c) | 22,502 | 22,764 | |
Pinnacle Foods Finance LLC Tranche B, term loan 3 month U.S. LIBOR + 2.000% 3.2322% 2/3/24 (b)(c) | 9,925 | 9,975 | |
Post Holdings, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.250% 3.4923% 5/24/24 (b)(c) | 51,725 | 51,975 | |
Shearer's Foods, Inc.: | |||
Tranche 2LN, term loan 3 month U.S. LIBOR + 6.750% 8.0828% 6/30/22 (b)(c) | 2,000 | 1,885 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.938% 5.2703% 6/30/21 (b)(c) | 1,000 | 1,000 | |
U.S. Foods, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.750% 3.985% 6/27/23 (b)(c) | 26,909 | 27,117 | |
TOTAL FOOD/BEVERAGE/TOBACCO | 121,092 | ||
Gaming - 9.8% | |||
AP Gaming I LLC term loan 3 month U.S. LIBOR + 5.500% 6.7423% 2/15/24 (b)(c) | 9,466 | 9,608 | |
Aristocrat Technologies, Inc. Tranche B 2LN, term loan 3 month U.S. LIBOR + 2.000% 3.3626% 10/20/21 (b)(c) | 25,707 | 25,857 | |
Boyd Gaming Corp. Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.500% 3.7017% 9/15/23 (b)(c) | 23,384 | 23,516 | |
Caesars Entertainment Resort Properties LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.500% 4.7423% 10/11/20 (b)(c) | 112,120 | 112,180 | |
Caesars Growth Properties Holdings LLC Tranche 1LN, term loan 3 month U.S. LIBOR + 3.000% 4.2423% 5/8/21 (b)(c) | 149,202 | 149,233 | |
Caesars Resort Collection LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.750% 9/28/24 (c)(d) | 270,000 | 271,636 | |
CityCenter Holdings LLC Tranche B, term loan 3 month U.S. LIBOR + 2.500% 3.7423% 4/18/24 (b)(c) | 9,975 | 10,016 | |
Cyan Blue Holdco 3 Ltd. Tranche B, term loan 3 month U.S. LIBOR + 3.500% 4.8328% 8/25/24 (b)(c) | 12,828 | 12,881 | |
Eldorado Resorts, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.250% 3.5% 4/17/24 (b)(c) | 25,133 | 25,164 | |
Golden Entertainment, Inc. Tranche B, term loan: | |||
3 month U.S. LIBOR + 3.000% 4.24% 10/20/24 (b)(c) | 40,000 | 40,017 | |
3 month U.S. LIBOR + 7.000% 10/20/25 (c)(d) | 7,500 | 7,556 | |
Golden Nugget, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 4.5264% 10/4/23 (b)(c) | 120,705 | 121,882 | |
Las Vegas Sands LLC Tranche B, term loan 3 month U.S. LIBOR + 2.000% 3.235% 3/29/24 (b)(c) | 35,785 | 35,984 | |
MGM Mirage, Inc. Tranche A, term loan 3 month U.S. LIBOR + 2.250% 3.4923% 4/25/21 (b)(c) | 13,865 | 13,871 | |
Mohegan Tribal Gaming Authority Tranche B, term loan 3 month U.S. LIBOR + 4.000% 5.2423% 10/14/23 (b)(c) | 10,603 | 10,717 | |
Penn National Gaming, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.500% 3.7423% 1/19/24 (b)(c) | 5,234 | 5,266 | |
Scientific Games Corp. Tranche B, term loan 3 month U.S. LIBOR + 3.250% 4.5159% 8/14/24 (b)(c) | 75,545 | 76,384 | |
Seminole Tribe Florida Tranche B, term loan 3 month U.S. LIBOR + 2.000% 3.2378% 7/6/24 (b)(c) | 24,000 | 24,101 | |
Station Casinos LLC Tranche B, term loan 3 month U.S. LIBOR + 2.500% 3.74% 6/8/23 (b)(c) | 54,741 | 54,910 | |
Wynn America LLC Tranche A 1LN, term loan 3 month U.S. LIBOR + 1.750% 3.1174% 12/31/21 (b)(c) | 13,235 | 13,202 | |
Yonkers Racing Corp. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 4.5% 5/31/24 (b)(c) | 6,499 | 6,512 | |
TOTAL GAMING | 1,050,493 | ||
Healthcare - 6.6% | |||
Albany Molecular Research, Inc. Tranche B, term loan: | |||
3 month U.S. LIBOR + 3.250% 4.5828% 8/30/24 (b)(c) | 8,640 | 8,699 | |
3 month U.S. LIBOR + 7.000% 8.3328% 8/30/25 (b)(c) | 4,545 | 4,619 | |
Community Health Systems, Inc.: | |||
Tranche G, term loan 3 month U.S. LIBOR + 2.750% 4.0669% 12/31/19 (b)(c) | 43,633 | 42,585 | |
Tranche H, term loan 3 month U.S. LIBOR + 3.000% 4.3169% 1/27/21 (b)(c) | 72,943 | 70,498 | |
DaVita HealthCare Partners, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.750% 3.9923% 6/24/21 (b)(c) | 46,622 | 46,971 | |
Envision Healthcare Corp. Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4.25% 12/1/23 (b)(c) | 37,944 | 38,086 | |
Ghx Ultimate Parent Corp. Tranche B, term loan 3 month U.S. LIBOR + 3.250% 4.5828% 6/30/24 (b)(c) | 9,830 | 9,904 | |
HCA Holdings, Inc.: | |||
Tranche B 8LN, term loan 3 month U.S. LIBOR + 2.250% 3.4923% 2/15/24 (b)(c) | 19,850 | 19,974 | |
Tranche B 9LN, term loan 3 month U.S. LIBOR + 2.000% 3.2423% 3/18/23 (b)(c) | 59,781 | 60,046 | |
Innoviva, Inc. Tranche B, term loan 3 month U.S. LIBOR + 4.500% 5.8167% 8/18/22 (b)(c) | 19,840 | 19,989 | |
Kindred Healthcare, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.500% 4.875% 4/9/21 (b)(c) | 1,924 | 1,929 | |
MPH Acquisition Holdings LLC Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4.3328% 6/7/23 (b)(c) | 18,184 | 18,353 | |
Onex Schumacher Finance LP Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.000% 5.2423% 7/31/22 (b)(c) | 3,447 | 3,440 | |
Ortho-Clinical Diagnostics, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.750% 5.0828% 6/30/21 (b)(c) | 86,256 | 86,652 | |
PAREXEL International Corp. Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4.2423% 8/11/24 (b)(c) | 40,750 | 41,114 | |
Press Ganey Holdings, Inc.: | |||
Tranche 2LN, term loan 3 month U.S. LIBOR + 7.250% 8.485% 10/21/24 (b)(c) | 3,367 | 3,409 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.000% 4.2423% 10/21/23 (b)(c) | 15,384 | 15,499 | |
Project Ruby Ultimate Parent Corp. Tranche B, term loan 3 month U.S. LIBOR + 3.750% 4.9923% 2/9/24 (b)(c) | 3,977 | 3,995 | |
Select Medical Corp. Tranche B, term loan 3 month U.S. LIBOR + 3.500% 4.8502% 3/6/24 (b)(c) | 9,950 | 10,062 | |
U.S. Anesthesia Partners, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.250% 4.485% 6/23/24 (b)(c) | 7,481 | 7,491 | |
U.S. Renal Care, Inc.: | |||
Tranche 2LN, term loan 3 month U.S. LIBOR + 8.000% 9.3328% 12/31/23 (b)(c) | 5,000 | 4,850 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.250% 5.5828% 12/31/22 (b)(c) | 65,476 | 63,196 | |
Valeant Pharmaceuticals International, Inc. Tranche B, term loan 3 month U.S. LIBOR + 4.750% 5.99% 4/1/22 (b)(c) | 99,820 | 102,004 | |
Vizient, Inc. Tranche B 3LN, term loan 3 month U.S. LIBOR + 3.500% 4.735% 2/11/23 (b)(c) | 25,807 | 25,962 | |
TOTAL HEALTHCARE | 709,327 | ||
Homebuilders/Real Estate - 1.5% | |||
Americold Realty Operating Partnership LP Tranche B, term loan 3 month U.S. LIBOR + 3.750% 4.9923% 12/1/22 (b)(c) | 17,070 | 17,262 | |
DTZ U.S. Borrower LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 4.5864% 11/4/21 (b)(c) | 26,902 | 27,049 | |
Lightstone Holdco LLC: | |||
Tranche B, term loan 3 month U.S. LIBOR + 4.500% 5.7423% 1/30/24 (b)(c) | 17,070 | 17,129 | |
Tranche C, term loan 3 month U.S. LIBOR + 4.500% 5.7423% 1/30/24 (b)(c) | 1,064 | 1,067 | |
MGM Growth Properties Operating Partner LP Tranche B, term loan 3 month U.S. LIBOR + 2.250% 3.4923% 4/25/23 (b)(c) | 39,843 | 40,049 | |
Realogy Group LLC term loan 3 month U.S. LIBOR + 2.250% 3.4917% 7/20/22 (b)(c) | 42,530 | 42,769 | |
Uniti Group, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4.2423% 10/24/22 (b)(c) | 19,552 | 18,758 | |
TOTAL HOMEBUILDERS/REAL ESTATE | 164,083 | ||
Hotels - 1.9% | |||
ESH Hospitality, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.500% 3.7423% 8/30/23 (b)(c) | 16,830 | 16,926 | |
Four Seasons Holdings, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.500% 3.735% 11/30/23 (b)(c) | 58,061 | 58,446 | |
Hilton Worldwide Finance LLC Tranche B 2LN, term loan 3 month U.S. LIBOR + 2.000% 3.2379% 10/25/23 (b)(c) | 70,883 | 71,326 | |
La Quinta Intermediate Holdings LLC Tranche B LN, term loan 3 month U.S. LIBOR + 2.750% 4.1092% 4/14/21 (b)(c) | 19,250 | 19,329 | |
Playa Resorts Holding BV Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4.3699% 4/27/24 (b)(c) | 29,845 | 29,888 | |
Ryman Hospitality Properties, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.250% 3.56% 5/11/24 (b)(c) | 9,950 | 10,018 | |
TOTAL HOTELS | 205,933 | ||
Insurance - 2.7% | |||
Acrisure LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 5.000% 6.2722% 11/22/23 (b)(c) | 41,317 | 41,472 | |
Alliant Holdings Intermediate LLC Tranche B, term loan 3 month U.S. LIBOR + 3.250% 4.4896% 8/14/22 (b)(c) | 27,229 | 27,411 | |
AmWINS Group, Inc.: | |||
Tranche 2LN, term loan 3 month U.S. LIBOR + 6.750% 7.985% 1/25/25 (b)(c) | 1,925 | 1,959 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.750% 3.985% 1/25/24 (b)(c) | 13,895 | 13,945 | |
Asurion LLC: | |||
Tranche B 5LN, term loan 3 month U.S. LIBOR + 3.000% 4.2423% 11/3/23 (b)(c) | 48,570 | 48,965 | |
Tranche B, term loan: | |||
3 month U.S. LIBOR + 2.750% 3.9923% 8/4/22 (b)(c) | 41,118 | 41,420 | |
3 month U.S. LIBOR + 6.000% 7.235% 8/4/25 (b)(c) | 30,800 | 31,782 | |
HUB International Ltd. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.000% 4.3117% 10/2/20 (b)(c) | 33,538 | 33,787 | |
USI, Inc. Tranche B, term loan: | |||
3 month U.S. LIBOR + 3.000% 5/16/24 (c)(d) | 7,000 | 6,991 | |
3 month U.S. LIBOR + 3.000% 4.3142% 5/16/24 (b)(c) | 32,245 | 32,312 | |
VF Holdings Corp. term loan 3 month U.S. LIBOR + 3.250% 4.4923% 6/30/23 (b)(c) | 14,850 | 14,943 | |
TOTAL INSURANCE | 294,987 | ||
Leisure - 2.1% | |||
24 Hour Fitness Worldwide, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.750% 5.085% 5/30/21 (b)(c) | 23,323 | 23,323 | |
Delta 2 SARL Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4.2423% 2/1/24 (b)(c) | 73,480 | 74,015 | |
Equinox Holdings, Inc.: | |||
Tranche 2LN, term loan 3 month U.S. LIBOR + 7.000% 8.2423% 9/8/24 (b)(c) | 7,325 | 7,453 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 4.4923% 3/8/24 (b)(c) | 19,895 | 20,038 | |
Fitness International LLC Tranche B, term loan 3 month U.S. LIBOR + 4.250% 4.735% 7/1/20 (b)(c) | 8,253 | 8,369 | |
Hayward Industries, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.500% 4.7423% 8/4/24 (b)(c) | 11,070 | 11,162 | |
Intrawest Resorts Holdings, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 4.4923% 7/31/24 (b)(c) | 28,735 | 29,022 | |
LTF Merger Sub, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4.3169% 6/10/22 (b)(c) | 31,607 | 31,634 | |
SeaWorld Parks & Entertainment, Inc. Tranche B 5LN, term loan 3 month U.S. LIBOR + 3.000% 4.3328% 3/31/24 (b)(c) | 13,482 | 13,229 | |
SMG Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.500% 4.7423% 2/27/20 (b)(c) | 1,690 | 1,691 | |
TOTAL LEISURE | 219,936 | ||
Metals/Mining - 0.7% | |||
American Rock Salt Co. LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.750% 4.9923% 5/20/21 (b)(c) | 8,603 | 8,585 | |
Murray Energy Corp. Tranche B 2LN, term loan 3 month U.S. LIBOR + 7.250% 8.5828% 4/16/20 (b)(c) | 75,484 | 67,100 | |
Walter Energy, Inc. Tranche B, term loan 3 month U.S. LIBOR + 4.800% 0% 4/1/18 (c)(f)(g) | 32,780 | 0 | |
TOTAL METALS/MINING | 75,685 | ||
Paper - 0.5% | |||
Caraustar Industries, Inc. Tranche B, term loan 3 month U.S. LIBOR + 5.500% 6.8328% 3/14/22 (b)(c) | 27,268 | 27,461 | |
Flex Acquisition Co., Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.000% 4.335% 12/29/23 (b)(c) | 30,716 | 30,922 | |
TOTAL PAPER | 58,383 | ||
Publishing/Printing - 2.9% | |||
Cengage Learning, Inc. Tranche B, term loan 3 month U.S. LIBOR + 4.250% 5.485% 6/7/23 (b)(c) | 55,563 | 51,969 | |
Getty Images, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.500% 4.8328% 10/18/19 (b)(c) | 44,319 | 38,630 | |
Harland Clarke Holdings Corp.: | |||
Tranche B 5LN, term loan 3 month U.S. LIBOR + 6.000% 7.3328% 12/31/21 (b)(c) | 12,331 | 12,327 | |
Tranche B 6LN, term loan 3 month U.S. LIBOR + 5.500% 6.8328% 2/9/22 (b)(c) | 21,282 | 21,279 | |
Tranche B 7LN, term loan 3 month U.S. LIBOR + 4.750% 11/3/23 (c)(d) | 33,868 | 33,980 | |
Houghton Mifflin Harcourt Publishing, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4.2423% 5/29/21 (b)(c) | 34,146 | 32,502 | |
McGraw-Hill Global Education Holdings, LLC term loan 3 month U.S. LIBOR + 4.000% 5.2423% 5/4/22 (b)(c) | 54,196 | 54,049 | |
Merrill Communications LLC Tranche B, term loan 3 month U.S. LIBOR + 5.250% 6.6301% 6/1/22 (b)(c) | 15,502 | 15,657 | |
Multi-Color Corp. Tranche B, term loan 3 month U.S. LIBOR + 2.250% 9/20/24 (c)(d) | 9,965 | 10,027 | |
Proquest LLC Tranche B, term loan 3 month U.S. LIBOR + 3.750% 4.9923% 10/24/21 (b)(c) | 6,858 | 6,935 | |
Springer Science+Business Media Deutschland GmbH: | |||
Tranche B 13LN, term loan 3 month U.S. LIBOR + 3.500% 8/15/22 (c)(d) | 3,000 | 3,008 | |
Tranche B 9LN, term loan 3 month U.S. LIBOR + 3.500% 4.7423% 8/14/20 (b)(c) | 26,436 | 26,529 | |
TOTAL PUBLISHING/PRINTING | 306,892 | ||
Restaurants - 0.9% | |||
Burger King Worldwide, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.250% 3.5276% 2/17/24 (b)(c) | 45,319 | 45,364 | |
CEC Entertainment, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4.2423% 2/14/21 (b)(c) | 31,653 | 31,516 | |
Red Lobster Hospitality LLC Tranche B, term loan 3 month U.S. LIBOR + 5.250% 6.4917% 7/28/21 (b)(c) | 18,115 | 18,387 | |
TOTAL RESTAURANTS | 95,267 | ||
Services - 7.7% | |||
Abacus Innovations Corp. Tranche B, term loan 3 month U.S. LIBOR + 2.000% 3.25% 8/16/23 (b)(c) | 13,842 | 13,932 | |
Abg Intermediate Holdings 2 LLC Tranche B, term loan 3 month U.S. LIBOR + 3.500% 4.8328% 9/29/24 (b)(c) | 7,565 | 7,641 | |
Acosta, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.250% 4.4923% 9/26/21 (b)(c) | 15,636 | 13,760 | |
Almonde, Inc.: | |||
Tranche 2LN, term loan 3 month U.S. LIBOR + 7.250% 8.5669% 6/13/25 (b)(c) | 14,150 | 14,012 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.500% 4.8169% 6/13/24 (b)(c) | 54,090 | 53,871 | |
Ancestry.Com Operations, Inc.: | |||
Tranche 2LN, term loan 3 month U.S. LIBOR + 8.250% 9.49% 10/19/24 (b)(c) | 4,105 | 4,197 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 4.49% 10/19/23 (b)(c) | 32,175 | 32,510 | |
Aramark Services, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.000% 3.235% 3/28/24 (b)(c) | 32,243 | 32,344 | |
Avatar Purchaser, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.500% 9/7/24 (c)(d) | 7,000 | 7,009 | |
Brand Energy & Infrastructure Services, Inc. Tranche B, term loan 3 month U.S. LIBOR + 4.250% 5.6149% 6/21/24 (b)(c) | 28,678 | 28,853 | |
Bright Horizons Family Solutions Tranche B, term loan 3 month U.S. LIBOR + 2.250% 3.485% 11/7/23 (b)(c) | 9,863 | 9,917 | |
Cactus Wellhead LLC Tranche B, term loan 3 month U.S. LIBOR + 6.000% 7.3169% 7/31/20 (b)(c) | 15,337 | 15,050 | |
Coinmach Service Corp. Tranche B, term loan 3 month U.S. LIBOR + 3.750% 4.9879% 11/14/22 (b)(c) | 42,388 | 42,679 | |
Creative Artists Agency LLC Tranche B, term loan 3 month U.S. LIBOR + 3.500% 4.7389% 2/15/24 (b)(c) | 5,601 | 5,657 | |
KAR Auction Services, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.500% 3.875% 3/9/23 (b)(c) | 12,566 | 12,650 | |
Karman Buyer Corp. Tranche 2LN, term loan 3 month U.S. LIBOR + 6.500% 7.878% 7/25/22 (b)(c) | 2,045 | 1,704 | |
KUEHG Corp.: | |||
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.750% 5.0828% 8/13/22 (b)(c) | 26,938 | 27,056 | |
Tranche B, term loan 3 month U.S. LIBOR + 8.250% 9.5828% 8/22/25 (b)(c) | 6,500 | 6,484 | |
Laureate Education, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.500% 5.7423% 4/26/24 (b)(c) | 182,627 | 183,427 | |
Lineage Logistics Holdings, LLC. Tranche B, term loan 3 month U.S. LIBOR + 3.500% 4.7423% 4/7/21 (b)(c) | 62,076 | 62,250 | |
Prime Security Services Borrower LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.750% 3.985% 5/2/22 (b)(c) | 102,028 | 102,863 | |
SAI Global GP Tranche B, term loan 3 month U.S. LIBOR + 4.500% 5.8328% 12/8/23 (b)(c)(g) | 13,647 | 13,749 | |
Science Applications International Corp. Tranche B, term loan 3 month U.S. LIBOR + 2.500% 3.8125% 5/4/22 (b)(c) | 6,226 | 6,280 | |
The GEO Group, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.250% 3.57% 3/23/24 (b)(c) | 11,507 | 11,502 | |
The ServiceMaster Co. Tranche B, term loan 3 month U.S. LIBOR + 2.500% 3.7423% 11/8/23 (b)(c) | 25,803 | 25,912 | |
Thomson Reuters IP&S Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.500% 4.7423% 10/3/23 (b)(c) | 26,696 | 26,874 | |
Tmk Hawk Parent Corp. Tranche B, term loan: | |||
3 month U.S. LIBOR + 3.500% 9/26/24 (c)(d) | 433 | 437 | |
3 month U.S. LIBOR + 3.500% 4.8799% 9/26/24 (b)(c) | 9,692 | 9,792 | |
Wash Multifamily Acquisition, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 4.485% 5/14/22 (b)(c) | 14,746 | 14,819 | |
West Corp. Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.000% 5.2378% 10/10/24 (b)(c) | 8,819 | 8,835 | |
Xerox Business Services LLC: | |||
term loan 3 month U.S. LIBOR + 2.250% 3.4923% 12/7/21 (b)(c) | 11,364 | 11,364 | |
Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4.2423% 12/7/23 (b)(c) | 20,917 | 21,087 | |
TOTAL SERVICES | 828,517 | ||
Steel - 0.2% | |||
JMC Steel Group, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.750% 4.0731% 6/14/21 (b)(c) | 20,370 | 20,503 | |
Super Retail - 3.7% | |||
Academy Ltd. Tranche B, term loan 3 month U.S. LIBOR + 4.000% 5.2642% 7/2/22 (b)(c) | 30,337 | 22,304 | |
Bass Pro Shops LLC. Tranche B, term loan 3 month U.S. LIBOR + 5.000% 6.2417% 9/25/24 (b)(c) | 125,930 | 122,179 | |
BJ's Wholesale Club, Inc.: | |||
Tranche 2LN, term loan 3 month U.S. LIBOR + 7.500% 8.7378% 2/3/25 (b)(c) | 14,000 | 13,510 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.750% 4.9878% 2/3/24 (b)(c) | 63,147 | 61,489 | |
Davids Bridal, Inc. Tranche B, term loan 3 month U.S. LIBOR + 4.000% 5.34% 10/11/19 (b)(c) | 9,532 | 7,845 | |
Harbor Freight Tools U.S.A., Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.250% 4.4923% 8/19/23 (b)(c) | 18,888 | 18,993 | |
JC Penney Corp., Inc. Tranche B, term loan 3 month U.S. LIBOR + 4.250% 5.5678% 6/23/23 (b)(c) | 43,328 | 39,657 | |
Party City Holdings, Inc. term loan 3 month U.S. LIBOR + 3.000% 4.4107% 8/19/22 (b)(c) | 28,286 | 28,357 | |
PETCO Animal Supplies, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.000% 4.3801% 1/26/23 (b)(c) | 31,541 | 25,746 | |
PetSmart, Inc. term loan 3 month U.S. LIBOR + 3.000% 4.24% 3/11/22 (b)(c) | 31,857 | 27,169 | |
Red Ventures LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.000% 10/18/24 (c)(d) | 25,000 | 24,833 | |
Sports Authority, Inc. Tranche B, term loan 3 month U.S. LIBOR + 6.000% 0% 11/16/17 (c)(f) | 4,215 | 42 | |
TOTAL SUPER RETAIL | 392,124 | ||
Technology - 12.0% | |||
Aptean, Inc.: | |||
Tranche 2LN, term loan 3 month U.S. LIBOR + 9.500% 10.84% 12/20/23 (b)(c) | 2,500 | 2,509 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.250% 5.59% 12/20/22 (b)(c) | 12,990 | 13,144 | |
Bright Bidco BV Tranche B, term loan 3 month U.S. LIBOR + 4.500% 5.817% 6/30/24 (b)(c) | 17,955 | 18,187 | |
Cavium, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.250% 3.4879% 8/16/22 (b)(c) | 11,172 | 11,214 | |
Ceridian HCM Holding, Inc. Tranche B 2LN, term loan 3 month U.S. LIBOR + 3.500% 4.7389% 9/15/20 (b)(c) | 23,147 | 23,147 | |
Cologix Holdings, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.000% 4.4561% 3/20/24 (b)(c) | 4,478 | 4,479 | |
Computer Discount Warehouse (CDW) LLC Tranche B, term loan 3 month U.S. LIBOR + 2.000% 3.34% 8/17/23 (b)(c) | 31,227 | 31,432 | |
Compuware Corp.: | |||
term loan 3 month U.S. LIBOR + 8.250% 9.6161% 12/15/22 (b)(c) | 5,103 | 5,167 | |
Tranche B 3LN, term loan 3 month U.S. LIBOR + 4.250% 5.63% 12/15/21 (b)(c) | 56,200 | 56,972 | |
Datapipe, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.750% 6.0828% 3/15/19 (b)(c) | 10,553 | 10,597 | |
Dell International LLC Tranche B, term loan 3 month U.S. LIBOR + 2.000% 3.25% 9/7/23 (b)(c) | 32,265 | 32,338 | |
Digicert Holdings, Inc. Tranche B, term loan 3 month U.S. LIBOR + 4.750% 6.1301% 10/31/24 (b)(c) | 35,575 | 35,960 | |
EIG Investors Corp. Tranche B, term loan 3 month U.S. LIBOR + 4.000% 5.3178% 2/9/23 (b)(c) | 52,158 | 52,701 | |
Electro Rent Corp. Tranche B 1LN, term loan 3 month U.S. LIBOR + 5.000% 6.2722% 1/31/24 (b)(c) | 14,888 | 15,055 | |
Epicor Software Corp. Tranche B, term loan 3 month U.S. LIBOR + 3.750% 5% 6/1/22 (b)(c) | 33,168 | 33,340 | |
First Data Corp.: | |||
Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.500% 3.7379% 4/26/24 (b)(c) | 19,192 | 19,267 | |
Tranche B, term loan 3 month U.S. LIBOR + 2.250% 3.4879% 7/10/22 (b)(c) | 111,376 | 111,641 | |
Global Payments, Inc. Tranche B 2LN, term loan 3 month U.S. LIBOR + 2.000% 3.2423% 4/22/23 (b)(c) | 19,793 | 19,871 | |
Go Daddy Operating Co. LLC Tranche B, term loan 3 month U.S. LIBOR + 2.500% 3.7423% 2/15/24 (b)(c) | 26,405 | 26,537 | |
Hyland Software, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 4.4923% 7/1/22 (b)(c) | 10,628 | 10,726 | |
Infor U.S., Inc. Tranche B 6LN, term loan 3 month U.S. LIBOR + 2.750% 4.0828% 2/1/22 (b)(c) | 25,775 | 25,802 | |
Information Resources, Inc.: | |||
Tranche 2LN, term loan 3 month U.S. LIBOR + 8.250% 9.6174% 1/18/25 (b)(c) | 7,500 | 7,509 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.250% 5.6174% 1/18/24 (b)(c) | 21,054 | 21,274 | |
Inmar, Inc.: | |||
Tranche 2LN, term loan 3 month U.S. LIBOR + 8.000% 9.2722% 5/1/25 (b)(c) | 2,280 | 2,280 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.500% 4.7722% 5/1/24 (b)(c) | 7,965 | 7,985 | |
Kronos, Inc.: | |||
term loan 3 month U.S. LIBOR + 8.250% 9.5606% 11/1/24 (b)(c) | 30,000 | 30,848 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.500% 4.8114% 11/1/23 (b)(c) | 49,367 | 49,697 | |
Landesk Group, Inc. term loan: | |||
3 month U.S. LIBOR + 4.250% 5.5% 1/20/24 (b)(c) | 32,557 | 31,743 | |
3 month U.S. LIBOR + 9.000% 10.25% 1/20/25 (b)(c) | 5,000 | 4,841 | |
Lux FinCo U.S. SPV Tranche B 3LN, term loan 3 month U.S. LIBOR + 3.500% 4.7379% 10/16/22 (b)(c) | 10,704 | 10,597 | |
MA FinanceCo. LLC Tranche B 3LN, term loan: | |||
3 month U.S. LIBOR + 2.750% 3.9878% 6/21/24 (b)(c) | 56,781 | 56,959 | |
3 month U.S. LIBOR + 2.750% 3.9889% 6/21/24 (b)(c) | 8,222 | 8,247 | |
Mcafee LLC Tranche B, term loan: | |||
3 month U.S. LIBOR + 4.500% 5.8328% 9/29/24 (b)(c) | 43,430 | 43,694 | |
3 month U.S. LIBOR + 8.500% 9.8328% 9/29/25 (b)(c) | 7,500 | 7,613 | |
Mh Sub I LLC Tranche B, term loan 3 month U.S. LIBOR + 3.750% 5.07% 9/15/24 (b)(c) | 15,500 | 15,397 | |
Microsemi Corp. Tranche B, term loan 3 month U.S. LIBOR + 2.250% 3.4878% 1/15/23 (b)(c) | 9,708 | 9,743 | |
Rackspace Hosting, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4.3106% 11/3/23 (b)(c) | 45,517 | 45,488 | |
Renaissance Learning, Inc.: | |||
Tranche 1LN, term loan 3 month U.S. LIBOR + 3.750% 5.0828% 4/9/21 (b)(c) | 14,508 | 14,593 | |
Tranche 2LN, term loan 3 month U.S. LIBOR + 7.000% 8.3328% 4/9/22 (b)(c) | 19,080 | 19,271 | |
SolarWinds Holdings, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.500% 4.7423% 2/5/23 (b)(c) | 10,369 | 10,432 | |
Solera LLC Tranche B, term loan 3 month U.S. LIBOR + 3.250% 4.485% 3/3/23 (b)(c) | 32,642 | 32,878 | |
Sophia L.P. term loan 3 month U.S. LIBOR + 3.250% 4.5828% 9/30/22 (b)(c) | 26,563 | 26,514 | |
SS&C Technologies, Inc.: | |||
Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.250% 3.4923% 7/8/22 (b)(c) | 14,910 | 14,989 | |
Tranche B 2LN, term loan 3 month U.S. LIBOR + 2.250% 3.4923% 7/8/22 (b)(c) | 718 | 722 | |
Sybil Software LLC. Tranche B, term loan 3 month U.S. LIBOR + 3.250% 4.5828% 9/30/23 (b)(c) | 37,872 | 38,061 | |
Syniverse Holdings, Inc. Tranche B, term loan: | |||
3 month U.S. LIBOR + 3.000% 4.3111% 4/23/19 (b)(c) | 9,368 | 9,113 | |
3 month U.S. LIBOR + 3.000% 4.3328% 4/23/19 (b)(c) | 16,107 | 15,669 | |
Tempo Acquisition LLC Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4.2423% 5/1/24 (b)(c) | 41,785 | 41,907 | |
TIBCO Software, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.500% 4.75% 12/4/20 (b)(c) | 11,235 | 11,298 | |
Travelclick, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.000% 5.235% 5/12/21 (b)(c) | 7,721 | 7,759 | |
TTM Technologies, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.500% 3.7417% 9/28/24 (b)(c) | 15,000 | 15,103 | |
Uber Technologies, Inc. Tranche B, term loan 3 month U.S. LIBOR + 4.000% 5.2379% 7/13/23 (b)(c) | 15,265 | 15,361 | |
Vantiv LLC: | |||
Tranche B 3LN, term loan 3 month U.S. LIBOR + 2.000% 3.2367% 10/14/23 (b)(c) | 12,720 | 12,805 | |
Tranche B, term loan: | |||
3 month U.S. LIBOR + 2.000% 8/7/24 (c)(d) | 4,383 | 4,397 | |
3 month U.S. LIBOR + 2.000% 3.2389% 8/7/24 (b)(c) | 15,617 | 15,712 | |
Veritas U.S., Inc. Tranche B, term loan 3 month U.S. LIBOR + 4.500% 5.8328% 1/27/23 (b)(c) | 36,073 | 36,337 | |
Vfh Parent LLC Tranche B, term loan 3 month U.S. LIBOR + 3.750% 5.0606% 12/30/21 (b)(c) | 11,189 | 11,292 | |
WEX, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.750% 3.985% 7/1/23 (b)(c) | 18,302 | 18,495 | |
TOTAL TECHNOLOGY | 1,286,709 | ||
Telecommunications - 7.7% | |||
Altice Financing SA Tranche B, term loan: | |||
3 month U.S. LIBOR + 2.750% 1/5/26 (c)(d) | 10,000 | 10,000 | |
3 month U.S. LIBOR + 2.750% 4.1092% 7/15/25 (b)(c) | 10,945 | 10,940 | |
Blucora, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.750% 5.0731% 5/22/24 (b)(c) | 5,133 | 5,172 | |
Cincinnati Bell, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.750% 4.985% 10/2/24(b)(c) | 15,250 | 15,433 | |
Consolidated Communications, Inc. Tranche B 2LN, term loan 3 month U.S. LIBOR + 3.000% 4.25% 10/5/23 (b)(c) | 20,475 | 20,137 | |
Digicel International Finance Ltd. Tranche B, term loan 3 month U.S. LIBOR + 3.750% 5.07% 5/25/24 (b)(c) | 31,935 | 32,182 | |
Evo Payments International LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 5.000% 6.25% 12/20/23 (b)(c) | 17,905 | 18,134 | |
GTT Communications, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.250% 4.5% 1/9/24 (b)(c) | 6,967 | 7,011 | |
Intelsat Jackson Holdings SA Tranche B 2LN, term loan 3 month U.S. LIBOR + 2.750% 4.0711% 6/30/19 (b)(c) | 133,175 | 132,712 | |
Level 3 Financing, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.250% 3.4889% 2/22/24 (b)(c) | 79,500 | 79,770 | |
LTS Buyer LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 6.5% 4/11/20 (b)(c) | 49,889 | 49,983 | |
Neptune Finco Corp. Tranche B, term loan 3 month U.S. LIBOR + 2.250% 3.4889% 7/17/25 (b)(c) | 26,150 | 26,108 | |
Neustar, Inc.: | |||
Tranche 2LN, term loan 3 month U.S. LIBOR + 8.000% 9.3119% 8/8/25 (b)(c) | 5,460 | 5,515 | |
Tranche B1 1LN, term loan 3 month U.S. LIBOR + 3.250% 4.5603% 1/8/20 (b)(c) | 3,293 | 3,330 | |
Tranche B2 1LN, term loan 3 month U.S. LIBOR + 3.750% 5.0619% 8/8/24 (b)(c) | 18,995 | 19,177 | |
Onvoy LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.500% 5.8328% 2/10/24 (b)(c) | 19,965 | 19,940 | |
Polycom, Inc. Tranche B, term loan 3 month U.S. LIBOR + 5.250% 6.4896% 9/27/23 (b)(c) | 6,787 | 6,853 | |
Radiate Holdco LLC Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4.2423% 2/1/24 (b)(c) | 7,541 | 7,454 | |
Sable International Finance Ltd. Tranche B, term loan 3 month U.S. LIBOR + 3.500% 4.7423% 1/31/25 (b)(c) | 49,620 | 49,798 | |
SBA Senior Finance II, LLC term loan 3 month U.S. LIBOR + 2.250% 3.49% 3/24/21 (b)(c) | 30,986 | 31,107 | |
Securus Technologies Holdings, Inc.: | |||
Tranche 2LN, term loan 3 month U.S. LIBOR + 7.750% 9% 4/30/21 (b)(c) | 7,775 | 7,790 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.500% 4.75% 4/30/20 (b)(c) | 38,553 | 38,530 | |
Securus Technologies, Inc.: | |||
Tranche B, term loan: | |||
3 month U.S. LIBOR + 4.500% 5.7421% 6/15/24 (b)(c) | 30,750 | 31,109 | |
3 month U.S. LIBOR + 8.250% 6/15/25 (c)(d) | 8,500 | 8,557 | |
Tranche B2 1LN, term loan 3 month U.S. LIBOR + 4.250% 5.4525% 4/30/20 (b)(c) | 4,497 | 4,494 | |
SFR Group SA Tranche B 11LN, term loan 3 month U.S. LIBOR + 2.750% 4.1301% 7/31/25 (b)(c) | 34,328 | 34,254 | |
Sprint Communications, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.500% 3.75% 2/3/24 (b)(c) | 79,560 | 79,825 | |
Telesat LLC Tranche B 4LN, term loan 3 month U.S. LIBOR + 3.000% 4.32% 11/17/23 (b)(c) | 52,799 | 53,079 | |
Windstream Services LLC Tranche B 7LN, term loan 3 month U.S. LIBOR + 3.250% 4.49% 2/17/24 (b)(c) | 14,659 | 13,171 | |
Xplornet Communications, Inc. Tranche B, term loan 3 month U.S. LIBOR + 4.750% 6.0828% 9/9/21 (b)(c) | 5,209 | 5,261 | |
TOTAL TELECOMMUNICATIONS | 826,826 | ||
Textiles/Apparel - 0.1% | |||
ABB Optical Group LLC Tranche B, term loan 3 month U.S. LIBOR + 5.000% 6.3196% 6/15/23 (b)(c) | 8,739 | 8,816 | |
Transportation Ex Air/Rail - 0.4% | |||
American Commercial Barge Line Tranche B 1LN, term loan 3 month U.S. LIBOR + 8.750% 9.9923% 11/12/20 (b)(c) | 8,912 | 6,833 | |
International Seaways Operating Corp. Tranche B, term loan 3 month U.S. LIBOR + 5.500% 6.74% 6/22/22 (b)(c) | 27,701 | 27,839 | |
Navios Maritime Partners LP Tranche B, term loan 3 month U.S. LIBOR + 5.000% 6.32% 9/14/20 (b)(c) | 11,335 | 11,285 | |
TOTAL TRANSPORTATION EX AIR/RAIL | 45,957 | ||
Utilities - 3.7% | |||
Calpine Construction Finance Co. LP Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.250% 3.49% 5/3/20 (b)(c) | 25,602 | 25,602 | |
Calpine Corp. Tranche B, term loan 3 month U.S. LIBOR + 1.750% 3% 11/30/17 (b)(c) | 2,114 | 2,114 | |
Cortes NP Acquisition Corp. Tranche B, term loan 3 month U.S. LIBOR + 4.000% 5.235% 11/30/23 (b)(c) | 21,930 | 22,081 | |
Dynegy, Inc. Tranche C, term loan 3 month U.S. LIBOR + 3.250% 4.4923% 2/7/24 (b)(c) | 50,824 | 51,103 | |
Energy Future Holdings Corp. Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4.2422% 6/30/18 (b)(c) | 103,000 | 103,644 | |
Exgen Texas Power LLC Tranche B, term loan 3 month U.S. LIBOR + 4.750% 6.0828% 9/18/21 (b)(c) | 26,444 | 16,594 | |
Houston Fuel Oil Terminal Co. Tranche B, term loan 3 month U.S. LIBOR + 3.500% 4.83% 8/19/21 (b)(c) | 28,801 | 28,927 | |
InterGen NV Tranche B, term loan 3 month U.S. LIBOR + 4.500% 5.84% 6/13/20 (b)(c) | 32,475 | 32,462 | |
Limetree Bay Terminals LLC term loan 3 month U.S. LIBOR + 4.000% 5.2367% 2/15/24 (b)(c) | 20,935 | 20,987 | |
Moxie Patriot LLC Tranche B, term loan 3 month U.S. LIBOR + 5.750% 7.0828% 12/19/20 (b)(c) | 16,450 | 15,463 | |
Tex Operations Co. LLC: | |||
Tranche B, term loan 3 month U.S. LIBOR + 2.750% 4.0113% 8/4/23 (b)(c) | 40,813 | 40,926 | |
Tranche C, term loan 3 month U.S. LIBOR + 2.750% 4.0839% 8/4/23 (b)(c) | 9,379 | 9,403 | |
USIC Holdings, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.500% 5.0039% 12/9/23 (b)(c) | 7,945 | 8,011 | |
Vistra Operations Co. LLC Tranche B 2LN, term loan 3 month U.S. LIBOR + 2.750% 4.0104% 12/14/23 (b)(c) | 22,579 | 22,736 | |
TOTAL UTILITIES | 400,053 | ||
TOTAL BANK LOAN OBLIGATIONS | |||
(Cost $9,579,007) | 9,552,794 | ||
Nonconvertible Bonds - 6.6% | |||
Aerospace - 0.1% | |||
DAE Funding LLC: | |||
4% 8/1/20 (h) | 6,495 | 6,592 | |
4.5% 8/1/22 (h) | 3,750 | 3,802 | |
TOTAL AEROSPACE | 10,394 | ||
Broadcasting - 0.1% | |||
AMC Networks, Inc. 4.75% 12/15/22 | 6,600 | 6,773 | |
Building Materials - 0.1% | |||
CEMEX S.A.B. de CV 3 month U.S. LIBOR + 4.750% 6.1092% 10/15/18 (b)(c)(h) | 10,000 | 10,263 | |
Cable/Satellite TV - 0.4% | |||
CCO Holdings LLC/CCO Holdings Capital Corp.: | |||
5.125% 2/15/23 | 17,065 | 17,620 | |
5.25% 3/15/21 | 13,070 | 13,331 | |
Cequel Communications Escrow I LLC/Cequel Communications Escrow Capital Corp. 6.375% 9/15/20 (h) | 7,507 | 7,658 | |
Virgin Media Finance PLC 4.875% 2/15/22 | 2,000 | 1,950 | |
TOTAL CABLE/SATELLITE TV | 40,559 | ||
Chemicals - 0.1% | |||
Nufarm Australia Ltd. 6.375% 10/15/19 (h) | 5,000 | 5,088 | |
TPC Group, Inc. 8.75% 12/15/20 (h) | 10,665 | 10,425 | |
TOTAL CHEMICALS | 15,513 | ||
Containers - 0.7% | |||
Ardagh Packaging Finance PLC/Ardagh MP Holdings U.S.A., Inc.: | |||
4.25% 9/15/22 (h) | 15,000 | 15,450 | |
6% 2/15/25 (h) | 10,000 | 10,613 | |
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer (Luxembourg) SA: | |||
3 month U.S. LIBOR + 3.500% 4.8592% 7/15/21 (b)(c)(h) | 11,130 | 11,353 | |
5.75% 10/15/20 | 33,325 | 33,909 | |
TOTAL CONTAINERS | 71,325 | ||
Diversified Financial Services - 0.5% | |||
Icahn Enterprises LP/Icahn Enterprises Finance Corp.: | |||
4.875% 3/15/19 | 15,000 | 15,075 | |
6.25% 2/1/22 | 5,200 | 5,434 | |
International Lease Finance Corp.: | |||
3.875% 4/15/18 | 7,000 | 7,064 | |
6.25% 5/15/19 | 10,000 | 10,603 | |
Prime Securities Services Borrower LLC/Prime Finance, Inc. 9.25% 5/15/23 (h) | 10,000 | 11,082 | |
TOTAL DIVERSIFIED FINANCIAL SERVICES | 49,258 | ||
Energy - 0.5% | |||
Cheniere Corpus Christi Holdings LLC: | |||
5.125% 6/30/27 (h) | 11,455 | 11,813 | |
7% 6/30/24 | 7,000 | 7,989 | |
Chesapeake Energy Corp. 8% 12/15/22 (h) | 8,195 | 8,817 | |
Citgo Petroleum Corp. 6.25% 8/15/22 (h) | 10,000 | 10,275 | |
Consolidated Energy Finance SA: | |||
3 month U.S. LIBOR + 3.750% 5.07% 6/15/22 (b)(c)(h) | 7,500 | 7,483 | |
6.875% 6/15/25 (h) | 5,500 | 5,816 | |
Peabody Securities Finance Corp. 6% 3/31/22 (h) | 3,335 | 3,435 | |
TOTAL ENERGY | 55,628 | ||
Entertainment/Film - 0.0% | |||
Cinemark U.S.A., Inc. 5.125% 12/15/22 | 3,185 | 3,265 | |
Gaming - 0.1% | |||
Gateway Casinos & Entertainment Ltd. 8.25% 3/1/24 (h) | 5,000 | 5,313 | |
Scientific Games Corp. 7% 1/1/22 (h) | 7,800 | 8,249 | |
TOTAL GAMING | 13,562 | ||
Healthcare - 1.0% | |||
Community Health Systems, Inc. 6.25% 3/31/23 | 21,175 | 20,381 | |
DaVita HealthCare Partners, Inc. 5.75% 8/15/22 | 8,235 | 8,492 | |
HCA Holdings, Inc. 3.75% 3/15/19 | 25,000 | 25,375 | |
Tenet Healthcare Corp.: | |||
4.625% 7/15/24 (h) | 28,000 | 27,545 | |
4.75% 6/1/20 | 8,680 | 8,897 | |
7.5% 1/1/22 (h) | 5,085 | 5,352 | |
THC Escrow Corp. III 5.125% 5/1/25 (h) | 7,500 | 7,303 | |
TOTAL HEALTHCARE | 103,345 | ||
Homebuilders/Real Estate - 0.5% | |||
CBRE Group, Inc. 5% 3/15/23 | 17,990 | 18,619 | |
VICI Properties 1 LLC/VICI FC, Inc. 3 month U.S. LIBOR + 3.500% 4.8467% 10/15/22 (b)(c) | 40,450 | 40,652 | |
TOTAL HOMEBUILDERS/REAL ESTATE | 59,271 | ||
Leisure - 0.2% | |||
Studio City Co. Ltd.: | |||
5.875% 11/30/19 (h) | 6,860 | 7,194 | |
7.25% 11/30/21 (h) | 10,000 | 10,701 | |
TOTAL LEISURE | 17,895 | ||
Paper - 0.1% | |||
Xerium Technologies, Inc. 9.5% 8/15/21 | 9,500 | 9,758 | |
Publishing/Printing - 0.1% | |||
Cenveo Corp. 6% 8/1/19 (h) | 9,850 | 6,797 | |
Restaurants - 0.1% | |||
1011778 BC Unlimited Liability Co./New Red Finance, Inc. 4.25% 5/15/24 (h) | 8,000 | 8,058 | |
Services - 0.3% | |||
APX Group, Inc.: | |||
7.625% 9/1/23 | 12,500 | 13,156 | |
7.875% 12/1/22 | 13,975 | 15,076 | |
TOTAL SERVICES | 28,232 | ||
Super Retail - 0.1% | |||
JC Penney Corp., Inc. 5.875% 7/1/23 (h) | 6,385 | 6,124 | |
PetSmart, Inc. 5.875% 6/1/25 (h) | 7,665 | 6,688 | |
TOTAL SUPER RETAIL | 12,812 | ||
Technology - 0.5% | |||
Brocade Communications Systems, Inc. 4.625% 1/15/23 | 11,745 | 12,024 | |
Diamond 1 Finance Corp./Diamond 2 Finance Corp.: | |||
3.48% 6/1/19 (h) | 6,199 | 6,310 | |
4.42% 6/15/21 (h) | 16,685 | 17,542 | |
NXP BV/NXP Funding LLC: | |||
4.125% 6/1/21 (h) | 16,440 | 17,180 | |
5.75% 3/15/23 (h) | 5,000 | 5,200 | |
TOTAL TECHNOLOGY | 58,256 | ||
Telecommunications - 1.1% | |||
Altice Financing SA: | |||
6.5% 1/15/22 (h) | 7,240 | 7,493 | |
7.5% 5/15/26 (h) | 19,200 | 21,048 | |
Intelsat Jackson Holdings SA 8% 2/15/24 (h) | 14,100 | 14,946 | |
SFR Group SA: | |||
6% 5/15/22 (h) | 2,550 | 2,658 | |
6.25% 5/15/24 (h) | 10,905 | 11,423 | |
7.375% 5/1/26 (h) | 18,755 | 20,162 | |
Sprint Capital Corp.: | |||
6.875% 11/15/28 | 4,000 | 4,268 | |
6.9% 5/1/19 | 5,000 | 5,275 | |
Sprint Communications, Inc.: | |||
6% 11/15/22 | 30,000 | 31,500 | |
9% 11/15/18 (h) | 3,000 | 3,184 | |
TOTAL TELECOMMUNICATIONS | 121,957 | ||
Utilities - 0.0% | |||
NRG Energy, Inc. 6.625% 3/15/23 | 4,000 | 4,140 | |
TOTAL NONCONVERTIBLE BONDS | |||
(Cost $694,366) | 707,061 | ||
Shares | Value (000s) | ||
Common Stocks - 0.4% | |||
Broadcasting - 0.0% | |||
Cumulus Media, Inc. Class A (i) | 28,882 | 11 | |
ION Media Networks, Inc. (g) | 2,842 | 2,134 | |
TOTAL BROADCASTING | 2,145 | ||
Chemicals - 0.3% | |||
LyondellBasell Industries NV Class A | 245,943 | 25,462 | |
Homebuilders/Real Estate - 0.0% | |||
Five Point Holdings LLC Class A (i) | 45,793 | 588 | |
Metals/Mining - 0.1% | |||
Warrior Metropolitan Coal, Inc. | 496,683 | 12,924 | |
Telecommunications - 0.0% | |||
Consolidated Communications Holdings, Inc. | 25,029 | 480 | |
Utilities - 0.0% | |||
Calpine Corp. (i) | 20,715 | 309 | |
TOTAL COMMON STOCKS | |||
(Cost $83,933) | 41,908 | ||
Money Market Funds - 7.9% | |||
Fidelity Cash Central Fund, 1.10% (j) | |||
(Cost $853,356) | 853,338,777 | 853,509 | |
TOTAL INVESTMENT IN SECURITIES - 103.9% | |||
(Cost $11,210,662) | 11,155,272 | ||
NET OTHER ASSETS (LIABILITIES) - (3.9)% | (423,051) | ||
NET ASSETS - 100% | $10,732,221 |
Values shown as $0 may reflect amounts less than $500.
Legend
(a) Remaining maturities of bank loan obligations may be less than the stated maturities shown as a result of contractual or optional prepayments by the borrower. Such prepayments cannot be predicted with certainty.
(b) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end.
(c) Coupon is indexed to a floating interest rate which may be multiplied by a specified factor and/or subject to caps or floors.
(d) The coupon rate will be determined upon settlement of the loan after period end.
(e) Position represents an unfunded loan commitment. At period end, the total principal amount and market value of unfunded commitments totaled $1,598,000 and $1,608,000, respectively.
(f) Non-income producing - Security is in default.
(g) Level 3 security
(h) 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 $366,435,000 or 3.4% of net assets.
(i) Non-income producing
(j) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
(Amounts in thousands) | |
Fidelity Cash Central Fund | $8,446 |
Total | $8,446 |
Investment Valuation
The following is a summary of the inputs used, as of October 31, 2017, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
(Amounts in thousands) | ||||
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $2,145 | $11 | $-- | $2,134 |
Energy | 12,924 | 12,924 | -- | -- |
Materials | 25,462 | 25,462 | -- | -- |
Real Estate | 588 | 588 | -- | -- |
Telecommunication Services | 480 | 480 | -- | -- |
Utilities | 309 | 309 | -- | -- |
Bank Loan Obligations | 9,552,794 | -- | 9,539,045 | 13,749 |
Corporate Bonds | 707,061 | -- | 707,061 | -- |
Money Market Funds | 853,509 | 853,509 | -- | -- |
Total Investments in Securities: | $11,155,272 | $893,283 | $10,246,106 | $15,883 |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | October 31, 2017 | |
Assets | ||
Investment in securities, at value See accompanying schedule: Unaffiliated issuers (cost $10,357,306) | $10,301,763 | |
Fidelity Central Funds (cost $853,356) | 853,509 | |
Total Investment in Securities (cost $11,210,662) | $11,155,272 | |
Cash | 35,292 | |
Receivable for investments sold | 102,291 | |
Receivable for fund shares sold | 14,148 | |
Dividends receivable | 19 | |
Interest receivable | 51,069 | |
Distributions receivable from Fidelity Central Funds | 796 | |
Prepaid expenses | 25 | |
Total assets | 11,358,912 | |
Liabilities | ||
Payable for investments purchased | $601,345 | |
Payable for fund shares redeemed | 11,763 | |
Distributions payable | 6,616 | |
Accrued management fee | 4,982 | |
Distribution and service plan fees payable | 592 | |
Other affiliated payables | 1,286 | |
Other payables and accrued expenses | 107 | |
Total liabilities | 626,691 | |
Net Assets | $10,732,221 | |
Net Assets consist of: | ||
Paid in capital | $11,112,442 | |
Undistributed net investment income | 32,709 | |
Accumulated undistributed net realized gain (loss) on investments | (357,540) | |
Net unrealized appreciation (depreciation) on investments | (55,390) | |
Net Assets | $10,732,221 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($584,589 ÷ 60,469 shares) | $9.67 | |
Maximum offering price per share (100/97.25 of $9.67) | $9.94 | |
Class M: | ||
Net Asset Value and redemption price per share ($137,499 ÷ 14,243 shares) | $9.65 | |
Maximum offering price per share (100/97.25 of $9.65) | $9.92 | |
Class C: | ||
Net Asset Value and offering price per share ($522,522 ÷ 54,061 shares)(a) | $9.67 | |
Fidelity Floating Rate High Income Fund: | ||
Net Asset Value, offering price and redemption price per share ($7,367,746 ÷ 763,117 shares) | $9.65 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($2,119,865 ÷ 219,746 shares) | $9.65 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Amounts in thousands | Year ended October 31, 2017 | |
Investment Income | ||
Dividends | $3,454 | |
Interest | 478,083 | |
Income from Fidelity Central Funds | 8,446 | |
Total income | 489,983 | |
Expenses | ||
Management fee | $58,234 | |
Transfer agent fees | 13,649 | |
Distribution and service plan fees | 7,697 | |
Accounting fees and expenses | 1,589 | |
Custodian fees and expenses | 104 | |
Independent trustees' fees and expenses | 41 | |
Registration fees | 349 | |
Audit | 181 | |
Legal | 63 | |
Miscellaneous | 85 | |
Total expenses before reductions | 81,992 | |
Expense reductions | (159) | 81,833 |
Net investment income (loss) | 408,150 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 15,520 | |
Fidelity Central Funds | 17 | |
Total net realized gain (loss) | 15,537 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 41,512 | |
Fidelity Central Funds | (105) | |
Total change in net unrealized appreciation (depreciation) | 41,407 | |
Net gain (loss) | 56,944 | |
Net increase (decrease) in net assets resulting from operations | $465,094 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Amounts in thousands | Year ended October 31, 2017 | Year ended October 31, 2016 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $408,150 | $349,986 |
Net realized gain (loss) | 15,537 | (225,620) |
Change in net unrealized appreciation (depreciation) | 41,407 | 386,147 |
Net increase (decrease) in net assets resulting from operations | 465,094 | 510,513 |
Distributions to shareholders from net investment income | (394,075) | (383,140) |
Share transactions - net increase (decrease) | 1,322,261 | (1,573,710) |
Redemption fees | 365 | 413 |
Total increase (decrease) in net assets | 1,393,645 | (1,445,924) |
Net Assets | ||
Beginning of period | 9,338,576 | 10,784,500 |
End of period | $10,732,221 | $9,338,576 |
Other Information | ||
Undistributed net investment income end of period | $32,709 | $27,697 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Advisor Floating Rate High Income Fund Class A
Years ended October 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected PerShare Data | |||||
Net asset value, beginning of period | $9.60 | $9.42 | $9.85 | $9.99 | $9.94 |
Income from Investment Operations | |||||
Net investment income (loss)A | .360 | .334 | .375 | .317 | .310 |
Net realized and unrealized gain (loss) | .056 | .211 | (.425) | (.114) | .070 |
Total from investment operations | .416 | .545 | (.050) | .203 | .380 |
Distributions from net investment income | (.346) | (.365) | (.341) | (.307) | (.282) |
Distributions from net realized gain | | | (.040) | (.036) | (.049) |
Total distributions | (.346) | (.365) | (.381) | (.343) | (.331) |
Redemption fees added to paid in capitalA | B | B | .001 | B | .001 |
Net asset value, end of period | $9.67 | $9.60 | $9.42 | $9.85 | $9.99 |
Total ReturnC,D | 4.40% | 5.98% | (.53)% | 2.05% | 3.89% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | .99% | .99% | .98% | .98% | .99% |
Expenses net of fee waivers, if any | .98% | .99% | .98% | .98% | .99% |
Expenses net of all reductions | .98% | .98% | .98% | .98% | .99% |
Net investment income (loss) | 3.72% | 3.58% | 3.86% | 3.17% | 3.11% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $585 | $707 | $863 | $1,185 | $1,681 |
Portfolio turnover rateG | 68% | 46% | 26% | 54% | 62% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.0005 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Floating Rate High Income Fund Class M
Years ended October 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected PerShare Data | |||||
Net asset value, beginning of period | $9.58 | $9.40 | $9.84 | $9.98 | $9.93 |
Income from Investment Operations | |||||
Net investment income (loss)A | .356 | .324 | .365 | .306 | .299 |
Net realized and unrealized gain (loss) | .057 | .212 | (.434) | (.112) | .071 |
Total from investment operations | .413 | .536 | (.069) | .194 | .370 |
Distributions from net investment income | (.343) | (.356) | (.332) | (.298) | (.272) |
Distributions from net realized gain | | | (.040) | (.036) | (.049) |
Total distributions | (.343) | (.356) | (.372) | (.334) | (.321) |
Redemption fees added to paid in capitalA | B | B | .001 | B | .001 |
Net asset value, end of period | $9.65 | $9.58 | $9.40 | $9.84 | $9.98 |
Total ReturnC,D | 4.37% | 5.89% | (.72)% | 1.96% | 3.79% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | 1.01% | 1.08% | 1.07% | 1.07% | 1.09% |
Expenses net of fee waivers, if any | 1.01% | 1.08% | 1.07% | 1.07% | 1.09% |
Expenses net of all reductions | 1.01% | 1.08% | 1.07% | 1.07% | 1.09% |
Net investment income (loss) | 3.69% | 3.48% | 3.77% | 3.08% | 3.01% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $137 | $171 | $195 | $240 | $272 |
Portfolio turnover rateG | 68% | 46% | 26% | 54% | 62% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.0005 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Floating Rate High Income Fund Class C
Years ended October 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected PerShare Data | |||||
Net asset value, beginning of period | $9.59 | $9.41 | $9.85 | $9.99 | $9.94 |
Income from Investment Operations | |||||
Net investment income (loss)A | .286 | .263 | .301 | .241 | .235 |
Net realized and unrealized gain (loss) | .067 | .212 | (.434) | (.113) | .070 |
Total from investment operations | .353 | .475 | (.133) | .128 | .305 |
Distributions from net investment income | (.273) | (.295) | (.268) | (.232) | (.207) |
Distributions from net realized gain | | | (.040) | (.036) | (.049) |
Total distributions | (.273) | (.295) | (.308) | (.268) | (.256) |
Redemption fees added to paid in capitalA | B | B | .001 | B | .001 |
Net asset value, end of period | $9.67 | $9.59 | $9.41 | $9.85 | $9.99 |
Total ReturnC,D | 3.73% | 5.19% | (1.38)% | 1.29% | 3.11% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | 1.74% | 1.74% | 1.73% | 1.73% | 1.74% |
Expenses net of fee waivers, if any | 1.74% | 1.74% | 1.73% | 1.73% | 1.74% |
Expenses net of all reductions | 1.74% | 1.74% | 1.73% | 1.73% | 1.74% |
Net investment income (loss) | 2.96% | 2.82% | 3.10% | 2.41% | 2.35% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $523 | $582 | $671 | $835 | $960 |
Portfolio turnover rateG | 68% | 46% | 26% | 54% | 62% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.0005 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Floating Rate High Income Fund
Years ended October 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected PerShare Data | |||||
Net asset value, beginning of period | $9.58 | $9.40 | $9.84 | $9.98 | $9.93 |
Income from Investment Operations | |||||
Net investment income (loss)A | .386 | .359 | .401 | .344 | .337 |
Net realized and unrealized gain (loss) | .057 | .212 | (.435) | (.113) | .071 |
Total from investment operations | .443 | .571 | (.034) | .231 | .408 |
Distributions from net investment income | (.373) | (.391) | (.367) | (.335) | (.310) |
Distributions from net realized gain | | | (.040) | (.036) | (.049) |
Total distributions | (.373) | (.391) | (.407) | (.371) | (.359) |
Redemption fees added to paid in capitalA | B | B | .001 | B | .001 |
Net asset value, end of period | $9.65 | $9.58 | $9.40 | $9.84 | $9.98 |
Total ReturnC | 4.70% | 6.28% | (.36)% | 2.34% | 4.19% |
Ratios to Average Net AssetsD,E | |||||
Expenses before reductions | .70% | .71% | .70% | .69% | .70% |
Expenses net of fee waivers, if any | .69% | .71% | .70% | .69% | .70% |
Expenses net of all reductions | .69% | .71% | .70% | .69% | .70% |
Net investment income (loss) | 4.01% | 3.86% | 4.14% | 3.45% | 3.39% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $7,368 | $6,131 | $6,615 | $9,032 | $8,882 |
Portfolio turnover rateF | 68% | 46% | 26% | 54% | 62% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.0005 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Floating Rate High Income Fund Class I
Years ended October 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected PerShare Data | |||||
Net asset value, beginning of period | $9.58 | $9.40 | $9.83 | $9.97 | $9.92 |
Income from Investment Operations | |||||
Net investment income (loss)A | .380 | .355 | .396 | .339 | .332 |
Net realized and unrealized gain (loss) | .058 | .211 | (.424) | (.113) | .071 |
Total from investment operations | .438 | .566 | (.028) | .226 | .403 |
Distributions from net investment income | (.368) | (.386) | (.363) | (.330) | (.305) |
Distributions from net realized gain | | | (.040) | (.036) | (.049) |
Total distributions | (.368) | (.386) | (.403) | (.366) | (.354) |
Redemption fees added to paid in capitalA | B | B | .001 | B | .001 |
Net asset value, end of period | $9.65 | $9.58 | $9.40 | $9.83 | $9.97 |
Total ReturnC | 4.64% | 6.23% | (.30)% | 2.29% | 4.15% |
Ratios to Average Net AssetsD,E | |||||
Expenses before reductions | .75% | .75% | .74% | .74% | .75% |
Expenses net of fee waivers, if any | .75% | .75% | .74% | .74% | .75% |
Expenses net of all reductions | .75% | .75% | .74% | .74% | .75% |
Net investment income (loss) | 3.95% | 3.81% | 4.10% | 3.40% | 3.34% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $2,120 | $1,748 | $2,429 | $3,317 | $3,646 |
Portfolio turnover rateF | 68% | 46% | 26% | 54% | 62% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.0005 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended October 31, 2017
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor Floating Rate High 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 M (formerly Class T), Class C, Fidelity Floating Rate High Income Fund and Class I shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.
After the close of business on June 24, 2016, all outstanding Class B shares were converted to Class A shares. All prior fiscal period dollar and share amounts for Class B presented in the Notes to Financial Statements are for the period November 1, 2015 through June 24, 2016.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Valuation techniques used to value the Fund's investments by major category are as follows:
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds and bank loan 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. The Fund invests a significant portion of its assets in below investment grade securities. The value of these securities can be more volatile due to changes in the credit quality of the issuer and is sensitive to changes in economic, market and regulatory conditions.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of October 31, 2017, is included at the end of the Fund's Schedule of Investments.
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. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured. The Fund earns certain fees in connection with its floating rate loan purchasing activities. These fees are in addition to interest payments earned and may include amendment fees, consent fees and prepayment fees. These fees are recorded as Interest in the accompanying financial statements.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of October 31, 2017, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction.
Dividends are declared and recorded daily and paid monthly from net investment income. Distributions from realized gains, if any, are declared and recorded on the ex-dividend date. Income 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 defaulted bonds, market discount, capital loss carryforwards and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes as follows:
Gross unrealized appreciation | $150,511 |
Gross unrealized depreciation | (190,169) |
Net unrealized appreciation (depreciation) | $(39,658) |
Tax Cost | $11,194,930 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $16,167 |
Capital loss carryforward | $(356,730) |
Net unrealized appreciation (depreciation) on securities and other investments | $(39,658) |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of fiscal period end and is subject to adjustment.
No expiration | |
Short-term | $(15,767) |
Long-term | (340,963) |
Total capital loss carryforward | $(356,730) |
The tax character of distributions paid was as follows:
October 31, 2017 | October 31, 2016 | |
Ordinary Income | $394,075 | $ 383,140 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 60 days may have been subject to a redemption fee equal to 1.00% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital. In November 2017, the Board of Trustees approved the elimination of these redemption fees effective December 18, 2017.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Loans and Other Direct Debt Instruments. The Fund invests in direct debt instruments which are interests in amounts owed to lenders by corporate or other borrowers. These instruments may be in the form of loans, trade claims or other receivables and may include standby financing commitments such as revolving credit facilities that obligate the Fund to supply additional cash to the borrower on demand. Loans may be acquired through assignment or participation. The Fund also invests in unfunded loan commitments, which are contractual obligations for future funding. Information regarding unfunded commitments is included at the end of the Fund's Schedule of Investments.
New Accounting Pronouncement. In March 2017, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU), ASU 2017-08, which amends the amortization period for certain callable debt securities that are held at a premium. The amendment requires the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount. The ASU is effective for annual periods beginning after December 15, 2018. Management is currently evaluating the potential impact of these changes to the financial statements.
4. Purchase and Sales of Investments.
Purchases and sales of securities (including principal repayments of bank loan obligations), other than short-term securities, aggregated $8,047,525 and $6,594,196, 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 .45% of the Fund's average net assets and an annualized group fee rate that averaged .11% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annual management fee rate was .56% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
Distribution Fee | Service Fee | Total Fees | Retained by FDC |
|
Class A | -% | .25% | $1,659 | $71 |
Class M | -% | .25% | 384 | 2 |
Class C | .75% | .25% | 5,654 | 383 |
$7,697 | $456 |
Sales Load. FDC may receive a front-end sales charge of up to 2.75% for selling Class A shares and Class M 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 M and Class C redemptions. The deferred sales charges are 1.00% for Class C shares, 1.00% or .50% for certain purchases of Class A shares and .25% for certain purchases of Class M shares.
For the period, sales charge amounts retained by FDC were as follows:
Retained by FDC |
|
Class A | $37 |
Class M | 7 |
Class C(a) | 28 |
$72 |
(a) When Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
Amount | % of Class-Level Average Net Assets |
|
Class A | $1,017 | .15 |
Class M | 280 | .18 |
Class C | 883 | .16 |
Fidelity Floating Rate High Income Fund | 7,969 | .11 |
Class I | 3,500 | .17 |
$13,649 |
Accounting Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The fee is based on the level of average net assets for each month.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $36.
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 $33 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Expense Reductions.
Through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $101.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $58.
8. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Year ended October 31, 2017 | Year ended October 31, 2016 | |
From net investment income | ||
Class A | $23,794 | $28,998 |
Class M | 5,475 | 6,712 |
Class B | | 210 |
Class C | 16,016 | 19,076 |
Fidelity Floating Rate High Income Fund | 271,385 | 244,237 |
Class I | 77,405 | 83,907 |
Total | $394,075 | $383,140 |
9. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Year ended October 31, 2017 | Year ended October 31, 2016 | Year ended October 31, 2017 | Year ended October 31, 2016 | |
Class A | ||||
Shares sold | 22,327 | 13,632 | $215,427 | $127,187 |
Reinvestment of distributions | 2,289 | 2,814 | 22,112 | 26,169 |
Shares redeemed | (37,818) | (34,450) | (365,948) | (318,820) |
Net increase (decrease) | (13,202) | (18,004) | $(128,409) | $(165,464) |
Class M | ||||
Shares sold | 1,925 | 1,326 | $18,561 | $12,365 |
Reinvestment of distributions | 550 | 671 | 5,301 | 6,235 |
Shares redeemed | (6,051) | (4,884) | (58,381) | (45,244) |
Net increase (decrease) | (3,576) | (2,887) | $(34,519) | $(26,644) |
Class B | ||||
Shares sold | | 10 | $ | $96 |
Reinvestment of distributions | | 19 | | 177 |
Shares redeemed | | (1,219) | | (11,330) |
Net increase (decrease) | | (1,190) | $ | $(11,057) |
Class C | ||||
Shares sold | 7,187 | 5,299 | $69,348 | $49,451 |
Reinvestment of distributions | 1,402 | 1,645 | 13,539 | 15,298 |
Shares redeemed | (15,197) | (17,529) | (146,725) | (162,349) |
Net increase (decrease) | (6,608) | (10,585) | $(63,838) | $(97,600) |
Fidelity Floating Rate High Income Fund | ||||
Shares sold | 256,065 | 152,772 | $2,468,886 | $1,428,276 |
Reinvestment of distributions | 22,910 | 21,133 | 221,002 | 196,548 |
Shares redeemed | (155,638) | (237,658) | (1,500,477) | (2,193,671) |
Net increase (decrease) | 123,337 | (63,753) | $1,189,411 | $(568,847) |
Class I | ||||
Shares sold | 102,139 | 58,131 | $985,030 | $539,868 |
Reinvestment of distributions | 5,949 | 5,808 | 57,337 | 53,924 |
Shares redeemed | (70,851) | (139,996) | (682,751) | (1,297,890) |
Net increase (decrease) | 37,237 | (76,057) | $359,616 | $(704,098) |
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.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Advisor Series I and Shareholders of Fidelity Advisor Floating Rate High Income Fund:
We have audited the accompanying statement of assets and liabilities of Fidelity Advisor Floating Rate High Income Fund (the Fund), a fund of Fidelity Advisor Series I, including the schedule of investments, as of October 31, 2017, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2017, by correspondence with the custodians, brokers, and agent banks; when replies were not received from brokers or agent banks, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Fidelity Advisor Floating Rate High Income Fund as of October 31, 2017, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
December 15, 2017
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Each of the Trustees oversees 190 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The funds Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and sector funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. For example, a working group comprised of Independent Trustees and FMR has worked and continues to work to review the Fidelity® funds' valuation-related activities, reporting and risk management. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-present), and Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the board of Artis-Naples, Naples, Florida, and as a Trustee for Brewster Academy, Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
Charles S. Morrison (1960)
Year of Election or Appointment: 2014
Trustee
Mr. Morrison also serves as Trustee of other funds. He serves as President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present), a Director of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2014-present), Director of Fidelity SelectCo, LLC (investment adviser firm, 2014-present), President, Asset Management (2014-present), and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (investment adviser firm, 2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.
* Determined to be an Interested Trustee by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Childrens Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present) and Board of Directors (2017-present) of the Asolo Repertory Theatre.
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Busters Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Vice Chair of the Board of Governors, State University System of Florida (2013-present) and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present) and the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
William S. Stavropoulos (1939)
Year of Election or Appointment: 2002
Trustee
Vice Chairman of the Independent Trustees
Mr. Stavropoulos also serves as Trustee of other Fidelity® funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of Artis-Naples in Naples, Florida. Previously, Mr. Stavropoulos served as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication), and as a member of the Board of Trustees of the University of Florida (2013-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
Marc R. Bryant (1966)
Year of Election or Appointment: 2015
Secretary and Chief Legal Officer (CLO)
Mr. Bryant also serves as Secretary and CLO of other funds. Mr. Bryant serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company (investment adviser firm, 2015-present) and FMR Co., Inc. (investment adviser firm, 2015-present); Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2015-present) and Fidelity Investments Money Management, Inc. (investment adviser firm, 2015-present); and CLO of Fidelity Management & Research (Hong Kong) Limited and FMR Investment Management (UK) Limited (investment adviser firms, 2015-present) and Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and CLO of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006).
William C. Coffey (1969)
Year of Election or Appointment: 2009
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds, and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Stephanie J. Dorsey (1969)
Year of Election or Appointment: 2010
Assistant Treasurer
Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank.
Howard J. Galligan III (1966)
Year of Election or Appointment: 2014
Chief Financial Officer
Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (investment adviser firm, 2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011).
Thomas C. Hense (1964)
Year of Election or Appointment: 2008, 2010, or 2015
Vice President
Mr. Hense serves as Vice President of Fidelity Advisor® Multi-Asset Income Fund (2015) and other funds (High Income (2008), Small Cap (2008), and Value (2010) funds), and is an employee of Fidelity Investments (1993-present). Previously, Mr. Hense served as a portfolio manager for Fidelity's Institutional Money Management Group (Pyramis) (2003-2008).
Brian B. Hogan (1964)
Year of Election or Appointment: 2009
Vice President
Mr. Hogan also serves as Trustee or Vice President of other funds. Mr. Hogan serves as a Director of FMR Investment Management (UK) Limited (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present) and President of the Equity Division of FMR (investment adviser firm, 2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager. Mr. Brian B. Hogan is not related to Mr. Colm A. Hogan.
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan is an employee of Fidelity Investments (2005-present). Mr. Colm A. Hogan is not related to Mr. Brian B. Hogan.
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Rieco E. Mello (1969)
Year of Election or Appointment: 2017
Assistant Treasurer
Mr. Mello also serves as Assistant Treasurer of other funds. Mr. Mello is an employee of Fidelity Investments (1995-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Renee Stagnone (1975)
Year of Election or Appointment: 2016
Assistant Treasurer
Ms. Stagnone also serves as an officer of other funds. Ms. Stagnone is an employee of Fidelity Investments (1997-present). Previously, Ms. Stagnone served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (May 1, 2017 to October 31, 2017).
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.
Annualized Expense Ratio-A | Beginning Account Value May 1, 2017 | Ending Account Value October 31, 2017 | Expenses Paid During Period-B May 1, 2017 to October 31, 2017 |
|
Class A | .97% | |||
Actual | $1,000.00 | $1,018.00 | $4.93 | |
Hypothetical-C | $1,000.00 | $1,020.32 | $4.94 | |
Class M | .98% | |||
Actual | $1,000.00 | $1,016.90 | $4.98 | |
Hypothetical-C | $1,000.00 | $1,020.27 | $4.99 | |
Class C | 1.72% | |||
Actual | $1,000.00 | $1,014.20 | $8.73 | |
Hypothetical-C | $1,000.00 | $1,016.53 | $8.74 | |
Fidelity Floating Rate High Income Fund | .69% | |||
Actual | $1,000.00 | $1,018.40 | $3.51 | |
Hypothetical-C | $1,000.00 | $1,021.73 | $3.52 | |
Class I | .75% | |||
Actual | $1,000.00 | $1,019.20 | $3.82 | |
Hypothetical-C | $1,000.00 | $1,021.42 | $3.82 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
The Board of Trustees of Fidelity Advisor Floating Rate High Income Fund voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities.
Pay Date | Record Date | Capital Gains | |
Fidelity Advisor Floating Rate High Income Fund | |||
Class A | 12/11/17 | 12/08/17 | $0.004 |
Class M | 12/11/17 | 12/08/17 | $0.004 |
Class C | 12/11/17 | 12/08/17 | $0.004 |
Fidelity Floating Rate High Income Fund | 12/11/17 | 12/08/17 | $0.004 |
Class I | 12/17/17 | 12/08/17 | $0.004 |
A total of 0.25% of the dividends distributed during the fiscal year was derived from interest on U.S. Government securities which is generally exempt from state income tax.
The fund designates $301,396,592 of distributions paid during the period January 1, 2017 to October 31, 2017 as qualifying to be taxed as interest-related dividends for nonresident alien shareholders.
The fund will notify shareholders in January 2018 of amounts for use in preparing 2017 income tax returns.
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Advisor Floating Rate High Income Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. FMR and the sub-advisers are referred to herein as the Investment Advisers. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established various standing committees (Committees), each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to review matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to all of the Fidelity funds.
At its July 2017 meeting, the Board unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and would be realized as the fund grows, and whether any economies of scale are appropriately shared with fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, which is part of the Fidelity family of funds.
Amendment to Group Fee Rate. The Board also approved an amendment to the management contract for the fund to add an additional breakpoint to the group fee schedule, effective October 1, 2017. The Board noted that the additional breakpoint would result in lower management fee rates as Fidelity's assets under management increase.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage. Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process. Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.In 2014, the Board formed an ad hoc Committee on Transfer Agency Fees to review the variety of transfer agency fee structures throughout the industry and Fidelity's competitive positioning with respect to industry participants. Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to Fidelity's investment research process, and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs; (iv) launching new share classes of existing funds; (v) eliminating purchase minimums and broadening eligibility requirements for certain lower-priced share classes; (vi) reducing management fees and total expenses for certain growth equity funds and index funds; (vii) lowering expense caps for certain existing funds and classes to reduce expenses borne by shareholders; (viii) eliminating short-term redemption fees for certain funds; (ix) introducing a new pricing structure for certain funds of funds that is expected to reduce overall expenses paid by shareholders; (x) rationalizing product lines and gaining increased efficiencies through proposals for fund mergers and share class consolidations; (xi) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; and (xii) implementing enhancements to further strengthen Fidelity's product line to increase investors' probability of success in achieving their investment goals, including retirement income goals. Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history.The Board took into account discussions with representatives of the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for the fund for different time periods, measured against a securities market index ("benchmark index") and a peer group of funds with similar objectives ("peer group"), if any. In its evaluation of fund investment performance, the Board gave particular attention to information indicating changes in performance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for any overperformance or underperformance.In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing fund share classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; issuer-specific information; and fund cash flows and other factors.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for the fund and an appropriate benchmark index and peer group for the most recent one-, three-, and five-year periods, as shown below. Returns are shown compared to the 25th percentile (top of box, 75% beaten) and 75th percentile (bottom of box, 25% beaten) of the peer universe.Fidelity Advisor Floating Rate High Income Fund
Fidelity Advisor Floating Rate High Income Fund
Corporate Headquarters
245 Summer St.
Boston, MA 02210
www.fidelity.com
FHI-ANN-1217
1.779592.115
Fidelity Advisor® High Income Advantage Fund Class A, Class M (formerly Class T), Class C and Class I Annual Report October 31, 2017 |
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Contents
Board Approval of Investment Advisory Contracts and Management Fees |
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. © 2017 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 SECs web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SECs Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a funds total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended October 31, 2017 | Past 1 year | Past 5 years | Past 10 years |
Class A (incl. 4.00% sales charge) | 8.24% | 6.50% | 6.21% |
Class M (incl. 4.00% sales charge) | 8.20% | 6.50% | 6.22% |
Class C (incl. contingent deferred sales charge) | 10.92% | 6.58% | 5.85% |
Class I | 13.06% | 7.61% | 6.90% |
Class C shares' contingent deferred sales charges included in the past one year, past five years and past ten years total return figures are 1%, 0% and 0%, respectively.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® High Income Advantage Fund - Class A on October 31, 2007, and the current 4.00% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the The BofA Merrill Lynch℠ US High Yield Constrained Index performed over the same period.
Period Ending Values | ||
| $18,266 | Fidelity Advisor® High Income Advantage Fund - Class A |
| $21,144 | The BofA Merrill Lynch℠ US High Yield Constrained Index |
Management's Discussion of Fund Performance
Market Recap: U.S. corporate high-yield bonds gained 9.14% for the year ending October 31, 2017, as measured by The BofA Merrill Lynch℠ US High Yield Constrained Index. The asset class was generally supported by a resurgence in investor risk appetite, although the period began with one of very few interruptions to a steady uptrend. In November 2016, the energy-heavy high-yield market had its first negative month since January 2016 amid rising interest rates and a brief, sharp decline in oil prices. High-yield bonds bounced back strongly in December and maintained momentum into late July, rising along with other risk assets and supported by the view that the new administrations agenda would be stimulative for the U.S. economy. Although heightened geopolitical risk and some industry-specific developments hampered high yield for a brief stretch in early August, the strongly favorable environment for risk assets in the first half of the period prevailed overall. Accordingly, lower-quality bonds within the index fared best for the full year, roughly doubling the return of higher-quality tiers. By industry, gains were broad-based, with metals/mining, chemicals, energy and steel boosted by firming commodities prices and the potential for increased infrastructure spending in the U.S. Notable laggards included food & drug retail and super retail. Comments from Portfolio Manager Harley Lank: For the year, the fund's share classes (excluding sales charges, if applicable) posted gains of about 12% to 13%, handily outpacing the 9.14% return of the benchmark, The BofA Merrill Lynch℠ US High Yield Constrained Index. Our non-index allocation to stocks about 19% of assets, on average gained roughly 27% for the period and fueled the funds relative outperformance. I had similar success within high yield, our core area of focus, with the subportfolio advancing roughly 12%. Among high-yield bonds, security selection was broadly positive, led by picks in technology, gaming, chemicals and telecommunications. The top individual relative contributors were out-of-index positions in the stocks of Melco Crown Entertainment, a casino operator in Macau and other parts of Asia, and ON Semiconductor. Shares of equipment-rental company United Rentals also notably contributed. On the downside, security selection in energy dampened relative performance, as did a cash stake of 3%, on average, in a rising market. In terms of individual holdings, a non-benchmark stake in the stock of Israel-based generic drug producer Teva Pharmaceutical Industries provided the biggest drag, as our stake returned -61% this period. I continue to have a generally positive outlook for high-yield bonds, believing the fundamental backdrop remains supportive.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Top Five Holdings as of October 31, 2017
(by issuer, excluding cash equivalents) | % of fund's net assets | % of fund's net assets 6 months ago |
APX Group, Inc. | 2.9 | 2.6 |
Energy Future Intermediate Holding Co. LLC/Energy Future Intermediate Holding Finance, Inc. | 2.7 | 2.3 |
Valeant Pharmaceuticals International, Inc. | 2.3 | 2.1 |
Tenet Healthcare Corp. | 2.3 | 2.1 |
Chesapeake Energy Corp. | 2.2 | 1.8 |
12.4 |
Top Five Market Sectors as of October 31, 2017
% of fund's net assets | % of fund's net assets 6 months ago | |
Energy | 14.2 | 11.8 |
Healthcare | 8.6 | 8.4 |
Technology | 8.4 | 8.9 |
Telecommunications | 7.8 | 10.1 |
Cable/Satellite TV | 6.9 | 7.3 |
Quality Diversification (% of fund's net assets)
As of October 31, 2017 | ||
BB | 16.1% | |
B | 32.5% | |
CCC,CC,C | 21.1% | |
Not Rated | 4.3% | |
Equities | 20.7% | |
Short-Term Investments and Net Other Assets | 5.3% |
As of April 30, 2017 | ||
BB | 18.7% | |
B | 29.0% | |
CCC,CC,C | 24.2% | |
Not Rated | 3.2% | |
Equities | 20.5% | |
Short-Term Investments and Net Other Assets | 4.4% |
We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes.
Asset Allocation (% of fund's net assets)
As of October 31, 2017* | ||
Nonconvertible Bonds | 68.6% | |
Convertible Bonds, Preferred Stocks | 0.8% | |
Common Stocks | 19.9% | |
Bank Loan Obligations | 2.8% | |
Other Investments | 2.6% | |
Short-Term Investments and Net Other Assets (Liabilities) | 5.3% |
* Foreign investments 20.4%
As of April 30, 2017* | ||
Nonconvertible Bonds | 69.4% | |
Convertible Bonds, Preferred Stocks | 1.0% | |
Common Stocks | 19.5% | |
Bank Loan Obligations | 2.9% | |
Other Investments | 2.8% | |
Short-Term Investments and Net Other Assets (Liabilities) | 4.4% |
* Foreign investments 19.9%
Investments October 31, 2017
Showing Percentage of Net Assets
Corporate Bonds - 68.6% | |||
Principal Amount (000s)(a) | Value (000s) | ||
Convertible Bonds - 0.0% | |||
Telecommunications - 0.0% | |||
Clearwire Communications LLC/Clearwire Finance, Inc. 8.25% 12/1/40 (b) | $180 | $181 | |
Nonconvertible Bonds - 68.6% | |||
Aerospace - 0.2% | |||
DAE Funding LLC: | |||
4.5% 8/1/22 (b) | 1,410 | 1,429 | |
5% 8/1/24 (b) | 1,940 | 1,981 | |
3,410 | |||
Air Transportation - 0.1% | |||
Continental Airlines, Inc.: | |||
pass-thru trust certificates 6.903% 4/19/22 | 345 | 366 | |
6.125% 4/29/18 | 670 | 680 | |
1,046 | |||
Automotive & Auto Parts - 0.9% | |||
American Tire Distributors, Inc. 10.25% 3/1/22 (b) | 4,450 | 4,645 | |
Jaguar Land Rover PLC 4.5% 10/1/27 (b) | 5,790 | 5,732 | |
Tesla, Inc. 5.3% 8/15/25 (b) | 6,110 | 5,896 | |
16,273 | |||
Banks & Thrifts - 2.5% | |||
Ally Financial, Inc.: | |||
5.75% 11/20/25 | 2,310 | 2,550 | |
8% 12/31/18 | 6,859 | 7,279 | |
8% 11/1/31 | 3,105 | 4,099 | |
8% 11/1/31 | 18,362 | 24,284 | |
Royal Bank of Scotland Group PLC: | |||
5.125% 5/28/24 | 3,515 | 3,761 | |
6% 12/19/23 | 3,605 | 4,016 | |
Washington Mutual Bank 5.5% 1/15/13 (c)(d) | 10,000 | 1 | |
45,990 | |||
Broadcasting - 0.2% | |||
Sirius XM Radio, Inc. 5% 8/1/27 (b) | 3,200 | 3,228 | |
Building Materials - 0.4% | |||
BMC East LLC 5.5% 10/1/24 (b) | 1,440 | 1,508 | |
Builders FirstSource, Inc. 5.625% 9/1/24 (b) | 3,560 | 3,760 | |
HMAN Finance Sub Corp. 6.375% 7/15/22 (b) | 900 | 893 | |
USG Corp. 4.875% 6/1/27 (b) | 530 | 550 | |
6,711 | |||
Cable/Satellite TV - 6.2% | |||
Altice SA: | |||
7.625% 2/15/25 (b) | 12,590 | 13,660 | |
7.75% 5/15/22 (b) | 10,575 | 11,196 | |
Altice U.S. Finance SA 7.75% 7/15/25 (b) | 1,260 | 1,377 | |
Cable One, Inc. 5.75% 6/15/22 (b) | 1,390 | 1,453 | |
CCO Holdings LLC/CCO Holdings Capital Corp.: | |||
5.125% 2/15/23 | 2,550 | 2,633 | |
5.125% 5/1/27 (b) | 16,845 | 17,013 | |
5.5% 5/1/26 (b) | 2,940 | 3,014 | |
5.75% 1/15/24 | 5,335 | 5,542 | |
5.75% 2/15/26 (b) | 1,770 | 1,851 | |
5.875% 5/1/27 (b) | 5,245 | 5,493 | |
Cequel Communications Escrow I LLC/Cequel Communications Escrow Capital Corp. 6.375% 9/15/20 (b) | 381 | 389 | |
Cequel Communications Holdings I LLC/Cequel Capital Corp. 5.125% 12/15/21 (b) | 5,495 | 5,591 | |
CSC Holdings, Inc. 5.5% 4/15/27 (b) | 9,215 | 9,491 | |
DISH DBS Corp.: | |||
5% 3/15/23 | 4,695 | 4,542 | |
5.875% 7/15/22 | 4,240 | 4,264 | |
Unitymedia Hessen GmbH & Co. KG/Unitymedia NRW GmbH 5.5% 1/15/23 (b) | 1,931 | 1,984 | |
Wave Holdco LLC/Wave Holdco Corp. 8.25% 7/15/19 pay-in-kind (b)(e) | 10,920 | 10,920 | |
WaveDivision Escrow LLC/WaveDivision Escrow Corp. 8.125% 9/1/20 (b) | 1,645 | 1,683 | |
Ziggo Bond Finance BV: | |||
5.875% 1/15/25 (b) | 1,705 | 1,754 | |
6% 1/15/27 (b) | 3,575 | 3,638 | |
Ziggo Secured Finance BV 5.5% 1/15/27 (b) | 7,375 | 7,523 | |
115,011 | |||
Chemicals - 2.1% | |||
CF Industries Holdings, Inc.: | |||
4.95% 6/1/43 | 4,810 | 4,413 | |
5.15% 3/15/34 | 2,800 | 2,793 | |
5.375% 3/15/44 | 1,815 | 1,742 | |
Evolution Escrow Issuer LLC 7.5% 3/15/22 (b) | 3,065 | 3,214 | |
Momentive Performance Materials, Inc. 3.88% 10/24/21 | 5,545 | 5,767 | |
MPM Escrow LLC/MPM Finance Escrow Corp. 8.875% 10/15/20 (c)(d) | 4,120 | 0 | |
NOVA Chemicals Corp.: | |||
4.875% 6/1/24 (b) | 2,140 | 2,180 | |
5.25% 6/1/27 (b) | 2,170 | 2,213 | |
Platform Specialty Products Corp. 6.5% 2/1/22 (b) | 5,550 | 5,751 | |
The Chemours Co. LLC: | |||
5.375% 5/15/27 | 835 | 891 | |
6.625% 5/15/23 | 1,495 | 1,585 | |
7% 5/15/25 | 975 | 1,087 | |
TPC Group, Inc. 8.75% 12/15/20 (b) | 6,605 | 6,456 | |
Tronox Finance PLC 5.75% 10/1/25 (b) | 870 | 908 | |
39,000 | |||
Containers - 0.5% | |||
ARD Finance SA 7.125% 9/15/23 pay-in-kind (e) | 1,690 | 1,800 | |
Ardagh Packaging Finance PLC/Ardagh MP Holdings U.S.A., Inc. 7.25% 5/15/24 (b) | 3,785 | 4,159 | |
Plastipak Holdings, Inc. 6.25% 10/15/25 (b) | 555 | 566 | |
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer (Luxembourg) SA: | |||
5.75% 10/15/20 | 2,460 | 2,503 | |
7% 7/15/24 (b) | 1,025 | 1,094 | |
10,122 | |||
Diversified Financial Services - 3.6% | |||
Aircastle Ltd. 4.625% 12/15/18 | 1,625 | 1,666 | |
Ascend Learning LLC 6.875% 8/1/25 (b) | 670 | 702 | |
Chobani LLC/Finance Corp., Inc. 7.5% 4/15/25 (b) | 5,335 | 5,795 | |
CIT Group, Inc. 5.375% 5/15/20 | 285 | 306 | |
Eagle Holding Co. II LLC 7.625% 5/15/22 pay-in-kind (b)(e) | 930 | 959 | |
Exela International LLC/Exela Financial, Inc. 10% 7/15/23 (b) | 2,100 | 2,011 | |
FLY Leasing Ltd. 5.25% 10/15/24 | 1,495 | 1,502 | |
Grinding Media, Inc./MC Grinding Media Canada, Inc. 7.375% 12/15/23 (b) | 1,315 | 1,430 | |
Icahn Enterprises LP/Icahn Enterprises Finance Corp.: | |||
5.875% 2/1/22 | 5,683 | 5,871 | |
6.25% 2/1/22 | 1,000 | 1,045 | |
6.75% 2/1/24 | 1,810 | 1,916 | |
MSCI, Inc. 5.75% 8/15/25 (b) | 1,345 | 1,453 | |
Navient Corp.: | |||
5.875% 10/25/24 | 3,375 | 3,426 | |
7.25% 9/25/23 | 1,775 | 1,923 | |
Orchestra Borrower LLC/Orchestra Co.-Issuer, Inc. 6.75% 6/15/22 (b) | 1,240 | 1,289 | |
Prime Securities Services Borrower LLC/Prime Finance, Inc. 9.25% 5/15/23 (b) | 18,565 | 20,574 | |
Radiate Holdco LLC/Radiate Financial Service Ltd. 6.625% 2/15/25 (b) | 690 | 678 | |
SLM Corp.: | |||
5.5% 1/25/23 | 5,330 | 5,397 | |
6.125% 3/25/24 | 4,270 | 4,382 | |
8% 3/25/20 | 4,700 | 5,182 | |
67,507 | |||
Diversified Media - 0.6% | |||
Clear Channel Worldwide Holdings, Inc.: | |||
Series A, 7.625% 3/15/20 | 900 | 896 | |
7.625% 3/15/20 | 2,060 | 2,057 | |
E.W. Scripps Co. 5.125% 5/15/25 (b) | 510 | 524 | |
Liberty Media Corp.: | |||
8.25% 2/1/30 | 469 | 516 | |
8.5% 7/15/29 | 529 | 590 | |
MDC Partners, Inc. 6.5% 5/1/24 (b) | 5,848 | 5,965 | |
Nielsen Finance LLC/Nielsen Finance Co. 5% 4/15/22 (b) | 1,220 | 1,257 | |
11,805 | |||
Energy - 12.0% | |||
Antero Midstream Partners LP/Antero Midstream Finance Corp. 5.375% 9/15/24 | 820 | 853 | |
Antero Resources Corp.: | |||
5.125% 12/1/22 | 1,935 | 1,988 | |
5.625% 6/1/23 (Reg. S) | 2,580 | 2,703 | |
Antero Resources Finance Corp. 5.375% 11/1/21 | 4,500 | 4,618 | |
Calfrac Holdings LP 7.5% 12/1/20 (b) | 4,460 | 4,371 | |
California Resources Corp. 8% 12/15/22 (b) | 9,595 | 6,333 | |
Carrizo Oil & Gas, Inc. 6.25% 4/15/23 | 440 | 448 | |
Cheniere Corpus Christi Holdings LLC: | |||
5.125% 6/30/27 (b) | 2,085 | 2,150 | |
5.875% 3/31/25 | 2,610 | 2,825 | |
Chesapeake Energy Corp.: | |||
3 month U.S. LIBOR + 3.250% 4.6092% 4/15/19 (e)(f) | 2,250 | 2,228 | |
4.875% 4/15/22 | 5,580 | 5,162 | |
5.75% 3/15/23 | 1,890 | 1,725 | |
8% 12/15/22 (b) | 3,301 | 3,552 | |
8% 1/15/25 (b) | 10,435 | 10,435 | |
8% 6/15/27 (b) | 14,705 | 14,181 | |
Citgo Holding, Inc. 10.75% 2/15/20 (b) | 3,525 | 3,807 | |
Consolidated Energy Finance SA: | |||
3 month U.S. LIBOR + 3.750% 5.07% 6/15/22 (b)(e)(f) | 3,800 | 3,791 | |
6.875% 6/15/25 (b) | 5,350 | 5,658 | |
Covey Park Energy LLC 7.5% 5/15/25 (b) | 1,540 | 1,598 | |
Crestwood Midstream Partners LP/Crestwood Midstream Finance Corp. 6.25% 4/1/23 | 1,775 | 1,846 | |
Denbury Resources, Inc. 4.625% 7/15/23 | 4,395 | 2,494 | |
Diamond Offshore Drilling, Inc. 7.875% 8/15/25 | 2,765 | 2,959 | |
Ensco PLC: | |||
4.5% 10/1/24 | 3,930 | 3,223 | |
5.2% 3/15/25 | 760 | 640 | |
EP Energy LLC/Everest Acquisition Finance, Inc. 8% 11/29/24 (b) | 1,170 | 1,193 | |
Exterran Partners LP/EXLP Finance Corp.: | |||
6% 4/1/21 | 495 | 493 | |
6% 10/1/22 | 3,870 | 3,846 | |
FTS International, Inc. 6.25% 5/1/22 | 5,060 | 4,908 | |
Gulfmark Offshore, Inc. 6.375% 3/15/22 (c) | 2,200 | 462 | |
Hilcorp Energy I LP/Hilcorp Finance Co.: | |||
5% 12/1/24 (b) | 2,085 | 2,075 | |
5.75% 10/1/25 (b) | 10,085 | 10,325 | |
Jonah Energy LLC 7.25% 10/15/25 (b) | 2,590 | 2,590 | |
NextEra Energy Partners LP: | |||
4.25% 9/15/24 (b) | 1,265 | 1,278 | |
4.5% 9/15/27 (b) | 880 | 886 | |
NGPL PipeCo LLC: | |||
4.375% 8/15/22 (b) | 485 | 499 | |
4.875% 8/15/27 (b) | 485 | 502 | |
Noble Holding International Ltd.: | |||
3.95% 3/15/22 | 2,315 | 1,945 | |
4.625% 3/1/21 | 318 | 294 | |
6.05% 3/1/41 | 95 | 63 | |
6.2% 8/1/40 | 2,660 | 1,796 | |
7.75% 1/15/24 | 7,285 | 6,520 | |
NuStar Logistics LP 5.625% 4/28/27 | 985 | 1,039 | |
Oasis Petroleum, Inc. 6.875% 3/15/22 | 905 | 928 | |
Pacific Drilling V Ltd. 7.25% 12/1/17 (b) | 3,755 | 1,652 | |
Parsley Energy LLC/Parsley: | |||
5.625% 10/15/27 (b) | 925 | 954 | |
6.25% 6/1/24 (b) | 4,520 | 4,791 | |
PBF Holding Co. LLC/PBF Finance Corp.: | |||
7% 11/15/23 | 3,520 | 3,661 | |
7.25% 6/15/25 (b) | 2,125 | 2,197 | |
PBF Logistics LP/PBF Logistics Finance, Inc. 6.875% 5/15/23 (b) | 3,315 | 3,431 | |
Peabody Securities Finance Corp.: | |||
6% 3/31/22 (b) | 610 | 628 | |
6.375% 3/31/25 (b) | 755 | 779 | |
Pride International, Inc. 7.875% 8/15/40 | 2,715 | 2,267 | |
Rose Rock Midstream LP/Rose Rock Finance Corp. 5.625% 7/15/22 | 1,125 | 1,108 | |
SemGroup Corp. 7.25% 3/15/26 (b) | 1,770 | 1,801 | |
SESI LLC 7.75% 9/15/24(b) | 1,160 | 1,201 | |
SM Energy Co.: | |||
5% 1/15/24 | 1,730 | 1,652 | |
5.625% 6/1/25 | 2,565 | 2,494 | |
6.125% 11/15/22 | 4,420 | 4,442 | |
6.5% 11/15/21 | 800 | 808 | |
6.5% 1/1/23 | 95 | 97 | |
6.75% 9/15/26 | 845 | 867 | |
Southwestern Energy Co.: | |||
7.5% 4/1/26 | 1,730 | 1,795 | |
7.75% 10/1/27 | 1,285 | 1,336 | |
Summit Midstream Holdings LLC: | |||
5.5% 8/15/22 | 1,520 | 1,539 | |
5.75% 4/15/25 | 1,435 | 1,464 | |
Sunoco LP/Sunoco Finance Corp.: | |||
6.25% 4/15/21 | 3,000 | 3,143 | |
6.375% 4/1/23 | 1,490 | 1,583 | |
Targa Resources Partners LP/Targa Resources Partners Finance Corp.: | |||
5.125% 2/1/25 | 1,070 | 1,102 | |
5.375% 2/1/27 | 1,070 | 1,111 | |
Teine Energy Ltd. 6.875% 9/30/22 (b) | 4,916 | 5,027 | |
TerraForm Power Operating LLC: | |||
6.375% 2/1/23 (b)(e) | 11,525 | 12,072 | |
6.625% 6/15/25 (b)(e) | 1,480 | 1,606 | |
Tesoro Logistics LP/Tesoro Logistics Finance Corp. 6.375% 5/1/24 | 1,310 | 1,434 | |
Transocean, Inc. 7.5% 1/15/26 (b) | 3,310 | 3,409 | |
Trinidad Drilling Ltd. 6.625% 2/15/25 (b) | 830 | 807 | |
Ultra Resources, Inc.: | |||
6.875% 4/15/22 (b) | 1,725 | 1,742 | |
7.125% 4/15/25 (b) | 1,295 | 1,292 | |
Weatherford International Ltd. 9.875% 2/15/24 | 3,630 | 3,884 | |
WPX Energy, Inc.: | |||
5.25% 9/15/24 | 3,170 | 3,182 | |
6% 1/15/22 | 4,350 | 4,529 | |
7.5% 8/1/20 | 1,179 | 1,279 | |
8.25% 8/1/23 | 2,640 | 2,973 | |
222,369 | |||
Entertainment/Film - 0.6% | |||
AMC Entertainment Holdings, Inc. 6.125% 5/15/27 | 1,405 | 1,391 | |
CBS Outdoor Americas Capital LLC/CBS Outdoor Americas Capital Corp. 5.625% 2/15/24 | 580 | 610 | |
Livent, Inc. 9.375% 10/15/04 (c)(d) | 11,100 | 0 | |
NAI Entertainment Holdings LLC/NAI Entertainment Finance Corp. 5% 8/1/18 (b) | 1,425 | 1,426 | |
New Cotai LLC/New Cotai Capital Corp. 10.625% 5/1/19 pay-in-kind (b)(e) | 8,593 | 8,593 | |
12,020 | |||
Environmental - 0.6% | |||
Covanta Holding Corp.: | |||
5.875% 3/1/24 | 4,680 | 4,692 | |
6.375% 10/1/22 | 4,000 | 4,130 | |
LBC Tank Terminals Holding Netherlands BV 6.875% 5/15/23 (b) | 1,455 | 1,522 | |
10,344 | |||
Food & Drug Retail - 1.0% | |||
Albertsons Companies LLC/Safeway, Inc./New Albertson's, Inc./Albertson's LLC: | |||
5.75% 3/15/25 | 2,420 | 2,130 | |
6.625% 6/15/24 | 930 | 874 | |
Albertsons, Inc.: | |||
6.625% 6/1/28 | 2,415 | 1,854 | |
7.45% 8/1/29 | 220 | 182 | |
BI-LO LLC/BI-LO Finance Corp.: | |||
9.25% 2/15/19 (b) | 2,606 | 2,378 | |
9.375% 9/15/18 pay-in-kind (b)(e) | 2,879 | 806 | |
FAGE International SA/FAGE U.S.A. Dairy Industry, Inc. 5.625% 8/15/26 (b) | 805 | 827 | |
Rite Aid Corp.: | |||
6.875% 12/15/28 (b)(e) | 5,785 | 4,454 | |
7.7% 2/15/27 | 2,715 | 2,308 | |
Tops Holding LLC/Tops Markets II Corp. 8% 6/15/22 (b) | 4,395 | 2,637 | |
18,450 | |||
Food/Beverage/Tobacco - 1.8% | |||
C&S Group Enterprises LLC 5.375% 7/15/22 (b) | 1,290 | 1,251 | |
Darling International, Inc. 5.375% 1/15/22 | 1,280 | 1,323 | |
ESAL GmbH 6.25% 2/5/23 (b) | 3,315 | 3,191 | |
JBS Investments GmbH: | |||
7.25% 4/3/24 (b) | 3,690 | 3,644 | |
7.75% 10/28/20 (b) | 4,850 | 4,949 | |
JBS U.S.A. LLC/JBS U.S.A. Finance, Inc.: | |||
5.75% 6/15/25 (b) | 3,150 | 3,056 | |
5.875% 7/15/24 (b) | 2,585 | 2,540 | |
Minerva Luxembourg SA 6.5% 9/20/26 (b) | 2,215 | 2,297 | |
Pilgrim's Pride Corp.: | |||
5.75% 3/15/25 (b) | 625 | 662 | |
5.875% 9/30/27 (b) | 1,110 | 1,154 | |
Post Holdings, Inc. 5.75% 3/1/27 (b) | 4,735 | 4,918 | |
Vector Group Ltd. 6.125% 2/1/25 (b) | 4,850 | 5,032 | |
34,017 | |||
Gaming - 2.4% | |||
Caesars Growth Properties Holdings LLC/Caesars Growth Properties Finance, Inc. 9.375% 5/1/22 | 7,900 | 8,496 | |
CRC Escrow Issuer LLC/CRC Finance LLC 5.25% 10/15/25 (b) | 5,530 | 5,566 | |
Eldorado Resorts, Inc. 6% 4/1/25 | 1,970 | 2,078 | |
Jacobs Entertainment, Inc. 7.875% 2/1/24 (b) | 495 | 535 | |
MGM Mirage, Inc. 8.625% 2/1/19 | 5,000 | 5,356 | |
Paris Las Vegas Holding LLC/Harrah's Las Vegas LLC/Flamingo Las Vegas Holdings, Inc. 11% 10/1/21 (e) | 7,110 | 7,537 | |
Penn National Gaming, Inc. 5.625% 1/15/27 (b) | 415 | 430 | |
Scientific Games Corp.: | |||
5% 10/15/25 (b) | 550 | 558 | |
7% 1/1/22 (b) | 1,445 | 1,528 | |
10% 12/1/22 | 5,980 | 6,615 | |
Station Casinos LLC 5% 10/1/25 (b) | 2,400 | 2,403 | |
Wynn Macau Ltd.: | |||
4.875% 10/1/24 (b) | 1,390 | 1,413 | |
5.5% 10/1/27 (b) | 1,710 | 1,733 | |
44,248 | |||
Healthcare - 6.4% | |||
Catalent Pharma Solutions 4.875% 1/15/26 (b) | 625 | 634 | |
Community Health Systems, Inc. 6.875% 2/1/22 | 9,725 | 7,038 | |
CTR Partnership LP/CareTrust Capital Corp. 5.25% 6/1/25 | 3,020 | 3,103 | |
HCA Holdings, Inc.: | |||
5.375% 2/1/25 | 4,375 | 4,512 | |
5.875% 2/15/26 | 2,290 | 2,407 | |
7.5% 2/15/22 | 5,095 | 5,783 | |
HealthSouth Corp.: | |||
5.75% 11/1/24 | 1,570 | 1,607 | |
5.75% 9/15/25 | 400 | 413 | |
Hologic, Inc. 4.375% 10/15/25 (b) | 905 | 919 | |
IMS Health, Inc. 5% 10/15/26 (b) | 2,205 | 2,343 | |
Tenet Healthcare Corp.: | |||
4.375% 10/1/21 | 3,350 | 3,338 | |
4.625% 7/15/24 (b) | 5,035 | 4,953 | |
6.75% 2/1/20 | 1,800 | 1,832 | |
6.75% 6/15/23 | 17,610 | 16,531 | |
7.5% 1/1/22 (b) | 1,220 | 1,284 | |
8.125% 4/1/22 | 8,975 | 9,020 | |
THC Escrow Corp. III 5.125% 5/1/25 (b) | 6,430 | 6,261 | |
Valeant Pharmaceuticals International, Inc.: | |||
5.375% 3/15/20 (b) | 9,510 | 9,355 | |
5.5% 3/1/23 (b) | 4,720 | 3,965 | |
5.5% 11/1/25 (b) | 1,780 | 1,820 | |
5.875% 5/15/23 (b) | 17,700 | 14,957 | |
6.125% 4/15/25 (b) | 1,715 | 1,441 | |
7% 3/15/24 (b) | 3,215 | 3,480 | |
7.25% 7/15/22 (b) | 315 | 302 | |
7.5% 7/15/21 (b) | 7,360 | 7,240 | |
Vizient, Inc. 10.375% 3/1/24 (b) | 2,275 | 2,594 | |
Wellcare Health Plans, Inc. 5.25% 4/1/25 | 1,570 | 1,652 | |
118,784 | |||
Homebuilders/Real Estate - 0.5% | |||
Brookfield Residential Properties, Inc./Brookfield Residential U.S. Corp. 6.125% 7/1/22 (b) | 1,290 | 1,346 | |
Brookfield Residential Properties, Inc.: | |||
6.375% 5/15/25 (b) | 470 | 492 | |
6.5% 12/15/20 (b) | 1,840 | 1,879 | |
Shea Homes Ltd. Partnership/Corp.: | |||
5.875% 4/1/23 (b) | 1,570 | 1,629 | |
6.125% 4/1/25 (b) | 1,150 | 1,196 | |
Taylor Morrison Communities, Inc./Monarch Communities, Inc. 5.875% 4/15/23 (b) | 2,150 | 2,302 | |
William Lyon Homes, Inc. 5.875% 1/31/25 | 1,260 | 1,285 | |
10,129 | |||
Insurance - 0.4% | |||
Alliant Holdings Co.-Issuer, Inc./Wayne Merger Sub LLC 8.25% 8/1/23 (b) | 570 | 607 | |
Hockey Merger Sub 2, Inc. 7.875% 10/1/21 (b) | 2,765 | 2,878 | |
Hub Holdings LLC/Hub Holdings Finance, Inc. 8.125% 7/15/19 pay-in-kind (b)(e) | 1,220 | 1,223 | |
USIS Merger Sub, Inc. 6.875% 5/1/25 (b) | 2,355 | 2,443 | |
7,151 | |||
Leisure - 0.3% | |||
Studio City Co. Ltd.: | |||
5.875% 11/30/19 (b) | 1,400 | 1,468 | |
7.25% 11/30/21 (b) | 3,645 | 3,901 | |
5,369 | |||
Metals/Mining - 1.4% | |||
Alpha Natural Resources, Inc. 9.75% 4/15/18 (c)(d) | 1,770 | 0 | |
Bluescope Steel Ltd./Bluescope Steel Finance 6.5% 5/15/21 (b) | 650 | 679 | |
First Quantum Minerals Ltd.: | |||
7% 2/15/21 (b) | 2,665 | 2,765 | |
7.25% 4/1/23 (b) | 1,930 | 2,041 | |
7.5% 4/1/25 (b) | 3,220 | 3,409 | |
FMG Resources (August 2006) Pty Ltd. 4.75% 5/15/22 (b) | 1,330 | 1,357 | |
Freeport-McMoRan, Inc.: | |||
6.5% 11/15/20 | 435 | 443 | |
6.75% 2/1/22 | 3,407 | 3,543 | |
6.875% 2/15/23 | 7,290 | 7,974 | |
Joseph T Ryerson & Son, Inc. 11% 5/15/22 (b) | 1,200 | 1,356 | |
Murray Energy Corp. 11.25% 4/15/21 (b) | 5,750 | 3,163 | |
Walter Energy, Inc. 9.5% 10/15/19 (b)(c)(d) | 2,360 | 0 | |
26,730 | |||
Paper - 0.1% | |||
Flex Acquisition Co., Inc. 6.875% 1/15/25 (b) | 940 | 972 | |
Publishing/Printing - 1.6% | |||
Cengage Learning, Inc. 9.5% 6/15/24 (b) | 4,000 | 3,605 | |
Cenveo Corp. 6% 8/1/19 (b) | 1,290 | 890 | |
Clear Channel International BV 8.75% 12/15/20 (b) | 505 | 530 | |
Harland Clarke Holdings Corp. 8.375% 8/15/22 (b) | 1,355 | 1,423 | |
McGraw-Hill Global Education Holdings LLC/McGraw-Hill Global Education Finance 7.875% 5/15/24 (b) | 6,020 | 6,058 | |
MHGE Parent LLC/MHGE Parent Finance, Inc. 8.5% 8/1/19 pay-in-kind (b)(e) | 18,124 | 18,101 | |
30,607 | |||
Restaurants - 0.6% | |||
1011778 BC Unlimited Liability Co./New Red Finance, Inc. 5% 10/15/25 (b) | 3,545 | 3,611 | |
Golden Nugget, Inc.: | |||
6.75% 10/15/24 (b) | 3,340 | 3,398 | |
8.75% 10/1/25 (b) | 1,630 | 1,675 | |
KFC Holding Co./Pizza Hut Holding LLC 4.75% 6/1/27 (b) | 1,530 | 1,570 | |
10,254 | |||
Services - 3.9% | |||
APX Group, Inc.: | |||
6.375% 12/1/19 | 2,336 | 2,377 | |
7.625% 9/1/23 | 6,790 | 7,146 | |
7.875% 12/1/22 | 15,535 | 16,758 | |
8.75% 12/1/20 | 27,443 | 28,129 | |
Avantor, Inc. 6% 10/1/24 (b) | 2,750 | 2,805 | |
Blueline Rental Finance Corp./Blueline Rental LLC 9.25% 3/15/24 (b) | 1,350 | 1,465 | |
Jurassic Holdings III, Inc. 6.875% 2/15/21 (Reg. S) (b) | 2,095 | 1,875 | |
Laureate Education, Inc. 8.25% 5/1/25 (b) | 5,650 | 6,081 | |
Prime Security One MS, Inc. 4.875% 7/15/32 (b) | 4,778 | 4,521 | |
United Rentals North America, Inc. 5.5% 5/15/27 | 1,355 | 1,450 | |
72,607 | |||
Steel - 0.3% | |||
Big River Steel LLC/BRS Finance Corp. 7.25% 9/1/25 (b) | 1,495 | 1,603 | |
Cliffs Natural Resources, Inc. 5.75% 3/1/25 (b) | 4,140 | 4,011 | |
5,614 | |||
Super Retail - 0.3% | |||
Netflix, Inc.: | |||
4.375% 11/15/26 (b) | 3,540 | 3,471 | |
4.875% 4/15/28 (b) | 2,060 | 2,048 | |
5,519 | |||
Technology - 3.6% | |||
Balboa Merger Sub, Inc. 11.375% 12/1/21 (b) | 10,620 | 11,602 | |
Brocade Communications Systems, Inc. 4.625% 1/15/23 | 160 | 164 | |
Ceridian HCM Holding, Inc. 11% 3/15/21 (b) | 4,345 | 4,589 | |
Diamond 1 Finance Corp./Diamond 2 Finance Corp.: | |||
5.875% 6/15/21 (b) | 1,930 | 2,021 | |
7.125% 6/15/24 (b) | 1,880 | 2,075 | |
EIG Investors Corp. 10.875% 2/1/24 | 3,405 | 3,763 | |
Ensemble S Merger Sub, Inc. 9% 9/30/23 (b) | 325 | 337 | |
Greeneden U.S. Holdings II LLC 10% 11/30/24 (b) | 4,570 | 5,158 | |
Inception Merger Sub, Inc./Rackspace Hosting, Inc. 8.625% 11/15/24 (b) | 2,575 | 2,712 | |
j2 Cloud Services LLC/j2 Global Communications, Inc. 6% 7/15/25 (b) | 1,320 | 1,389 | |
Micron Technology, Inc.: | |||
5.25% 1/15/24 (b) | 3,480 | 3,658 | |
5.5% 2/1/25 | 2,310 | 2,454 | |
Solera LLC/Solera Finance, Inc. 10.5% 3/1/24 (b) | 5,815 | 6,629 | |
TTM Technologies, Inc. 5.625% 10/1/25 (b) | 640 | 653 | |
Veritas U.S., Inc./Veritas Bermuda Ltd. 10.5% 2/1/24 (b) | 14,880 | 15,847 | |
Western Digital Corp. 10.5% 4/1/24 | 3,040 | 3,567 | |
66,618 | |||
Telecommunications - 6.7% | |||
Altice Financing SA: | |||
6.5% 1/15/22 (b) | 895 | 926 | |
7.5% 5/15/26 (b) | 4,005 | 4,390 | |
Altice Finco SA: | |||
7.625% 2/15/25 (b) | 4,995 | 5,352 | |
8.125% 1/15/24 (b) | 810 | 873 | |
C&W Senior Financing Designated Activity Co. 6.875% 9/15/27 (b) | 2,015 | 2,106 | |
CyrusOne LP/CyrusOne Finance Corp.: | |||
5% 3/15/24 (b) | 545 | 572 | |
5.375% 3/15/27 (b) | 465 | 497 | |
Equinix, Inc. 5.375% 5/15/27 | 1,575 | 1,687 | |
GCI, Inc. 6.875% 4/15/25 | 2,080 | 2,252 | |
Intelsat Jackson Holdings SA: | |||
8% 2/15/24 (b) | 8,435 | 8,941 | |
9.75% 7/15/25 (b) | 2,490 | 2,506 | |
Intelsat Luxembourg SA 8.125% 6/1/23 | 2,490 | 1,511 | |
Level 3 Financing, Inc. 6.125% 1/15/21 | 2,395 | 2,443 | |
Neptune Finco Corp.: | |||
6.625% 10/15/25 (b) | 1,990 | 2,181 | |
10.125% 1/15/23 (b) | 8,210 | 9,400 | |
10.875% 10/15/25 (b) | 5,445 | 6,670 | |
Sable International Finance Ltd. 6.875% 8/1/22 (b) | 2,415 | 2,590 | |
SFR Group SA: | |||
6% 5/15/22 (b) | 5,733 | 5,977 | |
6.25% 5/15/24 (b) | 1,150 | 1,205 | |
7.375% 5/1/26 (b) | 3,100 | 3,333 | |
Sprint Capital Corp. 8.75% 3/15/32 | 8,580 | 10,403 | |
Sprint Communications, Inc.: | |||
6% 11/15/22 | 13,834 | 14,526 | |
9% 11/15/18 (b) | 5,500 | 5,837 | |
Sprint Corp.: | |||
7.125% 6/15/24 | 4,195 | 4,535 | |
7.25% 9/15/21 | 270 | 294 | |
7.625% 2/15/25 | 825 | 904 | |
7.875% 9/15/23 | 8,400 | 9,387 | |
T-Mobile U.S.A., Inc. 6.836% 4/28/23 | 480 | 506 | |
Wind Tre SpA 5% 1/20/26 (b) | 3,195 | 3,216 | |
Zayo Group LLC/Zayo Capital, Inc.: | |||
5.75% 1/15/27 (b) | 4,400 | 4,637 | |
6% 4/1/23 | 3,795 | 3,989 | |
123,646 | |||
Transportation Ex Air/Rail - 0.9% | |||
Navios Maritime Acquisition Corp./Navios Acquisition Finance U.S., Inc. 8.125% 11/15/21 (b) | 3,470 | 3,054 | |
Navios Maritime Holdings, Inc.: | |||
7.375% 1/15/22 (b) | 5,250 | 4,305 | |
8.125% 2/15/19 | 1,404 | 1,383 | |
Navios South American Logistics, Inc./Navios Logistics Finance U.S., Inc. 7.25% 5/1/22 (b) | 1,215 | 1,191 | |
Teekay Corp. 8.5% 1/15/20 | 6,825 | 6,902 | |
16,835 | |||
Utilities - 5.9% | |||
Calpine Corp.: | |||
5.375% 1/15/23 | 2,615 | 2,540 | |
5.75% 1/15/25 | 1,120 | 1,064 | |
Dynegy, Inc.: | |||
5.875% 6/1/23 | 2,830 | 2,922 | |
7.375% 11/1/22 | 7,415 | 7,962 | |
7.625% 11/1/24 | 11,430 | 12,487 | |
8% 1/15/25 (b) | 1,515 | 1,655 | |
8.125% 1/30/26 (b) | 6,705 | 7,443 | |
Energy Future Intermediate Holding Co. LLC/Energy Future Intermediate Holding Finance, Inc.: | |||
11% 10/1/21 (c) | 11,804 | 16,820 | |
12.25% 3/1/22 (b)(c)(e) | 21,847 | 33,364 | |
InterGen NV 7% 6/30/23 (b) | 13,534 | 13,128 | |
NRG Energy, Inc. 6.625% 3/15/23 | 6,290 | 6,510 | |
Pattern Energy Group, Inc. 5.875% 2/1/24 (b) | 965 | 1,025 | |
PPL Energy Supply LLC 6.5% 6/1/25 | 1,305 | 1,135 | |
RJS Power Holdings LLC 4.625% 7/15/19 (b)(e) | 676 | 684 | |
The AES Corp. 5.125% 9/1/27 | 1,500 | 1,540 | |
110,279 | |||
TOTAL NONCONVERTIBLE BONDS | 1,272,665 | ||
TOTAL CORPORATE BONDS | |||
(Cost $1,235,044) | 1,272,846 | ||
Shares | Value (000s) | ||
Common Stocks - 19.9% | |||
Air Transportation - 0.6% | |||
Air Canada (g) | 293,100 | 5,807 | |
Delta Air Lines, Inc. | 100,000 | 5,003 | |
TOTAL AIR TRANSPORTATION | 10,810 | ||
Automotive & Auto Parts - 1.0% | |||
Allison Transmission Holdings, Inc. | 166,200 | 7,062 | |
Chassix Holdings, Inc. (d)(g) | 29,835 | 1,084 | |
Fiat Chrysler Automobiles NV (g) | 323,700 | 5,616 | |
General Motors Co. | 92,561 | 3,978 | |
General Motors Co. warrants 7/10/19 (g) | 11,706 | 298 | |
Motors Liquidation Co. GUC Trust (g) | 39,254 | 383 | |
TOTAL AUTOMOTIVE & AUTO PARTS | 18,421 | ||
Banks & Thrifts - 0.6% | |||
Bank of America Corp. | 302,100 | 8,275 | |
Washington Mutual, Inc. (d)(g) | 505,500 | 0 | |
Wells Fargo & Co. | 51,500 | 2,891 | |
WMI Holdings Corp. (g) | 17,605 | 15 | |
TOTAL BANKS & THRIFTS | 11,181 | ||
Broadcasting - 1.6% | |||
AMC Networks, Inc. Class A (g) | 99,600 | 5,068 | |
DISH Network Corp. Class A (g) | 100,000 | 4,854 | |
Gray Television, Inc. (g) | 594,070 | 9,250 | |
Nexstar Broadcasting Group, Inc. Class A | 122,000 | 7,784 | |
Sinclair Broadcast Group, Inc. Class A | 100,000 | 3,170 | |
TOTAL BROADCASTING | 30,126 | ||
Cable/Satellite TV - 0.4% | |||
Charter Communications, Inc. Class A (g) | 20,048 | 6,699 | |
Chemicals - 1.6% | |||
LyondellBasell Industries NV Class A | 57,795 | 5,984 | |
Olin Corp. | 149,700 | 5,469 | |
Platform Specialty Products Corp. (g) | 653,630 | 6,994 | |
The Chemours Co. LLC | 110,000 | 6,227 | |
Tronox Ltd. Class A | 210,843 | 5,581 | |
TOTAL CHEMICALS | 30,255 | ||
Consumer Products - 0.8% | |||
Newell Brands, Inc. | 136,100 | 5,550 | |
Spectrum Brands Holdings, Inc. | 81,100 | 8,915 | |
TOTAL CONSUMER PRODUCTS | 14,465 | ||
Containers - 0.5% | |||
Graphic Packaging Holding Co. | 551,774 | 8,547 | |
Diversified Financial Services - 0.8% | |||
AerCap Holdings NV (g) | 123,400 | 6,496 | |
The Blackstone Group LP | 250,000 | 8,323 | |
TOTAL DIVERSIFIED FINANCIAL SERVICES | 14,819 | ||
Diversified Media - 0.1% | |||
MDC Partners, Inc. Class A (g) | 175,000 | 2,013 | |
Energy - 1.1% | |||
Baker Hughes, a GE Co. Class A | 140,300 | 4,410 | |
Contura Energy, Inc. | 218 | 13 | |
Contura Energy, Inc. warrants 7/26/23 (g) | 354 | 8 | |
Diamondback Energy, Inc. (g) | 19,100 | 2,047 | |
Extraction Oil & Gas, Inc. | 313,025 | 4,993 | |
Forbes Energy Services Ltd. | 65,062 | 852 | |
Pioneer Natural Resources Co. | 27,500 | 4,116 | |
SM Energy Co. | 150,700 | 3,214 | |
Southwestern Energy Co. (g) | 88,116 | 489 | |
TOTAL ENERGY | 20,142 | ||
Food/Beverage/Tobacco - 0.3% | |||
Darling International, Inc. (g) | 272,100 | 4,966 | |
Gaming - 2.5% | |||
Boyd Gaming Corp. | 282,300 | 8,252 | |
Eldorado Resorts, Inc. (g) | 318,600 | 8,188 | |
Golden Entertainment, Inc. (g) | 4,500 | 120 | |
Melco Crown Entertainment Ltd. sponsored ADR | 240,600 | 6,082 | |
MGM Mirage, Inc. | 243,800 | 7,643 | |
Penn National Gaming, Inc. (g) | 296,000 | 7,723 | |
Red Rock Resorts, Inc. | 357,285 | 8,800 | |
TOTAL GAMING | 46,808 | ||
Healthcare - 1.4% | |||
Boston Scientific Corp. (g) | 246,400 | 6,934 | |
HCA Holdings, Inc. (g) | 82,100 | 6,211 | |
Jazz Pharmaceuticals PLC (g) | 55,400 | 7,841 | |
Legend Acquisition, Inc. (d)(g) | 18,796 | 446 | |
Tenet Healthcare Corp. (g)(h) | 306,600 | 4,378 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 64,500 | 890 | |
TOTAL HEALTHCARE | 26,700 | ||
Homebuilders/Real Estate - 0.4% | |||
Lennar Corp. Class A | 120,787 | 6,724 | |
Hotels - 0.1% | |||
Extended Stay America, Inc. unit | 91,600 | 1,816 | |
Metals/Mining - 0.0% | |||
Alpha Natural Resources Holdings, Inc. | 3,065 | 12 | |
Warrior Metropolitan Coal, Inc. | 17,041 | 443 | |
TOTAL METALS/MINING | 455 | ||
Services - 0.8% | |||
HD Supply Holdings, Inc. (g) | 237,400 | 8,402 | |
United Rentals, Inc. (g) | 41,700 | 5,900 | |
WP Rocket Holdings, Inc. (d)(g)(i) | 8,700,771 | 87 | |
TOTAL SERVICES | 14,389 | ||
Steel - 0.0% | |||
ANR, Inc. | 3,065 | 64 | |
ANR, Inc. rights 3/31/23 (g) | 1,821,772 | 15 | |
TOTAL STEEL | 79 | ||
Super Retail - 0.0% | |||
Arena Brands Holding Corp. Class B (d)(g)(i) | 42,253 | 50 | |
Technology - 4.2% | |||
Alphabet, Inc. Class A (g) | 6,500 | 6,715 | |
CDW Corp. | 84,700 | 5,929 | |
Dell Technologies, Inc. (g) | 93,600 | 7,747 | |
Facebook, Inc. Class A (g) | 39,594 | 7,129 | |
First Data Corp. Class A (g) | 390,000 | 6,946 | |
GoDaddy, Inc. (g) | 100,000 | 4,670 | |
Micron Technology, Inc. (g) | 186,400 | 8,259 | |
ON Semiconductor Corp. (g) | 451,200 | 9,620 | |
Presidio, Inc. | 140,400 | 2,078 | |
Qorvo, Inc. (g) | 97,400 | 7,384 | |
Skyworks Solutions, Inc. | 82,100 | 9,348 | |
VeriSign, Inc. (g)(h) | 24,600 | 2,645 | |
TOTAL TECHNOLOGY | 78,470 | ||
Telecommunications - 0.9% | |||
Alibaba Group Holding Ltd. sponsored ADR (g) | 32,200 | 5,953 | |
Altice U.S.A., Inc. Class A (h) | 289,400 | 6,853 | |
Pendrell Corp. (g) | 3,747 | 24 | |
T-Mobile U.S., Inc. (g) | 58,900 | 3,520 | |
TOTAL TELECOMMUNICATIONS | 16,350 | ||
Utilities - 0.2% | |||
Dynegy, Inc. (g) | 178,500 | 2,222 | |
The AES Corp. | 198,300 | 2,108 | |
TOTAL UTILITIES | 4,330 | ||
TOTAL COMMON STOCKS | |||
(Cost $312,100) | 368,615 | ||
Convertible Preferred Stocks - 0.8% | |||
Energy - 0.1% | |||
Southwestern Energy Co. Series B 6.25% | 211,700 | 2,693 | |
Healthcare - 0.5% | |||
Allergan PLC 5.50% | 10,200 | 6,541 | |
Teva Pharmaceutical Industries Ltd. 7% | 6,650 | 1,890 | |
TOTAL HEALTHCARE | 8,431 | ||
Utilities - 0.2% | |||
Dynegy, Inc. 7.00% | 45,600 | 3,735 | |
TOTAL CONVERTIBLE PREFERRED STOCKS | |||
(Cost $26,825) | 14,859 | ||
Principal Amount (000s)(a) | Value (000s) | ||
Bank Loan Obligations - 2.8% | |||
Automotive & Auto Parts - 0.0% | |||
Chassix, Inc. term loan 12% 7/29/19 (d) | 148 | 147 | |
Cable/Satellite TV - 0.3% | |||
Numericable LLC Tranche B 12LN, term loan 3 month U.S. LIBOR + 3.000% 4.3491% 1/1/26 (e)(f) | 4,845 | 4,846 | |
Chemicals - 0.0% | |||
Tronox Blocked Borrower LLC Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4.3231% 9/22/24 (e)(f) | 224 | 225 | |
Tronox Finance LLC Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4.3283% 9/22/24 (e)(f) | 516 | 520 | |
TOTAL CHEMICALS | 745 | ||
Energy - 1.0% | |||
American Energy-Marcellus LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.250% 5.3387% 8/4/20 (c)(e)(f) | 1,521 | 1,119 | |
California Resources Corp. Tranche 1LN, term loan 3 month U.S. LIBOR + 10.375% 11.6117% 12/31/21 (e)(f) | 7,005 | 7,501 | |
Chesapeake Energy Corp. Tranche 1LN, term loan 3 month U.S. LIBOR + 7.500% 8.8144% 8/23/21 (e)(f) | 2,050 | 2,197 | |
Chief Exploration & Development, LLC. Tranche 2LN, term loan 3 month U.S. LIBOR + 6.500% 7.9586% 5/16/21 (e)(f) | 2,295 | 2,241 | |
Forbes Energy Services LLC Tranche B, term loan 12% 4/13/21 (d)(e) | 641 | 645 | |
FTS International, Inc. Tranche B, term loan 3 month U.S. LIBOR + 4.750% 5.9923% 4/16/21 (e)(f) | 585 | 570 | |
Gavilan Resources LLC Tranche 2LN, term loan 3 month U.S. LIBOR + 6.000% 7.2378% 3/1/24 (e)(f) | 1,800 | 1,742 | |
Pacific Drilling SA Tranche B, term loan 3 month U.S. LIBOR + 3.500% 4.875% 6/3/18 (e)(f) | 564 | 184 | |
Seadrill Operating LP Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4.3328% 2/21/21 (e)(f) | 3,017 | 2,289 | |
TOTAL ENERGY | 18,488 | ||
Entertainment/Film - 0.0% | |||
Livent, Inc. Tranche A, term loan 18% 1/15/49 pay-in-kind (d) | CAD | 1,069 | 414 |
Healthcare - 0.3% | |||
U.S. Renal Care, Inc.: | |||
Tranche 2LN, term loan 3 month U.S. LIBOR + 8.000% 9.3328% 12/31/23 (e)(f) | 2,935 | 2,847 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.250% 5.5828% 12/31/22 (e)(f) | 3,533 | 3,410 | |
TOTAL HEALTHCARE | 6,257 | ||
Homebuilders/Real Estate - 0.0% | |||
DTZ U.S. Borrower LLC Tranche 2LN, term loan 3 month U.S. LIBOR + 8.250% 9.6301% 11/4/22 (e)(f) | 77 | 78 | |
Leisure - 0.0% | |||
Intrawest Resorts Holdings, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 4.4923% 7/31/24 (e)(f) | 55 | 56 | |
Metals/Mining - 0.1% | |||
Murray Energy Corp. Tranche B 2LN, term loan 3 month U.S. LIBOR + 7.250% 8.5828% 4/16/20 (e)(f) | 1,361 | 1,210 | |
Paper - 0.0% | |||
Caraustar Industries, Inc. Tranche B, term loan 3 month U.S. LIBOR + 5.500% 6.8328% 3/14/22 (e)(f) | 284 | 286 | |
Services - 0.1% | |||
KUEHG Corp. Tranche B, term loan 3 month U.S. LIBOR + 8.250% 9.5828% 8/22/25 (e)(f) | 2,615 | 2,608 | |
Super Retail - 0.2% | |||
Bass Pro Shops LLC. Tranche B, term loan 3 month U.S. LIBOR + 5.000% 6.2417% 9/25/24 (e)(f) | 4,415 | 4,283 | |
Technology - 0.6% | |||
Kronos, Inc. term loan 3 month U.S. LIBOR + 8.250% 9.5606% 11/1/24 (e)(f) | 3,650 | 3,753 | |
Mcafee LLC Tranche B, term loan 3 month U.S. LIBOR + 8.500% 9.8328% 9/29/25 (e)(f) | 1,865 | 1,893 | |
Renaissance Learning, Inc.: | |||
Tranche 1LN, term loan 3 month U.S. LIBOR + 3.750% 5.0828% 4/9/21 (e)(f) | 569 | 573 | |
Tranche 2LN, term loan 3 month U.S. LIBOR + 7.000% 8.3328% 4/9/22 (e)(f) | 4,065 | 4,106 | |
TOTAL TECHNOLOGY | 10,325 | ||
Telecommunications - 0.2% | |||
Sable International Finance Ltd. Tranche B, term loan 3 month U.S. LIBOR + 3.500% 4.7423% 1/31/25 (e)(f) | 2,680 | 2,690 | |
TOTAL BANK LOAN OBLIGATIONS | |||
(Cost $52,801) | 52,433 | ||
Preferred Securities - 2.6% | |||
Banks & Thrifts - 2.6% | |||
Bank of America Corp. 6.1% (e)(j) | 2,590 | 2,911 | |
Barclays Bank PLC 7.625% 11/21/22 | 10,205 | 12,070 | |
Citigroup, Inc. 5.35% (e)(j) | 12,655 | 13,553 | |
Credit Agricole SA: | |||
6.625% (b)(e)(j) | 4,590 | 4,858 | |
7.875% (b)(e)(j) | 2,365 | 2,713 | |
8.125% (b)(e)(j) | 6,230 | 7,553 | |
Goldman Sachs Group, Inc. 5.375% (e)(j) | 4,045 | 4,300 | |
TOTAL PREFERRED SECURITIES | |||
(Cost $44,342) | 47,958 | ||
Shares | Value (000s) | ||
Money Market Funds - 4.5% | |||
Fidelity Cash Central Fund, 1.10% (k) | 77,672,096 | 77,688 | |
Fidelity Securities Lending Cash Central Fund 1.11% (k)(l) | 5,807,980 | 5,809 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $83,498) | 83,497 | ||
TOTAL INVESTMENT IN SECURITIES - 99.2% | |||
(Cost $1,754,610) | 1,840,208 | ||
NET OTHER ASSETS (LIABILITIES) - 0.8% | 14,914 | ||
NET ASSETS - 100% | $1,855,122 |
Currency Abbreviations
CAD – Canadian dollar
Values shown as $0 may reflect amounts less than $500.
Legend
(a) Amount is stated in United States dollars unless otherwise noted.
(b) 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 $761,374,000 or 41.0% of net assets.
(c) Non-income producing - Security is in default.
(d) Level 3 security
(e) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end.
(f) Coupon is indexed to a floating interest rate which may be multiplied by a specified factor and/or subject to caps or floors.
(g) Non-income producing
(h) Security or a portion of the security is on loan at period end.
(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 $137,000 or 0.0% of net assets.
(j) Security is perpetual in nature with no stated maturity date.
(k) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(l) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost (000s) |
Arena Brands Holding Corp. Class B | 6/18/97 - 7/13/98 | $1,538 |
WP Rocket Holdings, Inc. | 6/24/11 - 2/2/15 | $4,521 |
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
(Amounts in thousands) | |
Fidelity Cash Central Fund | $557 |
Fidelity Securities Lending Cash Central Fund | 22 |
Total | $579 |
Investment Valuation
The following is a summary of the inputs used, as of October 31, 2017, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
(Amounts in thousands) | ||||
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $110,762 | $109,628 | $-- | $1,134 |
Consumer Staples | 13,881 | 13,881 | -- | -- |
Energy | 23,369 | 20,676 | 2,693 | -- |
Financials | 19,887 | 19,887 | -- | -- |
Health Care | 35,131 | 26,254 | 8,431 | 446 |
Industrials | 38,781 | 38,694 | -- | 87 |
Information Technology | 84,423 | 84,423 | -- | -- |
Materials | 38,802 | 38,802 | -- | -- |
Telecommunication Services | 10,373 | 10,373 | -- | -- |
Utilities | 8,065 | 4,330 | 3,735 | -- |
Corporate Bonds | 1,272,846 | -- | 1,272,845 | 1 |
Bank Loan Obligations | 52,433 | -- | 51,227 | 1,206 |
Preferred Securities | 47,958 | -- | 47,958 | -- |
Money Market Funds | 83,497 | 83,497 | -- | -- |
Total Investments in Securities: | $1,840,208 | $450,445 | $1,386,889 | $2,874 |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 79.6% |
Canada | 4.3% |
Luxembourg | 3.5% |
Netherlands | 2.5% |
Cayman Islands | 1.9% |
United Kingdom | 1.7% |
France | 1.4% |
Ireland | 1.1% |
Others (Individually Less Than 1%) | 4.0% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | October 31, 2017 | |
Assets | ||
Investment in securities, at value (including securities loaned of $5,768) See accompanying schedule: Unaffiliated issuers (cost $1,671,112) | $1,756,711 | |
Fidelity Central Funds (cost $83,498) | 83,497 | |
Total Investment in Securities (cost $1,754,610) | $1,840,208 | |
Receivable for investments sold | 16,265 | |
Receivable for fund shares sold | 729 | |
Dividends receivable | 146 | |
Interest receivable | 25,676 | |
Distributions receivable from Fidelity Central Funds | 91 | |
Prepaid expenses | 4 | |
Other receivables | 64 | |
Total assets | 1,883,183 | |
Liabilities | ||
Payable to custodian bank | $550 | |
Payable for investments purchased | 15,891 | |
Payable for fund shares redeemed | 3,587 | |
Distributions payable | 628 | |
Accrued management fee | 863 | |
Distribution and service plan fees payable | 315 | |
Other affiliated payables | 290 | |
Other payables and accrued expenses | 128 | |
Collateral on securities loaned | 5,809 | |
Total liabilities | 28,061 | |
Net Assets | $1,855,122 | |
Net Assets consist of: | ||
Paid in capital | $1,748,698 | |
Undistributed net investment income | 20,167 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 660 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 85,597 | |
Net Assets | $1,855,122 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($506,594 ÷ 44,399 shares) | $11.41 | |
Maximum offering price per share (100/96.00 of $11.41) | $11.89 | |
Class M: | ||
Net Asset Value and redemption price per share ($381,654 ÷ 33,265 shares) | $11.47 | |
Maximum offering price per share (100/96.00 of $11.47) | $11.95 | |
Class C: | ||
Net Asset Value and offering price per share ($155,681 ÷ 13,669 shares)(a) | $11.39 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($811,193 ÷ 75,798 shares) | $10.70 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Amounts in thousands | Year ended October 31, 2017 | |
Investment Income | ||
Dividends | $11,864 | |
Interest | 95,675 | |
Income from Fidelity Central Funds | 579 | |
Total income | 108,118 | |
Expenses | ||
Management fee | $10,477 | |
Transfer agent fees | 2,932 | |
Distribution and service plan fees | 3,979 | |
Accounting and security lending fees | 623 | |
Custodian fees and expenses | 37 | |
Independent trustees' fees and expenses | 8 | |
Registration fees | 98 | |
Audit | 90 | |
Legal | 82 | |
Miscellaneous | 15 | |
Total expenses before reductions | 18,341 | |
Expense reductions | (52) | 18,289 |
Net investment income (loss) | 89,829 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 31,487 | |
Fidelity Central Funds | (4) | |
Foreign currency transactions | (1) | |
Total net realized gain (loss) | 31,482 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 106,026 | |
Fidelity Central Funds | (1) | |
Assets and liabilities in foreign currencies | (1) | |
Total change in net unrealized appreciation (depreciation) | 106,024 | |
Net gain (loss) | 137,506 | |
Net increase (decrease) in net assets resulting from operations | $227,335 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Amounts in thousands | Year ended October 31, 2017 | Year ended October 31, 2016 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $89,829 | $93,756 |
Net realized gain (loss) | 31,482 | 3,667 |
Change in net unrealized appreciation (depreciation) | 106,024 | 14,257 |
Net increase (decrease) in net assets resulting from operations | 227,335 | 111,680 |
Distributions to shareholders from net investment income | (82,955) | (90,997) |
Total distributions | (82,955) | (90,997) |
Share transactions - net increase (decrease) | (209,589) | (118,006) |
Redemption fees | 143 | 208 |
Total increase (decrease) in net assets | (65,066) | (97,115) |
Net Assets | ||
Beginning of period | 1,920,188 | 2,017,303 |
End of period | $1,855,122 | $1,920,188 |
Other Information | ||
Undistributed net investment income end of period | $20,167 | $15,749 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Advisor High Income Advantage Fund Class A
Years ended October 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected PerShare Data | |||||
Net asset value, beginning of period | $10.57 | $10.43 | $10.88 | $10.73 | $10.21 |
Income from Investment Operations | |||||
Net investment income (loss)A | .525 | .501 | .498 | .480 | .569 |
Net realized and unrealized gain (loss) | .796 | .123 | (.489) | .236 | .558 |
Total from investment operations | 1.321 | .624 | .009 | .716 | 1.127 |
Distributions from net investment income | (.482) | (.485) | (.451) | (.449) | (.482) |
Distributions from net realized gain | | | (.010) | (.118) | (.127) |
Total distributions | (.482) | (.485) | (.461) | (.567) | (.609) |
Redemption fees added to paid in capitalA | .001 | .001 | .002 | .001 | .002 |
Net asset value, end of period | $11.41 | $10.57 | $10.43 | $10.88 | $10.73 |
Total ReturnB,C | 12.75% | 6.30% | .06% | 6.84% | 11.39% |
Ratios to Average Net AssetsD,E | |||||
Expenses before reductions | 1.02% | 1.04% | 1.02% | 1.02% | 1.02% |
Expenses net of fee waivers, if any | 1.01% | 1.03% | 1.02% | 1.02% | 1.02% |
Expenses net of all reductions | 1.01% | 1.03% | 1.02% | 1.02% | 1.02% |
Net investment income (loss) | 4.75% | 4.94% | 4.62% | 4.42% | 5.42% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $507 | $593 | $636 | $682 | $698 |
Portfolio turnover rateF | 49% | 46% | 42% | 41% | 66% |
A Calculated based on average shares outstanding during the period.
B Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
C Total returns do not include the effect of the sales charges.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor High Income Advantage Fund Class M
Years ended October 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected PerShare Data | |||||
Net asset value, beginning of period | $10.63 | $10.49 | $10.93 | $10.78 | $10.26 |
Income from Investment Operations | |||||
Net investment income (loss)A | .529 | .505 | .501 | .484 | .573 |
Net realized and unrealized gain (loss) | .795 | .123 | (.479) | .233 | .555 |
Total from investment operations | 1.324 | .628 | .022 | .717 | 1.128 |
Distributions from net investment income | (.485) | (.489) | (.454) | (.450) | (.483) |
Distributions from net realized gain | | | (.010) | (.118) | (.127) |
Total distributions | (.485) | (.489) | (.464) | (.568) | (.610) |
Redemption fees added to paid in capitalA | .001 | .001 | .002 | .001 | .002 |
Net asset value, end of period | $11.47 | $10.63 | $10.49 | $10.93 | $10.78 |
Total ReturnB,C | 12.71% | 6.30% | .18% | 6.81% | 11.34% |
Ratios to Average Net AssetsD,E | |||||
Expenses before reductions | 1.01% | 1.03% | 1.02% | 1.01% | 1.01% |
Expenses net of fee waivers, if any | 1.01% | 1.03% | 1.02% | 1.01% | 1.01% |
Expenses net of all reductions | 1.01% | 1.03% | 1.02% | 1.01% | 1.01% |
Net investment income (loss) | 4.76% | 4.95% | 4.63% | 4.43% | 5.43% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $382 | $409 | $445 | $504 | $528 |
Portfolio turnover rateF | 49% | 46% | 42% | 41% | 66% |
A Calculated based on average shares outstanding during the period.
B Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
C Total returns do not include the effect of the sales charges.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor High Income Advantage Fund Class C
Years ended October 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected PerShare Data | |||||
Net asset value, beginning of period | $10.55 | $10.41 | $10.86 | $10.71 | $10.19 |
Income from Investment Operations | |||||
Net investment income (loss)A | .440 | .424 | .415 | .398 | .489 |
Net realized and unrealized gain (loss) | .796 | .122 | (.488) | .237 | .560 |
Total from investment operations | 1.236 | .546 | (.073) | .635 | 1.049 |
Distributions from net investment income | (.397) | (.407) | (.369) | (.368) | (.404) |
Distributions from net realized gain | | | (.010) | (.118) | (.127) |
Total distributions | (.397) | (.407) | (.379) | (.486) | (.531) |
Redemption fees added to paid in capitalA | .001 | .001 | .002 | .001 | .002 |
Net asset value, end of period | $11.39 | $10.55 | $10.41 | $10.86 | $10.71 |
Total ReturnB,C | 11.92% | 5.51% | (.70)% | 6.05% | 10.58% |
Ratios to Average Net AssetsD,E | |||||
Expenses before reductions | 1.78% | 1.79% | 1.78% | 1.77% | 1.77% |
Expenses net of fee waivers, if any | 1.77% | 1.79% | 1.78% | 1.77% | 1.77% |
Expenses net of all reductions | 1.77% | 1.79% | 1.78% | 1.77% | 1.77% |
Net investment income (loss) | 3.99% | 4.18% | 3.86% | 3.67% | 4.67% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $156 | $163 | $171 | $182 | $183 |
Portfolio turnover rateF | 49% | 46% | 42% | 41% | 66% |
A Calculated based on average shares outstanding during the period.
B Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
C Total returns do not include the effect of the contingent deferred sales charge.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor High Income Advantage Fund Class I
Years ended October 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected PerShare Data | |||||
Net asset value, beginning of period | $9.91 | $9.78 | $10.20 | $10.10 | $9.65 |
Income from Investment Operations | |||||
Net investment income (loss)A | .517 | .493 | .488 | .474 | .561 |
Net realized and unrealized gain (loss) | .750 | .113 | (.455) | .216 | .524 |
Total from investment operations | 1.267 | .606 | .033 | .690 | 1.085 |
Distributions from net investment income | (.478) | (.477) | (.445) | (.473) | (.510) |
Distributions from net realized gain | | | (.010) | (.118) | (.127) |
Total distributions | (.478) | (.477) | (.455) | (.591) | (.637) |
Redemption fees added to paid in capitalA | .001 | .001 | .002 | .001 | .002 |
Net asset value, end of period | $10.70 | $9.91 | $9.78 | $10.20 | $10.10 |
Total ReturnB | 13.06% | 6.54% | .31% | 7.02% | 11.63% |
Ratios to Average Net AssetsC,D | |||||
Expenses before reductions | .77% | .80% | .80% | .78% | .77% |
Expenses net of fee waivers, if any | .77% | .80% | .80% | .78% | .77% |
Expenses net of all reductions | .77% | .80% | .80% | .78% | .77% |
Net investment income (loss) | 5.00% | 5.17% | 4.84% | 4.66% | 5.68% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $811 | $755 | $760 | $658 | $497 |
Portfolio turnover rateE | 49% | 46% | 42% | 41% | 66% |
A Calculated based on average shares outstanding during the period.
B Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
C Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
D 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.
E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended October 31, 2017
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor High Income Advantage 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 M (formerly Class T), Class C and Class I shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.
After the close of business on June 24, 2016, all outstanding Class B shares were converted to Class A shares. All prior fiscal period dollar and share amounts for Class B presented in the Notes to Financial Statements are for the period November 1, 2015 through June 24, 2016.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Valuation techniques used to value the Fund's investments by major category are as follows:
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds, bank loan obligations 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. The Fund invests a significant portion of its assets in below investment grade securities. The value of these securities can be more volatile due to changes in the credit quality of the issuer and is sensitive to changes in economic, market and regulatory conditions.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of October 31, 2017 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 includes 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. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Paid in Kind (PIK) income is recorded at the fair market value of the securities received. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of October 31, 2017, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Dividends are declared and recorded daily and paid monthly from net investment income. Distributions from realized gains, if any, are declared and recorded on the ex-dividend date. Income 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, market discount, equity-debt classifications, partnerships, deferred trustees compensation, capital loss carryforwards, expiring capital loss carryforwards and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
Gross unrealized appreciation | $177,316 |
Gross unrealized depreciation | (84,130) |
Net unrealized appreciation (depreciation) | $93,186 |
Tax Cost | $1,747,022 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $13,665 |
Net unrealized appreciation (depreciation) on securities and other investments | $93,186 |
The tax character of distributions paid was as follows:
October 31, 2017 | October 31, 2016 | |
Ordinary Income | $82,955 | $ 90,997 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days may have been subject to a redemption fee equal to 1.00% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital. In November 2017, the Board of Trustees approved the elimination of these redemption fees effective December 18, 2017.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Loans and Other Direct Debt Instruments. The Fund invests in direct debt instruments which are interests in amounts owed to lenders by corporate or other borrowers. These instruments may be in the form of loans, trade claims or other receivables and may include standby financing commitments such as revolving credit facilities that obligate the Fund to supply additional cash to the borrower on demand. Loans may be acquired through assignment or participation, or may be made directly to a borrower. The Fund did not have any unfunded loan commitments, which are contractual obligations for future funding, at period end.
New Accounting Pronouncement. In March 2017, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU), ASU 2017-08, which amends the amortization period for certain callable debt securities that are held at a premium. The amendment requires the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount. The ASU is effective for annual periods beginning after December 15, 2018. Management is currently evaluating the potential impact of these changes to the financial statements.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $890,085 and $1,146,849, 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 .45% of the Fund's average net assets and an annualized group fee rate that averaged .11% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annual management fee rate was .56% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
Distribution Fee | Service Fee | Total Fees | Retained by FDC |
|
Class A | -% | .25% | $1,374 | $4 |
Class M | -% | .25% | 993 | |
Class C | .75% | .25% | 1,612 | 112 |
$3,979 | $116 |
Sales Load. FDC may receive a front-end sales charge of up to 4.00% for selling Class A shares and Class M 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 M and Class C redemptions. The deferred sales charges are 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class M shares.
For the period, sales charge amounts retained by FDC were as follows:
Retained by FDC |
|
Class A | $18 |
Class M | 6 |
Class C(a) | 7 |
$31 |
(a) When Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
Amount | % of Class-Level Average Net Assets |
|
Class A | $855 | .16 |
Class M | 592 | .15 |
Class C | 267 | .17 |
Class I | 1,218 | .16 |
$2,932 |
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 $8 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $6 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. 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 $22, including $1 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 $35 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $6.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $11.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Year ended October 31, 2017 | Year ended October 31, 2016 | |
From net investment income | ||
Class A | $24,253 | $28,391 |
Class M | 17,458 | 19,580 |
Class B | | 118 |
Class C | 5,849 | 6,453 |
Class I | 35,395 | 36,455 |
Total | $82,955 | $90,997 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Year ended October 31, 2017 | Year ended October 31, 2016 | Year ended October 31, 2017 | Year ended October 31, 2016 | |
Class A | ||||
Shares sold | 7,810 | 9,360 | $86,026 | $94,401 |
Reinvestment of distributions | 2,011 | 2,518 | 22,179 | 25,499 |
Shares redeemed | (21,570) | (16,751) | (238,752) | (168,555) |
Net increase (decrease) | (11,749) | (4,873) | $(130,547) | $(48,655) |
Class M | ||||
Shares sold | 3,333 | 3,913 | $36,927 | $39,586 |
Reinvestment of distributions | 1,459 | 1,744 | 16,192 | 17,764 |
Shares redeemed | (9,984) | (9,602) | (110,969) | (97,166) |
Net increase (decrease) | (5,192) | (3,945) | $(57,850) | $(39,816) |
Class B | ||||
Shares sold | | 19 | $ | $187 |
Reinvestment of distributions | | 10 | | 96 |
Shares redeemed | | (540) | | (5,385) |
Net increase (decrease) | | (511) | $ | $(5,102) |
Class C | ||||
Shares sold | 1,799 | 2,518 | $19,762 | $25,316 |
Reinvestment of distributions | 463 | 522 | 5,095 | 5,276 |
Shares redeemed | (4,082) | (3,959) | (44,978) | (39,782) |
Net increase (decrease) | (1,820) | (919) | $(20,121) | $(9,190) |
Class I | ||||
Shares sold | 28,270 | 23,291 | $293,804 | $220,365 |
Reinvestment of distributions | 2,942 | 3,361 | 30,479 | 31,960 |
Shares redeemed | (31,537) | (28,260) | (325,354) | (267,568) |
Net increase (decrease) | (325) | (1,608) | $(1,071) | $(15,243) |
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.
12. Litigation.
The Fund, and other entities managed by FMR or its affiliates were named as defendants in a lawsuit filed in the United States Bankruptcy Court for the Southern District of New York in 2009. The lawsuit was brought by creditors of Motors Liquidation Company (f/k/a General Motors), which went through Chapter 11 bankruptcy proceedings in 2009, and is captioned Official Committee of Unsecured Creditors of Motors Liquidation Company v. JPMorgan Chase Bank, N.A., et al., Adversary No. 09-00504 (REG). The plaintiffs are seeking an order that the Fund and other defendants return proceeds received in 2009 in full payment of the principal and interest on General Motors secured debt. The plaintiffs contend that the Fund and the other defendants were not secured creditors at the time of the 2009 payments and, thus, were not entitled to payment in full. In January 2015, the Court of Appeals ruled that JPMorgan, as administrative agent for all of the debtholders, released the security interest on certain collateral securing the debt prior to the 2009 payments. In September 2017, an opinion was issued in a trial intended to help determine the value of any remaining, unreleased collateral. Management is evaluating the impact of this ruling and the parties have agreed to mediation. At this time, Management cannot determine the amount of loss that may be realized, but expects the amount to be less than the $5,769 received in 2009. The Fund is also incurring legal costs in defending the case.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Advisor Series I and Shareholders of Fidelity Advisor High Income Advantage Fund:
We have audited the accompanying statement of assets and liabilities of Fidelity Advisor High Income Advantage Fund (the Fund), a fund of Fidelity Advisor Series I, including the schedule of investments, as of October 31, 2017, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2017, by correspondence with the custodians and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Fidelity Advisor High Income Advantage Fund as of October 31, 2017, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
December 14, 2017
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Each of the Trustees oversees 190 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The funds Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and sector funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. For example, a working group comprised of Independent Trustees and FMR has worked and continues to work to review the Fidelity® funds' valuation-related activities, reporting and risk management. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-present), and Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the board of Artis-Naples, Naples, Florida, and as a Trustee for Brewster Academy, Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
Charles S. Morrison (1960)
Year of Election or Appointment: 2014
Trustee
Mr. Morrison also serves as Trustee of other funds. He serves as President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present), a Director of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2014-present), Director of Fidelity SelectCo, LLC (investment adviser firm, 2014-present), President, Asset Management (2014-present), and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (investment adviser firm, 2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.
* Determined to be an Interested Trustee by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Childrens Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present) and Board of Directors (2017-present) of the Asolo Repertory Theatre.
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Busters Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Vice Chair of the Board of Governors, State University System of Florida (2013-present) and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present) and the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
William S. Stavropoulos (1939)
Year of Election or Appointment: 2002
Trustee
Vice Chairman of the Independent Trustees
Mr. Stavropoulos also serves as Trustee of other Fidelity® funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of Artis-Naples in Naples, Florida. Previously, Mr. Stavropoulos served as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication), and as a member of the Board of Trustees of the University of Florida (2013-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
Marc R. Bryant (1966)
Year of Election or Appointment: 2015
Secretary and Chief Legal Officer (CLO)
Mr. Bryant also serves as Secretary and CLO of other funds. Mr. Bryant serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company (investment adviser firm, 2015-present) and FMR Co., Inc. (investment adviser firm, 2015-present); Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2015-present) and Fidelity Investments Money Management, Inc. (investment adviser firm, 2015-present); and CLO of Fidelity Management & Research (Hong Kong) Limited and FMR Investment Management (UK) Limited (investment adviser firms, 2015-present) and Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and CLO of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006).
William C. Coffey (1969)
Year of Election or Appointment: 2009
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds, and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Stephanie J. Dorsey (1969)
Year of Election or Appointment: 2010
Assistant Treasurer
Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank.
Howard J. Galligan III (1966)
Year of Election or Appointment: 2014
Chief Financial Officer
Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (investment adviser firm, 2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011).
Thomas C. Hense (1964)
Year of Election or Appointment: 2008, 2010, or 2015
Vice President
Mr. Hense serves as Vice President of Fidelity Advisor® Multi-Asset Income Fund (2015) and other funds (High Income (2008), Small Cap (2008), and Value (2010) funds), and is an employee of Fidelity Investments (1993-present). Previously, Mr. Hense served as a portfolio manager for Fidelity's Institutional Money Management Group (Pyramis) (2003-2008).
Brian B. Hogan (1964)
Year of Election or Appointment: 2009
Vice President
Mr. Hogan also serves as Trustee or Vice President of other funds. Mr. Hogan serves as a Director of FMR Investment Management (UK) Limited (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present) and President of the Equity Division of FMR (investment adviser firm, 2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager. Mr. Brian B. Hogan is not related to Mr. Colm A. Hogan.
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan is an employee of Fidelity Investments (2005-present). Mr. Colm A. Hogan is not related to Mr. Brian B. Hogan.
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Rieco E. Mello (1969)
Year of Election or Appointment: 2017
Assistant Treasurer
Mr. Mello also serves as Assistant Treasurer of other funds. Mr. Mello is an employee of Fidelity Investments (1995-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Renee Stagnone (1975)
Year of Election or Appointment: 2016
Assistant Treasurer
Ms. Stagnone also serves as an officer of other funds. Ms. Stagnone is an employee of Fidelity Investments (1997-present). Previously, Ms. Stagnone served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (May 1, 2017 to October 31, 2017).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Annualized Expense Ratio-A | Beginning Account Value May 1, 2017 | Ending Account Value October 31, 2017 | Expenses Paid During Period-B May 1, 2017 to October 31, 2017 |
|
Class A | 1.00% | |||
Actual | $1,000.00 | $1,046.30 | $5.16 | |
Hypothetical-C | $1,000.00 | $1,020.16 | $5.09 | |
Class M | .99% | |||
Actual | $1,000.00 | $1,046.20 | $5.11 | |
Hypothetical-C | $1,000.00 | $1,020.21 | $5.04 | |
Class C | 1.75% | |||
Actual | $1,000.00 | $1,042.40 | $9.01 | |
Hypothetical-C | $1,000.00 | $1,016.38 | $8.89 | |
Class I | .76% | |||
Actual | $1,000.00 | $1,047.40 | $3.92 | |
Hypothetical-C | $1,000.00 | $1,021.37 | $3.87 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
A total of 0.08% of the dividends distributed during the fiscal year was derived from interest on U.S. Government securities which is generally exempt from state income tax.
The fund designates $ 54,787,718 of distributions paid during the period January 1, 2017 to October 31, 2017 as qualifying to be taxed as interest-related dividends for nonresident alien shareholders.
The fund will notify shareholders in January 2018 of amounts for use in preparing 2017 income tax returns.
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Advisor High Income Advantage Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. FMR and the sub-advisers are referred to herein as the Investment Advisers. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established various standing committees (Committees), each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to review matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to all of the Fidelity funds.
At its July 2017 meeting, the Board unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and would be realized as the fund grows, and whether any economies of scale are appropriately shared with fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, which is part of the Fidelity family of funds.
Amendment to Group Fee Rate. The Board also approved an amendment to the management contract for the fund to add an additional breakpoint to the group fee schedule, effective October 1, 2017. The Board noted that the additional breakpoint would result in lower management fee rates as Fidelity's assets under management increase.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage. Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process. Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.In 2014, the Board formed an ad hoc Committee on Transfer Agency Fees to review the variety of transfer agency fee structures throughout the industry and Fidelity's competitive positioning with respect to industry participants. Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to Fidelity's investment research process, and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs; (iv) launching new share classes of existing funds; (v) eliminating purchase minimums and broadening eligibility requirements for certain lower-priced share classes; (vi) reducing management fees and total expenses for certain growth equity funds and index funds; (vii) lowering expense caps for certain existing funds and classes to reduce expenses borne by shareholders; (viii) eliminating short-term redemption fees for certain funds; (ix) introducing a new pricing structure for certain funds of funds that is expected to reduce overall expenses paid by shareholders; (x) rationalizing product lines and gaining increased efficiencies through proposals for fund mergers and share class consolidations; (xi) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; and (xii) implementing enhancements to further strengthen Fidelity's product line to increase investors' probability of success in achieving their investment goals, including retirement income goals. Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history.The Board took into account discussions with representatives of the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for the fund for different time periods, measured against a securities market index ("benchmark index") and a peer group of funds with similar objectives ("peer group"), if any. In its evaluation of fund investment performance, the Board gave particular attention to information indicating changes in performance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for any overperformance or underperformance.In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing fund share classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; issuer-specific information; and fund cash flows and other factors.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for the fund and an appropriate benchmark index and peer group for the most recent one-, three-, and five-year periods, as shown below. Returns are shown compared to the 25th percentile (top of box, 75% beaten) and 75th percentile (bottom of box, 25% beaten) of the peer universe.Fidelity Advisor High Income Advantage Fund
Fidelity Advisor High Income Advantage Fund
HY-ANN-1217
1.538463.120
Fidelity Advisor® High Income Fund Class A, Class M (formerly Class T), Class C and Class I Annual Report October 31, 2017 |
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Contents
Board Approval of Investment Advisory Contracts and Management Fees |
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. © 2017 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 SECs web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SECs Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a funds total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended October 31, 2017 | Past 1 year | Past 5 years | Past 10 years |
Class A (incl. 4.00% sales charge) | 3.70% | 4.19% | 5.49% |
Class M (incl. 4.00% sales charge) | 3.68% | 4.14% | 5.46% |
Class C (incl. contingent deferred sales charge) | 6.35% | 4.25% | 5.14% |
Class I | 8.39% | 5.24% | 6.15% |
Class C shares' contingent deferred sales charges included in the past one year, past five years and past ten years total return figures are 1%, 0% and 0%, respectively.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® High Income Fund - Class A on October 31, 2007, and the current 4.00% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the The BofA Merrill Lynch℠ US High Yield Constrained Index performed over the same period.
Period Ending Values | ||
| $17,069 | Fidelity Advisor® High Income Fund - Class A |
| $21,144 | The BofA Merrill Lynch℠ US High Yield Constrained Index |
Management's Discussion of Fund Performance
Market Recap: U.S. corporate high-yield bonds gained 9.14% for the year ending October 31, 2017, as measured by The BofA Merrill Lynch℠ US High Yield Constrained Index. The asset class was generally supported by a resurgence in investor risk appetite, although the period began with one of very few interruptions to a steady uptrend. In November 2016, the energy-heavy high-yield market had its first negative month since January 2016 amid rising interest rates and a brief, sharp decline in oil prices. High-yield bonds bounced back strongly in December and maintained momentum into late July, rising along with other risk assets and supported by the view that the new administrations agenda would be stimulative for the U.S. economy. Although heightened geopolitical risk and some industry-specific developments hampered high yield for a brief stretch in early August, the strongly favorable environment for risk assets in the first half of the period prevailed overall. Accordingly, lower-quality bonds within the index fared best for the full year, roughly doubling the return of higher-quality tiers. By industry, gains were broad-based, with metals/mining, chemicals, energy and steel boosted by firming commodities prices and the potential for increased infrastructure spending in the U.S. Notable laggards included food & drug retail and super retail. Comments from Portfolio Manager Matthew Conti: For the year, the fund's share classes (excluding sales charges, if applicable) posted gains in the range of roughly 7% to 8%, trailing its benchmark, The BofA Merrill Lynch℠ US High Yield Constrained Index. From a credit-quality perspective, our underweighting in bonds rated CCC detracted from relative results as bonds in this category notched some of the strongest returns within the asset class. At the industry level, choices within the "super retail" category hurt. The entire retail industry has struggled amid increased online competition. Our overweighted stake in J.C. Penney was no exception. Despite a ratings upgrade and a market-share gain in the appliance category, J.C. Penney's comparable-store sales remained roughly flat. Conversely, security selection among bonds rated B boosted relative performance the most. The fund also benefited from security selection in the telecommunications and gaming groups. In the former, our decision to avoid Frontier Communications proved our largest relative contributor, as this company faced difficult market conditions as more customers eschewed land-line telephones. On that same note, our overweighted stake in mobile carrier Sprint Nextel gained 20%. Lastly, a cash position of about 2%, on average, weighed on relative performance in an uptrending market.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Top Five Holdings as of October 31, 2017
(by issuer, excluding cash equivalents) | % of fund's net assets | % of fund's net assets 6 months ago |
CCO Holdings LLC/CCO Holdings Capital Corp. | 2.7 | 2.0 |
Icahn Enterprises LP/Icahn Enterprises Finance Corp. | 1.8 | 1.8 |
APX Group, Inc. | 1.5 | 2.0 |
Valeant Pharmaceuticals International, Inc. | 1.5 | 1.2 |
TransDigm, Inc. | 1.5 | 1.1 |
9.0 |
Top Five Market Sectors as of October 31, 2017
% of fund's net assets | % of fund's net assets 6 months ago | |
Energy | 15.6 | 13.4 |
Telecommunications | 8.3 | 11.4 |
Technology | 7.3 | 7.7 |
Cable/Satellite TV | 6.2 | 5.6 |
Healthcare | 6.0 | 6.4 |
Quality Diversification (% of fund's net assets)
As of October 31, 2017 | ||
BBB | 1.6% | |
BB | 41.0% | |
B | 42.4% | |
CCC,CC,C | 8.5% | |
Not Rated | 2.0% | |
Equities | 0.3% | |
Short-Term Investments and Net Other Assets | 4.2% |
As of April 30, 2017 | ||
BBB | 1.3% | |
BB | 42.1% | |
B | 42.8% | |
CCC,CC,C | 9.6% | |
Not Rated | 0.7% | |
Equities | 0.4% | |
Short-Term Investments and Net Other Assets | 3.1% |
We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes.
Asset Allocation (% of fund's net assets)
As of October 31, 2017* | ||
Nonconvertible Bonds | 81.3% | |
Convertible Bonds, Preferred Stocks | 0.2% | |
Common Stocks | 0.1% | |
Bank Loan Obligations | 10.3% | |
Other Investments | 3.9% | |
Short-Term Investments and Net Other Assets (Liabilities) | 4.2% |
* Foreign investments - 23.4%
As of April 30, 2017* | ||
Nonconvertible Bonds | 81.7% | |
Convertible Bonds, Preferred Stocks | 0.2% | |
Common Stocks | 0.2% | |
Bank Loan Obligations | 10.3% | |
Other Investments | 4.5% | |
Short-Term Investments and Net Other Assets (Liabilities) | 3.1% |
* Foreign investments - 28.9%
Investments October 31, 2017
Showing Percentage of Net Assets
Nonconvertible Bonds - 81.3% | |||
Principal Amount | Value | ||
Aerospace - 1.3% | |||
DAE Funding LLC: | |||
4% 8/1/20 (a) | $465,000 | $471,975 | |
4.5% 8/1/22 (a) | 2,100,000 | 2,128,875 | |
5% 8/1/24 (a) | 1,895,000 | 1,935,269 | |
TransDigm, Inc.: | |||
6% 7/15/22 | 1,140,000 | 1,182,750 | |
6.375% 6/15/26 | 800,000 | 814,000 | |
6.5% 5/15/25 | 3,390,000 | 3,495,938 | |
TOTAL AEROSPACE | 10,028,807 | ||
Air Transportation - 2.4% | |||
Air Canada 7.75% 4/15/21 (a) | 615,000 | 702,638 | |
Air Canada Trust Series 2015-1 equipment trust certificate Class C, 5% 3/15/20 (a) | 1,635,000 | 1,671,788 | |
Allegiant Travel Co. 5.5% 7/15/19 | 1,610,000 | 1,662,325 | |
American Airlines Group, Inc.: | |||
4.625% 3/1/20 (a) | 840,000 | 867,300 | |
5.5% 10/1/19 (a) | 2,775,000 | 2,886,000 | |
American Airlines, Inc. pass-thru trust certificates 5.625% 7/15/22 (a) | 246,984 | 259,333 | |
Continental Airlines, Inc.: | |||
pass-thru trust certificates 9.798% 4/1/21 | 590,558 | 648,137 | |
6.25% 4/11/20 | 1,237,401 | 1,310,099 | |
Delta Air Lines, Inc. pass-thru trust certificates 8.021% 2/10/24 | 698,166 | 795,909 | |
U.S. Airways Group, Inc. 6.125% 6/1/18 | 1,180,000 | 1,203,600 | |
U.S. Airways pass-thru certificates: | |||
Series 2012-2C, 5.45% 6/3/18 | 2,215,000 | 2,250,883 | |
Series 2013-1 Class B, 5.375% 11/15/21 | 377,814 | 400,955 | |
United Air Lines, Inc. pass-thru trust certificates Class B, 7.336% 7/2/19 | 679,744 | 720,528 | |
United Continental Holdings, Inc.: | |||
4.25% 10/1/22 | 2,995,000 | 3,009,975 | |
6% 12/1/20 | 615,000 | 667,275 | |
TOTAL AIR TRANSPORTATION | 19,056,745 | ||
Automotive & Auto Parts - 0.4% | |||
American Tire Distributors, Inc. 10.25% 3/1/22 (a) | 680,000 | 709,750 | |
Delphi Jersey Holdings PLC 5% 10/1/25 (a) | 865,000 | 871,488 | |
ZF North America Capital, Inc. 4.75% 4/29/25 (a) | 1,260,000 | 1,323,000 | |
TOTAL AUTOMOTIVE & AUTO PARTS | 2,904,238 | ||
Banks & Thrifts - 0.2% | |||
Ally Financial, Inc. 4.25% 4/15/21 | 1,440,000 | 1,497,600 | |
Broadcasting - 1.0% | |||
AMC Networks, Inc.: | |||
4.75% 12/15/22 | 650,000 | 667,063 | |
4.75% 8/1/25 | 1,490,000 | 1,488,138 | |
5% 4/1/24 | 1,150,000 | 1,171,563 | |
Gray Television, Inc. 5.875% 7/15/26 (a) | 665,000 | 681,625 | |
Sirius XM Radio, Inc.: | |||
3.875% 8/1/22 (a) | 2,410,000 | 2,455,188 | |
5% 8/1/27 (a) | 1,570,000 | 1,583,738 | |
TOTAL BROADCASTING | 8,047,315 | ||
Building Materials - 1.1% | |||
Building Materials Corp. of America 5% 2/15/27 (a) | 1,625,000 | 1,693,575 | |
CEMEX Finance LLC 6% 4/1/24 (a) | 1,825,000 | 1,929,938 | |
CEMEX S.A.B. de CV: | |||
5.7% 1/11/25 (a) | 770,000 | 810,425 | |
7.75% 4/16/26 (a) | 1,330,000 | 1,506,358 | |
Eagle Materials, Inc. 4.5% 8/1/26 | 1,125,000 | 1,172,813 | |
HD Supply, Inc. 5.75% 4/15/24 (a) | 990,000 | 1,067,963 | |
Summit Materials LLC/Summit Materials Finance Corp. 5.125% 6/1/25 (a) | 350,000 | 354,375 | |
TOTAL BUILDING MATERIALS | 8,535,447 | ||
Cable/Satellite TV - 5.2% | |||
Altice SA 7.75% 5/15/22 (a) | 6,492,000 | 6,873,405 | |
Altice U.S. Finance SA 5.5% 5/15/26 (a) | 1,945,000 | 2,022,800 | |
CCO Holdings LLC/CCO Holdings Capital Corp.: | |||
4% 3/1/23 (a) | 2,495,000 | 2,530,878 | |
5% 2/1/28 (a) | 4,545,000 | 4,510,913 | |
5.125% 2/15/23 | 555,000 | 573,038 | |
5.125% 5/1/23 (a) | 1,880,000 | 1,959,900 | |
5.125% 5/1/27 (a) | 3,660,000 | 3,696,600 | |
5.5% 5/1/26 (a) | 3,445,000 | 3,531,125 | |
5.75% 2/15/26 (a) | 1,450,000 | 1,515,975 | |
5.875% 4/1/24 (a) | 1,945,000 | 2,071,425 | |
5.875% 5/1/27 (a) | 820,000 | 858,704 | |
CSC Holdings, Inc. 5.5% 4/15/27 (a) | 1,575,000 | 1,622,250 | |
Unitymedia Hessen GmbH & Co. KG/Unitymedia NRW GmbH 5% 1/15/25 (a) | 1,140,000 | 1,188,450 | |
Virgin Media Secured Finance PLC: | |||
5.5% 1/15/25 (a) | 595,000 | 624,750 | |
5.5% 8/15/26 (a) | 1,610,000 | 1,684,463 | |
Ziggo Bond Finance BV: | |||
5.875% 1/15/25 (a) | 1,210,000 | 1,244,788 | |
6% 1/15/27 (a) | 2,185,000 | 2,223,238 | |
Ziggo Secured Finance BV 5.5% 1/15/27 (a) | 1,770,000 | 1,805,400 | |
TOTAL CABLE/SATELLITE TV | 40,538,102 | ||
Capital Goods - 0.5% | |||
J.B. Poindexter & Co., Inc. 9% 4/1/22 (a) | 3,615,000 | 3,782,194 | |
Chemicals - 2.6% | |||
CF Industries Holdings, Inc.: | |||
3.4% 12/1/21 (a) | 750,000 | 761,580 | |
3.45% 6/1/23 | 745,000 | 735,688 | |
4.5% 12/1/26 (a) | 540,000 | 568,466 | |
5.15% 3/15/34 | 115,000 | 114,713 | |
Evolution Escrow Issuer LLC 7.5% 3/15/22 (a) | 2,075,000 | 2,176,156 | |
Kraton Polymers LLC/Kraton Polymers Capital Corp. 7% 4/15/25 (a) | 2,045,000 | 2,208,600 | |
NOVA Chemicals Corp.: | |||
4.875% 6/1/24 (a) | 1,520,000 | 1,548,500 | |
5.25% 6/1/27 (a) | 1,385,000 | 1,412,700 | |
Nufarm Australia Ltd. 6.375% 10/15/19 (a) | 2,360,000 | 2,401,300 | |
Olin Corp. 5.125% 9/15/27 | 2,240,000 | 2,354,800 | |
TPC Group, Inc. 8.75% 12/15/20 (a) | 1,285,000 | 1,256,088 | |
Trinseo Materials Operating SCA/Trinseo Materials Finance, Inc. 5.375% 9/1/25 (a) | 1,830,000 | 1,926,075 | |
Tronox Finance PLC 5.75% 10/1/25 (a) | 360,000 | 375,750 | |
Valvoline, Inc. 4.375% 8/15/25 (a) | 1,515,000 | 1,530,150 | |
Versum Materials, Inc. 5.5% 9/30/24 (a) | 1,060,000 | 1,128,900 | |
TOTAL CHEMICALS | 20,499,466 | ||
Consumer Products - 0.1% | |||
Edgewell Personal Care Co. 5.5% 6/15/25 (a) | 480,000 | 504,000 | |
Containers - 2.5% | |||
Ardagh Packaging Finance PLC/Ardagh MP Holdings U.S.A., Inc.: | |||
4.25% 9/15/22 (a) | 1,200,000 | 1,236,000 | |
4.625% 5/15/23 (a) | 2,450,000 | 2,517,375 | |
6% 2/15/25 (a) | 3,715,000 | 3,942,544 | |
7.25% 5/15/24 (a) | 865,000 | 950,419 | |
Crown Americas LLC/Crown Americas Capital Corp. V 4.25% 9/30/26 | 2,070,000 | 2,070,000 | |
Owens-Brockway Glass Container, Inc. 5.375% 1/15/25 (a) | 925,000 | 987,438 | |
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer (Luxembourg) SA: | |||
3 month U.S. LIBOR + 3.500% 4.8592% 7/15/21 (a)(b)(c) | 990,000 | 1,009,800 | |
5.125% 7/15/23 (a) | 2,030,000 | 2,113,433 | |
5.75% 10/15/20 | 3,455,000 | 3,515,497 | |
Silgan Holdings, Inc. 4.75% 3/15/25 (a) | 1,085,000 | 1,114,838 | |
TOTAL CONTAINERS | 19,457,344 | ||
Diversified Financial Services - 4.1% | |||
AerCap Ireland Capital Ltd./AerCap Global Aviation Trust 4.625% 7/1/22 | 1,410,000 | 1,513,175 | |
Chobani LLC/Finance Corp., Inc. 7.5% 4/15/25 (a) | 1,135,000 | 1,232,894 | |
FLY Leasing Ltd.: | |||
5.25% 10/15/24 | 620,000 | 622,716 | |
6.375% 10/15/21 | 785,000 | 819,344 | |
6.75% 12/15/20 | 1,790,000 | 1,859,452 | |
Icahn Enterprises LP/Icahn Enterprises Finance Corp.: | |||
4.875% 3/15/19 | 1,090,000 | 1,095,450 | |
5.875% 2/1/22 | 4,260,000 | 4,401,134 | |
6% 8/1/20 | 4,120,000 | 4,248,750 | |
6.25% 2/1/22 | 3,645,000 | 3,809,025 | |
6.75% 2/1/24 | 760,000 | 804,650 | |
ILFC E-Capital Trust I 3 month U.S. LIBOR + 1.550% 4.36% 12/21/65 (a)(b)(c) | 2,555,000 | 2,465,575 | |
ILFC E-Capital Trust II 3 month U.S. LIBOR + 1.800% 4.61% 12/21/65 (a)(b)(c) | 4,420,000 | 4,287,400 | |
MSCI, Inc.: | |||
4.75% 8/1/26 (a) | 1,585,000 | 1,650,381 | |
5.25% 11/15/24 (a) | 1,855,000 | 1,961,663 | |
Radiate Holdco LLC/Radiate Financial Service Ltd. 6.625% 2/15/25 (a) | 790,000 | 776,175 | |
SLM Corp. 5.5% 1/25/23 | 400,000 | 405,000 | |
TOTAL DIVERSIFIED FINANCIAL SERVICES | 31,952,784 | ||
Diversified Media - 0.5% | |||
Block Communications, Inc. 6.875% 2/15/25 (a) | 660,000 | 712,800 | |
E.W. Scripps Co. 5.125% 5/15/25 (a) | 260,000 | 267,150 | |
MDC Partners, Inc. 6.5% 5/1/24 (a) | 3,040,000 | 3,100,800 | |
TOTAL DIVERSIFIED MEDIA | 4,080,750 | ||
Energy - 15.1% | |||
Antero Resources Corp.: | |||
5% 3/1/25 | 2,920,000 | 2,963,800 | |
5.125% 12/1/22 | 2,120,000 | 2,178,300 | |
5.625% 6/1/23 (Reg. S) | 690,000 | 722,775 | |
Antero Resources Finance Corp. 5.375% 11/1/21 | 510,000 | 523,388 | |
Calfrac Holdings LP 7.5% 12/1/20 (a) | 1,340,000 | 1,313,200 | |
California Resources Corp. 8% 12/15/22 (a) | 2,025,000 | 1,336,500 | |
Cheniere Corpus Christi Holdings LLC: | |||
5.125% 6/30/27 (a) | 855,000 | 881,719 | |
5.875% 3/31/25 | 2,070,000 | 2,240,775 | |
7% 6/30/24 | 1,035,000 | 1,181,194 | |
Chesapeake Energy Corp.: | |||
4.875% 4/15/22 | 1,455,000 | 1,345,875 | |
5.75% 3/15/23 | 2,205,000 | 2,012,063 | |
6.125% 2/15/21 | 811,000 | 819,110 | |
8% 12/15/22 (a) | 2,313,000 | 2,488,649 | |
8% 1/15/25 (a) | 425,000 | 425,000 | |
8% 6/15/27 (a) | 1,325,000 | 1,277,797 | |
Consolidated Energy Finance SA: | |||
3 month U.S. LIBOR + 3.750% 5.07% 6/15/22 (a)(b)(c) | 4,680,000 | 4,669,320 | |
6.875% 6/15/25 (a) | 1,465,000 | 1,549,238 | |
Continental Resources, Inc.: | |||
3.8% 6/1/24 | 1,610,000 | 1,563,713 | |
4.5% 4/15/23 | 3,250,000 | 3,290,625 | |
4.9% 6/1/44 | 510,000 | 474,938 | |
Covey Park Energy LLC 7.5% 5/15/25 (a) | 1,555,000 | 1,613,313 | |
Crestwood Midstream Partners LP/Crestwood Midstream Finance Corp. 5.75% 4/1/25 | 1,355,000 | 1,390,569 | |
CVR Refining LLC/Coffeyville Finance, Inc. 6.5% 11/1/22 | 3,840,000 | 3,945,600 | |
Denbury Resources, Inc. 9% 5/15/21 (a) | 1,590,000 | 1,554,225 | |
Diamond Offshore Drilling, Inc. 7.875% 8/15/25 | 1,145,000 | 1,225,150 | |
Endeavor Energy Resources LP/EER Finance, Inc. 7% 8/15/21 (a) | 3,960,000 | 4,103,550 | |
Energy Transfer Equity LP 4.25% 3/15/23 | 1,515,000 | 1,541,528 | |
Ensco PLC: | |||
4.5% 10/1/24 | 1,755,000 | 1,439,100 | |
5.2% 3/15/25 | 3,945,000 | 3,323,663 | |
8% 1/31/24 | 1,541,000 | 1,525,590 | |
EP Energy LLC/Everest Acquisition Finance, Inc. 8% 11/29/24 (a) | 2,485,000 | 2,534,700 | |
Exterran Energy Solutions LP 8.125% 5/1/25 (a) | 780,000 | 820,950 | |
Exterran Partners LP/EXLP Finance Corp.: | |||
6% 4/1/21 | 2,755,000 | 2,741,225 | |
6% 10/1/22 | 965,000 | 958,969 | |
Extraction Oil & Gas, Inc. 7.375% 5/15/24 (a) | 1,090,000 | 1,160,850 | |
Forum Energy Technologies, Inc. 6.25% 10/1/21 | 1,525,000 | 1,521,188 | |
FTS International, Inc.: | |||
3 month U.S. LIBOR + 7.500% 8.82% 6/15/20 (a)(b)(c) | 620,000 | 633,175 | |
6.25% 5/1/22 | 680,000 | 659,600 | |
Hilcorp Energy I LP/Hilcorp Finance Co.: | |||
5% 12/1/24 (a) | 1,930,000 | 1,920,350 | |
5.75% 10/1/25 (a) | 1,470,000 | 1,504,913 | |
Jonah Energy LLC 7.25% 10/15/25 (a) | 1,075,000 | 1,075,000 | |
Nabors Industries, Inc. 5.5% 1/15/23 | 3,897,000 | 3,716,764 | |
Newfield Exploration Co. 5.375% 1/1/26 | 505,000 | 536,563 | |
NextEra Energy Partners LP: | |||
4.25% 9/15/24 (a) | 525,000 | 530,250 | |
4.5% 9/15/27 (a) | 365,000 | 367,281 | |
NGL Energy Partners LP/NGL Energy Finance Corp. 6.125% 3/1/25 | 350,000 | 331,625 | |
NGPL PipeCo LLC: | |||
4.375% 8/15/22 (a) | 200,000 | 205,750 | |
4.875% 8/15/27 (a) | 200,000 | 207,000 | |
Noble Holding International Ltd.: | |||
4.625% 3/1/21 | 1,362,000 | 1,259,850 | |
5.25% 3/15/42 | 765,000 | 485,775 | |
7.7% 4/1/25 (b) | 1,125,000 | 978,750 | |
7.75% 1/15/24 | 3,090,000 | 2,765,550 | |
Parsley Energy LLC/Parsley: | |||
5.25% 8/15/25 (a) | 265,000 | 267,650 | |
5.375% 1/15/25 (a) | 460,000 | 466,900 | |
PBF Logistics LP/PBF Logistics Finance, Inc.: | |||
6.875% 5/15/23 | 1,650,000 | 1,707,750 | |
6.875% 5/15/23 (a) | 1,200,000 | 1,242,000 | |
Precision Drilling Corp.: | |||
5.25% 11/15/24 | 510,000 | 473,025 | |
6.5% 12/15/21 | 490,000 | 494,900 | |
7.75% 12/15/23 | 750,000 | 768,750 | |
Range Resources Corp.: | |||
4.875% 5/15/25 | 1,190,000 | 1,148,350 | |
5% 3/15/23 | 3,845,000 | 3,806,473 | |
Sabine Pass Liquefaction LLC 5.75% 5/15/24 | 1,225,000 | 1,372,105 | |
SemGroup Corp. 7.25% 3/15/26 (a) | 735,000 | 747,863 | |
SESI LLC 7.75% 9/15/24 (a) | 480,000 | 496,800 | |
Southwestern Energy Co. 4.1% 3/15/22 | 240,000 | 235,800 | |
Summit Midstream Holdings LLC 5.75% 4/15/25 | 1,285,000 | 1,310,700 | |
Sunoco LP/Sunoco Finance Corp.: | |||
5.5% 8/1/20 | 715,000 | 734,663 | |
6.375% 4/1/23 | 1,375,000 | 1,460,938 | |
Targa Resources Partners LP/Targa Resources Partners Finance Corp.: | |||
4.125% 11/15/19 | 1,130,000 | 1,141,300 | |
5% 1/15/28 (a) | 2,020,000 | 2,025,050 | |
5.125% 2/1/25 | 470,000 | 484,100 | |
5.25% 5/1/23 | 265,000 | 272,619 | |
5.375% 2/1/27 | 470,000 | 488,213 | |
6.75% 3/15/24 | 2,005,000 | 2,160,388 | |
TerraForm Power Operating LLC 6.375% 2/1/23 (a)(b) | 1,895,000 | 1,985,013 | |
The Williams Companies, Inc.: | |||
3.7% 1/15/23 | 1,440,000 | 1,452,600 | |
4.55% 6/24/24 | 1,920,000 | 2,006,400 | |
Whiting Petroleum Corp.: | |||
5% 3/15/19 | 1,010,000 | 1,018,838 | |
5.75% 3/15/21 | 1,455,000 | 1,465,913 | |
6.25% 4/1/23 | 340,000 | 339,150 | |
WPX Energy, Inc.: | |||
5.25% 9/15/24 | 2,780,000 | 2,790,425 | |
6% 1/15/22 | 970,000 | 1,010,013 | |
7.5% 8/1/20 | 677,000 | 734,545 | |
TOTAL ENERGY | 117,945,579 | ||
Entertainment/Film - 0.4% | |||
AMC Entertainment Holdings, Inc. 5.875% 11/15/26 | 610,000 | 595,513 | |
CBS Outdoor Americas Capital LLC/CBS Outdoor Americas Capital Corp.: | |||
5.625% 2/15/24 | 490,000 | 515,725 | |
5.875% 3/15/25 | 220,000 | 233,063 | |
New Cotai LLC/New Cotai Capital Corp. 10.625% 5/1/19 pay-in-kind (a)(b) | 1,697,162 | 1,697,162 | |
TOTAL ENTERTAINMENT/FILM | 3,041,463 | ||
Environmental - 0.4% | |||
CD&R Waterworks Merger Sub LLC 6.125% 8/15/25 (a) | 315,000 | 318,938 | |
LBC Tank Terminals Holding Netherlands BV 6.875% 5/15/23 (a) | 2,683,000 | 2,807,089 | |
TOTAL ENVIRONMENTAL | 3,126,027 | ||
Food & Drug Retail - 0.7% | |||
Albertsons Companies LLC/Safeway, Inc./New Albertson's, Inc./Albertson's LLC: | |||
5.75% 3/15/25 | 1,700,000 | 1,496,000 | |
6.625% 6/15/24 | 865,000 | 813,100 | |
Albertsons, Inc.: | |||
6.625% 6/1/28 | 275,000 | 211,063 | |
7.45% 8/1/29 | 250,000 | 206,875 | |
7.75% 6/15/26 | 295,000 | 258,678 | |
8% 5/1/31 | 1,570,000 | 1,363,938 | |
8.7% 5/1/30 | 220,000 | 195,250 | |
FAGE International SA/FAGE U.S.A. Dairy Industry, Inc. 5.625% 8/15/26 (a) | 355,000 | 364,652 | |
Tops Holding LLC/Tops Markets II Corp. 8% 6/15/22 (a) | 1,120,000 | 672,000 | |
TOTAL FOOD & DRUG RETAIL | 5,581,556 | ||
Food/Beverage/Tobacco - 1.8% | |||
C&S Group Enterprises LLC 5.375% 7/15/22 (a) | 1,310,000 | 1,270,700 | |
Cott Holdings, Inc. 5.5% 4/1/25 (a) | 775,000 | 799,219 | |
ESAL GmbH 6.25% 2/5/23 (a) | 1,755,000 | 1,689,188 | |
JBS Investments GmbH 7.75% 10/28/20 (a) | 445,000 | 454,123 | |
Lamb Weston Holdings, Inc.: | |||
4.625% 11/1/24 (a) | 1,525,000 | 1,593,625 | |
4.875% 11/1/26 (a) | 610,000 | 641,263 | |
Minerva Luxembourg SA 6.5% 9/20/26 (a) | 1,705,000 | 1,768,085 | |
Post Holdings, Inc.: | |||
5% 8/15/26 (a) | 1,280,000 | 1,286,400 | |
5.75% 3/1/27 (a) | 1,070,000 | 1,111,463 | |
Vector Group Ltd. 6.125% 2/1/25 (a) | 2,960,000 | 3,071,000 | |
TOTAL FOOD/BEVERAGE/TOBACCO | 13,685,066 | ||
Gaming - 2.3% | |||
CRC Escrow Issuer LLC/CRC Finance LLC 5.25% 10/15/25 (a) | 2,295,000 | 2,310,032 | |
Eldorado Resorts, Inc. 6% 4/1/25 | 605,000 | 638,275 | |
MCE Finance Ltd. 4.875% 6/6/25 (a) | 315,000 | 317,870 | |
MGM Growth Properties Operating Partnership LP: | |||
4.5% 9/1/26 | 3,135,000 | 3,146,756 | |
4.5% 1/15/28 (a) | 580,000 | 578,550 | |
Scientific Games Corp.: | |||
5% 10/15/25 (a) | 230,000 | 233,450 | |
6.625% 5/15/21 | 4,020,000 | 4,155,675 | |
7% 1/1/22 (a) | 425,000 | 449,438 | |
Station Casinos LLC 5% 10/1/25 (a) | 1,675,000 | 1,677,094 | |
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp. 5.25% 5/15/27 (a) | 1,905,000 | 1,945,481 | |
Wynn Macau Ltd.: | |||
4.875% 10/1/24 (a) | 575,000 | 584,373 | |
5.5% 10/1/27 (a) | 1,735,000 | 1,757,937 | |
TOTAL GAMING | 17,794,931 | ||
Healthcare - 6.0% | |||
AMAG Pharmaceuticals, Inc. 7.875% 9/1/23 (a) | 1,175,000 | 1,195,563 | |
Catalent Pharma Solutions 4.875% 1/15/26 (a) | 1,010,000 | 1,025,150 | |
Community Health Systems, Inc.: | |||
5.125% 8/1/21 | 1,680,000 | 1,633,800 | |
6.25% 3/31/23 | 1,840,000 | 1,771,000 | |
6.875% 2/1/22 | 6,205,000 | 4,490,869 | |
CTR Partnership LP/CareTrust Capital Corp. 5.25% 6/1/25 | 1,750,000 | 1,798,125 | |
HCA Holdings, Inc.: | |||
4.5% 2/15/27 | 2,615,000 | 2,637,881 | |
5% 3/15/24 | 1,915,000 | 2,017,931 | |
5.25% 6/15/26 | 2,175,000 | 2,313,656 | |
HealthSouth Corp.: | |||
5.125% 3/15/23 | 1,535,000 | 1,565,700 | |
5.75% 9/15/25 | 1,265,000 | 1,304,531 | |
Kindred Healthcare, Inc.: | |||
8% 1/15/20 | 1,090,000 | 1,100,900 | |
8.75% 1/15/23 | 610,000 | 594,750 | |
MPT Operating Partnership LP/MPT Finance Corp.: | |||
5% 10/15/27 | 875,000 | 899,063 | |
5.25% 8/1/26 | 1,840,000 | 1,915,771 | |
6.375% 3/1/24 | 895,000 | 967,719 | |
Ortho-Clinical Diagnostics, Inc. 6.625% 5/15/22 (a) | 560,000 | 560,700 | |
Sabra Health Care LP/Sabra Capital Corp.: | |||
5.375% 6/1/23 | 505,000 | 521,413 | |
5.5% 2/1/21 | 815,000 | 840,469 | |
Teleflex, Inc. 4.875% 6/1/26 | 2,024,000 | 2,125,200 | |
Tenet Healthcare Corp.: | |||
4.375% 10/1/21 | 1,465,000 | 1,459,873 | |
4.625% 7/15/24 (a) | 1,015,000 | 998,506 | |
THC Escrow Corp. III 5.125% 5/1/25 (a) | 685,000 | 667,019 | |
Valeant Pharmaceuticals International, Inc.: | |||
5.375% 3/15/20 (a) | 2,960,000 | 2,911,900 | |
5.5% 11/1/25 (a) | 735,000 | 751,538 | |
5.625% 12/1/21 (a) | 820,000 | 747,225 | |
5.875% 5/15/23 (a) | 2,380,000 | 2,011,100 | |
6.125% 4/15/25 (a) | 4,085,000 | 3,431,400 | |
6.5% 3/15/22 (a) | 1,310,000 | 1,388,600 | |
VPI Escrow Corp. 6.375% 10/15/20 (a) | 453,000 | 450,169 | |
Wellcare Health Plans, Inc. 5.25% 4/1/25 | 520,000 | 547,300 | |
TOTAL HEALTHCARE | 46,644,821 | ||
Homebuilders/Real Estate - 3.2% | |||
Beazer Homes U.S.A., Inc. 5.875% 10/15/27 (a) | 1,470,000 | 1,468,163 | |
CalAtlantic Group, Inc.: | |||
5% 6/15/27 | 1,520,000 | 1,597,900 | |
5.25% 6/1/26 | 1,685,000 | 1,794,525 | |
5.875% 11/15/24 | 640,000 | 712,400 | |
Howard Hughes Corp. 5.375% 3/15/25 (a) | 1,410,000 | 1,448,775 | |
Lennar Corp. 4.125% 1/15/22 | 1,125,000 | 1,164,375 | |
M.D.C. Holdings, Inc. 6% 1/15/43 | 505,000 | 483,260 | |
M/I Homes, Inc.: | |||
5.625% 8/1/25 | 415,000 | 421,744 | |
6.75% 1/15/21 | 1,850,000 | 1,924,000 | |
Mattamy Group Corp.: | |||
6.5% 10/1/25 (a) | 690,000 | 719,325 | |
6.875% 12/15/23 (a) | 1,760,000 | 1,848,000 | |
PulteGroup, Inc. 5% 1/15/27 | 1,035,000 | 1,086,750 | |
Starwood Property Trust, Inc. 5% 12/15/21 | 1,565,000 | 1,639,338 | |
Taylor Morrison Communities, Inc./Monarch Communities, Inc.: | |||
5.25% 4/15/21 (a) | 1,075,000 | 1,097,833 | |
5.875% 4/15/23 (a) | 760,000 | 813,671 | |
Toll Brothers Finance Corp. 4.875% 3/15/27 | 2,538,000 | 2,658,555 | |
TRI Pointe Homes, Inc. 5.25% 6/1/27 | 1,120,000 | 1,145,200 | |
VEREIT Operating Partnership LP: | |||
4.125% 6/1/21 | 690,000 | 720,852 | |
4.875% 6/1/26 | 690,000 | 736,976 | |
William Lyon Homes, Inc. 7% 8/15/22 | 1,395,000 | 1,447,313 | |
TOTAL HOMEBUILDERS/REAL ESTATE | 24,928,955 | ||
Hotels - 0.6% | |||
Hilton Escrow Issuer LLC 4.25% 9/1/24 | 2,845,000 | 2,905,456 | |
Hilton Worldwide Finance LLC/Hilton Worldwide Finance Corp.: | |||
4.625% 4/1/25 | 990,000 | 1,020,938 | |
4.875% 4/1/27 | 585,000 | 614,250 | |
TOTAL HOTELS | 4,540,644 | ||
Insurance - 0.3% | |||
USIS Merger Sub, Inc. 6.875% 5/1/25 (a) | 2,195,000 | 2,277,313 | |
Leisure - 0.7% | |||
Carlson Travel, Inc. 9.5% 12/15/24 (a) | 1,320,000 | 1,237,500 | |
Hilton Grand Vacations Borrower LLC/Hilton Grand Vacations Borrower, Inc. 6.125% 12/1/24 (a) | 540,000 | 592,650 | |
Silversea Cruises 7.25% 2/1/25 (a) | 560,000 | 600,600 | |
Studio City Co. Ltd.: | |||
5.875% 11/30/19 (a) | 590,000 | 618,763 | |
7.25% 11/30/21 (a) | 1,335,000 | 1,428,584 | |
Viking Cruises Ltd. 5.875% 9/15/27 (a) | 760,000 | 765,700 | |
TOTAL LEISURE | 5,243,797 | ||
Metals/Mining - 2.5% | |||
First Quantum Minerals Ltd.: | |||
7% 2/15/21 (a) | 1,485,000 | 1,540,688 | |
7.25% 5/15/22 (a) | 809,000 | 845,405 | |
7.25% 4/1/23 (a) | 2,120,000 | 2,241,900 | |
7.5% 4/1/25 (a) | 1,315,000 | 1,392,256 | |
FMG Resources (August 2006) Pty Ltd.: | |||
4.75% 5/15/22 (a) | 545,000 | 555,900 | |
5.125% 5/15/24 (a) | 1,545,000 | 1,589,419 | |
Freeport-McMoRan, Inc.: | |||
3.55% 3/1/22 | 4,635,000 | 4,588,650 | |
3.875% 3/15/23 | 575,000 | 565,656 | |
4.55% 11/14/24 | 3,145,000 | 3,138,741 | |
SunCoke Energy Partners LP/SunCoke Energy Partners Finance Corp. 7.5% 6/15/25 (a) | 2,795,000 | 2,927,763 | |
TOTAL METALS/MINING | 19,386,378 | ||
Publishing/Printing - 0.7% | |||
Clear Channel International BV 8.75% 12/15/20 (a) | 210,000 | 220,500 | |
MHGE Parent LLC/MHGE Parent Finance, Inc. 8.5% 8/1/19 pay-in-kind (a)(b) | 3,465,000 | 3,460,669 | |
Multi-Color Corp. 4.875% 11/1/25 (a) | 1,825,000 | 1,843,250 | |
TOTAL PUBLISHING/PRINTING | 5,524,419 | ||
Restaurants - 1.2% | |||
1011778 BC Unlimited Liability Co./New Red Finance, Inc.: | |||
4.25% 5/15/24 (a) | 2,025,000 | 2,039,580 | |
5% 10/15/25 (a) | 1,830,000 | 1,864,313 | |
5% 10/15/25 (a) | 1,475,000 | 1,502,656 | |
Golden Nugget, Inc. 6.75% 10/15/24 (a) | 1,820,000 | 1,851,850 | |
KFC Holding Co./Pizza Hut Holding LLC 4.75% 6/1/27 (a) | 630,000 | 646,538 | |
Yum! Brands, Inc. 5.35% 11/1/43 | 1,260,000 | 1,192,275 | |
TOTAL RESTAURANTS | 9,097,212 | ||
Services - 3.2% | |||
APX Group, Inc.: | |||
6.375% 12/1/19 | 2,976,000 | 3,028,080 | |
7.625% 9/1/23 | 1,125,000 | 1,184,063 | |
8.75% 12/1/20 | 7,465,000 | 7,651,625 | |
Aramark Services, Inc. 4.75% 6/1/26 | 3,135,000 | 3,279,147 | |
Ashtead Capital, Inc.: | |||
4.125% 8/15/25 (a) | 590,000 | 594,425 | |
4.375% 8/15/27 (a) | 620,000 | 627,750 | |
Avantor, Inc.: | |||
6% 10/1/24 (a) | 1,140,000 | 1,162,800 | |
9% 10/1/25 (a) | 2,070,000 | 2,090,866 | |
Brand Energy & Infrastructure Services, Inc. 8.5% 7/15/25 (a) | 1,525,000 | 1,612,688 | |
CDK Global, Inc. 4.875% 6/1/27 (a) | 715,000 | 745,388 | |
Laureate Education, Inc. 8.25% 5/1/25 (a) | 1,860,000 | 2,001,825 | |
Prime Security One MS, Inc. 4.875% 7/15/32 (a) | 985,000 | 932,056 | |
TOTAL SERVICES | 24,910,713 | ||
Steel - 1.3% | |||
Big River Steel LLC/BRS Finance Corp. 7.25% 9/1/25 (a) | 625,000 | 670,313 | |
Cliffs Natural Resources, Inc. 5.75% 3/1/25 (a) | 1,860,000 | 1,801,875 | |
Commercial Metals Co. 5.375% 7/15/27 | 2,560,000 | 2,643,200 | |
Steel Dynamics, Inc.: | |||
4.125% 9/15/25 (a) | 1,650,000 | 1,654,125 | |
5.125% 10/1/21 | 3,155,000 | 3,237,819 | |
TOTAL STEEL | 10,007,332 | ||
Super Retail - 1.2% | |||
Argos Merger Sub, Inc. 7.125% 3/15/23 (a) | 820,000 | 625,250 | |
JC Penney Corp., Inc.: | |||
5.65% 6/1/20 | 2,316,000 | 2,032,290 | |
7.4% 4/1/37 | 3,940,000 | 2,403,400 | |
Netflix, Inc.: | |||
4.375% 11/15/26 (a) | 2,245,000 | 2,201,503 | |
4.875% 4/15/28 (a) | 1,825,000 | 1,813,959 | |
TOTAL SUPER RETAIL | 9,076,402 | ||
Technology - 5.3% | |||
Ceridian HCM Holding, Inc. 11% 3/15/21 (a) | 175,000 | 184,844 | |
EMC Corp. 2.65% 6/1/20 | 2,465,000 | 2,435,502 | |
Gartner, Inc. 5.125% 4/1/25 (a) | 525,000 | 555,188 | |
Greeneden U.S. Holdings II LLC 10% 11/30/24 (a) | 1,165,000 | 1,314,994 | |
Inception Merger Sub, Inc./Rackspace Hosting, Inc. 8.625% 11/15/24 (a) | 2,075,000 | 2,185,234 | |
j2 Cloud Services LLC/j2 Global Communications, Inc. 6% 7/15/25 (a) | 545,000 | 573,613 | |
Micron Technology, Inc.: | |||
5.25% 8/1/23 (a) | 540,000 | 565,164 | |
5.25% 1/15/24 (a) | 1,045,000 | 1,098,556 | |
5.5% 2/1/25 | 735,000 | 780,938 | |
5.625% 1/15/26 (a) | 1,140,000 | 1,211,250 | |
Nuance Communications, Inc. 5.375% 8/15/20 (a) | 1,566,000 | 1,587,141 | |
NXP BV/NXP Funding LLC: | |||
3.875% 9/1/22 (a) | 2,515,000 | 2,612,456 | |
4.125% 6/1/21 (a) | 4,930,000 | 5,151,850 | |
4.625% 6/1/23 (a) | 2,270,000 | 2,445,925 | |
Open Text Corp. 5.875% 6/1/26 (a) | 4,285,000 | 4,643,869 | |
Qorvo, Inc. 6.75% 12/1/23 | 2,735,000 | 2,960,638 | |
Sensata Technologies BV 5% 10/1/25 (a) | 3,030,000 | 3,211,800 | |
Sensata Technologies UK Financing Co. PLC 6.25% 2/15/26 (a) | 465,000 | 509,175 | |
Solera LLC/Solera Finance, Inc. 10.5% 3/1/24 (a) | 2,455,000 | 2,798,700 | |
Symantec Corp. 5% 4/15/25 (a) | 1,740,000 | 1,818,300 | |
Tempo Acquisition LLC / Tempo 6.75% 6/1/25 (a) | 735,000 | 744,188 | |
TTM Technologies, Inc. 5.625% 10/1/25 (a) | 265,000 | 270,300 | |
VeriSign, Inc.: | |||
4.75% 7/15/27 | 770,000 | 793,100 | |
5.25% 4/1/25 | 1,035,000 | 1,122,975 | |
TOTAL TECHNOLOGY | 41,575,700 | ||
Telecommunications - 6.7% | |||
Altice Financing SA: | |||
6.5% 1/15/22 (a) | 390,000 | 403,650 | |
6.625% 2/15/23 (a) | 2,410,000 | 2,540,381 | |
7.5% 5/15/26 (a) | 1,160,000 | 1,271,650 | |
Altice Finco SA 7.625% 2/15/25 (a) | 925,000 | 991,045 | |
Equinix, Inc. 5.375% 5/15/27 | 645,000 | 690,956 | |
Gogo Intermediate Holdings LLC/Gogo Finance Co., Inc. 12.5% 7/1/22 (a) | 2,255,000 | 2,556,606 | |
Inmarsat Finance PLC 4.875% 5/15/22 (a) | 845,000 | 862,069 | |
Sable International Finance Ltd. 6.875% 8/1/22 (a) | 1,950,000 | 2,091,375 | |
SBA Communications Corp. 4.875% 9/1/24 | 850,000 | 873,375 | |
SFR Group SA: | |||
6% 5/15/22 (a) | 2,475,000 | 2,580,188 | |
6.25% 5/15/24 (a) | 490,000 | 513,275 | |
Sprint Capital Corp. 6.875% 11/15/28 | 4,610,000 | 4,918,294 | |
Sprint Communications, Inc. 6% 11/15/22 | 4,510,000 | 4,735,500 | |
Sprint Corp.: | |||
7.25% 9/15/21 | 4,115,000 | 4,485,350 | |
7.625% 2/15/25 | 1,525,000 | 1,671,781 | |
7.875% 9/15/23 | 2,345,000 | 2,620,538 | |
T-Mobile U.S.A., Inc.: | |||
4% 4/15/22 | 1,955,000 | 2,022,203 | |
5.125% 4/15/25 | 1,505,000 | 1,576,036 | |
6% 3/1/23 | 1,500,000 | 1,580,625 | |
6.375% 3/1/25 | 1,140,000 | 1,231,200 | |
6.625% 4/1/23 | 30,000 | 31,500 | |
Telecom Italia Capital SA: | |||
6% 9/30/34 | 840,000 | 941,077 | |
6.375% 11/15/33 | 1,115,000 | 1,293,400 | |
Telesat Canada/Telesat LLC 8.875% 11/15/24 (a) | 1,470,000 | 1,646,400 | |
Wind Acquisition Finance SA 7.375% 4/23/21 (a) | 1,780,000 | 1,849,064 | |
Wind Tre SpA 5% 1/20/26 (a) | 2,710,000 | 2,727,582 | |
Zayo Group LLC/Zayo Capital, Inc.: | |||
5.75% 1/15/27 (a) | 2,370,000 | 2,497,388 | |
6.375% 5/15/25 | 1,200,000 | 1,291,632 | |
TOTAL TELECOMMUNICATIONS | 52,494,140 | ||
Transportation Ex Air/Rail - 0.6% | |||
Navios Maritime Acquisition Corp./Navios Acquisition Finance U.S., Inc. 8.125% 11/15/21 (a) | 4,950,000 | 4,356,000 | |
Navios Maritime Holdings, Inc. 7.375% 1/15/22 (a) | 615,000 | 504,300 | |
TOTAL TRANSPORTATION EX AIR/RAIL | 4,860,300 | ||
Utilities - 5.2% | |||
Dolphin Subsidiary II, Inc. 7.25% 10/15/21 | 5,080,000 | 5,608,320 | |
DPL, Inc. 6.75% 10/1/19 | 2,675,000 | 2,815,438 | |
Dynegy, Inc.: | |||
5.875% 6/1/23 | 1,315,000 | 1,357,738 | |
7.625% 11/1/24 | 2,715,000 | 2,966,138 | |
8.125% 1/30/26 (a) | 1,220,000 | 1,354,200 | |
Global Partners LP/GLP Finance Corp.: | |||
6.25% 7/15/22 | 3,400,000 | 3,476,500 | |
7% 6/15/23 | 4,325,000 | 4,389,875 | |
InterGen NV 7% 6/30/23 (a) | 1,430,000 | 1,387,100 | |
NRG Energy, Inc.: | |||
6.25% 5/1/24 | 490,000 | 520,625 | |
6.625% 1/15/27 | 1,795,000 | 1,911,675 | |
NRG Yield Operating LLC 5% 9/15/26 | 1,540,000 | 1,586,200 | |
NSG Holdings II LLC/NSG Holdings, Inc. 7.75% 12/15/25 (a) | 7,981,095 | 8,669,419 | |
The AES Corp.: | |||
4.875% 5/15/23 | 2,590,000 | 2,648,275 | |
5.125% 9/1/27 | 630,000 | 646,695 | |
6% 5/15/26 | 1,500,000 | 1,616,250 | |
TOTAL UTILITIES | 40,954,448 | ||
TOTAL NONCONVERTIBLE BONDS | |||
(Cost $610,894,573) | 633,581,988 | ||
Shares | Value | ||
Common Stocks - 0.1% | |||
Energy - 0.1% | |||
Forbes Energy Services Ltd. | 47,062 | 616,512 | |
Southwestern Energy Co. (d) | 44,095 | 244,727 | |
TOTAL ENERGY | 861,239 | ||
Telecommunications - 0.0% | |||
CUI Acquisition Corp. Class E (d)(e) | 1 | 23,749 | |
TOTAL COMMON STOCKS | |||
(Cost $3,485,627) | 884,988 | ||
Convertible Preferred Stocks - 0.2% | |||
Energy - 0.2% | |||
Southwestern Energy Co. Series B 6.25% | |||
(Cost $1,817,294) | 102,500 | 1,303,677 | |
Principal Amount | Value | ||
Bank Loan Obligations - 10.3% | |||
Aerospace - 0.8% | |||
TransDigm, Inc.: | |||
Tranche D, term loan 3 month U.S. LIBOR + 3.000% 4.3273% 6/4/21 (b)(c) | 948,150 | 953,782 | |
Tranche F, term loan 3 month U.S. LIBOR + 3.000% 4.274% 6/9/23 (b)(c) | 3,455,871 | 3,469,279 | |
Tranche G, term loan 3 month U.S. LIBOR + 3.000% 4.2623% 8/22/24 (b)(c) | 1,481,288 | 1,487,998 | |
TOTAL AEROSPACE | 5,911,059 | ||
Air Transportation - 0.4% | |||
American Airlines, Inc.: | |||
Tranche B, term loan 3 month U.S. LIBOR + 2.000% 3.2378% 10/10/21 (b)(c) | 1,655,859 | 1,658,392 | |
Tranche B, term loan 3 month U.S. LIBOR + 2.500% 3.7389% 12/14/23 (b)(c) | 1,685,000 | 1,688,977 | |
TOTAL AIR TRANSPORTATION | 3,347,369 | ||
Broadcasting - 0.4% | |||
ION Media Networks, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4.25% 12/18/20 (b)(c) | 800,000 | 805,000 | |
Nielsen Finance LLC Tranche B 4LN, term loan 3 month U.S. LIBOR + 2.000% 3.2378% 10/4/23 (b)(c) | 1,987,712 | 1,993,615 | |
TOTAL BROADCASTING | 2,798,615 | ||
Cable/Satellite TV - 1.0% | |||
Numericable LLC Tranche B 12LN, term loan 3 month U.S. LIBOR + 3.000% 4.3491% 1/1/26 (b)(c) | 1,335,000 | 1,335,307 | |
Unitymedia Finance LLC Tranche B, term loan 3 month U.S. LIBOR + 2.250% 3.4889% 9/30/25 (b)(c) | 1,645,000 | 1,643,602 | |
WideOpenWest Finance LLC Tranche B, term loan 3 month U.S. LIBOR + 3.250% 4.4867% 8/19/23 (b)(c) | 2,215,000 | 2,217,769 | |
Zayo Group LLC term loan 3 month U.S. LIBOR + 2.000% 3.2389% 1/19/21 (b)(c) | 741,275 | 742,780 | |
Ziggo Secured Finance Partnership Tranche E, term loan 3 month U.S. LIBOR + 2.500% 3.7389% 4/15/25 (b)(c) | 1,750,000 | 1,753,833 | |
TOTAL CABLE/SATELLITE TV | 7,693,291 | ||
Chemicals - 0.0% | |||
Tronox Blocked Borrower LLC Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4.3231% 9/22/24 (b)(c) | 92,209 | 92,940 | |
Tronox Finance LLC Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4.3283% 9/22/24 (b)(c) | 212,791 | 214,476 | |
TOTAL CHEMICALS | 307,416 | ||
Containers - 0.3% | |||
Reynolds Group Holdings, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.750% 3.985% 2/5/23 (b)(c) | 2,687,901 | 2,703,007 | |
Diversified Financial Services - 0.2% | |||
Bcp Renaissance Parent LLC Tranche B, term loan 3 month U.S. LIBOR + 4.500% 5.3801% 9/20/24 (b)(c) | 190,000 | 192,079 | |
IBC Capital U.S. LLC: | |||
Tranche 2LN, term loan 3 month U.S. LIBOR + 7.000% 8.3172% 9/11/22 (b)(c) | 925,000 | 874,125 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.750% 5.0672% 9/11/21 (b)(c) | 229,125 | 229,125 | |
TOTAL DIVERSIFIED FINANCIAL SERVICES | 1,295,329 | ||
Energy - 0.2% | |||
Chesapeake Energy Corp. Tranche 1LN, term loan 3 month U.S. LIBOR + 7.500% 8.8144% 8/23/21 (b)(c) | 1,160,000 | 1,243,137 | |
Forbes Energy Services LLC Tranche B, term loan 12% 4/13/21 (b)(e) | 463,329 | 466,804 | |
TOTAL ENERGY | 1,709,941 | ||
Entertainment/Film - 0.2% | |||
AMC Entertainment, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.250% 3.4889% 12/15/22 (b)(c) | 1,196,947 | 1,196,671 | |
Environmental - 0.1% | |||
Hd Supply Waterworks Ltd. Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4.455% 8/1/24 (b)(c) | 615,000 | 618,844 | |
Food & Drug Retail - 0.4% | |||
Albertson's LLC Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4.3172% 6/22/23 (b)(c) | 348,726 | 337,539 | |
JBS USA Lux SA Tranche B, term loan LIBOR (US)(3 MO) RATE + 2.500% 3.7389% 10/30/22 (b)(c) | 1,606,925 | 1,571,782 | |
Pizza Hut Holdings LLC Tranche B, term loan 3 month U.S. LIBOR + 2.000% 3.2367% 6/16/23 (b)(c) | 1,278,575 | 1,286,246 | |
TOTAL FOOD & DRUG RETAIL | 3,195,567 | ||
Food/Beverage/Tobacco - 0.1% | |||
Chobani LLC Tranche B, term loan 3 month U.S. LIBOR + 3.500% 4.7378% 10/7/23 (b)(c) | 80,000 | 80,934 | |
Post Holdings, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.250% 3.4923% 5/24/24 (b)(c) | 339,150 | 340,785 | |
TOTAL FOOD/BEVERAGE/TOBACCO | 421,719 | ||
Gaming - 0.6% | |||
CityCenter Holdings LLC Tranche B, term loan 3 month U.S. LIBOR + 2.500% 3.7423% 4/18/24 (b)(c) | 1,271,813 | 1,277,065 | |
Golden Entertainment, Inc. Tranche B, term loan: | |||
3 month U.S. LIBOR + 3.000% 4.24% 10/20/24 (b)(c) | 2,005,000 | 2,005,842 | |
3 month U.S. LIBOR + 7.000% 10/20/25 (b)(c)(f) | 670,000 | 675,025 | |
Scientific Games Corp. Tranche B, term loan 3 month U.S. LIBOR + 3.250% 4.5159% 8/14/24 (b)(c) | 540,000 | 545,999 | |
TOTAL GAMING | 4,503,931 | ||
Healthcare - 0.0% | |||
Valeant Pharmaceuticals International, Inc. Tranche B, term loan 3 month U.S. LIBOR + 4.750% 5.99% 4/1/22 (b)(c) | 230,828 | 235,878 | |
Insurance - 0.2% | |||
USI, Inc. Tranche B, term loan: | |||
3 month U.S. LIBOR + 3.000% 5/16/24 (b)(c)(f) | 1,340,000 | 1,338,325 | |
3 month U.S. LIBOR + 3.000% 4.3142% 5/16/24 (b)(c) | 220,000 | 220,458 | |
TOTAL INSURANCE | 1,558,783 | ||
Publishing/Printing - 0.1% | |||
Springer Science+Business Media Deutschland GmbH: | |||
Tranche B 13LN, term loan 3 month U.S. LIBOR + 3.500% 8/15/22 (b)(c)(f) | 30,000 | 30,075 | |
Tranche B 9LN, term loan 3 month U.S. LIBOR + 3.500% 4.7423% 8/14/20 (b)(c) | 842,889 | 845,873 | |
TOTAL PUBLISHING/PRINTING | 875,948 | ||
Restaurants - 0.2% | |||
Burger King Worldwide, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.250% 3.5276% 2/17/24 (b)(c) | 1,876,731 | 1,878,608 | |
Services - 0.7% | |||
Almonde, Inc.: | |||
Tranche 2LN, term loan 3 month U.S. LIBOR + 7.250% 8.5669% 6/13/25 (b)(c) | 85,000 | 84,174 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.500% 4.8169% 6/13/24 (b)(c) | 390,000 | 388,424 | |
Brand Energy & Infrastructure Services, Inc. Tranche B, term loan 3 month U.S. LIBOR + 4.250% 5.6149% 6/21/24 (b)(c) | 2,209,463 | 2,222,962 | |
Lineage Logistics Holdings, LLC. Tranche B, term loan 3 month U.S. LIBOR + 3.500% 4.7423% 4/7/21 (b)(c) | 2,369,626 | 2,376,285 | |
TOTAL SERVICES | 5,071,845 | ||
Super Retail - 0.6% | |||
JC Penney Corp., Inc. Tranche B, term loan 3 month U.S. LIBOR + 4.250% 5.5678% 6/23/23 (b)(c) | 1,606,876 | 1,470,741 | |
PetSmart, Inc. term loan 3 month U.S. LIBOR + 3.000% 4.24% 3/11/22 (b)(c) | 1,016,751 | 867,126 | |
Red Ventures LLC: | |||
Tranche 2LN, term loan 3 month U.S. LIBOR + 8.000% 10/18/25 (b)(c)(f) | 670,000 | 668,325 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.000% 10/18/24 (b)(c)(f) | 2,005,000 | 1,991,627 | |
TOTAL SUPER RETAIL | 4,997,819 | ||
Technology - 2.0% | |||
Ceridian HCM Holding, Inc. Tranche B 2LN, term loan 3 month U.S. LIBOR + 3.500% 4.7389% 9/15/20 (b)(c) | 1,500,863 | 1,500,863 | |
EIG Investors Corp. Tranche B, term loan 3 month U.S. LIBOR + 4.000% 5.3178% 2/9/23 (b)(c) | 1,579,494 | 1,595,952 | |
Epicor Software Corp. Tranche B, term loan 3 month U.S. LIBOR + 3.750% 5% 6/1/22 (b)(c) | 1,299,378 | 1,306,148 | |
Go Daddy Operating Co. LLC Tranche B, term loan 3 month U.S. LIBOR + 2.500% 3.7423% 2/15/24 (b)(c) | 2,112,424 | 2,122,986 | |
Kronos, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.500% 4.8114% 11/1/23 (b)(c) | 2,813,773 | 2,832,569 | |
Landesk Group, Inc. term loan: | |||
3 month U.S. LIBOR + 4.250% 5.5% 1/20/24 (b)(c) | 837,292 | 816,360 | |
3 month U.S. LIBOR + 9.000% 10.25% 1/20/25 (b)(c) | 550,000 | 532,472 | |
Rackspace Hosting, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4.3106% 11/3/23 (b)(c) | 1,495,240 | 1,494,313 | |
Uber Technologies, Inc. Tranche B, term loan 3 month U.S. LIBOR + 4.000% 5.2379% 7/13/23 (b)(c) | 3,207,600 | 3,227,648 | |
TOTAL TECHNOLOGY | 15,429,311 | ||
Telecommunications - 1.6% | |||
Altice Financing SA Tranche B, term loan: | |||
3 month U.S. LIBOR + 2.750% 1/5/26 (b)(c)(f) | 1,365,000 | 1,365,000 | |
3 month U.S. LIBOR + 2.750% 4.1092% 7/15/25 (b)(c) | 666,650 | 666,370 | |
Level 3 Financing, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.250% 3.4889% 2/22/24 (b)(c) | 1,570,000 | 1,575,322 | |
LTS Buyer LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 6.5% 4/11/20 (b)(c) | 656,169 | 657,403 | |
Radiate Holdco LLC Tranche B, term loan 3 month U.S. LIBOR + 3.000% 4.2423% 2/1/24 (b)(c) | 2,089,500 | 2,065,408 | |
Sable International Finance Ltd. Tranche B, term loan 3 month U.S. LIBOR + 3.500% 4.7423% 1/31/25 (b)(c) | 195,000 | 195,700 | |
Securus Technologies, Inc. Tranche B, term loan: | |||
3 month U.S. LIBOR + 4.500% 5.7421% 6/15/24 (b)(c) | 2,215,000 | 2,240,849 | |
3 month U.S. LIBOR + 8.250% 6/15/25 (b)(c)(f) | 740,000 | 744,936 | |
SFR Group SA Tranche B 11LN, term loan 3 month U.S. LIBOR + 2.750% 4.1301% 7/31/25 (b)(c) | 1,999,950 | 1,995,670 | |
Sprint Communications, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.500% 3.75% 2/3/24 (b)(c) | 577,100 | 579,022 | |
Telesat LLC Tranche B 4LN, term loan 3 month U.S. LIBOR + 3.000% 4.32% 11/17/23 (b)(c) | 49,625 | 49,889 | |
TOTAL TELECOMMUNICATIONS | 12,135,569 | ||
Transportation Ex Air/Rail - 0.0% | |||
International Seaways Operating Corp. Tranche B, term loan 3 month U.S. LIBOR + 5.500% 6.74% 6/22/22 (b)(c) | 319,844 | 321,443 | |
Utilities - 0.2% | |||
Calpine Corp. Tranche B, term loan 3 month U.S. LIBOR + 1.750% 3% 11/30/17 (b)(c) | 157,500 | 157,500 | |
The AES Corp. Tranche B, term loan 3 month U.S. LIBOR + 2.000% 3.3172% 5/24/22 (b)(c) | 1,631,800 | 1,634,525 | |
TOTAL UTILITIES | 1,792,025 | ||
TOTAL BANK LOAN OBLIGATIONS | |||
(Cost $79,709,075) | 79,999,988 | ||
Preferred Securities - 3.9% | |||
Banks & Thrifts - 3.9% | |||
Bank of America Corp.: | |||
6.25% (b)(g) | 1,600,000 | 1,797,746 | |
6.5% (b)(g) | 635,000 | 727,302 | |
Barclays Bank PLC 7.625% 11/21/22 | 4,695,000 | 5,552,915 | |
Barclays PLC: | |||
6.625% (b)(g) | 2,935,000 | 3,092,182 | |
8.25% (b)(g) | 1,125,000 | 1,207,769 | |
Citigroup, Inc.: | |||
5.875% (b)(g) | 785,000 | 826,276 | |
5.95% (b)(g) | 1,135,000 | 1,211,943 | |
5.95% (b)(g) | 1,235,000 | 1,385,172 | |
Credit Agricole SA: | |||
6.625% (a)(b)(g) | 5,265,000 | 5,572,203 | |
7.875% (a)(b)(g) | 1,480,000 | 1,697,838 | |
Goldman Sachs Group, Inc. 5% (b)(g)(h) | 2,930,000 | 2,933,760 | |
JPMorgan Chase & Co. 5.3% (b)(g) | 590,000 | 635,961 | |
Royal Bank of Scotland Group PLC: | |||
7.5% (b)(g) | 2,040,000 | 2,199,311 | |
8.625% (b)(g) | 1,415,000 | 1,613,075 | |
TOTAL PREFERRED SECURITIES | |||
(Cost $27,775,521) | 30,453,453 | ||
Shares | Value | ||
Money Market Funds - 5.5% | |||
Fidelity Cash Central Fund, 1.10% (i) | |||
(Cost $43,136,987) | 43,128,646 | 43,137,272 | |
TOTAL INVESTMENT IN SECURITIES - 101.3% | |||
(Cost $766,819,077) | 789,361,366 | ||
NET OTHER ASSETS (LIABILITIES) - (1.3)% | (9,802,743) | ||
NET ASSETS - 100% | $779,558,623 |
Legend
(a) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $340,253,484 or 43.6% of net assets.
(b) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end.
(c) Coupon is indexed to a floating interest rate which may be multiplied by a specified factor and/or subject to caps or floors.
(d) Non-income producing
(e) Level 3 security
(f) The coupon rate will be determined upon settlement of the loan after period end.
(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) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $211,715 |
Total | $211,715 |
Investment Valuation
The following is a summary of the inputs used, as of October 31, 2017, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Energy | $2,164,916 | $861,239 | $1,303,677 | $-- |
Telecommunication Services | 23,749 | -- | -- | 23,749 |
Corporate Bonds | 633,581,988 | -- | 633,581,988 | -- |
Bank Loan Obligations | 79,999,988 | -- | 79,533,184 | 466,804 |
Preferred Securities | 30,453,453 | -- | 30,453,453 | -- |
Money Market Funds | 43,137,272 | 43,137,272 | -- | -- |
Total Investments in Securities: | $789,361,366 | $43,998,511 | $744,872,302 | $490,553 |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 76.6% |
Canada | 5.7% |
Luxembourg | 3.9% |
Netherlands | 3.3% |
United Kingdom | 3.0% |
France | 1.5% |
Cayman Islands | 1.3% |
Ireland | 1.3% |
Others (Individually Less Than 1%) | 3.4% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
October 31, 2017 | ||
Assets | ||
Investment in securities, at value See accompanying schedule: Unaffiliated issuers (cost $723,682,090) | $746,224,094 | |
Fidelity Central Funds (cost $43,136,987) | 43,137,272 | |
Total Investment in Securities (cost $766,819,077) | $789,361,366 | |
Cash | 586,097 | |
Receivable for investments sold | 6,190,023 | |
Receivable for fund shares sold | 587,961 | |
Interest receivable | 10,347,199 | |
Distributions receivable from Fidelity Central Funds | 30,842 | |
Prepaid expenses | 1,748 | |
Total assets | 807,105,236 | |
Liabilities | ||
Payable for investments purchased | ||
Regular delivery | $20,463,679 | |
Delayed delivery | 2,235,000 | |
Payable for fund shares redeemed | 3,993,274 | |
Distributions payable | 175,214 | |
Accrued management fee | 359,450 | |
Distribution and service plan fees payable | 127,257 | |
Other affiliated payables | 133,520 | |
Other payables and accrued expenses | 59,219 | |
Total liabilities | 27,546,613 | |
Net Assets | $779,558,623 | |
Net Assets consist of: | ||
Paid in capital | $786,070,187 | |
Undistributed net investment income | 5,907,159 | |
Accumulated undistributed net realized gain (loss) on investments | (34,961,012) | |
Net unrealized appreciation (depreciation) on investments | 22,542,289 | |
Net Assets | $779,558,623 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($191,743,524 ÷ 24,055,518 shares) | $7.97 | |
Maximum offering price per share (100/96.00 of $7.97) | $8.30 | |
Class M: | ||
Net Asset Value and redemption price per share ($61,488,044 ÷ 7,730,217 shares) | $7.95 | |
Maximum offering price per share (100/96.00 of $7.95) | $8.28 | |
Class C: | ||
Net Asset Value and offering price per share ($88,685,682 ÷ 11,160,013 shares)(a) | $7.95 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($437,641,373 ÷ 54,806,592 shares) | $7.99 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Year ended October 31, 2017 | ||
Investment Income | ||
Dividends | $2,660,043 | |
Interest | 44,601,178 | |
Income from Fidelity Central Funds | 211,715 | |
Total income | 47,472,936 | |
Expenses | ||
Management fee | $4,357,400 | |
Transfer agent fees | 1,352,668 | |
Distribution and service plan fees | 1,619,868 | |
Accounting fees and expenses | 291,836 | |
Custodian fees and expenses | 19,665 | |
Independent trustees' fees and expenses | 3,126 | |
Registration fees | 89,470 | |
Audit | 75,829 | |
Legal | 4,100 | |
Miscellaneous | 6,870 | |
Total expenses before reductions | 7,820,832 | |
Expense reductions | (11,059) | 7,809,773 |
Net investment income (loss) | 39,663,163 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 13,445,307 | |
Fidelity Central Funds | 2,037 | |
Total net realized gain (loss) | 13,447,344 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 7,860,749 | |
Fidelity Central Funds | (5,263) | |
Total change in net unrealized appreciation (depreciation) | 7,855,486 | |
Net gain (loss) | 21,302,830 | |
Net increase (decrease) in net assets resulting from operations | $60,965,993 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Year ended October 31, 2017 | Year ended October 31, 2016 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $39,663,163 | $44,954,717 |
Net realized gain (loss) | 13,447,344 | (34,377,068) |
Change in net unrealized appreciation (depreciation) | 7,855,486 | 46,532,275 |
Net increase (decrease) in net assets resulting from operations | 60,965,993 | 57,109,924 |
Distributions to shareholders from net investment income | (36,726,255) | (41,784,482) |
Share transactions - net increase (decrease) | (69,327,170) | 39,446,842 |
Redemption fees | 78,490 | 201,553 |
Total increase (decrease) in net assets | (45,008,942) | 54,973,837 |
Net Assets | ||
Beginning of period | 824,567,565 | 769,593,728 |
End of period | $779,558,623 | $824,567,565 |
Other Information | ||
Undistributed net investment income end of period | $5,907,159 | $3,588,662 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Advisor High Income Fund Class A
Years ended October 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected PerShare Data | |||||
Net asset value, beginning of period | $7.73 | $7.61 | $8.33 | $8.77 | $8.73 |
Income from Investment Operations | |||||
Net investment income (loss)A | .399 | .421 | .430 | .432 | .473 |
Net realized and unrealized gain (loss) | .208 | .089 | (.523) | (.058) | .117 |
Total from investment operations | .607 | .510 | (.093) | .374 | .590 |
Distributions from net investment income | (.368) | (.392) | (.424) | (.429) | (.457) |
Distributions from net realized gain | | | (.204) | (.386) | (.094) |
Total distributions | (.368) | (.392) | (.628) | (.815) | (.551) |
Redemption fees added to paid in capitalA | .001 | .002 | .001 | .001 | .001 |
Net asset value, end of period | $7.97 | $7.73 | $7.61 | $8.33 | $8.77 |
Total ReturnB,C | 8.02% | 7.09% | (1.13)% | 4.51% | 6.99% |
Ratios to Average Net AssetsD,E | |||||
Expenses before reductions | 1.03% | 1.04% | 1.03% | 1.03% | 1.03% |
Expenses net of fee waivers, if any | 1.03% | 1.04% | 1.03% | 1.03% | 1.03% |
Expenses net of all reductions | 1.03% | 1.04% | 1.03% | 1.03% | 1.03% |
Net investment income (loss) | 5.06% | 5.68% | 5.45% | 5.09% | 5.40% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $191,744 | $223,620 | $227,596 | $243,987 | $280,769 |
Portfolio turnover rateF | 63% | 61% | 60% | 79% | 76% |
A Calculated based on average shares outstanding during the period.
B Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
C Total returns do not include the effect of the sales charges.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor High Income Fund Class M
Years ended October 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected PerShare Data | |||||
Net asset value, beginning of period | $7.71 | $7.59 | $8.31 | $8.76 | $8.72 |
Income from Investment Operations | |||||
Net investment income (loss)A | .395 | .418 | .428 | .429 | .469 |
Net realized and unrealized gain (loss) | .209 | .089 | (.524) | (.067) | .119 |
Total from investment operations | .604 | .507 | (.096) | .362 | .588 |
Distributions from net investment income | (.365) | (.389) | (.421) | (.427) | (.455) |
Distributions from net realized gain | | | (.204) | (.386) | (.094) |
Total distributions | (.365) | (.389) | (.625) | (.813) | (.549) |
Redemption fees added to paid in capitalA | .001 | .002 | .001 | .001 | .001 |
Net asset value, end of period | $7.95 | $7.71 | $7.59 | $8.31 | $8.76 |
Total ReturnB,C | 8.00% | 7.06% | (1.16)% | 4.38% | 6.97% |
Ratios to Average Net AssetsD,E | |||||
Expenses before reductions | 1.06% | 1.06% | 1.05% | 1.05% | 1.05% |
Expenses net of fee waivers, if any | 1.05% | 1.06% | 1.05% | 1.05% | 1.05% |
Expenses net of all reductions | 1.05% | 1.06% | 1.05% | 1.05% | 1.05% |
Net investment income (loss) | 5.03% | 5.65% | 5.43% | 5.07% | 5.38% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $61,488 | $70,205 | $79,379 | $86,166 | $90,901 |
Portfolio turnover rateF | 63% | 61% | 60% | 79% | 76% |
A Calculated based on average shares outstanding during the period.
B Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
C Total returns do not include the effect of the sales charges.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor High Income Fund Class C
Years ended October 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected PerShare Data | |||||
Net asset value, beginning of period | $7.70 | $7.59 | $8.30 | $8.75 | $8.71 |
Income from Investment Operations | |||||
Net investment income (loss)A | .337 | .363 | .370 | .365 | .405 |
Net realized and unrealized gain (loss) | .219 | .079 | (.515) | (.066) | .119 |
Total from investment operations | .556 | .442 | (.145) | .299 | .524 |
Distributions from net investment income | (.307) | (.334) | (.362) | (.364) | (.391) |
Distributions from net realized gain | | | (.204) | (.386) | (.094) |
Total distributions | (.307) | (.334) | (.566) | (.750) | (.485) |
Redemption fees added to paid in capitalA | .001 | .002 | .001 | .001 | .001 |
Net asset value, end of period | $7.95 | $7.70 | $7.59 | $8.30 | $8.75 |
Total ReturnB,C | 7.35% | 6.14% | (1.78)% | 3.60% | 6.20% |
Ratios to Average Net AssetsD,E | |||||
Expenses before reductions | 1.79% | 1.80% | 1.80% | 1.80% | 1.79% |
Expenses net of fee waivers, if any | 1.79% | 1.80% | 1.80% | 1.80% | 1.79% |
Expenses net of all reductions | 1.79% | 1.80% | 1.80% | 1.80% | 1.79% |
Net investment income (loss) | 4.29% | 4.91% | 4.68% | 4.32% | 4.64% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $88,686 | $97,833 | $94,752 | $114,455 | $126,952 |
Portfolio turnover rateF | 63% | 61% | 60% | 79% | 76% |
A Calculated based on average shares outstanding during the period.
B Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
C Total returns do not include the effect of the contingent deferred sales charge.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor High Income Fund Class I
Years ended October 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected PerShare Data | |||||
Net asset value, beginning of period | $7.74 | $7.62 | $8.34 | $8.79 | $8.75 |
Income from Investment Operations | |||||
Net investment income (loss)A | .416 | .438 | .445 | .447 | .489 |
Net realized and unrealized gain (loss) | .219 | .089 | (.523) | (.068) | .116 |
Total from investment operations | .635 | .527 | (.078) | .379 | .605 |
Distributions from net investment income | (.386) | (.409) | (.439) | (.444) | (.472) |
Distributions from net realized gain | | | (.204) | (.386) | (.094) |
Total distributions | (.386) | (.409) | (.643) | (.830) | (.566) |
Redemption fees added to paid in capitalA | .001 | .002 | .001 | .001 | .001 |
Net asset value, end of period | $7.99 | $7.74 | $7.62 | $8.34 | $8.79 |
Total ReturnB | 8.39% | 7.31% | (.94)% | 4.57% | 7.16% |
Ratios to Average Net AssetsC,D | |||||
Expenses before reductions | .80% | .82% | .87% | .87% | .87% |
Expenses net of fee waivers, if any | .80% | .82% | .85% | .85% | .85% |
Expenses net of all reductions | .80% | .82% | .85% | .85% | .85% |
Net investment income (loss) | 5.28% | 5.89% | 5.63% | 5.27% | 5.58% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $437,641 | $432,910 | $361,760 | $337,377 | $358,238 |
Portfolio turnover rateE | 63% | 61% | 60% | 79% | 76% |
A Calculated based on average shares outstanding during the period.
B Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
C Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
D 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.
E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended October 31, 2017
1. Organization.
Fidelity Advisor High 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 M (formerly Class T), Class C and Class I shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.
After the close of business on June 24, 2016, all outstanding Class B shares were converted to Class A shares. All prior fiscal period dollar and share amounts for Class B presented in the Notes to Financial Statements are for the period November 1, 2015 through June 24, 2016.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Valuation techniques used to value the Fund's investments by major category are as follows:
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds, bank loan obligations 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. The Fund invests a significant portion of its assets in below investment grade securities. The value of these securities can be more volatile due to changes in the credit quality of the issuer and is sensitive to changes in economic, market and regulatory conditions.
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 equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of October 31, 2017 is included at the end of the Fund's Schedule of Investments.
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 includes 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. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Paid in Kind (PIK) income is recorded at the fair market value of the securities received. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of October 31, 2017, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction.
Dividends are declared and recorded daily and paid monthly from net investment income. Distributions from realized gains, if any, are declared and recorded on the ex-dividend date. Income 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 market discount, capital loss carryforwards, defaulted bonds and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
Gross unrealized appreciation | $33,437,918 |
Gross unrealized depreciation | (8,060,018) |
Net unrealized appreciation (depreciation) | $25,377,900 |
Tax Cost | $763,983,466 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $2,904,477 |
Capital loss carryforward | $(34,790,475) |
Net unrealized appreciation (depreciation) on securities and other investments | $25,377,900 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of fiscal period end and is subject to adjustment.
No expiration | |
Short-term | $(16,504,390) |
Long-term | (18,286,085) |
Total capital loss carryforward | $(34,790,475) |
The tax character of distributions paid was as follows:
October 31, 2017 | October 31, 2016 | |
Ordinary Income | $36,726,255 | $ 41,784,482 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days may have been subject to a redemption fee equal to 1.00% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital. In November 2017, the Board of Trustees approved the elimination of these redemption fees effective December 18, 2017.
Delayed Delivery Transactions and When-Issued Securities. During the period, the Fund transacted in securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. The securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. The Fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Loans and Other Direct Debt Instruments. The Fund invests in direct debt instruments which are interests in amounts owed to lenders by corporate or other borrowers. These instruments may be in the form of loans, trade claims or other receivables and may include standby financing commitments such as revolving credit facilities that obligate the Fund to supply additional cash to the borrower on demand. Loans may be acquired through assignment or participation. The Fund did not have any unfunded loan commitments, which are contractual obligations for future funding, at period end.
New Accounting Pronouncement. In March 2017, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU), ASU 2017-08, which amends the amortization period for certain callable debt securities that are held at a premium. The amendment requires the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount. The ASU is effective for annual periods beginning after December 15, 2018. Management is currently evaluating the potential impact of these changes to the financial statements.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $476,293,356 and $552,662,348, 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 .45% of the Fund's average net assets and an annualized group fee rate that averaged .11% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annual management fee rate was .56% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
Distribution Fee | Service Fee | Total Fees | Retained by FDC |
|
Class A | -% | .25% | $506,993 | $11,898 |
Class M | -% | .25% | 158,750 | 592 |
Class C | .75% | .25% | 954,125 | 71,551 |
$1,619,868 | $84,041 |
Sales Load. FDC may receive a front-end sales charge of up to 4.00% for selling Class A shares and Class M 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 M and Class C redemptions. The deferred sales charges are 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class M shares.
For the period, sales charge amounts retained by FDC were as follows:
Retained by FDC |
|
Class A | $15,937 |
Class M | 3,164 |
Class C(a) | 5,186 |
$24,287 |
(a) When Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
Amount | % of Class-Level Average Net Assets |
|
Class A | $315,596 | .16 |
Class M | 116,880 | .18 |
Class C | 163,958 | .17 |
Class I | 756,234 | .18 |
$1,352,668 |
Accounting Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The fee is based on the level of average net assets for each month.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $2,528 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Expense Reductions.
Through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $6,248.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $4,811.
8. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Year ended October 31, 2017 | Year ended October 31, 2016 | |
From net investment income | ||
Class A | $9,515,108 | $11,526,565 |
Class M | 2,956,751 | 3,698,146 |
Class B | | 142,572 |
Class C | 3,737,500 | 4,154,279 |
Class I | 20,516,896 | 22,262,920 |
Total | $36,726,255 | $41,784,482 |
9. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Year ended October 31, 2017 | Year ended October 31, 2016 | Year ended October 31, 2017 | Year ended October 31, 2016 | |
Class A | ||||
Shares sold | 4,274,945 | 7,433,911 | $33,549,610 | $54,677,237 |
Reinvestment of distributions | 1,068,579 | 1,372,430 | 8,416,417 | 10,168,527 |
Shares redeemed | (10,231,300) | (9,769,225) | (80,486,859) | (71,672,557) |
Net increase (decrease) | (4,887,776) | (962,884) | $(38,520,832) | $(6,826,793) |
Class M | ||||
Shares sold | 898,800 | 1,617,554 | $7,023,251 | $11,757,682 |
Reinvestment of distributions | 338,516 | 414,444 | 2,663,455 | 3,061,824 |
Shares redeemed | (2,612,833) | (3,378,059) | (20,330,619) | (24,216,552) |
Net increase (decrease) | (1,375,517) | (1,346,061) | $(10,643,913) | $(9,397,046) |
Class B | ||||
Shares sold | | 43,498 | $ | $304,960 |
Reinvestment of distributions | | 16,125 | | 116,505 |
Shares redeemed | | (864,825) | | (6,323,785) |
Net increase (decrease) | | (805,202) | $ | $(5,902,320) |
Class C | ||||
Shares sold | 1,327,140 | 2,763,335 | $10,364,683 | $20,357,542 |
Reinvestment of distributions | 432,438 | 486,464 | 3,399,020 | 3,595,140 |
Shares redeemed | (3,300,673) | (3,037,093) | (25,902,554) | (22,336,625) |
Net increase (decrease) | (1,541,095) | 212,706 | $(12,138,851) | $1,616,057 |
Class I | ||||
Shares sold | 19,143,899 | 27,101,846 | $151,063,114 | $200,470,955 |
Reinvestment of distributions | 2,509,674 | 2,716,962 | 19,816,828 | 20,215,304 |
Shares redeemed | (22,778,405) | (21,336,862) | (178,903,516) | (160,729,315) |
Net increase (decrease) | (1,124,832) | 8,481,946 | $(8,023,574) | $59,956,944 |
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.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Advisor Series I and Shareholders of Fidelity Advisor High Income Fund:
We have audited the accompanying statement of assets and liabilities of Fidelity Advisor High Income Fund (the Fund), a fund of Fidelity Advisor Series I, including the schedule of investments, as of October 31, 2017, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2017, by correspondence with the custodians and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Fidelity Advisor High Income Fund as of October 31, 2017, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
December 14, 2017
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Each of the Trustees oversees 190 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The funds Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and sector funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. For example, a working group comprised of Independent Trustees and FMR has worked and continues to work to review the Fidelity® funds' valuation-related activities, reporting and risk management. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-present), and Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the board of Artis-Naples, Naples, Florida, and as a Trustee for Brewster Academy, Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
Charles S. Morrison (1960)
Year of Election or Appointment: 2014
Trustee
Mr. Morrison also serves as Trustee of other funds. He serves as President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present), a Director of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2014-present), Director of Fidelity SelectCo, LLC (investment adviser firm, 2014-present), President, Asset Management (2014-present), and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (investment adviser firm, 2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.
* Determined to be an Interested Trustee by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Childrens Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present) and Board of Directors (2017-present) of the Asolo Repertory Theatre.
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Busters Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Vice Chair of the Board of Governors, State University System of Florida (2013-present) and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present) and the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
William S. Stavropoulos (1939)
Year of Election or Appointment: 2002
Trustee
Vice Chairman of the Independent Trustees
Mr. Stavropoulos also serves as Trustee of other Fidelity® funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of Artis-Naples in Naples, Florida. Previously, Mr. Stavropoulos served as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication), and as a member of the Board of Trustees of the University of Florida (2013-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
Marc R. Bryant (1966)
Year of Election or Appointment: 2015
Secretary and Chief Legal Officer (CLO)
Mr. Bryant also serves as Secretary and CLO of other funds. Mr. Bryant serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company (investment adviser firm, 2015-present) and FMR Co., Inc. (investment adviser firm, 2015-present); Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2015-present) and Fidelity Investments Money Management, Inc. (investment adviser firm, 2015-present); and CLO of Fidelity Management & Research (Hong Kong) Limited and FMR Investment Management (UK) Limited (investment adviser firms, 2015-present) and Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and CLO of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006).
William C. Coffey (1969)
Year of Election or Appointment: 2009
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds, and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Stephanie J. Dorsey (1969)
Year of Election or Appointment: 2010
Assistant Treasurer
Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank.
Howard J. Galligan III (1966)
Year of Election or Appointment: 2014
Chief Financial Officer
Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (investment adviser firm, 2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011).
Thomas C. Hense (1964)
Year of Election or Appointment: 2008, 2010, or 2015
Vice President
Mr. Hense serves as Vice President of Fidelity Advisor® Multi-Asset Income Fund (2015) and other funds (High Income (2008), Small Cap (2008), and Value (2010) funds), and is an employee of Fidelity Investments (1993-present). Previously, Mr. Hense served as a portfolio manager for Fidelity's Institutional Money Management Group (Pyramis) (2003-2008).
Brian B. Hogan (1964)
Year of Election or Appointment: 2009
Vice President
Mr. Hogan also serves as Trustee or Vice President of other funds. Mr. Hogan serves as a Director of FMR Investment Management (UK) Limited (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present) and President of the Equity Division of FMR (investment adviser firm, 2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager. Mr. Brian B. Hogan is not related to Mr. Colm A. Hogan.
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan is an employee of Fidelity Investments (2005-present). Mr. Colm A. Hogan is not related to Mr. Brian B. Hogan.
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Rieco E. Mello (1969)
Year of Election or Appointment: 2017
Assistant Treasurer
Mr. Mello also serves as Assistant Treasurer of other funds. Mr. Mello is an employee of Fidelity Investments (1995-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Renee Stagnone (1975)
Year of Election or Appointment: 2016
Assistant Treasurer
Ms. Stagnone also serves as an officer of other funds. Ms. Stagnone is an employee of Fidelity Investments (1997-present). Previously, Ms. Stagnone served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (May 1, 2017 to October 31, 2017).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Annualized Expense Ratio-A | Beginning Account Value May 1, 2017 | Ending Account Value October 31, 2017 | Expenses Paid During Period-B May 1, 2017 to October 31, 2017 |
|
Class A | 1.02% | |||
Actual | $1,000.00 | $1,029.30 | $5.22 | |
Hypothetical-C | $1,000.00 | $1,020.06 | $5.19 | |
Class M | 1.04% | |||
Actual | $1,000.00 | $1,029.20 | $5.32 | |
Hypothetical-C | $1,000.00 | $1,019.96 | $5.30 | |
Class C | 1.78% | |||
Actual | $1,000.00 | $1,025.40 | $9.09 | |
Hypothetical-C | $1,000.00 | $1,016.23 | $9.05 | |
Class I | .80% | |||
Actual | $1,000.00 | $1,030.40 | $4.09 | |
Hypothetical-C | $1,000.00 | $1,021.17 | $4.08 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
A total of 0.06% of the dividends distributed during the fiscal year was derived from interest on U.S. Government securities which is generally exempt from state income tax.
The fund designates $22,926,932 of distributions paid during the period January 1, 2017 to October 31, 2017 as qualifying to be taxed as interest-related dividends for nonresident alien shareholders.
The fund will notify shareholders in January 2018 of amounts for use in preparing 2017 income tax returns.
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Advisor High Income Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. FMR and the sub-advisers are referred to herein as the Investment Advisers. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established various standing committees (Committees), each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to review matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to all of the Fidelity funds.
At its July 2017 meeting, the Board unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and would be realized as the fund grows, and whether any economies of scale are appropriately shared with fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, which is part of the Fidelity family of funds.
Amendment to Group Fee Rate. The Board also approved an amendment to the management contract for the fund to add an additional breakpoint to the group fee schedule, effective October 1, 2017. The Board noted that the additional breakpoint would result in lower management fee rates as Fidelity's assets under management increase.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage. Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process. Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.In 2014, the Board formed an ad hoc Committee on Transfer Agency Fees to review the variety of transfer agency fee structures throughout the industry and Fidelity's competitive positioning with respect to industry participants. Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to Fidelity's investment research process, and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs; (iv) launching new share classes of existing funds; (v) eliminating purchase minimums and broadening eligibility requirements for certain lower-priced share classes; (vi) reducing management fees and total expenses for certain growth equity funds and index funds; (vii) lowering expense caps for certain existing funds and classes to reduce expenses borne by shareholders; (viii) eliminating short-term redemption fees for certain funds; (ix) introducing a new pricing structure for certain funds of funds that is expected to reduce overall expenses paid by shareholders; (x) rationalizing product lines and gaining increased efficiencies through proposals for fund mergers and share class consolidations; (xi) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; and (xii) implementing enhancements to further strengthen Fidelity's product line to increase investors' probability of success in achieving their investment goals, including retirement income goals. Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history.The Board took into account discussions with representatives of the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for the fund for different time periods, measured against a securities market index ("benchmark index") and a peer group of funds with similar objectives ("peer group"), if any. In its evaluation of fund investment performance, the Board gave particular attention to information indicating changes in performance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for any overperformance or underperformance.In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing fund share classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; issuer-specific information; and fund cash flows and other factors.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for the fund and an appropriate benchmark index and peer group for the most recent one-, three-, and five-year periods, as shown below. Returns are shown compared to the 25th percentile (top of box, 75% beaten) and 75th percentile (bottom of box, 25% beaten) of the peer universe.Fidelity Advisor High Income Fund
Fidelity Advisor High Income Fund
AHI-ANN-1217
1.728715.120
Fidelity Advisor® Value Fund Class A, Class M (formerly Class T), Class C, Class I and Class Z Annual Report October 31, 2017 |
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Contents
Board Approval of Investment Advisory Contracts and Management Fees |
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. © 2017 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 SECs web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SECs Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a funds total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended October 31, 2017 | Past 1 year | Past 5 years | Past 10 years |
Class A (incl. 5.75% sales charge) | 12.27% | 12.17% | 5.06% |
Class M (incl. 3.50% sales charge) | 14.62% | 12.40% | 5.04% |
Class C (incl. contingent deferred sales charge) | 17.21% | 12.64% | 4.89% |
Class I | 19.54% | 13.82% | 5.97% |
Class Z | 19.63% | 13.84% | 5.98% |
Class C shares' contingent deferred sales charges included in the past one year, past five years and past ten years total return figures are 1%, 0% and 0%, respectively.
The initial offering of Class Z shares took place on February 1, 2017. Returns prior to February 1, 2017, are those of Class I.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Value Fund - Class A on October 31, 2007, and the current 5.75% sales charge was paid.
The chart shows how the value of your investment would have changed, and also shows how the Russell Midcap® Value Index performed over the same period.
Period Ending Values | ||
| $16,375 | Fidelity Advisor® Value Fund - Class A |
| $21,382 | Russell Midcap® Value Index |
Management's Discussion of Fund Performance
Market Recap: The U.S. equity bellwether S&P 500® index gained 23.63% for the year ending October 31, 2017. Equity markets rose sharply following the November election and continued to rally through the end of February on optimism for President Trumps pro-business agenda. Stocks leveled off in March amid fading optimism and stalled efforts by Congress to repeal and replace the Affordable Care Act. Upward momentum soon returned and continued through period end amid positive consumer sentiment and other market indicators. The lone exception was a brief cooldown in August, when geopolitical tension escalated and uncertainty grew regarding the future of health care, tax reform and the debt ceiling. Sector-wise, information technology (+39%) performed best, surging as a handful of major index constituents posted strong returns. Financials gained 37%, riding an uptick in bond yields and a surge in banks. Materials (+29%) also did well, spurred by higher demand, especially from China. Conversely, consumer discretionary (+20%) lagged the broader market, as brick-and-mortar retailers continued to suffer from increased online competition. Rising interest rates held back real estate (+9%) and sluggish oil prices dragged on energy (+2%). Consumer staples (+4%) and telecommunication services (-1%) struggled due to investors general preference for risk assets. Comments from Co-Portfolio Manager Matthew Friedman: For the fiscal year, the fund's share classes (excluding sales charges, if applicable) gained about 18% to 20%, outpacing the 17.12% return of the benchmark Russell Midcap® Value Index. Versus the benchmark, the top individual contributor was Aerojet Rocketdyne Holdings. Shares of the maker of propulsion systems for rockets and missiles were driven by the Trump administration's promise to boost military spending. Elsewhere, it helped to establish a position in DXC Technology in April. The stock of the provider of technology consulting services benefited from the firm's better-than-expected earnings. Aerojet Rocketdyne and DXC were both non-benchmark holdings. Among individual detractors, untimely ownership of Israel-based Teva Pharmaceutical Industries hurt most. Shares of the maker of generic drugs were hurt by a combination of excess debt from the companys 2016 acquisition of Actavis generics business and drug-pricing pressure stemming from poor industry fundamentals and turnover in the broader generics product cycle. We sold our non-benchmark stake in Teva in October.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Note to shareholders: Effective December 31, 2016, Steve Barwikowski is no longer a Co-Manager of the fund. On December 1, 2017, Matt Friedman transitioned from Co-Manager to Lead Manager of the fund and also assumed joint responsibility of its consumer sleeves with Kathy Buck, who plans to retire from portfolio management on March 31, 2017.Investment Summary (Unaudited)
Top Ten Stocks as of October 31, 2017
% of fund's net assets | % of fund's net assets 6 months ago | |
Sempra Energy | 1.8 | 2.1 |
Xcel Energy, Inc. | 1.7 | 1.8 |
Edison International | 1.5 | 1.7 |
Discover Financial Services | 1.4 | 1.2 |
U.S. Bancorp | 1.4 | 1.2 |
American Tower Corp. | 1.3 | 1.5 |
Synchrony Financial | 1.3 | 0.9 |
Wells Fargo & Co. | 1.2 | 1.0 |
Berkshire Hathaway, Inc. Class B | 1.0 | 1.1 |
Colony NorthStar, Inc. | 1.0 | 1.0 |
13.6 |
Top Five Market Sectors as of October 31, 2017
% of fund's net assets | % of fund's net assets 6 months ago | |
Financials | 16.7 | 17.5 |
Consumer Discretionary | 12.4 | 11.5 |
Real Estate | 12.1 | 11.8 |
Industrials | 12.1 | 12.0 |
Materials | 8.8 | 8.3 |
Asset Allocation (% of fund's net assets)
As of October 31, 2017 * | ||
Stocks and Equity Futures | 97.7% | |
Convertible Securities | 0.1% | |
Short-Term Investments and Net Other Assets (Liabilities) | 2.2% |
* Foreign investments - 15.6%
As of April 30, 2017 * | ||
Stocks and Equity Futures | 99.4% | |
Convertible Securities | 0.2% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.4% |
* Foreign investments - 17.0%
Investments October 31, 2017
Showing Percentage of Net Assets
Common Stocks - 96.7% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 12.4% | |||
Auto Components - 1.2% | |||
American Axle & Manufacturing Holdings, Inc. (a) | 22,600 | $402,054 | |
Delphi Automotive PLC | 8,240 | 818,891 | |
Hertz Global Holdings, Inc. (a)(b) | 4,600 | 114,402 | |
1,335,347 | |||
Diversified Consumer Services - 1.4% | |||
Houghton Mifflin Harcourt Co. (a) | 65,672 | 650,153 | |
Service Corp. International | 11,890 | 421,619 | |
ServiceMaster Global Holdings, Inc. (a) | 11,416 | 537,808 | |
1,609,580 | |||
Hotels, Restaurants & Leisure - 1.7% | |||
DineEquity, Inc. | 9,000 | 428,490 | |
Eldorado Resorts, Inc. (a) | 16,358 | 420,401 | |
U.S. Foods Holding Corp. (a) | 16,055 | 437,980 | |
Wyndham Worldwide Corp. | 6,169 | 659,158 | |
1,946,029 | |||
Household Durables - 1.5% | |||
D.R. Horton, Inc. | 19,510 | 862,537 | |
Newell Brands, Inc. | 4,695 | 191,462 | |
Techtronic Industries Co. Ltd. | 79,500 | 466,214 | |
Whirlpool Corp. | 1,000 | 163,930 | |
1,684,143 | |||
Internet & Direct Marketing Retail - 0.8% | |||
Liberty Interactive Corp. QVC Group: | |||
(Venture Group) Series A (a) | 6,616 | 376,847 | |
Series A (a) | 24,960 | 567,091 | |
943,938 | |||
Leisure Products - 0.8% | |||
Mattel, Inc. | 51,260 | 723,791 | |
Vista Outdoor, Inc. (a) | 7,933 | 165,879 | |
889,670 | |||
Media - 3.3% | |||
DISH Network Corp. Class A (a) | 5,748 | 279,008 | |
Entercom Communications Corp. Class A (b) | 26,300 | 290,615 | |
Grupo Televisa SA de CV (CPO) sponsored ADR | 13,374 | 292,757 | |
Liberty Broadband Corp. Class C (a) | 5,644 | 492,665 | |
Liberty Global PLC Class C (a) | 14,584 | 435,916 | |
Nexstar Broadcasting Group, Inc. Class A | 3,900 | 248,820 | |
Omnicom Group, Inc. | 11,978 | 804,802 | |
Sinclair Broadcast Group, Inc. Class A (b) | 16,466 | 521,972 | |
Twenty-First Century Fox, Inc.: | |||
Class A | 10,857 | 283,911 | |
Class B | 5,751 | 146,363 | |
3,796,829 | |||
Specialty Retail - 1.4% | |||
AutoZone, Inc. (a) | 1,256 | 740,412 | |
O'Reilly Automotive, Inc. (a) | 1,800 | 379,710 | |
Sally Beauty Holdings, Inc. (a) | 10,519 | 182,084 | |
Signet Jewelers Ltd. | 4,838 | 317,228 | |
1,619,434 | |||
Textiles, Apparel & Luxury Goods - 0.3% | |||
PVH Corp. | 2,905 | 368,383 | |
TOTAL CONSUMER DISCRETIONARY | 14,193,353 | ||
CONSUMER STAPLES - 4.8% | |||
Beverages - 1.1% | |||
Cott Corp. | 27,406 | 410,846 | |
Molson Coors Brewing Co. Class B | 10,439 | 844,202 | |
1,255,048 | |||
Food & Staples Retailing - 0.4% | |||
CVS Health Corp. | 6,000 | 411,180 | |
Walgreens Boots Alliance, Inc. | 1,392 | 92,248 | |
503,428 | |||
Food Products - 2.8% | |||
Bunge Ltd. | 1,629 | 112,043 | |
Darling International, Inc. (a) | 46,424 | 847,238 | |
Nomad Foods Ltd. (a) | 31,112 | 469,791 | |
The J.M. Smucker Co. | 7,875 | 835,144 | |
TreeHouse Foods, Inc. (a) | 9,286 | 616,405 | |
Tyson Foods, Inc. Class A | 4,406 | 321,241 | |
3,201,862 | |||
Personal Products - 0.5% | |||
Coty, Inc. Class A | 33,349 | 513,575 | |
TOTAL CONSUMER STAPLES | 5,473,913 | ||
ENERGY - 7.6% | |||
Energy Equipment & Services - 1.2% | |||
Baker Hughes, a GE Co. Class A | 6,889 | 216,521 | |
C&J Energy Services, Inc. | 4,275 | 121,795 | |
Dril-Quip, Inc. (a) | 8,120 | 341,852 | |
Halliburton Co. | 3,029 | 129,459 | |
Nabors Industries Ltd. | 63,000 | 354,690 | |
Odfjell Drilling A/S (a) | 31,035 | 124,246 | |
TechnipFMC PLC | 3,019 | 82,690 | |
1,371,253 | |||
Oil, Gas & Consumable Fuels - 6.4% | |||
Anadarko Petroleum Corp. | 3,597 | 177,584 | |
Boardwalk Pipeline Partners, LP | 41,575 | 582,882 | |
Cabot Oil & Gas Corp. | 12,691 | 351,541 | |
Cenovus Energy, Inc. | 46,369 | 449,996 | |
Cheniere Energy, Inc. | 8,855 | 413,883 | |
Diamondback Energy, Inc. (a) | 3,171 | 339,804 | |
Energen Corp. (a) | 4,885 | 252,555 | |
Enterprise Products Partners LP | 9,408 | 230,496 | |
EQT Corp. | 11,615 | 726,402 | |
GasLog Ltd. | 24,804 | 427,869 | |
Golar LNG Ltd. | 9,600 | 202,848 | |
Lundin Petroleum AB | 18,200 | 428,061 | |
Marathon Petroleum Corp. | 9,303 | 555,761 | |
Newfield Exploration Co. (a) | 7,180 | 221,072 | |
Phillips 66 Co. | 4,388 | 399,659 | |
Plains GP Holdings LP Class A | 9,600 | 195,840 | |
Teekay Corp. | 44,000 | 356,400 | |
Teekay LNG Partners LP | 25,100 | 432,975 | |
Teekay Offshore Partners LP | 117,400 | 300,544 | |
WPX Energy, Inc. (a) | 25,601 | 288,779 | |
7,334,951 | |||
TOTAL ENERGY | 8,706,204 | ||
FINANCIALS - 16.7% | |||
Banks - 5.1% | |||
Bank Ireland Group PLC (a) | 5,627 | 43,949 | |
CIT Group, Inc. | 24,312 | 1,133,425 | |
EFG Eurobank Ergasias SA (a) | 60,916 | 49,742 | |
First Citizen Bancshares, Inc. | 1,049 | 424,845 | |
First Citizen Bancshares, Inc. Class A | 908 | 367,740 | |
PNC Financial Services Group, Inc. | 5,000 | 683,950 | |
Popular, Inc. | 4,500 | 165,060 | |
U.S. Bancorp | 28,414 | 1,545,153 | |
Wells Fargo & Co. | 24,868 | 1,396,090 | |
5,809,954 | |||
Capital Markets - 2.5% | |||
Apollo Global Management LLC Class A | 18,067 | 570,556 | |
Ares Capital Corp. | 4,898 | 78,760 | |
Brookfield Asset Management, Inc. Class A | 4,650 | 195,069 | |
Franklin Resources, Inc. | 9,350 | 393,916 | |
KKR & Co. LP | 7,594 | 152,260 | |
Legg Mason, Inc. | 16,288 | 621,876 | |
State Street Corp. | 3,800 | 349,600 | |
The Blackstone Group LP | 14,989 | 498,984 | |
2,861,021 | |||
Consumer Finance - 4.4% | |||
Ally Financial, Inc. | 13,569 | 354,558 | |
Capital One Financial Corp. | 11,330 | 1,044,399 | |
Discover Financial Services | 23,930 | 1,592,063 | |
OneMain Holdings, Inc. (a) | 17,416 | 553,306 | |
Synchrony Financial | 44,848 | 1,462,942 | |
Trisura Group Ltd. | 28 | 626 | |
5,007,894 | |||
Diversified Financial Services - 1.4% | |||
Berkshire Hathaway, Inc. Class B (a) | 6,370 | 1,190,808 | |
Donnelley Financial Solutions, Inc. | 18,650 | 400,975 | |
1,591,783 | |||
Insurance - 3.1% | |||
AFLAC, Inc. | 4,728 | 396,632 | |
AMBAC Financial Group, Inc. (a) | 19,801 | 322,360 | |
Chubb Ltd. | 6,876 | 1,037,038 | |
FNF Group | 21,310 | 797,420 | |
Greenlight Capital Re, Ltd. (a) | 6,627 | 146,125 | |
Reinsurance Group of America, Inc. | 2,877 | 429,766 | |
Torchmark Corp. | 5,448 | 458,340 | |
3,587,681 | |||
Mortgage Real Estate Investment Trusts - 0.2% | |||
MFA Financial, Inc. | 20,810 | 171,474 | |
TOTAL FINANCIALS | 19,029,807 | ||
HEALTH CARE - 6.2% | |||
Biotechnology - 1.2% | |||
Amgen, Inc. | 3,789 | 663,909 | |
Shire PLC sponsored ADR | 2,100 | 310,023 | |
United Therapeutics Corp. (a) | 3,510 | 416,251 | |
1,390,183 | |||
Health Care Equipment & Supplies - 0.8% | |||
Dentsply Sirona, Inc. | 1,490 | 90,994 | |
Hill-Rom Holdings, Inc. | 160 | 12,914 | |
Hologic, Inc. (a) | 880 | 33,308 | |
Steris PLC | 1,150 | 107,330 | |
Teleflex, Inc. | 500 | 118,490 | |
Zimmer Biomet Holdings, Inc. | 4,439 | 539,871 | |
902,907 | |||
Health Care Providers & Services - 2.1% | |||
Cardinal Health, Inc. | 3,149 | 194,923 | |
Centene Corp. (a) | 1,230 | 115,214 | |
DaVita HealthCare Partners, Inc. (a) | 1,133 | 68,818 | |
Envision Healthcare Corp. | 13,241 | 564,067 | |
Laboratory Corp. of America Holdings (a) | 2,943 | 452,369 | |
McKesson Corp. | 2,848 | 392,682 | |
Patterson Companies, Inc. | 900 | 33,300 | |
Quest Diagnostics, Inc. | 1,638 | 153,612 | |
Universal Health Services, Inc. Class B | 4,705 | 483,204 | |
2,458,189 | |||
Life Sciences Tools & Services - 0.1% | |||
Bio-Rad Laboratories, Inc. Class A (a) | 220 | 48,354 | |
Quintiles Transnational Holdings, Inc. (a) | 200 | 21,620 | |
69,974 | |||
Pharmaceuticals - 2.0% | |||
Allergan PLC | 1,600 | 283,568 | |
Indivior PLC (a) | 51,200 | 252,693 | |
Jazz Pharmaceuticals PLC (a) | 7,142 | 1,010,807 | |
Mallinckrodt PLC (a) | 11,889 | 376,525 | |
Mylan N.V. (a) | 4,250 | 151,768 | |
Perrigo Co. PLC | 640 | 51,834 | |
The Medicines Company (a) | 3,700 | 106,338 | |
2,233,533 | |||
TOTAL HEALTH CARE | 7,054,786 | ||
INDUSTRIALS - 12.1% | |||
Aerospace & Defense - 1.2% | |||
Aerojet Rocketdyne Holdings, Inc. (a) | 12,505 | 394,908 | |
Huntington Ingalls Industries, Inc. | 1,700 | 395,811 | |
KLX, Inc. (a) | 5,891 | 323,180 | |
Ultra Electronics Holdings PLC | 8,300 | 201,071 | |
1,314,970 | |||
Air Freight & Logistics - 0.0% | |||
C.H. Robinson Worldwide, Inc. | 36 | 2,827 | |
Airlines - 1.8% | |||
American Airlines Group, Inc. | 22,567 | 1,056,587 | |
JetBlue Airways Corp. (a) | 35,500 | 679,825 | |
United Continental Holdings, Inc. (a) | 4,600 | 269,008 | |
2,005,420 | |||
Building Products - 0.2% | |||
Allegion PLC | 2,176 | 181,457 | |
Commercial Services & Supplies - 0.6% | |||
IWG PLC | 104,081 | 297,759 | |
KAR Auction Services, Inc. | 9,109 | 431,129 | |
728,888 | |||
Construction & Engineering - 2.1% | |||
AECOM (a) | 24,630 | 863,528 | |
Arcadis NV | 12,465 | 288,219 | |
Astaldi SpA | 44,638 | 309,380 | |
KBR, Inc. | 45,836 | 899,761 | |
2,360,888 | |||
Electrical Equipment - 1.1% | |||
AMETEK, Inc. | 4,015 | 270,972 | |
Fortive Corp. | 2,269 | 163,958 | |
Regal Beloit Corp. | 5,566 | 451,681 | |
Sensata Technologies Holding BV (a) | 7,107 | 347,603 | |
1,234,214 | |||
Machinery - 1.0% | |||
Allison Transmission Holdings, Inc. | 16,735 | 711,070 | |
SPX Flow, Inc. (a) | 11,707 | 482,680 | |
1,193,750 | |||
Road & Rail - 1.3% | |||
Avis Budget Group, Inc. (a) | 21,196 | 874,335 | |
CSX Corp. | 2,280 | 114,980 | |
Norfolk Southern Corp. | 1,811 | 238,002 | |
Swift Transporation Co. (a) | 6,455 | 267,560 | |
1,494,877 | |||
Trading Companies & Distributors - 2.8% | |||
AerCap Holdings NV (a) | 11,961 | 629,627 | |
Ashtead Group PLC | 19,328 | 498,007 | |
Fortress Transportation & Infrastructure Investors LLC | 17,328 | 315,889 | |
HD Supply Holdings, Inc. (a) | 21,359 | 755,895 | |
Nexeo Solutions, Inc. (a) | 27,100 | 200,269 | |
Nexeo Solutions, Inc. (a)(c) | 14,400 | 106,416 | |
WESCO International, Inc. (a) | 11,576 | 731,024 | |
3,237,127 | |||
TOTAL INDUSTRIALS | 13,754,418 | ||
INFORMATION TECHNOLOGY - 7.6% | |||
Communications Equipment - 1.1% | |||
CommScope Holding Co., Inc. (a) | 23,931 | 769,142 | |
F5 Networks, Inc. (a) | 3,680 | 446,274 | |
1,215,416 | |||
Electronic Equipment & Components - 1.4% | |||
Avnet, Inc. | 3,547 | 141,171 | |
Cardtronics PLC (a) | 14,867 | 340,454 | |
Jabil, Inc. | 21,234 | 600,498 | |
TE Connectivity Ltd. | 6,139 | 558,465 | |
1,640,588 | |||
IT Services - 4.1% | |||
Amdocs Ltd. | 13,480 | 877,548 | |
Cognizant Technology Solutions Corp. Class A | 11,920 | 901,986 | |
Conduent, Inc. | 31,197 | 482,930 | |
DXC Technology Co. | 8,387 | 767,578 | |
First Data Corp. Class A (a) | 22,051 | 392,728 | |
Leidos Holdings, Inc. | 9,120 | 570,182 | |
Total System Services, Inc. | 6,650 | 479,133 | |
Unisys Corp. (a)(b) | 26,048 | 227,920 | |
4,700,005 | |||
Semiconductors & Semiconductor Equipment - 0.6% | |||
Qualcomm, Inc. | 13,713 | 699,500 | |
Software - 0.4% | |||
Micro Focus International PLC | 11,300 | 396,964 | |
Totvs SA | 7,400 | 73,699 | |
470,663 | |||
TOTAL INFORMATION TECHNOLOGY | 8,726,172 | ||
MATERIALS - 8.8% | |||
Chemicals - 5.0% | |||
Axalta Coating Systems (a) | 19,700 | 655,025 | |
Celanese Corp. Class A | 2,539 | 264,843 | |
CF Industries Holdings, Inc. | 12,110 | 459,938 | |
DowDuPont, Inc. | 9,326 | 674,363 | |
Eastman Chemical Co. | 6,319 | 573,828 | |
FMC Corp. | 2,164 | 200,949 | |
LyondellBasell Industries NV Class A | 7,926 | 820,579 | |
Monsanto Co. | 2,800 | 339,080 | |
PPG Industries, Inc. | 1,548 | 179,940 | |
The Chemours Co. LLC | 9,356 | 529,643 | |
Tronox Ltd. Class A | 11,000 | 291,170 | |
Westlake Chemical Corp. | 7,762 | 659,071 | |
5,648,429 | |||
Construction Materials - 0.5% | |||
Eagle Materials, Inc. | 5,823 | 614,734 | |
Containers & Packaging - 2.4% | |||
Avery Dennison Corp. | 1,994 | 211,703 | |
Ball Corp. | 17,552 | 753,507 | |
Berry Global Group, Inc. (a) | 6,549 | 389,338 | |
Graphic Packaging Holding Co. | 41,123 | 636,995 | |
Sealed Air Corp. | 10,186 | 450,527 | |
Silgan Holdings, Inc. | 9,955 | 291,184 | |
2,733,254 | |||
Metals & Mining - 0.7% | |||
Alcoa Corp. | 3,873 | 185,052 | |
Antofagasta PLC | 6,562 | 83,188 | |
Randgold Resources Ltd. sponsored ADR | 2,074 | 203,812 | |
Steel Dynamics, Inc. | 7,353 | 273,605 | |
745,657 | |||
Paper & Forest Products - 0.2% | |||
Kapstone Paper & Packaging Corp. | 11,900 | 267,274 | |
TOTAL MATERIALS | 10,009,348 | ||
REAL ESTATE - 12.1% | |||
Equity Real Estate Investment Trusts (REITs) - 11.2% | |||
American Tower Corp. | 10,259 | 1,473,911 | |
AvalonBay Communities, Inc. | 2,270 | 411,619 | |
Boston Properties, Inc. | 2,660 | 322,339 | |
Colony NorthStar, Inc. | 96,346 | 1,183,129 | |
Corporate Office Properties Trust (SBI) | 15,606 | 498,300 | |
Douglas Emmett, Inc. | 15,043 | 598,561 | |
Equinix, Inc. | 1,175 | 544,613 | |
Equity Commonwealth (a) | 900 | 27,045 | |
Equity Lifestyle Properties, Inc. | 11,582 | 1,024,775 | |
Equity Residential (SBI) | 6,290 | 423,065 | |
Essex Property Trust, Inc. | 3,027 | 794,376 | |
Extra Space Storage, Inc. | 9,115 | 743,693 | |
Forest City Realty Trust, Inc. Class A | 14,070 | 346,544 | |
General Growth Properties, Inc. | 31,500 | 612,990 | |
Grivalia Properties REIC | 52,342 | 545,687 | |
iStar Financial, Inc. (a) | 32,965 | 385,691 | |
Lamar Advertising Co. Class A | 3,942 | 277,674 | |
National Retail Properties, Inc. | 16,073 | 645,813 | |
NorthStar Realty Europe Corp. | 2,424 | 32,651 | |
Outfront Media, Inc. | 25,291 | 593,074 | |
Public Storage | 720 | 149,220 | |
SBA Communications Corp. Class A (a) | 296 | 46,525 | |
Simon Property Group, Inc. | 520 | 80,772 | |
Spirit Realty Capital, Inc. | 43,800 | 363,978 | |
VEREIT, Inc. | 25,040 | 197,566 | |
Welltower, Inc. | 3,090 | 206,906 | |
WP Glimcher, Inc. | 28,530 | 223,390 | |
12,753,907 | |||
Real Estate Management & Development - 0.9% | |||
CBRE Group, Inc. (a) | 18,708 | 735,599 | |
Kennedy-Wilson Holdings, Inc. | 2,253 | 43,821 | |
Realogy Holdings Corp. | 9,344 | 302,092 | |
1,081,512 | |||
TOTAL REAL ESTATE | 13,835,419 | ||
TELECOMMUNICATION SERVICES - 0.2% | |||
Diversified Telecommunication Services - 0.2% | |||
Iridium Communications, Inc. (a)(b) | 104 | 1,248 | |
Level 3 Communications, Inc. | 4,691 | 251,578 | |
252,826 | |||
UTILITIES - 8.2% | |||
Electric Utilities - 4.7% | |||
Alliant Energy Corp. | 9,182 | 397,213 | |
Edison International | 20,728 | 1,657,204 | |
Exelon Corp. | 6,066 | 243,914 | |
NextEra Energy, Inc. | 2,348 | 364,104 | |
PG&E Corp. | 14,179 | 819,121 | |
Xcel Energy, Inc. | 38,306 | 1,896,913 | |
5,378,469 | |||
Independent Power and Renewable Electricity Producers - 1.0% | |||
NRG Energy, Inc. | 19,030 | 475,750 | |
The AES Corp. | 63,063 | 670,360 | |
1,146,110 | |||
Multi-Utilities - 2.5% | |||
CMS Energy Corp. | 8,587 | 415,353 | |
Public Service Enterprise Group, Inc. | 9,150 | 450,180 | |
Sempra Energy | 17,174 | 2,017,940 | |
2,883,473 | |||
TOTAL UTILITIES | 9,408,052 | ||
TOTAL COMMON STOCKS | |||
(Cost $94,778,909) | 110,444,298 | ||
Nonconvertible Preferred Stocks - 0.0% | |||
INDUSTRIALS - 0.0% | |||
Aerospace & Defense - 0.0% | |||
Rolls-Royce Holdings PLC (C Shares) | |||
(Cost $757) | 617,780 | 821 | |
Principal Amount | Value | ||
Convertible Bonds - 0.1% | |||
ENERGY - 0.1% | |||
Oil, Gas & Consumable Fuels - 0.1% | |||
Cobalt International Energy, Inc. 2.625% 12/1/19 | |||
(Cost $390,949) | 640,000 | 89,600 | |
U.S. Treasury Obligations - 0.1% | |||
U.S. Treasury Bills, yield at date of purchase 1.02% to 1.05% 11/9/17 to 12/28/17 (d) | |||
(Cost $149,826) | 150,000 | 149,831 | |
Shares | Value | ||
Money Market Funds - 4.0% | |||
Fidelity Cash Central Fund, 1.10% (e) | 3,639,629 | $3,640,357 | |
Fidelity Securities Lending Cash Central Fund 1.11% (e)(f) | 912,629 | 912,720 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $4,552,866) | 4,553,077 | ||
TOTAL INVESTMENT IN SECURITIES - 100.9% | |||
(Cost $99,873,307) | 115,237,627 | ||
NET OTHER ASSETS (LIABILITIES) - (0.9)% | (974,854) | ||
NET ASSETS - 100% | $114,262,773 |
Futures Contracts | |||||
Number of contracts | Expiration Date | Notional Amount | Value | Unrealized Appreciation/(Depreciation) | |
Purchased | |||||
Equity Index Contracts | |||||
CME E-mini S&P MidCap 400 Index Contracts (United States) | 6 | Dec. 2017 | $1,100,340 | $8,270 | $8,270 |
The notional amount of futures purchased as a percentage of Net Assets is 1.0%
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $106,416 or 0.1% of net assets.
(d) 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 $149,831.
(e) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(f) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost |
Nexeo Solutions, Inc. | 6/9/16 | $144,000 |
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $26,797 |
Fidelity Securities Lending Cash Central Fund | 7,828 |
Total | $34,625 |
Investment Valuation
The following is a summary of the inputs used, as of October 31, 2017, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Consumer Discretionary | $14,193,353 | $14,193,353 | $-- | $-- |
Consumer Staples | 5,473,913 | 5,473,913 | -- | -- |
Energy | 8,706,204 | 8,706,204 | -- | -- |
Financials | 19,029,807 | 19,029,807 | -- | -- |
Health Care | 7,054,786 | 7,054,786 | -- | -- |
Industrials | 13,755,239 | 13,755,239 | -- | -- |
Information Technology | 8,726,172 | 8,726,172 | -- | -- |
Materials | 10,009,348 | 10,009,348 | -- | -- |
Real Estate | 13,835,419 | 13,835,419 | -- | -- |
Telecommunication Services | 252,826 | 252,826 | -- | -- |
Utilities | 9,408,052 | 9,408,052 | -- | -- |
Corporate Bonds | 89,600 | -- | 89,600 | -- |
U.S. Government and Government Agency Obligations | 149,831 | -- | 149,831 | -- |
Money Market Funds | 4,553,077 | 4,553,077 | -- | -- |
Total Investments in Securities: | $115,237,627 | $114,998,196 | $239,431 | $-- |
Derivative Instruments: | ||||
Assets | ||||
Futures Contracts | $8,270 | $8,270 | $-- | $-- |
Total Assets | $8,270 | $8,270 | $-- | $-- |
Total Derivative Instruments: | $8,270 | $8,270 | $-- | $-- |
Value of Derivative Instruments
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of October 31, 2017. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.
Primary Risk Exposure / Derivative Type | Value | |
Asset | Liability | |
Equity Risk | ||
Futures Contracts(a) | $8,270 | $0 |
Total Equity Risk | 8,270 | 0 |
Total Value of Derivatives | $8,270 | $0 |
(a) Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. In the Statement of Assets and Liabilities, the period end daily variation margin is included in receivable or payable for daily variation margin on futures contracts, and the net cumulative appreciation (depreciation) is included in net unrealized appreciation (depreciation).
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 84.4% |
United Kingdom | 2.1% |
Netherlands | 1.8% |
Ireland | 1.8% |
Bailiwick of Jersey | 1.4% |
Switzerland | 1.4% |
Bermuda | 1.3% |
Marshall Islands | 1.0% |
Canada | 1.0% |
Others (Individually Less Than 1%) | 3.8% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
October 31, 2017 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $894,715) See accompanying schedule: Unaffiliated issuers (cost $95,320,441) | $110,684,550 | |
Fidelity Central Funds (cost $4,552,866) | 4,553,077 | |
Total Investment in Securities (cost $99,873,307) | $115,237,627 | |
Cash | 79,457 | |
Foreign currency held at value (cost $25,659) | 25,671 | |
Receivable for investments sold | 903,188 | |
Receivable for fund shares sold | 126,697 | |
Dividends receivable | 53,402 | |
Interest receivable | 7,023 | |
Distributions receivable from Fidelity Central Funds | 5,810 | |
Receivable for daily variation margin on futures contracts | 5,460 | |
Prepaid expenses | 247 | |
Other receivables | 3,006 | |
Total assets | 116,447,588 | |
Liabilities | ||
Payable for investments purchased | $548,337 | |
Payable for fund shares redeemed | 557,167 | |
Accrued management fee | 44,763 | |
Distribution and service plan fees payable | 37,739 | |
Other affiliated payables | 23,383 | |
Other payables and accrued expenses | 60,801 | |
Collateral on securities loaned | 912,625 | |
Total liabilities | 2,184,815 | |
Net Assets | $114,262,773 | |
Net Assets consist of: | ||
Paid in capital | $96,200,719 | |
Undistributed net investment income | 707,844 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 1,982,001 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 15,372,209 | |
Net Assets | $114,262,773 | |
Calculation of Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($59,657,641 ÷ 2,351,263 shares) | $25.37 | |
Maximum offering price per share (100/94.25 of $25.37) | $26.92 | |
Class M: | ||
Net Asset Value and redemption price per share ($18,961,650 ÷ 755,328 shares) | $25.10 | |
Maximum offering price per share (100/96.50 of $25.10) | $26.01 | |
Class C: | ||
Net Asset Value and offering price per share ($20,554,924 ÷ 855,834 shares)(a) | $24.02 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($14,564,902 ÷ 567,891 shares) | $25.65 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($523,656 ÷ 20,401 shares) | $25.67 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Year ended October 31, 2017 | ||
Investment Income | ||
Dividends | $1,906,014 | |
Special dividends | 301,000 | |
Interest | 91,549 | |
Income from Fidelity Central Funds | 34,625 | |
Total income | 2,333,188 | |
Expenses | ||
Management fee | ||
Basic fee | $616,852 | |
Performance adjustment | (130,909) | |
Transfer agent fees | 252,542 | |
Distribution and service plan fees | 430,425 | |
Accounting and security lending fees | 44,099 | |
Custodian fees and expenses | 62,159 | |
Independent trustees' fees and expenses | 448 | |
Registration fees | 84,828 | |
Audit | 70,364 | |
Legal | 7,121 | |
Miscellaneous | 1,077 | |
Total expenses before reductions | 1,439,006 | |
Expense reductions | (23,201) | 1,415,805 |
Net investment income (loss) | 917,383 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 6,238,688 | |
Fidelity Central Funds | 195 | |
Foreign currency transactions | 1,381 | |
Futures contracts | 142,294 | |
Total net realized gain (loss) | 6,382,558 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 12,169,507 | |
Fidelity Central Funds | (638) | |
Assets and liabilities in foreign currencies | (189) | |
Futures contracts | 14,035 | |
Total change in net unrealized appreciation (depreciation) | $12,182,715 | |
Net gain (loss) | 18,565,273 | |
Net increase (decrease) in net assets resulting from operations | $19,482,656 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Year ended October 31, 2017 | Year ended October 31, 2016 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $917,383 | $904,182 |
Net realized gain (loss) | 6,382,558 | (4,125,577) |
Change in net unrealized appreciation (depreciation) | 12,182,715 | 5,667,371 |
Net increase (decrease) in net assets resulting from operations | 19,482,656 | 2,445,976 |
Distributions to shareholders from net investment income | (582,647) | (403,934) |
Distributions to shareholders from net realized gain | (29,178) | (1,698,817) |
Total distributions | (611,825) | (2,102,751) |
Share transactions - net increase (decrease) | (8,709,189) | 7,623,081 |
Total increase (decrease) in net assets | 10,161,642 | 7,966,306 |
Net Assets | ||
Beginning of period | 104,101,131 | 96,134,825 |
End of period | $114,262,773 | $104,101,131 |
Other Information | ||
Undistributed net investment income end of period | $707,844 | $425,372 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Advisor Value Fund Class A
Years ended October 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected PerShare Data | |||||
Net asset value, beginning of period | $21.43 | $21.39 | $21.48 | $18.90 | $14.08 |
Income from Investment Operations | |||||
Net investment income (loss)A | .23B | .22 | .12 | .09 | .11 |
Net realized and unrealized gain (loss) | 3.86 | .30 | (.14)C | 2.58 | 4.82 |
Total from investment operations | 4.09 | .52 | (.02) | 2.67 | 4.93 |
Distributions from net investment income | (.14) | (.11) | (.05) | (.04) | (.11) |
Distributions from net realized gain | (.01) | (.37) | (.02) | (.04) | |
Total distributions | (.15) | (.48) | (.07) | (.09)D | (.11) |
Net asset value, end of period | $25.37 | $21.43 | $21.39 | $21.48 | $18.90 |
Total ReturnE,F | 19.12% | 2.53% | (.12)%C | 14.15% | 35.30% |
Ratios to Average Net AssetsG,H | |||||
Expenses before reductions | 1.14% | 1.19% | 1.31% | 1.29% | 1.31% |
Expenses net of fee waivers, if any | 1.12% | 1.19% | 1.25% | 1.25% | 1.25% |
Expenses net of all reductions | 1.12% | 1.18% | 1.24% | 1.25% | 1.23% |
Net investment income (loss) | .95%B | 1.06% | .53% | .42% | .69% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $59,658 | $54,196 | $50,858 | $45,759 | $38,397 |
Portfolio turnover rateI | 81% | 77% | 82% | 78% | 103% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .68%.
C Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.01 per share. Excluding these litigation proceeds, the total return would have been (.17)%.
D Total distributions of $.09 per share is comprised of distributions from net investment income of $.041 and distributions from net realized gain of $.044 per share.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Value Fund Class M
Years ended October 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected PerShare Data | |||||
Net asset value, beginning of period | $21.22 | $21.17 | $21.27 | $18.72 | $13.95 |
Income from Investment Operations | |||||
Net investment income (loss)A | .16B | .16 | .06 | .03 | .07 |
Net realized and unrealized gain (loss) | 3.82 | .31 | (.15)C | 2.56 | 4.78 |
Total from investment operations | 3.98 | .47 | (.09) | 2.59 | 4.85 |
Distributions from net investment income | (.09) | (.05) | | | (.08) |
Distributions from net realized gain | (.01) | (.37) | (.01) | (.04) | |
Total distributions | (.10) | (.42) | (.01) | (.04) | (.08) |
Net asset value, end of period | $25.10 | $21.22 | $21.17 | $21.27 | $18.72 |
Total ReturnD,E | 18.78% | 2.28% | (.43)%C | 13.88% | 34.94% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | 1.40% | 1.47% | 1.58% | 1.57% | 1.58% |
Expenses net of fee waivers, if any | 1.39% | 1.46% | 1.50% | 1.50% | 1.50% |
Expenses net of all reductions | 1.38% | 1.46% | 1.49% | 1.50% | 1.48% |
Net investment income (loss) | .68%B | .78% | .28% | .17% | .44% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $18,962 | $18,098 | $17,300 | $18,558 | $17,319 |
Portfolio turnover rateH | 81% | 77% | 82% | 78% | 103% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .41%.
C Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.01 per share. Excluding these litigation proceeds, the total return would have been (.48)%.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Value Fund Class C
Years ended October 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected PerShare Data | |||||
Net asset value, beginning of period | $20.32 | $20.35 | $20.54 | $18.13 | $13.51 |
Income from Investment Operations | |||||
Net investment income (loss)A | .03B | .05 | (.05) | (.07) | (.01) |
Net realized and unrealized gain (loss) | 3.67 | .29 | (.13)C | 2.48 | 4.64 |
Total from investment operations | 3.70 | .34 | (.18) | 2.41 | 4.63 |
Distributions from net investment income | | | | | (.01) |
Distributions from net realized gain | | (.37) | (.01) | | |
Total distributions | | (.37) | (.01) | | (.01) |
Net asset value, end of period | $24.02 | $20.32 | $20.35 | $20.54 | $18.13 |
Total ReturnD,E | 18.21% | 1.72% | (.89)%C | 13.29% | 34.32% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | 1.94% | 1.98% | 2.09% | 2.06% | 2.08% |
Expenses net of fee waivers, if any | 1.92% | 1.97% | 2.00% | 2.00% | 2.00% |
Expenses net of all reductions | 1.92% | 1.97% | 1.99% | 2.00% | 1.98% |
Net investment income (loss) | .15%B | .27% | (.22)% | (.33)% | (.06)% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $20,555 | $15,589 | $16,670 | $17,390 | $14,354 |
Portfolio turnover rateH | 81% | 77% | 82% | 78% | 103% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.12) %.
C Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.01 per share. Excluding these litigation proceeds, the total return would have been (.94)%.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the contingent deferred sales charge.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Value Fund Class I
Years ended October 31, | 2017 | 2016 | 2015 | 2014 | 2013 |
Selected PerShare Data | |||||
Net asset value, beginning of period | $21.65 | $21.60 | $21.70 | $19.09 | $14.22 |
Income from Investment Operations | |||||
Net investment income (loss)A | .30B | .28 | .17 | .14 | .16 |
Net realized and unrealized gain (loss) | 3.91 | .31 | (.14)C | 2.60 | 4.86 |
Total from investment operations | 4.21 | .59 | .03 | 2.74 | 5.02 |
Distributions from net investment income | (.20) | (.17) | (.11) | (.09) | (.15) |
Distributions from net realized gain | (.01) | (.37) | (.02) | (.04) | |
Total distributions | (.21) | (.54) | (.13) | (.13) | (.15) |
Net asset value, end of period | $25.65 | $21.65 | $21.60 | $21.70 | $19.09 |
Total ReturnD | 19.54% | 2.82% | .13%C | 14.46% | 35.65% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | .84% | .89% | 1.00% | .97% | .96% |
Expenses net of fee waivers, if any | .82% | .89% | 1.00% | .97% | .96% |
Expenses net of all reductions | .82% | .89% | .99% | .97% | .94% |
Net investment income (loss) | 1.25%B | 1.36% | .78% | .69% | .98% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $14,565 | $16,218 | $10,391 | $10,011 | $6,405 |
Portfolio turnover rateG | 81% | 77% | 82% | 78% | 103% |
A Calculated based on average shares outstanding during the period.
B Net Investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .98%.
C Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.01 per share. Excluding these litigation proceeds, the total return would have been .08%.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Value Fund Class Z
Years ended October 31, | 2017 A |
Selected PerShare Data | |
Net asset value, beginning of period | $23.57 |
Income from Investment Operations | |
Net investment income (loss)B | .23C |
Net realized and unrealized gain (loss) | 1.87 |
Total from investment operations | 2.10 |
Distributions from net investment income | |
Distributions from net realized gain | |
Total distributions | |
Net asset value, end of period | $25.67 |
Total ReturnD,E | 8.91% |
Ratios to Average Net AssetsF,G | |
Expenses before reductions | .72%H |
Expenses net of fee waivers, if any | .72%H |
Expenses net of all reductions | .71%H |
Net investment income (loss) | 1.24%C,H |
Supplemental Data | |
Net assets, end of period (000 omitted) | $524 |
Portfolio turnover rateI | 81% |
A For the period February 1, 2017 (commencement of sale of shares) to October 31, 2017.
B Calculated based on average shares outstanding during the period.
C Net 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 .97%.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. 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.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended October 31, 2017
1. Organization.
Fidelity Advisor Value 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 commenced sale of Class Z shares on February 1, 2017. The Fund offers Class A, Class M (formerly Class T), Class C, Class I and Class Z shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.
After the close of business on June 24, 2016, all outstanding Class B shares were converted to Class A shares. All prior fiscal period dollar and share amounts for Class B presented in the Notes to Financial Statements are for the period November 1, 2015 through June 24, 2016.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds and 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 October 31, 2017 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 includes 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. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. 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. As of October 31, 2017, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to futures contracts, foreign currency transactions, passive foreign investment companies (PFIC), market discount, partnerships, capital loss carryforwards and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
Gross unrealized appreciation | $19,886,509 |
Gross unrealized depreciation | (5,036,976) |
Net unrealized appreciation (depreciation) | $14,849,533 |
Tax Cost | $100,388,094 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $3,212,683 |
Net unrealized appreciation (depreciation) on securities and other investments | $14,849,371 |
The tax character of distributions paid was as follows:
October 31, 2017 | October 31, 2016 | |
Ordinary Income | $611,825 | $ 403,933 |
Long-term Capital Gains | | 1,698,818 |
Total | $611,825 | $ 2,102,751 |
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
The Fund used derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
The Fund's use of derivatives increased or decreased its exposure to the following risk:
Equity Risk | Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be 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 on futures contracts in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract. The net realized gain (loss) and change in net unrealized appreciation (depreciation) on futures contracts during the period is presented in the Statement of Operations.
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts". The notional 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.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $88,337,849 and $97,148,294, 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 Class I of the Fund as compared to its benchmark index, the Russell Midcap Value Index, over the same 36 month performance period. For the reporting period, the total annual management fee rate, including the performance adjustment, was .43% 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 Fee | Service Fee | Total Fees | Retained by FDC |
|
Class A | -% | .25% | $145,958 | $2,674 |
Class M | .25% | .25% | 98,624 | |
Class C | .75% | .25% | 185,843 | 20,473 |
$430,425 | $23,147 |
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 M 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 M and Class C redemptions. The deferred sales charges are 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class M shares.
For the period, sales charge amounts retained by FDC were as follows:
Retained by FDC |
|
Class A | $10,746 |
Class M | 2,185 |
Class C(a) | 1,143 |
$14,074 |
(a) When 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-Level Average Net Assets |
|
Class A | $128,413 | .22 |
Class M | 46,533 | .24 |
Class C | 49,733 | .27 |
Class I | 27,791 | .17 |
Class Z | 72 | .05(a) |
$252,542 |
(a) 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 $3,651 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $4,935.
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 $361 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
8. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $84,558. 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 $7,828, including $6 from securities loaned to FCM.
9. Expense Reductions.
The investment adviser voluntarily agreed to reimburse a portion of the Fund's Class A, Class M, Class C and Class I operating expenses. During the period, this reimbursement reduced expenses as follows:
Reimbursement | |
Class A | $8,631 |
Class M | 2,881 |
Class C | 2,778 |
Class I | 2,685 |
$16,975 |
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 $5,188 for the period.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $1,038.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Year ended October 31, 2017 | Year ended October 31, 2016 | |
From net investment income | ||
Class A | $349,954 | $271,815 |
Class M | 78,611 | 40,168 |
Class I | 154,082 | 91,951 |
Total | $582,647 | $403,934 |
From net realized gain | ||
Class A | $17,751 | $882,206 |
Class M | 6,114 | 297,241 |
Class B | | 16,135 |
Class C | | 301,923 |
Class I | 5,313 | 201,312 |
Total | $29,178 | $1,698,817 |
11. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Year ended October 31, 2017(a) | Year ended October 31, 2016 | Year ended October 31, 2017(a) | Year ended October 31, 2016 | |
Class A | ||||
Shares sold | 765,473 | 824,070 | $18,343,045 | $16,976,958 |
Reinvestment of distributions | 15,497 | 54,608 | 360,454 | 1,132,015 |
Shares redeemed | (958,773) | (727,383) | (23,014,248) | (14,850,569) |
Net increase (decrease) | (177,803) | 151,295 | $(4,310,749) | $3,258,404 |
Class M | ||||
Shares sold | 119,030 | 192,081 | $2,790,662 | $4,011,968 |
Reinvestment of distributions | 3,578 | 16,080 | 82,555 | 330,767 |
Shares redeemed | (220,310) | (172,188) | (5,274,080) | (3,484,722) |
Net increase (decrease) | (97,702) | 35,973 | $(2,400,863) | $858,013 |
Class B | ||||
Shares sold | | 995 | $ | $19,938 |
Reinvestment of distributions | | 769 | | 15,282 |
Shares redeemed | | (46,605) | | (903,723) |
Net increase (decrease) | | (44,841) | $ | $(868,503) |
Class C | ||||
Shares sold | 348,523 | 175,956 | $7,912,553 | $3,455,624 |
Reinvestment of distributions | | 14,372 | | 284,567 |
Shares redeemed | (259,820) | (242,360) | (5,896,612) | (4,738,320) |
Net increase (decrease) | 88,703 | (52,032) | $2,015,941 | $(998,129) |
Class I | ||||
Shares sold | 323,944 | 475,169 | $7,840,510 | $9,727,941 |
Reinvestment of distributions | 5,728 | 12,080 | 134,330 | 252,359 |
Shares redeemed | (510,727) | (219,416) | (12,490,419) | (4,607,004) |
Net increase (decrease) | (181,055) | 267,833 | $(4,515,579) | $5,373,296 |
Class Z | ||||
Shares sold | 20,406 | | $502,183 | $ |
Shares redeemed | (5) | | (122) | |
Net increase (decrease) | 20,401 | | $502,061 | $ |
(a) Share transactions for Class Z are for the period February 1, 2017 (commencement of sale of shares) to October 31, 2017.
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.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Advisor Series I and Shareholders of Fidelity Advisor Value Fund:
We have audited the accompanying statement of assets and liabilities of Fidelity Advisor Value Fund (the Fund), a fund of Fidelity Advisor Series I, including the schedule of investments, as of October 31, 2017, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2017, by correspondence with the custodians and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Fidelity Advisor Value Fund as of October 31, 2017, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
December 13, 2017
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Each of the Trustees oversees 190 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The funds Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and sector funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. For example, a working group comprised of Independent Trustees and FMR has worked and continues to work to review the Fidelity® funds' valuation-related activities, reporting and risk management. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-present), and Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the board of Artis-Naples, Naples, Florida, and as a Trustee for Brewster Academy, Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
Charles S. Morrison (1960)
Year of Election or Appointment: 2014
Trustee
Mr. Morrison also serves as Trustee of other funds. He serves as President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present), a Director of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2014-present), Director of Fidelity SelectCo, LLC (investment adviser firm, 2014-present), President, Asset Management (2014-present), and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Fixed Income and Asset Allocation Funds (2012-2014), President, Fixed Income (2011-2014), Vice President of Fidelity's Money Market Funds (2005-2009), President, Money Market Group Leader of FMR (investment adviser firm, 2009), and Senior Vice President, Money Market Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President (2002-2005) of Fidelity's Bond Division.
* Determined to be an Interested Trustee by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Childrens Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present) and Board of Directors (2017-present) of the Asolo Repertory Theatre.
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Busters Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Vice Chair of the Board of Governors, State University System of Florida (2013-present) and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-present) and the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007) and of Arcadia Resources Inc. (health care services and products, 2007-2012).
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
William S. Stavropoulos (1939)
Year of Election or Appointment: 2002
Trustee
Vice Chairman of the Independent Trustees
Mr. Stavropoulos also serves as Trustee of other Fidelity® funds. Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is Chairman of the Board of Directors of Univar Inc. (global distributor of commodity and specialty chemicals), a Director of Teradata Corporation (data warehousing and technology solutions), and a member of the Advisory Board for Metalmark Capital LLC (private equity investment, 2005-present). Mr. Stavropoulos is an operating advisor to Clayton, Dubilier & Rice, LLC (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science, a Trustee of the Rollin L. Gerstacker Foundation, and a Director of Artis-Naples in Naples, Florida. Previously, Mr. Stavropoulos served as a Director of Chemical Financial Corporation (bank holding company, 1993-2012) and Tyco International, Ltd. (multinational manufacturing and services, 2007-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present), as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication), and as a member of the Board of Trustees of the University of Florida (2013-present). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), and a Director of Fortune Brands, Inc. (consumer products, 2000-2011).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
Marc R. Bryant (1966)
Year of Election or Appointment: 2015
Secretary and Chief Legal Officer (CLO)
Mr. Bryant also serves as Secretary and CLO of other funds. Mr. Bryant serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company (investment adviser firm, 2015-present) and FMR Co., Inc. (investment adviser firm, 2015-present); Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2015-present) and Fidelity Investments Money Management, Inc. (investment adviser firm, 2015-present); and CLO of Fidelity Management & Research (Hong Kong) Limited and FMR Investment Management (UK) Limited (investment adviser firms, 2015-present) and Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and CLO of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006).
William C. Coffey (1969)
Year of Election or Appointment: 2009
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds, and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Stephanie J. Dorsey (1969)
Year of Election or Appointment: 2010
Assistant Treasurer
Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank.
Howard J. Galligan III (1966)
Year of Election or Appointment: 2014
Chief Financial Officer
Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (investment adviser firm, 2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011).
Thomas C. Hense (1964)
Year of Election or Appointment: 2008, 2010, or 2015
Vice President
Mr. Hense serves as Vice President of Fidelity Advisor® Multi-Asset Income Fund (2015) and other funds (High Income (2008), Small Cap (2008), and Value (2010) funds), and is an employee of Fidelity Investments (1993-present). Previously, Mr. Hense served as a portfolio manager for Fidelity's Institutional Money Management Group (Pyramis) (2003-2008).
Brian B. Hogan (1964)
Year of Election or Appointment: 2009
Vice President
Mr. Hogan also serves as Trustee or Vice President of other funds. Mr. Hogan serves as a Director of FMR Investment Management (UK) Limited (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present) and President of the Equity Division of FMR (investment adviser firm, 2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager. Mr. Brian B. Hogan is not related to Mr. Colm A. Hogan.
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan is an employee of Fidelity Investments (2005-present). Mr. Colm A. Hogan is not related to Mr. Brian B. Hogan.
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Rieco E. Mello (1969)
Year of Election or Appointment: 2017
Assistant Treasurer
Mr. Mello also serves as Assistant Treasurer of other funds. Mr. Mello is an employee of Fidelity Investments (1995-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Renee Stagnone (1975)
Year of Election or Appointment: 2016
Assistant Treasurer
Ms. Stagnone also serves as an officer of other funds. Ms. Stagnone is an employee of Fidelity Investments (1997-present). Previously, Ms. Stagnone served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (May 1, 2017 to October 31, 2017).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Annualized Expense Ratio-A | Beginning Account Value May 1, 2017 | Ending Account Value October 31, 2017 | Expenses Paid During Period-B May 1, 2017 to October 31, 2017 |
|
Class A | 1.14% | |||
Actual | $1,000.00 | $1,047.50 | $5.88 | |
Hypothetical-C | $1,000.00 | $1,019.46 | $5.80 | |
Class M | 1.40% | |||
Actual | $1,000.00 | $1,046.30 | $7.22 | |
Hypothetical-C | $1,000.00 | $1,018.15 | $7.12 | |
Class C | 1.94% | |||
Actual | $1,000.00 | $1,043.40 | $9.99 | |
Hypothetical-C | $1,000.00 | $1,015.43 | $9.86 | |
Class I | .82% | |||
Actual | $1,000.00 | $1,049.50 | $4.24 | |
Hypothetical-C | $1,000.00 | $1,021.07 | $4.18 | |
Class Z | .73% | |||
Actual | $1,000.00 | $1,049.90 | $3.77 | |
Hypothetical-C | $1,000.00 | $1,021.53 | $3.72 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
The Board of Trustees of Fidelity Advisor Value Fund voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities, and dividends derived from net investment income:
Pay Date | Record Date | Dividends | Capital Gains | |
Fidelity Advisor Value Fund | ||||
Class A | 12/11/17 | 12/08/17 | $0.215 | $0.610 |
Class M | 12/11/17 | 12/08/17 | $0.135 | $0.610 |
Class C | 12/11/17 | 12/08/17 | $0.000 | $0.570 |
Class I | 12/11/17 | 12/08/17 | $0.289 | $0.610 |
Class Z | 12/11/17 | 12/08/17 | $0.332 | $0.610 |
Class A, Class M, and Class I designate 100% of the dividend distributed during the fiscal year as qualifying for the dividendsreceived deduction for corporate shareholders.
Class A, Class M, and Class I designate 100% of the dividend distributed during the fiscal year as amounts which may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
The fund will notify shareholders in January 2018 of amounts for use in preparing 2017 income tax returns.
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Advisor Value Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. FMR and the sub-advisers are referred to herein as the Investment Advisers. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established various standing committees (Committees), each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to review matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to all of the Fidelity funds.
At its July 2017 meeting, the Board unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and would be realized as the fund grows, and whether any economies of scale are appropriately shared with fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, which is part of the Fidelity family of funds.
Amendment to Group Fee Rate. The Board also approved an amendment to the management contract for the fund to add an additional breakpoint to the group fee schedule, effective October 1, 2017. The Board noted that the additional breakpoint would result in lower management fee rates as Fidelity's assets under management increase.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage. Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process. Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.In 2014, the Board formed an ad hoc Committee on Transfer Agency Fees to review the variety of transfer agency fee structures throughout the industry and Fidelity's competitive positioning with respect to industry participants. Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to Fidelity's investment research process, and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs; (iv) launching new share classes of existing funds; (v) eliminating purchase minimums and broadening eligibility requirements for certain lower-priced share classes; (vi) reducing management fees and total expenses for certain growth equity funds and index funds; (vii) lowering expense caps for certain existing funds and classes to reduce expenses borne by shareholders; (viii) eliminating short-term redemption fees for certain funds; (ix) introducing a new pricing structure for certain funds of funds that is expected to reduce overall expenses paid by shareholders; (x) rationalizing product lines and gaining increased efficiencies through proposals for fund mergers and share class consolidations; (xi) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; and (xii) implementing enhancements to further strengthen Fidelity's product line to increase investors' probability of success in achieving their investment goals, including retirement income goals. Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history.The Board took into account discussions with representatives of the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for the fund for different time periods, measured against a securities market index ("benchmark index") and a peer group of funds with similar objectives ("peer group"), if any. In its evaluation of fund investment performance, the Board gave particular attention to information indicating changes in performance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for any overperformance or underperformance.In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing fund share classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; issuer-specific information; and fund cash flows and other factors.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for the fund and an appropriate benchmark index and peer group for the most recent one-, three-, and five-year periods, as shown below. Returns are shown compared to the 25th percentile (top of box, 75% beaten) and 75th percentile (bottom of box, 25% beaten) of the peer universe.Fidelity Advisor Value Fund
Fidelity Advisor Value Fund
FAV-ANN-1217
1.808899.113
Item 2.
Code of Ethics
As of the end of the period, October 31, 2017, Fidelity Advisor Series I (the trust) has adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its President and Treasurer and its Chief Financial Officer. A copy of the code of ethics is filed as an exhibit to this Form N-CSR.
Item 3.
Audit Committee Financial Expert
The Board of Trustees of the trust has determined that Joseph Mauriello is an audit committee financial expert, as defined in Item 3 of Form N-CSR. Mr. Mauriello is independent for purposes of Item 3 of Form N-CSR.
Item 4.
Principal Accountant Fees and Services
Fees and Services
The following table presents fees billed by Deloitte & Touche LLP, the member firms of Deloitte Touche Tohmatsu, and their respective affiliates (collectively, Deloitte Entities) in each of the last two fiscal years for services rendered to Fidelity Advisor Floating Rate High Income Fund, Fidelity Advisor High Income Advantage Fund, Fidelity Advisor High Income Fund, and Fidelity Advisor Value Fund (the Funds):
Services Billed by Deloitte Entities
October 31, 2017 FeesA
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
Fidelity Advisor Floating Rate High Income Fund | $150,000 | $200 | $6,400 | $4,000 |
Fidelity Advisor High Income Advantage Fund | $72,000 | $100 | $6,500 | $1,900 |
Fidelity Advisor High Income Fund | $59,000 | $100 | $6,400 | $1,700 |
Fidelity Advisor Value Fund | $48,000 | $100 | $6,700 | $1,300 |
October 31, 2016 FeesA,B
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
Fidelity Advisor Floating Rate High Income Fund | $149,000 | $200 | $6,400 | $3,900 |
Fidelity Advisor High Income Advantage Fund | $70,000 | $100 | $6,500 | $1,800 |
Fidelity Advisor High Income Fund | $59,000 | $100 | $6,400 | $1,600 |
Fidelity Advisor Value Fund | $46,000 | $100 | $6,600 | $1,200 |
A Amounts may reflect rounding.
B Certain amounts have been reclassified to align with current period presentation.
The following table presents fees billed by Deloitte Entities that were required to be approved by the Audit Committee for services that relate directly to the operations and financial reporting of the Funds and that are rendered on behalf of Fidelity Management & Research Company (FMR) and entities controlling, controlled by, or under common control with FMR (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) that provide ongoing services to the Funds (Fund Service Providers):
Services Billed by Deloitte Entities
| October 31, 2017A | October 31, 2016A |
Audit-Related Fees | $- | $40,000 |
Tax Fees | $25,000 | $- |
All Other Fees | $- | $- |
A Amounts may reflect rounding.
Audit-Related Fees represent fees billed for assurance and related services that are reasonably related to the performance of the fund audit or the review of the fund's financial statements and that are not reported under Audit Fees.
Tax Fees represent fees billed for tax compliance, tax advice or tax planning that relate directly to the operations and financial reporting of the fund.
All Other Fees represent fees billed for services provided to the fund or Fund Service Provider, a significant portion of which are assurance related, that relate directly to the operations and financial reporting of the fund, excluding those services that are reported under Audit Fees, Audit-Related Fees or Tax Fees.
Assurance services must be performed by an independent public accountant.
* * *
The aggregate non-audit fees billed by Deloitte Entities for services rendered to the Funds, FMR (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any Fund Service Provider for each of the last two fiscal years of the Funds are as follows:
Billed By | October 31, 2017A | October 31, 2016A |
Deloitte Entities | $565,000 | $105,000 |
A Amounts may reflect rounding.
The trust's Audit Committee has considered non-audit services that were not pre-approved that were provided by Deloitte Entities to Fund Service Providers to be compatible with maintaining the independence of Deloitte Entities in its audit of the Funds, taking into account representations from Deloitte Entities, in accordance with Public Company Accounting Oversight Board rules, regarding its independence from the Funds and their related entities and FMRs review of the appropriateness and permissibility under applicable law of such non-audit services prior to their provision to the Fund Service Providers.
Audit Committee Pre-Approval Policies and Procedures
The trusts Audit Committee must pre-approve all audit and non-audit services provided by a funds independent registered public accounting firm relating to the operations or financial reporting of the fund. Prior to the commencement of any audit or non-audit services to a fund, the Audit Committee reviews the services to determine whether they are appropriate and permissible under applicable law.
The Audit Committee has adopted policies and procedures to, among other purposes, provide a framework for the Committees consideration of non-audit services by the audit firms that audit the Fidelity funds. The policies and procedures require that any non-audit service provided by a fund audit firm to a Fidelity fund and any non-audit service provided by a fund auditor to a Fund Service Provider that relates directly to the operations and financial reporting of a Fidelity fund (Covered Service) are subject to approval by the Audit Committee before such service is provided.
All Covered Services must be approved in advance of provision of the service either: (i) by formal resolution of the Audit Committee, or (ii) by oral or written approval of the service by the Chair of the Audit Committee (or if the Chair is unavailable, such other member of the Audit Committee as may be designated by the Chair to act in the Chairs absence). The approval contemplated by (ii) above is permitted where the Treasurer determines that action on such an engagement is necessary before the next meeting of the Audit Committee.
Non-audit services provided by a fund audit firm to a Fund Service Provider that do not relate directly to the operations and financial reporting of a Fidelity fund are reported to the Audit Committee on a periodic basis.
Non-Audit Services Approved Pursuant to Rule 2-01(c)(7)(i)(C) and (ii) of Regulation S-X (De Minimis Exception)
There were no non-audit services approved or required to be approved by the Audit Committee pursuant to the De Minimis Exception during the Funds last two fiscal years relating to services provided to (i) the Funds or (ii) any Fund Service Provider that relate directly to the operations and financial reporting of the Funds.
Item 5.
Audit Committee of Listed Registrants
Not applicable.
Item 6.
Investments
(a)
Not applicable.
(b)
Not applicable
Item 7.
Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8.
Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9.
Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10.
Submission of Matters to a Vote of Security Holders
There were no material changes to the procedures by which shareholders may recommend nominees to the trusts Board of Trustees.
Item 11.
Controls and Procedures
(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the trusts 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 trusts 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 trusts internal control over financial reporting.
Item 12.
Exhibits
(a) | (1) | Code of Ethics pursuant to Item 2 of Form N-CSR is filed and attached hereto as EX-99.CODE ETH. |
(a) | (2) | Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT. |
(a) | (3) | Not applicable. |
(b) |
| Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Fidelity Advisor Series I
By: | /s/ Stacie M. Smith |
| Stacie M. Smith |
| President and Treasurer |
|
|
Date: | December 27, 2017 |
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/Stacie M. Smith |
| Stacie M. Smith |
| President and Treasurer |
|
|
Date: | December 27, 2017 |
By: | /s/Howard J. Galligan III |
| Howard J. Galligan III |
| Chief Financial Officer |
|
|
Date: | December 27, 2017 |
Exhibit EX-99.CERT
I, Stacie M. Smith, 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:
December 27, 2017
/s/Stacie M. Smith |
Stacie M. Smith |
President and Treasurer |
I, Howard J. Galligan III, 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:
December 27, 2017
/s/Howard J. Galligan III |
Howard J. Galligan III |
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:
December 27, 2017
/s/Stacie M. Smith |
Stacie M. Smith |
President and Treasurer |
Dated:
December 27, 2017
/s/Howard J. Galligan III |
Howard J. Galligan III |
Chief Financial Officer |
A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to the Trust and will be retained by the Trust and furnished to the Securities and Exchange Commission or its staff upon request.
EXHIBIT EX-99.CODE ETH
FIDELITY FUNDS CODE OF ETHICS FOR
PRESIDENT, TREASURER AND PRINCIPAL ACCOUNTING OFFICER
I. Purposes of the Code/Covered Officers
This document constitutes the Code of Ethics (Code) adopted by the Fidelity Funds (Funds) pursuant to the provisions of Rule 30b2-1(a) under the Investment Company Act of 1940), which Rule implements Sections 406 of the Sarbanes-Oxley Act of 2002 with respect to registered investment companies. The Code applies to the Fidelity Funds President and Treasurer, and Chief Financial Officer (Covered Officers). Fidelitys Ethics Office, a part of Corporate Compliance Group within Core Compliance, administers the Code.
The purposes of the Code are to deter wrongdoing and to promote, on the part of the Covered Officers:
·
honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;
·
full, fair, accurate, timely and understandable disclosure in reports and documents that the Fidelity Funds submit to the Securities and Exchange Commission (SEC), and in other public communications by a Fidelity Fund;
·
compliance with applicable laws and governmental rules and regulations;
·
the prompt internal reporting to an appropriate person or persons identified in the Code of violations of the Code; and
·
accountability for adherence to the Code.
Each Covered Officer should adhere to a high standard of business ethics and should be sensitive to situations that may give rise to actual as well as apparent conflicts of interest.
II.
Covered Officers Should Handle Ethically
Actual and Apparent Conflicts of Interest
Overview. A conflict of interest occurs when a Covered Officers private interest interferes with the interests of, or his service to, the Fidelity Funds. For example, a conflict of interest would arise if a Covered Officer, or a member of his family, receives improper personal benefits as a result of his position with the Fidelity Funds.
Certain conflicts of interest arise out of the relationships between Covered Officers and the Fidelity Funds and already are subject to conflict of interest provisions in the Investment Company Act of 1940 (Investment Company Act) and the Investment Advisers Act of 1940 (Investment Advisers Act). For example, Covered Officers may not individually engage in certain transactions (such as the purchase or sale of securities or other property) with a Fidelity Fund because of their status as affiliated persons of the Fund. Separate compliance programs and procedures of the Fidelity Funds, Fidelity Management & Research Company (FMR) and the other Fidelity companies are designed to prevent, or identify and correct, violations of these provisions. This Code does not, and is not intended to, repeat or replace these programs and procedures, and such conflicts fall outside of the parameters of this Code.
Although typically not presenting an opportunity for improper personal benefit, conflicts arise from, or as a result of, the contractual relationship between the Fidelity Funds and FMR (or another Fidelity company) of which the Covered Officers are also officers or employees. As a result, this Code recognizes that the Covered Officers will, in the normal course of their duties (whether formally for the Fidelity Funds, FMR or another Fidelity company), be involved in establishing policies and implementing decisions that have different effects on the Fidelity Funds, FMR and other Fidelity companies. The participation of the Covered Officers in such activities is inherent in the contractual relationship between the Fidelity Funds and FMR (or another Fidelity company), and is consistent with the performance by the Covered Officers of their duties as officers of the Fidelity Funds. Thus, if performed in conformity with the provisions of the Investment Company Act and the Investment Advisers Act, such activities will be deemed to have been handled ethically. In addition, it is recognized by the Funds Board of Trustees (Board) that the Covered Officers also may be officers or employees of one or more other Fidelity Funds covered by this Code.
Other conflicts of interest are covered by the Code, even if such conflicts of interest are not subject to provisions in the Investment Company Act and the Investment Advisers Act. The following list provides examples of conflicts of interest under the Code, but Covered Officers should keep in mind that these examples are not exhaustive. The overarching principle is that the personal interest of a Covered Officer should not be placed improperly before the interest of a Fidelity Fund.
* * *
Each Covered Officer must:
·
not use his or her personal influence or personal relationships improperly to influence investment decisions or financial reporting by any Fidelity Fund whereby the Covered Officer would benefit personally to the detriment of any Fidelity Fund;
·
not cause a Fidelity Fund to take action, or fail to take action, for the individual personal benefit of the Covered Officer rather than the benefit of the Fidelity Fund;
·
not engage in any outside business activity, including serving as a director or trustee, that prevents the Covered Officer from devoting appropriate time and attention to the Covered Officers responsibilities with the Fidelity Funds;
·
not have a consulting or employment relationship with any of the Fidelity Funds service providers that are not affiliated with Fidelity; and
·
not retaliate against any employee or Covered Officer for reports of actual or potential misconduct, which are made in good faith.
With respect to other fact patterns, if a Covered Officer is in doubt, other potential conflict of interest situations should be described immediately to the Fidelity Ethics Office for resolution. Similarly, any questions a Covered Officer has generally regarding the application or interpretation of the Code should be directed to the Fidelity Ethics Office immediately.
III. Disclosure and Compliance
·
Each Covered Officer should familiarize himself with the disclosure requirements generally applicable to the Fidelity Funds.
·
Each Covered Officer should not knowingly misrepresent, or cause others to misrepresent, facts about any Fidelity Fund to others, whether within or outside Fidelity, including to the Board and auditors, and to governmental regulators and self-regulatory organizations;
·
Each Covered Officer should, to the extent appropriate within his area of responsibility, consult with other officers and employees of the Fidelity Funds, FMR and the Fidelity service providers, and with the Boards Compliance Committee, with the goal of promoting full, fair, accurate, timely and understandable disclosure in the reports and documents the Fidelity Funds file with, or submit to, the SEC and in other public communications made by the Fidelity Funds; and
·
It is the responsibility of each Covered Officer to promote compliance with the standards and restrictions imposed by applicable laws, rules and regulations.
IV. Reporting and Accountability
Each Covered Officer must:
·
upon receipt of the Code, and annually thereafter, submit to the Fidelity Ethics Office an acknowledgement stating that he or she has received, read, and understands the Code; and
·
notify the Fidelity Ethics Office promptly if he or she knows of any violation of the Code. Failure to do so is itself a violation of this Code.
The Fidelity Ethics Office shall take all action it considers appropriate to investigate any actual or potential violations reported to it. Upon completion of the investigation, if necessary, the matter will be reviewed with senior management or other appropriate parties, and a determination will be made as to whether any action should be taken as detailed below. The Covered Officer will be informed of any action determined to be appropriate. The Fidelity Ethics Office will inform the Personal Trading Committee of all Code violations and actions taken in response. Without implied limitation, appropriate remedial, disciplinary or preventive action may include a written warning, a letter of censure, suspension, dismissal or, in the event of criminal or other serious violations of law, notification of the SEC or other appropriate law enforcement authorities. Additionally, other legal remedies may be pursued.
The policies and procedures described in the Code do not create any obligations to any person or entity other than the Fidelity Funds. The Code is intended solely for the internal use by the Fidelity Funds and does not constitute a promise, contract or an admission by or on behalf of any Fidelity Fund as to any fact, circumstance, or legal conclusion. The Fidelity Funds, the Fidelity companies and the Fidelity Chief Ethics Officer retain the discretion to decide whether the Code applies to a specific situation, and how it should be interpreted.
V. Oversight
Material violations of this Code will be reported promptly by FMR to the Boards Compliance Committee. In addition, at least once each year, FMR will provide a written report to the Board, which describes any issues arising under the Code since the last report to the Board, including, but not limited to, information about material violations of the Code and action taken in response to the material violations.
VI. Other Policies and Procedures
This Code shall be the sole code of ethics adopted by the Fidelity Funds for purposes of Section 406 of the Sarbanes-Oxley Act and the rules and forms applicable to registered investment companies thereunder. Other Fidelity policies or procedures that cover the behavior or activities of Covered Officers are separate requirements applying to the Covered Officers (and others), and are not part of this Code.
VII. Amendments
Any material amendments or changes to this Code must be approved or ratified by a majority vote of the Board, including a majority of the Trustees who are not interested persons of the Fidelity Funds.
VIII. Records and Confidentiality
Records of any violation of the Code and of the actions taken as a result of such violations will be kept by the Fidelity Ethics Office. All reports and records prepared or maintained pursuant to this Code will be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone other than the Fidelity Ethics Office, the Personal Trading Committee, the Board, appropriate personnel at the relevant Fidelity company or companies and the legal counsel of any or all of the foregoing.
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